Document:

Credit Agreement relating to a US$3,000,000,000 5-Year Revolving Credit Facility

 Exhibit 10.5 
 CREDIT AGREEMENT 
 relating to a 
 US$3,000,000,000 5-YEAR REVOLVING CREDIT FACILITY 
 (including a US$900,000,000
swingline option) 
 and a 
 US$1,000,000,000 3-YEAR REVOLVING CREDIT FACILITY 
 (including a US$300,000,000 swingline option) 
 and a 
 EUR 1,500,000,000 364-DAY TERM LOAN
FACILITY 
 Dated as of 4 December 2007 
 among 
 PHILIP MORRIS INTERNATIONAL INC. 
 and 
 THE INITIAL LENDERS NAMED HEREIN 
 and 
 J.P. MORGAN EUROPE LIMITED

 as Facility Agent and Swingline Agent 
 and 
 J.P. MORGAN PLC 
 CITIGROUP GLOBAL MARKETS LIMITED 
 CREDIT SUISSE, CAYMAN ISLANDS BRANCH 
 DEUTSCHE BANK SECURITIES INC. 
 GOLDMAN SACHS CREDIT PARTNERS L.P. 
 LEHMAN BROTHERS INC. 
 as Mandated Lead Arrangers and Bookrunners 
 HUNTON & WILLIAMS LLP

 New York 

 Table of Contents 
  

					
	 	  	 	  	 
	 	  	 	  	Page
	1.	  	DEFINITIONS AND ACCOUNTING TERMS	  	1
			
	1.1.	  	Certain Defined Terms	  	1
			
	1.2.	  	Computation of Time Periods	  	14
			
	1.3.	  	Accounting Terms	  	14
			
	2.	  	AMOUNTS AND TERMS OF THE ADVANCES	  	14
			
	2.1.	  	The Revolving Credit Advances	  	14
			
	2.2.	  	Type of Revolving Credit Advances	  	15
			
	2.3.	  	The Term Advances	  	15
			
	2.4.	  	Making the Pro Rata Advances	  	16
			
	2.5.	  	Repayment of Pro Rata Advances	  	17
			
	2.6.	  	Interest on Pro Rata Advances	  	17
			
	2.7.	  	Absence of Interest Period for Pro Rata Advances	  	18
			
	2.8.	  	Interest Rate Determination for Pro Rata Advances	  	18
			
	2.9.	  	The Swingline Advances	  	19
			
	2.10.	  	Making the Swingline Advances	  	21
			
	2.11.	  	Repayment of Swingline Advances	  	23
			
	2.12.	  	Interest on Swingline Advances	  	23
			
	2.13.	  	Fees	  	24
			
	2.14.	  	Termination or Reduction of the Commitments; Term-Out Option	  	25
			
	2.15.	  	Prepayments of Advances	  	25
			
	2.16.	  	Increased Costs	  	26
			
	2.17.	  	Illegality	  	27
			
	2.18.	  	Payments and Computations	  	28
			
	2.19.	  	Taxes	  	29
			
	2.20.	  	Sharing of Payments, Etc.	  	32
			
	2.21.	  	Evidence of Debt	  	32
			
	2.22.	  	Use of Proceeds	  	33

  

 i 

 Table of Contents 
 (continued) 
  

					
	3.	  	CONDITIONS TO EFFECTIVENESS AND LENDING	  	33
			
	3.1.	  	Conditions Precedent to Effectiveness	  	33
			
	3.2.	  	Initial Advance to Each Designated Subsidiary	  	35
			
	3.3.	  	Conditions Precedent to Each Borrowing	  	36
			
	4.	  	REPRESENTATIONS AND WARRANTIES	  	36
			
	4.1.	  	Representations and Warranties of PMI	  	36
			
	5.	  	COVENANTS OF PMI	  	38
			
	5.1.	  	Affirmative Covenants	  	38
			
	5.2.	  	Negative Covenants	  	39
			
	6.	  	EVENTS OF DEFAULT	  	41
			
	6.1.	  	Events of Default	  	41
			
	6.2.	  	Lenders’ Rights upon Event of Default	  	43
			
	7.	  	THE AGENTS	  	43
			
	7.1.	  	Authorization and Action	  	43
			
	7.2.	  	Agents’ Reliance, Etc.	  	43
			
	7.3.	  	JPMEL and Affiliates	  	44
			
	7.4.	  	Lender Credit Decision	  	44
			
	7.5.	  	Indemnification	  	45
			
	7.6.	  	Successor Agents	  	46
			
	7.7.	  	Mandated Lead Arrangers and Bookrunners	  	46
			
	8.	  	GUARANTY	  	46
			
	8.1.	  	Guaranty	  	46
			
	8.2.	  	Guaranty Absolute	  	46
			
	8.3.	  	Waivers	  	47
			
	8.4.	  	Continuing Guaranty	  	47

  

 ii 

 Table of Contents 
 (continued) 
  

					
	9.	  	MISCELLANEOUS	  	48
			
	9.1.	  	Amendments, Etc.	  	48
			
	9.2.	  	Notices, Etc.	  	48
			
	9.3.	  	No Waiver; Remedies	  	49
			
	9.4.	  	Costs and Expenses	  	50
			
	9.5.	  	Right of Set-Off	  	51
			
	9.6.	  	Binding Effect	  	51
			
	9.7.	  	Assignments and Participations	  	51
			
	9.8.	  	Designated Subsidiaries	  	54
			
	9.9.	  	Governing Law	  	55
			
	9.10.	  	Execution in Counterparts	  	55
			
	9.11.	  	Jurisdiction, Etc.	  	55
			
	9.12.	  	Confidentiality	  	56
			
	9.13.	  	Integration	  	56
			
	9.14.	  	USA Patriot Act Notice, Etc.	  	57
			
	9.15.	  	Judgment	  	57

  

					
	SCHEDULE
			
	Schedule 1	 	-	  	List of Applicable Lending Offices
	Schedule 2	 	-	  	Certain Subsidiary Information
	Schedule 3	 	-	  	Calculation of Mandatory Cost
	Schedule 4A	 	-	  	Tranche A Revolving Credit Commitments
	Schedule 4B	 	-	  	Tranche B Revolving Credit Commitments
	Schedule 5A	 	-	  	Tranche A Swingline Commitments
	Schedule 5B	 	-	  	Tranche B Swingline Commitments
	Schedule 6	 	-	  	Term Commitments
	
	EXHIBITS
			
	Exhibit A-1	 	-	  	Form of Tranche A Revolving Credit Note
	Exhibit A-2	 	-	  	Form of Tranche B Revolving Credit Note
	Exhibit A-3	 	-	  	Form of Term Note
	Exhibit B-1	 	-	  	Form of Notice of Pro Rata Borrowing
	Exhibit B-2	 	-	  	Form of Notice of Swingline Borrowing

  

 iii 

 Table of Contents 
 (continued) 
  

					
	Exhibit C	 	-	  	Form of Assignment and Acceptance
	Exhibit D	 	-	  	Form of Designation Agreement
	Exhibit E-1	 	-	  	Form of Opinion of Counsel for PMI
	Exhibit E-2	 	-	  	Form of Opinion of Counsel for PMI
	Exhibit F	 	-	  	Form of Opinion of Counsel for Designated Subsidiary
	Exhibit G	 	-	  	Form of Opinion of Counsel for Facility Agent
	Exhibit H	 	-	  	Form of Confidentiality Agreement

  

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 THIS AGREEMENT was made on 4 December 2007 
 AMONG 
  

	 	(1)	PHILIP MORRIS INTERNATIONAL INC., a Virginia corporation (“PMI”); 

  

	 	(2)	THE FINANCIAL INSTITUTIONS AND OTHER INSTITUTIONAL LENDERS (the “Initial Lenders”) listed on the signature pages hereof; 

  

	 	(3)	J.P. MORGAN EUROPE LIMITED (“JPMEL”), as facility agent and swingline agent (in each such capacity, the “Facility Agent” or the
“Swingline Agent,” respectively); and 

  

	 	(4)	CITIGROUP GLOBAL MARKETS LIMITED, CREDIT SUISSE, CAYMAN ISLANDS BRANCH, DEUTSCHE BANK SECURITIES INC., GOLDMAN SACHS CREDIT PARTNERS L.P., J.P. MORGAN PLC and
LEHMAN BROTHERS INC., as mandated lead arrangers and bookrunners (each, in such capacity, a “Mandated Lead Arranger and Bookrunner”) for the Lenders (as hereinafter defined). 

 IT IS AGREED as follows: 
  

	1.	DEFINITIONS AND ACCOUNTING TERMS 

  

	1.1.	Certain Defined Terms. As used in this Agreement, the following terms shall have the following meanings (such meanings to be equally applicable to both the singular and
plural forms of the terms defined): 

 “Advance” means a Revolving Credit Advance, a Swingline
Advance or a Term Advance. 
 “Agents” means the Facility Agent and the Swingline Agent. 
 “Applicable Interest Rate Margin” means, for any Interest Period, a percentage per annum equal to the percentage set
forth below: 
  

				
	 Type of Advance
	  	Applicable Interest Rate Margin	 
	 Tranche A Revolving Credit
	  	0.3500	%
		
	 Tranche B Revolving Credit
	  	0.3250	%
		
	 Tranche A Swingline
	  	0.3500	%
		
	 Tranche B Swingline
	  	0.3250	%
		
	 Term
	  	0.3000	%

 “Applicable Lending Office” means, with respect to each Lender,
such Lender’s lending office set forth on Schedule 1 hereto or in the Assignment and Acceptance pursuant to which it became a Lender, or such other office of such Lender as such Lender may from time to time specify to PMI and the Facility
Agent. 

 “Appropriate Lender” means a Revolving Credit Lender or a Term Lender as
the context requires. 
 “Assignment and Acceptance” means an assignment and acceptance entered into by a
Lender and an Eligible Assignee, and accepted by the Facility Agent, in substantially the form of Exhibit C hereto. 
 “Board” means the Board of Governors of the Federal Reserve System of the United States (or any successor). 
 “Borrowers” means, collectively, PMI and each Designated Subsidiary that shall become a party to this Agreement pursuant to Section 9.8. 
 “Borrowing” means a Revolving Credit Borrowing, a Swingline Borrowing or a Term Borrowing. 
 “Business Day” means a day on which banks are open for business in London and the Trans-European Automated Real-time
Gross settlement Express Transfer System (TARGET) is operating and, if the applicable Business Day relates to any LIBOR Advances or Dollar Swingline Advances, on which banks are not required or authorized by law to close in New York City.

 “Capital Markets Financing Transaction” means the sale for cash or cash equivalents, in a public offering
registered under the U.S. Securities Act of 1933, as amended, or an offering exempt from registration pursuant to Section 4(2), Rule 144A or Regulation S thereunder, of capital stock issued by PMI or notes, debentures or other debt securities
issued by or guaranteed by PMI having a maturity in excess of one year, offered in the domestic or foreign capital markets. 
 “Commitments” means the Revolving Credit Commitments, the Swingline Commitments and the Term Commitments. 
 “Consolidated EBITDA” means, for any accounting period, the consolidated net earnings (or loss) of PMI and its Subsidiaries plus, without duplication and to the extent included as a separate item on PMI’s consolidated
statements of earnings or consolidated statements of cash flows in the case of clauses (a) through (e) for such period, the sum of (a) provision for income taxes, (b) interest and other debt expense, net, (c) depreciation
expense, (d) amortization of intangibles, (e) any extraordinary, unusual or non-recurring expenses or losses or any similar expense or loss subtracted from “Gross profit” in the calculation of “Operating income” and
(f) the portion of loss included on PMI’s consolidated statements of earnings of any Person (other than a Subsidiary of PMI) in which PMI or any of its Subsidiaries has an ownership interest and any cash that is actually received by PMI or
such Subsidiary from such Person in the form of dividends or similar distributions, and minus, without duplication, the sum of (x) to the extent 

  

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included as a separate item on PMI’s consolidated statements of earnings for such period, any extraordinary, unusual or non-recurring income or gains or
any similar income or gain added to “Gross profit” in the calculation of “Operating income,” and (y) the portion of income included on PMI’s consolidated statements of earnings of any Person (other than a Subsidiary of
PMI) in which PMI or any of its Subsidiaries has an ownership interest, except to the extent that any cash is actually received by PMI or such Subsidiary from such Person in the form of dividends or similar distributions, all as determined on a
consolidated basis in accordance with accounting principles generally accepted in the United States for such period, except that if there has been a material change in an accounting principle as compared to that applied in the preparation of the
financial statements of PMI and its Subsidiaries as at and for the year ended 31 December 2006, then such new accounting principle shall not be used in the determination of Consolidated EBITDA. A material change in an accounting principle is
one that, in the year of its adoption, changes Consolidated EBITDA for any quarter in such year by more than 10%. 
 “Consolidated Interest Expense” means, for any accounting period, total interest expense of PMI and its Subsidiaries with respect to all outstanding Debt of PMI and its Subsidiaries during such period, all as determined on
a consolidated basis for such period and in accordance with accounting principles generally accepted in the United States for such period, except that if there has been a material change in an accounting principle as compared to that applied in the
preparation of the financial statements of PMI and its Subsidiaries as at and for the year ended 31 December 2006, then such new accounting principle shall not be used in the determination of Consolidated Interest Expense. A material change in
an accounting principle is one that, in the year of its adoption, changes Consolidated Interest Expense for any quarter in such year by more than 10%. 
 “Consolidated Tangible Assets” means the total assets appearing on a consolidated balance sheet of PMI and its Subsidiaries, less goodwill and other intangible assets and the minority interests of
other Persons in such Subsidiaries, all as determined in accordance with accounting principles generally accepted in the United States, except that if there has been a material change in an accounting principle as compared to that applied in the
preparation of the financial statements of PMI and its Subsidiaries as at and for the year ended 31 December 2006, then such new accounting principle shall not be used in the determination of Consolidated Tangible Assets. A material change in
an accounting principle is one that, in the year of its adoption, changes Consolidated Tangible Assets at any quarter in such year by more than 10%. 
 “Debt” means, without duplication, (a) indebtedness for borrowed money or for the deferred purchase price of property or services, whether or not evidenced by bonds, debentures, notes or similar
instruments, (b) obligations as lessee under leases that, in accordance with accounting principles generally accepted in the United States, are recorded as capital leases, (c) obligations as an account party or applicant under letters of
credit (other than trade letters of credit incurred in the ordinary course of business) to the extent such letters of credit are drawn and not reimbursed within five Business Days of such drawing, (d) the aggregate principal (or equivalent)
amount of financing raised 

  

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through outstanding securitization financings of accounts receivable, and (e) obligations under direct or indirect guaranties in respect of, and
obligations (contingent or otherwise) to purchase or otherwise acquire, or otherwise to assure a creditor against loss (including by way of (i) granting a security interest or other Lien on property or (ii) having a reimbursement
obligation under or in respect of a letter of credit or similar arrangement (to the extent such letter of credit is not collateralized by assets (other than Operating Assets) having a fair value equal to the amount of such reimbursement obligation),
in either case in respect of, indebtedness or obligations of any other Person of the kinds referred to in clause (a), (b), (c) or (d) above). For the avoidance of doubt, the following shall not constitute “Debt” for purposes of
this Agreement: (A) any obligation that is fully non-recourse to PMI or any of its Subsidiaries, (B) intercompany debt of PMI or any of its Subsidiaries, (C) any appeal bond or other arrangement to secure a stay of execution on a
judgment or order, provided that any such appeal bond or other arrangement issued by a third party in connection with such arrangement shall constitute Debt to the extent PMI or any of its Subsidiaries has a reimbursement obligation to such third
party that is not collateralized by assets (other than Operating Assets) having a fair value equal to the amount of such reimbursement obligation, (D) unpaid judgments, or (E) defeased indebtedness. 
 “Default” means any event specified in Section 6.1 that would constitute an Event of Default but for the requirement
that notice be given or time elapse or both. 
 “Designated Subsidiary” means any wholly-owned Subsidiary of
PMI designated for borrowing privileges under this Agreement pursuant to Section 9.8. 
 “Designation
Agreement” means, with respect to any Designated Subsidiary, an agreement in the form of Exhibit D hereto signed by such Designated Subsidiary and PMI. 
 “Dollar Swingline Advance” means a Swingline Advance denominated in Dollars that bears interest as provided in
Section 2.12(b). 
 “Dollars” and the “$” sign each means lawful currency of the United
States of America. 
 “Effective Date” has the meaning specified in Section 3.1. 
 “Eligible Assignee” means (i) a Qualifying Bank organized under the laws of the United States, or any State thereof,
and having total assets in excess of $5,000,000,000; (ii) a Qualifying Bank organized under the laws of any other country which is a member of the Organization for Economic Cooperation and Development (or any successor)
(“OECD”), or a political subdivision of any such country, and having total assets in excess of $5,000,000,000, provided that such Qualifying Bank is acting through a branch or agency located in the country in which it is organized
or another country which is also a member of the OECD or the Cayman Islands; (iii) the central bank of any country which is a member of the OECD; (iv) any Lender; and (v) any other bank or other financial institution approved in
writing by PMI, which approval shall be notified to the Facility Agent. 
  

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 “Equivalent” (i) in Dollars of Euro on any date, means the quoted
spot rate at which the Facility Agent’s principal office in London offers to exchange Dollars for Euro in London as of 11:00 A.M. (London time) on such date and (ii) in Euro of Dollars on any date, means the quoted spot rate at which the
Facility Agent’s principal office in London offers to exchange Euro for Dollars in London as of 11:00 A.M. (London time) on such date. 
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the regulations promulgated and rulings issued thereunder. 
 “ERISA Affiliate” means any Person that for purposes of Title IV of ERISA is a member of any Borrower’s controlled
group, or under common control with any Borrower, within the meaning of Section 414 of the Internal Revenue Code. 
 “ERISA Event” means (a) (i) the occurrence with respect to a Plan of a reportable event, within the meaning of Section 4043 of ERISA, unless the 30-day notice requirement with respect thereto has been waived
by the Pension Benefit Guaranty Corporation (or any successor) (“PBGC”), or (ii) the requirements of subsection (1) of Section 4043(b) of ERISA (without regard to subsection (2) of such section) are met with
respect to a contributing sponsor, as defined in Section 4001(a)(13) of ERISA, of a Plan, and an event described in paragraph (9), (10), (11), (12) or (13) of Section 4043(c) of ERISA is reasonably expected to occur with respect
to such Plan within the following 30 days; (b) the application for a minimum funding waiver with respect to a Plan; (c) the provision by the administrator of any Plan of a notice of intent to terminate such Plan, pursuant to
Section 4041(a)(2) of ERISA (including any such notice with respect to a plan amendment referred to in Section 4041(e) of ERISA); (d) the cessation of operations at a facility of any Borrower or any of its ERISA Affiliates in the
circumstances described in Section 4062(e) of ERISA; (e) the withdrawal by any Borrower or any of its ERISA Affiliates from a Multiple Employer Plan during a plan year for which it was a substantial employer, as defined in
Section 4001(a)(2) of ERISA; (f) the conditions set forth in Section 302(f)(1)(A) and (B) of ERISA to the creation of a lien upon property or rights to property of any Borrower or any of its ERISA Affiliates for failure to make a
required payment to a Plan are satisfied; (g) the adoption of an amendment to a Plan requiring the provision of security to such Plan, pursuant to Section 307 of ERISA; or (h) the termination of a Plan by the PBGC pursuant to
Section 4042 of ERISA, or the occurrence of any event or condition described in Section 4042 of ERISA that constitutes grounds for the termination of, or the appointment of a trustee to administer, a Plan. 
 “EURIBOR” means an interest rate per annum equal to either: 
 (a) the offered rate per annum at which deposits in Euro appear on Reuters Page EURIBOR01 (or any successor page) as of 11:00 A.M.
(Brussels time) two Business Days before the first day of such Interest Period for a period equal to such Interest Period, as determined by the European Banking Federation, or 
  

 5 

 (b) if EURIBOR does not appear on Reuters Page EURIBOR01 (or any successor page), then
EURIBOR will be determined by taking the arithmetic mean (rounded upward to the nearest whole multiple of 1/16 of 1% per annum, if such arithmetic mean is not such a multiple) of the rates per annum at which deposits in Euro are offered by the
principal office of each of the Reference Banks to prime banks in the European interbank market at 11:00 A.M. (Brussels time) two Business Days before the first day of such Interest Period for an amount substantially equal to the amount that would
be the Reference Banks’ respective ratable shares of such Borrowing outstanding during such Interest Period and for a period equal to such Interest Period, as determined by the Facility Agent, subject, however, to the provisions
of Section 2.8. 
 “EURIBOR Advance” means a Pro Rata Advance denominated in Euro that bears interest as
provided in Section 2.6(a). 
 “Euro” and the “€” sign each mean the single
currency of the Participating Member States. 
 “Euro Swingline Advance” means a Swingline Advance
denominated in Euro that bears interest as provided in Section 2.12(a). 
 “Event of Default” has the
meaning specified in Section 6.1. 
 “Existing Term Facility” means the Term Facility pursuant to the
Credit Agreement, dated as of 12 May 2005, among PMI, the Lenders party thereto and Citibank International plc, as Facility Agent and Swingline Agent, and Citigroup Global Markets Limited, Credit Suisse, Cayman Islands Branch, Deutsche Bank
Securities Inc. and J.P. Morgan plc, as Mandated Lead Arrangers and Bookrunners for such Lenders. 
 “Facility” means the Tranche A Revolving Credit Facility, the Tranche B Revolving Credit Facility, the Tranche A Swingline Facility, the Tranche B Swingline Facility or the Term Facility. 
 “Facility Agent’s Account” means (a) for transactions in Euro, the account of JPMEL (Swift-CHASGB22),
maintained by J.P. Morgan AG (Swift-CHASDEFX), at its office in Frankfurt, Germany, Account No. DE93501108006001600037, (b) for transactions in Dollars, the account of JPMEL, maintained by J.P. Morgan Chase Bank (Swift-CHASUS33) at its office
in New York, New York, Account No. 0130302065 or (c) such other account of JPMEL, as is designated in writing from time to time by JPMEL, to PMI and the Lenders for such purpose. 
 “Federal Bankruptcy Code” means the United States Bankruptcy Reform Act of 1978, as amended from time to time.

  

 6 

 “Federal Funds Effective Rate” means, for any period, a fluctuating
interest rate per annum equal, for each day during such period, to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published for such day (or,
if such day is not a Business Day, for the next preceding Business Day) on Telerate Page 120 (or any successor page), or, if such rate is not so published for any day that is a Business Day, the average of the quotations for such day on such
transactions received by JPMEL from three Federal funds brokers of recognized standing selected by it. 
 “Home
Jurisdiction Withholding Taxes” means (a) in the case of PMI, withholding for United States income taxes, United States back-up withholding taxes and United States withholding taxes and (b) in the case of a Designated Subsidiary,
withholding taxes imposed by the jurisdiction under the laws of which such Designated Subsidiary is organized or any political subdivision thereof. 
 “Interest Period” means (a) for each Pro Rata Advance comprising part of the same Pro Rata Borrowing, the period commencing on the date of such Pro Rata Advance and ending on the last day of the
period selected by the Borrower requesting such Borrowing pursuant to the provisions below and (b) for each Swingline Advance comprising part of the same Swingline Borrowing, one period commencing on the date of such Swingline Advance and
ending on a Business Day with a duration not to exceed five Business Days. The duration of such Interest Period for a Pro Rata Advance shall be one, two, three or six months, or, if available to all Lenders, nine or twelve months, as such Borrower
may select upon notice received by the Facility Agent not later than 11:00 A.M. (London time) on the third Business Day prior to the first day of such Interest Period; provided, however, that: 
 (a) such Borrower may not select any Interest Period that ends after the Termination Date; 
 (b) with respect to Pro Rata Borrowings only, whenever the last day of any Interest Period would otherwise occur on a day other than a
Business Day, the last day of such Interest Period shall be extended to occur on the next succeeding Business Day, provided that if such extension would cause the last day of such Interest Period to occur in the next following calendar month, the
last day of such Interest Period shall occur on the immediately preceding Business Day; and 
 (c) with respect to Pro Rata
Borrowings only, whenever the first day of any Interest Period occurs on a day of an initial calendar month for which there is no numerically corresponding day in the calendar month that succeeds such initial calendar month by the number of months
equal to the number of months in such Interest Period, such Interest Period shall end on the last Business Day of such succeeding calendar month. 
  

 7 

 “Internal Revenue Code” means the United States Internal Revenue Code of
1986, as amended from time to time, and the regulations promulgated and the rulings issued thereunder. 
 “Lenders” means the Initial Lenders and their respective successors, which are Qualifying Banks or which have been approved in writing by PMI, and permitted assignees (and includes the Swingline Lenders unless the context
otherwise requires). 
 “LIBOR” means an interest rate per annum equal to either: 
 (a) the offered rate per annum at which deposits in Dollars appear on Reuters Page LIBOR01 (or any successor page) as of 11:00 A.M.
(London time) two Business Days before the first day of such Interest Period for a period equal to such Interest Period, or 
 (b) if LIBOR does not appear on Reuters Page LIBOR01 (or any successor page), then LIBOR will be determined by taking the arithmetic mean (rounded upward to the nearest whole multiple of 1/16 of 1% per annum, if such arithmetic mean is
not such a multiple) of the rates per annum at which deposits in Dollars are offered by the principal office of each of the Reference Banks to prime banks in the London interbank market at 11:00 A.M. (London time) two Business Days before the first
day of such Interest Period for an amount substantially equal to the amount that would be the Reference Banks’ respective ratable shares of such Borrowing outstanding during such Interest Period and for a period equal to such Interest Period,
as determined by the Facility Agent, subject, however, to the provisions of Section 2.8. 
 “LIBOR
Advance” means a Revolving Credit Advance denominated in Dollars that bears interest as provided in Section 2.6(b). 
 “Lien” has the meaning specified in Section 5.2(a). 
 “Major Subsidiary”
means any Subsidiary (a) more than 50% of the voting securities of which is owned directly or indirectly by PMI, (b) which is organized and existing under, or has its principal place of business in, the United States or any political
subdivision thereof, any country which is a member of the European Union on the date hereof or any political subdivision thereof, or Switzerland or Japan or any of their respective political subdivisions, and (c) which has at any time total
assets (after intercompany eliminations) exceeding $1,000,000,000. 
 “Mandatory Cost” means the percentage
rate per annum calculated by the Facility Agent in accordance with Schedule 3. 
 “Margin Stock” means
margin stock, as such term is defined in Regulation U. 
 “Multiemployer Plan” means a multiemployer plan, as
defined in Section 4001(a)(3) of ERISA, to which any Borrower or any ERISA Affiliate is making or accruing an obligation to make contributions, or has within any of the preceding five plan years made or accrued an obligation to make
contributions, such plan being maintained pursuant to one or more collective bargaining agreements. 
  

 8 

 “Multiple Employer Plan” means a single employer plan, as defined in
Section 4001(a)(15) of ERISA, that (a) is maintained for employees of any Borrower or any ERISA Affiliate and at least one Person other than such Borrower and the ERISA Affiliates or (b) was so maintained and in respect of which such
Borrower or any ERISA Affiliate could have liability under Section 4064 or 4069 of ERISA in the event such plan has been or were to be terminated. 
 “Note” means a Revolving Credit Note or a Term Note. 
 “Notice of
Pro Rata Borrowing” has the meaning specified in Section 2.4(a). 
 “Notice of Swingline
Borrowing” has the meaning specified in Section 2.10(a). 
 “Obligations” has the meaning
specified in Section 8.1. 
 “Operating Assets” means, for any accounting period, any assets included in
the consolidated balance sheet of PMI and its Subsidiaries as “Inventories,” or “Property, plant and equipment” or “Receivables” for such period. 
 “Other Taxes” has the meaning specified in Section 2.19(c). 
 “Participating Member State” means any member state of the European Communities that adopts or has adopted the Euro as
its lawful currency in accordance with legislation of the European Community relating to Economic and Monetary Union. 
 “Person” means an individual, partnership, corporation (including a business trust), joint stock company, trust, unincorporated association, joint venture, limited liability company or other entity, or a government or any
political subdivision or agency thereof. 
 “Plan” means a Single Employer Plan or a Multiple Employer Plan.

 “Pro Rata Advance” means a Revolving Credit Advance or a Term Advance. 
 “Pro Rata Borrowing” means a Revolving Credit Borrowing or a Term Borrowing. 
 “Qualifying Bank” means any legal entity which is recognized as a bank by the banking laws in force in its country of
organization and which has as its principal purpose the active conduct of banking business and conducts such banking business through its own personnel (which have decision making authority) and on its own premises. 
 “Reference Banks” means Citibank, N.A., Credit Suisse, Deutsche Bank AG and JPMorgan Chase Bank, N.A. 
  

 9 

 “Register” has the meaning specified in Section 9.7(d). 

“Regulation A” means Regulation A of the Board, as in effect from time to time. 
 “Regulation U” means Regulation U of the Board, as in effect from time to time. 
 “Required Lenders” means at any time Lenders holding at least 50.1% of the aggregate Term Commitments and Revolving
Credit Commitments at such time. 
 “Revolving Credit Advance” means a Tranche A Revolving Credit Advance or
a Tranche B Revolving Credit Advance. 
 “Revolving Credit Borrowing” means a Tranche A Revolving Credit
Borrowing or a Tranche B Revolving Credit Borrowing. 
 “Revolving Credit Commitment” means a Tranche A
Revolving Credit Commitment or a Tranche B Revolving Credit Commitment. 
 “Revolving Credit Facility” means
the Tranche A Revolving Credit Facility or the Tranche B Revolving Credit Facility. 
 “Revolving Credit
Lender” means a Tranche A Revolving Credit Lender or Tranche B Revolving Credit Lender. 
 “Revolving Credit
Note” means a Tranche A Revolving Credit Note or a Tranche B Revolving Credit Note. 
 “Single Employer
Plan” means a single employer plan, as defined in Section 4001(a)(15) of ERISA, that (a) is maintained for employees of any Borrower or any ERISA Affiliate and no Person other than such Borrower and the ERISA Affiliates or
(b) was so maintained and in respect of which such Borrower or any ERISA Affiliate could have liability under Section 4069 of ERISA in the event such plan has been or were to be terminated. 
 “Spin-Off” means a spin-off or other not for value disposition of PMI such that Altria Group, Inc. no longer owns more
than a de minimis equity interest in PMI. 
 “Subsidiary” of any Person means any corporation of which
(or in which) more than 50% of the outstanding capital stock having voting power to elect a majority of the Board of Directors of such corporation (irrespective of whether at the time capital stock of any other class or classes of such corporation
shall or might have voting power upon the occurrence of any contingency) is at the time directly or indirectly owned or controlled by such Person, by such Person and one or more of its other Subsidiaries or by one or more of such Person’s other
Subsidiaries. 
 “Swingline Advance” means a Tranche A Swingline Advance or Tranche B Swingline Advance.

  

 10 

 “Swingline Borrowing” means a Tranche A Swingline Borrowing or a Tranche
B Swingline Borrowing. 
 “Swingline Commitment” means a Tranche A Swingline Commitment or a Tranche B
Swingline Commitment. 
 “Swingline Facility” means the Tranche A Swingline Facility or the Tranche B
Swingline Facility. 
 “Swingline Lender” means a Tranche A Swingline Lender or a Tranche B Swingline Lender.

 “Taxes” has the meaning specified in Section 2.19(a). 
 “Term Advance” means a EURIBOR Advance by a Term Lender to any Borrower as part of a Term Borrowing. 
 “Term Borrowing” means a borrowing consisting of simultaneous Term Advances made by each of the Term Lenders pursuant to
Section 2.3. 
 “Term Commitment” means as to any Lender (i) the Euro amount set forth opposite
such Lender’s name on Schedule 6 hereof or (ii) if such Lender has entered into an Assignment and Acceptance, the Euro amount set forth for such Lender in the Register maintained by the Facility Agent pursuant to Section 9.7(d), in
each case as such amount may be reduced pursuant to Sections 2.5 and 2.15. 
 “Term Facility” means, at any
time, the aggregate amount of the Term Lenders’ Term Commitments at such time. 
 “Term Lender” means
any Lender that has a Term Commitment. 
 “Term Note” means a promissory note of any Borrower payable to the
order of any Term Lender, in substantially the form of Exhibit A-3 hereto, evidencing the indebtedness of such Borrower to such Lender resulting from the Term Advances made by such Lender to such Borrower. 
 “Term Notice” has the meaning specified in Section 2.14(b). 
 “Termination Date” means the earlier of (a) (i) in relation to the Tranche A Revolving Credit Commitments,
4 December 2012, (ii) in relation to the Tranche B Revolving Credit Commitments, 4 December 2010 or (iii) in relation to the Term Commitments, 2 December 2008 (or such later date pursuant to Section 2.14(b)), and
(b) in each case, the date of termination in whole of such Commitments pursuant to Section 2.14(a) or 6.2. 
 “Tranche A Revolving Credit Advance” means an advance by a Tranche A Revolving Credit Lender to any Borrower as part of a Tranche A Revolving Credit Borrowing and refers to a EURIBOR Advance or a LIBOR Advance (each of
which shall be a “Type” of Tranche A Revolving Credit Advance). 
  

 11 

 “Tranche A Revolving Credit Borrowing” means a borrowing consisting of
simultaneous Tranche A Revolving Credit Advances of the same Type made by each of the Tranche A Revolving Credit Lenders pursuant to Section 2.1(a). 
 “Tranche A Revolving Credit Commitment” means as to any Lender (i) the Dollar amount set forth opposite such Lender’s name on Schedule 4A hereof or (ii) if such Lender has entered into
an Assignment and Acceptance, the Dollar amount set forth for such Lender in the Register maintained by the Facility Agent pursuant to Section 9.7(d), in each case as such amount may be reduced pursuant to Section 2.14 (and, in the case of
a Tranche A Swingline Lender, its Tranche A Revolving Credit Commitment or that of its affiliate shall include such Tranche A Swingline Lender’s Tranche A Swingline Commitment). 
 “Tranche A Revolving Credit Facility” means, at any time, the aggregate amount of the Tranche A Revolving Credit
Lenders’ Tranche A Revolving Credit Commitments at such time. 
 “Tranche A Revolving Credit Lender”
means any Lender that has a Tranche A Revolving Credit Commitment. 
 “Tranche A Revolving Credit Note” means
a promissory note of any Borrower payable to the order of any Tranche A Revolving Credit Lender, delivered pursuant to a request made under Section 2.21 in substantially the form of Exhibit A-1 hereto, evidencing the aggregate indebtedness of
such Borrower to such Tranche A Lender resulting from the Tranche A Revolving Credit Advances made by such Tranche A Lender to such Borrower. 
 “Tranche A Swingline Advance” means an advance by a Tranche A Swingline Lender to any Borrower as part of a Tranche A Swingline Borrowing and refers to a Euro Swingline Advance or a Dollar Swingline
Advance (each of which shall be a “Type” of Tranche A Swingline Advance). 
 “Tranche A Swingline
Borrowing” means a borrowing consisting of simultaneous Tranche A Swingline Advances made by each of the Tranche A Swingline Lenders pursuant to Section 2.9. 
 “Tranche A Swingline Commitment” means as to any Lender (i) the Dollar amount set forth opposite such Lender’s
name on Schedule 5A hereof or (ii) if such Lender has entered into an Assignment and Acceptance, the Dollar amount set forth for such Lender in the Register maintained by the Facility Agent pursuant to Section 9.7(d), in each case as such
amount may be reduced pursuant to Section 2.14. 
  

 12 

 “Tranche A Swingline Facility” means, at any time, the aggregate amount
of the Tranche A Swingline Lenders’ Tranche A Swingline Commitments at such time. 
 “Tranche A Swingline
Lender” means any Lender that has a Tranche A Swingline Commitment. 
 “Tranche B Revolving Credit
Advance” means an advance by a Tranche B Revolving Credit Lender to any Borrower as part of a Tranche B Revolving Credit Borrowing and refers to a EURIBOR Advance or a LIBOR Advance (each of which shall be a “Type” of
Tranche B Revolving Credit Advance). 
 “Tranche B Revolving Credit Borrowing” means a borrowing consisting
of simultaneous Tranche B Revolving Credit Advances of the same Type made by each of the Tranche B Revolving Credit Lenders pursuant to Section 2.1(b). 
 “Tranche B Revolving Credit Commitment” means as to any Lender (i) the Dollar amount set forth opposite such
Lender’s name on Schedule 4B hereof or (ii) if such Lender has entered into an Assignment and Acceptance, the Dollar amount set forth for such Lender in the Register maintained by the Facility Agent pursuant to Section 9.7(d), in each
case as such amount may be reduced pursuant to Section 2.14 (and, in the case of a Tranche B Swingline Lender, its Tranche B Revolving Credit Commitment or that of its affiliate shall include such Tranche B Swingline Lender’s Tranche B
Swingline Commitment). 
 “Tranche B Revolving Credit Facility” means, at any time, the aggregate amount of
the Tranche B Revolving Credit Lenders’ Tranche B Revolving Credit Commitments at such time. 
 “Tranche B
Revolving Credit Lender” means any Lender that has a Tranche B Revolving Credit Commitment. 
 “Tranche B
Revolving Credit Note” means a promissory note of any Borrower payable to the order of any Tranche B Revolving Credit Lender, delivered pursuant to a request made under Section 2.21 in substantially the form of Exhibit A-2 hereto,
evidencing the aggregate indebtedness of such Borrower to such Lender resulting from the Tranche B Revolving Credit Advances made by such Lender to such Borrower. 
 “Tranche B Swingline Advance” means an advance by a Tranche B Swingline Lender to any Borrower as part of a Tranche B
Swingline Borrowing and refers to a Euro Swingline Advance or a Dollar Swingline Advance (each of which shall be a “Type” of Tranche B Swingline Advance). 
 “Tranche B Swingline Borrowing” means a borrowing consisting of simultaneous Tranche B Swingline Advances made by each of
the Tranche B Swingline Lenders pursuant to Section 2.10. 
  

 13 

 “Tranche B Swingline Commitment” means as to any Lender (i) the
Dollar amount set forth opposite such Lender’s name on Schedule 5B hereof or (ii) if such Lender has entered into an Assignment and Acceptance, the Dollar amount set forth for such Lender in the Register maintained by the Facility Agent
pursuant to Section 9.7(d) in each case as such amount may be reduced pursuant to Section 2.14. 
 “Tranche
B Swingline Facility” means, at any time, the aggregate amount of the Tranche B Swingline Lenders’ Tranche B Swingline Commitments at such time. 
 “Tranche B Swingline Lender” means any Lender that has a Tranche B Swingline Commitment. 
  

	1.2.	Computation of Time Periods. In this Agreement in the computation of periods of time from a specified date to a later specified date, the word “from” means
“from and including” and the words “to” and “until” each mean “to but excluding.” 

  

	1.3.	Accounting Terms. All accounting terms not specifically defined herein shall be construed in accordance with accounting principles generally accepted in the United States of
America, except that if there has been a material change in an accounting principle affecting the definition of an accounting term as compared to that applied in the preparation of the financial statements of PMI as of and for the year ended
31 December 2006, then such new accounting principle shall not be used in the determination of the amount associated with that accounting term. A material change in an accounting principle is one that, in the year of its adoption, changes the
amount associated with the relevant accounting term for any quarter in such year by more than 10%. 

  

	2.	AMOUNTS AND TERMS OF THE ADVANCES 

  

	2.1.	The Revolving Credit Advances. (a) Obligation to Make Tranche A Revolving Credit Advances. Each Tranche A Revolving Credit Lender severally agrees, on the terms
and conditions hereinafter set forth, to make Tranche A Revolving Credit Advances to any Borrower from time to time on any Business Day during the period from the Effective Date until the Termination Date in an aggregate amount outstanding not to
exceed at any time such Lender’s Tranche A Revolving Credit Commitment; provided, however, that the aggregate amount of the Tranche A Revolving Credit Commitments shall be deemed used from time to time to the extent of the
aggregate amount of the Tranche A Swingline Advances then outstanding; provided, further, that each Tranche A Revolving Credit Lender’s Tranche A Revolving Credit Commitment shall be deemed used from time to time to the extent of
the Tranche A Swingline Advances made by it or its affiliate that is a Tranche A Swingline Lender. 

 (b) Obligation to Make
Tranche B Revolving Credit Advances. Each Tranche B Revolving Credit Lender severally agrees, on the terms and conditions hereinafter set forth, to make Tranche B Revolving Credit Advances to any Borrower from time to time on any Business Day
during the period from the Effective Date until the Termination 

  

 14 

 
Date in an aggregate amount outstanding not to exceed at any time such Lender’s Tranche B Revolving Credit Commitment; provided, however,
that the aggregate amount of the Tranche B Revolving Credit Commitments shall be deemed used from time to time to the extent of the aggregate amount of the Tranche B Swingline Advances then outstanding; provided, further, that each
Tranche B Revolving Credit Lender’s Tranche B Revolving Credit Commitment shall be deemed used from time to time to the extent of the Tranche B Swingline Advances made by it or its affiliate that is a Tranche B Swingline Lender. 
  

	2.2.	(a) Type of Revolving Credit Advances. (i) Each Tranche A Revolving Credit Borrowing shall consist of Tranche A Revolving Credit Advances of the same Type made on the
same day by the Tranche A Revolving Credit Lenders ratably according to their respective Tranche A Revolving Credit Commitments. Within the limits of each Tranche A Revolving Credit Lender’s Tranche A Revolving Credit Commitment and subject to
this Section 2.2, any Borrower may borrow under this Section 2.2, prepay pursuant to Section 2.15 or repay pursuant to Section 2.5 and reborrow under this Section 2.2. 

 (ii) Each Tranche B Revolving Credit Borrowing shall consist of Tranche B Revolving Credit Advances of the same Type made on the same day by the Tranche B
Revolving Credit Lenders ratably according to their respective Tranche B Revolving Credit Commitments. Within the limits of each Tranche B Revolving Credit Lender’s Tranche B Revolving Credit Commitment and subject to this Section 2.2, any
Borrower may borrow under this Section 2.2, prepay pursuant to Section 2.15 or repay pursuant to Section 2.5 and reborrow under this Section 2.2. 
 (b) Amount of Revolving Credit Borrowings. Each Revolving Credit Borrowing consisting of EURIBOR Advances shall be in an aggregate amount of no less than €50,000,000 or an integral multiple of
€1,000,000 in excess thereof. Each Revolving Credit Borrowing consisting of LIBOR Advances shall be in an aggregate amount of no less than $50,000,000 or an integral multiple of $1,000,000 in excess thereof. 
  

	2.3.	The Term Advances. (a) Obligation to Make Term Advances. Each Term Lender severally agrees, on the terms and conditions hereinafter set forth, to make Term
Advances to any Borrower on the Effective Date in an aggregate amount not to exceed such Lender’s Term Commitment at such time. 

 (b) Amount of Term Borrowings. Each Term Borrowing shall be in an aggregate amount of no less than €50,000,000 or an integral multiple of €1,000,000 in excess thereof. 
 (c) Type of Term Advances. Each Term Borrowing shall consist of EURIBOR Advances made on the same day by the Term Lenders ratably according to
their respective Term Commitments. Any Borrower may borrow under this Section 2.3, prepay pursuant to Section 2.15 or repay pursuant to Section 2.5. Term Advances may not be reborrowed. 
  

 15 

	2.4.	Making the Pro Rata Advances. (a) Notice of Pro Rata Borrowing. Each Pro Rata Borrowing shall be made on notice, given not later than 11:00 A.M. (London time) on
the third Business Day prior to the date of the proposed Pro Rata Borrowing, by the Borrower to the Facility Agent which shall give to each Appropriate Lender prompt notice thereof by facsimile. Each such notice of a Pro Rata Borrowing (a
“Notice of Pro Rata Borrowing”) shall be by facsimile, such notice to be in substantially the form of Exhibit B-1 hereto, specifying therein the requested: 

 (i) date of such Pro Rata Borrowing, 
 (ii)
Facility of the Pro Rata Advances comprising such Pro Rata Borrowing and, if applicable, Type of Revolving Credit Advances, 
 (iii) aggregate
amount of such Pro Rata Borrowing, and 
 (iv) the initial Interest Period for each such Pro Rata Advance. 
 (b) Funding Pro Rata Advances. Each Appropriate Lender shall, before 2:00 P.M. (London time) on the date of such Pro Rata Borrowing, make available
for the account of its Applicable Lending Office to the Facility Agent at the Facility Agent’s Account, in same day funds, such Lender’s ratable portion of such Pro Rata Borrowing. After receipt of such funds by the Facility Agent and upon
fulfillment of the applicable conditions set forth in Article 3, the Facility Agent will make such funds available to the relevant Borrower as specified in the applicable Notice of Pro Rata Borrowing. 
 (c) Irrevocable Notice. Each Notice of Pro Rata Borrowing of any Borrower shall be irrevocable and binding on such Borrower. The Borrower
requesting a Pro Rata Borrowing shall indemnify each Appropriate Lender against any loss, cost or expense incurred by such Lender as a result of any failure to fulfill on or before the date specified in such Notice of Pro Rata Borrowing for such Pro
Rata Borrowing the applicable conditions set forth in Article 3, including, without limitation, any loss (excluding loss of anticipated profits), cost or expense incurred by reason of the liquidation or reemployment of deposits or other funds
acquired by such Lender to fund the Pro Rata Advance to be made by such Lender as part of such Pro Rata Borrowing when such Pro Rata Advance, as a result of such failure, is not made on such date. 
 (d) Lender’s Ratable Portion. Unless the Facility Agent shall have received notice from an Appropriate Lender prior to 2:00 P.M. (London time)
on the day of any Pro Rata Borrowing that such Lender will not make available to the Facility Agent such Lender’s ratable portion of such Pro Rata Borrowing, the Facility Agent may assume that such Lender has made such portion available to the
Facility Agent on the date of such Pro Rata Borrowing in accordance with Section 2.4(b) and the Facility Agent may, in reliance upon such assumption, make available to the Borrower proposing such Pro Rata 

  

 16 

 
Borrowing on such date a corresponding amount. If and to the extent that such Lender shall not have so made such ratable portion available to the Facility
Agent such Lender and such Borrower severally agree to repay to the Facility Agent forthwith on demand such corresponding amount together with interest thereon, for each day from the date such amount is made available to such Borrower until the date
such amount is repaid to the Facility Agent at: 
 (i) in the case of such Borrower, the higher of (A) the interest rate applicable at
the time to Pro Rata Advances comprising such Pro Rata Borrowing and (B) the cost of funds incurred by the Facility Agent in respect of such amount, and 
 (ii) in the case of such Lender, the cost of funds incurred by the Facility Agent in respect of such amount. 
 If such
Lender shall repay to the Facility Agent such corresponding amount, such amount so repaid shall constitute such Lender’s Pro Rata Advance as part of such Pro Rata Borrowing for purposes of this Agreement. 
 (e) Independent Lender Obligations. The failure of any Lender to make the Pro Rata Advance to be made by it as part of any Pro Rata Borrowing shall
not relieve any other Lender of its obligation, if any, hereunder to make its Pro Rata Advance on the date of such Pro Rata Borrowing, but no Lender shall be responsible for the failure of any other Lender to make the Pro Rata Advance to be made by
such other Lender on the date of any Pro Rata Borrowing. 
  

	2.5.	Repayment of Pro Rata Advances. Each Borrower shall repay to the Facility Agent for the ratable account of the Appropriate Lenders on the applicable Termination Date the
unpaid principal amount of the Pro Rata Advances then outstanding. 

  

	2.6.	Interest on Pro Rata Advances. Subject to Section 2.8(c), each Borrower shall pay interest on the unpaid principal amount of each Pro Rata Advance owing by such Borrower
to each Appropriate Lender from the date of such Pro Rata Advance until such principal amount shall be paid in full, at the following rates per annum; provided, however, that clause (b) shall not apply to Term Advances:

 (a) EURIBOR Advances. During such periods as such Pro Rata Advance is a EURIBOR Advance, a rate per annum equal at all
times during each Interest Period for such Pro Rata Advance to the sum of (x) EURIBOR for such Interest Period for such Pro Rata Advance plus (y) the Applicable Interest Rate Margin plus (z) Mandatory Cost, if any,
payable in arrears on the last day of such Interest Period and, if such Interest Period has a duration of more than six months, on the day that occurs during such Interest Period six months from the first day of such Interest Period and on the date
such EURIBOR Advance shall be paid in full. 
 (b) LIBOR Advances. During such periods as such Revolving Credit Advance is a LIBOR
Advance, a rate per annum equal at all times during each Interest Period for such 

  

 17 

 
Revolving Credit Advance to the sum of (x) LIBOR for such Interest Period for such Revolving Credit Advance plus (y) the Applicable Interest
Rate Margin plus (z) Mandatory Cost, if any, payable in arrears on the last day of such Interest Period and, if such Interest Period has a duration of more than six months, on the day that occurs during such Interest Period six months
from the first day of such Interest Period and on the date such LIBOR Advance shall be paid in full. 
  

	2.7.	Absence of Interest Period for Pro Rata Advances. If any Borrower shall fail to select the duration of any Interest Period for any Pro Rata Advances in accordance with the
provisions contained in the definition of the term “Interest Period,” the Facility Agent will forthwith so notify such Borrower and the Appropriate Lenders and the Interest Period for such Advances will automatically, on the last day of
the then existing Interest Period therefor, be one month. 

  

	2.8.	Interest Rate Determination for Pro Rata Advances. (a) Methods to Determine EURIBOR and LIBOR. The Facility Agent shall determine EURIBOR and LIBOR by using the
methods described in the definition of the terms “EURIBOR” and “LIBOR,” respectively, and shall give prompt notice to the Borrower and Appropriate Lenders of each such EURIBOR or LIBOR. 

 (b) Role of Reference Banks. In the event that EURIBOR or LIBOR cannot be determined by the method described in clause (a) of the definitions
“EURIBOR” or “LIBOR,” respectively, each Reference Bank agrees to furnish to the Facility Agent timely information for the purpose of determining EURIBOR or LIBOR, as the case may be, in accordance with the method described in
clause (b) of the definitions thereof. If any one or more of the Reference Banks shall not furnish such timely information to the Facility Agent for the purpose of determining EURIBOR or LIBOR, the Facility Agent shall determine such interest
rate on the basis of timely information furnished by the remaining Reference Banks. 
 (c) Market Disruption. (i) If the
applicable Reuters Page is unavailable and fewer than two Reference Banks furnish timely information to the Facility Agent for determining EURIBOR for any EURIBOR Advances or LIBOR for any LIBOR Advances, as the case may be, or (ii) with
respect to Pro Rata Advances under any Facility, the Lenders owed or required to lend at least 50.1% of the aggregate principal amount thereof notify the Facility Agent that EURIBOR or LIBOR for any Interest Period will not adequately reflect the
cost to such Lenders of making, funding or maintaining their respective Pro Rata Advances for such Interest Period (each, a “Market Disruption Event”) then the rate of interest on each Lender’s share of that Pro Rata Advance
for the Interest Period shall be the rate per annum which is the sum of (x) the Applicable Interest Rate Margin plus (y) the rate notified to the Facility Agent and the Borrower by that Lender in a certificate (which sets out the
details of the computation of the relevant rate and shall be prima facie non-binding evidence of the same) as soon as practicable and in any event before interest is due to be paid in respect of that Interest Period, to be that which
expresses as a percentage rate per annum the cost to that Lender of funding its participation in that Pro Rata Advance from whatever source it may reasonably select plus (z) Mandatory Cost, if any, applicable to that Lender’s
participation in the Pro Rata Advance. 
  

 18 

 (d) If a Market Disruption Event occurs and the Facility Agent or the applicable Borrower so requires:

 (i) the Facility Agent, PMI and such Borrower shall enter into negotiations (for a period of not more than thirty days) with a view to
agreeing on a substitute basis for determining the interest rate; and 
 (ii) any alternative basis agreed upon pursuant to clause
(i) above shall, with the prior consent of all the Appropriate Lenders, PMI and such Borrower, be binding on all such parties hereto. 
  

	2.9.	The Swingline Advances. (a) Obligation to Make Tranche A Swingline Advances. Each Tranche A Swingline Lender severally agrees, on the terms and conditions
hereinafter set forth, to make Tranche A Swingline Advances to any Borrower from time to time on any Business Day during the period from the Effective Date until the Termination Date in an aggregate amount outstanding not to exceed at any time such
Tranche A Swingline Lender’s Tranche A Swingline Commitment. 

 (b) Obligation to Make Tranche B Swingline Advances.
Each Tranche B Swingline Lender severally agrees, on the terms and conditions hereinafter set forth, to make Tranche B Swingline Advances to any Borrower from time to time on any Business Day during the period from the Effective Date until the
Termination Date in an aggregate amount outstanding not to exceed at any time such Tranche B Swingline Lender’s Tranche B Swingline Commitment. 
 (c) Type of Swingline Advances. (i) Each Tranche A Swingline Borrowing shall consist of Tranche A Swingline Advances of the same Type made on the same day by the Tranche A Swingline Lenders ratably according to their respective
Tranche A Swingline Commitments. Within the limits of each Tranche A Swingline Lender’s Tranche A Swingline Commitment and subject to this Section 2.9, any Borrower may borrow under this Section 2.9, prepay pursuant to
Section 2.15 or repay pursuant to Section 2.11 and reborrow under this Section 2.9, 
 (ii) Each Tranche B Swingline Borrowing
shall consist of Tranche B Swingline Advances of the same Type made on the same day by the Tranche B Swingline Lenders ratably according to their respective Tranche B Swingline Commitments. Within the limits of each Tranche B Swingline Lender’s
Tranche B Swingline Commitment and subject to this Section 2.9, any Borrower may borrow under this Section 2.9, prepay pursuant to Section 2.15 or repay pursuant to Section 2.11 and reborrow under this Section 2.9.

 (d) Amount of Swingline Borrowings. Each Swingline Borrowing shall be in an aggregate amount of no less than €1,000,000 or
$1,000,000, as the case may be. 
  

 19 

 (e) Relationship with the Revolving Credit Facilities. (i) Tranche A Revolving Credit
Facility. (A) The Tranche A Revolving Credit Facility may be used by way of Tranche A Swingline Advances. The Tranche A Swingline Facility is not independent of the Tranche A Revolving Credit Facility. 
  

	 	(B)	Notwithstanding any other term of this Agreement, a Tranche A Swingline Lender is only obliged to participate in a Tranche A Revolving Credit Advance or a Tranche A Swingline
Advance to the extent that it would not result in the participation by it and its affiliate that is a Tranche A Revolving Credit Lender in such Tranche A Revolving Credit Advances and Tranche A Swingline Advances exceeding its Tranche A Revolving
Credit Commitment or that of its affiliate that is a Tranche A Revolving Credit Lender. 

  

	 	(C)	Where, but for the operation of paragraph (B) above, a Tranche A Revolving Credit Lender’s participation (including the participation of its affiliate that is a Tranche A
Swingline Lender hereunder) in the Tranche A Revolving Credit Advances and Tranche A Swingline Advances would have exceeded its Tranche A Revolving Credit Commitment, the excess will be apportioned among the other Tranche A Revolving Credit Lenders
participating in the relevant Tranche A Revolving Credit Advance pro rata according to their relevant Tranche A Revolving Credit Commitments. This calculation will be applied as often as necessary until the Tranche A Revolving Credit Advance is
apportioned among the relevant Tranche A Revolving Credit Lenders in a manner consistent with paragraph (B) above. 

 (ii)
Tranche B Revolving Credit Facility. (A) The Tranche B Revolving Credit Facility may be used by way of Tranche B Swingline Advances. The Tranche B Swingline Facility is not independent of the Tranche B Revolving Credit Facility.

  

	 	(B)	Notwithstanding any other term of this Agreement, a Tranche B Swingline Lender is only obliged to participate in a Tranche B Revolving Credit Advance or a Tranche B Swingline
Advance to the extent that it would not result in the participation by it and its affiliate that is a Tranche B Revolving Credit Lender in such Tranche B Revolving Credit Advances and Tranche B Swingline Advances exceeding its Tranche B Revolving
Credit Commitment or that of its affiliate that is a Tranche B Revolving Credit Lender. 

  

	 	(C)	 Where, but for the operation of paragraph (B) above, a Tranche B Revolving Credit Lender’s participation (including the participation of its affiliate
that is a Tranche B Swingline Lender hereunder) in the Tranche B Revolving Credit Advances and 

  

 20 

	 	 
Tranche B Swingline Advances would have exceeded its Tranche B Revolving Credit Commitment, the excess will be apportioned among the other Tranche B
Revolving Credit Lenders participating in the relevant Tranche B Revolving Credit Advance pro rata according to their relevant Tranche B Revolving Credit Commitments. This calculation will be applied as often as necessary until the Tranche B
Revolving Credit Advance is apportioned among the relevant Tranche B Revolving Credit Lenders in a manner consistent with paragraph (B) above. 

