Document:

Form of Philip Morris International Inc. Option Award Agreement

 Exhibit 10.13 
 FORM OF 
 PHILIP MORRIS INTERNATIONAL INC. 
 2008 PERFORMANCE INCENTIVE PLAN 
 NON-QUALIFIED STOCK OPTION AWARD AGREEMENT 
 FOR PHILIP MORRIS INTERNATIONAL INC. COMMON STOCK 
 (March 28, 2008) 
 PHILIP MORRIS
INTERNATIONAL INC. (the “Company”), pursuant to the 2008 Performance Incentive Plan (the “Plan”) hereby grants to the employee (the “Optionee”) a non-qualified stock option (the “Option”) effective immediately
following the March 28, 2008 distribution of Company Common Stock to Altria Group, Inc. shareholders. The Option entitles the Optionee to purchase from the Company up to the aggregate number of shares (the “Option Shares”) of Company
Common Stock shown in the March 28, 2008 Option Award section of the Statement of Grants and Awards (the “Statement”) mailed to the Optionee shortly after March 28, 2008, at the Grant Price per share set forth in the Statement.
This grant is subject to the following terms and conditions: 
 1. The Option is fully vested upon grant. 
 2. During the period ending on the Expiration Date shown on the Statement, this Option may be exercised in whole or in part with respect to such Option
Shares, subject to the following provisions. In the event that the Optionee’s employment with the PMI Group or, in the case of an Applicable Altria Optionee or Applicable Kraft Optionee, the Altria Group or the Kraft Group, as relevant, is
terminated by reason of death, such Option Shares may be purchased for a period of three years from the date of death. If employment with the PMI Group or, in the case of an Applicable Altria Optionee or Applicable Kraft Optionee, the Altria Group
or Kraft Group, as relevant, is terminated by the Optionee (other than by Disability or Retirement), such Option Shares may be purchased for a period of 30 days from the date of termination. 
 If, other than by Disability or Retirement, the Optionee’s employment with the PMI Group or, in the case of an Applicable Altria Optionee or
Applicable Kraft Optionee, the Altria Group or the Kraft Group, as relevant, is terminated by the employer without cause, such Option Shares may be purchased for a period of 12 months following such termination; provided, however, if the Optionee
shall die within such 12-month period, such Option Shares may be purchased for a period of 12 months from the date of death of the Optionee. If the Optionee’s employment with the PMI Group or, in the case of an Applicable Altria Optionee or
Applicable Kraft Optionee, the Altria Group or the Kraft Group, as relevant, is involuntarily suspended or terminated for cause, no Option Shares may be purchased during the period of suspension, or following such termination of employment. However,
no provision of this paragraph 2 shall permit the purchase of any Option Shares after the Expiration Date. 
 For purposes of this Agreement,
the Optionee’s employment shall be deemed to be terminated (i) when he or she is no longer actively employed by the PMI Group or, in the case of an Applicable Altria Optionee or Applicable Kraft Optionee, the Altria Group or the Kraft
Group, as relevant, and (ii) when he or she is no longer actively employed by a corporation, or a parent or subsidiary thereof, substituting a new option for this Option (or assuming this Option) in connection with a merger, consolidation,
acquisition of property or stock, separation, split-up, 

 
reorganization or liquidation. The Optionee shall not be considered actively employed during any period for which he or she is receiving, or is eligible to
receive, salary continuation or other benefits under (i) the Company Severance Pay Plan (or a similar plan maintained by the PMI Group), (ii) in the case of an Applicable Altria Optionee, the Altria Group, Inc. Severance Pay Plan (or a
similar plan maintained by the Altria Group), or (iii) in the case of an Applicable Kraft Optionee, the Kraft Foods Inc. Severance Pay Plan (or a similar plan maintained by the Kraft Group), except in any case in which the Optionee is eligible
for Retirement upon the expiration of such salary continuation or other benefits. Leaves of absence shall not constitute a termination of employment. 
 Notwithstanding the foregoing provision and unless otherwise determined by the Company, this Option may only be exercised on a day that the New York Stock Exchange (the “Exchange”) is open. Accordingly, if
the Expiration Date is a day the Exchange is closed, the Expiration Date shall be the immediately preceding day on which the Exchange is open. 
 3. This Option may be exercised only in accordance with the procedures and limitations established by the Company (the “Methods of Exercise”). The Company shall not be required to deliver the Option Shares being purchased upon any
exercise of this Option unless it has received payment in a form acceptable to the Company for all applicable withholding taxes (including, without limitation, income, social security and Medicare taxes, as well as amounts due the Company as
“theoretical taxes” pursuant to the then-current international assignment and tax equalization policies and procedures of the PMI Group) or arrangements satisfactory to the Company for the payment thereof have been made. Unless otherwise
determined by the Committee, withholding amounts may be paid with outstanding shares of the Company’s Common Stock, such shares to be valued at Fair Market Value on the exercise date. The Company is authorized to satisfy all applicable
withholding tax requirements arising from the exercise of vested Options, by (i) deducting the number of shares of Common Stock having an aggregate value equal to the amount of withholding taxes due from the total number of Option Shares
delivered to the Optionee; (ii) deducting the required amounts from any proceeds realized by the Optionee upon the sale of any Option Shares in connection with the exercise of an Option; or (iii) through any other method established by the
Company. Shares deducted from the Option Shares to be delivered to the Optionee in satisfaction of withholding requirements shall be valued at the Fair Market Value of the shares on the exercise date. 
 4. The Committee may elect to cash out all or a portion of the Option Shares to be purchased pursuant any Method of Exercise by paying the Optionee an
amount in cash or Common Stock, or both, equal to the fair market value of such shares on the exercise date less the purchase price for such shares. 
 5. Unless otherwise required by law, this Option is not transferable by the Optionee other than by will or the laws of descent and distribution and is exercisable during the Optionee’s lifetime only by the
Optionee or by the guardian or legal representative of the Optionee. 
 6. In the event of any merger, share exchange, reorganization,
consolidation, recapitalization, reclassification, distribution, stock dividend, stock split, reverse stock split, split-up, spin-off, issuance of rights or warrants or other similar transaction or event affecting the Common Stock after the date of
this Award, the Board of Directors of the Company is 

 
authorized, to the extent it deems appropriate, to make adjustments to the number and kind of shares of stock subject to this Award, including the
substitution of equity interests in other entities involved in such transactions, to provide for cash payments in lieu of the Option, and to determine whether continued employment with any entity resulting from such a transaction will or will not be
treated as continued employment with the PMI Group, in each case subject to any Board or Committee action specifically addressing any such adjustments, cash payments, or continued employment treatment. 
 7. Whenever the word “Optionee” is used herein under circumstances such that the provision should logically be construed to apply to the
executors, the administrators, or the person or persons to whom this Option may be transferred pursuant to this Agreement, it shall be deemed to include such person or persons. 
 8. This Agreement shall be governed by the laws of the Commonwealth of Virginia, U.S.A., without regard to choice of laws principles thereof. 

9. Nothing contained in the Plan shall give any employee the right to be retained in the employment of the PMI Group, the Altria Group or the Kraft
Group or affect the right of any such employer to terminate any employee. The adoption and maintenance of the Plan shall not constitute an inducement to, or condition of, the employment of any employee. The Plan is a discretionary plan, and
participation by any employee is purely voluntary. Participation in the Plan with respect to any option grant shall not entitle any employee to participate with respect to any other option grant. Any payment or benefit paid to an employee with
respect to an option granted under the Plan shall not be considered to be part of the employee’s “salary,” and thus, shall not be taken into account for purposes of determining the employee’s termination indemnity, severance pay,
retirement or pension payment, or any other employee benefits, except to the extent required under applicable law or as specifically provided for in the Plan. 
 10. The terms and provisions of the Plan (a copy of which will be furnished to the Optionee upon written request to the Office of the Secretary, Philip Morris International Inc., 120 Park Avenue, New York, New York
10017) are incorporated herein by reference. To the extent any provision of this Agreement is inconsistent or in conflict with any term or provision of the Plan, the Plan shall govern. Capitalized terms not otherwise defined herein have the meaning
set forth in the Plan. For the purposes of this Agreement, the term “Disability” means permanent and total disability as determined under procedures established by (i) the Company, (ii) in the case of an Applicable Altria
Optionee, Altria Group, Inc., or (iii) in the case of an Applicable Kraft Optionee, Kraft Foods Inc. The term “Retirement” means (i) retirement from active employment under a pension plan of the PMI Group or under an employment
contract with any member of the PMI Group, (ii) in the case of an Applicable Altria Optionee, retirement from active employment under a pension plan of the Altria Group or under an employment contract with any member of the Altria Group,
(iii) in the case of an Applicable Kraft Optionee, retirement from active employment under a pension plan of the Kraft Group or under an employment contract with any member of the Kraft Group, or (iv) termination of employment at or after
age 55 under circumstances which the Committee deems equivalent to retirement. An “Applicable Altria Optionee” means an Optionee employed by the Altria Group on March 28, 2008 or who transfers from the PMI Group to the Altria Group
during the period from March 28, 2008 to December 31, 2008. An “Applicable Kraft Optionee” means an Optionee employed by 

