Νόμος 3530/2007

ΝΟΜΟΣ ΥΠ' ΑΡΙΘΜ. 3530

Κύρωση Συμφωνίας για την Καταπολέμηση του Λαθρεμπορίου και των Παραποιημένων Προϊόντων και Γενική Απαλλαγή και των Προσαρτημάτων, των Συνημμένων Εγγράφων και των Πινάκων αυτής.

Ο ΠΡΟΕΔΡΟΣ ΤΗΣ ΕΛΛΗΝΙΚΗΣ ΔΗΜΟΚΡΑΤΙΑΣ

Εκδίδομε τον ακόλουθο νόμο που ψήφισε η Βουλή: Άρθρο πρώτο

Κυρώνεται και αποκτά την ισχύ νόμου η Συμφωνία για την Καταπολέμηση του Λαθρεμπορίου και των Παραποιημένων Προϊόντων και Γενική Απαλλαγή, καθώς και τα Προσαρτήματα, τα Συνημμένα Έγγραφα και οι Πίνακες αυτής, που υπογράφηκαν στις Βρυξέλλες στις 9 Ιουλίου 2004, των οποίων τα κείμενα σε πρωτότυπο στην αγγλική γλώσσα και σε μετάφραση στην ελληνική έχουν ως εξής:

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

ARTICLE 1 Definitions

Section 1.01. Definitions.......................................................................................

ARTICLE 2

Philip Morris International's Sales And Distribution Practices

Section 2.01. EC Compliance Procedures..........................................................]

Section 2.02 . Certification of Compliance with EC Compliance Protocols.......1

ARTICLE 3

Ανή-Contraband and Ανή-Counterfeit Initiatives

Section 3.01. Anti-Contraband and Anti-Counterfeit Initiatives........................i

Section 3.02. Support for Anti-Contraband and Anti-Counterfeit Initiatives.....:

ARTICLE 4

Ανή-Contraband and Anti-Counterfeit Cooperation

Section 4.01. Contraband and Counterfeit Seizures...........................................'.

ARTICLE 5 Tracking and Tracing

Section 5.01. Tracking and Tracing Protocols...................................................'

Section 5.02. Certification of Compliance with Tracking and Tracing Protocols.

ARTICLE 6 Review of Agreement

Section 6.01. Annual Meetings...........................................................................

ARTICLE 7 Fulfillment of Obligations and Objectives

Section 7.01. Promotion of Public Policy...........................................................

Section 7.02. Respect for Obligations................................................................

Section 7.03 , Agreement Consistent with EC and Applicable National Laws... S ection 7.04. The Parties' Intentions.......................................· ··.......................

ARTICLE 8 Representations and Warranties

Section 8.01 . Mutual Representations...............................................................

ARTICLE 9 Release and Dismissal of Claims

Section 9.01 . Release......................

Section 9.02. Dismissal Of Claims.

ARTICLE 10 Setoff

Section 10.01. Right of Setoff.... Section 10.02. No Other Effect.

ARTICLE 11 Termination

Section 11.01 Section 11.02

Termination..................

Subsequent Agreement.

ARTICLE 12 Dispute Resolution

Section 12.01 . The Role of the European Court of First Instance and the

European Court of Justice........................................................................

Section 12.02. Dispute Resolution for Claims Brought Under the Terms of the Agreement.................................................................................................

ARTICLE 13 Miscellaneous

Section 13.01 . Section 13.02 . Section 13.03 . Section 13.04. Section 13.05 . Section 13.06. Section 13.07 . Section 13.08 . Section 13.09 . Section 13.10. Section 13.11. Section 13.12. Section 13.13 . Section 13.14. Section 13.15 . Section 13.16 .

Notices:....................................................................................

Waivers...................................................................................

Expenses..................................................................................

Nature of Payments.................................................................

Successors and Assigns...........................................................

Legality and Severability........................................................

Counterparts; Effectiveness; Third Party Beneficiaries.........

Entire Agreement....................................................................

Captions...........................................................,......................

Designated EC Representative...............................................

Amendments............................................................................

Authorship...............................................................................

Use of Information Provided by Philip Morris International.

Equal Treatment Provision.....................................................

Additional Participating Member States................................

Use of the Agreement..............................................................

Attachments, Exhibits & Schedules

Fiscal Compliance Policy EC Compliance Protocols

Philip Morris International's Monetary Contributions Tracking and Tracing Protocols Schedule of Applicable Taxes and Duties Factors for Estabhshing Counterfeit Philip Morris Cigarettes

List Of Designated States Form of Dismissals List of Philip Morris Trademarks List of Arbitrators

Amendments to the Baseline Amount and Article 4

ANTI-CONTRABAND AND ANTI-COUNTERFEIT AGREEMENT AND GENERAL RELEASE

TMs'Anti-Contraband and Anti-Counterfeit Agreement and General Release dated as of July 9,2004, (this "Agreemenf *) 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 'Tarticipating 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 Adininistrations, "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 Π 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 mdirect, 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 PhUip Morris Cigarettes in the Territory of the Member States in violation of applicable laws (such action, the "Civil Action");

(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 obMgations in this Agreement, the Parties agree mat 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 obHgations 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 mis Agreement;

NOW, THEREFORE, in consideration of the mutual obHgations 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 DEFTNTnONS

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 conttolling, 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.

I Willi jllill⁰^

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"Anti-Contraband and Anti-Counterfeit Initiatives" shall have the meaning ascribed to it in Section 3.01 of this Agreement.

"Applicanf' shall have the meaning ascribed to it in the EC Compliance Protocols, attached as Appendix Β to this Agreement.

"Approved Contractor" means a Contractor approved by Philip Morris International in accordance with the EC Compliance Protocols, attached as Appendix Β 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 Intemational 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.

"Compliance Order* shall have me meaning ascribed to it in Section 2.02(d) of this Agreement

"Contraband Cigarettes" means Cigarettes that have been imported into, disiribnted in, or sold in, me 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 mis Agreement, shall exclude Counterfeit Philip Morris Cigarettes.

"Contractor" means a First Purchaser or any warehouser, shipper or freight forwarder engaged by Philip Morris mternational 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 ofPhilip 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 ofPhilip Morris using tobacco either produced by or sold by PMlip 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.

"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 PMlip 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 Β to this Agreement.

"Due Diligence Information" shall have the meaning ascribed to it in the EC Compliance Protocols, attached as Appendix Β 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 Intemational; 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.

'Tirst Purchaser" means any Person, other than an Affiliate of Philip Morris International, to whom Philip Morris International directly sells a quantity ofPhilip Morris Cigarettes in excess of2,500 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 Β to this Agreement

"Fiscal Compliance Policy" shall have the meaning ascribed to it in Section 2.01 of this Agreement.

'Tollow-up Due Diligence" shall have the meaning ascribed to it in the EC Compliance Protocols, attached as Appendix Β to this Agreement.

"Future Cooperation Agreement?" shall have the meaning ascribed to it in Section 13.14 of this Agreement.

'Identification Markings" means codes and markings on Philip Morris Cigarette packaging placed on that packaging by Philip Morris Internanonal 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 mternational 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 Β 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.

"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 to 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.

'Tarticipating Member States" shall have the meaning ascribed to it in me Preamble of this Agreement . - - — 'Terson" means an individual, corporation, partnership, limited habiUty company, association, trust or other entity or organization, Mcluding a government or poHtical 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 mdirect 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, mcluding outside attorneys. .

"Philip Morris International" means Philip Morris International Inc. and its controlled subsidiaries, including without limitation PMlip Morris Products Inc., Philip Morris Duty Free Inc. and PMlip Morris World Trade SARL.

"Released Claims" shall have the meaning ascribed to it in Section 9.01(b) of tMs Agreement.