  

	2.10.	Making the Swingline Advances. (a) Notice of Swingline Borrowing. Each Swingline Borrowing shall be made on notice, given not later than 10:30 A.M. (London time)
on the date of the proposed Swingline Borrowing, by the Borrower to the Swingline Agent which shall give to the appropriate Swingline Lenders prompt notice thereof by facsimile; provided that Swingline Borrowings consisting of Dollar
Swingline Advances may be requested after 10:30 A.M. (London time) and before 12:00 P.M. (New York time) subject to Section 2.12. Each such notice of a Swingline Borrowing (a “Notice of Swingline Borrowing”) shall be by
facsimile, such notice to be in substantially the form of Exhibit B-2 hereto, specifying therein the requested: 

 (i) date of
such Swingline Borrowing, 
 (ii) Facility and Type of the Swingline Advances comprising such Swingline Borrowing, 
 (iii) aggregate amount of such Swingline Borrowing, and 
 (iv) the Interest Period for each such Swingline Advance. 
 (b) Funding Swingline Advances. Each
Swingline Lender shall, before (i) 12:00 P.M. (London time) with respect to Notices of Swingline Borrowing given not later than 10:30 A.M. (London time) or (ii) 1:30 P.M. (New York time) with respect to Notices of Swingline Borrowing
for LIBOR Advances given after 10:30 A.M. (London time) and before 12:00 P.M. (New York time), on the date of such Swingline Borrowing, make available for the account of its Applicable Lending Office to the Swingline Agent, in same day funds,
such Swingline Lender’s ratable portion of such Swingline Borrowing. After receipt of such funds by the Swingline Agent and upon fulfillment of the applicable conditions set forth in Article 3, the Swingline Agent will make such funds available
to the relevant Borrower as specified in the applicable Notice of Swingline Borrowing. 
 (c) Irrevocable Notice. Each Notice of
Swingline Borrowing of any Borrower shall be irrevocable and binding on such Borrower. The Borrower requesting a Swingline Borrowing shall indemnify each Swingline Lender against any loss, cost or expense incurred by such Swingline Lender as a
result of any failure to fulfill on or before the date specified in such Notice of Swingline Borrowing for such Swingline Borrowing the 

  

 21 

 
applicable conditions set forth in Article 3, including, without limitation, any loss (excluding loss of anticipated profits), cost or expense incurred by
reason of the liquidation or reemployment of deposits or other funds acquired by such Swingline Lender to fund the Swingline Advance to be made by such Swingline Lender as part of such Swingline Borrowing when such Swingline Advance, as a result of
such failure, is not made on such date. 
 (d) Swingline Lender’s Ratable Portion. Unless the Swingline Agent shall have received
notice from a Swingline Lender prior to (i) 12:00 P.M. (London time) with respect to Notices of Swingline Borrowing given not later than 10:30 A.M. (London time) or (ii) 1:30 P.M. (New York time) with respect to Notices of Swingline
Borrowing for LIBOR Advances given after 10:30 A.M. (London time) and before 12:00 P.M. (New York time), on the day of any Swingline Borrowing that such Swingline Lender will not make available to the Swingline Agent such Swingline
Lender’s ratable portion of such Swingline Borrowing, the Swingline Agent may assume that such Swingline Lender has made such portion available to the Swingline Agent on the date of such Swingline Borrowing in accordance with
Section 2.10(b) and the Swingline Agent may, in reliance upon such assumption, make available to the Borrower proposing such Swingline Borrowing on such date a corresponding amount. If and to the extent that such Swingline Lender shall not have
so made such ratable portion available to the Swingline Agent such Swingline Lender and such Borrower severally agree to repay to the Swingline Agent forthwith on demand such corresponding amount together with interest thereon, for each day from the
date such amount is made available to such Borrower until the date such amount is repaid to the Swingline Agent at: 
 (i) in the case of such
Borrower, the higher of (A) the interest rate applicable at the time to Swingline Advances comprising such Swingline Borrowing and (B) the cost of funds incurred by the Swingline Agent in respect of such amount, and 
 (ii) in the case of such Swingline Lender, the cost of funds incurred by the Swingline Agent in respect of such amount. 
 If such Swingline Lender shall repay to the Swingline Agent such corresponding amount, such amount so repaid shall constitute such Swingline Lender’s Swingline
Advance as part of such Swingline Borrowing for purposes of this Agreement. 
 (e) Independent Swingline Lender Obligations. The
failure of any Swingline Lender to make the Swingline Advance to be made by it as part of any Swingline Borrowing shall not relieve any other Swingline Lender of its obligation hereunder to make its Swingline Advance on the date of such Swingline
Borrowing, but no Swingline Lender shall be responsible for the failure of any other Swingline Lender to make the Swingline Advance to be made by such other Swingline Lender on the date of any Swingline Borrowing. 
  

 22 

	2.11.	Repayment of Swingline Advances. (a) Each Borrower shall repay to the Swingline Agent for the ratable account of the Swingline Lenders on the last day of the applicable
Interest Period, the unpaid principal amount of any Swingline Advance then outstanding. 

 (b) In the event that a Borrower does
not repay a Swingline Advance made to it in full on the last day of its Interest Period, on the Business Day immediately following such day, that Borrower shall be deemed to have served a Notice of Pro Rata Borrowing for a Revolving Credit Advance
to be made on the third Business Day thereafter in the amount (including accrued interest) and currency of such Swingline Advance and with an Interest Period of one month and such Revolving Credit Advance shall be made on the third Business Day in
accordance with Section 2.1 (without regard to clause (b) thereof) and the proceeds thereof applied in repayment of such Swingline Advance. Notwithstanding anything contained herein to the contrary, for the time period from the day
immediately following the end of the Interest Period for any such Swingline Advance that is not repaid on the last day of its Interest Period until and including the third Business Day thereafter, Section 2.18(e) shall apply to the unpaid
principal amount of any such Swingline Advance. 
 (c) Section 3.3 shall not apply to any Revolving Credit Advance to which this
Section 2.11 refers. 
 (d) In the circumstances set out in paragraph (b) above, to the extent that it is not possible to make a
Revolving Credit Advance due to the insolvency of a Borrower, the Lenders will indemnify (pro-rata according to their Revolving Credit Commitments) the Swingline Lenders for any loss that they incur as a result of the relevant Swingline Borrowing.

  

	2.12.	Interest on Swingline Advances. Subject to Section 2.11(b), each Borrower shall pay interest on the unpaid principal amount of each Swingline Advance owing by such
Borrower to each Swingline Lender from the date of such Swingline Advance until such principal amount shall be paid in full, at the following rates per annum: 

 (a) Euro Swingline Advances. For each Euro Swingline Advance, a rate per annum equal at all times during the Interest Period for such Euro
Swingline Advance to the sum of (x) the rate per annum determined by the Swingline Agent to be the arithmetic mean (rounded upwards to the nearest whole multiple of 1/16 of 1% per annum, if such arithmetic mean is not such a multiple) of
the rates at which deposits in Euro are offered by the principal office of each of the Reference Banks to prime banks in the European interbank market at 11:00 A.M. (Brussels time) on the date of such Euro Swingline Advance for an amount
substantially equal to the amount that would be the Reference Banks’ respective ratable shares of such Borrowing outstanding during such Interest Period and for a period equal to such Interest Period; provided that if only one Reference
Bank is able to provide the rates as described above, each Swingline Lender shall supply the Swingline Agent with its rate for same day funding in Euro to prime banks in the European interbank market at 11:00 A.M. (Brussels time) on the date of such
Euro Swingline Advance for an amount substantially equal to the amount equal to such 

  

 23 

 
Swingline Lender’s ratable share of such Borrowing outstanding during such Interest Period and for a period equal to such Interest Period and such rate
shall be payable to such Swingline Lender plus (y) the Applicable Interest Rate Margin plus (z) Mandatory Cost, if any, payable in arrears on the last day of such Interest Period. 
 (b) Dollar Swingline Advances. (i) For each Dollar Swingline Advance requested by 10:30 A.M. (London time), a rate per annum equal at all
times during the Interest Period for such Dollar Swingline Advance to the sum of (x) the rate per annum determined by the Swingline Agent to be the arithmetic mean (rounded upwards to the nearest whole multiple of 1/16 of 1% per annum, if
such arithmetic mean is not such a multiple) of the rates at which deposits in Dollars are offered by the principal office of each of the Reference Banks to prime banks in the London interbank market at 11:00 A.M. (London time) on the date of such
Dollar Swingline Advance for an amount substantially equal to the amount that would be the Reference Banks’ respective ratable shares of such Borrowing outstanding during such Interest Period and for a period equal to such Interest Period;
provided that if only one Reference Bank is able to provide the rates as described above, each Swingline Lender shall supply the Swingline Agent with its rate for same day funding in Dollars to prime banks in the London interbank market at
11:00 A.M. (London time) on the date of such Dollar Swingline Advance for an amount substantially equal to the amount equal to such Swingline Lender’s ratable share of such Borrowing outstanding during such Interest Period and for a period
equal to such Interest Period and such rate shall be payable to such Swingline Lender plus (y) the Applicable Interest Rate Margin plus (z) Mandatory Cost, if any, payable in arrears on the last day of such Interest Period;
and 
 (ii) for each Dollar Swingline Advance requested after 10:30 A.M. (London time) and before 12:00 P.M. (New York time), a rate per annum
equal at all times during the Interest Period for such Dollar Swingline Advance to the higher of (a) the rate of interest announced publicly by JPMorgan Chase Bank, N.A. in New York, New York, from time to time, as JPMorgan Chase Bank,
N.A.’s prime rate and (b) one-half of one percent above the Federal Funds Effective Rate, payable in arrears on the last day of such Interest Period. 
  

	2.13.	Fees. (a) Commitment Fee. PMI agrees to pay to the Facility Agent for the account of each Revolving Credit Lender, 0.1050% per annum on the aggregate amount
of the unused portion of such Lender’s Tranche A Revolving Credit Commitment and 0.0975% per annum on the aggregate amount of the unused portion of such Lender’s Tranche B Revolving Credit Commitment (it being understood that any
Swingline Advances shall be deemed to use the relevant Revolving Credit Commitment of each Swingline Lender or its affiliate that is a Revolving Credit Lender hereunder) from the date hereof in the case of each Revolving Credit Lender that is an
Initial Lender and from the effective date specified in the Assignment and Acceptance pursuant to which it became a Lender in the case of each other Revolving Credit Lender until the Termination Date, in each case payable on the last Business Day of
each March, June, September and December until the Termination Date and on the Termination Date. 

  

 24 

 (b) Agent’s Fees. PMI shall pay to the Facility Agent and Swingline Agent for its own account
such fees as may from time to time be agreed between PMI and such Agent. 
  

	2.14.	Termination or Reduction of the Commitments; Term-Out Option. (a) Optional. PMI shall have the right, upon at least three Business Days’ notice to the
Facility Agent, to terminate in whole or reduce ratably in part the unused portions of the respective Revolving Credit Commitments of the Lenders; provided that each partial reduction of a Facility shall be in the aggregate amount of no less
than €50,000,000 or the remaining balance if less than €50,000,000 and shall be ratable among the Lenders affected thereby in accordance with their Commitments with respect to such Facility; and provided, further, that
following any such termination or reduction, the aggregate Swingline Commitments shall not exceed the aggregate Revolving Credit Commitments. 

 (b) Term-Out Option. PMI may, by written notice to the Facility Agent, which shall promptly notify the Lenders, not later than 15 Business Days prior to the Termination Date (the “Term
Notice”), extend the maturity date for all Term Advances outstanding at the close of business New York time on the Termination Date to the date specified in the Term Notice, which shall be no later than the first anniversary of the
Termination Date; provided that, on the date of the Term Notice and on the Termination Date, (i) no event has occurred and is continuing that constitutes a Default or Event of Default and (ii) the representations contained in
Section 4.1 (except the representations set forth in the last sentence of subsection (e) and in subsection (f) thereof (other than clause (i) thereof)) are correct; and provided, further, that the option provided
for in this Section 2.14 may be exercised only once. If a Term Notice is given, each Borrower shall repay to the Facility Agent, for the ratable account of the Term Lenders on the maturity date set forth in such Term Notice, the unpaid
principal amount of the Term Advances then outstanding. Upon the effectiveness of the extension provided for in this Section 2.14(b), all terms of this Agreement shall remain in full force and effect. The Borrower agrees that it will, upon the
request of any Term Lender through the Facility Agent, issue a new Term Note in favor of such Term Lender reflecting the extended maturity date, in exchange for the Term Note held by such Term Lender, which shall be promptly returned to the Borrower
and marked “cancelled”. 
  

	2.15.	Prepayments of Advances. (a) Optional Prepayments. (i) Pro Rata Advances. Each Borrower may, upon at least three Business Days’ notice to the
Facility Agent stating the proposed date and aggregate principal amount of the prepayment, and if such notice is given such Borrower shall, prepay the outstanding principal amount of the Pro Rata Advances comprising part of the same Pro Rata
Borrowing in whole or ratably in part; provided, however, that each partial prepayment shall be in an aggregate principal amount of no less than €50,000,000 or $50,000,000, as the case may be, or the remaining balance if less than
€50,000,000 or $50,000,000. 

 (ii) Swingline Advances. Each Borrower may, upon notice to the Swingline Agent by
9:00 A.M. (London time) on the date of the prepayment stating the aggregate principal amount of the prepayment, and, if such notice is given such Borrower shall, prepay the outstanding principal amount of the Swingline 

  

 25 

 
Advances comprising part of the same Swingline Borrowing in whole or ratably in part; provided, however, that each partial prepayment shall be
in an aggregate principal amount of no less than €1,000,000 or $1,000,000, as the case may be. 
 (b) Mandatory Prepayments.
(i) If the Facility Agent notifies PMI that, on any interest payment date, the sum of (A) the aggregate principal amount of all Revolving Credit Advances and Swingline Advances denominated in Euro then outstanding plus (B) the
Equivalent in Euro (determined on the third Business Day prior to such interest payment date) of the aggregate principal amount of all Revolving Credit Advances and Swingline Advances denominated in Dollars then outstanding exceeds 105% of the
aggregate Revolving Credit Commitments of the Lenders on such date, PMI and each other Borrower shall, within two Business Days after receipt of such notice, prepay the outstanding principal amount of any Revolving Credit Advances and Swingline
Advances owing by such Borrower in an aggregate amount sufficient to reduce such sum to an amount not to exceed 100% of the aggregate Revolving Credit Commitments of the Lenders on such date. 
 (ii) In the event that there shall be a Capital Markets Financing Transaction, PMI shall prepay outstanding Term Advances in an aggregate amount equal to
50% of the net proceeds, rounded to the nearest million (with $500,000 being rounded upward), of such Capital Markets Financing Transaction received by PMI or received by a Subsidiary of PMI that has issued securities in such Capital Markets
Financing Transaction guaranteed by PMI, on the last day of the current Interest Period for such Term Advances. 
 (iii) The Facility Agent
shall give prompt notice of any prepayment required under this Section 2.15(b) to the Borrowers and the Lenders. Prepayments under Section 2.15(b)(i) shall be allocated first to Swingline Advances, ratably among the Swingline Lenders; and
any excess amount shall then be allocated to Revolving Credit Advances comprising part of the same Revolving Credit Borrowing selected by the applicable Borrower, ratably among the Revolving Credit Lenders. Prepayments under Section 2.15(b)(ii)
shall be allocated to Term Advances ratably among the Term Lenders. 
 (c) Each prepayment made pursuant to this Section 2.15 shall be
made together with any interest accrued to the date of such prepayment on the principal amounts prepaid and any additional amounts which such Borrower shall be obligated to reimburse to the Lenders in respect thereof pursuant to Section 9.4(b).

  

	2.16.	 Increased Costs. (a) Costs from Change in Law or Authorities. If, due to either (i) the introduction of or any change (other than any change
by way of imposition or increase of reserve requirements to the extent such change is included in Mandatory Cost) in or in the interpretation of any law or regulation or (ii) the compliance with any guideline or request from any central bank or
other governmental authority (whether or not having the force of law), there shall be any increase in the cost to any Lender of agreeing to make or making, funding or maintaining Advances (excluding for purposes of this Section 2.16 

  

 26 

	 	 
any such increased costs resulting from (i) Taxes or Other Taxes (as to which Section 2.19 shall govern) and (ii) changes in the basis of
taxation of overall net income or overall gross income by the United States or by the foreign jurisdiction or state under the laws of which such Lender is organized or has its Applicable Lending Office or any political subdivision thereof), then the
Borrower of the affected Advances shall from time to time, upon demand by such Lender (with a copy of such demand to the Facility Agent), pay to the Facility Agent for the account of such Lender additional amounts sufficient to compensate such
Lender for such increased cost; provided, however, that before making any such demand, each Lender agrees to use reasonable efforts (consistent with its internal policy and legal and regulatory restrictions) to designate a different
Applicable Lending Office if the making of such a designation would avoid the need for, or reduce the amount of, such increased cost and would not, in the reasonable judgment of such Lender, be otherwise disadvantageous to such Lender. A certificate
as to the amount of such increased cost, submitted to such Borrower and the Facility Agent by such Lender, shall be conclusive and binding for all purposes, absent manifest error. 

 (b) Reduction in Lender’s Rate of Return. In the event that, after the date hereof, the implementation of or any change in any law or
regulation, or any guideline or directive (whether or not having the force of law) or the interpretation or administration thereof by any central bank or other authority charged with the administration thereof, imposes, modifies or deems applicable
any capital adequacy or similar requirement (including, without limitation, a request or requirement which affects the manner in which any Lender allocates capital resources to its commitments, including its obligations hereunder) and as a result
thereof, in the sole opinion of such Lender, the rate of return on such Lender’s capital as a consequence of its obligations hereunder is reduced to a level below that which such Lender could have achieved but for such circumstances, but
reduced to the extent that Borrowings are outstanding from time to time, then in each such case, upon demand from time to time PMI shall pay to such Lender such additional amount or amounts as shall compensate such Lender for such reduction in rate
of return; provided that, in the case of each Lender, such additional amount or amounts shall not exceed 0.15 of 1% per annum of such Lender’s Commitment. A certificate of such Lender as to any such additional amount or amounts
shall be conclusive and binding for all purposes, absent manifest error. Except as provided below, in determining any such amount or amounts each Lender may use any reasonable averaging and attribution methods. Notwithstanding the foregoing, each
Lender shall take all reasonable actions to avoid the imposition of, or reduce the amounts of, such increased costs, provided that such actions, in the reasonable judgment of such Lender, will not be otherwise disadvantageous to such Lender,
and, to the extent possible, each Lender will calculate such increased costs based upon the capital requirements for its Commitment hereunder and not upon the average or general capital requirements imposed upon such Lender. 
  

	2.17.	 Illegality. Notwithstanding any other provision of this Agreement, if (a) any Lender shall notify the Facility Agent that the introduction of or any
change in or in the interpretation of any law or regulation makes it unlawful, or any central bank or other governmental authority asserts that it is unlawful, for such Lender or its Applicable Lending Office to perform its obligations hereunder to
make Advances or to fund or maintain Advances or 

  

 27 

	 	 
(b) any Lender notifies PMI and the Facility Agent that it is unlawful for such Lender or its Applicable Lending Office to make Advances or to fund or
maintain Advances to a Designated Subsidiary due to the jurisdiction of organization of such Designated Subsidiary, then, in each case, the obligation of such Lender to make such Advances shall be suspended until the Facility Agent shall notify PMI
and the Lenders that the circumstances causing such suspension no longer exist and the relevant aggregate Commitments shall be temporarily reduced by the amount of such Lender’s share of the Commitments affected by such illegality for the
duration of the suspension with respect to such Advances; provided, however, that each Lender agrees to (i) use reasonable efforts (consistent with its internal policy and legal and regulatory restrictions) to designate a
different Applicable Lending Office if the making of such a designation would allow such Lender or its Applicable Lending Office to continue to perform its obligations to make Advances or to continue to fund or maintain Advances and would not, in
the judgment of such Lender, be otherwise disadvantageous to such Lender and (ii) to make or fund Advances to a different Borrower designated by PMI if the making of such designation would allow such Lender to continue to perform its
obligations to make Advances or to continue to fund or maintain Advances. 

  

	2.18.	Payments and Computations. (a) Time and Distribution of Payments. PMI and each Borrower shall make each payment hereunder, without set-off or counterclaim, not
later than 11:00 A.M. (London time) on the day when due to the Facility Agent at the Facility Agent’s Account in same day funds. The Facility Agent will promptly thereafter cause to be distributed like funds relating to the payment of principal
or interest or commitment fees ratably (other than amounts payable pursuant to Section 2.16, 2.19 or 9.4(b)) to the Lenders for the account of their respective Applicable Lending Offices, and like funds relating to the payment of any other
amount payable to any Lender to such Lender for the account of its Applicable Lending Office, in each case to be applied in accordance with the terms of this Agreement. From and after the effective date of an Assignment and Acceptance pursuant to
Section 9.7, the Facility Agent shall make all payments hereunder in respect of the interest assigned thereby to the Lender assignee thereunder, and the parties to such Assignment and Acceptance shall make all appropriate adjustments in such
payments for periods prior to such effective date directly between themselves. 

 (b) Computation of Interest and Fees.
All computations of interest and commitment fees shall be made by the Facility Agent or the Swingline Agent on the basis of a year of 360 days, or in the case of interest payable pursuant to Section 2.12(b)(ii), 365/366 days, in each case for
the actual number of days (including the first day but excluding the last day) occurring in the period for which such interest or commitment fees are payable. Each determination by the Facility Agent or the Swingline Agent of an interest rate
hereunder shall be conclusive and binding for all purposes, absent manifest error. 
 (c) Payment Due Dates. Whenever any payment
hereunder shall be stated to be due on a day other than a Business Day, such payment shall be made on the next succeeding Business Day, and such extension of time shall in such case be included in the computation of payment of interest or commitment
fee, as the case may be; provided, however, that if such extension would cause payment of interest on or principal of EURIBOR Advances or LIBOR Advances to be made in the next following calendar month, such payment shall be made on the
immediately preceding Business Day. 
  

 28 

 (d) Presumption of Borrower Payment. Subject to Section 2.11(b), unless the Facility Agent
receives notice from any Borrower prior to the date on which any payment is due to the Lenders hereunder that such Borrower will not make such payment in full, the Facility Agent may assume that such Borrower has made such payment in full to the
Facility Agent on such date and the Facility Agent may, in reliance upon such assumption, cause to be distributed to each Lender on such due date an amount equal to the amount then due such Lender. If and to the extent such Borrower has not made
such payment in full to the Facility Agent, each Lender shall repay to the Facility Agent forthwith on demand such amount distributed to such Lender together with interest thereon, for each day from the date such amount is distributed to such Lender
until the date such Lender repays such amount to the Facility Agent at the cost of funds incurred by the Facility Agent in respect of such amount. 
 (e) Default Interest. Upon the occurrence and during the continuance of an Event of Default, each Borrower shall pay interest on the unpaid principal amount of each Advance owing to each Lender, payable in arrears on the dates
referred to in Section 2.6 or Section 2.12, at a rate per annum equal at all times to 1% per annum above the rate per annum required to be paid on such Advance. 
  

	2.19.	Taxes. (a) Any and all payments by each Borrower and PMI hereunder shall be made, in accordance with Section 2.18, free and clear of and without deduction for any
and all present or future taxes, levies, imposts, deductions, charges or withholdings, and all liabilities with respect thereto, excluding, (i) in the case of each Lender and each Agent, taxes imposed on its net income, and franchise
taxes imposed on it, by the jurisdiction under the laws of which such Lender or Agent (as the case may be), is organized or any political subdivision thereof, (ii) in the case of each Lender, taxes imposed on its net income, and franchise taxes
imposed on it, by the jurisdiction of such Lender’s Applicable Lending Office or any political subdivision thereof, (iii) in the case of each Lender and each Agent, taxes imposed on its net income, franchise taxes imposed on it, and any
tax imposed by means of withholding to the extent such tax is imposed solely as a result of a present or former connection (other than the execution, delivery and performance of this Agreement or a Note) between such Lender or Agent (as the case may
be) and the taxing jurisdiction, and (iv) in the case of each Lender and each Agent, taxes imposed by the United States by means of withholding tax if and to the extent that such taxes shall be in effect and shall be applicable on the date
hereof to payments to be made to such Lender’s Applicable Lending Office or to such Agent (all such non-excluded taxes, levies, imposts, deductions, charges, withholdings and liabilities in respect of payments hereunder being hereinafter
referred to as “Taxes”). 

 (b) If any Borrower or PMI shall be required by law to deduct any Taxes from or in
respect of any sum payable hereunder to any Lender or Agent, (i) the sum payable shall be increased as may be necessary so that after making all required deductions (including deductions applicable to additional sums payable under this
Section 2.19) such Lender or 

  

 29 

 
Agent (as the case may be), receives an amount equal to the sum it would have received had no such deductions been made, (ii) such Borrower or PMI shall
make such deductions and (iii) such Borrower or PMI shall pay the full amount deducted to the relevant taxation authority or other authority in accordance with applicable law. If clause (i) of this Section 2.19(b) is unenforceable for
any reason in respect of any Borrower, then: 
  

	 	(A)	for each period during which a deduction or withholding for or on account of any Taxes is required to be made by the Borrower with respect to the payment of interest under this
Agreement (the “Tax Deduction”), in lieu of application of clause (i) of this Section 2.19(b), the rate of interest on the Advances as set out in Sections 2.6 and 2.12 shall be the percentage rate per annum which is the
aggregate of the applicable: 

  

	 	(i)	Interest Rate Margin, 

  

	 	(ii)	EURIBOR or LIBOR, as applicable; and 

  

	 	(iii)	Mandatory Cost, if any, 

 divided by a factor equal to one
(1) minus the amount of the Tax Deduction expressed as a multiplier (i.e., ten (10) percent will be expressed as 0.10 and not as 10%); and 
  

	 	(B)	all references to a rate of interest under Sections 2.6 and 2.12 shall be construed thereafter as adjusted in accordance with this Section 2.19(b). 

 (c) In addition, each Borrower or PMI shall pay any present or future stamp or documentary taxes or any other excise or property taxes, charges or similar
levies that arise from any payment made hereunder or from the execution, delivery or registration of, performing under, or otherwise with respect to, this Agreement (hereinafter referred to as “Other Taxes”). 
 (d) Each Borrower and PMI shall indemnify each Lender and each Agent for and hold it harmless against the full amount of Taxes or Other Taxes (including,
without limitation, Taxes and Other Taxes imposed by any jurisdiction on amounts payable under this Section 2.19) paid by such Lender or Agent (as the case may be), and any liability (including penalties, interest and expenses) arising
therefrom or with respect thereto, whether or not such Taxes or Other Taxes were correctly or legally asserted. This indemnification shall be made within 30 days from the date such Lender or Agent (as the case may be), makes written demand therefor.

 (e) Within 30 days after the date of any payment of Taxes, each Borrower and PMI shall furnish to the relevant Agent at its address
referred to in Section 9.2, the original or a certified copy of a receipt evidencing such payment. If any Borrower or PMI determines that no Taxes are payable in respect thereof, such Borrower or PMI shall, at the request of the relevant Agent,
furnish or cause the payor to furnish, such Agent and each Lender an opinion of counsel reasonably acceptable to such Agent stating that such payment is exempt from Taxes. 
  

 30 

 (f) Each Lender, on or prior to the date of its execution and delivery of this Agreement in the case of
each Initial Lender and on the date of the Assignment and Acceptance pursuant to which it becomes a Lender in the case of each other Lender, shall provide each of the Agents, PMI and each other Borrower with any form or certificate that is required
by any taxing authority (including, if applicable, two original Internal Revenue Service Forms W-9, W-8BEN or W-8ECI, as appropriate, or any successor or other form prescribed by the Internal Revenue Service), certifying that such Lender is exempt
from or entitled to a reduced rate of Home Jurisdiction Withholding Taxes on payments pursuant to this Agreement. Thereafter, each such Lender shall provide additional forms or certificates (i) to the extent a form or certificate previously
provided has become inaccurate or invalid or has otherwise ceased to be effective or (ii) as requested in writing by any Borrower, PMI or the relevant Agent. Unless the Borrowers, PMI and the Agents have received forms or other documents
satisfactory to them indicating that payments hereunder are not subject to Home Jurisdiction Withholding Taxes or are subject to Home Jurisdiction Withholding Taxes at a rate reduced by an applicable tax treaty, such Borrowers, PMI or Agents shall
withhold taxes from such payments at the applicable statutory rate in the case of payments to or for any Lender. 
 (g) Any Lender claiming
any additional amounts payable pursuant to this Section 2.19 agrees to use reasonable efforts (consistent with its internal policy and legal and regulatory restrictions) to select or change the jurisdiction of its Applicable Lending Office if
the making of such a selection or change would avoid the need for, or reduce the amount of, any such additional amounts that may thereafter accrue and would not, in the reasonable judgment of such Lender, be otherwise economically disadvantageous to
such Lender. 
 (h) No additional amounts will be payable pursuant to this Section 2.19 with respect to (i) any Home Jurisdiction
Withholding Taxes that would not have been payable had the Lender provided the relevant forms or other documents pursuant to Section 2.19(f); or (ii) in the case of an Assignment and Acceptance by a Lender to an Eligible Assignee, any Home
Jurisdiction Withholding Taxes that exceed the amount of such Home Jurisdiction Withholding Taxes that are imposed prior to such Assignment and Acceptance, unless such Assignment and Acceptance resulted from the demand of PMI. 
 (i) No additional amounts will be payable pursuant to this Section 2.19 with respect to any taxes imposed by the United States by means of
withholding tax on payments made by any Borrower to any Lender’s Applicable Lending Office or to any Agent, even if such taxes are imposed as a result of the treatment of payments made by a Borrower that is not organized under the laws of the
United States as having been made by a United States person for United States federal income tax purposes, including as a result of an election made to treat such Borrower as a disregarded entity for United States federal income tax purposes
(regardless of whether such election was made after such Borrower became a Borrower under this Agreement), if and to the extent such taxes were in effect 

  

 31 

 
and would have been applicable as of the date hereof to payments to be made by a United States person to such Lender’s Applicable Lending Office or to
such Agent (as the case may be). 
 (j) If any Lender or Agent, as the case may be, obtains a refund of any Tax for which payment has been
made pursuant to this Section 2.19, which refund in the good faith judgment of such Lender or Agent, as the case may be, (and without any obligation to disclose its tax records) is allocable to such payment made under this Section 2.19,
the amount of such refund (together with any interest received thereon and reduced by reasonable costs incurred in obtaining such refund) promptly shall be paid to the Borrower to the extent payment has been made in full by the Borrower pursuant to
this Section 2.19. 
  

	2.20.	Sharing of Payments, Etc. If any Lender shall obtain any payment (whether voluntary, involuntary, through the exercise of any right of set-off, or otherwise) on account of
the Pro Rata Advances owing to it (other than pursuant to Sections 2.16, 2.19 or 9.4(b)) in excess of its ratable share of payments on account of the Pro Rata Advances obtained by all the Lenders, such Lender shall forthwith purchase from the other
Lenders such participations in the Pro Rata Advances made by them as shall be necessary to cause such purchasing Lender to share the excess payment ratably with each of them; provided, however, that if all or any portion of such excess
payment is thereafter recovered from such purchasing Lender, such purchase from each Lender shall be rescinded and such Lender shall repay to the purchasing Lender the purchase price to the extent of such recovery together with an amount equal to
such Lender’s ratable share (according to the proportion of (i) the amount of such Lender’s required repayment to (ii) the total amount so recovered from the purchasing Lender) of any interest or other amount paid or payable by
the purchasing Lender in respect of the total amount so recovered, provided, further, that, so long as the obligations under this Agreement and the Notes shall not have been accelerated, any excess payment received by any Appropriate
Lender shall be shared on a pro rata basis only with other Appropriate Lenders. Each Borrower agrees that any Lender so purchasing a participation from another Lender pursuant to this Section 2.20 may, to the fullest extent permitted by law,
exercise all its rights of payment (including the right of set-off) with respect to such participation as fully as if such Lender were the direct creditor of such Borrower in the amount of such participation. 

  

	2.21.	Evidence of Debt. (a) Lender Records; Notes. Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness
of each Borrower to such Lender resulting from each Advance owing to such Lender from time to time, including the amounts of principal and interest payable and paid to such Lender from time to time hereunder in respect of Advances. Each Borrower
shall, upon notice by any Lender to such Borrower (with a copy of such notice to the Facility Agent) to the effect that a Revolving Credit Note or a Term Note is required or appropriate in order for such Lender to evidence (whether for purposes of
pledge, enforcement or otherwise) the Revolving Credit Advances or Term Advances owing to, or to be made by, such Lender, promptly execute and deliver to such Lender a Revolving Credit Note or a Term Note payable to the order of such Lender in a
principal amount up to the Revolving Commitment or Term Commitment of such Lender. 

  

 32 

 (b) Record of Borrowings, Payables and Payments. The Register maintained by the Facility Agent
pursuant to Section 9.7(d) shall include a control account, and a subsidiary account for each Lender, in which accounts (taken together) shall be recorded as follows: 
 (i) the date, amount and Facility of each Borrowing made hereunder, the Type of Advances comprising such Borrowing and the Interest Period applicable thereto; 
 (ii) the terms of each Assignment and Acceptance delivered to and accepted by it; 
 (iii) the amount of any principal or interest due and payable or to become due and payable from each Borrower to each Lender hereunder; and 
 (iv) the amount of any sum received by the Facility Agent from the Borrowers hereunder and each Lender’s share thereof. 
 (c) Evidence of Payment Obligations. Entries made in good faith by the Facility Agent in the Register pursuant to Section 2.21(b), and by each
Lender in its account or accounts pursuant to Section 2.21(a), shall be prima facie evidence of the amount of principal and interest due and payable or to become due and payable from each Borrower to, in the case of the Register, each
Lender and, in the case of such account or accounts, such Lender, under this Agreement, absent manifest error; provided, however, that the failure of the Facility Agent or such Lender to make an entry, or any finding that an entry is
incorrect, in the Register or such account or accounts shall not limit or otherwise affect the obligations of any Borrower under this Agreement. 
  

	2.22.	Use of Proceeds. The proceeds of the Revolving Credit Advances shall be available (and each Borrower agrees that it shall use such proceeds) for general corporate purposes of
PMI and its Subsidiaries, including, without limitation, commercial paper backstop. The proceeds of the Term Advances shall be used (and PMI agrees that it shall use such proceeds) for general corporate purposes of PMI and its Subsidiaries,
including without limitation, the refinancing of amounts outstanding under the Existing Term Facility. 

  

	3.	CONDITIONS TO EFFECTIVENESS AND LENDING 

  

	3.1.	Conditions Precedent to Effectiveness. This Agreement shall become effective on and as of the first date (the “Effective Date”) on which the following
conditions precedent have been satisfied: 

 (a) PMI shall have notified each Lender and the Facility Agent in writing as to the
proposed Effective Date. 
  

 33 

 (b) On the Effective Date, the following statements shall be true and the Facility Agent shall have
received for the account of each Lender a certificate signed by a duly authorized officer of PMI, dated the Effective Date, stating that: 
 (i) the representations and warranties contained in Section 4.1 are correct on and as of the Effective Date, and 
 (ii) no
event has occurred and is continuing that constitutes a Default or Event of Default. 
 (c) Prior to or simultaneously with the Effective
Date, PMI shall have satisfied all of its obligations under the Existing Term Facility including, without limitation, the payment of all loans, accrued interest and fees. 
 (d) The Facility Agent shall have received on or before the Effective Date the following, each dated such day, in form and substance satisfactory to the Facility Agent: 
 (i) Certified copies of the resolutions of the Board of Directors of PMI approving this Agreement, and of all documents evidencing other necessary
corporate action and governmental approvals, if any, with respect to this Agreement. 
 (ii) A certificate of the Secretary or an Assistant
Secretary of PMI certifying the names and true signatures of the officers of PMI authorized to sign this Agreement and the other documents to be delivered hereunder. 
 (iii) Favorable opinions of counsel (which may be in-house counsel) for PMI, substantially in the form of Exhibits E-1 and E-2 hereto. 
 (iv) A favorable opinion of Simpson Thacher & Bartlett LLP, counsel for the Facility Agent, substantially in the form of Exhibit G hereto. 
 (v) A certificate of the chief financial officer or treasurer of PMI certifying that as of 31 December 2006 (A) the aggregate amount of Debt
(excluding all Debt incurred in connection with leasing, sale and leaseback and structured finance transactions conducted in the ordinary course of business of PMCC Europe GmbH that is without recourse to the general credit or assets of PMI and its
Major Subsidiaries), payment of which is secured by any Lien referred to in clause (iii) of Section 5.2(a), does not exceed $400,000,000, and (B) the aggregate amount of Debt included in clause (A) of this subsection (v), payment
of which is secured by any Lien referred to in clause (iv) of Section 5.2(a), does not exceed $200,000,000. 
 (e) PMI shall have
paid all accrued fees and reasonable expenses of the Facility Agent and the Lenders with respect to this Agreement for which the Facility Agent shall have made reasonable demand in accordance with Section 9.4(a) on or prior to the Effective
Date. 
  

 34 

 (f) This Agreement shall have been executed by PMI, JPMEL, as Facility Agent and Swingline Agent, and
Citigroup Global Markets Limited, Credit Suisse, Cayman Islands Branch, Deutsche Bank Securities Inc., Goldman Sachs Credit Partners L.P., J.P. Morgan plc and Lehman Brothers Inc., as Mandated Lead Arrangers and Bookrunners, and the Facility Agent
shall have been notified by each Initial Lender that such Initial Lender has executed this Agreement. 
 The Facility Agent shall notify PMI and the Initial
Lenders of the date which is the Effective Date upon satisfaction of all of the conditions precedent set forth in this Section 3.1. For purposes of determining compliance with the conditions specified in this Section 3.1, each Lender shall
be deemed to have consented to, approved or accepted or to be satisfied with each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to the Lenders unless an officer of the Facility Agent
responsible for the transactions contemplated by this Agreement shall have received notice from such Lender prior to the date that PMI, by notice to the Lenders, designates as the proposed Effective Date, specifying its objection thereto.

  

	3.2.	Initial Advance to Each Designated Subsidiary. The obligation of each Lender to make an initial Advance to each Designated Subsidiary following any designation of such
Designated Subsidiary as a Borrower hereunder pursuant to Section 9.8 is subject to the receipt by the Facility Agent on or before the date of such initial Advance of each of the following, in form and substance satisfactory to the Facility
Agent, and dated such date, and in sufficient copies for each Lender: 

 (a) Certified copies of the resolutions of the Board of
Directors of such Designated Subsidiary (with a certified English translation if the original thereof is not in English) approving this Agreement, and of all documents evidencing other necessary corporate action and governmental approvals, if any,
with respect to this Agreement. 
 (b) A certificate of a proper officer of such Designated Subsidiary certifying the names and true
signatures of the officers of such Designated Subsidiary authorized to sign the Designation Agreement and the other documents to be delivered hereunder. 
 (c) A certificate signed by a duly authorized officer of the Designated Subsidiary, dated as of the date of such initial Advance, certifying that such Designated Subsidiary shall have obtained all governmental and
third party authorizations, consents, approvals (including exchange control approvals) and licenses required under applicable laws and regulations necessary for such Designated Subsidiary to execute and deliver the Designation Agreement and to
perform its obligations hereunder. 
 (d) The Designation Agreement of such Designated Subsidiary, substantially in the form of Exhibit D
hereto. 
 (e) A favorable opinion of counsel (which may be in-house counsel) to such Designated Subsidiary, dated the date of such initial
Advance, covering, to the extent customary and appropriate for the relevant jurisdiction, the opinions outlined on Exhibit F hereto. 
  

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 (f) Such other approvals, opinions or documents as any Lender, through the Facility Agent may reasonably
request. 
  

	3.3.	Conditions Precedent to Each Borrowing. The obligation of each Lender to make an Advance on the occasion of each Borrowing is subject to the conditions precedent that the
Effective Date shall have occurred and on the date of such Borrowing the following statements shall be true, and the acceptance by the Borrower of the proceeds of such Borrowing shall be a representation by such Borrower or by PMI, as the case may
be, that: 

 (a) the representations and warranties contained in Section 4.1 (except the representations set forth in the
last sentence of subsection (e) and in subsection (f) thereof (other than clause (i) thereof)) are correct on and as of the date of such Borrowing, before and after giving effect to such Borrowing and to the application of the
proceeds therefrom, as though made on and as of such date, and, if such Borrowing shall have been requested by a Designated Subsidiary, the representations and warranties of such Designated Subsidiary contained in its Designation Agreement are
correct on and as of the date of such Borrowing, before and after giving effect to such Borrowing and to the application of the proceeds therefrom, as though made on and as of such date; 
 (b) after giving effect to the application of the proceeds of all Borrowings on such date (together with any other resources of the Borrower applied
together therewith) no event has occurred and is continuing, or would result from such Borrowing, that constitutes a Default or Event of Default; and 
 (c) if such Borrowing is in an aggregate principal amount equal to or greater than $500,000,000, or the Equivalent in Euro thereof, and is being made in connection with any purchase of shares of such Borrower’s
or PMI’s capital stock or the capital stock of any other Person, or any purchase of all or substantially all of the assets of any Person (whether in one transaction or a series of transactions) or any transaction of the type referred to in
Section 5.2(b), the statement in (b) above shall also be true on a pro forma basis as if such transaction or purchase shall have been completed. 
  

	4.	REPRESENTATIONS AND WARRANTIES 

  

	4.1.	Representations and Warranties of PMI. PMI represents and warrants as follows: 

 (a) It is duly organized, validly existing and in good standing under the laws of its jurisdiction of organization. 
 (b) The execution, delivery and performance of this Agreement and the Notes to be delivered by it are within its corporate powers, have been duly authorized by all necessary corporate action, and do not contravene (i) its charter or
by-laws or (ii) in any material respect, any law, rule, regulation or order of any court or governmental agency or any contractual restriction binding on or affecting it. 
  

 36 

 (c) No authorization or approval or other action by, and no notice to or filing with, any governmental
authority or regulatory body is required for the due execution, delivery and performance by it of this Agreement or the Notes to be delivered by it. 
 (d) This Agreement is, and each of the Notes to be delivered by it when delivered hereunder will be, a legal, valid and binding obligation of PMI enforceable against PMI in accordance with its terms, subject to the effect of any applicable
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other laws affecting creditors’ rights generally and subject, as to enforceability, to general principles of equity (regardless of whether enforcement is sought in a
proceeding in equity or at law) and an implied covenant of good faith and fair dealing. 
 (e) The consolidated balance sheets of PMI and its
Subsidiaries as of 31 December 2006 and the consolidated statements of earnings of PMI and its Subsidiaries for the year then ended fairly present, in all material respects, the consolidated financial position of PMI and its Subsidiaries as at
such date and the consolidated results of the operations of PMI and its Subsidiaries for the year ended on such date, all in accordance with accounting principles generally accepted in the United States. Except as disclosed in a certificate
delivered to the Lenders, since 31 December 2006 there has been no material adverse change in such position or operations. 
 (f) There
is no pending or threatened action or proceeding affecting it or any of its Subsidiaries before any court, governmental agency or arbitrator (a “Proceeding”), (i) that purports to affect the legality, validity or enforceability
of this Agreement or (ii) except for Proceedings disclosed in the Registration Statement on Form 10 and any amendments thereto filed by PMI with the U.S. Securities and Exchange Commission prior to 4 December 2007 and, with respect to
Proceedings commenced after the date of such filing but prior to 4 December 2007, a certificate delivered to the Lenders, that may materially adversely affect the financial position or results of operations of PMI and its Subsidiaries taken as
a whole. 
 (g) It owns directly or indirectly 100% of the capital stock of each other Borrower. 
 (h) None of the proceeds of any Advance will be used, directly or indirectly, for the purpose of purchasing or carrying any Margin Stock or for the
purpose of reducing or retiring any indebtedness which was originally incurred to purchase or carry any Margin Stock or for any other purpose that would constitute the Advances as a “purpose credit” within the meaning of Regulation U and,
in each case, would constitute a violation of Regulation U. 
  

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	5.	COVENANTS OF PMI 

  

	5.1.	Affirmative Covenants. So long as any Advance shall remain unpaid or any Lender shall have any Commitment hereunder, PMI will: 

 (a) Compliance with Laws, Etc. Comply, and cause each Major Subsidiary to comply, in all material respects, with all applicable laws, rules,
regulations and orders (such compliance to include, without limitation, complying with ERISA and paying before the same become delinquent all taxes, assessments and governmental charges imposed upon it or upon its property except to the extent
contested in good faith), noncompliance with which would materially adversely affect the financial condition or operations of PMI and its Subsidiaries taken as a whole. 
 (b) Maintenance of Ratio of Consolidated EBITDA to Consolidated Interest Expense. Maintain a ratio of Consolidated EBITDA for the four most recent fiscal quarters of PMI to Consolidated Interest Expense for
such four most recent fiscal quarters of not less than 3.5 to 1.0. 
 (c) Reporting Requirements. (i) Prior to a Spin-Off, furnish
to the Lenders: 
  

	 	(A)	as soon as available and in any event within 90 days after the end of the second fiscal quarter of each fiscal year of PMI, an unaudited interim condensed consolidated balance sheet
of PMI and its Subsidiaries as of the end of such quarter and unaudited interim condensed consolidated statements of earnings of PMI and its Subsidiaries for the period commencing at the end of the previous fiscal year and ending with the end of
such quarter, certified by the chief financial officer of PMI; and 

  

	 	(B)	as soon as available and in any event within 120 days after the end of each fiscal year of PMI, a copy of the consolidated financial statements for such year for PMI and its
Subsidiaries, audited by PricewaterhouseCoopers LLP (or other independent auditors which, as of the date of this Agreement, are one of the “big four” accounting firms); or 

 (ii) in the event of a Spin-Off, furnish to the Lenders or make available on the internet at www.philipmorrisinternational.com (or any successor or
replacement website thereof), if such website includes an option to subscribe to a free service alerting subscribers by e-mail of new U.S. Securities and Exchange Commission filings, if available, or by similar electronic means: 
  

	 	(A)	 as soon as available and in any event within 60 days after the end of each of the first three quarters of each fiscal year of PMI, an unaudited interim condensed
consolidated balance sheet of PMI and its Subsidiaries as of the end of such quarter and unaudited 

  

 38 

	 	 
interim condensed consolidated statements of earnings of PMI and its Subsidiaries for the period commencing at the end of the previous fiscal year and ending
with the end of such quarter, certified by the chief financial officer of PMI; 

  

	 	(B)	as soon as available and in any event within 100 days after the end of each fiscal year of PMI, a copy of the consolidated financial statements for such year for PMI and its
Subsidiaries audited by PricewaterhouseCoopers LLP (or other independent auditors which, as of the date of this Agreement, are one of the “big four” accounting firms); and 

  

	 	(C)	all reports which PMI sends to any of its shareholders, and copies of all reports on Form 8-K (or any successor forms adopted by the U.S. Securities and Exchange Commission) which
PMI files with the Securities and Exchange Commission; 

 (iii) as soon as possible and in any event within five days after the
occurrence of each Event of Default and each Default, continuing on the date of such statement, a statement of the chief financial officer or treasurer of PMI setting forth details of such Event of Default or Default and the action which PMI has
taken and proposes to take with respect thereto; 
 (iv) within 60 days after the end of each fiscal quarter of PMI, a statement of the chief
financial officer or treasurer of PMI certifying compliance with the requirements of Section 5.1(b) and setting forth the relevant calculations; and 
 (v) such other historical information respecting the condition or operations, financial or otherwise, of PMI or any Major Subsidiary as any Lender through the Facility Agent may from time to time reasonably request.

  

	5.2.	Negative Covenants. So long as any Advance shall remain unpaid or any Lender shall have any Commitment hereunder, PMI will not: 

 (a) Liens, Etc. Create or suffer to exist, or permit any Major Subsidiary to create or suffer to exist, any lien, security interest or other charge
or encumbrance (other than operating leases and licensed intellectual property), or any other type of preferential arrangement (“Liens”), upon or with respect to any of its properties, whether now owned or hereafter acquired, or
assign, or permit any Major Subsidiary to assign, any right to receive income, in each case to secure or provide for the payment of any Debt of any Person, other than: 
 (i) Liens upon or in property acquired or held by it or any Major Subsidiary in the ordinary course of business to secure the purchase price of such property or to secure indebtedness incurred solely for the purpose
of financing the acquisition of such property; 
  

 39 

 (ii) Liens existing on property at the time of its acquisition (other than any such lien or security
interest created in contemplation of such acquisition); 
 (iii) Liens existing on the date hereof securing Debt; 
 (iv) Liens on property financed through the issuance of industrial revenue bonds in favor of the holders of such bonds or any agent or trustee therefor;

 (v) Liens existing on property of any Person acquired by PMI or any Major Subsidiary; 
 (vi) Liens securing Debt in an aggregate amount not in excess of 15% of Consolidated Tangible Assets; 
 (vii) Liens upon or with respect to “margin stock” as that term is defined in Regulation U; 
 (viii) Liens in favor of PMI or any Major Subsidiary; 
 (ix) Liens in connection with leasing, sale and leaseback and structured finance transactions conducted in the ordinary course of business of PMCC Europe GmbH, provided that any such Liens that secure the payment of Debt are without
recourse to the general credit or assets of PMI and its Major Subsidiaries; 
 (x) precautionary Liens provided by PMI or any Major Subsidiary
in connection with the sale, assignment, transfer or other disposition of assets by PMI or such Major Subsidiary which transaction is determined by the Board of Directors of PMI or such Major Subsidiary to constitute a “sale” under
accounting principles generally accepted in the United States; or 
 (xi) any extension, renewal or replacement of the foregoing,
provided that (A) such Lien does not extend to any additional assets (other than a substitution of like assets), and (B) the amount of Debt secured by any such Lien is not increased. 
 (b) Mergers, Etc. Consolidate with or merge into, or convey or transfer its properties and assets substantially as an entirety to, any Person, or
permit any Subsidiary directly or indirectly owned by it to do so, unless, immediately after giving effect thereto, no Default or Event of Default would exist and, in the case of any merger or consolidation to which PMI is a party, the surviving
corporation is PMI or was a Subsidiary of PMI immediately prior to such merger or consolidation, which is organized and existing under the laws of the United States of America or any State thereof, or the District of Columbia. The surviving
corporation of any merger or consolidation involving PMI or any other Borrower shall assume all of PMI’s or such Borrower’s obligations under this Agreement (including without limitation with respect to PMI’s obligations, the
covenants set forth in Article 5) by the execution and delivery of an instrument in form and substance satisfactory to the Required Lenders. 
  

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	6.	EVENTS OF DEFAULT 

  

	6.1.	Events of Default. Each of the following events (each an “Event of Default”) shall constitute an Event of Default: 

 (a) Any Borrower or PMI shall fail to pay any principal of any Pro Rata Advance when the same becomes due and payable; or any Borrower or PMI shall fail
to pay any principal of any Swingline Advance within three Business Days after the same becomes due and payable; or any Borrower shall fail to pay interest on any Advance, or PMI shall fail to pay any fees payable under Section 2.13, within ten
days after the same becomes due and payable; or 
 (b) Any representation or warranty made or deemed to have been made by any Borrower or PMI
herein or by any Borrower or PMI (or any of their respective officers) in connection with this Agreement shall prove to have been incorrect in any material respect when made or deemed to have been made; or 
 (c) Any Borrower or PMI shall fail to perform or observe (i) any term, covenant or agreement contained in Section 5.1(b) or 5.2(b),
(ii) any term, covenant or agreement contained in Section 5.2(a) if such failure shall remain unremedied for 15 days after written notice thereof shall have been given to PMI by the Facility Agent or any Lender or (iii) any other
term, covenant or agreement contained in this Agreement on its part to be performed or observed if such failure shall remain unremedied for 30 days after written notice thereof shall have been given to PMI by the Facility Agent or any Lender; or

 (d) Any Borrower or PMI or any Major Subsidiary shall fail to pay any principal of or premium or interest on any Debt which is outstanding
in a principal amount of at least $100,000,000 in the aggregate (but excluding Debt arising under this Agreement) of such Borrower or PMI or such Major Subsidiary (as the case may be), when the same becomes due and payable (whether by scheduled
maturity, required prepayment, acceleration, demand or otherwise), and such failure shall continue after the applicable grace period, if any, specified in the agreement or instrument relating to such Debt unless adequate provision for any such
payment has been made in form and substance satisfactory to the Required Lenders; or any Debt of any Borrower or PMI or any Major Subsidiary which is outstanding in a principal amount of at least $100,000,000 in the aggregate (but excluding Debt
arising under this Agreement) shall be declared to be due and payable, or required to be prepaid (other than by a scheduled required prepayment), redeemed, purchased or defeased, or an offer to prepay, redeem, purchase or defease such Debt shall be
required to be made, in each case prior to the stated maturity thereof unless adequate provision for the payment of such Debt has been made in form and substance satisfactory to the Required Lenders; or 
 (e) Any Borrower or PMI or any Major Subsidiary shall generally not pay its debts as such debts become due, or shall admit in writing its inability to pay
its debts generally, or shall make a general assignment for the benefit of creditors; or any proceeding shall be 

  

 41 

 
instituted by or against any Borrower or PMI or any Major Subsidiary seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation, winding up,
reorganization, arrangement, adjustment, protection, relief, or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking the entry of an order for relief or the appointment of
a receiver, trustee, or other similar official for it or for any substantial part of its property, and, in the case of any such proceeding instituted against it (but not instituted by it), either such proceeding shall remain undismissed or unstayed
for a period of 60 days or any of the actions sought in such proceeding (including, without limitation, the entry of an order for relief against it or the appointment of a receiver, trustee, custodian or other similar official for it or for any of
its property constituting a substantial part of the property of PMI and its Subsidiaries taken as a whole) shall occur; or any Borrower or PMI or any Major Subsidiary shall take any corporate action to authorize any of the actions set forth above in
this subsection (e); or 
 (f) Any judgment or order for the payment of money in excess of $100,000,000 shall be rendered against any Borrower
or PMI or any Major Subsidiary and there shall be any period of 60 consecutive days during which a stay of enforcement of such unsatisfied judgment or order, by reason of a pending appeal or otherwise, shall not be in effect; provided that
such 60-day stay period shall be extended for a period not to exceed an additional 120 days if (i) PMI, such Borrower or such Major Subsidiary is contesting such judgment or enforcement of such judgment in good faith, unless, with respect only
to judgments or orders rendered outside the United States, such action is not reasonably required to protect its respective assets from levy or garnishment, and (ii) no assets with a fair market value in excess of $100,000,000 of PMI, such
Borrower or such Major Subsidiary have been levied upon or garnished to satisfy such judgment; provided, further, that such 60-day stay period shall be further extended for any judgment or order rendered outside the United States until
such time as the conditions in clauses (i) or (ii) are no longer satisfied; or 
 (g) Any Borrower or any ERISA Affiliate shall
incur, or shall be reasonably likely to incur, liability in excess of $500,000,000 in the aggregate as a result of one or more of the following: (i) the occurrence of any ERISA Event; (ii) the partial or complete withdrawal of any Borrower
or any ERISA Affiliate from a Multiemployer Plan; or (iii) the reorganization or termination of a Multiemployer Plan; provided, however, that no Default or Event of Default under this Section 6.1(g) shall be deemed to have
occurred if the Borrower or any ERISA Affiliate shall have made arrangements satisfactory to the PBGC or the Required Lenders to discharge or otherwise satisfy such liability (including the posting of a bond or other security); or 
 (h) So long as any Subsidiary of PMI is a Designated Subsidiary, the guaranty provided by PMI under Article 8 hereof shall for any reason cease to be
valid and binding on PMI or PMI shall so state in writing. 
  

 42 

	6.2.	Lenders’ Rights upon Event of Default. If an Event of Default occurs or is continuing, then the Facility Agent shall at the request, or may with the consent, of the
Required Lenders, by notice to PMI and the Borrowers: 

 (a) declare the obligation of each Lender to make further Advances to
be terminated, whereupon the same shall forthwith terminate, and 
 (b) declare all the Advances then outstanding, all interest thereon and
all other amounts payable under this Agreement to be forthwith due and payable, whereupon the Advances then outstanding, all such interest and all such amounts shall become and be forthwith due and payable, without presentment, demand, protest or
further notice of any kind, all of which are hereby expressly waived by the Borrowers; 
 provided, however, that in the event of an actual or
deemed entry of an order for relief with respect to any Borrower under the Federal Bankruptcy Code, (i) the obligation of each Lender to make Advances shall automatically be terminated and (ii) the Advances then outstanding, all such
interest and all such amounts shall automatically become and be due and payable, without presentment, demand, protest or any notice of any kind, all of which are hereby expressly waived by the Borrowers. 
  

	7.	THE AGENTS 

  

	7.1.	Authorization and Action. Each Lender (in its capacities as a Revolving Credit Lender, Swingline Lender and a Term Lender, as applicable) hereby appoints and authorizes each
Agent to take such action as agent on its behalf and to exercise such powers and discretion under this Agreement as are delegated to such Agent by the terms hereof, together with such powers and discretion as are reasonably incidental thereto. As to
any matters not expressly provided for by this Agreement (including, without limitation, enforcement or collection of the Notes), no Agent shall be required to exercise any discretion or take any action, but shall be required to act or to refrain
from acting (and shall be fully protected in so acting or refraining from acting) upon the instructions of the Required Lenders, and such instructions shall be binding upon all Lenders and all holders of Notes; provided, however, that
no Agent shall be required to take any action that exposes it to personal liability or that is contrary to this Agreement or applicable law. Each Agent agrees to give to each Lender prompt notice of each notice given to it by PMI or any Borrower as
required by the terms of this Agreement or at the request of PMI or such Borrower, and any notice provided pursuant to Section 5.1(c)(iii). JPMEL, as Facility Agent, may execute any of its duties under this Agreement by or through its
affiliate, JPMorgan Chase Bank, N.A. 