 
the Kraft Group on March 30, 2007 or who transfers from the Altria Group or the PMI Group to the Kraft Group during the period from March 30, 2007
to September 30, 2007. “PMI Group” means the Company and each of its subsidiaries and affiliates. “Altria Group” means Altria Group, Inc. and each of its subsidiaries and affiliates. “Kraft Group” means Kraft Foods
Inc. and each of its subsidiaries and affiliates. A “subsidiary” includes only any company in which the applicable entity, directly or indirectly, has a beneficial ownership interest of greater than 50 percent and an “affiliate”
includes only any company that (a) has a beneficial ownership interest, directly or indirectly, in the applicable entity of greater than 50 percent or (b) is under common control with the applicable entity through a parent company that,
directly or indirectly, has a beneficial ownership interest of greater than 50 percent in both the applicable entity and the affiliate. 
 IN
WITNESS WHEREOF, this Non-Qualified Stock Option Award Agreement has been duly executed as of March 28, 2008. 
  

			
	Philip Morris International Inc.
		
	By:	 	  

		 	G. Penn Holsenbeck
		 	Vice President, Associate General Counsel & Corporate Secretary
		 	Philip Morris International Inc.Pension Fund of Philip Morris in Switzerland (IC)

 Exhibit 10.14 
 Pension Fund of 
 Philip Morris in Switzerland 
 Regulations 
 IC Pension Plan 

  
 January 2006 

			
	 Caisse de pensions Philip Morris en Suisse
	 	
	 Regulations - IC Pension Plan
	 	 page I

  
  
 Table of contents 
  

							
	 Introduction
	 	   1

			
	 1.
	  	 Membership in the IC Plan
	 	   1

				
		  		 	 Article 1 - General Principle
	 	   1

				
		  		 	 Art. 2 - Start of Membership
	 	   1

				
		  		 	 Art. 3 - Termination of Membership
	 	   1

			
	 2.
	  	 Definitions
	 	   2

				
		  		 	 Art. 4 - Normal retirement
	 	   2

				
		  		 	 Art. 5 - Contributory salary
	 	   2

				
		  		 	 Art. 6 - Retirement savings capital
	 	   2

				
		  		 	 Art. 7 - Retirement credits
	 	   3

				
		  		 	 Art. 8 - Voluntary contributions
	 	   3

				
		  		 	 Art. 9 - Loss of benefits
	 	   4

				
		  		 	 Art. 10 - Interest
	 	   4

			
	 3.
	  	 IC Pension Plan benefits
	 	   4

			
		  	 General Principles
	 	   4

				
		  		 	 Art. 11 - Insured benefits
	 	   4

				
		  		 	 Art. 12 - Payment
	 	   5

				
		  		 	 Art. 13 - Rights in Case of Third Party Liability
	 	   5

				
		  		 	 Art. 14 - Contributory negligence
	 	   5

				
		  		 	 Art. 15 - Assignment, Pledge and Compensation
	 	   5

				
		  		 	 Art. 16 - Statute of limitations
	 	   6

			
		  	 Retirement Pension or Lump-sum Retirement Capital
	 	   6

				
		  		 	 Art. 17 - Entitlement
	 	   6

				
		  		 	 Art. 18 - Amount
	 	   6

				
		  		 	 Art. 19 - Deferral
	 	   7

			
		  	 Lump-sum disability benefit
	 	   7

				
		  		 	 Art. 20 - Recognition of Disability
	 	   7

			
	 Caisse de pensions Philip Morris en Suisse
	 	
	 Regulations - IC Pension Plan
	 	 page II

  
  

							
		  		  	 Art. 21 - Entitlement and amount
	 	   7

		
	 Lump-sum death benefit
	 	   8

				
		  		  	 Art. 22 - Entitlement and amount
	 	   8

				
		  		  	 Art. 23 - Beneficiaries
	 	   8

		
	 Benefits in Case of Divorce
	 	   8

				
		  		  	 Art. 24 - Transfer of Termination Benefit in Case of Divorce
	 	   8

		
	 Vested Termination Benefit
	 	   9

				
		  		  	 Art. 25 - Termination of employment
	 	   9

				
		  		  	 Art. 26 - Amount of the Vested Termination Benefit
	 	   9

				
		  		  	 Art. 27 - Minimum Amount of Vested Termination Benefit
	 	   9

				
		  		  	 Art. 28 - Transfer of the Vested Termination Benefit
	 	 10

				
		  		  	 Art. 29 - Cash Payment
	 	 10

				
		  		  	 Art. 30 - End of insurance
	 	 10

		
	 Maintenance of Insurance Coverage
	 	 11

				
		  		  	 Art. 31 - Maintenance of Insurance as an External Member
	 	 11

		
	 Encouragement of Home Ownership
	 	 11

				
		  		  	 Art. 32 - General Provisions
	 	 11

				
		  		  	 Art. 33 - Definition of a Residence for the Member’s Own Use
	 	 12

				
		  		  	 Art. 34 - Forms of Encouragement
	 	 12

				
		  		  	 Art. 35 - Proof
	 	 13

				
		  		  	 Art. 36 - Withdrawal - Entitlement
	 	 13

				
		  		  	 Art. 37 - Amount
	 	 13

				
		  		  	 Art. 38 - Consequences
	 	 14

				
		  		  	 Art. 39 - Implementation
	 	 14

				
		  		  	 Art. 40 - Repayment
	 	 15

				
		  		  	 Art. 41 - Sale of the Residential Property
	 	 15

				
		  		  	 Art. 42 - Pledge - Principle
	 	 16

				
		  		  	 Art. 43 - Consequences of Enforcing a Lien
	 	 16

				
		  		  	 Art. 44 - Consent of the Mortgagee
	 	 17

			
	 Caisse de pensions Philip Morris en Suisse
	 	
	 Regulations - IC Pension Plan
	 	 page III

  
  

							
		  		  	 Art. 45 - Tax Provisions on the Encouragement of Home Ownership
	 	 17

			
	 4.
	  	 IC Pension Plan Resources
	 	 18

				
		  		  	 Art. 46 - General Resources
	 	 18

				
		  		  	 Art. 47 - Member’s Contributions
	 	 18

				
		  		  	 Art. 48 - Employer’s contribution
	 	 18

				
		  		  	 Art. 49 - Remedial measures
	 	 19

				
		  		  	 Art. 50 - Assets
	 	 19

			
	 5.
	  	 Administration
	 	 19

				
		  		  	 Art. 51 - Pension Board
	 	 19

				
		  		  	 Art. 52 - Term of Office
	 	 20

				
		  		  	 Art. 53 - Duties, Powers, Convening, Resolutions
	 	 20

				
		  		  	 Art. 54 - Meetings and Resolutions
	 	 20

				
		  		  	 Art. 55 - Auditors
	 	 20

				
		  		  	 Art. 56 - Accredited Pension Actuary
	 	 21

				
		  		  	 Art. 57 - Liability, Confidentiality
	 	 21

				
		  		  	 Art. 58 - Information
	 	 21

			
	 6.
	  	 Transitional Provisions
	 	 22

				
		  		  	 Art. 59 - Voluntary Contributions on the Entry into Effect of the IC Plan
	 	 22

				
		  		  	 Art. 60 - Early retirement age
	 	 22

				
		  		  	 Art. 61 - Disability Benefits
	 	 22

			
	 7.
	  	 Final Provisions
	 	 22

				
		  		  	 Art. 62 - Amendment of the Regulations
	 	 22

				
		  		  	 Art. 63 - Interpretation
	 	 22

				
		  		  	 Art. 64 - Disputes
	 	 23

				
		  		  	 Art. 65 - Translations
	 	 23

				
		  		  	 Art. 66 - Supplementary Regulations
	 	 23

				
		  		  	 Art. 67 - Effective Date
	 	 23

			
	 Caisse de pensions Philip Morris en Suisse
	  	
	 Règlement IC Pension Plan
	  	page 1

  
  
