Target %(1)Incentive Compensation Awardfrom 120 % of annual base salaryto180 % of annual base salaryStock Awardfrom180 % of annual base salaryto 270 % of annual base salary

To: Jacek OLCZAK                        Lausanne, May 11, 2012

Dear Jacek,

We are pleased to confirm your promotion, effective as of August 1, 2012, to the position of Chief Financial Officer, reporting to Mr Louis C. Camilleri, Chairman and Chief Executive Officer PMI. Your annual base salary is being increased

from     CHF 900'003.-- p.a.        CHF 69'231.-- p.m.

to     CHF 954'005.-- p.a.         CHF 73'385.-- p.m.

Your salary band has been changed and is now B.

Following the change in band and salary, your new Position in Range will be now 8.9%.

You will continue to be eligible to participate in the Incentive Compensation (“IC”) and Equity Award Programs, which are administered at the sole discretion of the Compensation and Leadership Development Committee of the Board of Directors pursuant and subject to the terms of the 2012 Performance Incentive Plan (or any similar plan in the future).

Your annual IC and Stock award targets that assume a PMI company performance rating of 100 and an "Optimal" individual performance are being increased as follows:

All other conditions relating to your employment with Philip Morris International Management SA remain as stated in your employment contract and, if applicable, in any subsequent amendments.

We would like to take this opportunity to wish you continued success and satisfaction.

Copy: L. Camilleri

ref: mc

^{(1) The Incentive Compensation and Equity Award Programs are discretionary and do not obligate the Company to make an award nor entitle employees to receive an award. Eligibility to participate in the Programs does not guarantee receipt of an award and receiving an annual award does not guarantee receipt of an award in the future. Any awards that are made may be higher or lower than the targets mentioned above.}