  

	7.2.	Agents’ Reliance, Etc. Neither any Agent nor any of its directors, officers, agents or employees shall be liable for any action taken or omitted to be taken by it or
them under or in connection with this Agreement, except for its or their own gross negligence or willful misconduct. Without limitation of the generality of the foregoing, each Agent: 

 (a) may treat the Lender that made any Advance as the holder of the Debt resulting therefrom until, in the case of the Facility Agent, the Facility Agent
receives and accepts an Assignment and Acceptance entered into by such Lender, as assignor, and an Eligible Assignee, as assignee, or, in the case of the Swingline Agent, such Agent has received notice from the Facility Agent that it has received
and accepted such Assignment and Acceptance, in each case as provided in Section 9.7; 
  

 43 

 (b) may consult with legal counsel (including counsel for PMI or any Borrower), independent public
accountants and other experts selected by it and shall not be liable for any action taken or omitted to be taken in good faith by it in accordance with the advice of such counsel, accountants or experts; 
 (c) makes no warranty or representation to any Lender and shall not be responsible to any Lender for any statements, warranties or representations
(whether written or oral) made in or in connection with this Agreement; 
 (d) shall not have any duty to ascertain or to inquire as to the
performance or observance of any of the terms, covenants or conditions of this Agreement on the part of PMI or any Borrower or to inspect the property (including the books and records) of PMI or such Borrower; 
 (e) shall not be responsible to any Lender for the due execution, legality, validity, enforceability, genuineness, sufficiency or value of this Agreement
or any other instrument or document furnished pursuant hereto; and 
 (f) shall incur no liability under or in respect of this Agreement by
acting upon any notice, consent, certificate or other instrument or writing (which may be by facsimile) believed by it to be genuine and signed or sent by the proper party or parties. 
  

	7.3.	JPMEL and Affiliates. With respect to its Commitment and the Advances made by it, JPMEL shall have the same rights and powers under this Agreement as any other Lender and may
exercise the same as though it were not an Agent; and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated, include JPMEL in its individual capacity. JPMEL and its affiliates may accept deposits from, lend
money to, act as trustee under indentures of, accept investment banking engagements from and generally engage in any kind of business with, PMI, any Borrower, any of its Subsidiaries and any Person who may do business with or own securities of PMI,
any Borrower or any such Subsidiary, all as if JPMEL was not an Agent and without any duty to account therefor to the Lenders. 

  

	7.4.	 Lender Credit Decision. Each Lender acknowledges that it has, independently and without reliance upon any Agent or any Mandated Lead Arranger and Bookrunner,
or any other Lender and based on the financial statements referred to in Section 4.1 and such other documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each Lender also
acknowledges that it will, independently and without reliance upon any Agent, any Mandated Lead Arranger 

  

 44 

	 	 
and Bookrunner, or any other Lender and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit
decisions in taking or not taking action under this Agreement. 

  

	7.5.	Indemnification. (a) The Lenders agree to indemnify the Facility Agent (to the extent not reimbursed by PMI or the Borrowers), from and against such Lender’s
ratable share (determined as provided below) of any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever that may be imposed on, incurred by, or
asserted against the Facility Agent in any way relating to or arising out of this Agreement or any action taken or omitted by the Facility Agent under this Agreement (collectively, the “Indemnified Costs”), provided that no
Lender shall be liable for any portion of the Indemnified Costs resulting from the Facility Agent’s gross negligence or willful misconduct. Without limitation of the foregoing, each Lender agrees to reimburse the Facility Agent promptly upon
demand for its ratable share of any out-of-pocket expenses (including counsel fees) incurred by the Facility Agent in connection with the preparation, execution, delivery, administration, modification, amendment or enforcement (whether through
negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, this Agreement, to the extent that the Facility Agent is not reimbursed for such expenses by PMI or the Borrowers. In the case of any
investigation, litigation or proceeding giving rise to any Indemnified Costs, this Section 7.5 applies whether any such investigation, litigation or proceeding is brought by the Facility Agent, any Lender or a third party. For purposes of this
Section 7.5(a), the Lenders’ respective ratable shares of any amount shall be determined, at any time, according to their respective aggregate Term Commitments and Revolving Credit Commitments at such time. 

 (b) The Revolving Credit Lenders agree to indemnify the Swingline Agent (to the extent not reimbursed by PMI or the Borrowers), from and against such
Lender’s ratable share (determined according to their respective Revolving Credit Commitments at such time) of any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any
kind or nature whatsoever that may be imposed on, incurred by, or asserted against the Swingline Agent in any way relating to or arising out of this Agreement or any action taken or omitted by the Swingline Agent under this Agreement,
provided that no Lender shall be liable for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting from the Swingline Agent’s gross negligence or
willful misconduct. Without limitation of the foregoing, each Revolving Credit Lender agrees to reimburse the Swingline Agent promptly upon demand for its ratable share of any out-of-pocket expenses (including counsel fees) payable by the Borrowers
under Section 9.4, to the extent that the Swingline Agent is not reimbursed for such expenses by PMI or the Borrowers. In the case of any investigation, litigation or proceeding giving rise to any indemnification hereunder, this
Section 7.5 applies whether any such investigation, litigation or proceeding is brought by the Swingline Agent, any Lender or a third party. 
  

 45 

	7.6.	Successor Agents. Any Agent may resign at any time by giving written notice thereof to the Lenders and PMI and may be removed at any time with or without cause by the
Required Lenders. Upon any such resignation or removal, the Required Lenders shall have the right to appoint a successor Agent. If no successor Agent shall have been so appointed by the Required Lenders, and shall have accepted such appointment,
within 30 days after the retiring Agent’s giving of notice of resignation or the Required Lenders’ removal of the retiring Agent, then the retiring Agent may, on behalf of the Lenders, appoint a successor Agent, which shall be a commercial
bank organized under the laws of the United States of America or of any State thereof and having a combined capital and surplus of at least $500,000,000. Upon the acceptance of any appointment as Agent hereunder by a successor Agent, such successor
Agent shall thereupon succeed to and become vested with all the rights, powers, discretion, privileges and duties of the retiring Agent, and the retiring Agent shall be discharged from its duties and obligations under this Agreement. After any
retiring Agent’s resignation or removal hereunder as Agent, the provisions of this Article 7 shall inure to its benefit as to any actions taken or omitted to be taken by it while it was an Agent under this Agreement. 

 

	7.7.	Mandated Lead Arrangers and Bookrunners. Certain entities have been designated as Mandated Lead Arrangers and Bookrunners, under this Agreement, but the use of such titles
does not impose on any of them any duties or obligations greater than those of any other Lender. 

  

	8.	GUARANTY 

  

	8.1.	Guaranty. PMI hereby unconditionally and irrevocably guarantees (the undertaking of PMI contained in this Article 8 being the “Guaranty”) the punctual
payment when due, whether at stated maturity, by acceleration or otherwise, of all obligations of each Borrower now or hereafter existing under this Agreement, whether for principal, interest, fees, expenses or otherwise (such obligations being the
“Obligations”), and any and all expenses (including counsel fees and expenses) incurred by the Facility Agent or the Lenders in enforcing any rights under the Guaranty. 

  

	8.2.	Guaranty Absolute. PMI guarantees that the Obligations will be paid strictly in accordance with the terms of this Agreement, regardless of any law, regulation or order now or
hereafter in effect in any jurisdiction affecting any of such terms or the rights of the Facility Agent or the Lenders with respect thereto. The liability of PMI under this Guaranty shall be absolute and unconditional irrespective of:

 (a) any lack of validity, enforceability or genuineness of any provision of this Agreement or any other agreement or
instrument relating thereto; 
 (b) any change in the time, manner or place of payment of, or in any other term of, all or any of the
Obligations, or any other amendment or waiver of or any consent to departure from this Agreement; 
  

 46 

 (c) any exchange, release or non-perfection of any collateral, or any release or amendment or waiver of
or consent to departure from any other guaranty, for all or any of the Obligations; or 
 (d) any other circumstance which might otherwise
constitute a defense available to, or a discharge of, a Borrower or PMI. 
 This Guaranty shall continue to be effective or be reinstated, as
the case may be, if at any time any payment of any of the Obligations is rescinded or must otherwise be returned by the Facility Agent or any Lender upon the insolvency, bankruptcy or reorganization of a Borrower or otherwise, all as though such
payment had not been made. 
  

	8.3.	Waivers. (a) PMI hereby waives promptness, diligence, notice of acceptance and any other notice with respect to any of the Obligations and this Guaranty and any
requirement that the Facility Agent or any Lender protect, secure, perfect or insure any security interest or lien or any property subject thereto or exhaust any right or take any action against a Borrower or any other Person or any collateral.

 (b) PMI hereby irrevocably waives any claims or other rights that it may now or hereafter acquire against any Borrower that
arise from the existence, payment, performance or enforcement of PMI’s obligations under this Guaranty or this Agreement, including, without limitation, any right of subrogation, reimbursement, exoneration, contribution or indemnification and
any right to participate in any claim or remedy of the Facility Agent or any Lender against such Borrower or any collateral, whether or not such claim, remedy or right arises in equity or under contract, statute or common law, including, without
limitation, the right to take or receive from such Borrower, directly or indirectly, in cash or other property or by set-off or in any other manner, payment or security on account of such claim, remedy or right. If any amount shall be paid to PMI in
violation of the preceding sentence at any time prior to the later of the cash payment in full of the Obligations and all other amounts payable under this Guaranty and the Termination Date, such amount shall be held in trust for the benefit of the
Facility Agent and the Lenders and shall forthwith be paid to the Facility Agent to be credited and applied to the Obligations and all other amounts payable under this Guaranty, whether matured or unmatured, in accordance with the terms of this
Agreement and this Guaranty, or to be held as collateral for any Obligations or other amounts payable under this Guaranty thereafter arising. PMI acknowledges that it will receive direct and indirect benefits from the financing arrangements
contemplated by this Agreement and this Guaranty and that the waiver set forth in this Section 8.3(b) is knowingly made in contemplation of such benefits. 
  

	8.4.	Continuing Guaranty. This Guaranty is a continuing guaranty and shall (a) remain in full force and effect until payment in full (after the Termination Date) of the
Obligations and all other amounts payable under this Guaranty, (b) be binding upon PMI, its successors and assigns, and (c) inure to the benefit of and be enforceable by the Lenders, the Facility Agent and their respective successors,
transferees and assigns. 

  

 47 

	9.	MISCELLANEOUS 

  

	9.1.	Amendments, Etc. No amendment or waiver of any provision of this Agreement, nor consent to any departure by any Borrower or PMI therefrom, shall in any event be effective
unless the same shall be in writing and signed by the Required Lenders or if such amendment, waiver or consent relates solely to the Revolving Credit Lenders, the Swingline Lenders or the Term Lenders, respectively, the Lenders holding 50.1% of the
aggregate Revolving Credit Commitments, Swingline Commitments or Term Commitments, respectively, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; provided,
however, that no amendment, waiver or consent shall, unless in writing and signed by all the Lenders affected thereby, do any of the following: (a) waive any of the conditions specified in Sections 3.1 and 3.2, (b) increase the
Commitments of the Lenders or subject the Lenders to any additional obligations, (c) reduce the principal of, or interest on, the Advances or any fees or other amounts payable hereunder, (d) postpone any date fixed for any payment of
principal of, or interest on, the Advances or any fees or other amounts payable hereunder, (e) change the percentage of the Commitments, or the number of Lenders, that shall be required for the Lenders or any of them to take any action
hereunder, (f) release PMI from any of its obligations under Article 8 or (g) amend this Section 9.1; and provided further that no amendment, waiver or consent shall, unless in writing and signed by the Facility Agent in
addition to the Lenders required above to take such action, affect the rights or duties of the Facility Agent under this Agreement or any Advance. 

  

	9.2.	Notices, Etc. (a) Addresses. All notices and other communications provided for hereunder shall be in writing (including facsimile communication) and mailed,
telecopied, or delivered, as follows: 

 if to any Borrower or to PMI, as guarantor: 
 Philip Morris International Inc. 
 120 Park
Avenue 
 New York, New York 10017 
 Attention: Secretary 
 Fax number: 917-663-5372 
 and 
 Philip Morris International Management S.A. 
 Avenue de Cour 107 
 1001 Lausanne 

Switzerland 
 Attention: Treasurer

 Fax number: +41-21-242-4771; 
 and 
  

 48 

 Philip Morris Finance S.A. 
 Avenue de Cour 107 
 1001 Lausanne 
 Switzerland 
 Attention: Controller

 Facsmile: +41-58-242-4771; 
 with a copy to (until the Spin-Off has occurred): 
 Altria Corporate Services, Inc. 
 120 Park Avenue 
 New York, New York 10017

 Attention: Treasury Department - Debt Administration 
 Fax number: (914) 272-0420; 
 if to any Initial Lender, at its Applicable Lending Office specified
opposite its name on Schedule I hereto; 
 if to any other Lender, at its Applicable Lending Office specified in the Assignment and Acceptance
pursuant to which it became a Lender; 
 if to JPMEL, as Facility Agent and Swingline Agent: 
 J.P. Morgan Europe Limited 
 EMEA Loan and
Agency Department 
 125 London Wall 
 London EC2Y 5AJ 
 Attention: Loans Agency 
 Facsimile: +44 (0) 207 77 2360 
 as to any Borrower, PMI or the Facility Agent at such other address as shall be
designated by such party in a written notice to the other parties and, as to each other party, at such other address as shall be designated by such party in a written notice to PMI and the Facility Agent. 
 (b) Effectiveness of Notices. All such notices and communications shall, when mailed or telecopied, be effective when deposited in the mail or telecopied,
respectively, except that notices and communications to the Facility Agent pursuant to Article 2, 3 or 7 shall not be effective until received by the Facility Agent. Delivery by facsimile of an executed counterpart of any amendment or waiver of any
provision of this Agreement or of any Exhibit hereto to be executed and delivered hereunder shall be effective as delivery of a manually executed counterpart thereof. 
  

	9.3.	No Waiver; Remedies. No failure on the part of any Lender or the Facility Agent to exercise, and no delay in exercising, any right hereunder or under any Note shall operate
as a waiver thereof; nor shall any single or partial exercise of any such right preclude any other or further exercise thereof or the exercise of any other right. The remedies herein provided are cumulative and not exclusive of any remedies provided
by law. 

  

 49 

	9.4.	Costs and Expenses. (a) Facility Agent; Enforcement. PMI agrees to pay on demand all reasonable costs and expenses in connection with the preparation, execution,
delivery, administration (excluding any cost or expenses for administration related to the overhead of the Facility Agent), modification and amendment of this Agreement and the documents to be delivered hereunder, including, without limitation, the
reasonable fees and out-of-pocket expenses of counsel for the Facility Agent with respect thereto and with respect to advising the Facility Agent as to its rights and responsibilities under this Agreement, and all costs and expenses of the Lenders
and the Facility Agent, if any (including, without limitation, reasonable counsel fees and expenses of the Lenders and the Facility Agent), in connection with the enforcement (whether through negotiations, legal proceedings or otherwise) of this
Agreement and the other documents to be delivered hereunder. 

 (b) Prepayment of Advances. If any payment of principal
of Advance is made other than on the last day of the Interest Period for such Advance or at its maturity, as a result of a payment pursuant to Section 2.12, acceleration of the maturity of the Advances pursuant to Section 6.2, an
assignment made as a result of a demand by PMI pursuant to Section 9.7(a) or for any other reason, PMI shall, upon demand by any Lender (with a copy of such demand to the Facility Agent or the Swingline Agent, as applicable), pay to the
Facility Agent or the Swingline Agent, as applicable, for the account of such Lender any amounts required to compensate such Lender for any additional losses, costs or expenses which it may reasonably incur as a result of such payment, including,
without limitation, any loss (excluding loss of anticipated profits), cost or expense incurred by reason of the liquidation or reemployment of deposits or other funds acquired by any Lender to fund or maintain such Advance. Without prejudice to the
survival of any other agreement of any Borrower or PMI hereunder, the agreements and obligations of each Borrower and PMI contained in Section 2.4(c), 2.10(c), 2.16, 2.19, and this Section 9.4(b) shall survive the payment in full of
principal and interest hereunder. 
 (c) Indemnification. Each Borrower and PMI jointly and severally agree to indemnify and hold
harmless the Facility Agent and each Lender and each of their respective affiliates, control persons, directors, officers, employees, attorneys and agents (each, an “Indemnified Party”) from and against any and all claims, damages,
losses, liabilities and expenses (including, without limitation, reasonable fees and disbursements of counsel) which may be incurred by or asserted against any Indemnified Party, in each case in connection with or arising out of, or in connection
with the preparation for or defense of, any investigation, litigation, or proceeding (i) related to any transaction or proposed transaction (whether or not consummated) in which any proceeds of any Borrowing are applied or proposed to be
applied, directly or indirectly, by any Borrower, whether or not such Indemnified Party is a party to such transaction or (ii) related to any Borrower’s or PMI’s entering into this Agreement, or to any actions or omissions of any
Borrower or PMI, any of their respective Subsidiaries or affiliates or any of its or their respective officers, directors, employees or agents in connection therewith, in each case 

  

 50 

 
whether or not an Indemnified Party is a party thereto and whether or not such investigation, litigation or proceeding is brought by PMI or any Borrower or
any other Person; provided, however, that neither any Borrower nor PMI shall be required to indemnify any such Indemnified Party from or against any portion of such claims, damages, losses, liabilities or expenses that is found in a
final, non-appealable judgment by a court of competent jurisdiction to have resulted from the gross negligence or willful misconduct of such Indemnified Party. 
  

	9.5.	Right of Set-Off. Upon (i) the occurrence and during the continuance of any Event of Default and (ii) the making of the request or the granting of the consent
specified by Section 6.2 to authorize the Facility Agent to declare the Advances due and payable pursuant to the provisions of Section 6.2, each Lender is hereby authorized at any time and from time to time, to the fullest extent permitted
by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other indebtedness at any time owing by such Lender to or for the credit or the account of PMI or any Borrower against
any and all of the obligations of any Borrower or PMI now or hereafter existing under this Agreement, whether or not such Lender shall have made any demand under this Agreement and although such obligations may be unmatured. Each Lender shall
promptly notify the appropriate Borrower or PMI, as the case may be, after any such set-off and application, provided that the failure to give such notice shall not affect the validity of such set-off and application. The rights of each
Lender and its affiliates under this Section 9.5 are in addition to other rights and remedies (including, without limitation, other rights of set-off) that such Lender and its affiliates may have. 

  

	9.6.	Binding Effect. This Agreement shall be binding upon and inure to the benefit of PMI, the Facility Agent, the Swingline Agent, and each Lender and their respective successors
and assigns, except that neither any Borrower nor PMI shall have the right to assign its rights hereunder or any interest herein without the prior written consent of the Lenders. 

  

	9.7.	Assignments and Participations. (a) Assignment of Lender Obligations. Each Lender may and, if demanded by PMI upon at least five Business Days’ notice to
such Lender and the Facility Agent, will assign to one or more Persons all or a portion of its rights and obligations under this Agreement (including, without limitation, all or a portion of its Commitments and the Advances owing to it),
subject to the following: 

 (i) each such assignment shall be of a constant, and not a varying, percentage of all rights
and obligations under one or more Facilities under this Agreement (it being understood that any assignment under a Revolving Credit Facility shall include a proportionate assignment under the related Swingline Facility, as applicable); 

(ii) the amount of the Commitment of the assigning Lender being assigned pursuant to each such assignment (determined as of the date of the Assignment
and Acceptance with respect to such assignment) shall in no event be less than €10,000,000 for Term Commitments and $10,000,000 for Revolving Credit Commitments (subject, in each case, to reduction at the sole discretion of PMI) and shall be an
integral multiple of €1,000,000 or $1,000,000, respectively; 
  

 51 

 (iii) each such assignment shall be to an Eligible Assignee, provided, however that an
assignment to a bank or other financial institution that is not a Qualifying Bank shall not be effective without the written approval of PMI, which approval shall be notified to the Facility Agent; 
 (iv) each such assignment made as a result of a demand by PMI pursuant to this Section 9.7(a) shall be arranged by PMI after consultation with the
Facility Agent and shall be either an assignment of all of the rights and obligations of the assigning Lender under this Agreement or an assignment of a portion of such rights and obligations made concurrently with another such assignment or other
such assignments which together cover all of the rights and obligations of the assigning Lender under this Agreement; 
 (v) no Lender shall
be obligated to make any such assignment as a result of a demand by PMI pursuant to this Section 9.7(a) unless and until such Lender shall have received one or more payments from either the Borrowers to which it has outstanding Advances or one
or more Eligible Assignees in an aggregate amount at least equal to the aggregate outstanding principal amount of the Advances owing to such Lender, together with accrued interest thereon to the date of payment of such principal amount and all other
amounts payable to such Lender under this Agreement; and 
 (vi) the parties to each such assignment shall execute and the assigning Lender
shall, not less than five Business Days prior to the effectiveness of any Assignment and Acceptance, deliver to the Facility Agent which shall give prompt notice thereof to PMI by facsimile, for the Facility Agent’s acceptance and recording in
the Register, an Assignment and Acceptance, together with a processing and recordation fee of €1,500 for Term Commitments and $2,000 for Revolving Credit Commitments; provided that, if such assignment is made as a result of a demand by
PMI under this Section 9.7(a), PMI shall pay or cause to be paid such €1,500 or $2,000 fee, as the case may be. 
 Upon such execution, delivery,
acceptance and recording, from and after the effective date specified in each Assignment and Acceptance, (x) the assignee thereunder shall be a party hereto and, to the extent that rights and obligations hereunder have been assigned to it
pursuant to such Assignment and Acceptance, have the rights and obligations of a Lender hereunder and (y) the assigning Lender thereunder shall, to the extent that rights and obligations hereunder have been assigned by it pursuant to such
Assignment and Acceptance, relinquish its rights (other than those provided under Section 9.4) and be released from its obligations under this Agreement (and, in the case of an Assignment and Acceptance covering all or the remaining portion of
an assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto), other than Section 9.12. 
  

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 (b) Assignment and Acceptance. By executing and delivering an Assignment and Acceptance, the
assigning Lender thereunder and the assignee thereunder confirm to and agree with each other and the other parties hereto as follows: (i) other than as provided in such Assignment and Acceptance, such assigning Lender makes no representation or
warranty and assumes no responsibility with respect to any statements, warranties or representations made in or in connection with this Agreement or the execution, legality, validity, enforceability, genuineness, sufficiency or value of this
Agreement or any other instrument or document furnished pursuant hereto; (ii) such assigning Lender makes no representation or warranty and assumes no responsibility with respect to the financial condition of any Borrower or PMI or the
performance or observance by any Borrower or PMI of any of its obligations under this Agreement or any other instrument or document furnished pursuant hereto; (iii) such assignee confirms that it has received a copy of this Agreement, together
with copies of the financial statements referred to in Section 4.1 and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into such Assignment and Acceptance; (iv) such
assignee will, independently and without reliance upon the Facility Agent, such assigning Lender or any other Lender and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in
taking or not taking action under this Agreement; (v) such assignee confirms that it is an Eligible Assignee; (vi) such assignee represents that (A) the source of any funds it is using to acquire the assigning Lender’s interest
or to make any Advance is not and will not be plan assets as defined under the regulations of the Department of Labor of any Plan subject to Title I of ERISA or Section 4975 of the Code or (B) the assignment or Advance is not and will not
be a non-exempt prohibited transaction as defined in Section 406 of ERISA; (vii) such assignee appoints and authorizes the Facility Agent to take such action as agent on its behalf and to exercise such powers and discretion under this
Agreement as are delegated to the Facility Agent by the terms hereof, together with such powers and discretion as are reasonably incidental thereto; and (viii) such assignee agrees that it will perform in accordance with their terms all of the
obligations that by the terms of this Agreement are required to be performed by it as a Lender. 
 (c) Agent’s Acceptance. Upon
its receipt of an Assignment and Acceptance executed by an assigning Lender and an assignee representing that it is an Eligible Assignee, together with any Note or Notes subject to such assignment, the Facility Agent shall, if such Assignment and
Acceptance has been completed and is in substantially the form of Exhibit C hereto, (i) accept such Assignment and Acceptance, (ii) record the information contained therein in the Register and (iii) give prompt notice thereof to PMI.

 (d) Register. The Facility Agent shall maintain at its address referred to in Section 9.2 a copy of each Assignment and
Acceptance delivered to and accepted by it and a register for the recordation of the names and addresses of the Lenders and the Commitment of, and principal amount of the Advances owing to, each Lender from time to time (the
“Register”). The entries in the Register shall be conclusive and binding for all purposes, absent manifest error, and PMI, the Borrowers, the Facility Agent and the Lenders may treat each Person whose name is recorded in the
Register as a Lender hereunder for all purposes of this Agreement. The Register shall be available for inspection by PMI, any Borrower or any Lender at any reasonable time and from time to time upon reasonable prior notice. 
  

 53 

 (e) Sale of Participation. Each Lender may sell participations to one or more Qualifying Banks in
or to all or a portion of its rights and obligations under this Agreement (including, without limitation, all or a portion of its Commitment, the Advances owing to it and any Note or Notes held by it), subject to the following: 
 (i) such Lender’s obligations under this Agreement (including, without limitation, its Commitment to PMI hereunder) shall remain unchanged,

 (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations, 
 (iii) PMI, the other Borrowers, the Facility Agent and the other Lenders shall continue to deal solely and directly with such Lender in connection with
such Lender’s rights and obligations under this Agreement, and 
 (iv) no participant under any such participation shall have any right
to approve any amendment or waiver of any provision of this Agreement, or any consent to any departure by any Borrower or PMI therefrom, except to the extent that such amendment, waiver or consent would reduce the principal of, or interest on, the
Advances or any fees or other amounts payable hereunder, in each case to the extent subject to such participation, or postpone any date fixed for any payment of principal of, or interest on, the Advances or any fees or other amounts payable
hereunder, in each case to the extent subject to such participation. 
 (f) Disclosure of Information. Any Lender may, in connection
with any assignment or participation or proposed assignment or participation pursuant to this Section 9.7, disclose to the assignee or participant or proposed assignee or participant, any information relating to PMI or any Borrower furnished to
such Lender by or on behalf of PMI or any Borrower; provided that, prior to any such disclosure, the assignee or participant or proposed assignee or participant shall agree to preserve the confidentiality of any confidential information
relating to PMI received by it from such Lender by signing a confidentiality agreement substantially in the form attached hereto as Exhibit H. 
 (g) Regulation A Security Interest. Notwithstanding any other provision set forth in this Agreement, any Lender may at any time create a security interest in all or any portion of its rights under this Agreement (including, without
limitation, the Advances owing to it and any Note or Notes held by it) in favor of any Federal Reserve Bank in accordance with Regulation A. 
  

	9.8.	 Designated Subsidiaries. (a) Designation. PMI may at any time, and from time to time, by delivery to the Facility Agent of a Designation
Agreement duly executed by PMI and the respective Subsidiary and substantially in the form of Exhibit D hereto, designate such Subsidiary as a “Designated Subsidiary” for purposes of this Agreement and such 

  

 54 

	 	 
Subsidiary shall thereupon become a “Designated Subsidiary” for purposes of this Agreement and, as such, shall have all of the rights and
obligations of a Borrower hereunder. The Facility Agent shall promptly notify each Lender of each such designation by PMI and the identity of the respective Subsidiary. 

 (b) Termination. Upon the payment and performance in full of all of the indebtedness, liabilities and obligations under this Agreement of any
Designated Subsidiary then, so long as at the time no Notice of Pro Rata Borrowing or Notice of Swingline Borrowing in respect of such Designated Subsidiary is outstanding, such Subsidiary’s status as a “Designated Subsidiary” shall
terminate upon notice to such effect from the Facility Agent to the Lenders (which notice the Facility Agent shall give promptly, and only upon its receipt of a request therefor from PMI). Thereafter, the Lenders shall be under no further obligation
to make any Advance hereunder to such former Designated Subsidiary until such time as it has been redesignated a Designated Subsidiary by PMI pursuant to Section 9.8(a). 
  

	9.9.	Governing Law. This Agreement and the Notes shall be governed by, and construed in accordance with, the laws of the State of New York. 

  

	9.10.	Execution in Counterparts. This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so
executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement by facsimile shall be effective as delivery of a
manually executed counterpart of this Agreement. 

  

	9.11.	 Jurisdiction, Etc. (a) Submission to Jurisdiction; Service of Process. Each of the parties hereto hereby irrevocably and unconditionally submits,
for itself and its property, to the nonexclusive jurisdiction of any New York state court or Federal court of the United States of America sitting in New York City, and any appellate court from any thereof, in any action or proceeding arising out of
or relating to this Agreement, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in
any such New York state court or, to the extent permitted by law, in such Federal court. Each Borrower (other than PMI) hereby agrees that service of process in any such action or proceeding brought in any such New York state court or in such
Federal court may be made upon PMI at 120 Park Avenue, New York, NY 10017, Attention: Secretary, or such other address in the United States as notified to the Facility Agent from time to time (the “Process Agent”), and each
Designated Subsidiary hereby irrevocably appoints the Process Agent its authorized agent to accept such service of process, and agrees that the failure of the Process Agent to give any notice of any such service shall not impair or affect the
validity of such service or of any judgment rendered in any action or proceeding based thereon. Each Borrower hereby further irrevocably consents to the service of process in any action or proceeding in such courts by the mailing thereof by any
parties hereto by registered or certified mail, postage prepaid, to such Borrower at its address specified pursuant to Section 9.2. Each of the parties hereto 

  

 55 

	 	 
agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in
any other manner provided by law. Nothing in this Agreement shall affect any right that any party may otherwise have to serve legal process in any other manner permitted by law or to bring any action or proceeding relating to this Agreement or the
Notes in the courts of any jurisdiction. 

 (b) PMI as Process Agent. PMI hereby accepts its appointment as Process
Agent and agrees that (i) it will maintain an office in New York, New York, or such other address in the United States as notified to the Facility Agent from time to time, through the Termination Date and will give the Facility Agent prompt
notice of any change of its address, (ii) it will perform its duties as Process Agent to receive on behalf of each Designated Subsidiary and its property service of copies of the summons and complaint and any other process which may be served
in any action or proceeding in any New York State or Federal court sitting in New York City arising out of or relating to this Agreement and (iii) it will forward forthwith to each Designated Subsidiary at its then current address copies of any
summons, complaint and other process which PMI receives in connection with its appointment as Process Agent. 
 (c) Waivers. Each of
the parties hereto irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection that it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or
relating to this Agreement or the Notes in any New York state or Federal court. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or
proceeding in any such court. 
  

	9.12.	Confidentiality. None of the Agents, the Mandated Lead Arrangers and Bookrunners nor any Lender shall disclose any confidential information relating to PMI or any Borrower to
any other Person without the consent of PMI, other than (a) to such Agent’s or such Lender’s affiliates and their officers, directors, employees, agents and advisors and, as contemplated by Section 9.7(f), to actual or
prospective assignees and participants, and then, in each such case, only on a confidential basis; provided, however, that such actual or prospective assignee or participant shall have been made aware of this Section 9.12 and
shall have agreed to be bound by its provisions as if it were a party to this Agreement, (b) as required by any law, rule or regulation or judicial process, and (c) as requested or required by any state, federal or foreign authority or
examiner regulating banks or banking or other financial institutions. 

  

	9.13.	Integration. This Agreement and the Notes represent the agreement of PMI, the other Borrowers, the Facility Agent, the Swingline Agent and the Lenders with respect to the
subject matter hereof, and there are no promises, undertakings, representations or warranties by the Facility Agent, the Swingline Agent, PMI, the other Borrowers or any Lender relative to the subject matter hereof not expressly set forth or
referred to herein or in the Notes other than the matters referred to in Sections 2.13(b) and 9.4(a) and except for Confidentiality Agreements entered into by each Lender in connection with this Agreement. 

  

 56 

	9.14.	USA Patriot Act Notice, Etc. The Facility Agent and each Lender hereby notifies the Borrowers that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L.
107-56 (signed into law October 26, 2001)) (the “Patriot Act”) or any similar “know your customer” or other similar checks under all applicable laws and regulations, it is required to obtain, verify and record
information that identifies the Borrowers, which information includes the name and address of each Borrower and other information that will allow such Lender to identify such Borrower in accordance with the Patriot Act or any similar “know your
customer” or other similar checks under all applicable laws and regulations. 

  

	9.15.	Judgment. (a) If for the purposes of obtaining judgment in any court it is necessary to convert a sum due hereunder in Dollars into Euro, or to convert a sum due
hereunder in Euro into Dollars, the parties hereto agree, to the fullest extent that they may effectively do so, that the rate of exchange used shall be the Equivalent thereof on the Business Day preceding that on which final judgment is given.

 (b) The obligation of any Borrower in respect of any sum due from it in Euro or Dollars (the “Primary
Currency”) to any Lender or any Agent hereunder shall, notwithstanding any judgment in any other currency, be discharged only to the extent that on the Business Day following receipt by such Lender or such Agent (as the case may be), of any
sum adjudged to be so due in such other currency, such Lender or such Agent (as the case may be) may in accordance with normal banking procedures purchase the applicable Primary Currency with such other currency; if the amount of the applicable
Primary Currency so purchased is less than such sum due to such Lender or such Agent (as the case may be) in the applicable Primary Currency, the Borrowers agree, as a separate obligation and notwithstanding any such judgment, to indemnify such
Lender or such Agent (as the case may be) against such loss, and if the amount of the applicable Primary Currency so purchased exceeds such sum due to any Lender or such Agent (as the case may be) in the applicable Primary Currency, such Lender or
such Agent (as the case may be) agrees to remit to the applicable Borrower such excess. 
  

 57 

  
  
  
  
  
  
  
  
  
  
  
  
 [Signature Pages Intentionally Omitted] 
  

 EXHIBIT A-1 - FORM OF 
 TRANCHE A REVOLVING CREDIT NOTE 
 Dated:
                        , 20     
 $                          
 FOR VALUE RECEIVED, the undersigned, [NAME OF BORROWER], a
                     corporation (the “Borrower”), HEREBY PROMISES TO PAY to the order of
                     (the “Lender”) for the account of its Applicable Lending Office on the Termination Date (each as defined
in the Credit Agreement referred to below) the principal sum of $[amount of the Lender’s Tranche A Revolving Credit Commitment in figures] or, if less, the aggregate principal amount of the Tranche A Revolving Credit Advances outstanding on the
Termination Date made by the Lender to the Borrower pursuant to the Credit Agreement, dated as of [4] December 2007 among Philip Morris International Inc., the Lender and certain other lenders party thereto, J.P. Morgan Europe Limited, as Facility
Agent and Swingline Agent, and J.P. Morgan plc, Citigroup Global Markets Limited, Credit Suisse, Cayman Islands Branch, Deutsche Bank Securities Inc., Goldman Sachs Credit Partners L.P. and Lehman Brothers Inc., as Mandated Lead Arrangers and
Bookrunners for such Lenders (as amended or modified from time to time, the “Credit Agreement;” the terms defined therein being used herein as therein defined). 
 The Borrower promises to pay interest on the unpaid principal amount of each Tranche A Revolving Credit Advance from the date of such Tranche A Revolving
Credit Advance until such principal amount is paid in full, at such interest rate, and payable at such times, as are specified in the Credit Agreement. 
 Both principal and interest in respect of each Tranche A Revolving Credit Advance are payable in Euro or Dollars, as the case may be, to J.P. Morgan Europe Limited, as Facility Agent, for the account of the Lender at
the office of J.P. Morgan Europe Limited, located in London, England for payments in Euro or New York, New York for payments in Dollars, in same day funds. Each Tranche A Revolving Credit Advance owing to the Lender by the Borrower pursuant to the
Credit Agreement, and all payments made on account of principal thereof, shall be recorded by the Lender and, prior to any transfer hereof, endorsed on the grid attached hereto which is part of this Promissory Note. 
 This Promissory Note is one of the Tranche A Revolving Credit Notes referred to in, and is entitled to the benefits of, the Credit Agreement. The Credit
Agreement, among other things, (i) provides for the making of Tranche A Revolving Credit Advances by the Lender to the Borrower from time to time in an aggregate amount not to exceed at any time outstanding the Dollar amount first above
mentioned, the indebtedness of the Borrower resulting from each such Tranche A Revolving Credit Advance being evidenced by this Promissory Note, (ii) contains provisions for determining the Dollar Equivalent of Advances denominated in Euro and
(iii) contains provisions for acceleration of the maturity hereof upon the happening of certain stated events and also for prepayments on account of principal hereof prior to the maturity hereof upon the terms and conditions therein specified.

 This Promissory Note shall be governed by, and construed in accordance with, the laws of the State of New
York. 
  

					
		 	 [NAME OF BORROWER]

			
		 	 By
	 	  

		 	 Name:
	 	
		 	 Title:
	 	

  

 2 

 TRANCHE A REVOLVING CREDIT LOANS AND PAYMENTS OF PRINCIPAL 
  

													
	 Date
	  	 Type of
 Tranche A
Revolving
 Credit
 Advance
	  	Amount of
Tranche A
Revolving
Credit
Advance	  	Interest
Rate	  	Amount
of
Principal
Paid
or Prepaid	  	Unpaid
Principal
Balance	  	Notation
Made By
		  		  		  		  		  		  	
		  		  		  		  		  		  	
		  		  		  		  		  		  	
		  		  		  		  		  		  	
		  		  		  		  		  		  	
		  		  		  		  		  		  	
		  		  		  		  		  		  	
		  		  		  		  		  		  	
		  		  		  		  		  		  	
		  		  		  		  		  		  	

  

 3 

 EXHIBIT A-2 - FORM OF 
 TRANCHE B REVOLVING CREDIT NOTE 
 Dated:
                        , 20     
 $                         
 FOR VALUE RECEIVED, the undersigned, [NAME OF BORROWER], a
                     corporation (the “Borrower”), HEREBY PROMISES TO PAY to the order of
                     (the “Lender”) for the account of its Applicable Lending Office on the Termination Date (each as defined
in the Credit Agreement referred to below) the principal sum of $[amount of the Lender’s Tranche B Revolving Credit Commitment in figures] or, if less, the aggregate principal amount of the Tranche B Revolving Credit Advances outstanding on the
Termination Date made by the Lender to the Borrower pursuant to the Credit Agreement, dated as of [4] December 2007 among Philip Morris International Inc., the Lender and certain other lenders party thereto, J.P. Morgan Europe Limited, as Facility
Agent and Swingline Agent, and J.P. Morgan plc, Citigroup Global Markets Limited, Credit Suisse, Cayman Islands Branch, Deutsche Bank Securities Inc., Goldman Sachs Credit Partners L.P. and Lehman Brothers Inc., as Mandated Lead Arrangers and
Bookrunners for such Lenders (as amended or modified from time to time, the “Credit Agreement;” the terms defined therein being used herein as therein defined). 
 The Borrower promises to pay interest on the unpaid principal amount of each Tranche B Revolving Credit Advance from the date of such Tranche B Revolving
Credit Advance until such principal amount is paid in full, at such interest rate, and payable at such times, as are specified in the Credit Agreement. 
 Both principal and interest in respect of each Tranche B Revolving Credit Advance are payable in Euro or Dollars, as the case may be, to J.P. Morgan Europe Limited, as Facility Agent, for the account of the Lender at
the office of J.P. Morgan Europe Limited, located in London, England for payments in Euro or New York, New York for payments in Dollars, in same day funds. Each Tranche B Revolving Credit Advance owing to the Lender by the Borrower pursuant to the
Credit Agreement, and all payments made on account of principal thereof, shall be recorded by the Lender and, prior to any transfer hereof, endorsed on the grid attached hereto which is part of this Promissory Note. 
 This Promissory Note is one of the Tranche B Revolving Credit Notes referred to in, and is entitled to the benefits of, the Credit Agreement. The Credit
Agreement, among other things, (i) provides for the making of Tranche B Revolving Credit Advances by the Lender to the Borrower from time to time in an aggregate amount not to exceed at any time outstanding the Dollar amount first above
mentioned, the indebtedness of the Borrower resulting from each such Tranche B Revolving Credit Advance being evidenced by this Promissory Note, (ii) contains provisions for determining the Dollar Equivalent of Advances denominated in Euro and
(iii) contains provisions for acceleration of the maturity hereof upon the happening of certain stated events and also for prepayments on account of principal hereof prior to the maturity hereof upon the terms and conditions therein specified.

 This Promissory Note shall be governed by, and construed in accordance with, the laws of the State of New
York. 
  

			
	[NAME OF BORROWER]
		
	By	 	  

	Name:	 	
	Title:	 	

  

 2 

 TRANCHE B REVOLVING CREDIT LOANS AND PAYMENTS OF PRINCIPAL 
  

													
	 Date
	  	 Type of
 Tranche B
Revolving
 Credit
 Advance
	  	Amount of
Tranche B
Revolving
Credit
Advance	  	Interest
Rate	  	Amount
of
Principal
Paid
or Prepaid	  	Unpaid
Principal
Balance	  	Notation
Made By
		  		  		  		  		  		  	
		  		  		  		  		  		  	
		  		  		  		  		  		  	
		  		  		  		  		  		  	
		  		  		  		  		  		  	
		  		  		  		  		  		  	
		  		  		  		  		  		  	
		  		  		  		  		  		  	
		  		  		  		  		  		  	
		  		  		  		  		  		  	

  

 3 

 EXHIBIT A-3 - FORM OF 
 TERM NOTE 
 Dated:
                        , 20     
 EUR                         
 FOR VALUE RECEIVED, the undersigned, [NAME OF BORROWER], a
                     corporation (the “Borrower”), HEREBY PROMISES TO PAY to the order of
                     (the “Lender”) for the account of its Applicable Lending Office on the Termination Date (each as defined
in the Credit Agreement referred to below) the principal sum of EUR [amount of the Lender’s Term Commitment in figures] or, if less, the aggregate principal amount of the Term Advances outstanding on the Termination Date made by the Lender to
the Borrower pursuant to the Credit Agreement, dated as of [4] December 2007 among Philip Morris International Inc., the Lender and certain other lenders party thereto, J.P. Morgan Europe Limited, as Facility Agent and Swingline Agent, and J.P.
Morgan plc, Citigroup Global Markets Limited, Credit Suisse, Cayman Islands Branch, Deutsche Bank Securities Inc., Goldman Sachs Credit Partners L.P., and Lehman Brothers Inc., as Mandated Lead Arrangers and Bookrunners for such Lenders (as amended
or modified from time to time, the “Credit Agreement;” the terms defined therein being used herein as therein defined). 
 The Borrower promises to pay interest on the unpaid principal amount of each Term Advance from the date of such Term Advance until such principal amount is paid in full at such interest rate, and payable at such times as are specified in,
the Credit Agreement. 
 Both principal and interest are payable in Euro to J.P. Morgan Europe Limited, as Facility Agent, for the account of
the Lender at the office of J.P. Morgan Europe Limited, located in London, England, in same day funds. Each Term Advance owing to the Lender by the Borrower pursuant to the Credit Agreement, and all payments made on account of principal thereof,
shall be recorded by the Lender and, prior to any transfer hereof, endorsed on the grid attached hereto which is part of this Promissory Note. 
 This Promissory Note is one of the Term Notes referred to in, and is entitled to the benefits of, the Credit Agreement. The Credit Agreement, among other things, contains provisions for acceleration of the maturity hereof upon the happening
of certain stated events. 
 The Borrower hereby waives presentment, demand, protest and notice of any kind. No failure to exercise, and no
delay in exercising, any rights hereunder on the part of the holder hereof shall operate as a waiver of such rights. 
 This Promissory Note
shall be governed by, and construed in accordance with, the laws of the State of New York. 
  

			
	[NAME OF BORROWER]
		
	By	 	  

	Name:	 	
	Title:	 	

 TERM LOANS AND PAYMENTS OF PRINCIPAL 
  

											
	 Date
	  	 Amount of
 Term Advance
	  	Interest
Rate	  	Amount
of
Principal
Paid
or Prepaid	  	Unpaid
Principal
Balance	  	Notation
Made By
		  		  		  		  		  	
		  		  		  		  		  	
		  		  		  		  		  	
		  		  		  		  		  	
		  		  		  		  		  	
		  		  		  		  		  	
		  		  		  		  		  	
		  		  		  		  		  	
		  		  		  		  		  	
		  		  		  		  		  	

 EXHIBIT B-1 - FORM OF NOTICE OF 
 PRO RATA BORROWING 
 [Date] 
 J.P. Morgan Europe Limited, as Facility Agent 
 for the Lenders party 
 to the Credit Agreement 
 referred to below

 Attention: Loans Agency 
 Ladies and Gentlemen: 
 [NAME OF BORROWER], refers to the Credit Agreement, dated as of [4] December 2007 (as amended or modified from time to time, the “Credit
Agreement,” the terms defined therein being used herein as therein defined), among Philip Morris International Inc., the Lenders party thereto and J.P. Morgan Europe Limited, as Facility and Swingline Agent, and J.P. Morgan plc, Citigroup
Global Markets Limited, Credit Suisse, Cayman Islands Branch, Deutsche Bank Securities Inc., Goldman Sachs Credit Partners L.P. and Lehman Brothers Inc., as Mandated Lead Arrangers and Bookrunners, and hereby gives you notice, irrevocably, pursuant
to Section 2.4 of the Credit Agreement that the undersigned hereby requests a Pro Rata Borrowing under the Credit Agreement, and in that connection sets forth below the information relating to such Pro Rata Borrowing (the “Proposed Pro
Rata Borrowing”) as required by Section 2.4(a) of the Credit Agreement: 
  

	 	(i)	The date of the Proposed Pro Rata Borrowing is
                        , 20    . 

  

	 	(ii)	The type of Pro Rata Borrowing being requested is a [Tranche A Revolving Credit Borrowing] [Tranche B Revolving Credit Borrowing] [Term Borrowing]. 

  

	 	 (iii)
	 The Type of Advances comprising the Proposed Pro Rata Borrowing is [EURIBOR Advances] [LIBOR
Advances]. 1 

  

	 	 (iv)
	 The aggregate amount of the Proposed Pro Rata Borrowing is
[EUR][$]1[                        ]. 

  

	 	 (v)
	 The initial Interest Period for each [EURIBOR][LIBOR]1 Advance made as part of the Proposed Pro Rata
Borrowing is              month(s). 

  
  

	 1
	 Not available for Term Advances. 

  

 1 

	 	(vi)	Account to credit with funds:
                        . 

 The undersigned, as applicable, hereby certifies that the following statements are true on the date hereof, and will be true on the date of the Proposed Pro Rata Borrowing: 
 (a) the representations and warranties contained in Section 4.1 of the Credit Agreement (except the representations set forth in the
last sentence of subsection (e) thereof and in subsection (f) thereof (other than clause (i) thereof)) are correct, before and after giving effect to the Proposed Pro Rata Borrowing and to the application of the proceeds therefrom, as
though made on and as of such date; 
 [if the Borrower is a Designated Subsidiary: the representations and warranties of such
Designated Subsidiary contained in its Designation Agreement are correct, before and after giving effect to the Proposed Pro Rata Borrowing and to the application of the proceeds therefrom, as though made on and as of such date;] 
 (b) after giving effect to the application of the proceeds of all Borrowings on the date of such Pro Rata Borrowing (together with any
other resources of the Borrower applied together therewith), no event has occurred and is continuing, or would result from such Pro Rata Borrowing, that constitutes a Default or Event of Default; 
 (c) if such Proposed Pro Rata Borrowing is in an aggregate principal amount equal to or greater than $500,000,000, or the Equivalent in
Euro thereof, and is being made in connection with any purchase of shares of the Borrower’s or PMI’s capital stock or the capital stock of any other Person, or any purchase of all or substantially all of the assets of any Person (whether
in one transaction or a series of transactions) or any transaction of the type referred to in Section 5.2(b) of the Credit Agreement, the statement in clause (b) above will be true on a pro forma basis as if such transaction or
purchase shall have been completed; and 
 (d) the aggregate principal amount of the Proposed Pro Rata Borrowing and all other
[Tranche A Revolving Credit] [Tranche B Revolving Credit] [Term] Borrowings to be made on the same day under the Credit Agreement is within the aggregate unused [Tranche A Revolving Credit] [Tranche B Revolving Credit] [Term] Commitments of the
Lenders, with any such determination having been made after giving effect to a calculation of the Equivalent in Dollars of any outstanding Borrowings or Proposed Pro Rata Borrowings that are denominated in Euro. 
  

			
	Very truly yours,
	
	PHILIP MORRIS INTERNATIONAL INC.
		
	By	 	  

	Name:	 	
	Title:	 	
	
	[NAME OF BORROWER]
		
	By	 	  

	Name:	 	
	Title:	 	

  

 2 

 EXHIBIT B-2 - FORM OF NOTICE OF 
 SWINGLINE BORROWING 
 [Date] 
 J.P. Morgan Europe Limited, as Swingline Agent 
 for the Lenders party to the Credit Agreement 
 referred to below 
 Attention: Loans Agency 
 Ladies and Gentlemen: 
 [NAME OF BORROWER], refers to the
Credit Agreement, dated as of [4] December 2007 (as amended or modified from time to time, the “Credit Agreement,” the terms defined therein being used herein as therein defined), among Philip Morris International Inc., the Lenders
party thereto and J.P. Morgan Europe Limited, as Facility and Swingline Agent, and J.P. Morgan plc, Citigroup Global Markets Limited, Credit Suisse, Cayman Islands Branch, Deutsche Bank Securities Inc., Goldman Sachs Credit Partners L.P. and Lehman
Brothers Inc., as Mandated Lead Arrangers and Bookrunners, and hereby gives you notice, irrevocably, pursuant to Section 2.10 of the Credit Agreement that the undersigned hereby requests a Swingline Borrowing under the Credit Agreement, and in
that connection sets forth the terms on which such Swingline Borrowing (the “Proposed Swingline Borrowing”) is requested to be made: 
  

	 	 (i)
	 The date of the Proposed Swingline Borrowing is
                        , 20    .1 

  

	 	(ii)	The type of Swingline Borrowing being requested is a [Tranche A Swingline Borrowing] [Tranche B Swingline Borrowing]. 

  

	 	(iii)	The Type of Advances comprising the Swingline Borrowing is [Euro Swingline Advances] [Dollar Swingline Advances]. 

  

	 	(iv)	The aggregate amount of the Proposed Swingline Borrowing is [EUR][$][            ]. 

  

	 	(v)	The Interest Period for each [EURIBOR][LIBOR] Advance made as part of the Proposed Swingline Borrowing is
             day(s). 

  

	 	(vi)	Account to credit with funds:
                        . 

  

	 1
	 Pursuant to Section 2.10(a), the Date of Borrowing can be the same date as the notice; provided the notice is given
to the Facility Agent on such date by (i) 10:30 A.M. (London time) or (ii) after 10:30 A.M. (London time) and before 12:00 P.M. (New York time) subject to Section 2.12 for Swingline Borrowings consisting of LIBOR Advances.

 The undersigned, as applicable, hereby certifies that the following statements are true on the date
hereof, and will be true on the date of the Proposed Swingline Borrowing: 
 (a) the representations and warranties contained
in Section 4.1 of the Credit Agreement (except the representations set forth in the last sentence of subsection (e) thereof and in subsection (f) thereof (other than clause (i) thereof)) are correct, before and after giving
effect to the Proposed Swingline Borrowing and to the application of the proceeds therefrom, as though made on and as of such date; 
 [if the Borrower is a Designated Subsidiary: the representations and warranties of such Designated Subsidiary contained in its Designation Agreement are correct, before and after giving effect to the Proposed Swingline Borrowing and to the
application of the proceeds therefrom, as though made on and as of such date;] 
 (b) after giving effect to the application
of the proceeds of all Borrowings on the date of such Swingline Borrowing (together with any other resources of the Borrower applied together therewith), no event has occurred and is continuing, or would result from such Proposed Swingline
Borrowing, that constitutes a Default or Event of Default; 
 (c) if such Swingline Borrowing is in an aggregate principal
amount equal to or greater than $500,000,000, or the Equivalent in Euro thereof, and is being made in connection with any purchase of shares of the Borrower’s or PMI’s capital stock or the capital stock of any other Person, or any purchase
of all or substantially all of the assets of any Person (whether in one transaction or a series of transactions) or any transaction of the type referred to in Section 5.2(b) of the Credit Agreement, the statement in clause (b) above will
be true on a pro forma basis as if such transaction or purchase shall have been completed; and 
 (d) the aggregate
principal amount of the Proposed Swingline Borrowing and all other [Tranche A] [Tranche B] Swingline Borrowings to be made on the same day under the Credit Agreement is within the aggregate unused [Tranche A] [Tranche B] Swingline Commitments of the
Lenders, with any such determination having been made after giving effect to a calculation of the Equivalent in Dollars of any outstanding Borrowings or Proposed Swingline Borrowings that are denominated in Euro. 
  

			
	Very truly yours,
	
	PHILIP MORRIS INTERNATIONAL INC.
		
	By	 	  

	Name:	 	
	Title:	 	
	
	[NAME OF BORROWER]
		
	By	 	  

	Name:	 	
	Title:	 	

  

 2 

 EXHIBIT C - FORM OF 
 ASSIGNMENT AND ACCEPTANCE 
 Reference is made to the Credit Agreement, dated as of [4] December 2007 (as
amended or modified from time to time, the “Credit Agreement,” the terms defined therein being used herein as therein defined), among Philip Morris International Inc., a Virginia corporation, the Lenders party thereto and J.P.
Morgan Europe Limited, as Facility Agent and Swingline Agent, and J.P. Morgan plc, Citigroup Global Markets Limited, Credit Suisse, Cayman Islands Branch, Deutsche Bank Securities Inc., Goldman Sachs Credit Partners L.P. and Lehman Brothers Inc., as
Mandated Lead Arrangers and Bookrunners for such Lenders. 
 The “Assignor” and the “Assignee” referred to on Schedule 1
hereto agree as follows: 
 1. The Assignor hereby sells and assigns to the Assignee, and the Assignee hereby purchases and assumes from the
Assignor, an interest in and to the Assignor’s rights and obligations under the Credit Agreement as of the date hereof equal to the percentage interest specified on Schedule 1 hereto of all outstanding rights and obligations under the Credit
Agreement. After giving effect to such sale and assignment, the Assignee’s Commitment and the amount of the Advances owing to the Assignee will be as set forth on Schedule 1 hereto. Each of the Assignor and the Assignee represents and warrants
that it is authorized to execute and deliver this Assignment and Acceptance. 
 2. The Assignor (i) represents and warrants that it is
the legal and beneficial owner of the interest being assigned by it hereunder and that such interest is free and clear of any adverse claim; (ii) makes no representation or warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with the Credit Agreement or the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Credit Agreement or any other instrument or document furnished pursuant
thereto; and (iii) makes no representation or warranty and assumes no responsibility with respect to the financial condition of any Borrower or PMI or the performance or observance by any Borrower or PMI of any of its obligations under the
Credit Agreement or any other instrument or document furnished pursuant thereto. 
 3. The Assignee (i) confirms that it has received a
copy of the Credit Agreement, together with copies of the financial statements referred to in Section 4.1 thereof and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into
this Assignment and Acceptance; (ii) agrees that it will, independently and without reliance upon J.P. Morgan Europe Limited, as Facility Agent, any other Agent, the Assignor or any other Lender and based on such documents and information as it
shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Credit Agreement; (iii) confirms that it is an Eligible Assignee (if the Assignee is not a Qualifying Bank, the assignment
shall not be effective without the written approval of PMI, which approval shall be notified to the Facility Agent); (iv) represents that (A) the source of any funds it is using to acquire the Assignor’s interest or to make any
Advance is not and will not be plan assets as defined under the regulations of the Department of Labor of any Plan subject to Title I of ERISA or Section 4975 of the Code or (B) the assignment or 

 
Advance is not and will be not be a non-exempt prohibited transaction as defined in Section 406 of ERISA; (v) appoints and authorizes J.P. Morgan
Europe Limited, as Facility Agent, to take such action as agent on its behalf and to exercise such powers and discretion under the Credit Agreement as are delegated to J.P. Morgan Europe Limited, as Facility Agent, by the terms thereof, together
with such powers and discretion as are reasonably incidental thereto; (vi) agrees that it will perform in accordance with their terms all of the obligations that by the terms of the Credit Agreement are required to be performed by it as a
Lender; and (vii) confirms that it has signed a confidentiality agreement substantially in the form attached as Exhibit H to the Credit Agreement. 
 4. This Assignment and Acceptance will be delivered to J.P. Morgan Europe Limited, as Facility Agent, for acceptance and recording by J.P. Morgan Europe Limited, as Facility Agent following its execution. The
effective date for this Assignment and Acceptance (the “Effective Date”) shall be the date of acceptance hereof by J.P. Morgan Europe Limited, as Facility Agent, unless otherwise specified on Schedule 1 hereto. 
 5. Upon such acceptance and recording by J.P. Morgan Europe Limited, as Facility Agent, as of the Effective Date, (i) the Assignee shall be a party
to the Credit Agreement and, to the extent provided in this Assignment and Acceptance, have the rights and obligations of a Lender thereunder and (ii) the Assignor shall, to the extent provided in this Assignment and Acceptance, relinquish its
rights and be released from its obligations under the Credit Agreement. 
 6. Upon such acceptance and recording by J.P. Morgan Europe
Limited, as Facility Agent, from and after the Effective Date, J.P. Morgan Europe Limited, as Facility Agent, shall make all payments under the Credit Agreement in respect of the interest assigned hereby (including, without limitation, all payments
of principal, interest and facility fees with respect thereto) to the Assignee. The Assignor and Assignee shall make all appropriate adjustments in payments under the Credit Agreement for periods prior to the Effective Date directly between
themselves. 
 7. This Assignment and Acceptance shall be governed by, and construed in accordance with, the laws of the State of New York.

 8. This Assignment and Acceptance may be executed in any number of counterparts and by different parties hereto in separate counterparts,
each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of Schedule 1 to this Assignment and Acceptance by telecopier shall be
effective as delivery of a manually executed counterpart of this Assignment and Acceptance. 
 IN WITNESS WHEREOF, the Assignor and the
Assignee have caused Schedule 1 to this Assignment and Acceptance to be executed by their officers thereunto duly authorized as of the date specified thereon. 
  