 Introduction 
 The objective of the
Pension Fund of Philip Morris in Switzerland (hereafter “the Pension Fund”) is to protect the employees of the Philip Morris Group in Switzerland and companies which, in accordance with the Statutes, can be affiliated with the Fund
(hereafter: “the Employer” or, collectively, “the Employers”) against the economic consequences of retirement, disability and death. 
 In compliance with Article 5 of the Statutes governing the Pension Fund of Philip Morris in Switzerland, the Pension Board issues the regulations for this Plan supplementing the pension measures covered by the Main
Plan (hereafter: “the IC Pension Plan”). 
 The IC Pension Plan is a “defined contributions plan” within the meaning of
Article 15 of the Federal Law on Vesting in Pension Plans of 17 December 1993 (hereafter: “LFLP/FZG”). 
 The benefits
contemplated in these Regulations supplement the benefits under the Plan Rules of the Pension Plan of Philip Morris in Switzerland (hereafter, “the Main Plan”), which is a “defined benefits plan” within the meaning of Article 16
LFLP/FZG. The benefits of the Supplemental Plan are paid out together with those of the Main Plan. 
 In these Regulations, words importing
the masculine gender refer equally to men and women. 
 From 1 January 2007, persons bound by a registered civil partnership, within the
meaning of the Federal Law on Registered Civil Partnerships Between Persons of the Same Sex, are treated in the same way as married persons (spouses) as defined in these Regulations. The registration of a civil partnership at a registry office is
treated in the same way as a marriage and the dissolution of a civil partnership by a court is treated in the same way as a divorce. 
  

	 1.
	 Membership in the IC Plan 

 Article 1 - General Principle 
  

	 1.
	 Membership in the IC Plan is compulsory for all grade I employees or higher (banded) who are members of the Pension Fund’s Main Plan.

 Art. 2 - Start of Membership 
  

	 1.
	 Membership in the IC Plan commences on the first day of the month in which a bonus is paid. As a result, the employee acquires the status of insured member.

 Art. 3 - Termination of Membership 
  

	 1.
	 Membership in the IC Pension Plan ceases at the date of termination of employment 

			
	 Caisse de pensions Philip Morris en Suisse
	  	
	 Règlement IC Pension Plan
	  	page 2

  
  

	 2.
	 Termination of membership in the IC Plan entails the loss member status, subject, however, to Article 30 (end of insurance) and Article 31 (maintenance of
insurance cover as external member) and to the Pension Fund’s obligation to provide the individual concerned with all necessary information. 

  

	 2.
	 Definitions 

 Art. 4 -
Normal retirement 
  

	 1.
	 Normal retirement begins on the first day of the month following a member’s 65th birthday, irrespective of gender. 

 Art. 5 - Contributory salary 
  

	 1.
	 The contributory salary of members in salary bands A to E is equal to the contributory salary of the Main Plan. This salary is hereafter referred to as
“contributory salary I”. 

 The contributory salary I is limited to ten times the maximum amount
defined in Article 8(1) LPP/BVG. 
  

	 2.
	 The contributory salary of members in salary bands G to I is equal to the bonus (IC). This salary is hereafter referred to as “contributory salary II”.

 The contributory salary II is limited to ten times the upper amount defined in Article 8(1) LPP less the
contributory salary insured under the Main Plan. 
  

	 3.
	 The contributory salary of members in salary band F is equal to the contributory salary I when the contributory salary insured in the Main Plan plus the bonus
(IC) exceeds ten times the upper amount defined in Article 8(1) LPP. In all other cases, the contributory salary is equal to the contributory salary II. 

  

	 4.
	 The contributory salary never includes any compensation earned from employment with a third party. 

 Art. 6 - Retirement savings capital 
  

	 1.
	 A retirement savings capital is created for each member, consisting of: 

  

	 	 -
	 retirement credits in accordance with Article 7 below; 

  

	 	 -
	 the member’s voluntary contributions; 

  

	 	 -
	 possible repayments of amounts lost in implementation of Article 9 (loss of benefits); and 

  

	 	 -
	 interest accrued on the above amounts. 

			
	 Caisse de pensions Philip Morris en Suisse
	  	
	 Règlement IC Pension Plan
	  	page 3

  
  
 Art. 7 - Retirement credits 
  

	 1.
	 The retirement credits calculated on a yearly basis and expressed as a percentage of the contributory salary are equal to: 

  

	 	 a.
	 contributory salary I: 

  

	 	 -
	 salary bands A to D: 3 % 

  

	 	 -
	 salary band E: 7.2 % 

  

	 	 -
	 salary band F: 6.8 % 

  

	 	 b.
	 contributory salary II: 12 % 

 Art. 8 - Voluntary contributions 
  

	 1.
	 An active member who has accrued the maximum duration specified in Article 10(1) of the Main Plan regulations may purchase pension benefits at any time by means
of a voluntary contribution. 

  

	 2.
	 Vested termination benefits that are not entirely absorbed by the Main Plan in accordance with Article 10(5) of its regulations may be applied to the purchase of
benefits in the IC Pension Plan. 

  

	 3.
	 Voluntary contributions are limited to the difference between: 

  

	 	 a.
	 contributory salary I: 

  

	 	 -
	 3 % of the contributory salary I, multiplied by the difference in years between the year of the member’s 30th birthday and the current calendar year,
and 

  

	 	 -
	 the retirement savings capital accrued at the date of the voluntary contribution: 

  

	 	 b.
	 contributory salary II: 

  

	 	 -
	 12 % of the contributory salary, multiplied by the difference in years between the year of the member’s 30th birthday and the current calendar year,
and 

  

	 	 -
	 the retirement savings capital accrued at the date of the voluntary contribution. 

 The reference salary for calculating the maximum voluntary contribution is equal to the average of the last three contributory salaries
II earned since the start of membership in the IC Pension Plan 
  

	 5.
	 Members can only make a voluntary contribution if they have fully repaid any previous withdrawals obtained for the financing of home ownership (subject to
Article 40(1)(a). 

  

	 6.
	 The maximum amount that may be allocated to the voluntary purchase is reduced by any vested termination benefit that has not been transferred to the Fund plus
that portion of the member’s 3a pillar assets which exceeds the sum of the maximum annual tax deductible contributions from age 24, plus interest, in accordance with Article 7(1)(a) OPP 3. 

  

	 7.
	 In the case of members arriving from abroad who have never belonged to a pension plan in Switzerland, the maximum annual voluntary contribution is limited,
during the first 5 years of membership, to 20 % of the contributory salary. 

			
	 Caisse de pensions Philip Morris en Suisse
	  	
	 Règlement IC Pension Plan
	  	page 4

  
  
  

	 8.
	 Benefits deriving from a member’s voluntary contributions may not be paid out in the form of capital for at least three years. 

 

	 9.
	 If one of the Employers finances all or part of a purchase of benefits in the context of a member’s international transfer within the Altria Group, an
agreement will be concluded between the Fund, the Employer and the member. 

 Art. 9 - Loss of benefits 

 

	 1.
	 If Article 24 (transfer of vested termination benefits in case of divorce) is applied following a divorce, the member’s retirement savings capital will be
reduced and his voluntary and regulatory contributions accounts will be adjusted accordingly. 

  

	 2.
	 If a member makes a withdrawal for the financing of home ownership and an amount is transferred from the IC Pension Plan, the member’s retirement savings
capital will also be reduced and his voluntary and regulatory contributions accounts will be adjusted accordingly. 