"Released Persons" shall have the meaning ascribed to it in Section 9.01(a) of tMs Agreement. -·....

"Releasing Persons" shall have the meamng ascribed to it in Section 9.01(a) of tMs Agreement.

"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 Β to this Agreement.

"Representatives of the Relevant Administrations" means OLAF or other authorized representatives duly designated by the Relevant Adrninistrations.

"Request for Termination" shall have the meaning ascribed to it in the EC Compliance Protocols, attached as Appendix Β to this Agreement.

"RetailDemand" 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 Β 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 thatParticipating 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.

"Subsequent Purchaser" means any Person and such Person's Affiliates, other than an Affiliate ofPhilip Morris, who acquires more man 1,000 Master Cases ofPhilip Morris Cigarettes annually from sources other than PMlip Morris International.

"Sufficient Evidence" shall have the meaning ascribed to it in the EC Compliance Protocols, attached as Appendix Β to this Agreement

"Supplemental Payments" means the payments by Philip Morris International that are to be made, without regard to fault ™ 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 estabhshing 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 deBned in Article 3 of Council Regulation (EEC) No. 2913/92 estabhshing 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 estabhshing 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 Β 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.

"Vice President for Compliance Systems" shall have me meaning ascribed to it in the EC Compliance Protocols, attached as Appendix Β 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 Internatonal'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 Β 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 Adrninistrations 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 Β 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 Phihp Morris International with a statement clearly describing the areas where OLAF reasonably believes that Philip Morris International is failing to perform its obHgations under the EC CompHance Protocols or the Tracking and Tracing Protocols, OLAF's reasons for that beHef, and what measures OLAF beUeves Phihp 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 Phihp Morris International with a Statement of Non-Compliance at any other time it reasonably believes that Phihp 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 Phihp Morris Cigarettes.

(d) Within 30 days of receiving a Statement of Non-Compliance, under subsections (b) or (c) above, Phihp Morris International must provide OLAF with a written response. Thereafter, authorized representatives of Phihp Morris International and the European Commission shall meet and confer arid attempt to resolve in good faith any dispute relating to the Statement of Non-Comphance. If the dispute has not been resolved within 60 days of Phihp Morris mtexnatiohal receiving a Statement of Non-Comphance, 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 Phihp 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 Phihp Morris International to permit OLAF to conduct an audit of Phihp 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 Phihp 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 Phihp Morris mternational 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)....., Jn.any proceeding brought under Section 2.02(d), the Arbitrator may

issue a Compliance Order or an Audit Order to Phihp Morris International only when it has been proven by the greater weight of the evidence that (i) Phihp Morris International has materially failed to adhere to the EC Compliance Protocols and/or the Tracking and Tracing Protocols, (ii) such failure was

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

Ανή-Contraband and Ανπ-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 ^traduction, 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 Phihp Morris Intemational 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 Phihp Morris Cigarettes, Phihp 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 Phihp 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 Parry involved in the dispute may refer the dispute to the Arbitrators) in accordance with Section 12.02 of this Agreement.

ARTICLE 4

Ανή-Contraband and Aiot-Counterfeit Cooperation

Section 4.01. Contraband and Counterfeit Seizures.

Subject to the limitations in subsections (k)-(u) below, for seizures of Cigarettes bearing Phihp Morris Trademarks by the Member States after the Execution Date, the Parties agree to the foUowing procedures:

(a) Within 30 days after notification to OLAF ofa seizure by a Member State of five Master Cases or more of Cigarettes bearing Phihp Morris Trademarks, OLAF may provide Phihp Morris mtemational 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) Phihp 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 Phihp Morris International must examine.

(c) Within 30 days after the inspection of the seized Cigarettes described in subsection (b) above, Phihp Morris International shall provide a written response to OLAF stating whether the Cigarettes are Phihp 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 Phihp Morris International to be Counterfeit Phihp Morris Cigarettes, its response shall include documentation and examination results demonstrating that conclusion. The detennination as to whether Cigarettes are

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 Phihp Morris Cigarettes manufactured after January 1,2004, Phihp 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 rnanufacture of the seized Cigarettes;

(iii) the country of intended destination for the seized Cigarettes;

(iv) any mtervening 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 Phihp 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)......Phihp Morris International shall make a Supplemental

Payment to compensate the EC andme Partidpating 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 Phihp Morris Cigarettes been legally distributed for retail sale in the Participating Member State by

which the Cigarettes were seized as set forth in Appendix E, which shall be updated by the Relevant Achmhistrations upon notice to Philip Morris mternational 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 Phihp Morris Cigarettes seized, when added to the number of Contraband Phihp 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 Siqjplemental Payment shall include ah additional amount equal to four tunes 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 ihe EC and the Partitipating Member State by which me 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 deli vered reasonably in accordance with the requirements of subsection (a) above, for seizures of Contraband Phihp Morris Cigarettes after the Execution Date by a Non-Participating Member State, the response of Phihp Morris International shall also include a Supplemental Payment calculated as follows:

(i) Phihp Morris International shah 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 Phihp. 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 Phihp Morris Cigarettes, and

(ii) If the Contraband Phihp Morris Cigarettes seized, when added to the number of Contraband Phihp 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, Phihp 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

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 Phihp Morris International and such payments, if due, shall be made even though Phihp Morris International shall have comphed in ah respects with its obligations under this Agreement relating to anti-contraband efforts and initiatives.

(i) The Parties recognize and understand mat the mere fact of seizure of Contraband Phihp Morris Cigarettes at any point in the distribution chain does not, in and of itself, autoriiatically implicate Phihp Morris International, or the First Purchaser to whom the seized Phihp 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 Phihp Morris International as to whether the seized goods are Counterfeit Phihp Morris Cigarettes or Contraband Phihp Morris Cigarettes, OLAF shah reply in writing to Phihp Morris Intemational detailing the basis for the dispute within 60 days after receiving the response referred to in Section 4.01(c), and thereafter Phihp 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 Phihp 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 Phihp 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 facihty as to whether the Cigarettes are Contraband Phihp Morris Cigarettes or Counterfeit Phihp 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 facihty shall be designated by mutual agreement of the Parties on the ExecutionDate.If a dispute arises with respect to the selection of the independent laboratory or facility, such dispute shah 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, Phihp Morris mternational shall have no obhgation to make Supplemental Paymentspursuant to subsections (f) and (g) above, and Contraband Phihp 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:

(i) the notice of seizure described in subsection (a) above has not been dehvered reasonably in accordance with the requirements of subsection (a) above;

(ii) Philip Morris mternational 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 Phihp 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 Phihp Morris Cigarettes were manufactured prior to January 1,2004;

(v) the Contraband Phihp Morris Cigarettes were stolen by a third party and Phihp Morris International can reasonably demonstrate that such theft has occurred;

(vi) the Contraband Phihp 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 Phihp Morris Cigarettes were seized by a Member State and Phihp Morris International can reasonably demonstrate that such Contraband Phihp 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.

(1) 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 deterrnination 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.

(m) If a Member State or the EC accepts a Supplemental Payment in regard to a particular seizure of Phihp Morris Cigarettes and later collects duties or taxes or the monetary equivalent from Phihp Morris in regard to that particular seizure, the Member State or the EC shah promptly refund to Phihp 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 weU 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 Phihp 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 Phihp 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 Phihp 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 Phihp Morris International and any such seizures shah not be counted against the Baseline Amount for the purpose of any other calculation under subsections (f) or (g) above.

(ii) Notwithstanding subsections (hi) and (iv) below, after adjustment of the Baseline Amount in accordance with subsection (s) below, Supplemental Payments shall be payable by Philip Morris mtemational 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 shallbe counted against the Baseline Amount for the purpose of any other calculation under subsections (f) or (g) above, begmrjing 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.