 2 

 Schedule 1 
 to 
 Assignment and Acceptance 
  

			
	Percentage interest assigned:	  	            %
		
	 Assignee’s [TrancheA][Tranche B] Revolving Credit Commitment:
(including, if applicable, Assignee’s [TrancheA][Tranche B]
Swingline Commitment
$                    )
	  	$                    
		
	Assignee’s Term Commitment:	  	EUR                    
		
	 Aggregate outstanding principal amount of
 [TrancheA][Tranche B] Revolving Credit Advances assigned:
	  	
 EUR/$                    

		
	Aggregate outstanding principal amount of
Term Advances assigned:	  	
 EUR                    

		
	Effective Date1:	  	                        ,
20    

  

					
	[NAME OF ASSIGNOR], as Assignor
		
	By	 	  

	Title:	 		 	
	Dated:	 	  
	 	, 20    
	
	[NAME OF ASSIGNEE], as Assignee
		
	By	 	  

	Title:	 		 	
	Dated:	 	  
	 	, 20    
	Applicable Lending Office: [Address]

 Accepted this 
          day of
                        , 20         
  

					
	 J.P. MORGAN EUROPE LIMITED, as Facility Agent

		
	By	 	  

	Title:	 		 	

 [Approved this
                     day 
 of
                        , 20         
 [NAME OF BORROWER]2 
  

					
	By	 	  

	Title:	 		 	

  

	 1
	 This date should be no earlier than five Business Days after the delivery of this Assignment and Acceptance to J.P.
Morgan Europe Limited, as Facility Agent. 

	 2
	 Required if the Assignee is an Eligible Assignee solely by reason of clause (v) of the definition of “Eligible
Assignee.” 

 EXHIBIT D - FORM OF 
 DESIGNATION AGREEMENT 
 [Date]1 
 J.P. Morgan Europe Limited, as Facility Agent 
 for the Lenders party to the Credit Agreement referred to below 
 Ladies and Gentlemen: 
 Reference is made to the Credit Agreement, dated as of [4] December 2007 (as amended or modified from time to time, the “Credit
Agreement,” the terms defined therein being used herein as therein defined), among Philip Morris International Inc., [certain other borrowers party thereto], the Lenders party thereto and J.P. Morgan Europe Limited, as Facility and
Swingline Agent, and J.P. Morgan plc, Citigroup Global Markets Limited, Credit Suisse, Cayman Islands Branch, Deutsche Bank Securities Inc., Goldman Sachs Credit Partners L.P. and Lehman Brothers Inc., as Mandated Lead Arrangers and Bookrunners for
such Lenders. 
 Please be advised that PMI hereby designates its undersigned wholly-owned Subsidiary,
                         (“Designated Subsidiary”), as a “Designated Subsidiary” under and for
all purposes of the Credit Agreement. 
 The Designated Subsidiary, in consideration of each Lender’s agreement to extend credit to it
under and on the terms and conditions set forth in the Credit Agreement, does hereby assume each of the obligations imposed upon a “Designated Subsidiary” and a “Borrower” under the Credit Agreement and agrees to be bound by the
terms and conditions of the Credit Agreement. In furtherance of the foregoing, the Designated Subsidiary hereby represents and warrants to each Lender as follows: 
 (a) The Designated Subsidiary is duly organized, validly existing and in good standing under the laws of
                            . 
 (b) The execution, delivery and performance by the Designated Subsidiary of this Designation Agreement and the Notes, if any, to be
delivered by it and the performance by the Designated Subsidiary under the Credit Agreement are within the Designated Subsidiary’s corporate powers, have been duly authorized by all necessary corporate action and do not contravene (i) the
Designated Subsidiary’s charter or by-laws or (ii) in any material respect, any law, rule, regulation or order of any court or governmental agency or contractual restriction binding on or affecting it. 
  

	 1
	 For Subsidiaries that are not listed on Schedule II, date must be at least (i) three Business Days for a Designated
Subsidiary organized in the United States or any political subdivision thereof and (ii) five Business Days for a Designated Subsidiary organized outside the United States, in each case, prior to the date of the initial Pro Rata Advance to such
Designated Subsidiary. 

 (c) No authorization or approval or other action by, and no notice to or filing with, any
governmental authority or regulatory body is required for the due execution, delivery and performance by the Designated Subsidiary of this Designation Agreement or the Notes, if any, to be delivered by it and the performance by the Designated
Subsidiary under the Credit Agreement. 
 (d) This Designation Agreement is, and the Notes, if any, to be delivered by the
Designated Subsidiary when delivered will be, legal, valid and binding obligations of the Designated Subsidiary enforceable against the Designated Subsidiary in accordance with their respective terms, subject to the effect of any applicable
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws affecting creditors’ rights generally and the effect of general principles of equity (regardless of whether such enforceability is sought in a proceeding in
equity or at law) and an implied covenant of good faith and fair dealing. 
 (e) There is no pending or threatened action or
proceeding affecting the Designated Subsidiary or any of its Subsidiaries before any court, governmental agency or arbitrator that purports to affect the legality, validity or enforceability of this Designation Agreement, the Credit Agreement or any
Note of the Designated Subsidiary. 
 (f) [The registered address;
name, telephone number, facsimile number and email address of contact person; and internet address, if available, of the Designated Subsidiary are
                            .]2 
 (g) [The Federal employer identification number of the Designated Subsidiary is
                            .]2,3 
  

			
	Very truly yours,
	
	PHILIP MORRIS INTERNATIONAL INC.
		
	By	 	  

	Name:	 	
	Title:	 	
	
	[DESIGNATED SUBSIDIARY]
		
	By	 	  

	Name:	 	
	Title:	 	

  

	 2
	 Does not apply to Subsidiaries listed on Schedule II. 

	 3
	 Does not apply to Designated Subsidiaries organized outside the United States. 

  

 2 

 EXHIBIT E-1 - FORM OF 
 OPINION OF COUNSEL 
 FOR PMI 
 [Letterhead of Hunton & Williams LLP] 
 [Effective Date] 
 To each of the Lenders party 
 to the Credit Agreement referred to below

 Philip Morris International Inc. 
 Ladies and Gentlemen: 
 This opinion is furnished to you pursuant to Section 3.1(d)(iii) of the Credit Agreement, dated as of
[4] December 2007 (the “Credit Agreement”), among Philip Morris International Inc., the Lenders party thereto and J.P. Morgan Europe Limited, as Facility Agent and Swingline Agent, and J.P. Morgan plc, Citigroup Global Markets
Limited, Credit Suisse, Cayman Islands Branch, Deutsche Bank Securities Inc., Goldman Sachs Credit Partners L.P. and Lehman Brothers Inc., as Mandated Lead Arrangers and Bookrunners for such Lenders. Terms defined in the Credit Agreement are used
herein as therein defined. 
 We have acted as counsel for PMI in connection with the preparation, execution and delivery of the Credit
Agreement. 
 In that connection, we have examined the following documents: 
 (1) The Credit Agreement. 
 (2) The documents furnished by PMI pursuant to Article III of the Credit Agreement. 
 (3) The
Articles of Incorporation of PMI and all amendments thereto (the “Charter”). 
 (4) The by-laws of PMI and
all amendments thereto (the “By-laws”). 
 We have also examined the originals, or copies certified to our satisfaction, of such corporate
records of PMI, certificates of public officials and of officers of PMI and agreements, instruments and other documents, as we have deemed relevant and necessary as a basis for the opinions expressed below. As to questions of fact material to such
opinions, we have, when relevant facts were not independently established by us, relied upon the representations of PMI set forth in the Credit Agreement and upon certificates of PMI or its officers or of public officials. Whenever the phrase
“to our knowledge” is used herein, it refers to the actual knowledge of the attorneys of the firm involved in the representation of PMI in connection with the Credit Agreement, without independent investigation. We have assumed the due
execution 

 
and delivery, pursuant to due authorization, of the Credit Agreement by the Initial Lenders and J.P. Morgan Europe Limited, as Facility Agent and Swingline
Agent, and J.P. Morgan plc, Citigroup Global Markets Limited, Credit Suisse, Cayman Islands Branch, Deutsche Bank Securities Inc., Goldman Sachs Credit Partners L.P. and Lehman Brothers Inc., as Mandated Lead Arrangers and Bookrunners. 

Our opinions expressed below are limited to the law of the Commonwealth of Virginia, the State of New York and the Federal law of the United States.

 Based upon the foregoing and upon such investigation as we have deemed necessary, we are of the following opinion: 
 1. PMI is a corporation duly organized, validly existing and in good standing under the laws of the Commonwealth of Virginia. 

2. The execution, delivery and performance by PMI of the Credit Agreement and the Notes, and the consummation of the transactions
contemplated thereby, are within PMI’s corporate powers, have been duly authorized by all necessary corporate action, and do not contravene (i) the Charter or the By-laws or (ii) any law, rule or regulation applicable to PMI
(including, without limitation, Regulation X of the Board of Governors of the Federal Reserve System) or (iii) to our knowledge, any contractual restriction binding on or affecting PMI. The Credit Agreement and any Notes delivered on the date
hereof have been duly executed and delivered on behalf of PMI. 
 3. No authorization, approval or other action by, and no
notice to or filing with, any governmental authority or regulatory body or any other third party is required for the due execution, delivery and performance by PMI of the Credit Agreement and the Notes. 
 4. The Credit Agreement is the legal, valid and binding obligation of PMI enforceable against PMI in accordance with its terms. The Notes
issued on the date hereof, if any, are the legal, valid and binding obligations of PMI, enforceable against PMI in accordance with their respective terms. 
 The opinion set forth in paragraph 4 above is subject to the effect of any applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws affecting creditors’ rights generally
and to the effect of general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law) and an implied covenant of good faith and fair dealing. 
 We express no opinion with respect to: 
 (A)
The effect of any provision of the Credit Agreement which is intended to permit modification thereof only by means of an agreement in writing by the parties thereto; 
 (B) The effect of any provision of the Credit Agreement insofar as it provides that any Person purchasing a participation from a Lender or other Person may exercise set-off or similar rights with respect to such
participation or that any Lender or other Person may exercise set-off or similar rights other than in accordance with applicable law; 
  

 2 

 (C) The effect of any provision of the Credit Agreement imposing penalties or forfeitures; 
 (D) The enforceability of any provision of the Credit Agreement to the extent that such provision constitutes a waiver of illegality as a defense to
performance of contract obligations; or 
 (E) The effect of any provision of the Credit Agreement relating to indemnification or exculpation
in connection with violations of any securities laws or relating to indemnification, contribution or exculpation in connection with willful, reckless or criminal acts or gross negligence of the indemnified or exculpated Person or the Person
receiving contribution. 
 In connection with the provisions of the Credit Agreement which relate to forum selection (including, without
limitation, any waiver of any objection to venue or any objection that a court is an inconvenient forum), we note that under NYCPLR § 510, a New York State court may have discretion to transfer the place of trial, and under 28 U.S.C. §
1404(a), a United States District Court has discretion to transfer an action from one Federal court to another. 
 This opinion is being
furnished to you pursuant to Section 3.1(d)(iii) of the Credit Agreement, is solely for the benefit of you and your counsel, and is not intended for, and may not be relied upon by, any other person or entity without our prior written consent.
We undertake no duty to inform you of events occurring subsequent to the date hereof. 
 Very truly yours, 
  

 3 

 EXHIBIT E-2 - FORM OF 
 OPINION OF COUNSEL 
 FOR PMI 
 [Effective Date] 
 To each of the Lenders party 
 to the Credit Agreement referred to below 
 Philip Morris International Inc. 
 Ladies and Gentlemen: 
 This opinion is furnished to you pursuant to Section 3.1(d)(iii) of the Credit Agreement, dated as of [4] December 2007 (the “Credit Agreement”), among Philip Morris International Inc.
(“PMI”), the Lenders party thereto and J.P. Morgan Europe Limited, as Facility Agent and Swingline Agent, and J.P. Morgan plc, Citigroup Global Markets Limited, Credit Suisse, Cayman Islands Branch, Deutsche Bank Securities Inc.,
Goldman Sachs Credit Partners L.P. and Lehman Brothers Inc., as Mandated Lead Arrangers and Bookrunners for such Lenders. Terms defined in the Credit Agreement are used herein as therein defined. 
 I have acted as counsel for PMI in connection with the preparation, execution and delivery of the Credit Agreement. 
 In that connection, I have examined originals, or copies certified to my satisfaction, of such corporate records of PMI, certificates of public officials
and of officers of PMI, and agreements, instruments and other documents, as I have deemed relevant and necessary as a basis for the opinions expressed below. As to questions of fact material to such opinions, I have, when relevant facts were not
independently established by me, relied upon certificates of PMI or its officers or of public officials. 
 Based upon the foregoing and upon
such investigation as I have deemed necessary, I am of the opinion that, to the best of my knowledge, (i) there is no pending or threatened action or proceeding against PMI or any of its Subsidiaries before any court, governmental agency or
arbitrator (a “Proceeding”) that purports to affect the legality, validity, binding effect or enforceability of the Credit Agreement or the Notes, if any, or the consummation of the transactions contemplated thereby, and
(ii) except for Proceedings disclosed in the Registration Statement on Form 10 and any amendments thereto filed by PMI with the U.S. Securities and Exchange Commission prior to [4] December 2007 and, with respect to Proceedings commenced after
the date of such filing but prior to [4] December 2007, a certificate delivered to the Lenders and attached hereto, there are no Proceedings that are likely to have a materially adverse effect upon the financial position or results of operations of
PMI and its Subsidiaries taken as a whole. 
 Very truly yours, 

 EXHIBIT F - FORM OF 
 OPINION OF COUNSEL 
 FOR DESIGNATED SUBSIDIARY 
 [Effective Date] 
 To each of the Lenders
party 
 to the Credit Agreement referred to below 
 Philip Morris International Inc. 
 Ladies and Gentlemen: 
 This opinion is furnished to you pursuant to Section 3.2(e) of the Credit Agreement, dated as of [4] December 2007 (the “Credit
Agreement”), among Philip Morris International Inc., the Lenders party thereto and J.P. Morgan Europe Limited, as Facility Agent and Swingline Agent, and J.P. Morgan plc, Citigroup Global Markets Limited, Credit Suisse, Cayman Islands
Branch, Deutsche Bank Securities Inc., Goldman Sachs Credit Partners L.P. and Lehman Brothers Inc., as Mandated Lead Arrangers and Bookrunners for such Lenders. Terms defined in the Credit Agreement are used herein as therein defined. 
 We have acted as counsel for
                         (the “Designated Subsidiary”) in connection with the preparation, execution and
delivery of the Designation Agreement. 
 In that connection, we have examined the following documents: 
 (1) The Designation Agreement. 
 (2) The Credit Agreement. 
 (3) The documents furnished by the Designated Subsidiary pursuant
to Article 3 of the Credit Agreement. 
 (4) The [Articles] [Certificate] of Incorporation of the Designated Subsidiary and
all amendments thereto (the “Charter”). 
 (5) The by-laws of the Designated Subsidiary and all amendments
thereto (the “By-laws”). 
 We have also examined the originals, or copies certified to our satisfaction, of such corporate records of the
Designated Subsidiary, certificates of public officials and of officers of the Designated Subsidiary, and agreements, instruments and other documents, as we have deemed relevant and necessary as a basis for the opinions expressed below. As to
questions of fact material to such opinions, we have, when relevant facts were not independently established by us, relied upon certificates of the Designated Subsidiary or its officers or of public officials. We have assumed the due execution and
delivery, pursuant to due authorization, of the Credit Agreement by the Initial Lenders and J.P. Morgan Europe Limited, as Facility Agent and 

 
Swingline Agent, and J.P. Morgan plc, Citigroup Global Markets Limited, Credit Suisse, Cayman Islands Branch, Deutsche Bank Securities Inc., Goldman Sachs
Credit Partners L.P. and Lehman Brothers Inc., as Mandated Lead Arrangers and Bookrunners. 
 Based upon the foregoing and upon such
investigation as we have deemed necessary, we are of the following opinion: 
 1. The Designated Subsidiary is a corporation
duly organized, validly existing and in good standing under the laws of                     . 
 2. The execution, delivery and performance by the Designated Subsidiary of the Designation Agreement and the Notes, if any, to be
delivered by it, the performance by the Designated Subsidiary under the Credit Agreement and the consummation of the transactions contemplated thereby, are within the Designated Subsidiary’s corporate powers, have been duly authorized by all
necessary corporate action, and do not contravene (i) the Charter or the By-laws or (ii) any law, rule or regulation applicable to the Designated Subsidiary (including, without limitation, Regulation X of the Board of Governors of the
Federal Reserve System) or (iii) to our knowledge, any contractual restriction binding on or affecting the Designated Subsidiary. The Designation Agreement and the Notes, if any, delivered by the Designated Subsidiary on the date hereof have
been duly executed and delivered on behalf of the Designated Subsidiary. 
 3. No authorization, approval or other action by,
and no notice to or filing with, any governmental authority or regulatory body or any other third party is required for the due execution, delivery and performance by the Designated Subsidiary of the Designation Agreement or the Notes, if any,
delivered by the Designated Subsidiary and the performance by the Designated Subsidiary under the Credit Agreement. 
 4. The
Designation Agreement and the Credit Agreement are the legal, valid and binding obligations of the Designated Subsidiary enforceable against the Designated Subsidiary in accordance with their respective terms. The Notes issued on the date hereof, if
any, by the Designated Subsidiary are the legal, valid and binding obligations of the Designated Subsidiary, enforceable against the Designated Subsidiary in accordance with their respective terms. 
 5. There is, to the best of my knowledge, no pending or threatened action or proceeding against the Designated Subsidiary or any of its
Subsidiaries before any court, governmental agency or arbitrator that purport to affect the legality, validity, binding effect or enforceability of the Designation Agreement, the Credit Agreement or any of the Notes delivered by the Designated
Subsidiary, if any, or the consummation of the transactions contemplated thereby. 
  

 2 

 The opinion set forth in paragraph 4 above is subject to the effect of any applicable bankruptcy,
insolvency, fraudulent conveyance, reorganization, moratorium or other laws affecting creditors’ rights generally and to the effect of general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at
law) and an implied covenant of good faith and fair dealing. 
 Very truly yours, 
  

 3 

 EXHIBIT G 
 FORM OF OPINION OF COUNSEL 
 FOR J.P. MORGAN EUROPE LIMITED, 
 AS FACILITY AND SWINGLINE AGENT 
 [Letterhead of
Simpson Thacher & Bartlett LLP] 
 [Effective Date] 
 J.P. Morgan Europe Limited, 
 as Facility and Swingline Agent 
 The Lenders listed on Schedule I hereto 
 which are parties to the Credit Agreement 
 on the date hereof 
 Re: 5-Year Revolving Credit Facility, 3-Year 
 Revolving
Credit Facility and 364-Day Term 
 Loan Facility dated as of [4] December 2007 
 (the “Credit Agreement”) among Philip Morris 
 International Inc. (the “Company”), the lending 
 institutions identified in the Credit Agreement

 (the “Lenders”), J.P. Morgan Europe Limited, 
 as Facility and Swingline Agent and J.P. 
 Morgan plc, Citigroup Global Markets 
 Limited, Credit Suisse, Cayman Islands 
 Branch, Deutsche Bank Securities Inc., 
 Goldman Sachs Credit Partners L.P. and 
 Lehman Brothers Inc., as Mandated Lead 
 Arrangers and Bookrunners 
 Ladies and Gentlemen: 
 We have acted as counsel to J.P. Morgan Europe Limited, as Facility and Swingline Agent, in connection with the preparation, execution and delivery of the Credit Agreement. 
 This opinion is delivered to you pursuant to Section 3.1(d)(iv) of the Credit Agreement. Terms used herein which are defined in the Credit Agreement
shall have the respective meanings set forth in the Credit Agreement, unless otherwise defined herein. 
 In connection with this opinion, we
have examined a copy of the Credit Agreement signed by the Company and by the Facility and Swingline Agent and the Lenders. 

 We also have examined the originals, or duplicates or certified or conformed copies, of such records,
agreements, instruments and other documents and have made such other investigations as we have deemed relevant and necessary in connection with the opinions expressed herein. As to questions of fact material to this opinion, we have relied upon
certificates of public officials and of officers and representatives of the Company. In addition, we have examined, and have relied as to matters of fact upon, the representations made in the Credit Agreement. 
 In rendering the opinion set forth below, we have assumed the genuineness of all signatures, the legal capacity of natural persons, the authenticity of
all documents submitted to us as originals, the conformity to original documents of all documents submitted to us as duplicates or certified or conformed copies, and the authenticity of the originals of such latter documents. 
 In rendering the opinion set forth below we have assumed that (1) the Credit Agreement is a valid and legally binding obligation of each of the
Lenders parties thereto, (2) the Company is duly organized and validly existing and in good standing under the laws of the jurisdiction in which it is organized and of each other jurisdiction in which the conduct of its business or ownership of
its property makes such qualification necessary, has the corporate power and authority to execute, deliver and perform its obligations under the Credit Agreement and has duly authorized, executed and delivered the Credit Agreement in accordance with
its Articles of Incorporation and By-laws or other similar organizational documents, and (3)(a) execution, delivery and performance by the Company of the Credit Agreement do not contravene its Articles of Incorporation or By-laws or other
similar organizational documents, (b) execution, delivery and performance by the Company of the Credit Agreement do not violate, or require any consent not obtained under, the laws of the jurisdiction in which it is organized or any other
applicable laws or regulations or any order, writ, injunction or decree of any court or other governmental authority binding on the Company, and (c) execution, delivery and performance by the Company of the Credit Agreement do not constitute a
breach or violation of, or require any consent not obtained under, any agreement or instrument which is binding upon the Company. 
 Based
upon and subject to the foregoing, and subject to the qualifications and limitations set forth herein, we are of the opinion that the Credit Agreement constitutes the valid and legally binding obligation of the Company, enforceable against the
Company in accordance with its terms. 
 Our opinion set forth above is subject to (i) the effects of bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium and other similar laws relating to or affecting creditors’ rights generally, (ii) general equitable principles (whether considered in a proceeding in equity or at law) and (iii) an implied
covenant of good faith and fair dealing. 
 We express no opinion with respect to: 
 (A) the effect of any provision of the Credit Agreement which is intended to permit modification thereof only by means of an agreement in writing by the
parties thereto; 
 (B) the effect of any provision of the Credit Agreement insofar as it provides that any Person purchasing a participation
from a Lender or other Person may exercise set-off or similar rights with respect to such participation or that any Lender or other Person may exercise set-off or similar rights other than in accordance with applicable law; 

 (C) the effect of any provision of the Credit Agreement imposing penalties or forfeitures; 
 (D) the enforceability of any provision of the Credit Agreement to the extent that such provision constitutes a waiver of illegality as a defense to
performance of contract obligations; or 
 (E) the effect of any provision of the Credit Agreement relating to indemnification or exculpation
in connection with violations of any securities laws or relating to indemnification, contribution or exculpation in connection with willful, reckless or criminal acts or gross negligence of the indemnified or exculpated Person or the Person
receiving contribution. 
 In connection with the provisions of the Credit Agreement which relate to forum selection (including, without
limitation, any waiver of any objection to venue or any objection that a court is an inconvenient forum), we note that under NYCPLR § 510, a New York State court may have discretion to transfer the place of trial, and under 28 U.S.C. §
1404(a), a United States District Court has discretion to transfer an action from one Federal court to another. 
 We are members of the Bar
of the State of New York, and we do not express any opinion herein concerning any law other than the law of the State of New York and the Federal law of the United States. 
 This opinion letter is rendered to you in connection with the above described transaction. This opinion letter may not be relied upon by you for any
other purpose, or relied upon by, or furnished to, any other person, firm or corporation without our prior written consent. This opinion letter may be furnished to, but may not be relied upon by, a regulatory authority entitled to receive it.

 Very truly yours, 

 EXHIBIT H - FORM OF 
 CONFIDENTIALITY AGREEMENT 
  

			
	To:	 	[NAME OF BANK]
		
	Date:	 	                        ,
20        
		
	Subject:	 	Philip Morris International Inc. Senior Unsecured $3,000,000,000 5-Year Revolving Credit Facility, $1,000,000,000 3-Year Revolving Credit Facility and EUR 1,500,000,000 364-Day Term Loan
Facility (collectively, the “Facilities”)

 In connection with the Facilities for Philip Morris International Inc. (the “Company”), you will be
receiving certain information which is non-public, confidential or proprietary in nature. That information and any other information, regardless of form, whether oral, written or electronic, concerning the Company, its subsidiaries or the Facilities
furnished to you by [NAME OF LENDER] or the Company or any of their respective Representatives in connection with the Facilities (at any time on, before or after the date of this Agreement), together with analyses, compilations or other materials
prepared by you or your Representatives which contain or otherwise reflect such information or your review of the Facilities is hereinafter referred to as the “Information.” As used herein, “Representatives” refers to affiliates,
directors, officers, employees, agents, auditors, attorneys, consultants or advisors. In consideration of your receipt of the Information, you agree that: 
  

	 	1.	You will not, without the prior written consent of the Company, use, either directly or indirectly, any of the Information except in connection with the Facilities.

  

	 	2.	You agree to reveal the Information only to your Representatives who need to know the Information for the purpose of evaluating the Facilities, who are informed by you of the
confidential nature of the Information, and who agree to be bound by the terms and conditions of this Agreement. You agree to be responsible for any breach of this Agreement by any of your Representatives and to indemnify and hold the Company,
Altria Corporate Services, Inc. (“Altria Corporate Services”) and their respective Representatives harmless from and against any and all liabilities, claims, causes of action, costs and expenses (including attorney fees and expenses)
arising out of the breach of this Agreement by you or your Representatives. 

  

	 	3.	Without the prior written consent of the Company or Altria Corporate Services, you shall not disclose to any person (except as otherwise expressly permitted herein) the fact that
the Information has been made available, that discussions are taking place between the Company, Altria Corporate Services and any financial institution concerning the Facilities, or any of the terms, conditions or other facts with respect thereto
(including the status thereof), or that the Facilities have been consummated. 

	 	4.	This Agreement shall be inoperative as to any portion of the Information that (i) is or becomes generally available to the public on a non-confidential basis through no fault
or action by you or your Representatives, or (ii) is or becomes available to you on a non-confidential basis from a source other than the Company, Altria Corporate Services, [NAME OF LENDER] or their respective Representatives, which source, to
the best of your knowledge, is not prohibited from disclosing such Information to you by a contractual, legal or fiduciary obligation to the Company, Altria Corporate Services, [NAME OF LENDER] or their respective Representatives.

  

	 	5.	You may disclose the Information at the request of any regulatory or supervisory authority having jurisdiction over you, provided that you request confidential treatment of such
Information to the extent permitted by law, provided that, insofar as practicable, you notify the Company and Altria Corporate Services in advance of such disclosure pursuant to the following paragraph. 

  

	 	6.	In the event that you or anyone to whom you transmit the Information pursuant to this Agreement becomes legally compelled to disclose any of the Information or the existence of the
Facilities, you shall provide the Company and Altria Corporate Services with notice of such event promptly upon your obtaining knowledge thereof (provided that you are not otherwise prohibited by law from giving such notice) so that the Company may
seek a protective order or other appropriate remedy. In the event that such protective order or other remedy is not obtained, you shall furnish only that portion of the Information that is legally required and shall disclose the Information in a
manner reasonably designed to preserve its confidential nature. 

  

	 	7.	In the event that discussions with you concerning the Facilities are discontinued or your relationship with [NAME OF LENDER] with respect to the Facilities is otherwise terminated,
you shall deliver to the Company the copies of the Information that were furnished to you by or on behalf of the Company and represent to the Company that you have destroyed all other copies thereof, provided that you may maintain copies of the
Information, subject to the terms of this Agreement, as required by law or regulations or document retention policies applicable to you. All of your obligations hereunder and all of the rights and remedies of the Company, Altria Corporate Services
and [NAME OF LENDER] hereunder shall survive any discontinuance of discussions, termination of your relationship or any return or destruction of the Information. 

  

	 	8.	You acknowledge that disclosure of the Information in violation of the terms of this Agreement could have material adverse consequences, and agree that, in the event of any breach
by you or your Representatives of this Agreement, the Company, Altria Corporate Services and their respective Representatives will be entitled to equitable relief (including injunction and specific performance) in addition to all other remedies
available to them at law or in equity. 

  

	 	9.	The obligations set forth in this Agreement shall survive until the earlier of (i) five years from the date of this Agreement or (ii) the termination of the Facilities.

	 	10.	This agreement shall be governed by, and construed in accordance with, the laws of the State of New York without consideration to its conflicts of laws provisions.

 This agreement is in addition to and does not supersede the confidentiality agreements contained in any credit agreements of any affiliate
of the Company to which you are a party. It is understood and agreed that the Company, Altria Corporate Services, [NAME OF LENDER] and their respective Representatives may rely on this Agreement. 
 ACCEPTED AND AGREED as of the date written above: 
 [NAME OF BANK] 
  

			
	By	 	  

	Name:	 	
	Title:Anti-Contraband and Anti-Counterfeit Agreement and General Release

 Exhibit 10.7 
 ANTI-CONTRABAND AND ANTI-COUNTERFEIT 
 AGREEMENT AND GENERAL RELEASE 
 dated as of 
 July 9, 2004 

 among 
 PHILIP MORRIS
INTERNATIONAL INC., 
 PHILIP MORRIS PRODUCTS INC., 
 PHILIP MORRIS DUTY FREE INC., and 
 PHILIP MORRIS WORLD TRADE SARL 
 THE EUROPEAN COMMUNITY 
 REPRESENTED
BY THE EUROPEAN COMMISSION 
 AND 
 EACH MEMBER STATE LISTED ON 
 THE SIGNATURE PAGES HERETO 

 TABLE OF CONTENTS 
  

					
		  	ARTICLE 1	  	
		  	DEFINITIONS	  	
	 Section 1.01
	  	Definitions.	  	3
			
		  	ARTICLE 2	  	
		  	PHILIP MORRIS INTERNATIONAL’S SALES AND DISTRIBUTION
PRACTICES	  	
			
	 Section 2.01
	  	EC Compliance Procedures.	  	11
	 Section 2.02
	  	Certification of Compliance with EC Compliance Protocols.	  	11
			
		  	ARTICLE 3	  	
		  	ANTI-CONTRABAND AND ANTI-COUNTERFEIT INITIATIVES	  	
			
	 Section 3.01
	  	Anti-Contraband and Anti-Counterfeit Initiatives.	  	13
	 Section 3.02
	  	Support for Anti-Contraband and Anti-Counterfeit Initiatives.	  	13
			
		  	ARTICLE 4	  	
		  	ANTI-CONTRABAND AND ANTI-COUNTERFEIT COOPERATION	  	
			
	 Section 4.01
	  	Contraband and Counterfeit Seizures.	  	14
			
		  	ARTICLE 5	  	
		  	TRACKING AND TRACING	  	
			
	 Section 5.01
	  	Tracking and Tracing Protocols.	  	22
	 Section 5.02
	  	Certification of Compliance with Tracking and Tracing Protocols.	  	23
			
		  	ARTICLE 6	  	
		  	REVIEW OF AGREEMENT	  	
			
	 Section 6.01
	  	Annual Meetings.	  	23
			
		  	ARTICLE 7	  	
		  	FULFILLMENT OF OBLIGATIONS AND OBJECTIVES	  	
			
	 Section 7.01
	  	Promotion of Public Policy.	  	23
	 Section 7.02
	  	Respect for Obligations.	  	23
	 Section 7.03
	  	Agreement Consistent with EC and Applicable National Laws.	  	24
	 Section 7.04
	  	The Parties’ Intentions.	  	24
			
		  	ARTICLE 8	  	
		  	REPRESENTATIONS AND WARRANTIES	  	
			
	 Section 8.01
	  	Mutual Representations.	  	24

  

 -i- 

					
		  	ARTICLE 9	  	
		  	RELEASE AND DISMISSAL OF CLAIMS	  	
			
	 Section 9.01
	  	Release.	  	25
	 Section 9.02
	  	Dismissal Of Claims.	  	26
			
		  	ARTICLE 10	  	
		  	SETOFF	  	
			
	 Section 10.01
	  	Right of Setoff	  	26
	 Section 10.02
	  	No Other Effect.	  	29
			
		  	ARTICLE 11	  	
		  	TERMINATION	  	
			
	 Section 11.01
	  	Termination.	  	30
	 Section 11.02
	  	Subsequent Agreement.	  	31
			
		  	ARTICLE 12	  	
		  	DISPUTE RESOLUTION	  	
			
	 Section 12.01
	  	The Role of the European Court of First Instance and the European Court of Justice.	  	32
	 Section 12.02
	  	Dispute Resolution for Claims Brought Under the Terms of the Agreement.	  	34
			
		  	ARTICLE 13	  	
		  	MISCELLANEOUS	  	
			
	 Section 13.01
	  	Notices.	  	35
	 Section 13.02
	  	Waivers.	  	35
	 Section 13.03
	  	Expenses.	  	35
	 Section 13.04
	  	Nature of Payments.	  	35
	 Section 13.05
	  	Successors and Assigns.	  	35
	 Section 13.06
	  	Legality and Severability.	  	36
	 Section 13.07
	  	Counterparts; Effectiveness; Third Party Beneficiaries.	  	36
	 Section 13.08
	  	Entire Agreement.	  	36
	 Section 13.09
	  	Captions.	  	37
	 Section 13.10
	  	Designated EC Representative.	  	37
	 Section 13.11
	  	Amendments.	  	37
	 Section 13.12
	  	Authorship.	  	37
	 Section 13.13
	  	Use of Information Provided by Philip Morris International.	  	37
	 Section 13.14
	  	Equal Treatment Provision.	  	37
	 Section 13.15
	  	Additional Participating Member States.	  	38
	 Section 13.16
	  	Use of the Agreement.	  	38

  

 -ii- 

 Attachments, Exhibits & Schedules 
  

			
	Appendix A	  	Fiscal Compliance Policy
	Appendix B	  	EC Compliance Protocols
	Appendix C	  	Philip Morris International’s Monetary Contributions
	Appendix D	  	Tracking and Tracing Protocols
	Appendix E	  	Schedule of Applicable Taxes and Duties
	Appendix F	  	Factors for Establishing Counterfeit Philip Morris Cigarettes
	Appendix G	  	List of Designated States
	Appendix H	  	Form of Dismissals
	Appendix I	  	List of Philip Morris Trademarks
	Appendix J	  	List of Arbitrators
	Appendix K	  	Amendments to the Baseline Amount and Article 4

  

 -iii- 

 ANTI-CONTRABAND AND ANTI-COUNTERFEIT 
 AGREEMENT AND GENERAL RELEASE 
 This Anti-Contraband and Anti-Counterfeit
Agreement and General Release dated as of July 9, 2004, (this “Agreement”) is made by and among the European Community (the “EC”) represented by the European Commission, the Member States of the EC that have
executed a copy of this Agreement and become parties hereto (the “Participating Member States”, and together with the EC, “the Relevant Administrations”) and Philip Morris International Inc., Philip Morris Products
Inc., Philip Morris Duty Free Inc. and Philip Morris World Trade SARL (collectively with the Relevant Administrations, “the Parties”). 
 WITNESSETH: 
 (1) WHEREAS, the smuggling of Cigarettes, both authentic and counterfeit,
results in great economic loss and causes other various harms to the Relevant Administrations; 
 (2) WHEREAS, the Relevant
Administrations are fully committed to combat the illegal introduction of both authentic and counterfeit Cigarettes into the Territory of the Member States; 
 (3) WHEREAS, Philip Morris International is committed to take commercially reasonable steps as a manufacturer of Cigarettes to promote the Parties’ joint objective that Philip Morris Cigarettes be sold,
distributed, stored, and shipped in accordance with all applicable fiscal and legal requirements, and, in particular, sold at retail in accordance with all applicable tax and duty laws in the intended retail market; 
 (4) WHEREAS, while the smuggling of certain authentic brands of Cigarettes other than Philip Morris brands continues in significant quantities,
for the last few years the incidence of bulk quantities of Contraband Philip Morris Cigarettes in the Member States has been greatly reduced, and during the same time period, there has been an increase in Cigarette counterfeiting activity such that
currently, there is a growing threat to the Relevant Administrations’ finances from the illegal importation and introduction of Counterfeit Philip Morris Cigarettes; 
 (5) WHEREAS, the Member States and Philip Morris International have a mutual interest in (1) eliminating the illegal importation, distribution and sale of Cigarettes and any related illegal activity,
(2) ensuring the collection of applicable taxes and duties on Cigarettes sold or distributed in the Territory of the Member States, including, without limitation, those that will be remitted wholly or in part to the EC by the Member States,
(3) protecting lawful competition in the sale of Cigarettes, (4) protecting the Trademark rights of legitimate Cigarette 

 
manufacturers, and (5) preventing citizens of the Member States from being misled about the source and quality of the Cigarettes they purchase; and
WHEREAS the EC has an interest in the foregoing insofar as they affect the interests of the EC and the achievement of the EC’s objectives; 
 (6) WHEREAS, by virtue of Article 3 and Article 23 of the EC Treaty, the EC is competent for matters relating to customs duties on the import and export of goods in Member States, and by virtue of Part 5, Title
II of the EC Treaty, the European Commission is obligated to ensure the orderly collection of the EC’s own resources; 
 (7)
WHEREAS, combating fraud and other illegal activities affecting the financial interests of the EC, including those resulting from the illegal Cigarette trade within the Territory of the Member States, is an obligation of the EC and Member States
under Article 280 of the EC Treaty; 
 (8) WHEREAS, pursuant to Article 10 of the EC Treaty, the Member States shall take all
appropriate measures, whether general or particular, to ensure fulfillment of the obligations arising out of the EC Treaty or resulting from action taken by the institutions of the EC and shall facilitate achievement of the objectives of the
EC’s tasks; 
 (9) WHEREAS, the EC and Member States, each within their respective competences and subject to budgetary
constraints, intend to continue and improve their efforts to combat the smuggling of authentic and Counterfeit Cigarettes and the illegal importation and introduction of said Cigarettes into the Territory of the Member States; 
 (10) WHEREAS, it is in the best interest of Philip Morris International for there to be an end to the illegal importation of Contraband and
Counterfeit Cigarettes into the Territory of the Member States and the counterfeiting of Philip Morris Cigarettes; 
 (11) WHEREAS,
Philip Morris International agrees to provide all reasonable assistance, both direct and indirect, as set forth herein, to the EC and the Member States in the fight against Contraband and Counterfeit Cigarettes, including in part, monetary payments;

 (12) WHEREAS, the EC and certain Member States commenced a civil action in the United States District Court for the Eastern
District of New York, entitled European Community, et al. v. RJR Nabisco, et al., under Civil Action No. 01-CV-5188 (NGG), asserting various claims for damages, costs and equitable relief, based in part on alleged sales of Philip Morris
Cigarettes in the Territory of the Member States in violation of applicable laws (such action, the “Civil Action”); 
  

 2 

 (13) WHEREAS, the Civil Action has been dismissed by the United States District Court (as to some
of the claims with prejudice and as to others without prejudice) and is currently the subject of an appeal (such appeal, together with the Civil Action, the “Litigation”); 
 (14) WHEREAS, pursuant to the mutual rights and obligations in this Agreement, the Parties agree that it is in the public interest, will further
advance their objectives, and will facilitate the achievement of their goals to swiftly resolve, finally and fully, in an amicable and cooperative manner without any admission of liability, all matters between the Parties that relate to the alleged
conduct, acts or omissions that were asserted or could have been asserted in the Litigation and any alleged Losses (as hereinafter defined) caused by such conduct, acts, or omissions; 
 (15) WHEREAS, the Parties acknowledge and agree to take all appropriate measures (1) to ensure fulfillment of their obligations under this
Agreement, (2) to facilitate the achievement of the objectives of the Agreement, and (3) to abstain from any measures that could jeopardize the attainment of the objectives of this Agreement; 
 NOW, THEREFORE, in consideration of the mutual obligations described herein, the sufficiency of which is hereby acknowledged, the Parties,
acting by and through their authorized agents, hereby memorialize and agree as follows: 
 ARTICLE 1 
 DEFINITIONS 
 Section 1.01
Definitions. 
 The following terms, as used herein, have the following meanings: 
 “Affiliate” means, with respect to any Person, any other legally related Person directly controlling, controlled by, or under common
control with, such other Person. For purposes of this definition, “control”, when used with respect to any Person, means the power to choose the Board of Directors and/or establish the policies of such Person, whether through the
ownership of voting securities or contract, and the terms “controlling” and “controlled” have meanings correlative to the foregoing. 
 “Agreement” shall have the meaning ascribed to it in the preamble of this Agreement. 
  

 3 

 “Anti-Contraband and Anti-Counterfeit Initiatives” shall have the meaning ascribed to it
in Section 3.01 of this Agreement. 
 “Applicant” shall have the meaning ascribed to it in the EC Compliance Protocols,
attached as Appendix B to this Agreement. 
 “Approved Contractor” means a Contractor approved by Philip Morris
International in accordance with the EC Compliance Protocols, attached as Appendix B to this Agreement. 
 “Arbitrator(s)”
shall have the meaning ascribed to it in Section 12.02(a) of this Agreement. 
 “Audit Order” shall have the meaning
ascribed to it in Section 2.02(d) of this Agreement. 
 “Baseline Amount” means 90 million Cigarettes, which is
half of the total combined Contraband Philip Morris Cigarettes seized by the Member States who were Member States on January 1, 2004, during the calendar years ended December 31, 2001, and December 31, 2002, but does not include
seizures of less than five Master Cases of Philip Morris Cigarettes. The Baseline Amount may be amended pursuant to Section 4.01(s) and (t) of this Agreement. 
 “Blocked Contractor” means a former Approved Contractor who is no longer authorized by Philip Morris International to conduct business relating to the sale, distribution, storage, or shipment of
Philip Morris Cigarettes in or through the Territory of the Member States or any Designated State. 
 “Carton” or
“Bundle” or “Outer” means a package containing 10 Packs of Cigarettes (approximately 200 Cigarettes total) and includes all input materials used in the assembly of such container such as cardboard, plastic wrap and
tear tapes. 
 “Certification of Compliance” shall have the meaning ascribed to it in Section 2.02(a) of this
Agreement. 
 “Cigarette” means any product that contains tobacco and is intended to be burned or heated under ordinary
conditions of use and includes, without limitation, any “roll-your-own” tobacco which, because of its appearance, type, packaging, or labeling is suitable for use and likely to be offered to, or purchased by, consumers as tobacco for
making cigarettes. For the purposes of this Agreement, 0.0325 ounces of “roll-your-own” tobacco shall be considered the equivalent of one individual Cigarette. 
 “Civil Action” shall have the meaning ascribed to it in the recitals of this Agreement. 
  

 4 

 “Compliance Order” shall have the meaning ascribed to it in Section 2.02(d) of this
Agreement. 
 “Contraband Cigarettes” means Cigarettes that have been imported into, distributed in, or sold in, the
Territory of a Member State, or were en route to the Territory of a Member State for sale in that Member State, in violation of the applicable tax, duty or other fiscal laws of that Member State or the EC, but, for purposes of this Agreement, shall
exclude Counterfeit Cigarettes. 
 “Contraband Philip Morris Cigarettes” means Philip Morris Cigarettes that have been
imported into, distributed in, or sold in, the Territory of a Member State, or were en route to the Territory of a Member State for sale in that Member State, in violation of the applicable tax, duty or other fiscal laws of that Member State or the
EC, but, for purposes of this Agreement, shall exclude Counterfeit Philip Morris Cigarettes. 
 “Contractor” means a First
Purchaser or any warehouser, shipper or freight forwarder engaged by Philip Morris International in connection with the storage or shipment of Philip Morris Cigarettes in or through the Territory of the Member States or a Designated State.

 “Counterfeit Cigarettes” means Cigarettes bearing a Trademark of a Cigarette manufacturer that are manufactured by a
third party without the consent of that Cigarette manufacturer, but shall in no event include (i) Cigarettes manufactured by the Trademark holder or any affiliate thereof, regardless of the actual or intended market of distribution,
(ii) Cigarettes bearing a Trademark of a Cigarette manufacturer using tobacco either produced by or sold by that Cigarette manufacturer, or (iii) Cigarettes bearing a Trademark of a Cigarette manufacturer that are packaged in genuine
packaging of that Cigarette Manufacturer, including genuine cartons and packs of that Cigarette manufacturer. 
 “Counterfeit Philip
Morris Cigarettes” means Cigarettes bearing a Philip Morris Trademark that are manufactured by a third party without the consent of Philip Morris, but shall in no event include (i) Cigarettes manufactured by Philip Morris or any
affiliate thereof, regardless of the actual or intended market of distribution, (ii) Cigarettes bearing a Trademark of Philip Morris using tobacco either produced by or sold by Philip Morris, or (iii) Cigarettes bearing a Trademark of
Philip Morris that are packaged in genuine Philip Morris packaging, including genuine Philip Morris cartons and packs. 
 “Designated
State” means any state listed in the Designated State List attached as Appendix G, which may be amended in accordance with the procedure therein. 
  

 5 

 “Due Diligence” means a reasonable state-of-the-art investigation conducted by Philip
Morris International before the commencement of a business relationship with a Person relating to the sale, distribution, storage, or shipment of Philip Morris Cigarettes in or through the Territory of the Member States or any Designated State, as
described in the EC Compliance Protocols, attached as Appendix B to this Agreement. 
 “Due Diligence Information” shall
have the meaning ascribed to it in the EC Compliance Protocols, attached as Appendix B to this Agreement. 
 “EC” shall have
the meaning ascribed to it in the preamble of this Agreement. 
 “EC Compliance Protocols” shall have the meaning ascribed
to it in Section 2.01 of this Agreement. 
 “EC Treaty” shall have the meaning ascribed to it in Section 7.03 of
this Agreement. 
 “Execution Date” means the later of (i) the date on which the signatures to this Agreement of all
the Relevant Administrations who are Plaintiffs in the Litigation have been delivered to Philip Morris International; or (ii) the date on which the signature to this Agreement of Philip Morris International has been delivered to the EC.

 “Expiration Date” means the 12th anniversary of the Execution Date. 
 “First Purchaser” means any Person, other than an Affiliate of Philip Morris International, to whom Philip Morris International directly
sells a quantity of Philip Morris Cigarettes in excess of 2,500 Master Cases annually for sale, distribution or consumption within or into the Territory of one or more of the Member States or any Designated State, and such Person’s Affiliates.

 “Fiscal Compliance Coordinator” shall have the meaning ascribed to it in the EC Compliance Protocols, attached as
Appendix B to this Agreement. 
 “Fiscal Compliance Policy” shall have the meaning ascribed to it in Section 2.01 of
this Agreement. 
 “Follow-up Due Diligence” shall have the meaning ascribed to it in the EC Compliance Protocols, attached
as Appendix B to this Agreement. 
 “Future Cooperation Agreement” shall have the meaning ascribed to it in
Section 13.14 of this Agreement. 
  

 6 

 “Identification Markings” means codes and markings on Philip Morris Cigarette packaging
placed on that packaging by Philip Morris International or its authorized agents, which correspond to information regarding those Cigarettes as set forth in the Tracking and Tracing Protocols, attached as Appendix D to this Agreement. 
 “Initial Participating Member States” means the Participating Member States that have executed a copy of the Agreement on or prior to
the Execution Date. 
 “Intended Market of Retail Sale” means the market which Philip Morris International intends as the
market of either domestic retail or duty-free retail sale for Philip Morris Cigarettes when Philip Morris International sells such Cigarettes to a First Purchaser. 
 “International Compliance Policy” shall have the meaning ascribed to it in the EC Compliance Protocols, attached as Appendix B to this Agreement. 
 “Litigation” shall have the meaning ascribed to it in recitals (12) and (13) of this Agreement. 
 “Losses” means the monetary and non-monetary losses and other injuries alleged to have been sustained as a result of the sale,
distribution, storage, or shipment of Contraband Philip Morris Cigarettes before the Execution Date, or for Subsequent Participating Member States, their respective Signature Dates, including any and all monetary and non-monetary losses and injuries
claimed or described by the EC and the Member States in paragraphs 39 through 40 of the Complaint dated August 3, 2001, filed in the Case entitled European Community, et al. v. RJR Nabisco, et al., case number 01-CV-5188 (NGG) .

 “Market of Interest” shall have the meaning ascribed to it in Protocol 6 of Appendix D to this Agreement. 
 “Master Case” means a case containing 10,000 Cigarettes. 
 “Member States” means States that are members of the European Union. 
 “Money
Laundering” means conduct in violation of 18 U.S.C. §§ 1956 or 1957 or the comparable provisions under the laws of the EC or the Member States. 
 “New Member State” means any Member State which, having submitted to the Council of the European Union an application for membership of the European Union and said application having been granted and
the State having acceded to the Treaty on European Union, has joined the European Union after January 1, 2004. 
  

 7 

 “Non-Participating Member States” means the Member States that are not a Party to this
Agreement. 
 “Notice of Interest” shall have the meaning ascribed to it in Protocol 6 Appendix D of this Agreement.

 “OLAF” means the Anti-Fraud Office of the European Commission or any successor thereof. 
 “Pack” means a small package containing approximately 20 cigarettes and includes all input materials used in the assembly of such
container such as cardboard, aluminum foil or metallized papers, plastic wrappings, tax stamps, and tear tapes. 
 “Participating
Member States” shall have the meaning ascribed to it in the Preamble of this Agreement. 
 “Person” means an
individual, corporation, partnership, limited liability company, association, trust or other entity or organization, including a government or political subdivision or an agency or instrumentality thereof. 
 “Philip Morris Cigarettes” means Cigarettes manufactured by Philip Morris or any of its Affiliates that manufacture Cigarettes, or
Cigarettes manufactured by licensees and bearing Philip Morris Trademarks as set forth in Appendix I. 
 “Philip Morris”
means Altria Group, Inc., f/k/a Philip Morris Companies Inc., and all of its current and former Affiliates, direct and indirect subsidiaries along with their direct and indirect subsidiaries, and/or any successors thereto, as well as all current and
former employees, directors, officers, and servants, including outside attorneys. 
 “Philip Morris International” means
Philip Morris International Inc. and its controlled subsidiaries, including without limitation Philip Morris Products Inc., Philip Morris Duty Free Inc. and Philip Morris World Trade SARL. 
 “Released Claims” shall have the meaning ascribed to it in Section 9.01(b) of this Agreement. 
 “Released Persons” shall have the meaning ascribed to it in Section 9.01(a) of this Agreement. 
 “Releasing Persons” shall have the meaning ascribed to it in Section 9.01(a) of this Agreement. 
  

 8 

 “Relevant Administrations” shall have the meaning ascribed to it in the Preamble of this
Agreement. 
 “Relevant Law” shall have the meaning ascribed to it in Section 13.06(a) of this Agreement. 

“Reporting System” shall have the meaning ascribed to it in the EC Compliance Protocols, attached as Appendix B to this Agreement.

 “Representatives of the Relevant Administrations” means OLAF or other authorized representatives duly designated by the
Relevant Administrations. 
 “Request for Termination” shall have the meaning ascribed to it in the EC Compliance Protocols,
attached as Appendix B to this Agreement. 
 “Retail Demand” means the estimated demand for Philip Morris Cigarettes in a
particular market to be sold at retail in that market in accordance with all applicable tax, duty or other fiscal laws. 
 “Sales
Plan” shall have the meaning ascribed to it in the EC Compliance Protocols, attached as Appendix B to this Agreement. 
 “seizure” means a seizure from a single individual or entity (or in certain specific instances, multiple individuals or entities if shown to be acting in concert with one another), in a single location (or in certain
specific instances, multiple locations in close proximity if shown to be part of the same scheme), at a single point in time, (or in certain specific instances, multiple points in time in close proximity if shown to be part of the same scheme).

 “Signature Date” means, for each Initial Participating Member State the Execution Date and for each Subsequent
Participating Member State, the date on which that Participating Member State executed a copy of the Agreement. 
 “Sold by a
Retailer” means (i) the sale of Cigarettes by an authorized retailer to a customer in which all applicable Member State excise and VAT taxes on the retail price in the location of sale have been paid or accounted for in the sale price,
or (ii) sales to a customer that has ordered 50 packs of Cigarettes or less through the use of the Internet or other means whereby the seller is not in the physical presence of the customer when the sale is made. 
 “Statement of Non-Compliance” shall have the meaning ascribed to it in Section 2.02(b) of this Agreement. 
 “Subsequent Participating Member States” means the Participating Member States that have executed a copy of the Agreement after the
Execution Date. 
  

 9 

 “Subsequent Purchaser” means any Person and such Person’s Affiliates, other than an
Affiliate of Philip Morris, who acquires more than 1,000 Master Cases of Philip Morris Cigarettes annually from sources other than Philip Morris International. 
 “Sufficient Evidence” shall have the meaning ascribed to it in the EC Compliance Protocols, attached as Appendix B to this Agreement. 
 “Supplemental Payments” means the payments by Philip Morris International that are to be made, without regard to fault, in accordance
with Section 4.01(f) and 4.01(g) of this Agreement, to compensate the Relevant Administrations for their lost taxes and duties and other costs, as well as to provide a source of additional funding for anti-contraband enforcement, in the event
of a seizure of Contraband Philip Morris Cigarettes. 
 “Territory of the Member States” means the customs territory of the
EC, as defined in Article 3 of Council Regulation (EEC) No. 2913/92 establishing the Community Customs Code, including, for the avoidance of doubt, the free zones, free ports and duty-free areas physically situated therein as well as the Aland
Islands. 
 “Territory of a Non-Participating Member State” means the territory of a Non-Participating Member State, as
defined in Article 3 of Council Regulation (EEC) No. 2913/92 establishing the Community Customs Code, including, for the avoidance of doubt, the free zones, free ports and duty-free areas physically situated therein. 
 “Territory of a Participating Member State” means the territory of a Participating Member State, as defined in Article 3 of Council
Regulation (EEC) No. 2913/92 establishing the Community Customs Code, including, for the avoidance of doubt, the free zones, free ports and duty-free areas physically situated therein, as well as the Aland Islands. 
 “Tracking and Tracing Protocols” shall have the meaning ascribed to it in Section 5.01 of this Agreement, and are attached as
Appendix D to this Agreement. 
 “Termination Order” shall have the meaning ascribed to it in the EC Compliance Protocols,
attached as Appendix B to this Agreement. 
 “Trademark” means a brand name (alone or in conjunction with any other word),
logo, symbol, or any other indicia of product identification. 
  

 10 

 “Vice President for Compliance Systems” shall have the meaning ascribed to it in the EC
Compliance Protocols, attached as Appendix B to this Agreement. 
 “World Wide Duty Free” means the worldwide market in
which Philip Morris Cigarettes are sold by Philip Morris International for resale to retail consumers entitled to purchase free of domestic taxation. 
 ARTICLE 2 
 PHILIP MORRIS INTERNATIONAL’S
SALES AND DISTRIBUTION PRACTICES 
 Section 2.01 EC Compliance
Procedures. 
 Philip Morris International has already undertaken as a matter of company policy to comply with the principles set forth in
the Philip Morris Companies Inc. Policy Statement on Compliance with Fiscal, Trade and Anti-Money Laundering Laws dated September 13, 1999 (the “Fiscal Compliance Policy”), a copy of which is attached as Appendix A to this
Agreement. In addition to the provisions in Appendix A, Philip Morris International agrees to adopt, implement, and be bound by protocols, approved with the EC, regarding the sale, distribution, storage, and shipment of Philip Morris Cigarettes in
and through the Territory of the Member States or any Designated State (the “EC Compliance Protocols”), which are attached as Appendix B to this Agreement. 
 Section 2.02 Certification of Compliance with EC Compliance Protocols. 
 (a) Each year, on the anniversary of the Execution Date, Philip Morris International shall provide the Relevant Administrations with a report, signed by
the Vice President for Compliance Systems, describing Philip Morris International’s fulfillment of the requirements of (i) the EC Compliance Protocols, which are set forth in Appendix B of this Agreement, and (ii) the Tracking and
Tracing Protocols, which are set forth in Article 5 and Appendix D of this Agreement (the “Certification of Compliance”). 
 (b) If, after receipt of any Certification of Compliance, OLAF reasonably concludes that Philip Morris International is failing to perform its obligations under the EC Compliance Protocols or the Tracking and Tracing Protocols, it may, but
by no later than 60 days after OLAF has received the Certification of Compliance, provide Philip Morris International with a statement clearly describing the areas where OLAF reasonably believes that Philip Morris International is failing to perform
its obligations under the EC Compliance Protocols or the Tracking and Tracing Protocols, OLAF’s reasons for that belief, and what measures OLAF believes Philip Morris International must take in order 

  

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to perform its obligations under the EC Compliance Protocols (the “Statement of Non-Compliance”). 
 (c) OLAF may also provide Philip Morris International with a Statement of Non-Compliance at any other time it reasonably believes that Philip Morris
International is significantly failing to adhere to the EC Compliance Protocols or the Tracking and Tracing Protocols and such failure could likely result in a significant increase in the volume of Contraband Philip Morris Cigarettes. 
 (d) Within 30 days of receiving a Statement of Non-Compliance, under subsections (b) or (c) above, Philip Morris International must provide
OLAF with a written response. Thereafter, authorized representatives of Philip Morris International and the European Commission shall meet and confer and attempt to resolve in good faith any dispute relating to the Statement of Non-Compliance. If
the dispute has not been resolved within 60 days of Philip Morris International receiving a Statement of Non-Compliance, the European Commission may bring the dispute before the Arbitrator in accordance with Section 12.02 of this Agreement and
may seek an order from the Arbitrator requiring Philip Morris International to bring itself into compliance with the EC Compliance Protocols or the Tracking and Tracing Protocols, as the case may be, (a “Compliance Order”) and/or an
order requiring Philip Morris International to permit OLAF to conduct an audit of Philip Morris International in order to determine what Compliance Orders may be required (an “Audit Order”). 
 (e) An Audit Order issued under this Section shall specifically require Philip Morris International to do the following and only the following:

 (i) if OLAF seeks entry into premises, allow OLAF entry to any of its business premises or business premises of its
Affiliates, for the sole purpose of observing business operations, provided that OLAF provides Philip Morris International with reasonable notice of where and when it seeks to do so; and 
 (ii) if OLAF seeks to review documents, Philip Morris International shall provide OLAF with specified business records created after the
Execution Date, that OLAF reasonably believes will assist in its anti-contraband and anti-counterfeit efforts. 
 (f) In any proceeding
brought under Section 2.02(d), the Arbitrator may issue a Compliance Order or an Audit Order to Philip Morris International only when it has been proven by the greater weight of the evidence that (i) Philip Morris International has
materially failed to adhere to the EC Compliance Protocols and/or the Tracking and Tracing Protocols, (ii) such failure was 

  

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identified by OLAF in its Statement of Non-Compliance, and (iii) such failure has not been adequately remedied by the time of the arbitration hearing.

