Exhibit 10.1
INDEMNIFICATION AGREEMENT dated
as of __________________________, 20__
between
Philip Morris International Inc.
(the “Company”),
and
_______________________________
(“Indemnitee”)
TABLE OF CONTENTS
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Page
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INDEMNIFICATION AGREEMENT
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1
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1.
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Service by Indemnitee
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1
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2.
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Indemnification Against Liability and
Advancement of Expenses
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2
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3.
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Indemnification
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2
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4.
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Partial Indemnification Against Liability and
Advancement of Expenses
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2
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5.
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Payment of Expenses as a Witness
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3
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6.
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Payment of Expenses as a Party
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3
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7.
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Determination of Entitlement to
Indemnification; Authorization of Payment
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4
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8.
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Presumptions and Effect of Certain
Proceedings
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5
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9.
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Remedies of Indemnitee in Cases of
Determination Not to Indemnify Against Liability or to Pay
Expenses
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5
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10.
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Other Rights to Indemnification and
Advancement; No Duplication of Payments
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6
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11.
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Expenses to Enforce Agreement
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6
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12.
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Continuation of Indemnity
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6
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13.
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Notification and Defense of Claim
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7
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14.
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Severability
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7
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15.
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Headings; References; Pronouns
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7
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16.
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Definitions and References
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7
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17.
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Other Provisions
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8
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(i)
INDEMNIFICATION AGREEMENT
WHEREAS, the Board of Directors has
determined in accordance with its good faith business judgment that
the ability to attract and retain qualified persons as directors
and executive officers is in the best interests of the Company and
that the Company should act to assure such persons that there shall
be adequate certainty of protection against risks of claims and
actions against them arising out of their service to and activities
on behalf of the Company; and
WHEREAS, the Company has adopted
provisions in its Amended and Restated Articles of Incorporation
regarding indemnification against liabilities and advancement and
reimbursement of expenses for its directors and executive officers
and the Company wishes to make further provision with respect
thereto as permitted by the Amended and Restated Articles of
Incorporation of the Company and Section 13.1-704.B of the
Virginia Stock Corporation Act; and
WHEREAS, in order to induce and
encourage highly experienced and capable persons such as Indemnitee
to serve and to continue to serve as directors and/or executive
officers of the Company and in any other capacity with respect to
the Company, and to otherwise promote the desirable end that such
persons will resist what they consider unjustified lawsuits and
claims made against them in connection with the performance of
their duties to the Company, with the knowledge that certain costs,
judgments, penalties, fines, liabilities and expenses incurred by
them in their defense of such litigation are to be borne by the
Company and they shall receive appropriate protection against such
risks and liabilities, the Board of Directors of the Company has
determined that the following Agreement is in the best interests of
the Company; and
WHEREAS, the Company desires to have
Indemnitee become or continue to serve as a director and/or
executive officer of the Company, and in such other capacity with
respect to the Company as the Company may request, free from undue
concern for unpredictable, inappropriate or unreasonable legal
risks and personal liabilities by reason of Indemnitee’s
performing his or her duties to the Company; and Indemnitee desires
so to serve the Company, provided, and on the express condition,
that he or she is furnished with the indemnity set forth
herein;
Now, therefore, in consideration of
Indemnitee’s future service to the Company, the parties
hereto agree as follows:
1. Service by
Indemnitee .
(a) If
Indemnitee is currently or is about to become a director of the
Company, Indemnitee shall continue to serve in that capacity so
long as Indemnitee is duly elected or
1
appointed and until such time as
Indemnitee’s successor is elected and qualified or Indemnitee
is removed as permitted by law or tenders a resignation in
writing.
(b) If
Indemnitee is currently or is about to become an executive officer
of the Company, Indemnitee shall continue to serve in that capacity
at the pleasure of the Board of Directors.
2.
Indemnification Against Liability and Advancement of
Expenses . The Company shall indemnify Indemnitee against all
Liability and, subject to Section 6 below, shall pay to
Indemnitee in advance of the final disposition of any Proceeding
all Expenses incurred by Indemnitee, to the fullest extent
permitted by the Virginia Stock Corporation Act in effect on the
date of this Agreement or as such law may from time to time be
amended (but, in the case of any such amendment, only to the extent
that such amendment permits the Company to provide broader rights
than said law permitted the Company to provide prior to such
amendment). No indemnification against Liability or advancement or
reimbursement of Expenses shall be paid hereunder to
Indemnitee:
(a) to the
extent expressly prohibited by applicable law or the Amended and
Restated Articles of Incorporation of the Company;
(b) for which
payment has previously been made to Indemnitee under a valid and
collectible insurance policy or under a valid and enforceable
indemnity clause, provision of the articles of incorporation or
by-laws, or agreement of the Company or any other company or
organization, except in respect of any Expenses or Liability
exceeding the payment under such insurance, indemnity clause,
provision of the articles of incorporation, by-laws or
agreement;
(c) in
connection with an action, suit or proceeding, or part thereof
(including claims and counterclaims) initiated by Indemnitee,
except a judicial proceeding or arbitration pursuant to
Section 9 below to enforce rights under this Agreement, unless
such action, suit or proceeding, or part thereof, was authorized by
the Board of Directors of the Company; or
(d) with
respect to any Proceeding brought by or on behalf of the Company
against Indemnitee that is authorized by the Board of Directors of
the Company, except as provided in Section 4 below.
3.
Indemnification . Except as limited by Section 2 above,
the Company shall indemnify Indemnitee against all Liability
incurred in any Proceeding, including a Proceeding brought by or in
the right of the Company, by reason of the fact that Indemnitee is
or was a director and/or executive officer of the Company, or while
a director and/or executive officer of the Company is or was
serving at the request of the Company as a director, officer,
manager, partner, trustee, employee, agent or fiduciary of any
other entity, including, but not limited to, another corporation,
limited lia