(hi) 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 Phihp Morris International

ΦΕΚ 36

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 hi subsection (A) above, but the incidence of Contraband Phihp 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 Phihp 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 Phihp Morris International and any such seizures shah 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).

(ρ) 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 Phihp Morris Cigarettes are seized in a New Member State and the amount of those Contraband Phihp Morris Cigarettes when added to the number of Contraband Phihp 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, Phihp 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 Phihp 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), Phihp 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 shah be amended or recalculated. If no agreement is reached, the Arbitrator, pursuant to Section 12.02 of this Agreement, shah determine the appropriate amendment to, or recalculation of, the Baseline Amount, with due regard to the factors set forth in Appendix K. No payments shah be made under subsection (f)(ii), however, until an amended Baseline Amount shah 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, Phihp 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, mcluding, if necessary, amendment or suspension of Phihp Morris mternational's obhgations under Article 4 asto that New Member State. If no agreement is reached, the Arbitrator, pursuant to Section 12.02 of this Agreement, shall detennine the appropriate amendment or rehef, with due regard to the factors set forth in Appendix K.

(u) If at any time, a Party asserts that there is a serious persisting problem concerning seizures of Contraband Phihp Morris Cigarettes in a Participating Member State who was a Member State on January 1,2004, which could bring about serious imbalances in the apphcation of the Agreement, Phihp Morris International and the European Community shah meet and discuss as soon as reasonably possible any appropriate measures to insure the continuing functioning of the Agreement, mcluding, if necessary, amendment of Phihp Morris International's obhgations under Article 4 as to that Member State. If no agreement is reached, the Arbitrator, pursuant to Section 12.02 of this Agreement, shall detennine the appropriate amendment or rehef, with due regard to the factors set forth in Appendix K.

For purposes of this Section, it shall he presumed that a serious persisting problem exists if Phihp Morris International can reasonably demonstrate that:

(i) For a substantial period of time, seizures in a Membef 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 Phihp Morris Cigarettes in the aforesaid Member State is substantially attributable to a failure on the part of Phihp 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 obhgations 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, mamtain and be bound by the commercially reasonable practices and procedures with respect to the tracking and tracing of shipments ofPhilip Morris Cigarettes after the Execution Date as set forth in the "Tracking and Tracing Protocols" attached as Appendix D.

Section 5.02. Certification of Compliance with Tracking and Tracing Protocols.

(a) Each year, on the anniversary of the Execution Date, Phihp 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 shah 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 Phihp Morris International and the European Cornmission shall meet to confer and assess the functioning of the Agreement and its Protocols. At that meeting, Phihp 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 Cormnission and Phihp Morris International may communicate to each other concerns relating to any Party's activities in connection with their commitments and obhgations 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 meamngful assistance to the Participating Member States and the EC in curtailing the smuggling and illegal d^tribution 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 obhgations 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.

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 Estabhshing 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 liabihty, ah matters in which or in respect of which the following persons seek or rmght 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 Achninistrations hereby represents and warrants to Phihp Morris International, and Phihp Morris International hereby represents and warrants to each of the Relevant Admirristrations 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 bmding agreement of such Party, enforceable in accordance with its terms.

ARTICLE 9 Release and Dismissal of Claims

Section 9.01. Release.

(a) The provisions of Sections 9.01(a), (b), and (cj shaU mure to the benefit ofPhilip Morris (the "Released Persons") and, consistent with Relevant Law, be bmding upon each of (i) the Relevant Aoimmstrations; (ii) their respective political subdivisions; (hi) instrumentalities and agencies of (i) and (ii); and (iv) successors and assignees of all of the foregoing (coUectively, the

■'Releasing Persons"). The release provided for in this Section 9.01 shall cover companies acquired by or merged into Phihp 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) CmtheSignatmeDateoftheAgreem^

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, habihties, costs, expenses and attorneys' fees, mcluding 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 (coUectively, 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 then attorneys, to the fullest extent permitted by law, from any and all civil claims, charges, demands, actions, suits, causes of action, habihties, costs, expenses, fees, and attorneys' fees, including without limitation, all civil claims for compensation or monetary damages sought in civil

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 habihty on which such claims are, or could be, asserted.

Section 9.02. Dismissal Of Claims.

The Parties shah promptly seek and obtain dismissal with prejudice and without costs of all pending actions and/or appeals, as they relate to Phihp Morris, and to the extent that they are related to the matters at issue in the Litigation, mcluding any proceeding by Phihp 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 Η to this Agreement.

ARTICLE 10 Setoff

Section 10.01. Right of Setoff

(a) In addition to its rights and obhgations under Article 7 and the releases set forth in Article 9 of this Agreement, Phihp Morris mternational shah have the right to set off against any and ah amounts otherwise due and.payable to the Relevant Adrninistrations under this Agreement, the amount of any damage, loss, liability, tax, custom duty, expense or non-criminal penalty actually incurred, payable or suffered by Phihp Morris with respect to, resulting from, or arising out of, actions, suits, or proceedings, other than the Litigation (whether civil proceedings, admmistrative proceedings, tax proceedings, or civil claims made within camnnal proceedings) brought against Phihp Morris by (i) the EC, (ii) any Member State, (in) the political subdivisions of any Member State; (iv) instrumentalities and agencies of (i), (ii), and (in); and (y) successors and assignees of all of the foregoing, which seek redress as a result of the sale, distribution, storage, or shipment of Contraband Phihp Morris Cigarettes before the Execution Date or, for Subsequent Participating Member States, their respective Signature. Dates.

(b) Upon any Party learmng of Q) the existence of any actual claim, action, suit, or proceeding, or (h) 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, 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 Phihp Morris International having a right to setoff under this Section 10.01, Phihp Morris international may, upon giving the EC 30 days notice, begin paying any funds which are due to tile Relevant Administrations under this Agreement into an mterest-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 Admimstrations. Payment of funds into escrow by Phihp Morris International pursuant to this subsection (c) above shah not be deemed a breach of this Agreement.

(d) In each instance where Phihp Morris International pays funds into escrow as set forth in Section 10.01(c), Phihp Morris International and the EC shah 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 shah 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 Arbitrators), the EC must demonstrate that Phihp Morris International does not have a reasonable basis to support its behef that it is mcurring, or may incur, damage, loss, liability or expense that may be eligible for setoff pursuant to subsection (a) above. If the Arbitrators) determines that Phihp Morris International does not have a reasonable basis to place the aforesaid funds into the escrow account, the Arbitrators) shah 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 tile Relevant Administrations or by claiming amounts held in escrow, Phihp Morris International shall provide at least 30 days notice to the European Commission of its intention to do so. Upon receipt of such notice, Phihp Morris International and the European Commission shah immediately make a good faith effort to agree as to whether setoff is appropriate and, if so, what tile amount of the setoff should be. If Phihp 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

ΦΕΚ 36

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 ofPhilip Morris International to pay funds into escrow in accordance with subsection (c) above. Upon a ruling by the Arbitrators) 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 Arbitrators) that Philip Morris International has established a right of setoff, Phihp 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 ofAmount 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 Phihp 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 mternational that the claim, action, suit, proceeding, assessment or demand should be dismissed because its assertion contravenes the provisions of this Agreement or otherwise, and

(hi) 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

Morris International shall be discharged of its obhgations 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, Phihp Morris mternational's obhgations 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, Phihp Morris international shah be discharged of its obhgations 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 (hi) 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 apphcable threshold set forth in (1) and (2) above, Phihp Morris International's obhgations 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; (hi) 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 1Ϊ, nothing in this article shah reduce or otherwise affect the other duties of Released Persons to any Releasing Person or the requirements of Relevant Law, nor shah it reduce or otherwise affect the duty of the participating Released Person's obhgations under this Agreement, which shall continue in full force and effect during and after any dispute resolution proceedings.