 ARTICLE 3 
 ANTI-CONTRABAND AND ANTI-COUNTERFEIT INITIATIVES 
 Section 3.01 Anti-Contraband and Anti-Counterfeit Initiatives. 
 (a) It is the policy of the EC and the Member States to
vigorously combat the introduction, sale and distribution of Contraband Cigarettes and Counterfeit Cigarettes within or through the Territory of the Member States. Subject to budgetary constraints, the EC intends to intensify efforts to curb the
introduction, sale and distribution of Contraband Cigarettes and Counterfeit Cigarettes; apply appropriate equipment for monitoring and tracking the introduction, sale, distribution, storage, and shipment of Contraband Cigarettes and Counterfeit
Cigarettes; and continue to train law-enforcement personnel in how best to detect and seize Contraband Cigarettes and Counterfeit Cigarettes. 
 Section 3.02 Support for Anti-Contraband and Anti-Counterfeit Initiatives. 
 (a) Recognizing that it is in the best
interest of Philip Morris International for there to be an end to the illegal importation and introduction of Contraband Cigarettes and Counterfeit Cigarettes into the Territory of the Member States and an end to the counterfeiting of Philip Morris
Cigarettes, Philip Morris International agrees to provide reasonable assistance, both direct and indirect, to the EC and the Member States in the fight against Contraband Cigarettes and Counterfeit Cigarettes, as set forth in Section 4.01,
Appendix B, Appendix C, and Appendix D. The monetary payments under this Agreement may serve as a source of additional funding for anti-contraband and anti-counterfeit initiatives. 
 (b) Subject to Article 10 of this Agreement, for any dispute relating to a payment that has been or will be provided by Philip Morris International in
accordance with this Section 3.02 or Appendix C (Philip Morris International’s Monetary Contributions), the Parties involved in the dispute shall meet and confer in an attempt to resolve the dispute in good faith. If the dispute has not
been resolved within 60 days of a Party receiving formal notice of such a dispute, any Party involved in the dispute may refer the dispute to the Arbitrator(s) in accordance with Section 12.02 of this Agreement. 
  

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 ARTICLE 4 
 ANTI-CONTRABAND AND ANTI-COUNTERFEIT COOPERATION 
 Section 4.01 Contraband and Counterfeit Seizures. 
 Subject to the limitations in subsections
(k)-(u) below, for seizures of Cigarettes bearing Philip Morris Trademarks by the Member States after the Execution Date, the Parties agree to the following procedures: 
 (a) Within 30 days after notification to OLAF of a seizure by a Member State of five Master Cases or more of Cigarettes bearing Philip Morris Trademarks,
OLAF may provide Philip Morris International with a notice of seizure, which shall include: 
 (i) the date, time and location
of the seizure; 
 (ii) the brand of seized Cigarettes indicated on the packaging and, if available, any indication of the
Intended Market of Retail Sale; 
 (iii) the quantity of seized Cigarettes; 
 (iv) any Identification Markings that appear on the Master Cases or cartons of the seized Cigarettes; and 
 (v) as to seizures made by the Member States outside the Territory of the Member States, the basis of the seizing Member State’s
belief that the Cigarettes seized were destined for introduction into the Territory of the Member States. 
 (b) Philip Morris International
shall be permitted to inspect the seized Cigarettes in the condition they were in at the time of seizure within 30 days after transmittal of the notice of seizure described in subsection (a) above, and to select random samples of the seized
Cigarettes for examination. The seizing authority may also select samples which Philip Morris International must examine. 
 (c) Within 30
days after the inspection of the seized Cigarettes described in subsection (b) above, Philip Morris International shall provide a written response to OLAF stating whether the Cigarettes are Philip Morris Cigarettes or Counterfeit Philip Morris
Cigarettes. 
 (d) Subject to the limitations in subsections (k)-(u) below, where notice of seizure described in subsection
(a) above has been delivered reasonably in accordance with the requirements of subsection (a) above, if the Cigarettes are determined by Philip Morris International to be Counterfeit Philip Morris Cigarettes, its response shall include
documentation and examination results demonstrating that conclusion. The determination as to whether Cigarettes are 

  

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Counterfeit Philip Morris Cigarettes or Philip Morris Cigarettes shall involve a consideration of the factors set forth in Appendix F to this Agreement,
which shall be amended by agreement between the Parties as new technologies and techniques are developed. 
 (e) Subject to the limitations
in subsections (k)-(u) below, where notice of seizure described in subsection (a) above has been delivered reasonably in accordance with the requirements of subsection (a) above, if the seized Cigarettes are Contraband Philip Morris
Cigarettes manufactured after January 1, 2004, Philip Morris International’s response shall include as much information as is available to it concerning: 
 (i) the place of manufacture of the seized Cigarettes; 
 (ii) the date of manufacture of the seized Cigarettes; 
 (iii) the country of intended destination for the seized Cigarettes; 
 (iv) any intervening warehousing and shipping; 
 (v) the identity of the First Purchaser of the seized Cigarettes; 
 (vi) the identity of any known Subsequent Purchaser of the seized Cigarettes; 
 (vii) invoices to the First Purchaser that relate to the seized Cigarettes; and 
 (viii) payment records from the First Purchaser for any Cigarettes seized. 
 (f) Subject to the limitations in subsections (k)-(u) below, where notice of seizure described in subsection (a) above has been delivered
reasonably in accordance with the requirements of subsection (a) above, for seizures of Contraband Philip Morris Cigarettes by an Initial Participating Member State after the Execution Date or by a Subsequent Participating Member State after
its Signature Date, the response of Philip Morris International shall also include a Supplemental Payment calculated as follows: 
 (i) Philip Morris International shall make a Supplemental Payment to compensate the EC and the Participating Member State by which the Cigarettes were seized for their lost taxes and duties and other costs, in an amount equal to 100% of the
taxes and duties that would have been assessed had the seized Contraband Philip Morris Cigarettes been legally distributed for retail sale in the Participating Member State by 

  

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which the Cigarettes were seized as set forth in Appendix E, which shall be updated by the Relevant Administrations upon notice to Philip Morris
International as applicable taxes and duties change, less any amount of taxes and duties already paid to the EC or any Member State(s) in relation to those Contraband Philip Morris Cigarettes; and 
 (ii) If the Contraband Philip Morris Cigarettes seized, when added to the number of Contraband Philip Morris Cigarettes already seized in
the same calendar year in the Member States that were Member States on January 1, 2004, results in a total number that exceeds the Baseline Amount, Philip Morris International’s Supplemental Payment shall include an additional amount equal
to four times the amount under subsection (f)(i), which shall compensate the EC and the Participating Member State by which the Cigarettes were seized for any costs not compensated by the amount under subsection (f)(i) and which may provide the EC
and the Participating Member State by which the Cigarettes were seized with a source of additional funding for anti-contraband and anti-counterfeit efforts. 
 (g) Subject to the limitations in subsections (k)-(u) below, where notice of seizure described in subsection (a) above has been delivered reasonably in accordance with the requirements of subsection
(a) above, for seizures of Contraband Philip Morris Cigarettes after the Execution Date by a Non-Participating Member State, the response of Philip Morris International shall also include a Supplemental Payment calculated as follows:

 (i) Philip Morris International shall make a Supplemental Payment to compensate the EC for any lost taxes and duties and
other costs, in an amount equal to 100% of the taxes and duties that would have been remitted to the EC in respect of such seized Contraband Philip Morris Cigarettes had such Cigarettes been legally distributed for retail sale in the
Non-Participating Member State by which the Cigarettes were seized as set forth in Appendix E, less the EC’s share of any amount of taxes and duties already paid to the EC or any Member State(s) in relation to those Contraband Philip Morris
Cigarettes, and 
 (ii) If the Contraband Philip Morris Cigarettes seized, when added to the number of Contraband Philip
Morris Cigarettes already seized in the same calendar year in the Member States that were Member States on January 1, 2004, results in a total number that exceeds the Baseline Amount, Philip Morris International’s Supplemental Payment
shall include an additional amount equal to four times the amount under subsection (g)(i), which shall compensate the EC for any costs not compensated by the amount under subsection (g)(i) and which may 

  

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provide the EC with a source of additional funding for anti-contraband and anti-counterfeit efforts. 
 (h) For the Supplemental Payments to be made pursuant to subsections (f) and (g) above, it shall not be incumbent on the Relevant
Administrations to establish fault on the part of Philip Morris International and such payments, if due, shall be made even though Philip Morris International shall have complied in all respects with its obligations under this Agreement relating to
anti-contraband efforts and initiatives. 
 (i) The Parties recognize and understand that the mere fact of seizure of Contraband Philip
Morris Cigarettes at any point in the distribution chain does not, in and of itself, automatically implicate Philip Morris International, or the First Purchaser to whom the seized Philip Morris Cigarettes were originally sold, as a violator of any
applicable tax or duty laws. 
 (j) OLAF or any Participating Member State may sample and test seized Cigarettes at any time. If OLAF
disputes the determination made by Philip Morris International as to whether the seized goods are Counterfeit Philip Morris Cigarettes or Contraband Philip Morris Cigarettes, OLAF shall reply in writing to Philip Morris International detailing the
basis for the dispute within 60 days after receiving the response referred to in Section 4.01(c), and thereafter Philip Morris International and OLAF shall meet and confer and attempt to resolve the dispute in good faith. If the dispute cannot
be resolved within 30 days of Philip Morris International receiving OLAF’s reply, the samples in dispute shall be submitted to an independent laboratory or facility for examination to determine whether the Cigarettes are Counterfeit Philip
Morris Cigarettes or Contraband Philip Morris Cigarettes in accordance with the factors set forth in Appendix F to this Agreement. The determination of the selected independent laboratory or facility as to whether the Cigarettes are Contraband
Philip Morris Cigarettes or Counterfeit Philip Morris Cigarettes shall be final and binding on the Parties. The costs of the laboratory or facility’s services shall be paid by the non-prevailing Party. The independent laboratory or facility
shall be designated by mutual agreement of the Parties on the Execution Date. If a dispute arises with respect to the selection of the independent laboratory or facility, such dispute shall be settled by the Arbitrator in accordance with
Section 12.02 of the Agreement. 
 (k) Notwithstanding any other provision in this Section 4.01 to the contrary, Philip Morris
International shall have no obligation to make Supplemental Payments pursuant to subsections (f) and (g) above, and Contraband Philip Morris Cigarettes shall not be included in the calculations to determine the amount of any Supplemental
Payment described in subsections (f) and (g) above, where: 
  

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 (i) the notice of seizure described in subsection (a) above has not been delivered
reasonably in accordance with the requirements of subsection (a) above; 
 (ii) Philip Morris International has not been
permitted to inspect the seized Cigarettes in substantial accordance with the requirements of subsection (b) above, or the seizing authority has determined that the seized Cigarettes are not Contraband Philip Morris Cigarettes as evidenced by
the release of the seized Cigarettes; 
 (iii) the total volume of Contraband Philip Morris Cigarettes seized in the
particular seizure was less than five Master Cases of cigarettes after exclusion of any amount excluded by the seizing authority or a court pursuant to Article 8 of Directive 92/12 by virtue of having been acquired in another Member State for
“own use” and transported by the purchaser; 
 (iv) the Contraband Philip Morris Cigarettes were manufactured prior
to January 1, 2004; 
 (v) the Contraband Philip Morris Cigarettes were stolen by a third party and Philip Morris
International can reasonably demonstrate that such theft has occurred; 
 (vi) the Contraband Philip Morris Cigarettes were
seized by a Member State outside of the Territory of the Member States and the greater weight of the evidence demonstrates that the Cigarettes seized were not destined for introduction into the Territory of the Member States; or 
 (vii) the Contraband Philip Morris Cigarettes were seized by a Member State and Philip Morris International can reasonably demonstrate
that such Contraband Philip Morris Cigarettes were sold, distributed, stored, and shipped in accordance with all applicable fiscal and legal requirements of the EC and a Member State, or were Sold by a Retailer. 
 (l) For any dispute relating to (i) application of the provisions in subsection (k) above, (ii) the amount, if any, of a payment to be
made under subsections (f) and (g) above, or (iii) the determination of the appropriate Member State by which the Cigarettes were seized, the Parties involved in the dispute shall meet and confer in an attempt to resolve the dispute
in good faith. If the dispute has not been resolved within 60 days of a Party receiving formal notice of such a dispute, any Party involved in the dispute may refer the dispute to the Arbitrator for settlement in accordance with the provisions of
Section 12.02 of this Agreement. 
  

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 (m) If a Member State or the EC accepts a Supplemental Payment in regard to a particular seizure of
Philip Morris Cigarettes and later collects duties or taxes or the monetary equivalent from Philip Morris in regard to that particular seizure, the Member State or the EC shall promptly refund to Philip Morris International the amount of the
Supplemental Payment that had been paid equal to the duty and taxes or the monetary equivalent collected or paid as well as any corresponding portion of the amounts, if any, paid under subsections (f)(ii) or (g)(ii). 
 (n) If a Member State or the EC accepts a Supplemental Payment in regard to a particular seizure of Philip Morris Cigarettes and it is later found that
duties and taxes or the monetary equivalent had already been paid with regard to that particular seizure, the Member State or the EC shall promptly refund to Philip Morris International the amount of the Supplemental Payment that had been paid equal
to the duty and taxes or the monetary equivalent collected or paid as well as any corresponding portion of the amounts paid, if any, under subsections (f)(ii) or (g)(ii). 
 (o) Notwithstanding any other provision in this Agreement, other than subsections (p), (t), and (u) below, for seizures of Contraband Philip Morris Cigarettes in a New Member State, 
 (i) in the first year following that New Member State’s accession to the European Union, no Supplemental Payment shall be payable by
Philip Morris International and any such seizures shall not be counted against the Baseline Amount for the purpose of any other calculation under subsections (f) or (g) above. 
 (ii) Notwithstanding subsections (iii) and (iv) below, after adjustment of the Baseline Amount in accordance with subsection
(s) below, Supplemental Payments shall be payable by Philip Morris International under subsections (f)(i), and/or (f)(ii) in the case of a Subsequent Participating Member State as applicable, or, (g)(i), and/or (g)(ii) in the case of a
Non-Participating Member State as applicable, and such seizures shall be counted against the Baseline Amount for the purpose of any other calculation under subsections (f) or (g) above, beginning in the year following the year in which the
incidence of Contraband Cigarettes and Counterfeit Cigarettes in that New Member State is determined to be less than 2% of the total market for Cigarettes in that New Member State. 
 (iii) in each of the second, third, fourth and fifth years following that New Member State’s accession to the European Union, in the
event that a New Member State does not satisfy subsection (ii) above, a Supplemental Payment shall be payable by Philip Morris International 

  

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only under subsections (f)(i) in the case of a Subsequent Participating Member State as applicable and/or (g)(i) in the case of a Non-Participating Member
State as applicable, and only if in that year: 
 (A) the incidence of Contraband Cigarettes and Counterfeit Cigarettes in
that New Member State is determined to be: 
 (1) 12% or less (for the second year following accession); 
 (2) 10% or less (for the third year following accession); 
 (3) 7% or less (for the fourth year following accession); 
 (4) 5% or less (for the fifth year following accession); 
 of the total market for Cigarettes in that New Member State; or 
 (B) the incidence of Contraband Cigarettes and Counterfeit Cigarettes in that New Member State is determined to be more than the
thresholds set forth in subsection (A) above, but the incidence of Contraband Philip Morris Cigarettes divided by the total incidence of Contraband Cigarettes and Counterfeit Cigarettes in that New Member State, expressed as a percentage, is
greater than 70% of (x) the total tax-paid retail sales of Philip Morris Cigarettes divided by (y) the total tax-paid retail Cigarette sales in that New Member State, expressed as a percentage. 
 (iv) from the sixth year following a New Member State’s accession to the European Union, Supplemental Payments shall be payable by
Philip Morris International and any such seizures shall be counted against the Baseline Amount for the purpose of any other calculation under subsections (f) or (g) above, only if the incidence of Contraband Cigarettes and Counterfeit
Cigarettes as a percentage of the total market for Cigarettes in that New Member State has been determined to be less than or equal to the incidence of Contraband and Counterfeit Cigarettes in the Initial Participating Member States as a percentage
of the total market for Cigarettes in the Initial Participating Member States, in the fifth year following the New Member State’s accession as determined pursuant to subsection (q). 
  

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 (p) In addition to the limitations on Supplemental Payments set forth in subsection (o) above, for
the first five years following a New Member State’s accession to European Union, if Contraband Philip Morris Cigarettes are seized in a New Member State and the amount of those Contraband Philip Morris Cigarettes when added to the number of
Contraband Philip Morris Cigarettes already seized in the same calendar year in all the New Member States that joined the European Union in the same year as the seizing New Member State, results in a total number that exceeds the Baseline Amount as
of January 1, 2004, Philip Morris International shall have no obligation to make Supplemental Payments for that seizure. In relation to any New Member State that joins the European Union after January 1, 2007, the Parties shall agree on a
method for determining how this subsection (p) shall operate. 
 (q) For the purposes of subsections (o) and (p) above, the
incidence of Contraband Cigarettes and Counterfeit Cigarettes in any New Member State and in the Initial Participating Member States in accordance with subsection (o)(iv) above shall be determined by a methodology agreed to by the Parties.

 (r) If a Member State or any subdivision thereof sells or resells, or authorizes the sale or resale of, seized Contraband Philip Morris
Cigarettes no Supplemental Payment is due in relation to such Cigarettes and, if paid, any such Supplemental Payment shall be refunded. 
 (s) If a New Member State, upon or after accession to the European Union, joins the Agreement and becomes eligible for Supplemental Payments under subsection (f)(ii), Philip Morris International and the European Commission shall, with
regard to the factors set forth in Appendix K, meet and confer as to when and how the Baseline Amount shall be amended or recalculated. If no agreement is reached, the Arbitrator, pursuant to Section 12.02 of this Agreement, shall determine the
appropriate amendment to, or recalculation of, the Baseline Amount, with due regard to the factors set forth in Appendix K. No payments shall be made under subsection (f)(ii), however, until an amended Baseline Amount shall have been established.

 (t) If at any time, a Party asserts that there is a serious persisting problem concerning Contraband Cigarettes or Counterfeit Cigarettes
entering into a New Member State, which could bring about serious imbalances in the application of the Agreement, Philip Morris International and the EC shall meet and discuss as soon as reasonably possible any appropriate measures to ensure the
continued functioning of the Agreement, including, if necessary, amendment or suspension of Philip Morris International’s obligations under Article 4 as to that New Member State. If no agreement is reached, the Arbitrator, pursuant to
Section 12.02 of this Agreement, shall determine the appropriate amendment or relief, with due regard to the factors set forth in Appendix K. 
  

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 (u) If at any time, a Party asserts that there is a serious persisting problem concerning seizures of
Contraband Philip Morris Cigarettes in a Participating Member State who was a Member State on January 1, 2004, which could bring about serious imbalances in the application of the Agreement, Philip Morris International and the European
Community shall meet and discuss as soon as reasonably possible any appropriate measures to insure the continuing functioning of the Agreement, including, if necessary, amendment of Philip Morris International’s obligations under Article 4 as
to that Member State. If no agreement is reached, the Arbitrator, pursuant to Section 12.02 of this Agreement, shall determine the appropriate amendment or relief, with due regard to the factors set forth in Appendix K. 
 For purposes of this Section, it shall be presumed that a serious persisting problem exists if Philip Morris International can reasonably demonstrate that: 

(i) For a substantial period of time, seizures in a Member State significantly exceed the seizures by that Member State in 2003 so as
to materially deviate from the expectations of the Parties, and 
 (ii) More than fifty percent of the seized Cigarettes for
which Supplemental Payments are made are Cigarettes which were sold at retail and the applicable taxes on the retail price of the Cigarettes were paid in either a New Member State of the European Community or a non-Member State outside the European
Community. 
 If the increase in the incidence of Contraband Philip Morris Cigarettes in the aforesaid Member State is substantially attributable to a
failure on the part of Philip Morris International to adhere to the terms of this Agreement, and/or its failure to sell Cigarettes into a market consistent with legitimate Retail Demand in that market, amendment of Article 4 obligations is not
appropriate. 
 ARTICLE 5 
 TRACKING AND TRACING 
 Section 5.01 Tracking and Tracing Protocols.

 Consistent with its Fiscal Compliance Policy and applicable packaging laws, Philip Morris International agrees to adopt, implement,
maintain and be bound by the commercially reasonable practices and procedures with respect to the tracking and tracing of shipments of Philip Morris Cigarettes after the Execution Date as set forth in the “Tracking and Tracing
Protocols” attached as Appendix D. 
  

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 Section 5.02 Certification of Compliance with Tracking and Tracing Protocols. 
 (a) Each year, on the anniversary of the Execution Date, Philip Morris International shall provide the Relevant Administrations with a report, signed by
the Vice President for Compliance Systems, describing Philip Morris International’s compliance with the requirements of the Tracking and Tracing Protocols. Such certification shall be part of the annual Certification of Compliance and shall be
governed by the procedures set forth in Section 2.02 of this Agreement. 
 ARTICLE 6 
 REVIEW OF AGREEMENT 
 Section 6.01 Annual Meetings. 
 At least once per year, the authorized representatives of Philip
Morris International and the European Commission shall meet to confer and assess the functioning of the Agreement and its Protocols. At that meeting, Philip Morris International and the European Commission may each present any suggestions they may
have to improve the functioning of the Agreement. Subject to Relevant Law, the European Commission and Philip Morris International may communicate to each other concerns relating to any Party’s activities in connection with their commitments
and obligations under the Agreement. 
 ARTICLE 7 
 FULFILLMENT OF OBLIGATIONS AND OBJECTIVES 
 Section 7.01 Promotion of Public Policy. 
 The Parties to this Agreement hereby acknowledge and
agree that this Agreement is designed to provide meaningful assistance to the Participating Member States and the EC in curtailing the smuggling and illegal distribution of Cigarettes into and within the Territory of the Member States. 

Section 7.02 Respect for Obligations. 
 The Parties hereby acknowledge and agree to take all appropriate measures: (1) to ensure fulfillment of their obligations under this Agreement, (2) to facilitate the achievement of the objectives of the Agreement, and (3) to
abstain from any measures that would jeopardize the attainment of the objectives of this Agreement. 
  

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 Section 7.03 Agreement Consistent with EC and Applicable National Laws. 
 The Parties to this Agreement hereby acknowledge and agree that compliance with the terms of this Agreement is consistent with EC and applicable national
laws, and with the provisions of the Treaty Establishing the European Community (the “EC Treaty”), and will contribute to achieving the objectives of the EC Treaty. 
 Section 7.04 The Parties’ Intentions. 
 The mutual intention of the Parties is that this Agreement will swiftly, finally and fully resolve in an amicable and cooperative manner, without any admission of liability, all matters in which or in respect of which
the following persons seek or might seek redress for alleged Losses: (i) the Parties; (ii) the political subdivisions of the Participating Member States; (iii) instrumentalities and agencies of (i) and (ii); and
(iv) successors and assignees of all of the foregoing (collectively “Resolved Matters”). The Parties’ mutual intention is that all Parties and Released Persons be relieved of the threat of claims, actions, suits,
assessments, or proceedings in any forum against them that seeks redress for any Resolved Matters. 
 ARTICLE 8 
 REPRESENTATIONS AND WARRANTIES 
 Section 8.01 Mutual Representations. 
 (a) Each of the Relevant Administrations hereby represents
and warrants to Philip Morris International, and Philip Morris International hereby represents and warrants to each of the Relevant Administrations that: 
 (i) the execution, delivery and performance of this Agreement by such Party is within its governmental or corporate powers, as the case may be, and has been duly authorized by all necessary action on its part;

 (ii) the Person executing this Agreement on behalf of such Party has the full right and authority to do so; and 

(iii) this Agreement constitutes a valid and binding agreement of such Party, enforceable in accordance with its terms. 
  

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 ARTICLE 9 
 RELEASE AND DISMISSAL OF CLAIMS 
 Section 9.01 Release. 
 (a) The provisions of Sections 9.01(a), (b), and (c) shall inure to the benefit of Philip
Morris (the “Released Persons”) and, consistent with Relevant Law, be binding upon each of (i) the Relevant Administrations; (ii) their respective political subdivisions; (iii) instrumentalities and agencies of
(i) and (ii); and (iv) successors and assignees of all of the foregoing (collectively, the “Releasing Persons”). The release provided for in this Section 9.01 shall cover companies acquired by or merged into Philip
Morris subsequent to the Execution Date, but only if the company’s aggregate EC market share was not in excess of 2% in 2002. 
 (b) On
the Signature Date of the Agreement for each Releasing Person, such Releasing Person agrees to and shall, without any further action on the part of such Releasing Person, absolutely and unconditionally fully release and forever discharge the
Released Persons, to the fullest extent permitted by law, from any and all civil claims, charges, demands, damages, subpoenas, discovery requests, actions, suits, causes of action, liabilities, costs, expenses and attorneys’ fees, including
without limitation, all civil claims that may be allowable to the Releasing Persons within criminal proceedings in the form of restitution, disgorgement, forfeiture, punitive damages, or otherwise, for conduct prior to the Signature Date wherever
arising and of whatever nature, whether known or unknown, suspected or unsuspected, accrued or unaccrued, asserted or unasserted, foreseen or unforeseen, with respect to, that result from, arise out of, or relate to the allegations, or the alleged
acts (or omissions) forming the basis of the allegations, that were raised or asserted, or could have been raised or asserted, in the Litigation (collectively, the “Released Claims”), regardless of the legal theory or purported
basis of legal duty or liability on which such Released Claims are, or could be, raised or asserted. 
 (c) The provisions of Sections
9.01(a), (b), and (c) (as well as the other provisions of this Agreement) are a result of a compromise of disputed claims and defenses, and Released Persons shall not be deemed to have admitted any of the allegations asserted in the Litigation.

 (d) On the Execution Date of the Agreement, each Released Person agrees to and shall, without any further action on the part of such
Released Person, absolutely and unconditionally fully release and forever discharge the Releasing Persons and their attorneys, to the fullest extent permitted by law, from any and all civil claims, charges, demands, actions, suits, causes of action,
liabilities, costs, expenses, fees, and attorneys’ fees, including without limitation, all civil claims for compensation or monetary damages sought in civil 

  

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proceedings in the form of restitution, disgorgement, forfeiture, punitive damages, or otherwise for conduct prior to the Execution Date wherever arising and
of whatever nature, whether known or unknown, suspected or unsuspected, accrued or unaccrued, asserted or unasserted, foreseen or unforeseen, that result from, arise out of or relate to the Litigation, regardless of the legal theory or purported
basis of legal duty or liability on which such claims are, or could be, asserted. 
 Section 9.02 Dismissal Of Claims.

 The Parties shall promptly seek and obtain dismissal with prejudice and without costs of all pending actions and/or appeals, as they relate
to Philip Morris, and to the extent that they are related to the matters at issue in the Litigation, including any proceeding by Philip Morris International before the European Court of First Instance or the European Court of Justice. The Parties
shall jointly submit a form of a Stipulation of Dismissal with Prejudice and without costs to the relevant court or courts which will be substantially in the form annexed as Appendix H to this Agreement. 
 ARTICLE 10 
 SETOFF 

Section 10.01 Right of Setoff 
 (a) In addition to its rights and obligations under Article 7 and the releases set forth in Article 9 of this Agreement, Philip Morris International shall have the right to set off against any and all amounts otherwise due and payable to
the Relevant Administrations under this Agreement, the amount of any damage, loss, liability, tax, custom duty, expense or non-criminal penalty actually incurred, payable or suffered by Philip Morris with respect to, resulting from, or arising out
of, actions, suits, or proceedings, other than the Litigation (whether civil proceedings, administrative proceedings, tax proceedings, or civil claims made within criminal proceedings) brought against Philip Morris by (i) the EC, (ii) any
Member State, (iii) the political subdivisions of any Member State; (iv) instrumentalities and agencies of (i), (ii), and (iii); and (v) successors and assignees of all of the foregoing, which seek redress as a result of the sale,
distribution, storage, or shipment of Contraband Philip Morris Cigarettes before the Execution Date or, for Subsequent Participating Member States, their respective Signature Dates. 
 (b) Upon any Party learning of (i) the existence of any actual claim, action, suit, or proceeding, or (ii) any threatened claim that would
require disclosure under Financial Accounting Standard Board Statement No. 5, that may result in Philip Morris International having a right to setoff under this Section

  

 26 

 
10.01, that Party shall provide each other Party, to the fullest extent permitted by law, with prompt notice of the existence of such claim, action, suit, or
proceeding. 
 (c) Upon learning of the existence of (i) any actual claim, action, suit, or proceeding, or (ii) any threatened
claim that would require disclosure under Financial Accounting Standard Board Statement No. 5, that may result in Philip Morris International having a right to setoff under this Section 10.01, Philip Morris International may, upon giving
the EC 30 days notice, begin paying any funds which are due to the Relevant Administrations under this Agreement into an interest-bearing escrow account, up to the amount claimed, or if no specific amount is claimed, the amount at issue, in such
actions or proceedings, rather than paying such funds directly to the Relevant Administrations. Payment of funds into escrow by Philip Morris International pursuant to this subsection (c) above shall not be deemed a breach of this Agreement.

 (d) In each instance where Philip Morris International pays funds into escrow as set forth in Section 10.01(c), Philip Morris
International and the EC shall make a good faith effort to agree as to whether utilization of the escrow account provided for in subsection (c) above is appropriate. If they have not agreed within 60 days after notice was provided pursuant to
subsection (b) above, the EC shall have the right to make application to the Arbitrator(s), as described below in Section 12.02, to challenge the applicability of subsection (c) above. In order for such a challenge to be upheld by the
Arbitrator(s), the EC must demonstrate that Philip Morris International does not have a reasonable basis to support its belief that it is incurring, or may incur, damage, loss, liability or expense that may be eligible for setoff pursuant to
subsection (a) above. If the Arbitrator(s) determines that Philip Morris International does not have a reasonable basis to place the aforesaid funds into the escrow account, the Arbitrator(s) shall order that such funds together with accrued
interest be released from the escrow account within 30 days and paid to the Relevant Administrations pursuant to this Agreement. 
 (e)
Before exercising any right to setoff pursuant to subsection (a) above either by ceasing to make payments due to the Relevant Administrations or by claiming amounts held in escrow, Philip Morris International shall provide at least 30 days
notice to the European Commission of its intention to do so. Upon receipt of such notice, Philip Morris International and the European Commission shall immediately make a good faith effort to agree as to whether setoff is appropriate and, if so,
what the amount of the setoff should be. If Philip Morris International and the European Commission have not agreed within 60 days of notice being received by the European Commission, either Party may make an application to the Arbitrator in
accordance with Section 12.02 to determine whether a right of setoff exists pursuant to this Section 10.01. In order to establish any right of setoff, Philip Morris International must demonstrate by the greater weight of the evidence that
(i) Philip Morris has incurred or suffered 

  

 27 

 
damage, loss, liability or expense that is eligible for setoff pursuant to subsection (a) above; and (ii) the amount so incurred or suffered. This
subsection (e) does not in any way affect the rights of Philip Morris International to pay funds into escrow in accordance with subsection (c) above. Upon a ruling by the Arbitrator(s) that Philip Morris International has failed to
establish a right of setoff, all funds owed to the Relevant Administrations under the terms of the Agreement that were the subject of dispute together with accrued interest, shall promptly be paid over to the Relevant Administrations. Upon a ruling
by the Arbitrator(s) that Philip Morris International has established a right of setoff, Philip Morris International shall be entitled to recover such funds from escrow and/or set off against future payments in accordance with the
Arbitrator’s(s’) ruling. 
 (f) Claims in Excess of Amount Available for Setoff. If a claim, action, suit, proceeding,
assessment or demand has been made that would, if successful, entitle Philip Morris International to exercise its right to setoff under Article 10 and either (1) the amount of the claim, action, suit, proceeding, assessment or demand is likely
to exceed the total amount available for setoff or escrow under Article 10, or (2) the claim, action, suit, proceeding, assessment or demand has been brought within two years of the Execution Date and the amount of the claim, action, suit,
proceeding, assessment or demand is likely to exceed € 200 million; and, despite the good-faith and expeditious efforts of Philip Morris to defeat the claim action, suit, proceeding, assessment or demand, including invoking the releases
provided for by this Agreement if applicable: 
 (i) the claim action, suit, proceeding, assessment or demand has not been
dismissed, withdrawn, or reduced below the applicable threshold in (1) or (2) above, within one year after the court or tribunal has received full and complete arguments from the parties to the dispute as to whether the claim, action,
suit, proceeding, assessment or demand should be dismissed because its assertion contravenes the provisions of this Agreement or otherwise, or 
 (ii) the claim, action, suit, proceeding, assessment or demand has been sustained by the court or tribunal after considering arguments by Philip Morris International that the claim, action, suit, proceeding,
assessment or demand should be dismissed because its assertion contravenes the provisions of this Agreement or otherwise, and 
 (iii) Philip Morris can demonstrate that, as a result of the ongoing claim, burdens have been imposed on it or it is otherwise prejudiced by virtue of such claim. 
 then (A) as to any such claim, action, suit, proceeding, assessment or demand that is within the scope of Article 9, Philip 

  

 28 

 
Morris International shall be discharged of its obligations to pay any amounts payable (i) under Appendix C to the Member State that brought the action,
suit, proceeding, assessment or demand, (ii) under Article 4 of this Agreement to that Member State, and (iii) to the EC for its share of any Supplemental Payment for seizures by that Member State. In the event that the aforesaid claim,
action, suit, proceeding, assessment, or demand is eventually dismissed or otherwise resolved for an amount below the applicable threshold set forth in (1) and (2) above, Philip Morris International’s obligations to the Member State
under Appendix C and to the Member State and the EC under Article 4 shall resume prospectively; and 
 (B) as to any such
claim, action, suit, proceeding, assessment or demand that is not within the scope of Article 9, Philip Morris International shall be discharged of its obligations to pay (i) 50% of the amounts payable to all the Relevant Administrations under
Appendix C, (ii) amounts payable under Article 4 of the Agreement to the Member State that brought the claim, action, suit, proceeding, assessment or demand, as well that Member State’s share of any payments payable under Appendix C of
this Agreement; and (iii) amounts payable to the EC for its share of any Supplemental Payments for any seizures by that Member State. In the event that the aforesaid claim, action, suit, proceeding, assessment or demand is eventually dismissed
or otherwise resolved for an amount below the applicable threshold set forth in (1) and (2) above, Philip Morris International’s obligations to the Relevant Administrations under Appendix C and to the Member State and the EC under
Article 4 shall resume prospectively. 
 (iv) For the purposes of subsections (A) and (B) above, the term
“Member State” that brought the action, suit, proceeding, assessment or demand shall include (i) the Member State; (ii) the political subdivisions of that Member State; (iii) instrumentalities or agencies of (i) or
(ii); and (iv) successors and assignees of all of the foregoing. 
 Section 10.02 No Other Effect. 
 Subject to Article 11, nothing in this article shall reduce or otherwise affect the other duties of Released Persons to any Releasing Person or the
requirements of Relevant Law, nor shall it reduce or otherwise affect the duty of the participating Released Person’s obligations under this Agreement, which shall continue in full force and effect during and after any dispute resolution
proceedings. 
  

 29 

 ARTICLE 11 
 TERMINATION 
 Section 11.01 Termination. 
 (a) This Agreement shall terminate upon the Expiration Date unless terminated earlier by subsections (b) through (g) of this Section.

 (b) The Parties agree that pursuant to this Agreement each Party and all Released Persons shall have adequate remedies to protect them
against any claims or demands which are (i) asserted against them in contravention of Article 9, or (ii) subject to setoff under the provisions of Article 10. Accordingly, a Party shall have the right to terminate this Agreement if,
despite their good-faith efforts, the Parties are unable to agree upon substitute provisions, adjustments, or modifications to the Agreement so as to restore those remedies. A Party shall have the right to terminate this Agreement under the
circumstances and in the manner set forth in subsections (c) through (g), inclusive, below. 
 (c) A Party shall have the right to
terminate this Agreement if: 
 (i) A claim, action, suit, proceeding, assessment or demand that would, if successful, entitle
Philip Morris International to exercise its right to setoff under Article 10 has been made by a Participating Member State in which the sales of Philip Morris Cigarettes are equivalent to or are more than 10 percent of the Philip Morris Cigarettes
sold in the Territory of the Member States as of January 1, 2004, and a court in that Participating Member State, or the European Court of Justice, has issued a final and unappealable judgment that invalidates or renders unenforceable a
material provision of Article 9 or Article 10, or there is a legislative, executive or administrative action with the same effect in that Participating Member State; or 
 (ii) Claims, actions, suits, proceedings, assessments or demands that would, if successful, entitle Philip Morris International to
exercise its right to setoff under Article 10 have been made by Participating Member States in which collectively the sales of Philip Morris Cigarettes are equivalent to or are more than 10 percent of the Philip Morris Cigarettes sold in the
Territory of the Member States as of January 1, 2004, and the European Court of Justice has, or courts in those Participating Member States have, issued final and unappealable judgments that invalidate or render unenforceable a material
provision of Article 9 or Article 10, or there are legislative, executive, or administrative actions with the same effect in those Participating Member States. 
  

 30 

 (d) For the purposes of subsection (c) above, the term “Participating Member State” shall
include (i) the Participating Member State; (ii) the political subdivisions of that Participating Member State; (iii) instrumentalities or agencies of (i) or (ii); and (iv) successors and assignees of all of the foregoing.

 (e) A Party that seeks to terminate the Agreement must first submit a notice of termination to the other Parties, setting out the basis
for termination. Such termination shall become effective 120 days from receipt of notice unless another Party challenges the notice of termination pursuant to Section 12.02 of this Agreement. 
 (f) In the event that an arbitration proceeding is invoked pursuant to subsection (e) above, if the Arbitrator(s) determines that there is a basis
for termination, the Agreement shall terminate in its entirety unless the precipitating cause of the termination is clearly confined in its application to a particular Member State or particular Member States, in which case, the Arbitrator(s) shall
determine the scope of the termination in the absence of an agreement by the remaining Parties. 
 (g) If the Agreement is terminated before
the Expiration Date in accordance with the provisions set forth above in subsection (c), a new agreement shall take its place without any further action being necessary by the Parties, such agreement remaining in effect until the Expiration Date,
consisting of (1) the Parties’ rights and obligations under Articles 7, 9 and 12 of this Agreement, (2) the Parties’ rights and obligations in effect on the date of termination of the Agreement under Article 2 and Appendix B of
this Agreement, and (3) the Parties’ rights and obligations in effect on the date of termination of the Agreement under Article 5 and Appendix D of this Agreement. All other provisions of the Agreement shall be terminated. 
 Section 11.02 Subsequent Agreement. 
 It is the intention of the Parties, if feasible, to extend the duration of this Agreement beyond the Expiration Date. Accordingly, beginning no later than two years prior to the Expiration Date, if this Agreement has not been terminated
earlier in accordance with its terms, the representatives of the Parties shall meet and attempt in good faith to reach another agreement between the Parties covering the same subject matter addressed herein. 
 ARTICLE 12 
 DISPUTE
RESOLUTION 
 Section 12.01 The Role of the European Court of First Instance and the European Court of Justice.

  

 31 

 (a) Arbitration Clause for Articles 7 and 9. In the absence of prior agreement, any claim, action,
suit, proceeding or dispute between the Parties, between a Party and a Released Person or a Releasing Person, or between a Released Person and a Releasing Person, arising out of or relating to any breach, clarification or enforcement of Article 7 or
9 of this Agreement relating to the sale, distribution, storage or shipment of Contraband Cigarettes before the Execution Date or, for Subsequent Participating Member States, their respective Signature Dates, shall be brought exclusively before the
European Court of First Instance pursuant to Article 238 of the EC Treaty. Each of the Parties hereby agrees, on its behalf and on behalf of the Released Persons or the Releasing Persons (as the case may be), that this Section 12.01 constitutes
and is intended to be an arbitration clause for the purposes of Article 238 of the EC Treaty, and irrevocably consents to the jurisdiction of the European Court of First Instance in relation to any such dispute, and irrevocably waives, to the
fullest extent permitted by law, any objection that it may now or hereafter have to the reference of such dispute to the European Court of First Instance or that any such dispute has been brought in an inconvenient forum. Process in any proceeding
brought before the European Court of First Instance pursuant to Article 238 of the EC Treaty may be served on any Party anywhere in the world, whether within or without the jurisdiction of the European Court of First Instance. The applicable law to
interpret this Agreement shall be the law of the State of New York, without giving effect to choice of law or conflict of law doctrine. The European Court of First Instance shall in its determination of any dispute concerning this Agreement, have
regard to, inter alia, its own case law, and that of the European Court of Justice, on the interpretation of the EC Treaty and EC Law. 
 (b) Referral of matters to the European Court of First Instance or the European Court of Justice. In the event that a claim, suit, action, assessment, proceeding or demand (in this Section 12.01(b) hereinafter,
“claim”) is brought against Philip Morris relating to the sale, distribution, storage, or shipment of Contraband Cigarettes before the Execution Date before any court or tribunal of the Member States (including the courts and tribunals of
political subdivisions of the Member States) the Parties agree to follow the following procedures: 
 (i) the European
Commission may be given notice of the claim by Philip Morris International; 
 (ii) As soon as reasonably possible after
receiving notice of the claim, the European Commission agrees to: (a) consider whether the claim is within the scope of the Arbitration clause of Section 12.01(a) of this Agreement; (b) if it considers this to be the case, prepare a
statement of position in admissible form that the claim concerns, in whole or in part, a matter covered by and subject to this Agreement and to the Arbitration clause in Section 12.01(a) and that the Agreement provides that disputes regarding
the application of Articles 7 and 9 of this Agreement to such 

  

 32 

 
claims should be brought exclusively before the Court of First Instance pursuant to Article 238 of the EC Treaty, the Agreement provides that if such claims
are brought before any court or tribunal of the Member States (including a court or tribunal of the political subdivisions of the Member States), such proceeding should be suspended and referred or transferred to the European Court of First Instance
pursuant to Article 238 of the EC Treaty, and the Agreement provides that to the extent that any Party is prevented from so transferring, all questions concerning the interpretation of any provision of Community Law that is necessary to enable such
court to give judgment, be referred to the European Court of Justice under Article 234 of the EC Treaty and (c) provide said statement of position to all relevant Parties for use by any Party in a motion filed pursuant to Section 12.01(a)
and, submit it to the competent authority of the Relevant Member State with a request that it be submitted to the appropriate court; 
 (iii) If the European Commission concludes that a claim, is not a matter covered by and subject to this Agreement or is not one to which the Arbitration clause of Section 12.01(a) applies, and any Party disagrees with that conclusion,
or the European Commission does not render the aforesaid statement of position within sixty (60) days of the notice set forth herein, any Party may demand Arbitration pursuant to Section 12.02 of this Agreement. If the Arbitrators rule
that the claim is within the scope of the Arbitration clause of Section 12.01(a), the European Commission agrees to (a) prepare a statement in admissible form that states that (i) the Arbitrator(s) have ruled that the claim is within
the scope of the Arbitration clause of Section 12.01(a) of this Agreement, and (ii) the Agreement provides that disputes regarding the application of Articles 7 and 9 of this Agreement to such claims should be brought exclusively before
the Court of First Instance pursuant to Article 238 of the EC Treaty, the Agreement provides that if such disputes are brought before any court or tribunal of the Member States (including a court or tribunal of the political subdivisions of the
Member States), such proceeding should be suspended and referred or transferred to the European Court of First Instance pursuant to Article 238 of the EC Treaty, and the Agreement provides that to the extent that any Party is prevented from so
transferring, all questions concerning the interpretation of any provision of Community Law that is necessary to enable such court to give judgment, be referred to the European Court of Justice under Article 234 of the EC Treaty, and
(b) provide said statement to all relevant Parties for use by any Party in a motion filed pursuant to Section 12.01(a) and, submit it to the competent authority of the Relevant Member State with a request that it be submitted to the
appropriate court; 
 (iv) Subject to Relevant Law, the Participating Member States, as well as their political subdivisions,
instrumentalities, agencies, 

  

 33 

 
successors and assigns, agree that they will not oppose a motion filed pursuant to Section 12.01(a). 
 Section 12.02 Dispute Resolution for Claims Brought Under the Terms of the Agreement. 
 (a) Arbitration Clause. Subject to Section 12.01, any dispute between the Parties arising out of or relating to this Agreement or any breach,
clarification or enforcement of any provision of this Agreement or any conduct contemplated herein shall be brought exclusively before, and decided pursuant to the UNCITRAL Rules by the arbitrator who is at the top of the list attached to this
Agreement as Appendix J (the “Arbitrator”). If the Arbitrator is unable to hear the Parties’ dispute within 60 days of reference, upon demand by any Party to the dispute, the next-highest-listed-arbitrator in Appendix J shall be
deemed to be the Arbitrator for the purposes of that dispute. Should the Arbitrator be permanently unable to hear the Parties’ disputes, the next-highest-listed arbitrator in Appendix J shall be deemed to be the Arbitrator for the purposes of
the Agreement. The Parties may add to, remove from, or reorder the list of arbitrators in Appendix J at any time by mutual agreement in writing. 
 (b) The arbitration proceedings shall be conducted in the English language in Brussels, unless otherwise agreed by the Parties to the dispute. Consistent with Relevant Law, and any applicable law governing Philip Morris’ disclosure
obligations the arbitration proceedings shall be confidential to the extent possible, and the Parties shall not disclose the nature or scope of the proceedings, or any information obtained in or arising out of the proceedings, to any third party. No
amicus curiae or “friend of the court” briefs may be filed in the proceedings. The Arbitrator(s) shall provide the rules of the proceedings and shall issue a written opinion stating the reasons for the relief granted. The
arbitration proceedings, and the enforcement of any arbitral order or award, or an action to compel arbitration, shall be governed by the substantive laws of the State of New York without regard to choice of law doctrine. The Parties agree that the
orders, decisions, and awards of the Arbitrator(s) shall be exclusively enforceable in the New York State Supreme Court (New York County), and any action to compel arbitration shall be commenced in New York State Supreme Court (New York County). The
Party seeking to compel arbitration, or to enforce the orders, decisions, and awards of the Arbitrator(s), shall, at the time of the commencement of the action or proceeding, request assignment of the action or proceeding to the Commercial Division,
Supreme Court of the State of New York (New York County). The final judgment of the New York State Supreme Court may be enforced by any Party in any court possessing personal and subject matter jurisdiction. 
  

 34 

 (c) Notwithstanding the foregoing, for any dispute between the Parties involving Article 3,
Section 4.01(t) and (u), Article 11, Section 12.01(b), and any dispute involving Article 10 where the amount in dispute exceeds 20 percent of the “Base Payment” in Appendix C, any Party shall, upon request, have the right to have
the dispute settled by a three-person arbitration panel with the Arbitrator acting as chairperson and one arbitrator to be selected by the Philip Morris International Party or Parties to the dispute and one arbitrator to be selected by the Relevant
Administration Party or Parties to the dispute. 
 ARTICLE 13 
 MISCELLANEOUS 
 Section 13.01 Notices. 
 All notices, requests and other communications to any Party hereunder shall be in writing (including facsimile transmission) and shall be given to the
Director of OLAF and the General Counsel of Philip Morris International. 
 Section 13.02 Waivers. 
 No provision of this Agreement may be waived unless such waiver is in writing and is signed by the Party against whom the waiver is to be effective.

 Section 13.03 Expenses. 
 All costs and expenses incurred in connection with this Agreement or the Litigation shall be paid by the Party incurring such cost or expense. 
 Section 13.04 Nature of Payments. 
 The Parties agree that no part of any of the payments made
pursuant to this Agreement is being paid as (or in settlement of actual or potential claims for) fines or penalties, civil or criminal, or enhanced, multiple or punitive damage awards. Nor does any part of such payments represent the cost of a
tangible or intangible asset or other future benefit. 
 Section 13.05 Successors and Assigns. 
 Except as provided for in Section 9.01(a) of this Agreement, the provisions of this Agreement, including the obligations set forth herein, shall be
binding upon and inure to the benefit of the Parties hereto and their respective successors and assigns. 
  

 35 

 Section 13.06 Legality and Severability. 
 (a) All obligations under this Agreement are subject to the relevant laws, statutes, ordinances, rules, regulations or other provisions having the force
or effect of law of the EC and/or any Member State, which are in effect in each Member State as of its Signature Date, or are enacted or amended by the EC or a Member State after its Signature Date (“Relevant Law”), and without
prejudice to the rights of the Parties under Article 11, the Parties agree that to the extent that any obligation of any Party under this Agreement would violate Relevant Law, the Party shall be excused from performing such obligation only to the
extent that performance would violate such law and shall not incur any liability as a result thereof. 
 (b) Without prejudice to the rights
of the Parties under Article 11, in the event that any provision of this Agreement, or the application thereof, becomes or is declared by a court or tribunal of competent jurisdiction to be illegal, void or unenforceable, or there is a legislative,
executive or administrative action with the same effect in a Participating Member State, the remainder of this Agreement shall continue in full force and effect and the application of such provision to other Persons or circumstances shall be
interpreted so as to reasonably effectuate the intent of the Parties hereto. The Parties further agree to replace such void or unenforceable provision of this Agreement with a valid and enforceable provision that will achieve, to the extent
possible, the intent and purpose of such void or unenforceable provision. 
 Section 13.07 Counterparts; Effectiveness; Third Party
Beneficiaries. 
 This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as
if the signatures thereto and hereto were upon the same instrument. This Agreement shall become effective on the Execution Date. No provision of this Agreement is intended to confer upon any Person other than the Parties and the Persons identified
in Article 9 any rights or remedies hereunder. 
 Section 13.08 Entire Agreement. 
 This Agreement, including the Appendixes, constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes
all prior drafts of this Agreement and any prior understandings reached between the Parties during negotiation of this Agreement, whether oral or written. Notwithstanding the foregoing, each of the Parties may rely upon express representations made
in any letter from another Party or their counsel provided at or near the Execution Date or any Signature Date relating to the Agreement. 
  

 36 

 Section 13.09 Captions. 
 The captions herein are included for convenience of reference only and shall be ignored in the construction or interpretation hereof. 
 Section 13.10 Designated EC Representative. 
 The EC hereby appoints the Director of OLAF as its designated representative for communications with Philip Morris International relating to the administration of this Agreement. The designated representative is
hereby given authority by the EC to act on its behalf for the purposes of this Agreement, including without limitation, giving and receiving notices and inquiries, and reviewing and approving any documentation or protocols required to be reviewed or
approved under this Agreement. 
 Section 13.11 Amendments. 
 Any provision of this Agreement may be amended but only if such amendment is in writing and is signed by each Party to this Agreement. 
 Section 13.12 Authorship. 
 No
one Party or group of Parties shall be considered to have been the author of this Agreement. 
 Section 13.13 Use of Information
Provided by Philip Morris International. 
 Any information provided to the Relevant Administrations or OLAF pursuant to the Agreement
shall be used only for the purposes of promoting the Parties’ joint objective of combating Cigarette smuggling, Cigarette counterfeiting and any related Money Laundering. In no case shall any such information be used or provided to third
parties for any other purpose without prior written consent by Philip Morris International, unless the Relevant Administration is compelled to disclose the information by judicial or administrative process or by other requirements of law.

 Section 13.14 Equal Treatment Provision. 
 If, at any time during the operation of this Agreement, the EC enters into an agreement with another Cigarette manufacturer relating to the same subject-matter as this Agreement (“Future Cooperation
Agreement”) on terms (after due consideration of relevant differences in volume of Cigarettes or other appropriate factors) more favorable to such Cigarette manufacturer than the terms of this Agreement, then Philip Morris International may
request of the EC that it receive treatment under this Agreement at least as relatively favorable as the overall terms 

  

 37 

 
provided to the other Cigarette manufacturer. The EC will act in good faith to consider any such request and may grant such a request if it is consistent
with the intent of this Agreement. 
 Section 13.15 Additional Participating Member States. 
 Any Member State may become a Participating Member State by executing a copy of this Agreement in the appropriate form and delivering a counterpart
thereof to Philip Morris International and the other Parties thereto. 
 Section 13.16 Use of the Agreement. 
 This Agreement may be admitted into evidence, without the consent of the Parties (i) in any proceeding for the purposes of enforcing the terms
hereof, or (ii) if the contemplated use of said document would not be contrary to the intent of this Agreement, in support of any claim or defense any Party may wish to raise in any proceeding brought against it. Otherwise, the Agreement may
not be admitted into evidence in any proceeding without the consent of the Parties. 
 IN WITNESS WHEREOF, the Parties hereto have
caused this Agreement to be duly executed by their respective authorized officers as of the day and year first written above. 
  

 38 

			
	Philip Morris International Inc.,
	Philip Morris Products Inc.,
	Philip Morris Duty Free Inc., and
	Philip Morris World Trade SARL
		
	By:	 	
	
	 /s/ André Calantzopoulos

	André Calantzopoulos

 European Community 
 The European Commission hereby executes this Agreement on behalf of the European Community and has the full right and authority to do so; 
 The execution and performance of this Agreement by the European Commission is within its powers and has been duly authorized by all necessary action on its part; 
 This Agreement constitutes a valid and binding Agreement of the European Community and is enforceable in accordance with its terms. 
  

									
	 /s/ Michel Petite
	 		 		 	 /s/ Franz-Hermann Brüner

	Michel Petite	 		 		 	Franz-Hermann Brüner
	Director General	 		 		 	Director General
	Legal Service	 		 		 	European Anti-Fraud Office
	European Commission	 		 		 	European Commission
					
	Date:	 	 9th, July 2004
	 		 		 	

 Republic of Austria 
 The Minister of Finance of the Republic of Austria hereby executes this Agreement on behalf of the Republic of Austria and has the full right and authority to do so; 
 The execution and performance of this Agreement by the Ministry of Finance of the Republic of Austria is within its governmental powers and has been duly authorised by
all necessary action on its part; 
 This Agreement constitutes a valid and binding Agreement of the Republic of Austria and is enforceable in accordance
with its terms. 
  

					
	 Mag. Karl-Heinz Grasser,
	 		 	
	 Minister of Finance of the
	 		 	
	 Republic of Austria
	 		 	 /s/    Karl-Heinz Grasser

			
	 Date: 10th May
2005                    
	 		 	

  

 Kingdom of Belgium 
 The Minister of Finance of the Kingdom of Belgium hereby executes this Agreement on behalf of the Kingdom of Belgium and has the full right and authority to do so; 
 The execution and performance of this Agreement by the Ministry of Finance of the Kingdom of Belgium is within its governmental powers and has been duly authorised by
all necessary action on its part; 
 This Agreement constitutes a valid and binding Agreement of the Kingdom of Belgium and is enforceable in accordance with
its terms. 
  

					
	 Didier Reynders,
	 		 	
	 Minister of Finance of the
	 		 	
	 Kingdom of Belgium
	 		 	 /s/    Didier Reynders

			
	 Date: 8/04/04                    

	 		 	

  

 Republic of Bulgaria 
 The Minister of Finance of the Republic of Bulgaria hereby executes this Agreement on behalf of the Republic of Bulgaria and has the full right and authority to do so; 
 The execution and performance of this Agreement by the Minister of Finance of the Republic of Bulgaria is within its governmental powers and has been duly authorised by
all necessary action on its part; 
 This Agreement constitutes a valid and binding Agreement of the Republic of Bulgaria and is enforceable in accordance
with its terms. 
  

					
	Mr.Plamen Oresharski,	 		 	
	The Minister of Finance	 		 	
	Republic of Bulgaria	 		 	 /s/ Plamen Oresharski

			
	Date: 15.02.2007                    	 		 	
		 		 	

  

 Republic of Cyprus 
 The Minister for Finance of the Republic of Cyprus hereby executes this Agreement on behalf of the Republic of Cyprus and has the full right and authority to do so; 
 The execution and performance of this Agreement by the Ministry of Finance of the Republic of Cyprus is within its governmental powers and has been duly authorised by
all necessary action on its part; 
 This Agreement constitutes a valid and binding Agreement of the Republic of Cyprus and is enforceable in accordance with
its terms. 
  