 Art. 10 - Interest 
  

	 1.
	 The interest rate payable on the retirement savings capital is set by the Pension Board. 

  

	 2.
	 Interest is credited at the end of each calendar year or on the date the member leaves the IC Pension Plan if an insured event occurs during the year.

  

	 3.
	 Retirement credits bear interest from the 1st day of the month following their payment; voluntary contributions bear interest from the date they are paid in.

  

	 4.
	 The default interest rate is the minimum interest rate set in the LPP plus one percentage point. 

  

	 3.
	 IC Pension Plan benefits 

  

	 1.
	 General principles 

 Art. 11 - Insured benefits 
  

	 1.
	 Subject to the conditions set out below, the IC Pension Plan insures benefits in the form of: 

  

	 	 a)
	 retirement pension or lump-sum retirement capital; 

  

	 	 b)
	 lump-sum disability benefit; 

  

	 	 c)
	 lump-sum death benefit 

  

	 	 d)
	 benefits in case of divorce; 

  

	 	 e)
	 vested termination benefit; 

			
	 Caisse de pensions Philip Morris en Suisse
	  	
	 Règlement IC Pension Plan
	  	page 5

  
  

	 	 f)
	 encouragement of home ownership. 

 Art. 12 - Payment 
  

	 1.
	 IC Pension Plan benefits are payable as follows: 

  

	 	 a)
	 lump-sum capital: within 30 days after falling due, but not before the legal beneficiaries are identified with certainty; 

  

	 	 b)
	 termination benefits: on the date the member leaves the Pension Fund. 

  

	 2.
	 IC Pension Plan benefits are payable at the Pension Fund’s registered office. They are payable in Switzerland in Swiss francs, to a bank or postal account
at the address provided by the beneficiary. The Fund reserves the right to refuse a payment address if electronic payment is not possible. The provisions of international treaties remain applicable 

  

	 3.
	 The Fund may require written proof of benefit entitlement; if the beneficiary fails to produce such proof, the Fund may suspend benefit payments.

  

	 4.
	 The Pension Fund can request repayment of any benefits wrongly paid or received. Repayment may be waived where the beneficiary acted in good faith and repayment
would cause great hardship. 

 Art. 13 - Rights in Case of Third Party Liability 
  

	 1.
	 If the Fund is not subrogated to the rights of the member, his survivors and other beneficiaries defined in Art. 46 pursuant to the LPP, it may require a
disabled member or the survivors of a deceased member to assign their rights against any third party liable for the death or disability, up to the amount of the benefits payable by the Fund. 

  

	 2.
	 The Fund may suspend benefits until it receives such assignment. 

 Art. 14 - Contributory negligence 
  

	 1.
	 If the AVS/AI//AHV/IV reduces, withdraws, or denies benefits on the grounds that the death or disability of the member was caused through gross negligence on the
part of the beneficiary, or if the member refuses rehabilitation measures imposed by the AI/IV, the Pension Board may reduce Fund benefits in an amount not exceeding the measure imposed by the AVS/AI//AHV/IV. 

 Art. 15 - Assignment, Pledge and Compensation 
  

	 1.
	 Benefit entitlements may not be assigned or pledged before they fall due. However, Article 42 (pledge) remains applicable. 

			
	 Caisse de pensions Philip Morris en Suisse
	  	
	 Règlement IC Pension Plan
	  	page 6

  
  

	 2.
	 Entitlement to Fund benefits may only be set off against claims assigned to the Fund by the Employer if such claims relate to contributions that are not deducted
from the salary. 

  

	 3.
	 Any legal instrument which contravenes paragraphs 1 and 2 is null and void. 

 Art. 16 - Statute of limitations 
  

	 1.
	 Actions for recovery of receivables are time-barred after 5 years in the case of contributions or periodical benefits, and after 10 years in all other cases.

  

	 2.
	 Article 41 LPP/BVG and Articles 129 to 142 of the Swiss Code of Obligations are applicable in all other respects. 

 Retirement Pension or Lump-sum Retirement Capital 
 Art. 17 - Entitlement 
  

	 1.
	 Entitlement to retirement benefits begins on the normal retirement date. Article 19 (deferred retirement) remains applicable. 

  

	 2.
	 If a member leaves the Main Plan after the last day of the month preceding his 58th birthday for any reason other than death or disability, he is entitled to the
retirement benefits of the IC Pension Plan from that date. Article 31 (maintenance of insurance) and Article 60 (early retirement age) remain applicable. 

  

	 3.
	 A member who has applied to the Main Plan for a partial or full retirement pension may use all or part of his IC Pension Plan retirement savings capital to
purchase retirement pension benefits from the Main Plan. Pension benefits thus purchased are governed by the regulations of the Main Plan. 

  

	 4.
	 The member must inform the Pension Fund’s management of his choice 3 months before retirement date, otherwise he shall be deemed to have opted for payment
of a lump-sum retirement capital. Article 8(8) remains applicable. 

  

	 5.
	 If the member is married, payment of a lump-sum capital is subject to the written consent of his spouse. If such agreement cannot be obtained or if it is
refused, the member may appeal to the courts. 

 Art. 18 - Amount 
  

	 1.
	 The lump-sum retirement capital is equal to the retirement savings capital accrued at the retirement date. 

			
	 Caisse de pensions Philip Morris en Suisse
	  	
	 Règlement IC Pension Plan
	  	page 7

  
  

	 2.
	 The annual retirement pension purchased in the Main Plan results from the conversion of all or part of the accrued retirement savings capital using the
conversion factor for the member’s age at retirement indicated in Annexe 1 of the Main Plan regulations, plus a percentage of the reserve for changes in mortality tables indicated in the balance sheet of the Main Plan on 1 January of the
year of retirement. 

 Art. 19 - Deferral 
  

	 1.
	 A member who applies to maintain his insurance cover under the Main Plan in accordance with Article 23 of that Plan’s regulations will also maintain his
insurance coverage under the IC Pension Plan until the end of his membership in the Main Plan. 

  

	 2.
	 The member stops paying contributions; he remains entitled to the retirement benefits set out in Article 17 above. 

  

	 3.
	 During the deferral, interest will accrue on his retirement savings capital at the rate set by the Pension Board. 

  

	 4.
	 If a member’s death occurs during the deferral period, the accrued retirement savings capital becomes due immediately and is payable in accordance with
Article 22 below. 

 Lump-sum disability benefit 
 Art. 20 - Recognition of Disability 
  

	 1.
	 A member who is recognised as disabled under the Main Plan regulations qualifies as disabled at the same date and to the same degree under the IC Pension Plan.

 Art. 21 - Entitlement and amount 
  

	 1.
	 The member is entitled to a lump-sum disability benefit when he is recognised as disabled under the Main Plan regulations. 

  

	 2.
	 The lump-sum disability benefit is equal to the accrued retirement savings capital at the date of recognition of disability by the Main Plan.

  

	 3.
	 Entitlement to the full Main Plan pension entails entitlement to full payment of the capital. 

 If the member is entitled to a partial rent under the Main Plan regulations, the lump-sum disability benefit is paid in the same
proportion. 

			
	 Caisse de pensions Philip Morris en Suisse
	  	
	 Règlement IC Pension Plan
	  	page 8

  
  
 Lump-sum death benefit 
 Art. 22 -
Entitlement and amount 
  

	 1.
	 If an active member dies, a lump-sum death benefit is payable to the beneficiaries in accordance with Article 23 below. 

  

	 2.
	 The lump-sum death benefit is equal to: 

  

	 	 a)
	 the retirement savings capital accrued at the date of the member’s death, if the beneficiaries are beneficiaries within the meaning of Article 23(1) of
these Regulations, or of Article 46(1) of the Main Plan regulations. 

  

	 	 b)
	 50 % of the retirement savings capital, but no less than the aggregate of the member’s contributions, without interest, if the beneficiaries are
“other legal heirs” within the meaning of the LPP. 

 Art. 23 - Beneficiaries 
  

	 1.
	 The lump-sum death benefit is payable: 

  

	 	 -
	 first: to the surviving spouse or, from 1 January 2007, to the surviving partner, in accordance with Article
40bis of the Main Plan regulations; 

  

	 	 -
	 failing them: to the other beneficiaries in accordance with Article 46 of the Main Plan regulations. 