ARTICLE 11 Termination

Section 11.01. Termination.

(a) This Agreement shah 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 ah Released Persons shah 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 shah 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 shah 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 shah have the right to tenninate this Agreement if:

(i) A claim, action, suit, proceeding, assessment or demand that would, if successful, entitle Phihp Morris International to exercise its right to setoff under Article 10 has been made by a Participating Member State in Which the sales ofPhilip Morris Cigarettes are equivalent to or are more than 10 percent of the Phihp 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 adrninistrative 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 Phihp Morris Cigarettes are equivalent to or are more than 10 percent of the Phihp 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 adrninistrative actions with the same effect in those Participating Member States.

(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 Stale; (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 shah become effective 120 days from receipt of notice unless another Party challenges the notice of termination pursuant to Section 12.02 of this Agreement.

(i) 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 shah terminate in its entirety unless the precipitating cause of the termination is clearly confined in its apphcation to a particular Member State or particular Member States, in which case, the Arbitrators) shah determine the scope of the^eimination 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 shah take its place without any further action being necessary by the Parties, such agreement remaining in effect until the Eviration Date, consisting of (1) the Parties' rights and obhgations under Articles 7,9 and 12 of this Agreement, (2) the Parties' rights and obhgations in effect on the date of termination of the Agreement under Article 2 and Appendix Β of this Agreement, and (3) the Parties' rights and obhgations in effect on the date of termination of the Agreement under Article 5 and Appendix D of this Agreement. AH other provisions of die Agreement shah 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 shah meet and attempt in good faith to reach another agreement between the Parties covering the same subject matter addressed herein.

"ARTflSLE 12 Dispute Resolution

Section 12.01. The Role of the European Court ofFirst Instance and the European Court of Justice.

(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, shah 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 ofsuch 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 shah be the law of the State of New York, without giving effect to choice of law or conflict of law docteme. 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 ofFirst 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 Phihp 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 (mcluding 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 Phihp 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

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, ah 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 ah 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;

(hi) If the European Corrnnission 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 Arbitrators) have ruled that the claim is withm 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 (mcluding a court or tribunal of the political subdivisions of the Member States)_r such proceeding should be suspended and referred or tiahsferred 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, ah 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 ah 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) Subj ect to Relevant Law, tire Participating Member States, as well as their political subdivisions, instrumentalities, agencies,

successors and assigns, agree mat 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 Parries 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 UNC1TRAL 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-hsted-arbitrator in Appendix J shah be deemed to be the Arbitrator for the purposes of that dispute. Shouldthe Arbitrator be permanently— unable to hear the Parties' disputes, the next-highest-hsted 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 shah be conducted in the Enghsh language in Brussels, unless otherwise agreed by the Parties to the dispute. Consistent with Relevant Law, and any applicable law governing Phihp Morris' disclosure obhgations the arbitration proceedings shall be confidential to the extent possible, and the Parties shah 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^) shall provide the rules of the proceedings and shah issue a written opinion stating the reasons for the rehef granted. The arbitration proceedings, and the enforcement of any arbitral order or award, or an action to compel arbitration, shah 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 Arbitrators) shah be exclusively enforceable in the New York State Supreme Court (New York County), and any action to compel arbitration shah 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 Arbitrators), 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.

(c) Notwithstanding the foregoing, for any dispute between the Parties mvolving Article 3, Section 4.01(f) 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 shah, 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 Phihp 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.

Ah notices, requests and other .communications to any-Party hereunder shall be in writing (mcluding facsimile transmission) and shall be given to the Director of OLAF and the General Counsel ofPhilip Morris mternational.

Section 13.02. Weavers.

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.

Ah costs and expenses incurred in connection with this Agreement or the Litigation shah be paid by the Party incurring such cost or expense.

Section 13.04. Nature of Payments.

The Parties agree thai 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, civilor 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.

Exceptas provided for in Section 9.01(a) of this Agreement, the provisions of this Agreement, mcluding the obhgations set forth herein, shah be binding upon and inure to the benefit of the Parties hereto and their respective successors and assigns.

ΦΕΚ 36

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 obhgation of any Party under this Agreement would violate Relevant Law, the Party shah be excused from performing such obhgation only to the extent that performance would violate such law and shah not incur any habihty 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 shah 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 wih 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 shah be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. This Agreement shah 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 ah 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.

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 Phihp Morris International relating to the adnnnistration 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 shah 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 A(hninistrations or OLAF pursuant to the Agreement shah 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 shah any such information be used or provided to tiiird parties for any other purpose without prior written consent by Philip Morris taernationai, 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 ('Tuture 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 Phihp Morris International may request of the EC that it receive treatment under this Agreement at least as relatively favorable as the overall terms

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 Agreementin the appropriate form and dehvering a counterpart thereof to Phihp Morris mternational 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 (h) ifme 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.

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 nowers and has been duly authorized by all necessary action on its part;

This Agreement constitutes a valid and bmdmg Agreement of the European Community and is enforceable in accordance with its terms.

Michel Petite Director General Legal Service European Commission

Fram-Hermann Brimer Director General European Anti-Fraud Office European Comrnission

Date: ^ufo* £q>o£

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 Ml 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

Date: . & h&l&X

be jb

Republique Francaise

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 fufl right and authority to do so;

The execution and performance of tins 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 aO 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 Jerome GRAND D'ESNON, Agent ju die jaire du Tresor,

Directeur des affaires juridiques du ministere de I'economie, des finances et de Γ Industrie de la Republique francaise

* * »

Traduction frangaise /French translation:

Par la presente, le ministre dTEtat, rninistre de I'economie, des finances et de llndustrie de la Republique francaise assure la raise en ceuvre du present Accord au nam de la Republique francaise, et dispose de Fautorite et de la competence requises a cet effet

L'execution et la mise en ccuvre du present Accord par ie ministre d*Etat, niinistre de I'economie, des finances et de rindustrie de la Republique francaise entrent dans ses attributions et out ete dument autorises dans le respect des procedures en vigueur.

Le present Accord constitue un engagement de la Republique francaise et sera applique confonnement i ses stipulations.

FaKaParis,le £ γ AVR- 200^

OAQN^s 0 6 54

Jer6me GRAND D'ESNON Agent jndiciaire du Tresor

Directeur des affaires juridiques du ministere de I'economie des finances et de Vindustrie de la Republique francaise

Four le ministre dEtat,

niinistre de I'economie, des' finances et de I'industrie,

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.

ΦΕΚ 36

Republic of Greece

The Ministry 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

Date: 31 \c^\^oo 4

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

Date:

Portuguese Republic

The Minister of State and Finance of the Portuguese Repubhc hereby executes this Agreement on behalf of the Portuguese Repubhc 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 Repubhc is within its governmental powers and has been duly authorized by all necessary action on its part;

This Agreement constitutes a valid and biding Agreement of the Portuguese Repubhc and is enforceable in accordance with its terms.

Maria Manuela Dias Ferreira Leite, Minister of State and Finance

of the Portuguese Repubhc

Date: '^2eo^-°^ ^

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 aumc>rity 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

\

Date: 28 JON. 2004

Altria Group, Inc., f/k/a Philip Morris Companies Inc., hereby warrants that should any of its direct or mdirect 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 obhgations 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.

APPENDIX A

PHILjP 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 pur 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,

ΦΕΚ 36

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-("C0mpliance 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.

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 clean 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 irfrplement this policy statement should include the following requirements:

(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 transaction&.Many of these . requirements are applicable only to financial institutions and financial services businesses, but others apply to businesses

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.

0. 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 Comp'any policy and compliance efforts.