					
	Mr. Michalis Sarris,	 		 	
	 Minister of Finance of
 the Republic of
Cyprus
	 		 	 /s/ Michalis Sarris

			
	 Date:
4/4/2006                    
	 		 	

  

 Czech Republic 
 The Minister of Finance of the Czech Republic hereby executes this Agreement on behalf of the Czech Republic and has the full right and authority to do so; 
 The execution and performance of this Agreement by the Ministry of Finance of the Czech Republic is within its governmental powers and has been duly authorised by all
necessary action on its part; 
 This Agreement constitutes a valid and binding Agreement of the Czech Republic and is enforceable in accordance with its
terms. 
  

					
	Bohuslav Sobotka,	 		 	
	Minister of Finance of the	 		 	
	Czech Republic	 		 	 /s/ Bohuslav Sobotka

			
	Date:    -4-04-2006                    	 		 	

  

 Kingdom of Denmark 
 The Minister of Taxation of Denmark hereby executes this Agreement on behalf of the Kingdom of Denmark and has the full right and authority to do so; 
 The execution and performance of this Agreement by the Ministry of Taxation of the Kingdom of Denmark is within its governmental powers and has been duly authorised by all necessary action on its part; 
 This Agreement constitutes a valid and binding Agreement of the Kingdom of Denmark and is enforceable in accordance with its terms. 
  

					
	Mr. Kristian Jensen,	 		 	
	The Minister of Taxation	 		 	
	On behalf of the	 		 	
	Government of Denmark	 		 	 /s/    Kristian Jensen

			
	Date: 1/12/2005                    	 		 	

  

 Republic of Estonia 
 The Minister of Finance of the Republic of Estonia hereby executes this Agreement on behalf of the Republic of Estonia and has the full tight and authority to do so; 
 The execution and performance of this Agreement by the Minister of Finance of the Republic of Estonia is within its governmental powers and has been duly authorised by
all necessary action on its part; 
 This Agreement constitutes a valid and binding Agreement of the Republic of Estonia and is enforceable in accordance
with its terms. 
  

					
	Aivar Sõerd	 		 	
	The Minister of Finance of the	 		 	
	Republic of Estonia	 		 	 /s/ Aivar Sõerd

			
	Date: 29.05.2006                    	 		 	

  

 Republic of Finland 
 The Minister of Finance of the Republic of Finland hereby executes this Agreement on behalf of the Republic of Finland and has the full right and authority to do so; 
 The execution and performance of this Agreement by the Ministry of Finance of the Republic of Finland is within its governmental powers and has been duly authorised by
all necessary action on its part; 
 This Agreement constitutes a valid and binding Agreement of the Republic of Finland and is enforceable in accordance
with its terms. 
  

					
	Antti Kalliomäki,	 		 	
	Minister of Finance of the	 		 	
	Republic of Finland	 		 	 /s/ Antti Kalliomäki

			
	Date:    8.4.2004                    	 		 	

  

 French Republic 
 The
Ministry of the Economy, Finance and Industry of the French Republic hereby executes this Agreement on behalf of the French Republic and has the full right and authority to do so; 
 The execution and performance of this Agreement by the Ministry of the Economy, Finance and Industry of the French Republic is within its governmental powers and has been duly authorised by all necessary action on its
part; 
 This Agreement constitutes a valid and binding Agreement of the French Republic and is enforceable in accordance with its terms. 
  

					
		 		 	
	On behalf of the Minister of Economy, Finance and Industry	 		 	
	 Jérôme GRAND D’ESNON,
 Agent judiciaire
du Trésor,
	 		 	
	Directeur des affaires juridiques du ministére de l’économie, des finances et de l’industrie de la République française	 		 	  
 /s/ Jérôme Grand
D’Esnon

			
	Date:    21 AVR. 2004                    	 		 	

 *    *    * 
 Traduction française / French translation: 
 Par la présente, le ministre d’Etat, ministre de l’économie, des finances et de l’industrie de la République française assure la mise en oeuvre du présent Accord au nom de la
République française, et dispose de l’autorité et de la compétence requises à cet effet. 
 L’exécution
et la mise en oeuvre du présent Accord par le ministre d’Etat, ministre de l’économie, des finances et de l’industre de la République française entrent dans ses attributions et ont éte dûment
autorisés dans le respect des procédures en vigueur. 
 Le présent Accord constitue un engagement de la République
française et sera appliqué conformément à ses stipulations. 
  

			
	Fait à Paris, le 21 AVR. 2004	 	Pour le minister d’Etat,
		 	ministre de l’économie, des finances et de l’industrie,
		
		 	 /s/ Jérôme Grand D’Esnon

		 	Jérôme GRAND D’ESNON
		 	 Agent judiciaire du Trésor
 Directeur des
affaires juridiques du ministére de l’économie,
 des finances et de l’industrie de la République
française

  

 Federal Republic of Germany 
 The Ministry of Finance of the Federal Republic of Germany hereby executes this Agreement on behalf of the Federal Republic of Germany and has the full right and authority to do so; 
 The execution and performance of this Agreement by the Ministry of Finance of the Federal Republic of Germany is within its governmental powers and has been duly
authorised by all necessary action on its part. 
 This Agreement constitutes a valid and binding Agreement of the Federal Republic of Germany and is
enforceable in accordance with its terms. 
  

					
	On behalf of the Ministry of Finance	 		 	
	of the Federal Republic of Germany	 		 	
		 		 	 /s/    Hans-Georg Schlief

		 		 	Hans-Georg Schlief
			
	Date: April 8, 2004                    	 		 	

  

 Republic of Greece 
 The Minister of the Economy and Finance of the Republic of Greece hereby executes this Agreement on behalf of the Republic of Greece and has the full right and authority to do so; 
 The execution and performance of this Agreement by the Ministry of the Economy and Finance of the Republic of Greece is within its governmental powers and has been duly
authorised by all necessary action on its part; 
 This Agreement constitutes a valid and binding Agreement of the Republic of Greece and is enforceable in
accordance with its terms. 
  

					
	Adam Reguzas,	 		 	
	 Deputy Minister of the Economy
 and Finance for the
Republic of Greece
	 		 	 /s/    Adam Reguzas

			
	Date: 21/04/2004                    	 		 	

 Republic of Hungary 
 The Minister of Finance of the Republic of Hungary hereby executes this Agreement on behalf of the Republic of Hungary and has the full right and authority to do so; 
 The execution and performance of this Agreement by the Minister of Finance of the Republic of Hungary is within its governmental powers and has been duly authorised by
all necessary action on its part; 
 This Agreement constitutes a valid and binding Agreement of the Republic of Hungary and is enforceable in accordance
with its terms. 
  

					
	Dr. János Veres	 		 	
	Minister of Finance of the	 		 	
	Republic of Hungary	 		 	 /s/ János Veres

			
	Date: 2006 APR 04                    	 		 	

 Ireland 
 The Minister for Finance of Ireland hereby executes this Agreement on behalf of the Ireland and has the full right and authority to do so; 
 The
execution and performance of this Agreement by the Department of Finance of Ireland is within its governmental powers and has been duly authorised by all necessary action on its part; 
 This Agreement constitutes a valid and binding Agreement of Ireland and is enforceable in accordance with its terms. 
  

					
	Brian Cowen,	 		 	
	Minister for Finance of	 		 	
	Ireland	 		 	 /s/    Brian Cowen

			
	Date: 19th April 2005                    	 		 	

  

 Italian Republic 
 The Minister of Economy and Finance of the Italian Republic hereby executes this Agreement on behalf of the Italian Republic and has the full right and authority to do so; 
 The execution and performance of this Agreement by the Ministry of Economy and Finance of the Italian Republic is within its governmental powers and has been duly
authorised by all necessary action on its part; 
 This Agreement constitutes a valid and binding Agreement of the Italian Republic and is enforceable in
accordance with its terms. 
  

					
	Giulio Tremonti,	 		 	
	 Ministro dell’Economia e delle
 Finanze della
Repubblica Italiana
	 		 	 /s/    Giulio Tremonti

			
	Date: 21 May 2004                    	 		 	

  

 Republic of Latvia 
 The Minister of Finance of the Republic of Latvia hereby executes this Agreement on behalf of the Republic of Latvia and has the full right and authority to do so; 
 The execution and performance of this Agreement by the Minister of Finance of the Republic of Latvia is within its governmental powers and has been duly authorised by
all necessary action on its part; 
 This Agreement constitutes a valid and binding Agreement of the Republic of Latvia and is enforceable in accordance with
its terms. 
  

					
	Oskars Spurdziņš,	 		 	
	Minister of Finance	 		 	
	Republic of Latvia	 		 	 /s/    Oskars Spurdziņš

			
	Date: 25.04.2006                    	 		 	

  

 Republic of Lithuania 
 The Minister of Finance of the Republic of Lithuania hereby executes this Agreement on behalf of the Republic of Lithuania and has the full right and authority to do so; 
 The execution and performance of this Agreement by the Minister of Finance of the Republic of Lithuania is within its governmental powers and has been duly authorised by
all necessary action on its part; 
 This Agreement constitutes a valid and binding Agreement of the Republic of Lithuania and is enforceable in accordance
with its terms. 
  

					
	Zigmantas Balčytis,	 		 	
	Minister of Finance	 		 	
	Republic of Lithuania	 		 	 /s/    Zigmantas Balčytis

			
	Date: 2005-09-07                    	 		 	

  

 Grand-Duchy of Luxembourg 
 The Minister of Finance of the Grand-Duchy of Luxembourg hereby executes this Agreement on behalf of the Grand-Duchy of Luxembourg and has the full right and authority to do so; 
 The execution and performance of this Agreement by the Ministry of Finance of the Grand-Duchy of Luxembourg, is within its governmental and administrative powers and has
been duly authorised by all necessary action on its part; 
 This Agreement constitutes a valid and binding Agreement of the Grand-Duchy of Luxembourg and is
enforceable in accordance with its terms. 
  

					
	Jean-Claude Juncker,	 		 	
	Minister of Finance of the	 		 	
	Grand-Duchy of Luxembourg	 		 	 /s/    Jean-Claude Juncker

			
	Date: 13-04-06                    	 		 	

  

 Malta 
 The Prime Minister and Minister of Finance of Malta hereby executes this Agreement on behalf of Malta and has the full right and authority to do so; 
 The execution and performance of this Agreement by the Ministry of Finance of Malta is within its governmental powers and has been duly authorised by all necessary action on its part; 
 This Agreement constitutes a valid and binding Agreement of Malta and is enforceable in accordance with its terms. 
  

					
	Lawrence Gonzi,	 		 	
	Prime Minister and	 		 	
	Minister of Finance of Malta	 		 	 /s/ Lawrence Gonzi

			
	Date: 18/5/05                    	 		 	

 Kingdom of the Netherlands 
 The Minister of Finance of the Kingdom of the Netherlands hereby executes this Agreement on behalf of the Kingdom of the Netherlands and has the full right and authority to do so; 
 The execution and performance of this Agreement by the Ministry of Finance of the Kingdom of the Netherlands is within its governmental powers and has been duly
authorised by all necessary action on its part; 
 This Agreement constitutes a valid and binding Agreement of the Kingdom of the Netherlands and is
enforceable in accordance with its terms. 
  

					
	Gerrit Zalm,	 		 	
	Minister of Finance of the	 		 	
	Kingdom of the Netherlands,	 		 	 /s/ Gerrit Zalm

			
	Date: 15-4-04                    	 		 	

  

 Republic of Poland 
 The Minister of Finance of the Republic of Poland hereby executes this Agreement on behalf of the Republic of Poland and has the full right and authority to do so; 
 The execution and performance of this Agreement by the Minister of Finance of the Republic of Poland is within its governmental powers and has been duly authorised by
all necessary action on its part; 
 This Agreement constitutes a valid and binding Agreement of the Republic of Poland and is enforceable in accordance with
its terms. 
  

					
	Miroslaw Gronicki	 		 	
	Minister of Finance	 		 	
	Republic of Poland	 		 	 /s/ Miraslaw Gronicki

			
	Date: 17/06/2005                    	 		 	

  

 Portuguese Republic 
 The Minister of State and Finance of the Portuguese Republic hereby executes this Agreement on behalf of the Portuguese Republic and has the full right and authority to do so; 
 The execution and performance of this Agreement by the Ministry of Finance of the Portuguese Republic is within its governmental powers and has been duly authorized by
all necessary action on its part; 
 This Agreement constitutes a valid and binding Agreement of the Portuguese Republic and is enforceable in accordance
with its terms. 
  

					
	Maria Manuela Dias Ferreira Leite,	 		 	
	 Minister of State and Finance
 of the Portuguese Republic

	 		 	 /s/    Maria Manuela Dias Ferreira Leite

			
	Date: 2004.06.26                    	 		 	
		 		 	

  

 Romania 
 The Minister of Public Finances of Romania hereby executes this Agreement on behalf of Romania and has the full right and authority to do so; 
 The
execution and performance of this Agreement by the Minister of Public Finances of Romania is within its governmental powers and has been duly authorized by all necessary action on its part; 
 This Agreement constitutes a valid and binding Agreement of Romania and is enforceable in accordance with its terms. 
  

					
	Mr. Sebastian Vladescu	 		 	
	The Minister of Public Finances	 		 	
	Romania	 		 	 /s/    Sebastian Vladescu

			
	Date: 15.02.2007                	 		 	

  

 Slovak Republic 
 The Minister of Finance of the Slovak Republic hereby executes this Agreement on behalf of the Slovak Republic and has the full right and authority to do so; 
 The execution and performance of this Agreement by the Minister of Finance of the Slovak Republic is within its governmental powers and has been duly authorised by all
necessary action on its part; 
 This Agreement constitutes a valid and binding Agreement of the Slovak Republic and is enforceable in accordance with its
terms. 
  

					
	Ivan Mikloš	 		 	
	Minister of Finance	 		 	
	Slovak Republic	 		 	 /s/ Ivan Mikloš

			
	Date:    29 September 2005                    	 		 	

 Republic of Slovenia 
 The Minister of Finance of the Republic of Slovenia hereby executes this Agreement on behalf of the Republic of Slovenia and has the full right and authority to do so; 
 The execution and performance of this Agreement by the Ministry of Finance of the Republic of Slovenia is within its governmental powers and has been duly authorised by
all necessary action on its part; 
 This Agreement constitutes a valid and binding Agreement of the Republic of Slovenia and is enforceable in accordance
with its terms. 
  

					
	Dr. Andrej Bajuk	 		 	
	Minister of Finance	 		 	
	Republic of Slovenia	 		 	 /s/ Andrej Bajuk

			
	Date:    10.08.2005                    	 		 	

  

 Kingdom of Spain 
 The Minister of the Economy and Finance of the Kingdom of Spain hereby executes this Agreement on behalf of the Kingdom of Spain and has the full right and authority to do so; 
 The execution and performance of this Agreement by the Minister of the Economy and Finance of the Kingdom of Spain is within its governmental powers and has been duly
authorized by all necessary action on its part; 
 This Agreement constitutes a valid and binding Agreement of the Kingdom of Spain and is enforceable in
accordance with its terms. 
  

					
	Pedro Solbes Mira,	 		 	
	 Minister of the Economy and Finance
 of the Kingdom of
Spain
	 		 	 /s/    Pedro Solbes Mira

			
	Date: 28 JUN. 2004                    	 		 	
		 		 	

  

 Kingdom of Sweden 
 The Minister of Finance of Sweden hereby executes this Agreement on behalf of the Kingdom of Sweden and has the full right and authority to do so; 
 The execution and performance of this Agreement by the Ministry of Finance of the Kingdom of Sweden is within its governmental powers and has been duly authorised by all necessary action on its part; 
 This Agreement constitutes a valid and binding Agreement of the Kingdom of Sweden and is enforceable in accordance with its terms. 
  

					
	Mr. Pär Nuder,	 		 	
	The Minister of Finance,	 		 	
	On behalf of the	 		 	
	Government of Sweden	 		 	 /s/    Pär Nuder

			
	Date: 2006-06-01                    	 		 	

  

 Altria Group, Inc., f/k/a Philip Morris Companies Inc., hereby warrants that should any of its direct or indirect
subsidiaries that are not already Parties to this Agreement undertake to sell, distribute, ship or store Cigarettes within or through the Territory of the Member States, or any Designated State, whether directly or indirectly, Altria Group shall
ensure that such subsidiaries adhere to the terms of this Agreement. Altria Group, Inc. also warrants that neither it, nor any of its direct or indirect subsidiaries, shall take any action to avoid or limit the obligations of Philip Morris
International created by this Agreement. Altria Group, Inc. hereby declares that it has the authority to make the warranties herein concerning its said subsidiaries. 
  

	
	 Altria Group, Inc.

	
	 By: /s/    Altria Group, Inc.

 APPENDIX A 
 PHILIP MORRIS COMPANIES INC. 
 POLICY STATEMENT ON COMPLIANCE WITH FISCAL, TRADE AND ANTI-MONEY LAUNDERING LAWS 
  

	I.	Introduction 

 Compliance is a key business objective for each and
every one of us and goes hand in hand with the Company’s financial and other goals. How we conduct our business is as important as the financial results we achieve, and no one should act on the false assumption that business targets are more
important than legal and ethical standards. Our business goals must be achieved within the law and without jeopardy to our reputation for integrity or how the public perceives the Company. 
 Accordingly, Philip Morris Companies Inc. is issuing this policy statement to all of its operating companies (collectively, “the Company”) in order to
standardize procedures related to fiscal, trade and anti-money laundering laws that apply to the sale of the Company’s food, beer and tobacco products. Included within this policy statement are measures designed to guard against the diversion
of our products into illegal trade channels and against our products being used by criminals to “launder” the proceeds of crime. This policy therefore, concerns those laws and regulations that govern: 
 (i) the payment of import duties, value added tax, excise taxes and other imposts applicable to our products; 
 (ii) the handling of payments which we receive from our customers; 
 (iii)
currency reporting and recordkeeping requirements; and 
 (iv) trade restrictions or prohibitions. 
 It also includes important “know your customer” guidelines to help us meet our goal of only doing business with firms that share our high standards of
integrity and business practices. Procedures for reporting suspicious activities in this area are also set out below. Antitrust and competition laws are covered by separate policies and compliance programs. As discussed below, this policy statement
reaffirms the Company’s commitment to compliance with the laws that apply to its business as well as the primary responsibility of the operating companies to implement and continually improve their compliance programs. This policy statement
applies to all domestic and international operating companies which engage in the sale, 

 
distribution or licensing of any of the Company’s products or which collect payments for such products (although the application of certain laws, for
example, anti-money laundering laws and regulations, may vary among operating companies). 
  

	II.	Compliance Programs 

 Each operating company shall implement a
compliance program to give effect to this policy statement (“Compliance Program”). In developing its Compliance Program, each operating company’s management, working with their legal counsel, should identify the fiscal, trade and
anti-money laundering laws which are relevant to their businesses; ensure that all appropriate personnel (including employees in sales, credit, treasury and accounting and other employees who have contact with customers and other independent
contractors) are aware of these laws as well as Company policy; and implement procedures including appropriate education and training programs, designed to prevent and detect violations of the law or Company policy. 
 The Legal Department of each operating company shall advise its operating company on the development of a suitable Compliance Program, provide guidance as to its
implementation and monitor adherence to the Compliance Program. For these purposes, the General Counsel of each operating company shall designate one or more members of the operating company’s Legal Department to act as compliance coordinators.

  

	III.	General Standard of Conduct 

 As stated in the Business
Conduct Policy, the Company expects a high standard of conduct and personal integrity of all employees. The Business Conduct Policy also states: 
 “Conduct that is unlawful or that violates Company policies and procedures will not be condoned under any circumstances. This includes conduct that occurs in a country which does not enforce a restriction or a
prohibition in its own law or in which the violation is not subject to public criticism or censure.” 
 Further, the fact that a competitor or other
company may appear to be engaged in an illegal activity apparently without incurring any penalties does not justify or mean that we can be involved in the same type of activity or condone the involvement of our customers or anyone associated with
the Company. The operating companies’ Compliance Programs should reflect these principles and standards of conduct. 
  

 2 

	IV.	Types of Laws and Procedures to be Covered 

 Each operating
company’s Compliance Program should identify the applicable laws that govern the sales of its products, taking account of jurisdictional and other issues. At a minimum, however, Compliance Programs should cover the following substantive areas
of law and procedures where relevant: 
  

	 	A.	Customs and Fiscal Laws and Regulations 

 As a
general rule, importation of the Company’s products is subject to various customs and fiscal laws and regulations. In particular, physical importation of products into a country must usually comply with either: 
 (i) the regulations that specify the import duties, value added tax, excise tax, and the like that may be payable in relation to our products; or

 (ii) the tax, bonding, or other similar regulations that govern “tax or duty free” shipments. 
 Shipments of or trade in products in violation of these types of laws is usually known as contraband, smuggling or tax evasion. Government agencies and
law enforcement bodies around the world are increasingly concerned by the incidence of contraband as well as its reported relation in certain countries to money laundering. The Company’s policy in this context is clear: we will not condone,
facilitate, or support contraband or money laundering and we will cooperate with governments in their efforts in prevent illegal trade in the products that we manufacture. 
  

	 	B.	Receipt of Payments 

 Criminals often transact
business with the cash proceeds of crime or with negotiable instruments that are the equivalent of cash (e.g., money orders and travelers checks) and that have been purchased with the cash proceeds of crime. Criminal schemes also may involve
payments by third parties which may be non-existent or “front” persons or payment in the currency of a country other than the country in which business is transacted. Under the laws of the United States and other countries, in certain
circumstances, dealing in criminal proceeds can itself be considered criminal conduct. 
 In confirmation of our long-standing practices in
this area, the operating companies’ Compliance Programs which implement this policy statement should include the following requirements: 
  

 3 

 (i) acceptable forms of payment are: (a) wire transfer or check, in both cases from a bank account
in the customer’s name, (b) cashier’s check or bank draft, in both cases issued by a bank in the country in which the customer is located and (c) cash, but only where the nature and scale of a customer’s business (e.g., a
small retail outlet) are such that it is not commercially feasible under local conditions for a customer to use the forms of payment specified in (a) or (b); 
 (ii) all payments must be made in the same currency as the invoice; 
 (iii) third party payments are
unacceptable; 
 (iv) any overpayments must be carefully scrutinized; any request to make an overpayment or that a refund be sent to a third
party must be approved by the Chief Financial Officer and Chief Executive Officer of the operating company or their designees; and 
 (v)
payments for each invoice or group of invoices due should be made by a single instrument. 
 Procedures of individual operating companies may
allow for exceptions to these five requirements to be made on a case-by-case basis but such exceptions must be approved by the Chief Financial Officer and Chief Executive Officer of the operating company or their designees. If exceptions are
permitted, the procedures must provide that they should be granted only in exceptional circumstances and require documentation of the reasons for granting any exception. 
 Moreover, each Compliance Program should include reasonable procedures to identify payments that do not comply with this policy statement or that merit further inquiry. Because unacceptable or suspicious payments may
be indicative of illegal activity, it is essential that in such cases inquiries be made to determine the legitimacy of the customer and the transaction, including the reason for the payment. 
  

	 	C.	Currency Reporting and Recordkeeping 

 For fiscal
control or crime prevention purposes, the United States and many other countries have instituted various currency or other transaction reporting and recordkeeping requirements relating to domestic and/or international transactions. Many of these
requirements are applicable only to financial institutions and financial services businesses, but others apply to businesses 

  

 4 

 
generally. In general, they require customers to provide identification and other information when conducting a transaction involving currency or cash
equivalents over a certain threshold amount (e.g., US$10,000). Each operating company should take steps to ensure that all such requirements continue to be observed. 
  

	 	D.	Trade Restrictions or Prohibitions 

 The United
Nations and European Union, Switzerland, the United States, and a number of other jurisdictions periodically impose various export and trade controls that restrict or prohibit dealings with certain countries, entities and individuals. Trade
restrictions take many forms and can include: 
 (i) a ban on exports to a sanctioned country; 
 (ii) a ban on imports from or dealings in property originating in a sanctioned country; 
 (iii) a ban on travel to or from a sanctioned country; 
 (iv) a ban on new investments in a sanctioned country; or 
 (v) a ban on financial transactions and dealings
involving a sanctioned country or designated individuals and entities. 
 The reach of these types of laws varies, but as a general rule they
may restrict the activities of citizens or residents of the sanctioning jurisdiction, including companies that are incorporated under the laws of the sanctioning jurisdiction, with regard to the governments, financial institutions, firms or
individuals resident in or officially identified with the sanctioned country. At present, trade restrictions that are relevant to consumer products companies (i.e., as opposed to restrictions dealing with military or other technology) are in force
against a number of countries including the following: Afghanistan, Cuba, Iran, Iraq, Libya, Myanmar (Burma), North Korea, Sudan and Yugoslavia (Serbia). Each Compliance Program should be designed to ensure that the operating company complies with
any trade controls or sanctions that may apply to its activities. 
  

	V.	Know Your Customer Guidelines 

 In addition to covering applicable
substantive laws, each operating company’s Compliance Program should include guidelines related to selecting and working with its customers. The following sections highlight certain key elements that should be included as part of such
guidelines, which serve to reinforce Company policy and compliance efforts. 
  

 5 

 The Company wants to do business only with firms that share our standards of integrity and honorable business practices.
Otherwise, we face the possibility that even an arms’-length association with third parties who violate the law might harm our reputation or place the Company or its employees in legal difficulty. For these and other reasons, managers should
carefully assess the integrity of potential customers before entering into nay business relationship. 
  

	 	A.	Customer Selection 

 In particular, before approving
any new customer for any significant volume of our products, managers should obtain sufficient information about the customer and the customer’s business to satisfy themselves that it is: (i) an existing legal entity;
(ii) creditworthy; and (iii) a reputable enterprise engaged in a legitimate business. All such checks should be documented and repeated periodically, including in the event of any change in control of the customer. The frequency and extent
of such checks will vary according to factors such as the nature and extent of the relationship, the level of purchases and the geographic areas where that customer does business. If there are any suspicious circumstances present or inconsistencies
in information additional due diligence should be undertaken. In any event, however, each operating company’s Compliance Program should require sufficient due diligence to confirm the bona fides of customers. 
 All new customers should be advised of the Company’s compliance expectations. Thereafter, Compliance Programs should provide for periodic reminders
of Compliance policy. 
 Finally, each operating company should establish a procedure for maintaining appropriate customer records which may
include the following materials: 
 (i) a customer approval form detailing the products which the customer is authorized to purchase and the
market of intended destination (to be signed by a designated operating company officer); 
 (ii) a policy letter regarding fiscal and trade
law compliance (to be sent periodically to remind our customers of our policy); 
 (iii) due diligence checks (e.g., company search report,
details of owners and principal officers, bank references and other creditworthiness checks); and 
  

 6 

 (iv) any inquiries from and responses to government agencies regarding the customer or its business.

  

	 	B.	Sales Only to Approved Customers 

 Company policy is
to restrict product sales to approved customers commensurate with the legitimate market demand therefore. Accordingly, there should be no sales to anyone other than approved customers. Affiliates of approved customers are not themselves approved
customers. Any request to the Company by an existing customer for the supply of our products to a third party should be handled as a request for new customer approval. 
  

	 	C.	Continued Awareness and Monitoring 

 On an ongoing
basis, managers should maintain a high degree of awareness of our customers’ business practices and be alert to the possibility of detrimental changes in a customer’s business practices, as well as signs of questionable conduct including
suspicious transactions. For example, if a press report alleges that a customer or a customer’s customer is involved in contraband trade or if a customer’s orders suddenly increase dramatically without any clear justification based on
market conditions, further inquiries may be appropriate. Any indications of possible violations of this policy statement should be reported in accordance with Section VII. 
  

	 	D.	Dealings With Customers 

 The Company respects the
commercial freedom of its customers and recognizes that antitrust and competition laws may restrict the extent to which control can be exercised over resale prices or other conditions under which our customers resell our products. Consistent with
these and other principles, and in accordance with the Business Conduct Policy, employees should neither own a substantial interest in a customer or organization seeking to become a customer unless approved in writing by the Responsible Officer (as
defined in the Business Conduct Policy), nor become involved in directing or managing a customer’s business affairs. 
 Moreover, in no
circumstances should an employee assist any person in any conduct involving our products that violates fiscal, trade or anti-money laundering laws and/or regulations, including evasion of applicable taxes or import duties. Nor should any employee
facilitate or participate in any activity that subverts this policy, including, for example, by agreeing to interpose an existing or new customer to act as an intermediary purchaser which will 

  

 7 

 
resell our products to another firm that has not been approved as a customer. 
 We expect our customers to comply with all applicable laws when they resell our products; and we expect that our customers will, in turn, in keeping with applicable laws, seek to ensure that their customers resell our
products in their market of intended destination. We reserve the right to stop supplying products to any customer shown to have been involved in contraband sales or distribution of our products. We expect our customers to do the same in relation to
their own customers. 
  

	 	E.	Licensees and Contract Manufacturers 

 We must also
continue to exercise careful judgment in selecting those we allow to use our name or any of our trademarks, including licensees and contract manufacturers and carry out appropriate due diligence checks to confirm that such entities are reputable.
Just as we should remain alert to possible changes in a customer’s business practices, we must also be aware of the behavior of our licensees and other business associates. 
  

	VI.	Government Inquiries 

 From time to time, the Company may be served
with legal process or receive written or oral requests for information from law enforcement or other government agencies for records or information about customers or business associates who may be under investigation or who may be associated with a
third party that is under investigation. As set out in the Philip Morris Companies Inc. Legal Guide for Employees, it is Company policy to cooperate fully in these inquires within the confines of applicable privacy and other laws and to respond to
each lawful request in a timely fashion. Any employee who receives such a request should follow the procedures of the Legal Guide, including immediate reference to the Legal Department for review. 
 In keeping with out long-standing policy of supporting government actions against illegal trading in our products, we are asked from time to time to assist in tracing
the country and date of manufacture of a particular product and our customer for that product based on markings and other records. Each operating company should have marking systems which, with related documentation, will allow us to assist
governments with their attempts to identify purchasers of our products, and the dates and locations of production. Also, any employee who becomes aware of any attempt to tamper with our products or the packaging of our products or any attempt to
falsify invoices or other import documents should promptly report this to the Legal Department. 
  

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	VII.	Reporting of Suspected Wrongdoing 

 Any indications of possible
violations of this policy statement or the Compliance Programs or of suspicious activity by customers should be reported promptly to the Legal Department of the relevant operating company for appropriate action. Actions which may be appropriate
include monitoring a customer’s activity, a possible management decision to suspend or sever the business relationship in accordance with Company policy and/or a determination of whether to report the activity to the appropriate government
authorities. The Legal Department of each operating company shall implement a procedure to ensure that the identify of any person reporting violations of this policy statement or its Compliance Program or any suspicious activity by customers will be
kept confidential if the reporter of that information so requests. 
  

	VIII.	 Violations 

 Consistent with the Business Conduct Policy and
Legal Guide, any employee who fails to comply with this policy statement or the Compliance Programs and policies that have been and will be promulgated by the operating companies may be subject to disciplinary action, which may include termination
and loss of employment-related benefits. Any suspected violations of fiscal, trade or anti-money laundering laws by customers, licensees or contract manufacturers should be reported in accordance with the procedures set out above. 
 Finally, employees are urged to consider the spirit of this policy statement and to act accordingly. It is vital that we maintain our commitment both to observing and
abiding by the laws governing our business and to the protection of our good name and reputation. Any questions regarding this policy statement should be referred to the Legal Department. 
 September 13, 1999 
  

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 APPENDIX B - EC COMPLIANCE PROTOCOLS 
 PROTOCOL 1 
 GENERAL STATEMENT OF
ANTI-MONEY LAUNDERING / ANTI-SMUGGLING 
 COMPLIANCE
PROTOCOLS 
 1.01. Definitions. Except as otherwise defined herein, the terms used inthese EC Compliance Protocols are
as defined in Article 1 of the Anti-Contraband and Anti-Counterfeit Agreement and General Release. 
 1.02. Commitment of Philip
Morris International. 
 (a) Consistent with these Protocols, Philip Morris International reiterates its ongoing commitment and
obligation to comply with all applicable laws, including those of the EC and the Member States, governing its conduct relating to: 
 (i) the payment of import duties, value added tax, excise tax and other imposts applicable to Cigarettes manufactured or sold by Philip Morris International; 
 (ii) the handling of payments which are received from customers, licensees, and other obligors in respect of Philip Morris Cigarettes;

 (iii) currency reporting and record-keeping requirements; and 
 (iv) trade restrictions or prohibitions. 
 (b) Conduct that is unlawful or that violates Philip Morris International’s policies and procedures will not be condoned under any circumstances. This includes conduct that occurs in a country that does not
enforce a restriction or prohibition in its own law or in which the violation is not subject to public criticism or censure. 
 (c) After
detecting any violation of these Protocols, Philip Morris International shall make all commercially reasonable efforts to prevent and/or penalize further similar conduct. 
 (d) The fact that a competitor or other company may appear to be engaged in an illegal activity without incurring any penalties does not mean that Philip Morris International can be involved in such illegal activity
or condone the involvement of its customers or anyone associated with Philip Morris International in such illegal activity. 

 1.03. Scope and Purpose of the EC Compliance Protocols. 
 (a) These EC Compliance Protocols are designed to promote the Parties’ joint objective that Philip Morris Cigarettes be sold, distributed, stored,
and shipped in accordance with all applicable fiscal and legal requirements, and, in particular, sold at retail in accordance with all applicable tax and duty laws in the Intended Market of Retail Sale. 
 (b) These Protocols are designed to achieve the Parties’ joint objective of meaningful cooperation, in particular between Philip Morris
International and OLAF, in eliminating the sales of smuggled and/or counterfeit Cigarettes as well as any associated Money Laundering. Furthermore, these Protocols are designed to further the Parties’ joint objectives (i) that Philip
Morris International terminate sales of Cigarettes to persons, corporations and/or distributors that have been found to be unlawfully or knowingly engaged in the distribution of smuggled products or Money Laundering, (ii) that the Relevant
Administrations are in a better position to investigate and prosecute such persons, and to prevent and detect such frauds, and (iii) that Philip Morris International be provided active and effective support for its efforts to deter any act or
practice that favors or facilitates the use of its Cigarettes in smuggling or as a vehicle to launder illegal proceeds. The information provided by Philip Morris International to the Relevant Administrations and OLAF pursuant to these Protocols will
contribute to the vigorous pursuit of persons suspected of illegally smuggling Cigarettes, counterfeiting and Money Laundering throughout the world. 
 PROTOCOL 2 
 KNOW YOUR CUSTOMER 
 2.01. Conducting Business with Approved Contractors. Beginning 180 days after the Execution Date, for the sale, distribution, storage, or shipment
of Cigarettes in excess of 2,500 Master Cases of Philip Morris Cigarettes per year within or into the Territory of one or more of the Member States or any Designated State, Philip Morris International shall conduct business only with Approved
Contractors. 
 2.02. Market Demand. Philip Morris International shall sell and distribute Cigarettes in amounts that are commensurate
with the Retail Demand in the Intended Market of Retail Sale, and Philip Morris International will refuse to sell Philip Morris Cigarettes in volumes exceeding that amount. 
 2.03. Due Diligence. 
 (a) Philip
Morris International shall undertake Due Diligence with respect to all of its Contractors, or Persons reasonably likely to be engaged by 

  

 2 

 
Philip Morris International as Contractors (together “Applicants”), in order to satisfy itself that such Persons are able and committed to
honor the objectives and practices set forth in these EC Compliance Protocols and therefore are eligible to become Approved Contractors. 
 (b) As part of its Due Diligence, a representative of Philip Morris International shall: 
 (i) meet with a
representative of each Applicant; 
 (ii) visit the Applicant’s principal place of operations; 
 (iii) obtain Due Diligence Information from each Applicant or other sources; 
 (iv) assess and verify each Applicant’s ability and commitment to comply with the objectives and procedures of the EC Compliance
Protocols to the extent applicable to it; 
 (v) assess and verify each Applicant’s ability and commitment to implement
its own Know-Your-Customer procedures consistent with these Protocols and for each Applicant to require the same of its wholesale cigarette customers, if any; and 
 (vi) create a report detailing the result of the Due Diligence. 
 (c) “Due Diligence Information” means the following information, to the extent that it is reasonably available: 
 (i) where the Applicant is an individual, information regarding his or her identity, including but not limited to, full name, business
registration number (if any), date and place of birth, and applicable tax registration numbers and a copy of their official identification and/or passport; 
 (ii) where the Applicant is a corporation or other entity, information regarding its identity, including but not limited to, full name, business registration number, date and place of incorporation, corporate capital,
applicable tax registration numbers, copies of its articles of incorporation or equivalent documents, its corporate Affiliates, the names of its officers and directors, and the name of any designated representatives, including but not limited to the
representatives’ complete names, and copies of their official identification and/or passports; 
  

 3 

 (iii) where the Applicant is seeking to become a First Purchaser, a description of the
intended use and Intended Market of Retail Sale of the Cigarettes to be purchased from Philip Morris International. This “Sales Plan” shall be required to be updated as needed and will include complete identification as practicable
of the Subsequent Purchasers to whom the Cigarettes will be sold; 
 (iv) documentation regarding the number of persons
employed by the Applicant at the date of the request for information; 
 (v) documentation regarding any criminal offenses, or
charges filed by governmental agencies, against the Applicant or any of its managers, directors, and/or legal representatives; and 
 (vi) complete identification of the bank accounts through which the payments for the Cigarettes sold to the Applicant shall be made, including but not limited to the complete name and address of the bank, the complete name and address of
the account holder, and all information concerning the identification of the account. In addition to the foregoing information, if the bank account to be used to pay Philip Morris International belongs to an Affiliate of the Applicant, full
disclosure of the precise relationship between the Affiliate and the Applicant (or subsequently, the Approved Contractor) shall be required to be made to Philip Morris International prior to the acceptance of any payment from such an Affiliate. This
information shall be required to be updated, as needed, by the Applicant if the Applicant becomes an Approved Contractor. 
 (d) If,
following its Due Diligence, Philip Morris International is not satisfied that an Applicant is able and committed to honor the objectives and practices set forth in these EC Compliance Protocols, Philip Morris International shall refuse to conduct
business with that Applicant. 
 (e) If, following its Due Diligence, Philip Morris International is satisfied that an Applicant is able and
committed to effectively implement the objectives and practices set forth in these EC Compliance Protocols, Philip Morris International will record that fact and that Applicant shall be considered an “Approved Contractor.”

 (f) Philip Morris International shall maintain a list of all Approved Contractors, which shall be updated every 6 months. 
 (g) “Follow-up Due Diligence” shall be undertaken at least annually for each Approved Contractor, and shall also be undertaken in cases
where Philip Morris International has been notified by the Approved Contractor of a change in 

  

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ownership and/or control of the Approved Contractor. Philip Morris International will require Approved Contractors to promptly notify it of any material
change in their ownership or control. 
 (h) The following shall constitute Follow-up Due Diligence for Approved Contractors by Philip Morris
International: 
 (i) reiterating to Approved Contractors their obligations under these Protocols, and monitoring their
continued compliance therewith; 
 (ii) for Approved Contractors who are First Purchasers, reiterating that these Protocols
require that they may only purchase Philip Morris Cigarettes for sale or distribution in amounts that are commensurate with the Retail Demand in the Intended Market of Retail Sale and that Philip Morris International will refuse to sell them Philip
Morris Cigarettes in volumes exceeding that amount; 
 (iii) reiterating to Approved Contractors Philip Morris
International’s commitment to cooperate with the Relevant Administrations, including OLAF; 
 (iv) answering questions
Approved Contractors may have regarding these EC Compliance Protocols; and 
 (v) providing Approved Contractors with any
changes to the EC Compliance Protocols that may affect their obligations. 
 (i) If, after completing Follow-up Due Diligence, Philip Morris
International is no longer satisfied that an Approved Contractor is able and committed to honor the objectives and practices set forth in these EC Compliance Protocols, Philip Morris International shall refuse to continue conducting business with
that entity and that entity shall cease to be an Approved Contractor. 
 2.04. Approved Contractor Records. Philip Morris
International shall maintain files containing its records of Approved Contractors for five years after creation. These records shall include the following: 
 (a) Commercial documents relating to the Approved Contractor of a material nature to this Agreement, including for example invoices, correspondence of a material nature to and from said Approved Contractor, internal
correspondence of a material nature relating thereto, documentation concerning the reasons any exception has been granted under Protocol 5.01(b), below, contracts, credit analysis, cargo manifests, declarations to any relevant authorities, transport
documents, and other shipping documents. 
  

 5 

 (b) documents obtained by Philip Morris International as part of Approved Contractors’ Due Diligence
Information; 
 (c) any inquiries from and responses to government agencies regarding the Approved Contractor or its business; and

 (d) all records relating to payments made by First Purchasers for Philip Morris Cigarettes. 
 PROTOCOL 3 
 APPROVED
CONTRACTOR RELATIONS 
 3.01. Contracts with Approved Contractors. To the extent permitted by applicable
law, Philip Morris International undertakes to make commercially reasonable efforts to enter into contractual arrangements with Approved Contractors within 12 months of the Execution Date that will provide for the following, as applicable:

 (a) Delivery Terms. Delivery terms applicable to sales of Philip Morris Cigarettes will be specified on the invoice to the First
Purchaser using terminology set out in Incoterms 2000. Passage of risk will transfer to the First Purchaser in accordance with the applicable Incoterm. For any Philip Morris Cigarettes that the First Purchaser purchases FCA Antwerp or similar basis,
the First Purchaser shall be required to agree to resell the Philip Morris Cigarettes using a CIF, CIP, DDU or comparable delivery term to the Intended Market of Retail Sale, or in the alternative to take other measures that are designed to ensure
delivery of the Philip Morris Cigarettes to their Intended Market of Retail Sale. Under no circumstances may the First Purchaser take any action directly or indirectly to interfere with the transportation of the Philip Morris Cigarettes to the
delivery point specified in the invoice or to the Intended Market of Retail Sale without the specific prior approval of Philip Morris International. 
 (b) Packaging. The First Purchaser shall be required to agree that it will take no action directly or indirectly to alter, remove, or deface any Identification Markings or any other aspects of the Philip Morris
Cigarettes’ packaging. 
 (c) Legal Compliance. The First Purchaser shall be required to agree to transport and/or resell the
Philip Morris Cigarettes in full compliance with all applicable laws and regulations, including without limitation (a) any laws or regulations governing the shipment of the Philip Morris Cigarettes in bond or under duty suspension and
(b) any fiscal or other laws or regulations governing the importation and resale of the Philip Morris Cigarettes, and (c) any applicable 

  

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laws designed to combat the laundering of illegal proceeds. The First Purchaser shall be required to agree to take no action to promote or facilitate the
resale of the Philip Morris Cigarettes by the First Purchaser’s customers or Subsequent Purchasers in violation of any fiscal, labeling, trade, or other laws or in a way which would otherwise contravene the First Purchaser’s obligations
under its terms and conditions of sale. The First Purchaser shall be required to agree not to resell the Philip Morris Cigarettes to any Person or entity whom it knows or has reason to believe to be engaged in any illegal trade. Philip Morris
International shall require the First Purchaser to acknowledge and accept that Philip Morris International reserves the right to suspend or terminate any and all commercial relationships with the First Purchaser, and in particular to suspend any
sales and/or shipments of Philip Morris Cigarettes to the First Purchaser, if the First Purchaser violates its terms and conditions of sale, including, without limitation, those relating to delivery and/or packaging, or is otherwise shown to have
unlawfully or knowingly engaged in any illegal trade. 
 (d) Cooperation with Governments. Philip Morris International shall require
the Approved Contractor to acknowledge and accept in writing that Philip Morris International intends to cooperate with governmental inquiries into any illegal importation, movement, or sale of Philip Morris Cigarettes. Towards this end, Philip
Morris International shall make commercially reasonable efforts to ensure the availability of data and documents to the Relevant Administrations as provided for under the Agreement and these Appendices thereto. The First Purchaser shall be required
to agree in writing to expressly authorize Philip Morris International to disclose the terms and conditions of any sale of Philip Morris Cigarettes to the First Purchaser in response to a valid and specific governmental inquiry in that regard.

 3.02. Investigations by the Relevant Administrations. Philip Morris International shall strongly encourage its First Purchasers to
cooperate with the Relevant Administrations for the purposes of investigating Cigarette smuggling and/or the laundering of proceeds arising out of the illegal trade in Cigarettes. 
 PROTOCOL 4 
 TERMINATION OF FIRST
PURCHASERS AND SUBSEQUENT PURCHASERS 
 4.01. Termination of Business
Relationships with Approved Contractors. 
 (a) Philip Morris International shall terminate business relations with, including the supply
of Philip Morris Cigarettes to, any Approved Contractor upon OLAF providing Philip Morris International with, or Philip Morris International otherwise coming into possession of, Sufficient Evidence that such Approved Contractor has, following the
Execution Date, unlawfully or knowingly 

  

 7 

 
engaged in the sale, distribution, storage, or shipment of Contraband Cigarettes or any related Money Laundering. Thereafter, such Approved Contractor shall
be a Blocked Contractor. 
 (b) For the purposes of this Protocol and the Agreement as a whole, only the following will constitute
“Sufficient Evidence”: 
 (i) a criminal conviction in any official court or tribunal for any offense relating to
the sale, distribution, storage, or shipment of Contraband Cigarettes, or any related Money Laundering; or 
 (ii) a finding
by any official court or tribunal in any civil case of involvement in the sale, distribution, storage, or shipment of Contraband Cigarettes, or any related Money Laundering. 
 (c) In the event that OLAF provides Philip Morris International with, or Philip Morris International otherwise comes into possession of, Sufficient
Evidence that a Subsequent Purchaser has, following the Execution Date, unlawfully or knowingly engaged in the sale, distribution, storage, or shipment of Contraband Cigarettes, Philip Morris International will request the First Purchaser of Philip
Morris Cigarettes that sells Philip Morris Cigarettes to such Subsequent Purchaser to cease supplying Philip Morris Cigarettes to such Subsequent Purchaser, if such Subsequent Purchaser is a direct customer of the First Purchaser. In the event that
the First Purchaser refuses to honor such request, Philip Morris International will cease supplying Philip Morris Cigarettes to such First Purchaser, who will thereafter be a Blocked Contractor. If such Subsequent Purchaser is not a direct customer
of a First Purchaser, then Philip Morris International shall request that the First Purchaser make such commercially reasonable efforts as may be required to terminate its direct and/or indirect supply of Philip Morris Cigarettes to such Subsequent
Purchaser. In the event that the First Purchaser refuses to take such steps to terminate its direct and/or indirect supply of Philip Morris Cigarettes to such Subsequent Purchaser, Philip Morris International will cease supplying Philip Morris
Cigarettes to such First Purchaser, who will thereafter be a Blocked Contractor. 
 (d) Philip Morris International shall maintain a list of
Blocked Contractors. Unless otherwise agreed to by Philip Morris International and OLAF, a Blocked Contractor shall remain so designated for 5 years after the termination of Philip Morris International’s business relationship with such Blocked
Contractor and no such Blocked Contractor will be permitted to conduct business with Philip Morris International or any Affiliates thereof, directly or indirectly, relating to the purchase, distribution, shipment, or storage of Philip Morris
Cigarettes during that time. After the expiration of the 5-year period, a Blocked Contractor may reapply to become an Approved Contractor and, at that time, will be subject to the applicable Due Diligence requirements. 
  

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 4.02. Request for Termination of Business Relationships with Approved Contractors. 
 (a) If OLAF believes that an Approved Contractor or Subsequent Purchaser has, following the Execution Date, unlawfully or knowingly engaged in the sale,
distribution, storage, or shipment of Contraband Cigarettes or Counterfeit Cigarettes or any related Money Laundering, but does not possess Sufficient Evidence to support its belief, OLAF may present its evidence to Philip Morris International as
part of a request that Philip Morris International terminate the supply of Philip Morris Cigarettes to the Approved Contractor or Subsequent Purchaser (the “Request for Termination”). 
 (b) Within 45 days of receiving a Request for Termination, Philip Morris International shall provide a response to OLAF reflecting its determination. In
the event that Philip Morris International disagrees with OLAF’s conclusions and rejects the Request for Termination, it shall provide the reasons for that decision. If in that event OLAF, after considering Philip Morris International’s
response, remains of the view that the supply of Philip Morris Cigarettes to the Approved Contractor and/or Subsequent Purchaser should be terminated, OLAF and Philip Morris International shall meet and confer in good faith and attempt to resolve
the dispute. If the dispute has not been resolved within 30 days of the meet and confer, OLAF may bring the dispute before the Arbitrators in accordance with Article 12.02 of the Agreement and may seek an order from the Arbitrators requiring Philip
Morris International to terminate its business relationship with the Approved Contractor in question (the “Termination Order”), or, if the Person that is the subject of the Request for Termination is a Subsequent Purchaser, that
Philip Morris proceed under Protocol 4.01(c) above as if Sufficient Evidence existed concerning such Subsequent Purchaser. 
 (c) In any
arbitration proceedings brought under Protocol 4.02 hereof, the Arbitrators may issue a Termination Order to Philip Morris International only where it has been proven by the greater weight of the evidence that: 
 (i) the Approved Contractor or Subsequent Purchaser in question has, following the Execution Date, unlawfully or knowingly engaged in the
sale, distribution, storage, or shipment of Contraband Cigarettes or Counterfeit Cigarettes or any related Money Laundering; 
 (ii) five separate seizures of at least 4 million Cigarettes each have been made of Philip Morris Cigarettes sold to, handled by, or channeled through the Approved Contractor or Subsequent Purchaser in question within the previous 12
months, (with a time span from the date of the first seizure to the fifth seizure of at least 45 days), and such person 

  

 9 

 
has refused to cooperate with lawful requests to do so made by the Relevant Administration(s) in relation to such seizures; 
 (iii) any number of seizures have been made of Contraband Philip Morris Cigarettes sold to, handled by, or channeled through the First
Purchaser or Subsequent Purchaser in the preceding 12 month period which have totaled more than 25 million Cigarettes, and such person has refused to cooperate with lawful requests to do so made by the Relevant Administration(s) in relation to
such seizures; or, 
 (iv) beginning one year after the Execution Date, any number of seizures have been made of Contraband
Philip Morris Cigarettes sold to, handled by, or channeled through an Approved Contractor (other than a First Purchaser) in the preceding 12 month period which have totaled more than 500 million Cigarettes, and such person has refused to
cooperate with lawful requests to do so made by the Relevant Administration(s) in relation to such seizures. 
 PROTOCOL 5 
 ACCOUNTABILITY OF PAYMENTS FOR CIGARETTES 
 5.01. Acceptable Forms of Payment. 
 (a) Philip Morris International shall adhere to its anti-money laundering policies, which are designed to ensure that it receives payment for Philip Morris Cigarettes solely from legal sources. The policies developed by Philip Morris
International to track and monitor all payments made for Cigarettes sold and/or distributed by Philip Morris International shall include measures designed to prevent the use of the proceeds of any illegal activity, in any form whatsoever, as payment
for Cigarettes. Specifically, as those policies relate to transactions with Approved Contractors relating to the sale, storage or distribution of Philip Morris Cigarettes: 
 (i) acceptable forms of payment shall be limited to: 
 (A) wire transfers or checks, in both cases from a bank account in the name of the Person or Affiliate of such Person with whom Philip
Morris International is transacting, 
 (B) cashier’s checks or bank drafts, in both cases issued by a bank in the
country in which the Person with whom Philip Morris International is transacting is located; and, 
  

 10 

 (C) cash, but only where the nature and scale of the business of the Person with whom
Philip Morris International is transacting (e.g., a small retail outlet) are such that it is not commercially feasible under local conditions for that Person to use the forms of payment specified in (A) or (B); 
 (ii) all payments must be made in the same currency and in the same amount as the invoice; 
 (iii) all payments for Philip Morris Cigarettes must be made by the invoiced customer or an Affiliate of that customer disclosed to Philip
Morris International in accordance with Protocol 2.03(c)(vi); 
 (iv) payments for each invoice or group of invoices due shall
be made by a single instrument; and, 
 (v) payment must be made from an account designated by the Approved Contractor during
the Due Diligence process, under Protocol 2.03(c)(vi), above. 
 (b) Exceptions to the five requirements set forth above in Protocol 5.01(a)
may be made on a case-by-case basis. Such exceptions must be approved by the Chief Financial Officer of Philip Morris International, and the reasons for granting any exception shall be documented. 
 PROTOCOL 6 
 DISCLOSURE
OF INFORMATION 
 6.01. Responding to Inquiries. Within 45 days of a written request by OLAF, Philip
Morris International shall provide OLAF with the following: 
 (i) the list of Approved Contractors and Blocked Contractors as
of the date of the request; 
 (ii) sales volumes to Approved Contractors after January 1, 2004; 
 (iii) reasonable estimates of the annual Retail Demand for any domestic or duty free market in the Member States or any Designated State
for any time period after January 1, 2004 and any domestic or duty free market if there have been 3 seizures in the Member States of more than 5 Master Cases Contraband Philip Morris Cigarettes within the previous 12 months that had such
domestic market as the Intended Market of Retail Sale; and 
  

 11 

 (iv) information relating to the storage and shipment of Philip Morris Cigarettes for any
market of retail or duty free sale after January 1, 2004. 
 6.02. Provision of Information. Subject to applicable data
protection and secrecy laws, within 45 days of a specific written request by OLAF, Philip Morris International shall provide to OLAF, Due Diligence Information and Approved Contractor records created after January 1, 2004 relating to activity
occurring after that date. 
 6.03. Fast Track Provision of Information. In the event that OLAF or the Relevant Administrations make a
seizure of Contraband Philip Morris Cigarettes, and OLAF seeks information regarding other Philip Morris Cigarettes that may be in transit, Philip Morris International agrees to make commercially reasonable efforts to promptly (i.e. as soon as
possible during the next business day) provide, at OLAF’s request, the information listed in 3.03(a) of the Tracking and Tracing Protocols, to the extent available, for all shipments of Philip Morris Cigarettes to the same First Purchaser
associated with the seized Contraband Philip Morris Cigarettes for a period encompassing three months prior to and three months subsequent to the date of shipment of the seized Contraband Philip Morris Cigarettes. 
 PROTOCOL 7 
 CREATION
OF A PHILIP MORRIS INTERNATIONAL COMPLIANCE OFFICER 
 7.01. The Compliance Officer. 
 (a) Philip Morris International shall create an internal position of
Director for Anti-Contraband and Anti-Money Laundering Compliance (the “Vice President for Compliance Systems”), who shall report directly to senior management of Philip Morris International. 
 (b) The Vice President for Compliance Systems shall have the authority and be responsible for: 
 (i) reviewing Philip Morris International’s practices relating to the sale, distribution, storage, and shipment of Philip Morris
Cigarettes; 
 (ii) undertaking and executing any and all of the commitments made under this Agreement by Philip Morris
International; 
 (iii) overseeing compliance by Philip Morris International with Philip Morris International’s Fiscal
Compliance Policy and the Agreement; 
  

 12 

 (iv) developing the education and training programs for employees relating to the sale,
distribution, storage and shipment of Philip Morris Cigarettes in accordance with Philip Morris International’s Fiscal Compliance Policy and the Agreement, which are provided for in Protocol 11; and 
 (v) serving, directly and/or through appropriate staff, as a contact point for communication between Philip Morris International and the
EC, the Participating Member States and OLAF. 
 PROTOCOL 8 
 SHIPMENT TO WAREHOUSES FOR SALE AT LATER DATE AND EARLY
WARNING 
 SYSTEM NOTIFICATION 
 8.01. Information on Cigarettes in Customs Warehouses. Philip Morris International shall, upon receiving a request from OLAF, inform OLAF of
quantities of Philip Morris Cigarettes kept in stock as of the date of the request, in tax and customs warehouses, in the possession, custody or control of Philip Morris International in the Territory of the Member States or any Designated State,
under the regime of transit or duty suspension. 
 8.02. Early Warning System Notification. With respect to all Philip Morris
Cigarettes manufactured in the Territory of the Member States for export outside the Territory of the Member States, and/or subject to duty-suspended movement in transit in the Territory of the Member States, Philip Morris International agrees to
notify customs authorities in the country of departure (electronically where the appropriate infrastructure exists) at the time of departure from Philip Morris International. The notification shall include: 
 (i) the date of the shipment from the last point of Philip Morris International’s physical custody of the Philip Morris Cigarettes;

 (ii) details concerning the Philip Morris Cigarettes shipped (brand, amount, warehouse); 
 (iii) the intended shipping destination; 
 (iv) the identity of the Person to whom the Cigarettes are being shipped; 
 (v) the mode of
transportation, including the identity of the transporter; 
  

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 (vi) the expected date of arrival of the shipment at the intended shipping destination;
and, 
 (vii) the Intended Market of Retail Sale. 
 PROTOCOL 9 
 DELEGATION OF AUTHORITY

 9.01. Delegation of Authority. Substantial discretionary authority relating to the sale, distribution, storage, and shipment of
Philip Morris Cigarettes, or the establishment of policies and business practices relating thereto, shall be delegated by Philip Morris International only to Philip Morris International employees that Philip Morris International reasonably believes,
after the exercise of due diligence, have demonstrated the ability and commitment to act in full compliance with the terms and principles of these Protocols. 
 PROTOCOL 10 
 PERFORMANCE REVIEWS 
 10.01. Performance Reviews. Performance reviews, compensation, and promotions of Philip Morris International’s employees whose activities
relate to the sale, distribution, storage, and shipment of Philip Morris Cigarettes shall take into account such employees’ performance in connection with these Protocols. 
 PROTOCOL 11 
 TRAINING PROGRAMS 
 11.01. Training Programs. Philip Morris International shall design training programs for its employees whose activities involve the sale,
distribution, storage, and/or shipment of Philip Morris Cigarettes, or the establishment of policies and business practices relating thereto. The curriculum for such training programs shall be notified to OLAF. These employees shall, at least once a
year, either conduct or participate in training programs designed to educate and inform Philip Morris International’s employees about their compliance obligations under these Protocols, with supplemental training to be required if necessary, at
the discretion of the Vice President for Compliance Systems. At least once a year, a representative of OLAF shall participate in the training for Philip Morris International employees as part of the training programs described in this Protocol.