  

	 2.
	 If there are no beneficiaries in accordance with paragraph 1 above, the lump-sum death benefit vests in the IC Pension Plan. 

 Benefits in Case of Divorce 
 Art.
24 - Transfer of Termination Benefit in Case of Divorce 
  

	 1.
	 If an active member divorces, the termination benefits that accrued to the member and his ex-spouse during their marriage are divided between them in accordance
with Sections 122, 123, 141 and 142 of the Swiss Civil Code. The Court automatically notifies the Fund of the amount to be transferred and all information necessary for the transfer. 

  

	 2.
	 If the court notifies the Fund in accordance with paragraph 1, the retirement savings capital in the IC Pension Plan at the time of the divorce is first reduced
by the amount attributed by the court to the ex-spouse. The member may partially or fully repay the amount thus transferred; the repayment will be applied to rebuilding his retirement savings capital. 

  

	 3.
	 The sum of voluntary contributions made by the member up to the divorce will be reduced proportionately to the reduction in retirement savings capital.

			
	 Caisse de pensions Philip Morris en Suisse
	  	
	 Règlement IC Pension Plan
	  	page 9

  
  
 Vested Termination Benefit 
 Art.
25 - Termination of employment 
  

	 1.
	 A member who leaves the Main Plan for any reason other than death or disability before he is entitled to draw retirement benefits is entitled to vested
termination benefits in the amount determined in accordance with Article 26 (amount of vested termination benefits) and Article 27 (minimum amount of vested termination benefits) below. 

  

	 2.
	 Vested termination benefits are payable when a member leaves the IC Pension Plan. After that date, they earn interest at the minimum LPP/BVG rate. If the Fund
does not transfer the benefits due within 30 days of receipt of all requisite information, default interest shall accrue as of that time. 

 Art. 26 - Amount of the Vested Termination Benefit 
  

	 1.
	 Subject to Article 27 below, the vested termination benefits are equal to the member’s retirement savings capital at the date he leaves, after taking into
account Article 24 (transfer of vested termination benefits in case of divorce) and Article 38 (withdrawals - consequences). 

  

	 2.
	 If, on the last day of employment, the member was employed with the Altria Group for less than 5 years starting from the date of the member’s 18th birthday,
the vested termination benefit will be reduced by any amounts financed by the Employer pursuant to Articles 8(9). That reduction is decreased by one tenth of the amount financed by the Employer for every year of employment with the Altria Group
starting from the date of the member’s 18th birthday. The reduction for a fraction of a year is calculated pro rata temporis. The amount not attributed to the member is treated as a contribution reserve of the Employer. If, on the last day of
employment, the member has been employed with the Altria Group for 5 years or more since the date of his 18th birthday, no reduction shall be made. 

 Art. 27 - Minimum Amount of Vested Termination Benefit 
  

	 1.
	 When a member leaves the Pension Fund, he is entitled at least to any voluntary contributions made pursuant to Articles 8 and 59, and to any repayments of
amounts lost pursuant to Article 9, with interest at the rate set in the LPP; in addition, the member is entitled to any personal contributions to the IC Pension Plan paid in after 1 January following his 24th birthday, without interest but
increased by 4 % per year over age 20, up to a maximum of 100 %, after Articles 24 (transfer of termination benefits in case of divorce) and 38 (withdrawals - consequences) have been taken into account. 

  

	 2.
	 The vested termination benefits are reduced by any amount financed by the Employer in accordance with Article 8(9). That deduction is reduced by one tenth of the
amount financed by the Employer for every year of contribution to the IC Pension Plan. The reduction for a fraction of a year is calculated pro rata temporis. The amount not attributed to the member is treated as a contribution reserve of the
Employer. 

			
	 Caisse de pensions Philip Morris en Suisse
	  	
	 Règlement IC Pension Plan
	  	page 10

  
  
 Art. 28 - Transfer of the Vested Termination Benefit 
  

	 1.
	 When a member leaves the Pension Fund, the Fund informs him of the amount of his vested termination benefits, inviting him to provide the necessary instructions
for their transfer within 30 days in accordance with paragraphs 2 and 3 below. 

  

	 2.
	 If the member starts working for a new employer, the Fund shall transfer the vested termination benefits together with the vested termination benefits of the
Main Plan to the new employer’s pension plan in accordance with the member’s instructions. 

  

	 3.
	 If the member does not go to work for a new employer, he may choose between: 

  

	 	 a)
	 purchasing a vested benefits policy with an insurance company subject to ordinary insurance regulation, or with a group of such insurance companies, or with an
insurance company under public law within the meaning of Art. 67(1) LPP/BVG; or 

  

	 	 b)
	 opening a vested benefits account with a pension fund whose assets are invested by, or with, a bank governed by the Federal Law on Banks and Savings
Institutions. 

  

	 4.
	 If the member fails to provide the requisite information within the specified time, the IC Pension Plan shall transfer the vested termination benefit, including
interest, to a vested benefits account or to the Substitute Pension Plan no later than two years after termination of employment. 

  

	 5.
	 Article 29 remains applicable. 

 Art. 29 - Cash Payment 
  

	 1.
	 Subject to Article 8(8), a member may apply to receive his vested termination benefit in cash: 

  

	 	 a)
	 if he leaves Switzerland permanently for a country other than the Principality of Liechtenstein; 

  

	 	 b)
	 if he becomes self-employed and is no longer subject to the LPP/BVG; 

  

	 	 c)
	 if the vested termination benefit is less than the member’s annual contribution at the time of termination of employment. 

  

	 2.
	 If the member is married, payment in cash may only be made with the written consent of the spouse. If such consent cannot be obtained, or is unduly withheld, the
member may appeal to the courts. 

  

	 3.
	 The Pension Board may require the member to submit any proof it deems necessary and may delay payment until such proof is submitted.

 Art. 30 - End of insurance 
  

	 1.
	 IC Pension Plan insurance coverage ends on the day the member leaves the Pension Fund, namely on the last day of the month when employment ends.

			
	 Caisse de pensions Philip Morris en Suisse
	  	
	 Règlement IC Pension Plan
	  	page 11

  
  

	 2.
	 If, in the month following the end of employment, the member does not enter into an employment contract with a new employer, and if he has an earning incapacity
which subsequently causes him to be qualified as disabled under the Main Plan, the benefits paid by the IC Pension Plan are those that were insured on the day the member left the IC Pension Plan. 

  

	 3.
	 If the IC Pension Plan intervenes in accordance with paragraph 2 of this Article, and if the vested termination benefit was already transferred, the Pension Fund
shall claim restitution. If restitution is not forthcoming, the IC Plan benefits shall be reduced accordingly. 

  

	 4.
	 Article 31 (maintenance of insurance coverage as an external member) remains applicable. 

 Maintenance of Insurance Coverage 
 Art. 31 - Maintenance of Insurance as an External Member 
  

	 1.
	 A member who applies to maintain his insurance cover as an external member under the Main Plan in accordance with Articles 57 and 58 of that Plan’s
regulations also maintains his insurance coverage under the IC Pension Plan. The same applies to a member who applies to maintain his insurance cover as a contributing external member under the Main Plan in accordance with Article 59 of that
Plan’s regulations. 

  

	 2.
	 The member stops paying contributions; the retirement savings capital accrued at the last day of employment will be increased by interest at the rate set by the
Pension Board. 

  

	 3.
	 Benefit entitlements remain subject to the provisions of these Regulations. However, the application of Articles 8 (the repurchase of insurance years) and 32
(accession of the property) to 45 is excluded. 

  

	 4.
	 A member who is downgraded below grade I maintains his insurance coverage under the IC Pension Plan as an external member from 1 January coinciding with or
following the downgrading. The member stops paying contributions; the accrued retirement savings capital will be increased by interest at the rate set by the Pension Board. Benefit entitlements remain subject to the provisions of these Regulations.
Notwithstanding, Article 8 is excluded from application from the date of downgrading. 

 Encouragement of Home Ownership

 Art. 32 - General Provisions 
  

	 1.
	 Any active member may use all or part of the retirement savings capital globally acquired in the Main Plan and in the IC Pension Plan to:

  

	 	 -
	 acquire or build a residential property; 

  

	 	 -
	 acquire co-ownership of a residential property; 

			
	 Caisse de pensions Philip Morris en Suisse
	  	
	 Règlement IC Pension Plan
	  	page 12

  
  

	 	 -
	 repay mortgages. 