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 ahd 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

(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

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 pr 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 jaws 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, wilLallow 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 packagincpofOur products or any attempt to falsify invoices or other import documents should promptly report this to the Legal Department.

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

ΦΕΚ 36

APPENDIX Β - EC COMPLIANCE PROTOCOLS

PROTOCOL 1

: General Statement of Ανή-μονευ Laundering / Anti-Smuggling

Compliance Protocols

1.01. Definitions: Except as otherwise defined herein, the terms used in these 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, Phihp Morris International reiterates its ongoing commitment and obhgation to comply with all applicable laws, mcluding 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 Phihp Morris International;

(ii) the handling of payments which are received from customers, licensees, and other obligors in respect ofPhilip Morris Cigarettes; '

(hi) currency porting and record-keeping requirements; and (iv) trade restrictions or prohibitions.

(b) Conduct that is unlawful or that violates Phihp Morris Intemational'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, Phihp 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 Phihp 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 Phihp Morris International terminate sales of Cigarettes to persons, corporations and/or distributors that have been found to be unlawfully or knowingly engaged in the άΊ^^ίΐαη of smuggled products or Money Laundering, (ii) that the Relevant Aarninistrations are in a better position to investigate and prosecute such persons, and to prevent and detect such frauds, and (iii) that Phihp 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 Phihp 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.

PROTOCOL2 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 of2,500 Master Cases ofPhilip Morris Cigarettes per year within or into the Territory of one or more of the Member States or any Designated State, Phihp Morris mtemational shah conduct business only with Approved Contractors.

2.02. Market Demand. Phihp Morris mternational shah sell and m^tribute Cigarettes in amounts that are commensurate with the Retail Demand in the Intended Market of Retail Sale, and Phihp Morris hitemational will refuse to sell Phihp Morris Cigarettes in volumes exceeding that amount.

2.03. Due Diligence.

(a) Phihp Morris International shall undertake Due Diligence With respect to all of its Contractors, or Persons reasonably likely to be engaged by

Philip Morris Mtemational as Contractors (together "Applicants"), in order to satisfy itself that such Persons- are able and committed to honor tile 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 Phihp Morris International shah:

(i) meet with a representative of each Applicant;

(ii) visit the Apphcant's principal place of operations;

(hi) obtain Due Diligence hiformation from each Applicant or other sources;

— (iv) assess and verify each Apphcant's ability and cornmitment

to comply with the objectives and procedures of the EC Compliance Protocols to the extent applicable to it;

(v) assess and verify each Apphcant'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 fohowing information, to the extent that it is reasonably available:

(i) where the Applicant is an individual, information regarding his or her identity, mcluding 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, mcluding 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, mcluding but not limited to the representatives' complete names, and copies of their official identification and/or passports;

(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 Phihp Morris International. This "Sales Plan" shah 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 shah be made, mcluding but not hinited to the complete name and address of the bank, the complete name and address of the account holder, and ah information concerning the identification of the account. In addition to the foregoing information, if the bank account to be used to pay Phihp 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 Phihp 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, Phihp Morris mternational is not satisfied that an Applicant is able and committed to honor the objectives and practices set forth in these EC Compliance Protocols, Phihp Morris International shah refuse to Conduct business with that Applicant.

(e) If, following its Due Diligence, Phihp 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, Phihp Morris International will record that fact and that Applicant shall be considered an "Approved Contractor."

(f) Phihp Morris mternational shah maintain a hst of ah Approved Contractors, which shall be updated every 6 months. *

(g) "FoUow-up Due Diligence" shall be undertaken at least annually for each Approved Contractor, and shah also be undertaken in cases where Phihp Morris .mternational has-been notified by the Approved Contractor of a change in

ownership and/or control of the Approved Contractor. Philip Morris International will require Approved Contractors to promptly notify it of any material change in men ownership or control.

'(h) The fohowing shall constitute Follow-up Due Dihgencefor Approved Contractors by Phihp Morris International:

(i) reiterating to Approved Contractors meh obhgations 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 Phihp Morris Cigarettes for sale or distribution in amounts that are commensurate with the Retail Demand in the Intended Market of Retail Sale and that Phihp Morris International will refuse to sell them Phihp Morris; Cigarettes in volumes exceeding that amount;. _

(hi) reiterating to Approved Contractors Phihp Morris International's commitment to cooperate with the Relevant Administrations, mcluding 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 obhgations.

(i) If, after completing Follow-up Due Diligence, Phihp 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, Phihp Morris International shall refuse to continue conducting business with that entity and that entity shah cease to be an Approved Contractor.

2.04. Approved Contractor Records. Phihp Morris International shah maintain files containing its records of Approved Contractors for five years after creation. These records shall include the fohowing:

(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.

(b) documents obtained by Philip Morris International as part of Approved Contractors' Due Diligence Information;

(c) any mquiries 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 Phihp Morris Cigarettes.

PROTOCOL 3 Approved Contractor Relations

3.01. Contracts with Approved Contractors. To the extent permitted by applicable law, Phihp Morris IntemationaLundertakes to make cojnmercially 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 Phihp 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 Phihp Morris Cigarettes that the First Purchaser purchases FCA Antwerp or similar basis, the First Purchaser shall be required to agree to resell the Phihp Morris Cigarettes using a CD?, CP, 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 Phihp Morris Cigarettes to the delivery point specified in the invoice or to the Intended Market of Retail Sale without the specific prior approval ofPhilip 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 Phihp Morris Cigarettes' packaging.

(c) Legal Compliance. The First Purchaser shall be required to agree to transport and/or resell the Phihp 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

laws designed to combat the laundermg of illegal proceeds. The First Purchaser shall be required to agree to take no action to promote, or facilitate die 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 obhgations under its terms and conditions of sale. The First Purchaser shall be required to agree not to resell the Phihp Morris Cigarettes to any Person or entity whom it knows or has reason to believe to be engaged in any illegal trade. Phihp Morris International shah require the First Purchaser to acknowledge and accept that Phihp: Morris International reserves the right to suspend or terminate any and ah commercial relationships with the First Purchaser, and. in particular to suspend any sales and/or shipments of Phihp Morris Cigarettes to the First Purchaser, if the First Purchaser violates its terms and conditions of sale, including, without hmitation, 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. Phihp Morris International shah require the Approved Contractor to acknowledge and accept in writing that Phihp Morris International intends to cooperate with governmental mquiries into any illegal importation, movement, or sale of Phihp Morris Cigarettes. Towards this end, Phihp Morris International shah make commerciaUy 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 shah be required to agree in writing to expressly authorize Phihp Morris International to disclose the terms and conditions of any sale of Phihp Morris Cigarettes to the First Purchaser in response to a valid and specific governmental mquiry in that regard.

3.02. Investigations by the Relevant Administrations. Phihp 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.

PROTOCOL4

Termination of First Purchasers and Subsequent Purchasers

4.01. Termination of Business Relationships with Approved Contractors.

(a) Phihp Morris International shall terminate business relations with, including the supply of Phihp Morris Cigarettes to, any Approved Contractor upon OLAF providing Phihp Morris International with, or Phihp Morris International otherwise coming into possession of, Sufficient Evidence that such Approved Contractor has, following the Execution Date, unlawfully or knowingly

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 Phihp Morris International with, of Phihp Morris mternational otherwise comes into possession of Sufficient Evidence that a Subsequent Purchaser has, following the Execution Date, unlawfully orknowingly engaged in the sale, distribution, storage, or shipment of Contraband Cigarettes, Phihp Morris International will request the First Purchaser of Phihp Morris Cigarettes that sells Phihp Morris Cigarettes to such Subsequent Purchaser to cease supplying Phihp Morris Cigarettes to such Subsequent Purchaser, if such Subsequent Purchaser is ariirect customer of the First Purchaser. In the event that the First Purchaser refuses ίο honor such request, Phihp Morris International will cease supplying Phihp 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 Phihp Morris International shah request that the First Purchaser make such commercially reasonable efforts as may be required to terminate its direct and/or indirect supply of Phihp 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 Phihp Morris Cigarettes to suchHSubsequent Purchaser, Phihp Morris International will cease supplying Phihp Morris Cigarettes to such First Purchaser, who will thereafter be a Blocked Contractor.