  

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 PROTOCOL 12 
 MONITORING AND AUDITING SYSTEMS 
 12.01.
Development of Monitoring and Auditing Systems. In conjunction with the Law Department and the Finance Department of Philip Morris International, the Vice President for Compliance Systems will develop Anti-Contraband and Anti-Counterfeit
Monitoring and Auditing Systems. Fiscal Compliance Coordinators will be designated for each region, who will be responsible for implementing these systems in their business units. 
 PROTOCOL 13 
 Reporting of Suspicious Activity 
 13.01. Reporting Requirements. Philip Morris International agrees to require that if an employee of Philip Morris International suspects that
there has been a violation of these Protocols by another employee or by an Approved Contractor, the employee must promptly report the activity to one of the following Persons: his or her supervisor, the department head, a Fiscal Compliance
Coordinator, the Vice President for Compliance Systems, or the Law Department of Philip Morris International. To the extent permitted by law, the identity of the reporting employee will be kept confidential, if requested by the individual. Philip
Morris International shall establish the means so that these reports may be made anonymously. 
 13.02. Reporting System. The Vice
President for Compliance Systems shall create, in conjunction with the Law Department and the Finance Department of Philip Morris International, a Reporting System. Such Reporting System will allow employees of Philip Morris International to
anonymously report, by any means including email, regular mail, or telephone: 
 (a) any suspicious transactions, including, but not limited
to, any suspected involvement of Philip Morris International employees or Approved Contractors in: 
 (v) the illegal sale,
distribution, storage, or shipment of Contraband Philip Morris Cigarettes; 
 (vi) any related illegal activity; or

 (vii) transactions that do not correspond to ordinary commercial practices and render Philip Morris Cigarettes vulnerable
to diversion into smuggling channels; or 
  

 15 

 (b) any transaction between Philip Morris International and an Approved Contractor that is made or
attempted in cash, cash equivalents, bearer or third-party instruments, when the amount of the transaction exceeds Ten Thousand Dollars ($10,000.00) and the Philip Morris International employee cannot verify that the transaction has been reported,
or when the Philip Morris International employee has reason to believe or to suspect that a series of transactions has been structured so as not to trigger the reporting requirement when the transactions are considered individually, but when taken
as a whole would trigger the reporting requirement. 
 13.03. The Fiscal Compliance Coordinator. The Fiscal Compliance Coordinator for
each region must be notified promptly of any report of activity that may violate these Protocols in his or her region. In conjunction with the Law Department, the Fiscal Compliance Coordinator will review the reported activity and determine whether
further action is warranted. If it is determined that an employee of Philip Morris International has violated these Protocols, the Fiscal Compliance Coordinator and the Law Department shall consult with the management of the relevant business unit
involved regarding any disciplinary or other action to be taken. 
 13.04. Cooperation of Philip Morris International Employees.
Philip Morris International shall encourage its employees and/or agents to make themselves available to OLAF for interviews and for the purposes of giving sworn statements, as reasonably requested and required by OLAF, relating to matters which are
covered by this Agreement that arose after the Execution Date. 
 PROTOCOL 14 
 DISTRIBUTION OF PROTOCOLS 
 14.01.
Distribution of Protocols. These Protocols shall be made available to all Philip Morris International employees on Philip Morris International’s internal website. Also available at the internal website shall be: 
 (i) easy to understand memoranda explaining the requirements of these Protocols; 
 (ii) frequently asked questions and answers relating to these Protocols; and 
 (iii) a link to the Reporting System established pursuant to Protocol 13.02. 
 14.02. Philip Morris International Compliance Policy. No later than 6 months after the Execution Date, Philip Morris International shall revise
its 

  

 16 

 
written policies which address the sale, distribution, storage, and shipment of Cigarettes within or into the Territory of the Member States or any
Designated States, and consolidate these policies into one document (the “International Compliance Policy”). As new situations arise, Philip Morris International shall make changes and modifications as necessary to the International
Compliance Policy, and shall inform OLAF thereof. In the event of any inconsistency between the International Compliance Policy and these Protocols, the latter shall prevail. 
 14.03. The International Compliance Policy shall be made available to all Philip Morris International employees on Philip Morris International’s
internal website. Also available at the internal website shall be: 
 (i) frequently asked questions and answers relating to
the International Compliance Policy; and 
 (ii) a link to the Reporting System. 
  

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 APPENDIX C 
 Philip Morris International (PMI) agrees to make payments to the Relevant Administrations in accordance with the provisions below: 
 1. An amount equal to One Hundred Million Dollars ($100,000,000) shall be deemed to be the “Base Payment.” 
 2. Within sixty (60) days of the Execution Date, PMI shall make a lump-sum payment in the amount of 250% of the Base Payment. 
 3. On the first anniversary of the Execution Date, PMI shall make a payment equal to 150% of (x) the Base Payment multiplied by (y) the 2004 Adjusted Index Percentage. 
 4. On the second anniversary of the Execution Date, PMI shall make a payment equal to 100% of (x) the Base Payment multiplied by (y) the 2005
Adjusted Index Percentage. 
 5. On each of the third through twelfth anniversaries of the Execution Date, PMI shall make a payment equal to
75% of (x) the Base Payment multiplied by (y) the Adjusted Index Percentage for the previous year. 
 6. The Adjusted Index
Percentage in respect of any given year shall be calculated using the formula set forth in paragraphs 7 through 10 below. 
 7. In respect of any year in which a payment is to be made, the “Numerator” shall be the
percentage share of the volume of total cigarette sales in the preceding year in the domestic markets of the states that were Member States of the European Union on January 1st, 2004, represented by entity(ies), including PMI and its
Affiliates, that are, at 

  

 1 

 
the time of payment, party to this Agreement or an anti-contraband / anti-counterfeit agreement substantially similar to this Agreement, provided, however,
that if there are other entities that have entered into such similar agreements, the volumes taken into account for determining the percentage share of the volume of total cigarette sales in the preceding year in the domestic markets of the states
that were Member States of the European Union on January 1st, 2004, shall be limited to only those of PMI and its Affiliates, and not of any other entities that have entered into such similar agreements, if the Adjusted Index
Percentage calculated on PMI volume alone would be less than the 2004 Adjusted Index Percentage. The “Denominator” shall be the percentage share of the volume of total cigarette sales in the year 2004 by PMI and its Affiliates in the
domestic markets of the states that were Member States of the European Union on January 1st, 2004. An anti-contraband / anti-counterfeit agreement shall not be deemed substantially similar to the Agreement unless it has at least three of the
following four elements, (i) annual anti-contraband and anti-counterfeit payments of the type specified in this Appendix C; (ii) Supplemental Payments of the type specified in Section 4.01 of this Agreement; (iii) EC Compliance
Protocols of the type specified in Appendix B to this Agreement; and (iv) Tracking and Tracing Protocols of the type specified in Appendix D to this Agreement. 
 8. The Index Percentage for any given year is the Numerator divided by the Denominator, expressed as a percentage. 
 9. The Adjusted Index Percentage for any given year is derived from the Index Percentage for that year using the following formula: 
  

 2 

				
	 Index Percentage
	  	Adjusted Index
Percentage	 
	 0- up to but not including 5%
	  	0	%
	 5- up to but not including 15%
	  	12	%
	 15- up to but not including 25%
	  	24	%
	 25- up to but not including 35%
	  	36	%
	 35- up to but not including 45%
	  	68	%
	 45- up to but not including 55%
	  	84	%
	 55- up to but not including 65%
	  	92	%
	 65- up to but not including 75%
	  	96	%
	 75- up to but not including 85%
	  	98	%
	 85- up to but not including 95%
	  	99	%
	 95- up to but not including 115%
	  	100	%
	 115- up to but not including 140%
	  	101	%
	 140- up to but not including 170%
	  	102	%
	 170- up to but not including 200%
	  	103	%
	 200%+
	  	104	%

 In any year in which a payment is to be made and the Adjusted Index Percentage as calculated above
is equal to or more than 100%, then for the purposes of determining the relevant payment, the Adjusted Index Percentage shall be deemed to be equal (a) to 99% if PMI’s latest full calendar year volume of total cigarette sales in the
domestic markets of the states that were Member States of the European Union on January 1st, 2004 is less than 90% of the same figure for 2004 yet equal to or greater than 80% of the same figure for 2004; or (b) to 98% if PMI’s latest
full calendar year 

  

 3 

 
volume of total cigarette sales in the domestic markets of the states that were Member States of the European Union on January 1st, 2004 is less than
80% of the same figure for 2004. 
 10. In the event of an acquisition or divestiture by PMI or any of its Affiliates subsequent to the
Execution Date, the Denominator shall be adjusted in each year following the year of acquisition or divestiture to reflect what the Denominator would have been had either (i) the acquired company(s) been owned by PMI in 2004; or (ii) the
divested company(s) had not been owned by PMI in 2004. 
 11. The payments in paragraphs (2)-(5) will each be made by a single
electronic wire transfer into an account in the name of the European Community and maintained for such purpose at Commerzbank Belgium S.A., a bank duly incorporated under the laws of one of the Member States. 
 12. If, within thirty days of the date on which a payment is due pursuant to this Appendix, a claim is asserted which PMI believes in good faith may
entitle it to setoff or escrow pursuant to Article 10 of this Agreement, PMI may delay payment of the amount claimed, without any penalty, for up to 30 days so as to comply with the provisions of Section 10.01(c). 
 13. In the event that, at any time following the fifth anniversary of the Execution Date, PMI’s financial condition shall have substantially
deteriorated, as to give the Relevant Administrations reasonable and substantial doubt as to PMI’s ability to make the payments due on the sixth through twelfth anniversaries of the Execution Date, the Relevant Administrations shall so notify
PMI, and PMI thereafter shall obtain a bank guarantee or other equivalent security in favor of the Relevant Administrations for said 

  

 4 

 
payments. However, PMI shall not be obligated to obtain a bank guarantee or the equivalent security if it is commercially impracticable to obtain such bank
guarantee or security. 
  

 5 

 APPENDIX D - TRACKING AND TRACING PROTOCOLS 
 PROTOCOL 1 
 GENERAL
STATEMENT OF TRACKING AND TRACING 
 1.01. Scope and Purpose of
Protocols. 
 (a) Philip Morris International recognizes that giving the Relevant Administrations the effective and timely ability to
track and trace sales of Philip Morris Cigarettes is an important component of its commitment to fight the trade in Contraband Philip Morris Cigarettes. Philip Morris International is committed to a continuous process of dialogue and cooperation
with the Relevant Administrations to evaluate and address the trade in Contraband Philip Morris Cigarettes, and to making commercially reasonable efforts to implement product tracking and tracing measures that target, and are reasonably likely to
provide the Relevant Administrations with substantial additional assistance in their efforts to combat, the trade in Contraband Philip Morris Cigarettes. 
 (b) These Tracking and Tracing Protocols set forth the basic tracking and tracing procedures that the Parties believe are appropriate in light of existing market conditions and the current state of Tracking and
Tracing technologies, and describe additional steps which the Parties have identified in order to combat Contraband Philip Morris Cigarettes during the term of the Agreement. These provisions, however, do not apply to products which are sold and
distributed for any market in promotional packaging so long as the total volume of the Cigarettes using that promotional packaging for any market does not exceed 300 million Cigarettes in any given year. Notwithstanding the immediately
preceding, if the total volume of promotional packaging in the Member States and the Designated States in any given year exempted from the applicability of the Tracking and Tracing Protocols by the preceding sentence exceeds one billion Cigarettes,
the European Commission and Philip Morris International shall meet and confer to reassess the applicability of these Tracking and Tracing Protocols to promotional packaging, and, unless otherwise agreed at or following that meet and confer,
thereafter, these provisions shall apply to any amount of promotional packaging in the Member States and the Designated States in any given year that exceeds one billion Cigarettes and involves a promotional packaging that itself exceeds twenty
million cigarettes. 
 1.02. Definitions. Except as otherwise stated herein, the terms used in these Protocols are as defined in
Article 1 of the Anti-Contraband and Anti-Counterfeit Agreement and General Release (the “Agreement”). 
 1.03. Conflict with
Other Laws. Nothing in these Protocols shall require Philip Morris International to act in a way that violates applicable law. 

 PROTOCOL 2 
 PACK & CARTON MARKING AND CODING 
 2.01. Labeling for Intended Market of Retail Sale. 
 (a) The Parties agree that Philip Morris
International shall make commercially reasonable efforts to mark Packs and/or Cartons of Philip Morris Cigarettes with markings, codes or other information which permit a determination of the Intended Market of Retail Sale when such Packs or Cartons
have those markets identified in Exhibit A-1 as the Intended Market of Retail Sale. 
 (b) In the event that Philip Morris International
begins selling in a new market not covered by Protocols 2.01(a) or 2.02, Philip Morris International shall notify the Representatives of the Relevant Administrations as to the markings that Philip Morris International shall undertake to apply. Such
markings shall meet the requirements contained in Protocol 2.03, below, and 2.01(a), above, and such new market shall be added to the Exhibits of this Appendix, if applicable. 
 (c) On the Execution Date, Philip Morris shall provide OLAF with 20 copies of a manual designed to allow for the determination of the Intended Market of
Retail Sale for all Philip Morris Product marked in accordance with Protocol 2.01(a), above. Philip Morris shall update such manuals and Exhibits A-1 and A-2 as needed. 
 2.02. Intended Market of Retail Sale: Exceptions. 
 (a) The Parties further agree that, as an
exception to Protocol 2.01, Packs or Cartons that have as their Intended Market of Retail Sale those markets identified in Exhibit A-2 shall bear the labeling identified in Exhibit A-2, and that no additional, market-specific markings or other
labeling shall be required by this Agreement in respect of identifying the Intended Market of Retail Sale. 
 (b) Philip Morris International
may change the labeling of Packs or Cartons subject to the terms of 2.02(a) at any time so long as the new markings, codes or other information would permit a determination of the Intended Market of Retail Sale of such Packs or Cartons. Philip
Morris International shall provide notice of such new labeling to Representatives of the Relevant Administrations prior to the introduction of any Philip Morris Cigarettes bearing such new labeling into the retail channel in the Intended Market of
Retail Sale, and immediately upon Philip Morris International becoming aware that any Philip Morris Cigarettes bearing such new labeling are otherwise no longer under the control of Philip Morris International. 
 2.03. Pack and Carton Marking. In addition to the markings required by Protocol 2.01 and with the exception of the facilities and brands set forth
in 

  

 2 

 
Exhibit A-3 as of the Execution Date and the exception of Protocol 2.05, Philip Morris International shall mark all Packs or Cartons with embossed codes or
other markings to allow for the complete identification of: 
 (a) the date of manufacture of the product, 
 (b) the manufacturing facility at which the product was manufactured, 
 (c) the machine of manufacture, and 
 (d) the production shift during which the product was manufactured.

 2.04. Annual Review. On an annual basis, Philip Morris International and the Representatives of the Relevant Administrations shall
meet to determine what, if any, additional or improved markings, labeling, codes or scanning shall be required in general, or which, if any, requirements shall be changed on a market-by-market basis. Philip Morris International shall provide the
Representatives of the Relevant Administrations with updates, if any, to Exhibits A-1 and A-2. Philip Morris International agrees to make commercially reasonable efforts to implement such agreed changes within a reasonable period of time, and to
notify OLAF of the schedule for implementation thereof. Any such agreement shall be made based on a number of factors, including but not limited to changes in market dynamics, developments in Tracking and Tracing technology, changes in national or
local labeling requirements, and, if applicable, increases in Contraband Philip Morris Cigarettes in general or which had as the Intended Market of Retail Sale the market in question. 
 2.05. New Manufacturing Facilities. In the event that Philip Morris International acquires new manufacturing facilities which would be subject to
Protocol 2.03, Philip Morris International shall make commercially reasonable efforts to implement the requirements of Protocol 2.03 no later than 12 months after the acquisition. 
 PROTOCOL 3 
 MASTER CASE LABELING
AND SCANNING 
 3.01. Master Case Labeling 
 (a) To the extent required by the schedule attached as Exhibit B and the terms of Protocol 3.01(b), and 3.01(c), herein below, Philip Morris
International and/or its Contractors shall mark Master Cases with unique, machine scannable barcode labels prior to selling those Master Cases to a First Purchaser. The labels shall contain both the barcode and a human readable translation (i.e.,
spelled out in letters and numbers) of the barcode and shall be affixed to Master Cases with “non-peelable” adhesive. The labels shall permit Philip Morris International to 

  

 3 

 
link the code to product information, including the date of manufacture of the product, the manufacturing facility at which the product was manufactured, the
machine of manufacture, the production shift during which the product was manufactured, and, when scanned pursuant to Protocol 3.02, the identification of the First Purchaser and other information, including, but not limited to, that information
identified in Protocol 3.03. 
 (b) In the event that the First Purchaser is the sole First Purchaser of Philip Morris International for the
Intended Market of Retail Sale and that market has Pack or Carton markings satisfying Protocol 2.01, then Philip Morris International and/or its Contractors need not mark Master Cases sold to that First Purchaser for that market with unique barcode
labels. Markets meeting these conditions are set forth in Exhibit C-I to these Tracking and Tracing Protocols. 
 (c) During the term of the
Agreement, Philip Morris International shall maintain an ongoing program of research and development concerning methods and technologies for improving the security of Master Case marking. Philip Morris International shall provide a yearly report to
the Representatives of the Relevant Administrations concerning new technologies for Master Case markings. In the event that as a result of such research and development, Philip Morris International identifies suitable technologies for the
improvement or replacement of machine scannable barcode labels with other Master Case marking technologies that permit unique identification of Master Cases for the purpose of tracking sales to First Purchasers, Philip Morris International may
update its Master Case Labeling with such technologies, ensuring that at all times Master Cases required by these Tracking and Tracing Protocols to be marked to permit their unique identification are so marked in accordance with this Protocol 3.01,
or are marked so as to provide equivalent tracking and tracing capability. 
 3.02. Master Case Scanning. 
 (a) To the extent required by the schedule attached as Exhibit C and subject to the exception set forth in Protocol 3.02(b), Philip Morris International
and/or its Contractors shall scan Master Cases sold to First Purchasers in order to record the information reflected in the barcode labels applied pursuant to Protocol 3.01, and to link that information in a database with the information described
below in Protocol 3.03(a). 
 (b) Notwithstanding subsection (a), in the event that the First Purchaser is the sole First Purchaser of Philip
Morris International for the Intended Market of Retail Sale, and that market has Pack or Carton markings satisfying Protocol 2.01, then Philip Morris International and/or its Contractors need not physically scan Master Cases sold to that First
Purchaser for that market. Markets meeting these conditions are set forth in Exhibit C-I to these Tracking and Tracing Protocols. 
  

 4 

 3.03. Database. 
 (a) Philip Morris International shall make commercially reasonable efforts to maintain First Purchaser Databases (“First Purchaser Databases”) searchable by customer order or Master Case barcode
number for all markets in which it has implemented Master Case labeling and scanning pursuant to the requirements of Protocols 3.01 and 3.02. For all shipments of Philip Morris Cigarettes where Master Case Barcode Labels are scanned pursuant to
Protocol 3.02(a) and where the product shipped is produced 30 days or more after the Execution Date, the information contained in the First Purchaser Databases shall include: 
 (i) First Purchaser name and order number, 
 (ii) shipment date, 
 (iii) destination of shipment, 
 (iv) point of departure from the final Philip Morris International factory or warehouse, 
 (v) the consignee to whom the product was shipped, and 
 (vi) the Intended Market of Retail Sale; 
 provided however that in no event shall the First Purchaser Databases be required to include any of the foregoing information with respect to shipments of product produced less than 30 days after the Execution Date. 
 (b) With respect to all shipments encompassed by Protocol 3.03(a), Philip Morris International shall maintain any additional records necessary to
identify the sales price and the Intended Market of Retail Sale, including, but not limited to, the sales invoice, for at least five years. 
 (c) Electronic records created in the First Purchaser Databases pursuant to Protocol 3.03(a) shall be kept for at least five years. 
 (d) OLAF and Philip Morris International shall meet annually in accordance with Protocol 2.04 to discuss new technologies relating to the First Purchaser Databases in order to determine whether it is appropriate to expand upon the
information listed in subsection (a) above, or otherwise make changes to the First Purchaser Databases. 
 (e) Within 3 months of the
implementation of First Purchaser Databases in a market pursuant to Protocol 3.03(a) and the schedule set forth in Exhibit C(II)—(III) to these Tracking and Tracing Protocols, Philip Morris International 

  

 5 

 
shall provide the Relevant Administrations through their duly designated authorized representatives and law enforcement authorities with automated Query-Only
Access (“Query-Only Access”) privileges to the data in the First Purchaser Databases necessary for them to determine from complete barcode level information, the information in clauses (i) through (vi) of Protocol 3.03(a).
Philip Morris International shall make commercially reasonable efforts to provide said automated Query-Only Access 24 hours a day, seven days a week. Philip Morris International may except nights and weekends from this schedule as needed for the
purposes of systems maintenance and updating information. Philip Morris International shall make commercially reasonable efforts to address any technical difficulties that may arise. 
 (f) In the event that Philip Morris International cannot provide the Relevant Administrations with automated Query-Only Access to its First Purchaser
Databases as provided for by Protocol 3.03(e) due to good faith technical difficulties, the Relevant Administrations or their duly authorized representatives may request, via fax, telephone, or any other means, that Philip Morris International
provide First Purchaser Database information to OLAF. Philip Morris International shall comply with such a request by sending OLAF a fax or other electronic communication containing the requested First Purchaser Database information by the close of
the next business day at the latest. 
 (g) The Parties agree that the information contained in the First Purchaser Databases is highly
sensitive and confidential business information. Accordingly, such information (1) shall be used by the Relevant Administrations solely for the purposes specified in this Agreement, and for no other purpose, and (2) subject to the
exceptions set forth in this Protocol 3.03(g), shall be kept secret and confidential and shall not be disclosed to third parties, except as required by law. Without limiting the generality of the foregoing, the Parties agree that access to and use
of this information shall be governed by the following terms: 
 (i) OLAF, on behalf of the Relevant Administrations, shall
designate up to 5 specific services, agencies and/or departments of each of the Relevant Administrations who shall each have up to 5 authorized members (“Database Designees”) who shall have automated Query-Only Access to the First
Purchaser Databases. Only Database Designees shall have active, password protected access to the First Purchaser Databases on behalf of the Relevant Administrations. If, for operational reasons, a designated service, agency or department of the
Relevant Administrations requires more than 5 Database Designees, OLAF will request additional access and passwords from Philip Morris International for that designated service, agency or department, and such request shall not be unreasonably
refused. OLAF shall provide Philip Morris International upon request, with a list of the services, agencies and departments of the Relevant Administrations whose personnel have been designated as Database 

  

 6 

 
Designees, and the number of Database Designees in each service, agency or department. 
 (ii) The Database Designees shall query and search the First Purchaser Databases solely for the purpose of law enforcement inquiries
related to the Parties’ mutual goal of combating the trade in Contraband Philip Morris Cigarettes. 
 (iii) Prior to
making any query, the Database Designee shall verify that administratively reasonable steps have been taken to ensure that the Master Case barcode label to be queried is genuine. For the purposes of making such verification, the Database Designee
may query the First Purchaser Databases only after representing that the barcode label to be queried was obtained as part of a single seizure of three or more Master Cases. 
 (iv) The Database Designees shall not attempt to copy or download the First Purchaser Databases, such as customer lists, or utilize the
database for any purpose other than that set out in this Agreement. 
 (v) The Database Designees shall protect the
confidentiality of any information obtained from the First Purchaser Databases. 
 (vi) The Database Designees shall not
disclose to any unauthorized personnel any passwords or other security features designed to protect the First Purchaser Databases. 
 (vii) The Database Designees shall not share information obtained from the First Purchaser Databases with any third parties or entities except with duly authorized law enforcement authorities who are actually engaged in inquiries related to
the seizures which led to the specific query, who have an actual need to know such information, and who shall use such information only in connection with the relevant ongoing inquiries. 
 (viii) In the event that the Relevant Administrations need to make public information obtained from the First Purchaser Databases as part
of a criminal proceeding, or are otherwise legally required to disclose such information, the Relevant Administrations shall notify Philip Morris International prior to such disclosure to the extent permitted by law and make a good faith attempt to
provide Philip Morris International an opportunity to seek a protective order or other appropriate remedy. 
 (ix) In the
event that the Relevant Administrations seek to disclose information obtained from the First Purchaser Databases under circumstances not covered by Protocols 3.03(g)(vii) and (g)(viii) above, 

  

 7 

 
they may only do so with the written consent of Philip Morris International, which shall not be unreasonably withheld. 
 (h) The Parties agree that OLAF is responsible for making all reasonable efforts to train and inform the Database Designees about the handling and
importance of the secrecy and confidentiality of the passwords, security features and information contained in the First Purchaser Databases. The Parties further agree that, in the case of a knowing and willful breach of Protocol 3.03(g) by any
Database Designee or duly authorized law enforcement authorities, or other agent or representatives who receive information pursuant to Protocol 3.03(g), other than a person acquiring the data through compulsory legal process, Philip Morris
International may setoff any demonstrable and significant loss or damage to it resulting from any claims made against Philip Morris International as a result of damages sustained as a direct result of the unauthorized use of passwords, security
features or information contained in the First Purchaser Databases from any Appendix C payments owed to the Relevant Administrations as provided for in Section 4.01 of the Agreement. The Parties agree that the mere fact that information
provided to the Relevant Administrations has been made public shall not, in and of itself, constitute conclusive evidence of a breach of Protocol 3.03(g). Any dispute as to (i) whether the breach was knowing and willful, (ii) whether
Philip Morris International has suffered demonstrable loss or damage resulting from the unauthorized use of passwords, security features or information contained in the First Purchaser Databases, (iii) whether such a loss is significant or
de minimis, or (iv) the amount of such loss or damage, shall be settled by the Arbitrators in accordance with Section 12.02 of the Agreement. 
 PROTOCOL 4 
 SECOND AND SUBSEQUENT LAYER
TRACKING 
 4.01. Purpose of Second or Subsequent Layer Tracking. Philip Morris International and the Relevant
Administrations recognize that in certain circumstances effective tracking and tracing to prevent the trade of Contraband Philip Morris Cigarettes can be enhanced when First Purchasers of Philip Morris International maintain databases that are
similar to First Purchaser Databases regarding their customers (“Second Layer Tracking”) and/or their customers’ customers (“Subsequent Layer Tracking”). For this purpose, Philip Morris International has
developed Second Layer Tracking Kits which include a laptop computer, a scanner, and a database application (“Second Layer Tracking Kits”). 
 4.02. Deployment of Second and Subsequent Layer Tracking. Philip Morris International agrees and undertakes to make Second Layer Tracking Kits reasonably available to any First Purchaser or Subsequent Purchaser
where (i) Philip Morris International and OLAF agree to do so pursuant to Protocol 6.01(f) 

  

 8 

 
of these Tracking and Tracing Protocols; (ii) Philip Morris International is required to do so by the Arbitrators pursuant to Protocol 6.01(g) of these
Tracking and Tracing Protocols; or (iii) a First Purchaser or a Subsequent Purchaser requests Second Layer Tracking Kits so that it may carry out a voluntary Second or Subsequent Layer Tracking program consistent with this Protocol. 

4.03. Training by Philip Morris International. Philip Morris International shall make commercially reasonable efforts to appropriately train
all recipients of Second Layer Tracking Kits. Such training shall cover the appropriate use of the Second Layer Tracking Kits under these Protocols. However, due to the fact that Second and Subsequent Layer Tracking involve data being provided by
persons who are not employed by Philip Morris International, the Parties agree that Second or Subsequent Layer Tracking data entered into the Database by third parties shall not be a basis for any allegation by the Relevant Administrations of breach
or non-compliance with the requirements of the Agreement or these Appendices thereto. 
 4.04. Access to Second Layer Tracking
Information. Philip Morris International agrees and undertakes that participants in any Second or Subsequent Layer Tracking shall be required to provide any Second or Subsequent Layer Tracking information collected by the participant to Philip
Morris International. To the extent Philip Morris International receives such information, it shall maintain the information in the same manner as the First Purchaser Database. The Relevant Administrations shall be afforded access to any such Second
or Subsequent Layer Tracking information in the same manner and subject to the same rules and conditions as the First Purchaser Database as provided for in Protocol 3 of these Tracking and Tracing Protocols. 
 4.05. Information on Second and Subsequent Layer Tracking Developments. Philip Morris International agrees to provide OLAF at its written request
with quarterly reports on developments in Second or Subsequent Layer tracking. Such updates shall include lists of participating First and Subsequent Purchasers, details on the kits provided, and information and discussion on any issues that may
have arisen during the preceding period. 
 PROTOCOL 5 
 NEW MASTER CASE CODING AND SCANNING TECHNOLOGIES 
 5.01. Research and Development. Philip Morris International and the Relevant Administrations recognize that research, development and
implementation or enhancement, as appropriate, of new tracking and tracing technologies is an important component of ensuring the continued effectiveness of Philip Morris International’s tracking and tracing initiatives. 
  

 9 

 5.02. Research of New Master Case Labeling and Scanning Technologies. As set forth in Protocol
3.01(c), Philip Morris International shall maintain an ongoing program researching alternative or enhanced methods for marking Master Cases with machine scannable or human readable (i.e., spelled out in letters and numbers) codes, and shall meet
with representatives of the Relevant Administrations on an annual basis, in accordance with Protocol 2.04 to determine if, how and when any new technology should be implemented. 
 PROTOCOL 6 
 ADDITIONAL MEASURES 
 6.01. Notice of Interest 
 (a) If,
during any 12 month period after the Execution Date, OLAF learns of at least 7 seizures, each totaling at least 4 million Contraband Philip Morris Cigarettes, that have a particular market as the Intended Market of Retail Sale (the
“Market of Interest”), it may provide Philip Morris International with information regarding these incidents (a “Notice of Interest”). A Notice of Interest shall provide historical data for seizures of Philip Morris
Cigarettes that have the Market of Interest as the Intended Market of Retail Sale, including the number of seizures of such Philip Morris Cigarettes for the previous twelve months, and for each such seizure OLAF shall make best efforts to provide:

 (i) the date and location of the seizure; 
 (ii) the brand of seized Cigarettes indicated on the packaging; 
 (iii) the amount of seized Cigarettes; 
 (iv) any Identification Markings that appear on the Master Cases or Cartons of seized cigarettes; 
 (v) a brief statement outlining the basis for OLAF’s belief that the seized Cigarettes are Contraband Philip Morris Cigarettes as opposed to Counterfeit Philip Morris Cigarettes; and 
 (vi) if available, samples of the seized Cigarettes (to the extent possible), in the condition they were in at the time of seizure, unless
Philip Morris International has already inspected the seizure under Article 4.01(b) of the Agreement. 
 (b) Promptly upon receiving a Notice
of Interest, Philip Morris International shall conduct an internal review in order to determine whether, on the basis of the information available to it, it is possible to determine whether there has been trade in Contraband Philip Morris Cigarettes
that have the Market 

  

 10 

 
of Interest as the Intended Market of Retail Sale as outlined in the Notice of Interest provided to Philip Morris International by OLAF under Protocol
6.01(a) above, and, if so, the cause and source of such trade, and what measures should be taken to address that trade. 
 (c) If OLAF has
provided Philip Morris International with samples of the seized Cigarettes, Philip Morris International shall, as part of the internal review described in subsection (b) above, examine the samples in order to determine, in accordance with the
factors set forth in Appendix F to this Agreement, whether the seized Cigarettes are Counterfeit Philip Morris Cigarettes or Philip Morris Cigarettes. 
 (d) Within 60 days of receiving a Notice of Interest, Philip Morris International shall provide a written response to OLAF detailing the findings of its internal review and, if necessary, the steps it has taken, or
will be taking, to address the issues raised in the Notice of Interest. The response shall include the findings as to whether the Cigarettes seized are Philip Morris Cigarettes or Counterfeit Philip Morris Cigarettes and, if Counterfeit Philip
Morris Cigarettes, examination results demonstrating that conclusion. Any dispute as to whether the Cigarettes are Counterfeit Philip Morris Cigarettes shall be settled in accordance with Section 4.01(j) of the Agreement. 
 (e) If OLAF takes issue with the response of Philip Morris International, it may request in writing that Philip Morris International undertake one or
more of the following measures: 
 (i) make commercially reasonable efforts to implement Second or Subsequent Layer Tracking
for selected First Purchasers of Philip Morris Cigarettes that have the Market of Interest as the Intended Market of Retail Sale; 
 (ii) request that the First Purchaser who sells to a Subsequent Purchaser whose products have been the subject of at least two of the seizures that gave rise to the Notice of Interest, request that such Subsequent Purchaser implement Second
or Subsequent Layer Tracking, if such Subsequent Purchaser is a direct customer of the First Purchaser. In the event that the First Purchaser refuses to honor such request, Philip Morris International will cease supplying Philip Morris Cigarettes to
such First Purchaser, who will thereafter be a Blocked Contractor. If such Subsequent Purchaser is not a direct customer of a First Purchaser, then Philip Morris International shall request that the First Purchaser make commercially reasonable
efforts to require that such Subsequent Purchaser implement Second or Subsequent Layer Tracking. In the event that the First Purchaser refuses to take such steps, Philip Morris International will 

  

 11 

 
cease supplying Philip Morris Cigarettes to such First Purchaser, who will thereafter be a Blocked Contractor. 
 (iii) implement new Master Case coding technologies, or accelerate the schedule for implementation of the labeling and scanning
requirements, such that such implementation occurs as soon as practicable, for relevant sales of Philip Morris Cigarettes that have the Market of Interest as the Intended Market of Retail Sale or for relevant First Purchasers of Philip Morris
Cigarettes that have the Market of Interest as the Intended Market of Retail Sale; or 
 (iv) remove the Market of Interest
from Exhibits C-1 and A-2 (if applicable), add the Market of Interest to the Exhibits, as appropriate, and otherwise make such Market of Interest subject to Pack Marking, Master Case Labeling and Master Case Scanning, according to Protocols 2.01(a),
3.01(a) and 3.02(a), as appropriate, for a period of five years. 
 (f) Within 30 days of Philip Morris International receiving a written
request from OLAF under subsection (e) above, Philip Morris International and OLAF shall meet and confer in good faith in order to determine whether any of the measures set forth in subsection (e) above should be implemented. If the
dispute has not been resolved within 60 days of Philip Morris International receiving OLAF’s written request, such dispute shall be settled by the Arbitrators in accordance with Section 12.02 of the Agreement. 
 (g) In any proceeding brought under Protocol 6.01(f) of these Tracking and Tracing Protocols, the Arbitrators may require Philip Morris International to
implement one or more of the measures set forth in subsection (e) above only where it has been proven by the greater weight of the evidence that: 
 (i) in the 12 month period referred to in the Notice of Interest, there have been at least 7 seizures each totaling at least 4 million Contraband Philip Morris Cigarettes, that have the Market of Interest as the
Intended Market of Retail Sale; 
 (ii) measures that Philip Morris International has adopted for Philip Morris Cigarettes
that have the Market of Interest as the Intended Market of Retail Sale are insufficient to combat the trade in Contraband Philip Morris Cigarettes that have the Market of Interest as the Intended Market of Retail Sale; 
 (iii) the measure(s) to be implemented from subsection (e) above are achievable through commercially reasonable efforts and are an
effective response to the trade in Contraband Philip Morris Cigarettes that have the Market of Interest as the Intended Market of Retail Sale; 
  

 12 

 (iv) the implementation of the measure(s) from subsection (e) above are reasonably
likely to materially reduce the amount, or materially improve the prevention or detection, of Contraband Philip Morris Cigarettes that have the Market of Interest as the Intended Market of Retail Sale; and 
 (v) where the measure to be implemented from subsection (e) above is a new Master Case coding technology, it has been demonstrated
that it is, or would be, effective and its implementation is reasonably targeted at the elimination, prevention or detection of Contraband Philip Morris Cigarettes that have the Market of Interest as the Intended Market of Retail Sale. 

(h) Nothing in this Protocol 6 shall preclude Philip Morris International from adopting (either unilaterally or at the request of OLAF or the Relevant
Administrations) the measures set forth in subsection (e) for Cigarettes with a particular Intended Market of Retail Sale. 
 PROTOCOL 7

 NEW CARTON AND PACK CODING AND
SCANNING TECHNOLOGIES 
 7.01. Research of Carton and/or Pack Coding Technologies. 
 (a) Philip Morris International shall maintain an ongoing program of researching, developing, enhancing and implementing technologies for marking Cartons
and/or Packs with unique scannable codes. 
 (b) During the term of the Agreement, Philip Morris International shall maintain an ongoing
program of research and development concerning methods and technologies for improving Carton and Pack Coding technologies. Philip Morris International shall provide a yearly report to the Representatives of the Relevant Administrations concerning
new technologies for Carton and/or Pack coding. 
 7.02. Implementation of Carton and/or Pack Coding Technologies. In recognition of
the principles of the Agreement, once Carton and/or Pack Coding technologies are commercially feasible, Philip Morris International agrees and undertakes to implement Carton and/or Pack Coding technologies in accordance with the conditions set forth
below. Philip Morris International shall make commercially reasonable efforts to make modifications to the First Purchaser Database and Second and Subsequent Layer Tracking databases to include notation of Carton codes, as appropriate and
technically feasible. 
  

 13 

 (a) Philip Morris International shall implement Carton and/or Pack Coding technologies for Philip Morris
Cigarettes that have a market listed under Tier I Markets in Exhibit D of these Tracking and Tracing protocols as the Intended Market of Retail Sale, if: 
 (i) the implementation of Carton and/or Pack Coding for Philip Morris Cigarettes that have that Tier I market as the Intended Market of Retail Sale is achievable through commercially reasonable efforts; 
 (ii) the effectiveness of the Carton and/or Pack Coding technology has been demonstrated to be appropriate for industrial application; and

 (iii) the implementation of Carton and/or Pack Coding is reasonably likely to significantly reduce the amount of Contraband
Philip Morris Cigarettes that have that Tier I market as the Intended Market of Retail Sale. 
 (b) Philip Morris International shall
implement Carton and/or Pack Coding technologies for Philip Morris Cigarettes that have a market listed under Tier II Markets in Exhibit D of these Tracking and Tracing protocols as the Intended Market of Retail Sale, if: 
 (i) in the previous year, there have been at least 7 seizures, each totaling at least 4 million Contraband Philip Morris Cigarettes,
that have that Tier II market as the Intended Market of Retail Sale; 
 (ii) measures that Philip Morris International has
adopted for Philip Morris Cigarettes that have that Tier II market as the Intended Market of Retail Sale are insufficient to combat the trade in Contraband Philip Morris Cigarettes that have that Tier II market as the Intended Market of Retail Sale;

 (iii) the implementation of Carton and/or Pack Coding is reasonably targeted at the elimination, prevention and/or
detection of Contraband Philip Morris Cigarettes that have that Tier II market as the Intended Market of Retail Sale; 
 (iv)
the implementation of Carton and/or Pack Coding is achievable through commercially reasonable efforts and is an effective response for Philip Morris Cigarettes that have that Tier II market as the Intended Market of Retail Sale; 
  

 14 

 (v) the effectiveness of the Carton and/or Pack Coding technology has been demonstrated
to be appropriate for industrial application; and 
 (vi) the implementation of Carton and/or Pack Coding is reasonably likely
to significantly reduce the amount of Contraband Philip Morris Cigarettes that have that Tier II market as the Intended Market of Retail Sale. 
 (c) Beginning 180 days after the Execution Date, OLAF may provide written notice to Philip Morris International that either the criteria of subsection (a) have been met for Philip Morris Cigarettes that have a particular Tier I market
as defined in Exhibit D as the Intended Market of Retail Sale, or the criteria of subsection (b) have been met for Philip Morris Cigarettes that have a particular Tier II market as defined in Exhibit D as the Intended Market of Retail Sale, and
request that Philip Morris International implement Carton and/or Pack Coding for those Philip Morris Cigarettes. If Philip Morris International disagrees with OLAF’s written request, Philip Morris International and OLAF shall meet and confer in
good faith within 30 days of Philip Morris International receiving such a request from OLAF in order to determine whether the criteria of subsection (a) or (b) above have been met and whether Carton and/or Pack Coding should be implemented
for Philip Morris Cigarettes that have the market in question as the Intended Market of Retail Sale. If the dispute cannot be resolved within 60 days of Philip Morris International receiving OLAF’s written request, such dispute shall be settled
by the Arbitrators in accordance with Section 12.02 of the Agreement and by application of the criteria set forth in subsections (a) or (b) above as applicable. 
 (d) Nothing in this Protocol 7 shall preclude Philip Morris International from adopting (either unilaterally or at the request of OLAF or the Relevant
Administrations) measures set forth in subsections (a) or (b), above, for Cigarettes with a particular Intended Market of Retail Sale. 
  

 15 

 *Material omitted pursuant to a request for confidential treatment 
 Material filed separately with the Securities and Exchange Commission 
 EXHIBIT A-1 
 MARKETS WITH
MARKET-SPECIFIC LABELING 
 I. In accordance with Section 2.01(a), Philip Morris
International shall make commercially reasonable efforts to mark Packs or Cartons of Philip Morris Cigarettes that have one of the following domestic markets as the Intended Market of Retail Sale with markings, codes or other information which
permit a determination that such domestic market is the Intended Market of Retail Sale: 
  

			
	1.	  	*
	2.	  	*
	3.	  	*
	4.	  	*
	5.	  	*
	6.	  	*
	7.	  	*
	8.	  	 *

	9.	  	 Austria 

	10.	  	*
	11.	  	 *

	12.	  	*
	13.	  	Belgium
	14.	  	*
	15.	  	*
	16.	  	*
	17.	  	*
	18.	  	*
	19.	  	*
	20.	  	*
	21.	  	*
	22.	  	*
	23.	  	*
	24.	  	*
	25.	  	*
	26.	  	*
	27.	  	*
	28.	  	*
	29.	  	 *

	30.	  	*
	31.	  	 *

	32.	  	*
	33.	  	*
	34.	  	*

  

 1 

 *Material omitted pursuant to a request for confidential treatment 
 Material filed separately with the Securities and Exchange Commission 
  

			
	35.	  	Cyprus
	36.	  	*
	37.	  	Czech Republic
	38.	  	*
	39.	  	Denmark
	40.	  	 *

	41.	  	 *

	42.	  	*
	43.	  	*
	44.	  	*
	45.	  	 *

	46.	  	 *

	47.	  	Estonia
	48.	  	*
	49.	  	Finland
	50.	  	France and Monaco
	51.	  	*
	52.	  	 *

	53.	  	*
	54.	  	*
	55.	  	Germany
	56.	  	Greece
	57.	  	*
	58.	  	*
	59.	  	*
	60.	  	*
	61.	  	*
	62.	  	Hungary
	63.	  	*
	64.	  	*
	65.	  	*
	66.	  	*
	67.	  	Ireland
	68.	  	*
	69.	  	Italy
	70.	  	*
	71.	  	*
	72.	  	*
	73.	  	*
	74.	  	*
	75.	  	*
	76.	  	*
	77.	  	*

  

 2 

 *Material omitted pursuant to a request for confidential treatment 
 Material filed separately with the Securities and Exchange Commission 
  

			
	78.	  	*
	79.	  	 * 

	80.	  	Latvia
	81.	  	*
	82.	  	*
	83.	  	*
	84.	  	Lithuania
	85.	  	Luxembourg
	86.	  	*
	87.	  	*
	88.	  	*
	89.	  	 * 

	90.	  	*
	91.	  	*
	92.	  	Malta
	93.	  	*
	94.	  	*
	95.	  	*
	96.	  	*
	97.	  	*
	98.	  	*
	99.	  	*
	100.	  	*
	101.	  	 * 

	102.	  	 *

	103.	  	Netherlands
	104.	  	*
	105.	  	*
	106.	  	*
	107.	  	*
	108.	  	*
	109.	  	*
	110.	  	*
	111.	  	*
	112.	  	 *

	113.	  	 * 

	114.	  	*
	115.	  	 *

	116.	  	 Poland

	117.	  	Portugal
	118.	  	*
	119.	  	*
	120.	  	*

  

 3 

 *Material omitted pursuant to a request for confidential treatment 
 Material filed separately with the Securities and Exchange Commission 
  

			
	121.	  	*
	122.	  	*
	123.	  	*
	124.	  	*
	125.	  	*
	126.	  	*
	127.	  	Slovakia
	128.	  	Slovenia
	129.	  	*
	130.	  	Spain
	131.	  	Sweden
	132.	  	*
	133.	  	*
	134.	  	*
	135.	  	*
	136.	  	*
	137.	  	*
	138.	  	*
	139.	  	*
	140.	  	*
	141.	  	United Kingdom
	142.	  	*
	143.	  	*
	144.	  	*
	145.	  	*
	146.	  	*

 EXHIBIT A-2 
 MARKETS WITHOUT MARKET-SPECIFIC LABELING 
 I. As described below, the following domestic markets share common labeling at the Pack and Carton level, so that Packs and Cartons from those domestic markets do not have unique labeling and shall bear the labeling
indicated: 
  

					
	 	  	 Market
	  	 Labeling

	1.	  	*	  	*
	2.	  	*	  	*
	3.	  	*	  	*
	4.	  	*	  	*
	5.	  	*	  	*
	6.	  	*	  	*
	7.	  	*	  	*
	8.	  	*	  	*

  

 4 

 *Material omitted pursuant to a request for confidential treatment 
 Material filed separately with the Securities and Exchange Commission 
  

					
	9.	  	*	  	*
	10.	  	*	  	*
	11.	  	*	  	*
	12.	  	*	  	*
	13.	  	*	  	*
	14.	  	*	  	*
	15.	  	*	  	*
	16.	  	*	  	*
	17.	  	*	  	*
	18.	  	*	  	*
	19.	  	*	  	*
	20.	  	*	  	*
	21.	  	*	  	*
	22.	  	*	  	*
	23.	  	*	  	*
	24.	  	*	  	*
	25.	  	*	  	*
	26.	  	*	  	*
	27.	  	*	  	*

  

 5 

 *Material omitted pursuant to a request for confidential treatment 
 Material filed separately with the Securities and Exchange Commission 
  

					
	28.	  	*	  	*
	29.	  	*	  	*
	30.	  	*	  	*
	31.	  	*	  	*
	32.	  	*	  	*
	33.	  	*	  	*
	34.	  	*	  	*
	35.	  	*	  	*
	36.	  	*	  	*
	37.	  	*	  	*
	38.	  	*	  	*
	39.	  	*	  	*
	40.	  	*	  	*
	41.	  	*	  	*
	42.	  	*	  	*
	43.	  	*	  	*
	44.	  	*	  	*
	45.	  	*	  	*

 II. Philip Morris International need not place market-specific labeling on Packs or Cartons which
have the domestic markets listed in Exhibit A-2(I) as the Intended Market of Retail Sale. 
  

 6 

 *Material omitted pursuant to a request for confidential treatment 
 Material filed separately with the Securities and Exchange Commission 
 EXHIBIT A-3 
 MANUFACTURING CENTERS WITH
LIMITED PACK AND CARTON CODING 
 I. As described below, the
following Manufacturing Centers have only limited Pack and Carton Coding, and are thus excluded from the requirements of Protocol 2.03 for the products identified below: 
  

							
	  	  	 Manufacturing Center
	  	 Product Manufactured
	  	 Coding Limitation

	1.	  	*	  	*	  	 Coding contains factory, machine number and week of manufacture

				
	2.	  	*	  		  	 TPM Coding

				
	3.	  	*	  	*	  	 TPM Coding

 EXHIBIT A-4 
 DOMESTIC MARKET IN WHICH PHILIP MORRIS INTERNATIONAL 
 DOES NOT DO BUSINESS 
 I. As described below, Philip Morris International does not sell product with the following domestic markets as the Intended Market of Retail Sale as of
the Execution Date: 
  

			
	1.	  	*
	2.	  	*

  

 7 

 *Material omitted pursuant to a request for confidential treatment 
 Material filed separately with the Securities and Exchange Commission 
  

			
	3.	  	*
	4.	  	*
	5.	  	*
	6.	  	*
	7.	  	*
	8.	  	*
	9.	  	*
	10.	  	*
	11.	  	*
	12.	  	*
	13.	  	*
	14.	  	*
	15.	  	*
	16.	  	*
	17.	  	*
	18.	  	*
	19.	  	*
	20.	  	*
	21.	  	*
	22.	  	*
	23.	  	*
	24.	  	*
	25.	  	*
	26.	  	*
	27.	  	*
	28.	  	*
	29.	  	*
	30.	  	*
	31.	  	*
	 32.
	  	*
	33.	  	*
	34.	  	*
	35.	  	*
	36.	  	*
	37.	  	*
	38.	  	*
	39.	  	*

 II. In the event that Philip Morris International begins selling product with one of the domestic
markets listed in Exhibit A-4(I) as the Intended Market of Retail Sale, Philip Morris International shall follow the procedures set forth in Protocol 2.01(b). 
 EXHIBIT A-5 
 PROCEDURES FOR LABELING
DUTY-FREE PACK AND/OR CARTONS 
 I. For World Wide
Duty Free, * of the Execution Date, Philip Morris International shall make commercially reasonable efforts to mark 
  

 8 

 *Material omitted pursuant to a request for confidential treatment 
 Material filed separately with the Securities and Exchange Commission 
 Packs and/or Cartons of Philip Morris Cigarettes with markings, codes or other information which permit a determination of the country or region in which Philip Morris International intends such Cigarettes to be sold
duty-free, in accordance with the following: 
  

			
	A.	  	
		  	*
	B.	  	
		  	*
	C.	  	
		  	*

 D. Nothing in the foregoing shall preclude Philip Morris International from adopting unique
markings, codes, or other information for markets where the annual sales of Philip Morris Cigarettes to be sold to duty-free consumers are below the thresholds described above. 
  

 9 

 *Material omitted pursuant to a request for confidential treatment 
 Material filed separately with the Securities and Exchange Commission 
 EXHIBIT B 
 SCHEDULE FOR IMPLEMENTATION
OF MASTER CASE BARCODE LABELING 
 I. Philip Morris International
shall make commercially reasonable efforts to apply barcode labels within thirty days of the Execution Date to all Master Cases of Cigarettes manufactured by Philip Morris International at its own facilities for sale by Philip Morris International
with Intended Market of Retail Sale in the following domestic markets: 
  

	 	1.	Austria 

	 	2.	Belgium 

	 	3.	Denmark 

	 	4.	Finland 

	 	5.	France 

	 	6.	Germany 

	 	7.	Greece 

	 	8.	Ireland 

	 	9.	Italy 

	 	10.	Luxembourg 

	 	11.	Netherlands 

	 	12.	Portugal 

	 	13.	Spain 

	 	14.	Sweden 

	 	15.	United Kingdom 

 II. Philip Morris International shall
make commercially reasonable efforts to apply barcode labels within 12 months of the Execution Date to all Master Cases of Cigarettes manufactured by Philip Morris International at its own facilities for sale by Philip Morris International with an
Intended Market of Retail Sale in         *         markets worldwide         *        
and in the following domestic markets: 
  

			
	1.	  	*
	2.	  	*
	3.	  	*
	4.	  	*
	5.	  	*
	6.	  	*
	7.	  	*
	8.	  	*
	9.	  	*

  

 10 

 *Material omitted pursuant to a request for confidential treatment 
 Material filed separately with the Securities and Exchange Commission 
  

			
	10.	  	*
	11.	  	*
	12.	  	*
	13.	  	*
	14.	  	*
	15.	  	*
	16.	  	*
	17.	  	*
	18.	  	*
	19.	  	*
	20.	  	*
	21.	  	*
	22.	  	*
	23.	  	*
	24.	  	*
	25.	  	*
	26.	  	*
	27.	  	*
	28.	  	*
	29.	  	*
	30.	  	*
	31.	  	*
	32.	  	*
	33.	  	*
	34.	  	*
	35.	  	*
	36.	  	*
	37.	  	*
	38.	  	*
	39.	  	*
	40.	  	*
	41.	  	*
	42.	  	*
	43.	  	*
	44.	  	*
	45.	  	*
	46.	  	*
	47.	  	*
	48.	  	*
	49.	  	*
	50.	  	*
	51.	  	*
	52.	  	*

  

 11 

 *Material omitted pursuant to a request for confidential treatment 
 Material filed separately with the Securities and Exchange Commission 
  

			
	53.	  	*
	54.	  	*
	55.	  	*
	56.	  	*

 III. Philip Morris International shall make commercially reasonable efforts to apply barcode
labels within    *    of the Execution Date to all Master Cases of Cigarettes manufactured by Philip Morris International for sale by Philip Morris International
worldwide.                                     * 
 IV. Recognizing the particular nature of the relationship between Philip Morris International and Third Party Manufacturers, the Parties agree that
Philip Morris International shall make commercially reasonable efforts to implement Master Case barcode labeling within    *    of the Execution Date for products such Third Party Manufacturers manufacture for
Philip Morris International.            * 
  

 12 

 *Material omitted pursuant to a request for confidential treatment 
 Material filed separately with the Securities and Exchange Commission 
 EXHIBIT C 
 SCHEDULE FOR IMPLEMENTATION
OF MASTER CASE BARCODE LABEL 
 SCANNING 

I. Single First Purchaser Markets 
 A.
For Philip Morris Cigarettes which have the following markets as the Intended Market of Retail Sale, Philip Morris International sells to a single First Purchaser and marks the product with Pack or Carton markings satisfying Protocol 2.01:

  

			
	1.	  	*
	2.	  	*
	3.	  	*
	4.	  	*
	5.	  	*
	6.	  	*
	7.	  	*
	8.	  	*
	9.	  	*
	10.	  	*
	11.	  	*
	12.	  	*
	13.	  	*
	14.	  	*
	15.	  	*
	16.	  	*
	17.	  	*
	18.	  	*
	19.	  	*
	20.	  	*
	21.	  	*
	22.	  	*
	23.	  	*
	24.	  	*
	25.	  	*
	26.	  	*
	27.	  	*
	28.	  	*

  

 13 

 *Material omitted pursuant to a request for confidential treatment 
 Material filed separately with the Securities and Exchange Commission 
  

			
	29.	  	*
	30.	  	*
	31.	  	*
	32.	  	*
	33.	  	*
	34.	  	*
	35.	  	*
	36.	  	*
	37.	  	*
	38.	  	*
	39.	  	*
	40.	  	*
	41.	  	*
	42.	  	*
	43.	  	*
	44.	  	*
	45.	  	*
	46.	  	*
	47.	  	*
	48.	  	*
	49.	  	*
	50.	  	*
	51.	  	*
	52.	  	*
	53.	  	*
	54.	  	*
	55.	  	*
	56.	  	*
	57.	  	*
	58.	  	*
	59.	  	*
	60.	  	*
	61.	  	*
	62.	  	*
	63.	  	*
	64.	  	*
	65.	  	*
	66.	  	*
	67.	  	*
	68.	  	*
	69.	  	*
	70.	  	*
	71.	  	*
	72.	  	*
	73.	  	*

 B. Pursuant to Section 3.02(b), Philip Morris International and/or its Contractors need not
scan Master Cases sold to the First Purchaser for the markets set forth in Exhibit C(I)(A), which shall be updated as needed. 
 II.
Implementation in Tier I Markets 
  

 14 

 *Material omitted pursuant to a request for confidential treatment 
 Material filed separately with the Securities and Exchange Commission 
 A. Unless altered by agreement of the Parties at a meeting of Philip Morris International and the Representatives of the Relevant Administrations, “Tier I Markets” shall be defined as
        *                    *        , and the following Philip
Morris International markets: 
  

			
	1	  	*
	2	  	*
	3	  	*
	4	  	*
	5	  	*
	6	  	*
	7	  	*
	8	  	*
	9	  	*
	10	  	*
	11	  	*
	12	  	*
	13	  	*
	14	  	

 B. Philip Morris International shall make commercially reasonable efforts to bring all Tier I
Markets into compliance with the requirements of Protocol 3.02(a) and (b) within         *         of the Execution Date. 
 III. Implementation in Tier II Markets 
 A.
Unless altered by agreement of the Parties at a meeting of Philip Morris International and the Representatives of the Relevant Administrations, “Tier II Markets” shall be defined as the following Philip Morris International markets:

  

 15 

 *Material omitted pursuant to a request for confidential treatment 
 Material filed separately with the Securities and Exchange Commission 
  

			
	1.	  	*
	2.	  	*
	3.	  	*
	4.	  	*
	5.	  	*
	6.	  	*
	7.	  	*
	8.	  	*
	9.	  	*
	10.	  	*
	11.	  	*
	12.	  	*
	13.	  	*
	14.	  	*
	15.	  	*
	16.	  	*
	17.	  	*
	18.	  	*
	19.	  	*
	20.	  	*
	21.	  	*
	22.	  	*
	23.	  	*
	24.	  	*
	25.	  	*
	26.	  	*
	27.	  	*
	28.	  	*
	29.	  	*
	30.	  	*

 B. With the exception of markets with third party manufacturers, Philip Morris International shall
make commercially reasonable efforts to bring all Tier II Markets into compliance with the requirements of Protocol 3.02(a) and (b) within         *         of the
Execution Date. 
 C. Recognizing the particular nature of the relationship between Philip Morris International and Third Party
Manufacturers, the Parties agree that Philip Morris International shall make commercially reasonable efforts 
  

 16 

 *Material omitted pursuant to a request for confidential treatment 
 Material filed separately with the Securities and Exchange Commission 
 to bring all Tier II Markets into compliance with the requirements of Protocol 3.02(a) and (b) within         *         of the
Execution Date for products such Third Party Manufacturers manufacture for Philip Morris International. 
 IV. Non-compliance with Protocol
3.02(a) and (b) Due to Distribution or Other Changes: 
 (a) In the event that Philip Morris International effects a
change in the manner of distribution, an acquisition, a sourcing change, or other business transaction which will have the effect of rendering a market (or markets) compliant with the requirements of Protocol 3.02(a) and (b) no longer compliant
therewith, or will have the effect of rendering a market exempt from such requirements no longer exempt, Philip Morris International shall so notify the Representatives of the Relevant Administrations within 30 days of such change. In the event that
such market (or markets) is within the Territory of a Member State or a Designated State, Philip Morris International shall make commercially reasonable efforts to bring such market back into compliance with the requirements of Protocol 3.02(a) and
(b) within 2 years of such change. 
 (b) Similarly, in the event that Philip Morris International effects a change in
the manner of distribution, an acquisition, a sourcing change, or other business transaction which will have the effect of making a particular market (or markets) no longer required to be compliant with the requirements of Protocol 3.02(a) and (b),
then, Philip Morris International shall so notify the Representatives of the Relevant Administrations and may henceforth treat such market as exempt from or no longer required to be compliant with such requirements, as the case may be. 