  

	 2.
	 The member may only use his retirement savings capital, or any part thereof, for one residential property at a time. 

  

	 3.
	 The property may be: 

  

	 	 a)
	 an apartment; 

	 	 b)
	 a single-family home. 

  

	 4.
	 “Residential property” is understood to mean: 

  

	 	 a)
	 ownership; 

	 	 b)
	 co-ownership, in particular condominium ownership; 

	 	 c)
	 joint ownership by the member and his spouse; 

	 	 d)
	 an independent and long-standing right to build a residence on leasehold property. 

  

	 5.
	 “Co-ownership of a residential property” is understood to mean: 

  

	 	 a)
	 the purchase of shares in a cooperative residential association; 

	 	 b)
	 the purchase of shares of a publicly-owned, residential rental property; 

	 	 c)
	 the granting of multiple-party loans to a non-profit residential organisation 

 subject, however, to the condition that the rules of the cooperative residential association or of a similar ownership organisation
selected by the member stipulate that on leaving the cooperative residential association or the publicly-owned residential property organisation or the non-profit residential organization, the amounts invested in shares or similar certificates of
such organisations may only be transferred only to a similar organisation in which the member personally uses a residence, or alternatively, to an occupational pension plan. 
 The share certificates or similar certificates must be deposited with the Pension Fund. 
 Art. 33 - Definition of a Residence for the Member’s Own Use 
  

	 1.
	 The following provisions refer to the purchase of a residence “for the member’s own use”. A “residence for the member’s own use” is
understood to mean a residence that the member uses at his place of domicile or at his usual place of residence. 

  

	 2.
	 If a member lives abroad, he must, before obtaining a withdrawal or making a pledge, submit the proof that he is using the amounts in question for his own
residential property. 

 Art. 34 - Forms of Encouragement 
  

	 1.
	 The encouragement of home ownership, within the meaning of these Regulations, may take two separate forms: 

  

	 	 a)
	 withdrawal of all or part of the vested termination benefit, within the limits, and according to the terms and with the consequences described in the Articles 36
to 41 below; 

			
	 Caisse de pensions Philip Morris en Suisse
	  	
	 Règlement IC Pension Plan
	  	page 13

  
  

	 	 b)
	 pledge of the vested termination benefit and/or of the entire entitlement to future benefits, within the limits, and according to the terms and with the
consequences defined in Articles 42 to 44 below. 

  

	 2.
	 The two forms of financing home ownership may be combined. 

 Art. 35 - Proof 
  

	 1.
	 A member wishing to avail himself of his right to one or other form of financing home ownership must show that all applicable conditions have been satisfied by
submitting the documents requested by the Pension Fund. 

 Art. 36 - Withdrawal - Entitlement 
  

	 1.
	 Each member may request a withdrawal up to the end of the month in which he reaches age 62, provided, however, that he is not already drawing benefits from the
IC Pension Plan. 

  

	 2.
	 The member may also apply for the withdrawal within the time limit set in paragraph 1 and request that it be processed after that date, but not later than the
date his retirement benefits begin. The time limits defined in Article 39 remain applicable. 

  

	 3.
	 If the member is married, a withdrawal may only be made with the written consent of the spouse. If such agreement cannot be obtained or if it is refused, the
member may appeal to the courts. 

  

	 4.
	 A withdrawal may be claimed only once every 5 years. 

 Art. 37 - Amount 
  

	 1.
	 The aggregate withdrawal amount may not be less than CHF 20,000, subject to paragraph 2, and may not exceed the amount defined below:

  

	 	 a)
	 if requested up to the last day of the month in which the member turns 50: 

 the total vested termination benefit calculated at the date of the withdrawal in accordance with Articles 26 and 27 of these Regulations,
and of Articles 52 and 53 of the Main Plan regulations. 
  

	 	 b)
	 if requested after the last day of the month in which member turns 50: 

 the greater of the following amounts: 
  

	 	 -
	 the vested termination benefit to which the member would have been entitled under the regulations of the pension plan of which he was a member on the last day of
the month of his 50th birthday, had he terminated employment at that date, plus any repayments of withdrawals made after that date, less any withdrawals or pledges made after that date; 

			
	 Caisse de pensions Philip Morris en Suisse
	  	
	 Règlement IC Pension Plan
	  	page 14

  
  

	 	 -
	 50 % of the difference between the lump-sum termination benefit calculated at the withdrawal date in accordance with Articles 26 and 27 of these Regulations
and Articles 52 and 53 of the Main Plan regulations and the vested termination benefit already used for financing home ownership at that date. 

  

	 2.
	 The limit of CHF 20,000 does not apply to the purchase of shares in cooperative residential associations or similar forms of co-ownership.

  

	 3.
	 Article 8(8) of these Regulations and Article 12(4) of the Main Plan regulations remain applicable. 

  

	 4.
	 The Fund reserves the right to charge an administration fee for handling withdrawal requests. 

 Art. 38 - Consequences 
  

	 1.
	 A withdrawal has the effect of reducing the retirement savings capital by an equal amount. 

  

	 2.
	 The voluntary contributions of the member will be reduced proportionately with the reduction in retirement savings capital. 

  

	 3.
	 To compensate the effects of the reduction in retirement savings capital on the IC Pension Plan death and disability benefits, the Pension Fund, acting as an
intermediary, shall conclude an insurance policy covering all or part of the reduction in death and disability benefits insured by the IC Pension Plan. The member assumes the total cost of such an insurance policy. 

 Art. 39 - Implementation 
  

	 1.
	 The Fund shall pay the full withdrawal amount no later than 6 months after the member submits his withdrawal request; however, Article 36(2) remains applicable.
In case of underfunding, this limit may be extended to 12 months. In case of significant underfunding, withdrawals for mortgage repayments may be deferred until further notice; the Fund shall inform members and the regulatory authority of the
duration of this measure. 

  

	 2.
	 After the documents requested by the Fund have been produced, the Fund shall transfer the agreed amount, with the member’s consent and based on the
agreement concluded between the parties, directly to the creditor (seller, lender) or to the beneficiary according to Article 32(4) and (5). 

  

	 3.
	 If the Fund can justify liquidity problems, the Pension Board shall establish a priority schedule and inform the regulatory authority; the Fund will discharge
its obligations according to its cash flow position and the priority schedule. 

			
	 Caisse de pensions Philip Morris en Suisse
	  	
	 Règlement IC Pension Plan
	  	page 15

  
  
 Art. 40 - Repayment 
  

	 1.
	 The member may repay the withdrawal no later than: 

  

	 	 a)
	 the end of the month during which he reaches age 62, provided, however, that he does not already draw an early retirement pension; 

 

	 	 b)
	 at the date on which he is recognized as disabled by the Main Plan or the IC Pension Plan, or at his death; 

  

	 	 c)
	 on cash payment of his vested termination benefit. 

  

	 2.
	 The repayment may not be less than CHF 20,000; if the amount outstanding is less than CHF 20,000 it must be repaid in a single amount.

  

	 3.
	 The Fund provides the member with confirmation of the repayment on an official form issued by the Federal Tax Office. 

  

	 4.
	 If none of the conditions in paragraph 1 is fulfilled, the member must repay the withdrawal to the Fund if: 

  

	 	 -
	 the residential property is sold; 

	 	 -
	 rights are granted on the property which are economically equivalent to a sale. 

  

	 5.
	 If the member dies and no benefits are payable by the IC Pension Plan upon his death, the heirs of the deceased are required to repay the amount of the
withdrawal paid out by the IC Pension Plan and outstanding at the member’s death, subject to Article 41(1). The repayment vests in the IC Pension Plan. 

  

	 6.
	 The aggregate withdrawal obtained from the Fund and repaid in accordance with paragraphs 1 and 4 of this article shall be applied first to the purchase of
pension benefits in accordance with Article 10 of the Main Plan regulations and then to the rebuilding of retirement savings capital in accordance with Article 6 of these Regulations. The same applies to any amounts transferred in from another
pension plan. Article 4 1(2) below remains applicable. 