(d) Phihp Morris International shah maintain a list of Blocked Contractors. Unless otherwise agreed to by Philip Morris International and OLAF, a Blocked Contractor shah remain so designated for 5 years after the termination of Phihp Morris International's business relationship with such Blocked Contractor and no such Blocked^CQntractor will be permitted to conduct business with Phihp Morris International or any Affiliates thereof, directly or mdirectly, relating to the purchase, (hstribution, shipment, or storage of Phihp 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.

ΦΕΚ 36

4.02. Request for Termination of Business Relationships with Approved Contractors.

(a) If OLAF believes that an Approved Contractor or Subsequent Purchaser has, fohowing the Execution Date, unlawfully or knowingly engaged in the sale, distribution, storage, or shipment of ContrabandQgarettes 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 Phihp Morris mternational 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, Phihp Morris International shah provide a response to OLAF reflecting its determination. In the event that Phihp Morris mternational disagrees with OLAF's conclusions and rejects the Request for Termination, it shah provide the reasons for that decision. If in that event OLAF, after corisidering Philip Morris International's response, remains of the view that the supply ofPhilip Morris Cigarettes to the Approved Contractor and/or Subsequent Purchaser should be terminated, OLAF and Phihp Morris International shah 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 Phihp 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 Phihp 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 Phihp 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 Phihp 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

has refused to cooperate with lawful requests to do so made by the Relevant Adrninistration(s) in relation.to such seizures;

(hi) any number of seizures have been made of Contraband Phihp 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 nrihion Cigarettes, and such person has refused to cooperate with lawful requests to do so made by the Relevant Administrahon(s) in relation to such seizures; or,

(iv) beginning one year after the Execution Date, any number of seizures have been made of Contraband Phihp 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 man 500 million Cigarettes, and such person has refused to cooperate with lawful requests 4o do so made by the Relevant Administration® in relation to such seizures.

PROTOCOL 5

ACCOUNTABILrTY OF PAYMENTS for qgarettes 5.01. Acceptable Forms of Payment.

(a) Phihp Morris International shah adhere to its anti-money laundering pohcies, which are designed to ensure that it receives payment for Phihp Morris Cigarettes solely from legal sources. The pohcies developed by Phihp Morris International to track and monitor all payments made for Cigarettes sold and/or distributed by Phihp Morris International shah 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 pohcies relate to transactions with Approved Contractors relating to the sale, storage or distribution of Phihp Morris Cigarettes:,

(i) acceptable forms of payment shah be hmited 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 Phihp 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 Phihp Morris International is transacting is located; and,

(C) cash, but only where the nature and scale of the busmess of the Person wim

transacting (e.g., a small retail outlet) are such that it is not commercially feasible under local conditions tor' 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 me invoice;

(iii) ah payments for Phihp Morris Cigarettes must be made by the invoiced customer or an Affiliate of that customer disclosed to Phihp Morris International in accordance with Protocol 2.03(c)(vi);

(iv) payments for each invoice or group of invoices due shah 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 Phihp 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, Phihp Morris International shah provide OLAF with the foUowing:

(i) me hst of Approved Contractors and Blocked Contractors as of the date of the request;

(ii) sales volumes to Approved Contractors after January 1,

2004;

(hi) 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 Phihp Morris Cigarettes within the previous 12 months that had such domestic market as the Intended Market of Retail Sale; and

(iv) information relating to the storage and shipment ofPhilip 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.

j 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 OLAFseeks information regarding other Phihp Morris Cigarettes that may be in transit, Phihp Morris International agrees to make commercially reasonable efforts to promptly (Le. as soon as possible during the next business day) provide, at OLAF's request, the information hsted in 3.03(a) of the Tracking and Tracing Protocols, to the extent available, for ah shipments of Phihp Morris Cigarettes to the same First Purchaser associated with the seized Contraband Phihp Morris Cigarettes for a period encompassing three months prior to and three months subsequent to the date of shipment of the seized Contraband Phihp Morris Cigarettes.

PROTOCOL 7

Creation of a Philip Morris International Compliance Officer 7.01. The Compliance Officer.

(a) Phihp Morris International shall create an internal position of Director for Anti-Contraband and Anti-Money Laundering Compliance (the "Vice President for Compliance Systems"), who shah report directly to senior management of Phihp Morris International.

(b) The Vice President for Compliance Systems shah have the authority and be responsible for:

(i) reviewing Phihp Morris International's practices relating to the sale, mstribution, storage, and shipment of Philip Morris Cigarettes;

(ii) urxdertaking and executing any and ah of the commitments made under this Agreement by PhMpT&orris International;

(iii) overseeing compliance by Phihp Morris mternational with Phihp Morris International's Fiscal Compliance Policy and the Agreement;

(iv) developing the education and trairjing programs for employees relating to the sale, m^bution, storage and shipment of Phihp Morris Cigarettes in accordance with Phihp Morris International's Fiscal Compliance Policy and the Agreement, which are provided for in Protocol Π;'and

(v) serving, (iirectly and/or through appropriate staff, as a contact point for rommumcation between Phihp Morris International and the EC, the Participating Member States and OLAF.

PROTOCOL8

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 Phihp Morris Cigarettes kept in stock as of the date of the request in tax and customs warehouses in the possession, custody or control of Phihp 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 Phihp 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, Phihp Morris International agrees to notify customs authorities in the country of departure (electronicahy where the appropriate infra tracture exists) at the time of departure from Phihp Morris International. The notification shall include:

(i) the date of the shipment from the last point of Phihp Morris Internationales physical custody of the Phihp Morris Cigarettes;

(ii) details concerning the Phihp Morris Cigarettes shipped (brand, amount, warehouse);

(hi) the intended shipping destination;

(iv) the identity of the Person to whom the Cigarettes are being shipped;

(v) the mode of transportation, mcluding the identity of the transporter;

(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 aumority relating to the sale, (iistribution, storage, and shipment ofPhilip Morris Cigarettes, or the establishment of pohcies and business practices relating thereto, shall be delegated by Phihp Morris International only to Phihp Morris International employees that Phihp Morris hitemational reasonably beheves, after the exercise of due dihgence,_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 ofPhilip Morris International's employees whose activities relate to the sale, distribution, storage, and shipment ofPhilip Morris Cigarettes shah take into account such employees' performance in connection with these Protocols.

PROTOCOL 11 Training Programs

11.01. Training Programs. Philip Morris mternational shah design training programs for its employees whose activities involve the sale, distribution, storage, and/or shipment of Philip Morris Cigarettes, or the establishment of pohcies and business practices relating thereto. The curriculum for such framing programs shah be notified to OLAF. These employees shall, at least once a year, either conduct or participate hi training programs designed to educate and inform Phihp Morris Ihternational's employees about their compliance obhgations 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 Phihp Morris Intemational employees as part of the ttaining programs described in this Protocol.

PROTOCOL 12 Monitoring and Auditing Systems

12.01 - Development of Monitoring and Auditing Systems. In conjunction with the Law Department and the Finance Department ofPhilip Morris mternational, 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 responsiblefor implementing these systems in their business units.