Philip Morris International shall make commercially reasonable efforts to bring all markets that have changed from a Single First Purchaser Market to
a Multiple First Purchaser Market (“Tier III Markets”) into compliance with the requirements of Protocol 3.02(a) and (b) within         *         of the
change, as follows: 
  

					
	 	 	Date of Change	 	Deadline for Implementation
	1.            *	 	*	 	*

  

 17 

 *Material omitted pursuant to a request for confidential treatment 
 Material filed separately with the Securities and Exchange Commission 
 EXHIBIT D 
 MARKET GROUPINGS FOR
NEW PACK AND CARTON CODING AND 
 SCANNING TECHNOLOGIES 
 I. Tier I Markets 
 A. Tier I Markets Defined. With the exception of any market that has a sole First Purchaser of Philip Morris International for such market and that
market has Pack or Carton markings satisfying Protocol 2.01, and subject to the time limit set for third party manufacturers in Exhibit D(I)(B), the following domestic markets are defined as Tier I Markets for the purposes of Protocol 7: 

 

			
	1.	  	Austria
	2.	  	Belgium
	3.	  	Cyprus
	4.	  	Czech Republic
	5.	  	Denmark
	6.	  	Estonia
	7.	  	Finland
	8.	  	France
	9.	  	Germany
	10.	  	Greece
	11.	  	Hungary
	12.	  	Ireland
	13.	  	Italy
	14.	  	Latvia
	15.	  	Lithuania
	16.	  	Luxembourg
	17.	  	Malta
	18.	  	Netherlands
	19.	  	Poland
	20.	  	Portugal
	21.	  	Slovakia
	22.	  	Slovenia
	23.	  	Spain
	24.	  	Sweden
	25.	  	United Kingdom

 B. Recognizing the particular nature of the relationship between Philip Morris International and
Third Party Manufacturers, the Parties agree that, in determining commercial reasonableness, the time frame for 
  

 18 

 *Material omitted pursuant to a request for confidential treatment 
 Material filed separately with the Securities and Exchange Commission 
 implementation of any obligations in Tier I markets imposed pursuant to Protocol 7 shall, in the case of products manufactured for Philip Morris International by Third Party Manufacturers, be extended
for    *    beyond that otherwise applicable in the case of products manufactured by Philip Morris International. 
 II. Tier II Markets 
 A. Tier II Markets Defined. With the exception of any market that has a sole First
Purchaser of Philip Morris International for such a market and that market has Pack or Carton markings satisfying Protocol 2.01, and subject to the time limit set for third party manufacturers in Exhibit D(I)(B), the following domestic markets are
defined as Tier II Markets for the purposes of Protocol 7: 
  

			
	1.	  	*
	2.	  	*
	3.	  	*
	4.	  	*
	5.	  	*
	6.	  	*
	7.	  	*
	8.	  	*
	9.	  	*
	10.	  	*
	11.	  	*
	12.	  	*
	13.	  	*
	14.	  	*
	15.	  	*
	16.	  	*
	17.	  	*
	18.	  	*
	19.	  	*
	20.	  	*
	21.	  	*
	22.	  	*

 B. Recognizing the particular nature of the relationship between Philip Morris International and
Third Party Manufacturers, the Parties agree that, in determining commercial reasonableness, the time frame for implementation of any obligations in Tier II markets imposed pursuant to Protocol 7 shall, in the case of products manufactured for
Philip Morris International by Third Party Manufacturers, be extended for         *         beyond 

  

 19 

 
that otherwise applicable in the case of products manufactured by Philip Morris International. 
  

 20 

 APPENDIX E 
  

																															
	 	 	AT	 	BE	 	DE	 	DK	 	EL	 	ES	 	FI	 	FR	 	IE	 	IT	 	LU	 	NL	 	PT	 	SE	 	UK
	 VAT
	 	20%	 	21%	 	16%	 	25%	 	18%	 	16%	 	22%	 	19.6%	 	19%	 	20%	 	12%	 	19%	 	19%	 	25%	 	17.5%
	 SPECIFIC EXCISE
	 	21.38 €
 per
thousand
	 	18.7474 €
 per
thousand
	 	61.7 €
 per
thousand
	 	81.7 €
 per
thousand
	 	4.2699 €
 per
thousand
	 	3.91 €
 per
thousand
	 	15.13 €
 per
thousand
	 	7.41 €
 per
thousand
	 	124.94 €
 per
thousand
	 	3.86 €
 per
thousand
	 	11.8914 €
per
thousand	 	53.27 €
 per
thousand
	 	40.69 €
 per
thousand
	 	21.96 €
 per
thousand
	 	154.34 €
 per
thousand

	 AD
 VALOREM
 EXCISE
	 	42%	 	45.84	 	24.23%	 	21.22%	 	53.86%	 	54%	 	50%	 	55.19%	 	18.46%	 	54.26%	 	46.84%	 	20.51%	 	23%	 	39.2%	 	22%
	 CUSTOMS
 DUTY
	 	57.6%	 	57.6%	 	57.6%	 	57.6%	 	57.6%	 	57.6%	 	57.6%	 	57.6%	 	57.6%	 	57.6%	 	57.6%	 	57.6%	 	57.6%	 	57.6%	 	57.6%

 1. Method to be used for calculation. 
 For purposes of Supplemental Payments under Art. 4 of the Agreement, the minimum retail sales price to the public, all taxes included, shall be calculated on any Philip Morris Cigarettes seized, and the taxes and
duties owed under Art. 4 of the Agreement, if any, shall be calculated on the basis of those that would have been due had the product been sold at that minimum sales price to the public, in the Member State of seizure. 
 The method of calculation of customs duties, excise taxes and V.A.T., as applicable, for each Member State or the EC shall be the method normally employed by that Member
State or by the EC. 
 The Parties may agree upon formulas or electronic spreadsheets that implement the above method. 
 2. Arbitration 
 If, on occasion of receipt by a Member State of a
Supplemental Payment, disagreement arises as to the results of these calculations, the relevant Parties shall meet and confer within 5 days of receipt of the Supplemental Payment by the Member State, in a good faith attempt to resolve these
differences. If agreement cannot be reached within 10 days thereafter, then the relevant Parties shall each have recourse to Arbitration under Art. 12.02 of the Agreement to determine the amounts to be paid under Art. 4 of the Agreement in that
instance. 
 3. Amendments 
 The above table and markups
shall be updated as modifications are made to the underlying tax rates, upon any New Member State acceding to the EC or becoming a party to the Agreement, or at any time as otherwise agreed in writing by the Parties. 

 APPENDIX F 
 FACTORS FOR ESTABLISHING COUNTERFEIT PHILIP MORRIS CIGARETTES 
 For the purpose of Section 4.01(j) of the
Agreement, in determining whether Cigarettes bearing Philip Morris Trademarks are Counterfeit Philip Morris Cigarettes, the following factors shall be considered and compared with indicia of genuine Philip Morris Cigarettes as provided by Philip
Morris International and updated from time to time: 
  

	 	•	 	 the look, shape, color, and size of the packaging; 

  

	 	•	 	 the materials used in the packaging; 

  

	 	•	 	 the size, font, color, language and content of the text appearing on the packaging; 

  

	 	•	 	 the markings, codes, and stamps appearing on the packaging; 

  

	 	•	 	 the look, shape, color, and size of the Cigarettes; 

  

	 	•	 	 the markings on the Cigarettes; 

  

	 	•	 	 the materials used in the Cigarettes paper and filter; 

  

	 	•	 	 the nature and quality of the tobacco; and 

  

	 	•	 	 all the ingredients of the Cigarettes. 

 *Material omitted pursuant to a request for confidential treatment 
 Material filed separately with the Securities and Exchange Commission 
 APPENDIX G 
 List of Designated States 
  

			
	*	  	*
	*	  	*
	*	  	*
	*	  	*
	*	  	*
	*	  	*
	*	  	*
	*	  	*
	*	  	*
	*	  	*
	*	  	*
	*	  	*
	*	  	*
	*	  	*
	*	  	*
	*	  	
	*	  	
	*	  	

 Procedure for Amending Designated States List 
 OLAF may seek to amend the list of Designated States by adding a State to, or deleting a State from, the list of Designated States, based upon a reasonable belief that
the addition or deletion of a State from that list is consistent with the purpose and intent of this Agreement. OLAF shall notify Philip Morris International of any proposed change to the list. If Philip Morris International objects to the proposed
change, Philip Morris International shall state its objection in writing within 30 days of receiving the notice. Philip Morris International and OLAF shall meet and confer within 60 days of Philip Morris International sending its objection in an
attempt to reach agreement on any changes to the list of Designated States. If Philip Morris International and OLAF cannot reach agreement, either of them may seek arbitration pursuant to article 12.02 of this Agreement. 
 If a State is added to the list of Designated States by agreement between Philip Morris International and OLAF, Philip Morris International shall have one year from the
date a State is added to the Designated States list in which to comply with all its obligations pursuant to this Agreement and the Appendices thereto in connection with that Designated State. If a State is added to the list of Designated States by
the Arbitrator, Philip Morris International shall make commercially reasonable efforts to comply with its obligations pursuant to this Agreement and the Appendices in connection with that Designated State within 30 days of the Arbitrator’s
order to that effect. 

 JONES DAY 
  

					
	 Luc G. Houben*
 Thierry Buytaert
 Bernard Amory
 Alexandre Verheyden*
 Mireille Buydens**
	  	 LOUIZALAAN 480, BUS 7
 AVENUE LOUISE 480, BTE 7
 B-1050 BRUSSELS, BELGIUM
 TELEPHONE: 32.(0)2.645.14.11 FACSIMILE: 32.(0)2.645.14.45
	 	 Howard M. Liebman
 Member of the District
 of Columbia Bar

  
 Advocten-Avocats 
  

	 	Members of the Bussels Bar 

	*	Members of the New York Bar 

	**	Member of the Paris Bar 

 The Registrar 
 Court of Justice of the European Communities, 
 L-2925 Luxembourg 

Subject:    Joined Cases C-131/03 P and C-146/03 P, RJ Reynolds et al and Philip Morris International v. Commission

 Dear Sir: 
 We hereby
wish to inform you that our client Philip Morris International, the appellant in the Case C-146/03 P, has decided to withdraw from the present proceedings. 
 We look forward to receiving the Order by the President of the Court that this case has been removed from the Register. 
  

	
	Respectfully submitted,
	
	 
	Eric Morgen de Rivery

 ATLANTA  BRUSSELS  CHICAGO  CLEVELAND  COLUMBUS  DALLAS  FRANKFURT  HONG KONG  HOUSTON  IRVINE  LONDON  LOS
ANGELES  MADRID MENLO  PARK MILAN  MUMBAI*  MUNICH  NEW DELHI  NEW YORK  PARIS PITSBURGH
SHANGHAI  SINGAPORE  SYDNEY  TAPPEI  TOKYO  WASHINGTON 
 *ASSOCIATE FIRM 

 APPENDIX I 
  

					
		  	              A	  	            B
	 1
	  	Country (Market)	  	Brand
	2	  	AFGHANISTAN	  	BOND STREET
	3	  	AFGHANISTAN	  	L&M
	4	  	AFGHANISTAN	  	MARLBORO
	5	  	AFGHANISTAN	  	PARLIAMENT
	6	  	ALBANIA	  	ASSOS
	7	  	ALBANIA	  	BOND STREET
	8	  	ALBANIA	  	L&M
	9	  	ALBANIA	  	MARLBORO
	10	  	ALBANIA	  	PRESIDENT
	11	  	ALBANIA	  	VIRGINIA SLIMS
	12	  	ANDORRA	  	CHESTERFIELD
	13	  	ANDORRA	  	L&M
	14	  	ANDORRA	  	MARLBORO
	15	  	ANDORRA	  	PHILIP MORRIS
	16	  	ANDORRA	  	SG
	17	  	ANGOLA	  	MARLBORO
	18	  	ARGENTINA	  	BENSON & HEDGES
	19	  	ARGENTINA	  	CHESTERFIELD
	20	  	ARGENTINA	  	COLORADO
	21	  	ARGENTINA	  	IMPARCIALES
	22	  	ARGENTINA	  	L&M
	23	  	ARGENTINA	  	LE MANS
	24	  	ARGENTINA	  	MARLBORO
	25	  	ARGENTINA	  	PARLIAMENT
	26	  	ARGENTINA	  	PARTICULARES
	27	  	ARGENTINA	  	PHILIP MORRIS
	28	  	ARGENTINA	  	VIRGINIA SLIMS
	29	  	ARGENTINA	  	WILTON
	30	  	ARMENIA	  	ASSOS
	31	  	ARMENIA	  	BOND STREET
	32	  	ARMENIA	  	CHESTERFIELD
	33	  	ARMENIA	  	L&M
	34	  	ARMENIA	  	MARLBORO
	35	  	ARMENIA	  	PARLIAMENT
	36	  	ARMENIA	  	RED & WHITE
	37	  	ARMENIA	  	VIRGINIA SLIMS
	38	  	ARUBA	  	MARLBORO
	39	  	AUSTRALIA	  	ALBANY
	40	  	AUSTRALIA	  	ALPINE
	41	  	AUSTRALIA	  	CHESTERFIELD
	42	  	AUSTRALIA	  	FORTUNE
	43	  	AUSTRALIA	  	LONGBEACH
	44	  	AUSTRALIA	  	MARLBORO
	45	  	AUSTRALIA	  	PETER JACKSON
	46	  	AUSTRALIA	  	SUPER
	47	  	AUSTRALIA	  	VISCOUNT
	48	  	AUSTRIA	  	BASIC
	49	  	AUSTRIA	  	CHESTERFIELD
	50        	  	AUSTRIA	  	EVE

 APPENDIX I 
  

							
		 	              A	 	            B	  	
	 1
	 	Country (Market)	 	Brand	  	
	 51
	 	AUSTRIA	 	MARLBORO	  	
	 52
	 	AUSTRIA	 	MURATTI	  	
	 53
	 	AUSTRIA	 	PHILIP MORRIS	  	
	 54
	 	AZERBAIJAN	 	CONGRESS	  	
	 55
	 	AZERBAIJAN	 	L&M	  	
	 56
	 	AZERBAIJAN	 	MARLBORO	  	
	 57
	 	AZERBAIJAN	 	PARLIAMENT	  	
	 58
	 	AZORES	 	L&M	  	
	 59
	 	AZORES	 	MARLBORO	  	
	 60
	 	AZORES	 	RITZ	  	
	 61
	 	AZORES	 	SG	  	
	 62
	 	BAHAMAS	 	MARLBORO	  	
	 63
	 	BAHRAIN	 	L&M	  	
	 64
	 	BAHRAIN	 	MARLBORO	  	
	 65
	 	BAHRAIN	 	MERIT	  	
	 66
	 	BAHRAIN	 	PARLIAMENT	  	
	 67
	 	BAHRAIN	 	PHILIP MORRIS	  	
	 68
	 	BAHRAIN	 	RED & WHITE	  	
	 69
	 	BELARUS	 	L&M	  	
	 70
	 	BELARUS	 	MARLBORO	  	
	 71
	 	BELARUS	 	PARLIAMENT	  	
	 72
	 	BELARUS	 	VIRGINIA SLIMS	  	
	 73
	 	BELGIUM	 	ARMADA	  	
	 74
	 	BELGIUM	 	CHESTERFIELD	  	
	 75
	 	BELGIUM	 	L&M	  	
	 76
	 	BELGIUM	 	MARLBORO	  	
	 77
	 	BELGIUM	 	MERIT	  	
	 78
	 	BELGIUM	 	MURATTI	  	
	 79
	 	BELGIUM	 	NORTH POLE	  	
	 80
	 	BELGIUM	 	PHILIP MORRIS	  	
	 81
	 	BENIN	 	BOND STREET	  	
	 82
	 	BENIN	 	MARLBORO	  	
	 83
	 	BENIN	 	VISA	  	
	 84
	 	BERMUDA	 	MARLBORO	  	
	 85
	 	BOLIVIA	 	BIG BEN	  	
	 86
	 	BOLIVIA	 	L&M	  	
	 87
	 	BOLIVIA	 	MARLBORO	  	
	 88
	 	BOSNIA & HERZEGOVINA	 	BEST	  	
	 89
	 	BOSNIA & HERZEGOVINA	 	CLASSIC	  	
	 90
	 	BOSNIA & HERZEGOVINA	 	DRINA	  	
	 91
	 	BOSNIA & HERZEGOVINA	 	MARLBORO	  	
	 92
	 	BOSNIA & HERZEGOVINA	 	MORAVA	  	
	 93
	 	BOSNIA & HERZEGOVINA	 	VEK	  	
	 94        
	 	BRAZIL	 	BENSON & HEDGES	  	

 APPENDIX I 
  

							
		  	              A	  	                B	  	
	 1
	  	Country (Market)	  	Brand	  	
	 95
	  	BRAZIL	  	CHANCELLOR	  	
	 96
	  	BRAZIL	  	DALLAS	  	
	 97
	  	BRAZIL	  	GALAXY	  	
	 98
	  	BRAZIL	  	LARK	  	
	 99
	  	BRAZIL	  	L&M	  	
	 100
	  	BRAZIL	  	LUXOR	  	
	 101
	  	BRAZIL	  	MARLBORO	  	
	 102
	  	BRAZIL	  	MUSTANG	  	
	 103
	  	BRAZIL	  	PALACE	  	
	 104
	  	BRAZIL	  	PARLIAMENT	  	
	 105
	  	BRAZIL	  	SHELTON	  	
	 106
	  	BRUNEI	  	ALPINE	  	
	 107
	  	BRUNEI	  	L&M	  	
	 108
	  	BRUNEI	  	MARLBORO	  	
	 109
	  	BRUNEI	  	VIRGINIA SLIMS	  	
	 110
	  	BURKINA FASO	  	BOND STREET	  	
	 111
	  	BURKINA FASO	  	MARLBORO	  	
	 112
	  	CAMBODIA	  	L&M	  	
	 113
	  	CAMBODIA	  	MARLBORO	  	
	 114
	  	CAMEROON	  	BOND STREET	  	
	 115
	  	CAMEROON	  	MARLBORO	  	
	 116
	  	CANARY ISLANDS	  	CHESTERFIELD	  	
	 117
	  	CANARY ISLANDS	  	L&M	  	
	 118
	  	CANARY ISLANDS	  	LARK	  	
	 119
	  	CANARY ISLANDS	  	MARLBORO	  	
	 120
	  	CANARY ISLANDS	  	PHILIP MORRIS	  	
	 121
	  	CAPE VERDE	  	MARLBORO	  	
	 122
	  	CAPE VERDE	  	SG	  	
	 123
	  	CAYMAN ISLANDS	  	MARLBORO	  	
	 124
	  	CHANNEL ISLANDS	  	MARLBORO	  	
	 125
	  	CHILE	  	BOND STREET	  	
	 126
	  	CHILE	  	L&M	  	
	 127
	  	CHILE	  	MARLBORO	  	
	 128
	  	CHILE	  	PHILIP MORRIS	  	
	 129
	  	COLOMBIA	  	L&M	  	
	 130
	  	COLOMBIA	  	MARLBORO	  	
	 131
	  	COOK ISLAND	  	MARLBORO	  	
	 132
	  	CORSICA	  	CHESTERFIELD	  	
	 133
	  	CORSICA	  	L&M	  	
	 134
	  	CORSICA	  	MARLBORO	  	
	 135
	  	CORSICA	  	MURATTI	  	
	 136
	  	CORSICA	  	PHILIP MORRIS	  	
	 137
	  	COSTA RICA	  	DERBY	  	
	 138
	  	COSTA RICA	  	MARLBORO	  	
	 139
	  	CROATIA	  	MARLBORO	  	
	 140
	  	REPUBLIC OF CYPRUS	  	ASSOS	  	
	 141
	  	REPUBLIC OF CYPRUS	  	CHESTERFIELD	  	
	 142
	  	REPUBLIC OF CYPRUS	  	EVE	  	
	 143
	  	REPUBLIC OF CYPRUS	  	L&M	  	
	 144
	  	REPUBLIC OF CYPRUS	  	MARLBORO	  	
	 145      
	  	REPUBLIC OF CYPRUS	  	MURATTI	  	

 APPENDIX I 
  

					
		  	              A	  	            B
	 1
	  	Country (Market)	  	Brand
	 146
	  	REPUBLIC OF CYPRUS	  	PARLIAMENT
	 147
	  	REPUBLIC OF CYPRUS	  	PHILIP MORRIS
	 148
	  	REPUBLIC OF CYPRUS	  	RED & WHITE
	 149
	  	CZECH REPUBLIC	  	BAKARA
	 150
	  	CZECH REPUBLIC	  	BOND STREET
	 151
	  	CZECH REPUBLIC	  	CHESTERFIELD
	 152
	  	CZECH REPUBLIC	  	L&M
	 153
	  	CZECH REPUBLIC	  	MARLBORO
	 154
	  	CZECH REPUBLIC	  	PETRA
	 155
	  	CZECH REPUBLIC	  	PHILIP MORRIS
	 156
	  	CZECH REPUBLIC	  	RED & WHITE
	 157
	  	CZECH REPUBLIC	  	SPARTA
	 158
	  	CZECH REPUBLIC	  	START
	 159
	  	DEM. REP. OF CONGO	  	MARLBORO
	 160
	  	DENMARK	  	CHESTERFIELD
	 161
	  	DENMARK	  	MARLBORO
	 162
	  	DENMARK	  	SKJOL
	 163
	  	DF AUSTRALIA DF	  	ALPINE
	 164
	  	DF AUSTRALIA DF	  	LONGBEACH
	 165
	  	DF AUSTRALIA DF	  	MARLBORO
	 166
	  	DF AUSTRALIA DF	  	PETER JACKSON
	 167
	  	DF JAPAN DF	  	LARK
	 168
	  	DF JAPAN DF	  	MARLBORO
	 169
	  	DF JAPAN DF	  	NEXT
	 170
	  	DF JAPAN DF	  	PARLIAMENT
	 171
	  	DF JAPAN DF	  	PHILIP MORRIS
	 172
	  	DF JAPAN DF	  	VIRGINIA SLIMS
	 173
	  	DF NEW ZEALAND DF	  	MARLBORO
	 174
	  	DF TAHITI DF	  	MARLBORO
	 175
	  	DJIBOUTI	  	MARLBORO
	 176
	  	DOMINICAN REPUBLIC	  	LIDER
	 177
	  	DOMINICAN REPUBLIC	  	MARLBORO
	 178
	  	DOMINICAN REPUBLIC	  	NACIONAL
	 179
	  	EAST TIMOR	  	MARLBORO
	 180
	  	ECUADOR	  	BELMONT
	 181
	  	ECUADOR	  	FULL SPEED
	 182
	  	ECUADOR	  	LARK
	 183
	  	ECUADOR	  	L&M
	 184
	  	ECUADOR	  	LIDER
	 185
	  	ECUADOR	  	MARLBORO
	 186
	  	EGYPT	  	L&M
	 187
	  	EGYPT	  	MARLBORO
	 188
	  	EGYPT	  	MERIT
	 189
	  	EL SALVADOR	  	DIPLOMAT
	 190
	  	EL SALVADOR	  	LIDER
	 191
	  	EL SALVADOR	  	MARLBORO
	 192
	  	EQUATORIAL GUINEA DOM.	  	BOND STREET
	 193
	  	EQUATORIAL GUINEA DOM.	  	MARLBORO
	 194
	  	ESTONIA	  	BOND STREET
	 195
	  	ESTONIA	  	L&M
	 196      
	  	ESTONIA	  	MARLBORO

 APPENDIX I 
  
  

					
		  	              A	  	            B
	 1
	  	Country (Market)	  	Brand
	 197
	  	ESTONIA	  	NEXT
	 198
	  	ESTONIA	  	PARLIAMENT
	 199
	  	ESTONIA	  	PHILIP MORRIS
	 200
	  	ESTONIA	  	RED & WHITE
	 201
	  	FIJI	  	ALPINE
	 202
	  	FIJI	  	LONGBEACH
	 203
	  	FIJI	  	MARLBORO
	 204
	  	FINLAND	  	BELMONT
	 205
	  	FINLAND	  	CHESTERFIELD
	 206
	  	FINLAND	  	L&M
	 207
	  	FINLAND	  	MARLBORO
	 208
	  	FINLAND	  	MULTIFILTER
	 209
	  	FRANCE	  	ARMADA
	 210
	  	FRANCE	  	BASIC
	 211
	  	FRANCE	  	CHESTERFIELD
	 212
	  	FRANCE	  	L&M
	 213
	  	FRANCE	  	MARLBORO
	 214
	  	FRANCE	  	MERIT
	 215
	  	FRANCE	  	MURATTI
	 216
	  	FRANCE	  	PHILIP MORRIS
	 217
	  	FRANCE	  	 SG

	 218
	  	FRENCH POLYNESIA	  	L&M
	 219
	  	FRENCH POLYNESIA	  	MARLBORO
	 220
	  	GABON	  	MARLBORO
	 221
	  	GAMBIA	  	BOND STREET
	 222
	  	GAMBIA	  	MARLBORO
	 223
	  	GEORGIA	  	CHESTERFIELD
	 224
	  	GEORGIA	  	L&M
	 225
	  	GEORGIA	  	MARLBORO
	 226
	  	GEORGIA	  	PARLIAMENT
	 227
	  	GERMANY	  	BASIC
	 228
	  	GERMANY	  	CHESTERFIELD
	 229
	  	GERMANY	  	EVE
	 230
	  	GERMANY	  	F6
	 231
	  	GERMANY	  	JUWEL
	 232
	  	GERMANY	  	KARO
	 233
	  	GERMANY	  	L&M
	 234
	  	GERMANY	  	MARLBORO
	 235
	  	GERMANY	  	MERIT
	 236
	  	GERMANY	  	MULTIFILTER
	 237
	  	GERMANY	  	NEXT
	 238
	  	GERMANY	  	PARLIAMENT
	 239
	  	GERMANY	  	PHILIP MORRIS
	 240      
	  	GREECE	  	ASSOS

 APPENDIX I 
  
  

					
		  	              A	  	            B
	 1
	  	Country (Market)	  	Brand
	 241
	  	GREECE	  	CHESTERFIELD
	 242
	  	GREECE	  	L&M
	 243
	  	GREECE	  	MARLBORO
	 244
	  	GREECE	  	MERIT
	 245
	  	GREECE	  	MURATTI
	 246
	  	GREECE	  	NEXT
	 247
	  	GREECE	  	OLD NAVY
	 248
	  	GREECE	  	PAPASTRATOS
	 249
	  	GREECE	  	PHILIP MORRIS
	 250
	  	GREECE	  	PRESIDENT ONE
	 251
	  	GREECE	  	SAGA
	 252
	  	GREECE	  	SANTE
	 253
	  	GUATEMALA	  	DIPLOMAT
	 254
	  	GUATEMALA	  	LIDER
	 255
	  	GUATEMALA	  	MARLBORO
	 256
	  	GUATEMALA	  	RUBIOS
	 257
	  	GUINEA	  	ASSOS
	 258
	  	GUINEA	  	MARLBORO
	 259
	  	GUINEA BISSAU	  	MARLBORO
	 260
	  	HONDURAS	  	LIDER
	 261
	  	HONDURAS	  	MARLBORO
	 262
	  	HONG KONG	  	BOND STREET
	 263
	  	HONG KONG	  	GOOD COMPANION
	 264
	  	HONG KONG	  	MARLBORO
	 265
	  	HONG KONG	  	PHILIP MORRIS
	 266
	  	HONG KONG	  	SARATOGA
	 267
	  	HONG KONG	  	VIRGINIA SLIMS
	 268
	  	HUNGARY	  	BOND STREET
	 269
	  	HUNGARY	  	EVE
	 270
	  	HUNGARY	  	HELIKON
	 271
	  	HUNGARY	  	L&M
	 272
	  	HUNGARY	  	MARLBORO
	 273
	  	HUNGARY	  	MULTIFILTER
	 274
	  	HUNGARY	  	PHILIP MORRIS
	 275
	  	ICELAND	  	L&M
	 276
	  	ICELAND	  	MARLBORO
	 277
	  	INDIA	  	MARLBORO
	 278
	  	INDONESIA	  	LONGBEACH
	 279
	  	INDONESIA	  	MARLBORO
	 280
	  	IRELAND	  	MARLBORO
	 281
	  	ISRAEL	  	ASSOS
	 282
	  	ISRAEL	  	EVE
	 283      
	  	ISRAEL	  	L&M

 APPENDIX I 
  
  

					
		  	              A	  	            B
	 1
	  	Country (Market)	  	Brand
	 284
	  	ISRAEL	  	MARLBORO
	 285
	  	ISRAEL	  	NEXT
	 286
	  	ISRAEL	  	PARLIAMENT
	 287
	  	ISRAEL	  	PRESIDENT
	 288
	  	ITALY	  	CHESTERFIELD
	 289
	  	ITALY	  	DIANA
	 290
	  	ITALY	  	L&M
	 291
	  	ITALY	  	MARLBORO
	 292
	  	ITALY	  	MERCEDES
	 293
	  	ITALY	  	MERIT
	 294
	  	ITALY	  	MULTIFILTER
	 295
	  	ITALY	  	MURATTI
	 291
	  	ITALY	  	PHILIP MORRIS
	 297
	  	IVORY COAST	  	MARLBORO
	 298
	  	JAPAN	  	L&M
	 299
	  	JAPAN	  	LARK
	 300
	  	JAPAN	  	MARLBORO
	 301
	  	JAPAN	  	MERIT
	 302
	  	JAPAN	  	NEXT
	 303
	  	JAPAN	  	OASIS
	 304
	  	JAPAN	  	PARLIAMENT
	 305
	  	JAPAN	  	PHILIP MORRIS
	 306
	  	JAPAN	  	VIRGINIA SLIMS
	 307
	  	JORDAN	  	L&M
	 308
	  	JORDAN	  	MARLBORO
	 309
	  	KAZAKHSTAN	  	APOLLO SOYUZ
	 310
	  	KAZAKHSTAN	  	ASTRA
	 311
	  	KAZAKHSTAN	  	BENSON & HEDGES
	 312
	  	KAZAKHSTAN	  	BOND STREET
	 313
	  	KAZAKHSTAN	  	CONGRESS
	 314
	  	KAZAKHSTAN	  	KAZAKHSTAN
	 315
	  	KAZAKHSTAN	  	L&M
	 316
	  	KAZAKHSTAN	  	MARLBORO
	 317
	  	KAZAKHSTAN	  	MEDEA
	 318
	  	KAZAKHSTAN	  	NEXT
	 319
	  	KAZAKHSTAN	  	OPTIMA
	 320
	  	KAZAKHSTAN	  	PARLIAMENT
	 321
	  	KAZAKHSTAN	  	POLYOT
	 322
	  	KAZAKHSTAN	  	PRIMA
	 323
	  	KAZAKHSTAN	  	VIRGINIA SLIMS
	 324
	  	KIRGHIZSTAN	  	BOND STREET
	 325
	  	KIRGHIZSTAN	  	L&M
	 326      
	  	KIRGHIZSTAN	  	MARLBORO

 APPENDIX I 
  
  

					
		  	              A	  	            B
	 1
	  	Country (Market)	  	Brand
	 327
	  	KIRGHIZSTAN	  	PARLIAMENT
	 328
	  	KIRIBATI	  	ALPINE
	 329
	  	KOREA	  	ELAN
	 330
	  	KOREA	  	LARK
	 331
	  	KOREA	  	MARLBORO
	 332
	  	KOREA	  	PARLIAMENT
	 333
	  	KOREA	  	PHILIP MORRIS
	 334
	  	KOREA	  	VIRGINIA SLIMS
	 335
	  	KOSOVO	  	MARLBORO
	 336
	  	KUWAIT	  	L&M
	 337
	  	KUWAIT	  	MARLBORO
	 338
	  	KUWAIT	  	MERIT
	 339
	  	KUWAIT	  	PARLIAMENT
	 340
	  	KUWAIT	  	PHILIP MORRIS
	 341
	  	KUWAIT	  	RED & WHITE
	 342
	  	LAOS	  	MARLBORO
	 343
	  	LATVIA	  	BOND STREET
	 344
	  	LATVIA	  	CHESTERFIELD
	 345
	  	LATVIA	  	KLAIPEDA
	 346
	  	LATVIA	  	L&M
	 347
	  	LATVIA	  	MARLBORO
	 348
	  	LATVIA	  	PARLIAMENT
	 349
	  	LATVIA	  	PHILIP MORRIS
	 350
	  	LATVIA	  	RED & WHITE
	 351
	  	LEBANON	  	BOND STREET
	 352
	  	LEBANON	  	CHESTERFIELD
	 353
	  	LEBANON	  	MARLBORO
	 354
	  	LEBANON	  	MERIT
	 355
	  	LIBERIA	  	BOND STREET
	 356
	  	LIBERIA	  	MARLBORO
	 357
	  	LITHUANIA	  	ASTRA
	 358
	  	LITHUANIA	  	BOND STREET
	 359
	  	LITHUANIA	  	KASTITYS
	 360
	  	LITHUANIA	  	KAUNAS
	 361
	  	LITHUANIA	  	KLAIPEDA
	 362
	  	LITHUANIA	  	L&M
	 363
	  	LITHUANIA	  	MARLBORO
	 364
	  	LITHUANIA	  	PARLIAMENT
	 365
	  	LITHUANIA	  	PRIMA
	 366
	  	LITHUANIA	  	RED & WHITE
	 367
	  	LUXEMBOURG	  	ARMADA
	 368
	  	LUXEMBOURG	  	BASIC
	 369      
	  	LUXEMBOURG	  	CHESTERFIELD

 APPENDIX I 
  

					
		  	              A	  	            B
	 1
	  	Country (Market)	  	Brand
	 370
	  	LUXEMBOURG	  	L&M
	 371
	  	LUXEMBOURG	  	MARLBORO
	 372
	  	LUXEMBOURG	  	MERIT
	 373
	  	LUXEMBOURG	  	MURATTI
	 374
	  	LUXEMBOURG	  	PHILIP MORRIS
	 375
	  	MACAU	  	CHESTERFIELD
	 376
	  	MACAU	  	GOOD COMPANION
	 377
	  	MACAU	  	MARLBORO
	 378
	  	MACAU	  	VIRGINIA SLIMS
	 379
	  	MACEDONIA	  	MARLBORO
	 380
	  	MADEIRA	  	CHESTERFIELD
	 381
	  	MADEIRA	  	L&M
	 382
	  	MADEIRA	  	MARLBORO
	 383
	  	MADEIRA	  	PORTUGUES
	 384
	  	MADEIRA	  	SG
	 385
	  	MALAYSIA	  	L&M
	 386
	  	MALAYSIA	  	MARLBORO
	 387
	  	MALDIVES	  	GOOD COMPANION
	 388
	  	MALDIVES	  	MARLBORO
	 389
	  	MALTA	  	MARLBORO
	 390
	  	MAURITANIA	  	CONGRESS
	 391
	  	MAURITANIA	  	MARLBORO
	 392
	  	MAYOTTE	  	MARLBORO
	 393
	  	MEXICO	  	BENSON & HEDGES
	 394
	  	MEXICO	  	BROADWAY
	 395
	  	MEXICO	  	DELICADOS
	 396
	  	MEXICO	  	ELEGANTES
	 397
	  	MEXICO	  	FAROS
	 398
	  	MEXICO	  	L&M
	 399
	  	MEXICO	  	LIDER
	 400
	  	MEXICO	  	MARLBORO
	 401
	  	MEXICO	  	TIGRES
	 402
	  	MICRONESIA OUTER ISL.	  	BENSON & HEDGES
	 403
	  	MICRONESIA OUTER ISL.	  	CAMBRIDGE
	 404
	  	MICRONESIA OUTER ISL.	  	MARLBORO
	 405
	  	MOLDOVA	  	BOND STREET
	 406
	  	MOLDOVA	  	L&M
	 407
	  	MOLDOVA	  	MARLBORO
	 408
	  	MOLDOVA	  	PARLIAMENT
	 409
	  	MOLDOVA	  	RED & WHITE
	 410
	  	MONGOLIA	  	CONGRESS
	 411
	  	MONGOLIA	  	L&M
	 412
	  	MONGOLIA	  	MARLBORO
	 413
	  	MONGOLIA	  	PARLIAMENT
	 414
	  	MONTENEGRO	  	BEST
	 415
	  	MONTENEGRO	  	CLASSIC
	 416      
	  	MONTENEGRO	  	DRINA

  

 APPENDIX I 
  
  

					
		  	              A	  	            B
	 1
	  	Country (Market)	  	Brand
	 417
	  	MONTENEGRO	  	MARLBORO
	 418
	  	MOROCCO	  	MARLBORO
	 419
	  	NAURU	  	ALPINE
	 420
	  	NEPAL	  	MARLBORO
	 421
	  	NETHERLANDS	  	CHESTERFIELD
	 422
	  	NETHERLANDS	  	L&M
	 423
	  	NETHERLANDS	  	MARLBORO
	 424
	  	NETHERLANDS	  	PHILIP MORRIS
	 425
	  	NETHERLANDS	  	RUNNER
	 426
	  	NEW CALEDONIA	  	LONGBEACH
	 427
	  	NEW CALEDONIA	  	MARLBORO
	 428
	  	NEW ZEALAND	  	LONGBEACH
	 429
	  	NEW ZEALAND	  	MARLBORO
	 430
	  	NICARAGUA	  	LlDER
	 431
	  	NICARAGUA	  	MARLBORO
	 432
	  	NIGER	  	BOND STREET
	 433
	  	NIGER	  	VISA
	 434
	  	NIGERIA	  	BOND STREET
	 435
	  	NIGERIA	  	MARLBORO
	 436
	  	NORFOLK ISLANDS	  	LONGBEACH
	 437
	  	NORWAY	  	L&M
	 438
	  	NORWAY	  	MARLBORO
	 439
	  	OKINAWA	  	LARK
	 440
	  	OKINAWA	  	NEXT
	 441
	  	OKINAWA	  	PARLIAMENT
	 442
	  	OKINAWA	  	PHILIP MORRIS
	 443
	  	OKINAWA	  	VIRGINIA SLIMS
	 444
	  	OMAN	  	L&M
	 445
	  	OMAN	  	MARLBORO
	 446
	  	OMAN	  	MERIT
	 447
	  	OMAN	  	RED & WHITE
	 448
	  	PALESTINE	  	L&M
	 449
	  	PALESTINE	  	MARLBORO
	 450
	  	PALESTINE	  	PARLIAMENT
	 451
	  	PANAMA	  	L&M
	 452
	  	PANAMA	  	MARLBORO
	 453
	  	PANAMA	  	MENTOLADOS
	 454
	  	PARAGUAY	  	BENSON & HEDGES
	 455
	  	PARAGUAY	  	CHESTERFIELD
	 456
	  	PARAGUAY	  	MARLBORO
	 457
	  	PARAGUAY	  	PHILIP MORRIS
	 458
	  	PERU	  	MARLBORO
	 459
	  	PHILIPPINES	  	BOWLING GOLD
	 460      
	  	PHILIPPINES	  	L&M

 APPENDIX I 
  

					
		 	              A	 	              B
	 1
	 	Country (Market)	 	Brand
	 461
	 	PHILIPPINES	 	MARLBORO
	 462
	 	PHILIPPINES	 	MILLER
	 463
	 	PHILIPPINES	 	PHILIP MORRIS
	 464
	 	PHILIPPINES	 	STORK
	 465
	 	POLAND	 	BOND STREET
	 466
	 	POLAND	 	CARMEN
	 467
	 	POLAND	 	CARD
	 468
	 	POLAND	 	CHESTERFIELD
	 469
	 	POLAND	 	FAJRANT
	 470
	 	POLAND	 	KLUBOWE
	 471
	 	POLAND	 	L&M
	 472
	 	POLAND	 	MARLBORO
	 473
	 	POLAND	 	PARLIAMENT
	 474
	 	POLAND	 	VIRGINIA SLIMS
	 475
	 	POLAND	 	ZEFlR
	 476
	 	PORTUGAL	 	CHESTERFIELD
	 477
	 	PORTUGAL	 	DETROIT
	 478
	 	PORTUGAL	 	KENTUCKY
	 479
	 	PORTUGAL	 	L&M
	 480
	 	PORTUGAL	 	MARLBORO
	 481
	 	PORTUGAL	 	PORTUGUES
	 482
	 	PORTUGAL	 	RITZ
	 483
	 	PORTUGAL	 	SG
	 484
	 	POP. REP. OF CHINA	 	MARLBORO
	 485
	 	QATAR	 	L&M
	 486
	 	QATAR	 	MARLBORO
	 487
	 	QATAR	 	MERIT
	 488
	 	REUNION	 	BASIC
	 489
	 	REUNION	 	BOND STREET
	 490
	 	REUNION	 	CHESTERFIELD
	 491
	 	REUNION	 	MARLBORO
	 492
	 	REUNION	 	PHILIP MORRIS
	 493
	 	ROMANIA	 	ASSOS
	 494
	 	ROMANIA	 	BOND STREET
	 495
	 	ROMANIA	 	CHESTERFIELD
	 496
	 	ROMANIA	 	L&M
	 497
	 	ROMANIA	 	MARLBORO
	 498
	 	ROMANIA	 	PARLIAMENT
	 499
	 	ROMANIA	 	PRESIDENT
	 500
	 	ROMANIA	 	RED & WHITE
	 501
	 	ROMANIA	 	ZET
	 502
	 	RUSSIA	 	APOLLO SOYUZ
	 503
	 	RUSSIA	 	BOND STREET
	 504
	 	RUSSIA	 	CHESTERFIELD
	 505
	 	RUSSIA	 	L&M
	 506
	 	RUSSIA	 	MARLBORO
	 507
	 	RUSSIA	 	MURATTI
	 508
	 	RUSSIA	 	NEXT
	 509
	 	RUSSIA	 	OPTIMA
	 510
	 	RUSSIA	 	PARLIAMENT
	 511
	 	RUSSIA	 	VIRGINIA SLIMS

 APPENDIX I 

					
		 	              A	 	              B
	 1
	 	Country (Market)	 	Brand
	 512
	 	SAN MARINO	 	DIANA
	 513
	 	SAN MARINO	 	MARLBORO
	 514
	 	SAN MARINO	 	MERIT
	 515
	 	SAN MARINO	 	PHILIP MORRIS
	 516
	 	SAUDI ARABIA	 	L&M
	 517
	 	SAUDI ARABIA	 	MARLBORO
	 518
	 	SAUDI ARABIA	 	MERIT
	 519
	 	SAUDI ARABIA	 	PHILIP MORRIS
	 520
	 	SAUDI ARABIA	 	RED & WHITE
	 521
	 	SAUDI ARABIA	 	VISA
	 522
	 	SENEGAL	 	MARLBORO
	 523
	 	SERBIA & MONTENEGRO	 	ASSOS
	 524
	 	SERBIA & MONTENEGRO	 	BEST
	 525
	 	SERBIA & MONTENEGRO	 	CLASSIC
	 526
	 	SERBIA & MONTENEGRO	 	DRINA
	 527
	 	SERBIA & MONTENEGRO	 	EVE
	 528
	 	SERBIA & MONTENEGRO	 	L&M
	 529
	 	SERBIA & MONTENEGRO	 	MARLBORO
	 530
	 	SERBIA & MONTENEGRO	 	MOND
	 531
	 	SERBIA & MONTENEGRO	 	MORAVA
	 532
	 	SERBIA & MONTENEGRO	 	VEK
	 533
	 	SIERRA LEONE	 	BOND STREET
	 534
	 	SIERRA LEONE	 	COSMOS
	 535
	 	SIERRA LEONE	 	MARLBORO
	 536
	 	SINGAPORE	 	L&M
	 537
	 	SINGAPORE	 	MARLBORO
	 538
	 	SINGAPORE	 	RAFFLES
	 539
	 	SINGAPORE	 	VIRGINIA SLIMS
	 540
	 	SLOVAK REPUBLIC	 	BOND STREET
	 541
	 	SLOVAK REPUBLIC	 	CHESTERFIELD
	 542
	 	SLOVAK REPUBLIC	 	L&M
	 543
	 	SLOVAK REPUBLIC	 	MARLBORO
	 544
	 	SLOVAK REPUBLIC	 	PETRA
	 545
	 	SLOVAK REPUBLIC	 	RED & WHITE
	 546
	 	SLOVAK REPUBLIC	 	SPARTA
	 547
	 	SLOVAK REPUBLIC	 	START
	 548
	 	SLOVENIA	 	CHESTERFIELD
	 549
	 	SLOVENIA	 	DIANA
	 550
	 	SLOVENIA	 	EVE
	 551
	 	SLOVENIA	 	L&M
	 552
	 	SLOVENIA	 	MARLBORO
	 553
	 	SLOVENIA	 	MERIT
	 554
	 	SLOVENIA	 	MULTIFILTER
	 555
	 	SLOVENIA	 	MURATTI
	 556
	 	SLOVENIA	 	PHILIP MORRIS
	 567
	 	SOUTH AFRICA	 	CHESTERFIELD
	 558
	 	SOUTH AFRICA	 	MARLBORO
	 559
	 	SPAIN	 	CHESTERFIELD
	 560
	 	SPAIN	 	L&M
	 561
	 	SPAIN	 	LARK
	 562
	 	SPAIN	 	MARLBORO

 APPENDIX I 
  

					
		  	              A	  	            B
	 1
	  	Country (Market)	  	Brand
	 563
	  	SPAIN	  	MERIT
	 564
	  	SPAIN	  	PHILIP MORRIS
	 565
	  	SURINAME	  	MARLBORO
	 566
	  	SWEDEN	  	BASIC
	 567
	  	SWEDEN	  	BOND
	 568
	  	SWEDEN	  	L&M
	 569
	  	SWEDEN	  	MARLBORO
	 570
	  	SWITZERLAND	  	ARLETIE
	 571
	  	SWITZERLAND	  	BRUNETTE
	 572
	  	SWITZERLAND	  	CHESTERFIELD
	 573
	  	SWITZERLAND	  	FLINT
	 574
	  	SWITZERLAND	  	L&M
	 575
	  	SWITZERLAND	  	MARLBORO
	 576
	  	SWITZERLAND	  	MERIT
	 577
	  	SWITZERLAND	  	MURATTI
	 578
	  	SWITZERLAND	  	MULTIFILTER
	 579
	  	SWITZERLAND	  	NORTH POLE
	 580
	  	SWITZERLAND	  	PHILIP MORRIS
	 681
	  	SYRIA	  	MARLBORO
	 582
	  	TAIWAN	  	L&M
	 583
	  	TAIWAN	  	LARK
	 584
	  	TAIWAN	  	MARLBORO
	 585
	  	TAIWAN	  	PARLIAMENT
	 586
	  	TAIWAN	  	SARATOGA
	 587
	  	TAIWAN	  	VIRGINIA SLIMS
	 588
	  	THAILAND	  	L&M
	 589
	  	THAILAND	  	MARLBORO
	 590
	  	TOGO	  	BOND STREET
	 591
	  	TOGO	  	MARLBORO
	 592
	  	TOGO	  	VISA
	 593
	  	TRINIDAD & TOBAGO	  	MARLBORO
	 594
	  	TUNISIA	  	MARLBORO
	 595
	  	TUNISIA	  	MERIT
	 596
	  	TURKEY	  	CHESTERFIELD
	 597
	  	TURKEY	  	L&M
	 598
	  	TURKEY	  	LARK
	 599
	  	TURKEY	  	MARLBORO
	 600
	  	TURKEY	  	MURATTI
	 601
	  	TURKEY	  	PARLIAMENT
	 602
	  	TURKEY	  	TURKU
	 603
	  	TURKMENISTAN	  	CONGRESS
	 604
	  	TURKMENISTAN	  	L&M
	 605
	  	TURKMENISTAN	  	MARLBORO
	 606
	  	TURKMENISTAN	  	PARLIAMENT
	 607
	  	UKRAINE	  	ASTRA
	 608
	  	UKRAINE	  	BOND STREET
	 609
	  	UKRAINE	  	CHESTERFIELD
	 610
	  	UKRAINE	  	KOSMOS
	 611
	  	UKRAINE	  	L&M
	 612
	  	UKRAINE	  	MARLBORO
	 613      
	  	UKRAINE	  	NEXT

 APPENDIX I 
  

					
		  	              A	  	            B
	 1
	  	Country (Market)	  	Brand
	 614
	  	UKRAINE	  	OPTIMA
	 615
	  	UKRAINE	  	PARLIAMENT
	 616
	  	UKRAINE	  	VATRA
	 617
	  	UKRAINE	  	VIRGINIA SLIMS
	 618
	  	UNITED ARAB EMIRATES	  	L&M
	 619
	  	UNITED ARAB EMIRATES	  	MARLBORO
	 620
	  	UNITED ARAB EMIRATES	  	MERIT
	 621
	  	UNITED ARAB EMIRATES	  	PHILIP MORRIS
	 622
	  	UNITED ARAB EMIRATES	  	RED & WHITE
	 623
	  	UNITED KINGDOM	  	MARLBORO
	 624
	  	UNITED KINGDOM	  	RAFFLES
	 625
	  	URUGUAY	  	CASINO
	 626
	  	URUGUAY	  	FIESTA
	 627
	  	URUGUAY	  	GALAXY
	 628
	  	URUGUAY	  	MARLBORO
	 629
	  	URUGUAY	  	MASTER
	 630
	  	URUGUAY	  	PHILIP MORRIS
	 631
	  	URUGUAY	  	PREMIER
	 632
	  	VANUATU	  	PETER JACKSON
	 633
	  	VENEZUELA	  	ASTOR
	 634
	  	VENEZUELA	  	BOND STREET
	 635
	  	VENEZUELA	  	FORTUNA
	 636
	  	VENEZUELA	  	LIDO
	 637
	  	VENEZUELA	  	MARLBORO
	 638
	  	VIETNAM	  	MARLBORO
	 639
	  	WWDF	  	ASSOS
	 640
	  	WWDF	  	BELMONT
	 641
	  	WWDF	  	BENSON & HEDGES
	 642
	  	WWDF	  	BOND STREET
	 643
	  	WWDF	  	BRUNETTE
	 644
	  	WWDF	  	CHESTERFIELD
	 645
	  	WWDF	  	CLASSIC PAPASTRATOS
	 646
	  	WWDF	  	DIANA
	 647
	  	WWDF	  	EVE
	 648
	  	WWDF	  	F 6
	 649
	  	WWDF	  	L&M
	 650
	  	WWDF	  	LARK
	 651
	  	WWDF	  	MARLBORO
	 652
	  	WWDF	  	MERIT
	 653
	  	WWDF	  	MULTIFILTER
	 654
	  	WWDF	  	MURATTI
	 655
	  	WWDF	  	OLD NAVY
	 656
	  	WWDF	  	PAPASTRATOS
	 657
	  	WWDF	  	PARLIAMENT
	 658
	  	WWDF	  	PHILIP MORRIS
	 659
	  	WWDF	  	PRESIDENT
	 660
	  	WWDF	  	SG
	 661
	  	WWDF	  	VIRGINIA SLIMS
	 662      
	  	YEMEN	  	MARLBORO

  

 APPENDIX J - LIST OF ARBITRATORS 
  

	1.	Walter van Gerven 

 Cermarsinstraat 42 
 B-3012 Wilsele 
 Belgium 
  

	2.	Hans Van Houtte 

 Institute for International Trade Law

 Faculty of Law 
 B-3000 Leuven

 Belgium 

 APPENDIX K 
 Amending the Baseline Amount 
 The Parties established the Baseline Amount as a reasonable
estimate of the annual quantity of seizures of Contraband Philip Morris Cigarettes they might expect in the Territory of the Member States as of January 1, 2004. The Parties recognize, however, that as New Member States join the European Union,
as Non-Participating Member States wish to become Participating Member States, and as circumstances change with respect to the movement and pricing of Cigarettes in the Member States, the Baseline Amount may require adjustment so that it continues
to comport with the reasonable expectations of the Parties. In determining whether to adjust the Baseline Amount, and if so, by what amount, the following shall be considered: 
  

	1)	The size of the Philip Morris Cigarette market(s) in the New Member States whose seizures of Contraband Philip Morris Cigarettes are likely to result in Supplemental Payments in the
following calendar year but whose incidence of Contraband Philip Morris Cigarettes is not already factored into the Baseline Amount, as well as the incidence of Contraband Philip Morris Cigarettes in such New Member States. In determining the size
of the market for Philip Morris Cigarettes and the incidence of Contraband Philip Morris Cigarettes in the New Member States, the Parties shall take account of and rely on: 

  

	 	a)	Historical seizure data; 

  

	 	b)	Available studies and reports of the industry; 

  

	 	c)	Philip Morris International data and reports; 

  

	 	d)	Reliable published information; 

  

	 	e)	Joint studies, if any, conducted by the European Community and Philip Morris International concerning contraband and counterfeit volumes, contraband and counterfeit flows, cigarette
sales, cigarette seizures, or other matters reasonably relevant to this Agreement; 

  

	 	f)	Reports generated by independent third-party companies retained by Philip Morris International, in accordance with methodology agreed to by the Parties, whose business involves in
whole or in part the monitoring of Cigarette sales and distribution; and 

  

	 	g)	Available data published by the European Community and the Member States; 

  

	2)	The incidence of Contraband Cigarettes and Counterfeit Cigarettes in the New Member State(s) and the incidence of Contraband and Counterfeit Cigarettes manufactured by entities
other than Philip Morris International, as measured by one or more independent companies retained by Philip Morris International; and 

  

	3)	The situation concerning the maintenance and protection of the European Community’s Customs border as published in official reports and other reliable sources.

 Amending Supplemental Payment Obligations 
 The Supplemental Payment regime set forth in Article 4 of the Agreement reinforces Philip Morris International’s commitment to take commercially
reasonable steps as a manufacturer of Cigarettes to promote the Parties’ joint objective that Philip Morris Cigarettes be sold, distributed, stored, and shipped in accordance with all applicable fiscal and legal requirements, and, in
particular, sold at retail in accordance with all applicable tax and duty laws in the intended retail market, and in quantities consistent with legitimate Retail Demand in such intended market. The Parties recognize that there are factors within the
control and factors outside the control of Philip Morris International and that the Supplemental Payment regime was designed with reference to a reasonable estimate of the annual quantity of seizures of Contraband Philip Morris Cigarettes they might
expect in the Territory of the Member States as of January 1, 2004, in light of the substantial efforts of the Parties in their ongoing fight against the illegal trade in Cigarettes. 
 The Parties also recognize, however, that as New Member States join the European Union, as Non-Participating Member States wish to become Participating
Member States, and as circumstances change with respect to the movement and pricing of Cigarettes in the Member States, problems could arise that might bring about serious imbalances in the application of the obligations of Philip Morris
International under Article 4 of the Agreement, requiring their possible amendment so that they continue to comport with the reasonable expectations of the Parties that the provisions of Article 4 will serve as an incentive for Philip Morris
International to address factors within its control and to comply with its obligations under this Agreement, but not as a mechanism to increase Philip Morris International’s obligations by virtue of factors outside the control of Philip Morris
International. 
 In determining whether to amend the provisions of, and the obligations of Philip Morris International under, Article 4, the
Parties shall consider whether there has been a significant increase in the incidence of Contraband Philip Morris Cigarettes in any Member State whose seizures of Contraband Philip Morris Cigarettes are likely to result in Supplemental Payments in
the following calendar year. If there has been a significant increase in such incidence substantially caused by external factors, as evidenced by the fact that a substantial portion of the seizures of Philip Morris Contraband Cigarettes are
Cigarettes for which applicable taxes on the retail price have been paid in a non-Member State, the Parties shall either amend, or provide Philip Morris International with appropriate relief from the obligations under Article 4. However, amendment
of, or relief from, Supplemental Payment obligations is only appropriate where (i) the significant increase in the incidence of Contraband Philip Morris Cigarettes in that Member State is not substantially attributable to a failure on the part
of Philip Morris International to adhere to the terms of this Agreement, and (ii) Philip Morris International can reasonably demonstrate that its sales to a pertinent Intended Market of Retail Sale are consistent with reasonable estimates of
legitimate Retail Demand in such Intended Market of Retail Sale, and such market seems to account for a meaningful proportion of the increase in such incidence as described above. 
  

 2

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