 Art. 41 - Sale of the Residential Property 
  

	 1.
	 If a residential property is sold the repayment obligation is limited to the withdrawal amounts received from the pension plans in which the member participated
and which have not yet been repaid, but to no more than the proceeds of the sale, namely the sale price less the mortgage loans and the legal charges for the seller’s account. The obligations arising from loans contracted in the two years
preceding the sale of the residential property are not taken into consideration for the calculation of the proceeds of the sale, unless the member can prove that the loans were used to finance his residential property. 

 

	 2.
	 If, in the two years after the sale the member intends to reinvest the proceeds from the sale corresponding to the withdrawal in a new residential property, he
may transfer the amount to a vested benefits institution. 

			
	 Caisse de pensions Philip Morris en Suisse
	  	
	 Règlement IC Pension Plan
	  	page 16

  
  

	 3.
	 The assignment of property rights which are economically equivalent to a sale is also considered as a sale. However, the transfer of a residential property to a
beneficiary within the meaning of pension legislation is not treated as a sale, although the beneficiary is subject to the same restrictions on sale as the member. 

  

	 4.
	 The restriction on the right of sale is filed with the Land Registry. A request may be made to remove the entry when it becomes redundant, namely:

  

	 	 a)
	 3 years before the normal retirement date; 

  

	 	 b)
	 after the occurrence of another insured event; 

  

	 	 c)
	 on the cash payout of the vested termination benefit; 

  

	 	 d)
	 if it is established that the amount invested in the residential property was repaid to the Fund or transferred to a vested termination benefits institution.

 Art. 42 - Pledge - Principle 
  

	 1.
	 Up to the end of the month in which the member reaches age 62 and provided he is not already drawing a pension from the IC Pension Plan, he may pledge:

  

	 	 a)
	 up to the last day of the month in which the member turns 50: 

 up to a maximum of the vested termination benefit to which he would be entitled at the time of making the pledge calculated in accordance with Articles 26 and 27 of these Regulations and of
Articles 52 and 53 of the Main Plan regulations; 
  

	 	 b)
	 after the last day of the month in which the member turns 50: 

 up to the greater of the two amounts defined in Article 37(1)(b); 
  

	 	 c)
	 regardless of age: 

 his entitlement to future benefits up to the amounts defined in paragraphs a) and b) above, taking into account his age. 
  

	 2.
	 Article 8(8) of these Regulations and Article 12(4) of the Main Plan regulations remain applicable. 

  

	 3.
	 Article 36 above concerning entitlement to a withdrawal applies mutatis mutandis to a pledge. 

  

	 4.
	 Notwithstanding Article 36(4), the amount pledged may be adjusted at any time until the maximum amount defined in paragraph 1 is reached.

  

	 5.
	 To be valid, the Fund must receive written notice of a pledge. 

 Art. 43 - Consequences of Enforcing a Lien 
  

	 1.
	 The Fund must inform the member about the consequences of the enforcement of a lien. 

  

	 2.
	 If the lien is enforced, fully or in part, Article 38 shall apply by analogy. 

			
	 Caisse de pensions Philip Morris en Suisse
	  	
	 Règlement IC Pension Plan
	  	page 17

  
  
 Art. 44 - Consent of the Mortgagee 
  

	 1.
	 The mortgagee’s written consent is required: 

  

	 	 a)
	 for the cash payment of a vested termination benefit; 

  

	 	 b)
	 if benefits are due by the IC Pension Plan; 

  

	 	 c)
	 if part of the vested termination benefit is transferred to the member’s ex-spouse in the event of a divorce. 

  

	 2.
	 If the mortgagee refuses to give his consent, the IC Pension Plan shall deposit the amount in safekeeping. 

  

	 3.
	 If the member changes employer and joins a new pension plan, the Fund must inform the mortgagee. In particular, the information must specify the name of the
pension plan to which the vested termination benefit is transferred and the amount of the vested termination benefit. 

 Art. 45 - Tax Provisions on the Encouragement of Home Ownership 
  

	 1.
	 Withdrawals and proceeds from the satisfaction of a pledge on the pension assets are taxable as pension income. 

  

	 2.
	 In the case of repayment of the withdrawal or the proceeds from the satisfaction of the of a pledge, the taxpayer may apply for a refund of the taxes paid on the
withdrawal or on the proceeds from the satisfaction of the of a pledge. Such repayments are not deductible from taxable income. 

  

	 3.
	 To obtain a tax refund, the member must apply in writing to the tax office that collected the taxes and submit documents evidencing:

  

	 	 -
	 the repayment; 

  

	 	 -
	 the retirement savings capital invested in the residential property; 

  

	 	 -
	 the taxes paid to the Confederation, the canton and the municipality on a withdrawal or on the proceeds from the satisfaction of a pledge.

  

	 4.
	 The right to a tax refund lapses three years after the withdrawal or the proceeds from the satisfaction of a pledge is/are repaid to a pension plan.

  

	 5.
	 The Fund must notify the Federal Tax Office within 30 days of any withdrawal, proceeds from the satisfaction of a pledge, or repayment within the meaning of the
above provisions. 

  

	 6.
	 This Article applies to direct federal, cantonal and municipal taxes. 

			
	 Caisse de pensions Philip Morris en Suisse
	  	
	 Règlement IC Pension Plan
	  	page 18

  
  

	 4.
	 IC Pension Plan Resources 

 Art. 46 - General Resources 
  

	 1.
	 The resources of the IC Plan consist of: 

  

	 	 a)
	 regulatory contributions of the members; 

  

	 	 b)
	 voluntary contributions within the meaning of Article 8 (voluntary contributions) and any repayments of amounts lost in accordance with Article 9 (loss of
benefits); 

  

	 	 c)
	 the regulatory contributions of the Employer; 

  

	 	 d)
	 any temporary remedial contributions from members and the Employer; 

  

	 	 e)
	 any grants, donations and bequests; 

  

	 	 f)
	 insurance benefits and residual balances which, for whatever reason, are not allocated to the beneficiaries; 

  

	 	 g)
	 income on its assets. 

 Art. 47
- Member’s Contributions 
  

	 1.
	 Each member must pay contributions from the time he joins the IC Pension Plan and for as long as he is a member of that plan, but no later than the date on which
he is recognized as disabled, or until the date he reaches normal retirement age. Article 31 (maintenance of insurance as an external member) remains applicable. 

  

	 2.
	 The member’s annual contribution is equal to: 

  

	 	 a.
	 contributory salary I: 

  

	 	 -
	 salary bands A to D: 1.5 % 

  

	 	 -
	 salary band E: 3.6 % 

  

	 	 -
	 salary band F: 3.4 % 

  

	 	 b.
	 contributory salary II: 6 % 

  

	 3.
	 The member’s contribution to the IC Pension Plan is deducted from the member’s salary each year. 

 Art. 48 - Employer’s contribution 
  

	 1.
	 As long as the member is required to pay contributions, the Employer shall do so as well. 

  

	 2.
	 For each active member, the Employer pays a contribution equal to the contribution amount paid by the member. The Employer’s contribution is transferred to
the IC Pension Plan together with the member’s contribution. 

			
	 Caisse de pensions Philip Morris en Suisse
	  	
	 Règlement IC Pension Plan
	  	page 19

  
  
 Art. 49 - Remedial measures 
  

	 1.
	 If and for as long as the IC Pension Plan is underfunded within the meaning of the LPP, the Pension Board may deduct a temporary remedial contribution from the
Employer and active members within the limits prescribed by law. 

  

	 2.
	 The Employer’s remedial contribution may only be deducted with its consent. 

  

	 3.
	 The remedial contribution is not included for the purpose of calculating the minimum vested termination benefits (Article 27) and lump-sum death benefits
(Article 22). 

  

	 4.
	 If the IC Pension Plan is underfunded within the meaning of the LPP, the Pension Board may suspend payment of interest on accrued assets until the Plan regains a
balanced financial position. 

  

	 5.
	 If the IC Pension Plan is underfunded, the Pension Board may suspend the right to make voluntary contributions in accordance with Article 8 above.