PROTOCOL 13 Reporting of Suspicious Actxvity

. 13.01. Reporting Requirements. Phihp Morris International agrees to rexmirjLthat if an employee of Phihp 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 foUowing Persons: his or her supervisor, the department head, a Fiscal Compliance Coordinator, the Vice President for Compliance Systems, or the Law Department of Phihp Morris International. To the extent permitted by law, the identity of the reporting employee will be kept confidential, if requested by the individual. Phihp Morris mternational shall establish the means so that these reports may be made anonymously.

13.02. Reporting System. The Vice President for Compliance Systems shah create, in conjunction with the Law Department and the Finance Department of Phihp Morris International, a Reporting System. Such Reporting System will allow employees of Phihp Morris International to anonymously report, by any means mcluding email, regular mail, or telephone:

(a) any suspicious transactions, mcluding, but not limited to, any suspected involvement ofPhilip Morris hitemational employees or Approved Contractors in:

(i) the illegal sale, distribution, storage, or shipment of Contraband Phihp Morris Cigarettes;

(ii) any related illegal activity; or

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

(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 Phihp Morris International employee cannot verify that the transaction has been reported, or when the Phihp 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 mmvidually, 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 shah consult with the management of the relevant business unit involved regarding any disciplinary or other action to be taken. ¹

13.04. Cooperation of Philip Morris International Employees. Phihp Morris International shah 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 availaBIe'tb ah Phihp Morris Mternational employees on Phihp 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

(hi) 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 tire Execution Date, Phihp Morris International shall revise its

ΦΕΚ 36

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 consohdate these pohcies into one document (the 'International Compliance Policy''). As new situations arise, Philip Morris international shah make changes and modifications as necessary to the hitemational Comphance Policy, and shah inform OLAF thereof In the event of any inconsistency between the mternational Comphance Policy and these Protocols, the latter shall prevail.

14.03. The International Comphance Pohcy shall be made available to all Phihp 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 mternational Comphance Policy; and

(ii) a link to the Reporting System,

APPENDIX C

Philip Morris mternational (ΡΜΓ) 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 shah make a lump-sum payment in the amount of250% of the Base Payment.

3. On the first armiversary of the Execution Date, PMI shall make apayment 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 shah 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 shah 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 prececiing year in the domestic markets of the states that were Member States of the European Union on January 1^st, 2004, represented by entity(ies), including PMI and its Affiliates, that are, at

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 1^st, 2004, shah 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 1^st, 2004. An anti-contraband / anti-counterfeit agreement shah 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; (hi) EC Comphance Protocols of the type specified in Appendix Β 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. TheAdjusted Index Percentage for any given year is derived from the Index Percentage for that year using the following formula: '

Index Percentage Adjusted Index Percentage

0- up to but not mcluding 5% 0%.

5- up to but not including 15% 12%

15- up to but not mcluding 25% 24%

25- up to but not mcluding 35% 36%

35- up to but not mcluding 45% ·· 68%

45- up to but not including 55% 84%

55- up to but not mcluding 65% 92%

65- up to but not including 75% 96%

75- up to but not mcluding 85% 98%

85-uptobutnotmclu(ling95% 99%

95- up to but not including 115%. 100%

115- up to but not mcluding 140% 101 %

140- up to but not mcluding 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 PMTs 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 tban,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

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. m me event that, at any ti^

Execution Date, PMTs financial condition shah have substantially deteriorated, as to give the Relevant A(hnimstrations reasonable and substantial doubt as to PMTs ability to make the payments due on the sixth through twelfth anniversaries of the Execution Date, the Relevant Admimstrations- shah so notify PMI, and PMI thereafter shall obtain a bank guarantee or other equivalent security in favor of the Relevant Adrninistrations for said payments. However, PMI shah not be obligated to obtain a bank guarantee or the equivalent security if it is commercially impracticable to obtain such bank guarantee or security.

APPENDIX D - TRACKING AND TRACING PROTOCOLS

PROTOCOL I General Statement of Tracking and Tracing

1.01. Scope and Purpose of Protocols.

(a) Philip Morris mternational recognizes that giving the Relevant Admini strations the effective and timely ability to track and trace sales of Phihp Morris Cigarettes is an important component of its commitment to fight the trade in Contraband Phihp Morris Cigarettes. Phihp Morris International is committed to a continuous process of dialogue and cooperation with the Relevant Aainimstrations to evaluate and address the trade in Contraband Phihp 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 Adnmiistrations with substantial additional assistance in their efforts to combat, the trade in Contraband Phihp Morris Cigarettes.

(b) These Tracking and Tracing Protocols set forth the basic tracking and tracing procedures that the Parties believe are appropriate in tight 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 Phihp 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 milhon 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 apphcability of the Tracking and Tracing Protocols by the preceding sentence exceeds one billion Cigarettes, the European Commission and Phihp Morris hitemational shah meet and confer to reassess the apphcabihty of these Tracking and Tracing Protocols to promotional packaging, and, unless otherwise agreed at or following that meet and confer, thereafter, these provisions shah 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.

PROTOCOL2 Pack & Carton Marking and Coding

2.01. Labeling for Intended Market ofRetail Sale.

(a) The Parties agree that Philip Morris mternational shall make commerciaUy reasonable efforts to mark Packs and/or Cartons of Phihp Morris Cigarettes with markings, codes or other mformation which permit a determination of the Intended Market of Retail Sale when such Packs or Cartons have those markets identified in Exhibit A-l as the Intended Market of Retail Sale. .... · . .

(b) m the event that Phihp Morris International begins selhng m market not covered by Protocols 2.01(a) or 2.02, Phihp Morris International shah notify the Representatives of the Relevant Administrations as to the markings that Ehilip Morris mternational shall undertake to apply. Such markings shah meet me requirements contained in Protocol 2.03, below, and Z01(a), above, and such new market shah be added to the Exhibits of this Appendix, if applicable.

(c) On the Execution Date, Phihp Morris shah provide OLAF with 20 copies of a manual designed to allow for the determination of the Intended Market of Retail Sale for all Phihp Morris Product marked in accordance with Protocol 2.01(a), above. Phihp Morris shah update such manuals and Exhibits A-l 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 then Intended Market of Retail Sale those markets identified in Exhibit A-2 shah bear the labeling identified in Exhibit A-2, and that no additional, market-specific rnarkings or other labeling shall be required by this Agreement in respect of identifying the Intended Market of Retail Sale.

(b) PhiUp 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 iriformation would permit a determination of the Intended Market of Retail Sale of such Packs or Cartons. Phihp Morris International shah provide notice of such new labeling to Representatives of the Relevant Aonhmstrations prior to the introduction of any Phihp Morris Cigarettes bearing such new labeling into the retail channel in the Intended Market of Retail Sale, and immediately upon Phihp Morris International becoming aware that any Phihp Morris Cigarettes bearing such new labeling are otherwise no longer under the control of Phihp Morris mternational.

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 . .

Exhibit A-3 as of the Execution Date and the exception of Protocol 2.Q5, Philip Morris International shah mark all Packs or Cartons with embossed codes or other roarings to allowfor the complete identification of: .

(a) the date of manufacture of the product,

(b) the manufacturing facihty 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, Phihp Morris International and the Representatives of the Relevant Administrations shah 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. Phihp Morris mternational shall provide the Representatives of the Relevant Administrations with updates, if any, to Exhibits A-l and A-2. Phihp 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, mcluding 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 Phihp 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 Phihp Morris International acquires new manufacturing facilities which would be subject to Protocol 2.03, Phihp Morris International shall make commerciahy reasonable efforts to implement the requirements of Protocol 2.03 no later than 12 months , after the acquisition.