  

	 6.
	 The Pension Board shall inform members of the scope and duration of any remedial measures. 

 Art. 50 - Assets 
  

	 1.
	 The IC Pension Plan’s liability for the obligations hereunder is limited to its assets. 

  

	 2.
	 The Employers assume no responsibility whatsoever for the obligations of the Pension Fund pursuant to these Regulations. 

  

	 5.
	 Administration 

 Art. 51
- Pension Board 
  

	 1.
	 The Pension Board, established in accordance with Article 8 of the Fund’s Statutes, is the sole governing body of the Fund. The Pension Board organises
itself; in particular, it elects a Chair from among its number. 

  

	 2.
	 The Board is made up of an even number, with at least six members, as follows: 

  

	 	 -
	 one half consists of members appointed by the Employer, represented by the Philip Morris Products SA Board of Directors; 

  

	 	 -
	 one half consists of members elected by the active members and chosen from among their number, in accordance with the procedure established by the outgoing
Pension Board. 

  

	 3.
	 The Fund guarantees the initial and ongoing training of Pension Board members to enable them to fully assume their administrative duties.

			
	 Caisse de pensions Philip Morris en Suisse
	  	
	 Règlement IC Pension Plan
	  	page 20

  
  
 Art. 52 - Term of Office 
  

	 1.
	 The members of the Board have a 3-year term of office; on expiry, the members may be immediately reappointed or re-elected. 

  

	 2.
	 The term of office of members appointed by the Board of Directors ends on the date stipulated in the relevant oral or written agreement.

  

	 3.
	 If a member of the Pension Board leaves the Employer or resigns from the Board before the end of the three-year term, he shall be immediately replaced by a
successor who will complete the outgoing member’s term of office. The successor may be a deputy appointed or elected in advance, or a member appointed or elected mutatis mutandis pursuant to Article 51 (Pension Board).

 Art. 53 - Duties, Powers, Convening, Resolutions 
  

	 1.
	 The duties of the Pension Board, its powers, the rules for convening the Board and for decision-making are laid down in the Statutes of the Pension Fund.

  

	 2.
	 The Pension Board represents the Pension Fund vis-à-vis third parties and designates the persons authorised to bind the Fund by joint signature.

  

	 3.
	 On its own authority, it may delegate certain administrative and daily management duties to one or more of its members, to administrative staff members of the
Altria/Philip Morris Group, or to third parties. Such delegations of power may be revoked at any time. 

 Art. 54 -
Meetings and Resolutions 
  

	 1.
	 The Board meets when convened, at least once a year, at such place and date at it may decide. 

  

	 2.
	 The Board may validly pass resolutions at each meeting, provided a majority of its members are present. 

  

	 3.
	 Resolutions are passed by a simple majority. The chair takes part in the vote. 

  

	 4.
	 The Board may validly vote by correspondence if the object of the vote has been communicated in writing to all members and is approved by all.

 Art. 55 - Auditors 
  

	 1.
	 The auditors may be: 

  

	 	 -
	 a member of a group affiliated to the Swiss Chamber of Trustees and Auditors, or a member of the Swiss Organization of Certified Public Accountants;

  

	 	 -
	 an auditing company recognized by the Federal Social Security Office or by the regulatory authority. 

			
	 Caisse de pensions Philip Morris en Suisse
	  	
	 Règlement IC Pension Plan
	  	page 21

  
  

	 2.
	 The auditors appointed by the Pension Board verify each year the conduct of business, the financial statements, the investments and the retirement accounts of
the IC Pension Plan. 

  

	 3.
	 The auditors submit a written report on their observations and findings to the Pension Board and the regulatory authority. 

 Art. 56 - Accredited Pension Actuary 
  

	 1.
	 The accredited pension actuary appointed by the Board shall periodically verify that: 

  

	 	 a)
	 the IC Pension Plan offers the assurance that it can meet its obligations; 

  

	 	 b)
	 the actuarial provisions concerning benefits and financing comply with legal requirements. 

  

	 2.
	 If the actuary finds shortcomings, he shall propose appropriate remedial action to the Board to eliminate such deficiencies. 

  

	 3.
	 In case of underfunding, the actuary shall propose remedial measures to the Pension Board with a view to restoring the Plan’s balanced financial position
within a reasonable period of time. 

 Art. 57 - Liability, Confidentiality 
  

	 1.
	 All persons responsible for the administration, management, or auditing of the IC Pension Plan shall be liable for any loss or damage they may cause the Plan
wilfully or by negligence. 

  

	 2.
	 The persons referred to in paragraph 1 are bound to maintain confidentiality in respect of all facts and information of a confidential nature that may come to
their knowledge during the course of their work. 

  

	 3.
	 The Employer shall be liable for any loss or damage suffered by the IC Pension Plan as a result of its failure to provide material information to the latter (in
particular: new members, salaries, salary changes, termination of employment, etc.) 

 Art. 58 - Information

  

	 1.
	 The Fund sends each member an insurance certificate for the IC Pension Plan at least once a year. 

  

	 2.
	 The certificate shows the member’s insurance situation, particularly the following amounts: insured benefits, contributory salary, and vested termination
benefit. In the event of discrepancy between the insurance certificate and these Regulations, the Regulations shall take precedence. 

			
	 Caisse de pensions Philip Morris en Suisse
	  	
	 Règlement IC Pension Plan
	  	page 22

  
  

	 3.
	 Moreover, the Fund sends each member, at least once a year, a summary annual report containing information, inter alia, on the IC Pension Plan organization and
financing, and on the composition of the Pension Board. 

  

	 4.
	 The Fund also informs members at their request of the return on capital, trends in actuarial risk, administrative expenses, mathematical reserve calculation
rules, additional reserves and funded status. It bases its information on the most recent report of the accredited pension actuary. 

  

	 6.
	 Transitional Provisions 

 Art. 59 - Voluntary Contributions on the Entry into Effect of the IC Plan 
  

	 1.
	 The regulations effective on 1 February 2005 concerning the purchase of benefits on the entry into effect of the IC Pension Plan, remain applicable.

 Art. 60 - Early retirement age 
  

	 1.
	 Up to 31 December 2010, the minimum early retirement age for members who were in the Fund on 31 December 2005 is maintained at age 57.

 Art. 61 - Disability Benefits 
  

	 1.
	 When the incapacity for work, the cause of which led to the disability, commenced between 1 February and 31 December 2005, entitlement to disability
benefits is governed exclusively by the regulations which came into effect on 1 February 2005 

  

	 7.
	 Final Provisions 

 Art.
62 - Amendment of the Regulations 
  

	 1.
	 The Pension Board may amend these Regulations at any time provided it does not reduce members’ vested benefits calculated at the date of the amendment.

 Art. 63 - Interpretation 
  

	 1.
	 Any cases not expressly provided for in these Regulations shall be decided by the Pension Board taking into account the meaning and spirit of the Statutes of the
Pension Fund, these Regulations of the IC Pension Fund, applicable legislation and the corresponding implementation ordinances. 

			
	 Caisse de pensions Philip Morris en Suisse
	  	
	 Règlement IC Pension Plan
	  	page 23

  
  
 Art. 64 - Disputes 
  

	 1.
	 Any dispute arising out of the interpretation, the application or non-application of these Regulations shall be submitted to the competent courts at the
registered office or Swiss domicile of the defendant, or of the place of business in Switzerland where the member was employed. 

 Art. 65 - Translations 
  

	 1.
	 These Regulations were drawn up in French; they may be translated into English. 

  

	 2.
	 In case of discrepancy between the French version and the English translation, the French version shall take precedence. 

 Art. 66 - Supplementary Regulations 
  

	 1.
	 To comply with occupational pension legislation, the Board shall draw up supplementary regulations defining conditions and procedure in the event of partial
liquidation. They shall be submitted to the regulatory authority for approval. 

  

	 2.
	 The Board shall also establish an investment policy covering investment allocation and providing rules for asset allocation, the reference framework, and the
organization of day to day management. 

 Art. 67 - Effective Date 
  

	 1.
	 These Regulations enter into effect on 1 January 2006; they supersede the Regulations effective on 1 February 2005 

  

	 2.
	 They shall be submitted to the competent regulatory authority. 

  

	 3.
	 They shall be published on the Employer’s intranet site and a hard copy shall be sent to members upon request.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}]]