PROTOCOLS Master Case Labeling and Scanning

3.0L Master Case Labeling

(a) To the extent required by the schedule attached as Exhibit Β and the terms of Protocol 3.01(b), and 3.01(c), herein below, Phihp Morris mternational and/or its Contractors shall mark Master Cases with unique, machine scannable barcode labels prior to^seHing those Master Cases to a First Purchaser. The labels shah contain both the barcode and a human readable translation (i.e., spelled out in letters and numbers) of the barcode and shah be affixed to Master Cases with "non-peelable" adhesive. The labels shah permit Phihp Morris mternational to "

ΦΕΚ 36

link the code to product niformation, mcluding the date of manufacture of the product, the manufacturing facihty 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, mcluding, 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 Phihp 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, Phihp Morris International shah maintain an ongoing program of research and development concerning methods and technologies for improving the security of Master Case marking. Phihp 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, Phihp Morris hitemational 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, Phihp Morris International may update its Master Case Labeling with such technologies, ensuring that at ah 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), Phihp Morris International and/or its Contractors shah 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 Phihp 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.

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 ah shipments of PMlip 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,

(hi) destination of shipment, - —*

(iv) point of departure from the final Phihp 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 shah 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 ah shipments encompassed by Protocol 3.03(a), Phihp Morris mternational shah maintain any additional records necessary to identify the sales price and the Intended Market of Retail Sale, mcluding, 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) shah be kept for at least five years.

(d) OLAF and Phihp Morris International shah 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(D}—Off) to tiieseTracking and Tracing Protocols^ Philip Morris mternational

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). Phihp Morris mternational shall make commercially reasonable efforts to provide said automated Query-Only Access 24 hours a day, seven days a week. Phihp Morris hitemational may except nights and weekends from this schedule as needed for the purposes of systems maintenance and updating information. Phihp Morris International shall make commercially reasonable efforts to address any. technical (h^culties that may arise.

(f) ha the event that Phihp Morris mternational 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 Aciministrations or their duly authorized rspresentatives may request, via fax, telephone, or any other means, that Phihp Morris International provide First Purchaser Database information to OLAF. Phihp Morris International shah 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), shah 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 tMs information shah be governed by the following terms:

(i) OLAF, on behalf of the Relevant Administrations, shah 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 shah have automated Query-Only Access to the First Purchaser Databases. Only Database Designees shah 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 Adniinistrations requires more than 5 Database Designees, OLAF will request additional access and passwords from Phihp 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 Adnnnistrations whose personnel have been designated as Database

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 mquiries related to the Parties' mutual goal of combating the trade in Contraband Phihp Morris Cigarettes.

(hi) Prior to making any query, the Database Designee shah 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 shah 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 shah 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 shah 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 toknow such infonnation, and who shah use such information only in connection with the relevant ongoing inquiries.

(viii) In the event tirat tiie Relevant Admi^

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 Phihp Morris international an opportunity to seek a protective order or other appropriate remedy.

(ix) ϊη the event that the Relevant Admiinstiations seek to disclose information obtained from the First Purchaser Databases under circumstances not covered by Protocols 3.03(g)(vii) and (g)(viii) above,

they may only do so with the written consent of Phihp Morris ■ Mternational, wMch shah 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 confidentiahty 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), omer than a person acquiring the data through compulsory legal process, Phihp Morris Mternational may setoff any demonstrable and significant loss or damage to it resulting from any clahns made against Phihp Morris Mternational as a result of damages sustained as a direct result of the unauthorized use of passwords, security features or Mformation contained in the First Purchaser Databases-from any Appendix C payments owed tofhe Relevant Administrations · as provided for m Section 4.01 of the Agreement. The Parties agree that the mere fact that information provided to the Relevant Administrations has been made public shah 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 Phihp Morris Mternational has suffered demonstrable loss or damage resulting from the unauthorized use of passwords, security features or mformation contained in the First Purchaser Databases, (hi) whether such a loss is significant or de minimis, or (iv) the amount of such loss or damage, shall be settled by the Arbitrators m accordance with Section 12.02 of the Agreement.

PROTOCOL4 Second And Subsequent Layer Tracking

4.01. Purpose of Second or Subsequent Layer Tracking. PMlip Morris Mternational and the Relevant Administrations recognize that in certain circumstances effective tracking and tracing to prevent the trade of Contraband Phihp Morris Cigarettes can be enhanced when First Purchasers of Phihp Morris Mternational maintain databases that are similar to First Purchaser Databases regarding then customers ("Second Layer TrackMg") and/or their customers' customers ("Subsequent Layer Trackmg"). For fins purpose, PMlip Morris Mternational has developed Second Layer Tracking Kits wMch mclude a laptop computer, a scanner, and a database application ("Second Layer Trackmg Kits").

4.02. Deployment of Second and Subsequent Layer Tracking. PMlip Morris Mternational agrees and undertakes to make Second Layer Trackmg Kits reasonably available to any First Purchaser or Subsequent Purchaser where (i) PMlip Morris Mternational and OLAF agree to do so pursuant to Protocol 6.01(f)

of these Tracking and Tracing Protocols; (ii) Phihp Morris International is required to do so by the Arbitrators pursuant to Protocol 6.01(g) of these Tracking and Tracing Protocols; or (hi) 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. Phihp Morris International shall make commercially reasonable efforts to appropriately train all recipients of Second Layer Tracking Kits. Such training shah 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 auegation by the Relevant Adrmnistrations of breach or non-compliance with the requirements of the Agreement or these Appendices thereto. _ '

4.04. Access to Second Layer Tracking Information. Phihp 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 Phihp Morris International. To the extent Phihp Morris mternational receives such information, it shah 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 Trackmg 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, mternational agrees to provide OLAF at its written request with quarterly reports on developments in Second or Subsequent Layer tracking. Such updates shah 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. Phihp Morris International and the Relevant Administtations 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 Phihp Morris International's tracking and tracinginitiatives.

. 5.02. Research of New Master Case Labeling and Scanning Technologies. As set forth in Protocol 3 .01(c), Phihp Morris mternational shah maintain an ongoing program researching alternative or enhanced methods for marking Master Cases with machine scarmable or human readable (i.e., spelled out in letters and numbers) codes, and shah 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 Phihp Morris Cigarettes, that have a particular market as the Intended Market of Retail Sale (the "Market of Interest"), it may provide Phihp Morris mternational with information regarding these incidents (a "Notice of Interest"). A'Notice of Interest shah provide historical data for seizures of Phihp Morris Cigarettes that have the Market of Interest as the Intended Market of Retail Sale, mcluding the number of seizures of such Phihp 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 Phihp Morris Cigarettes as opposed to Counterfeit Phihp 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 Phihp Morris International has already inspected the seizure under Article 4.01(b) of the Agreement.

(b) Promptly upon receiving a Notice of Interest, Phihp Morris International shall conrluet an internal review in order to determine whether, on the basis of the information available to it, it is possible to detemrine whether there has been trade-in Contraband Phihp Morris Cigarettes that have the Market

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 Phihp Morris mternational with samples of the seized Cigarettes, Phihp Morris hitemational shah, 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 Phihp Morris Cigarettes or Phihp Morris Cigarettes.

(d) Within 60 days of receiving a Notice of Interest, Phihp Morris International shah 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 Phihp Morris Cigarettes or Counterfeit Phihp Morris Cigarettes and, if Counterfeit Phihp Morris Cigarettes, examination results demonstrating that conclusion. Any dispute as to whether the Cigarettes are Counterfeit Phihp Morris Cigarettes shah be settled in accordance with Section 4.01 (j) of the Agreement.

(e) If OLAF takes issue with the response of Phihp Morris Mternational, it may request m writing that Phihp Morris Mternational undertake one or more of the fohowmg measures:

(i) make commercially reasonable efforts to implement Second or Subsequent Layer TrackMg for selected Fust Purchasers of Phihp Morris Cigarettes that have the Market of Mterest as the Mtended Market of Retail Sale;

(ii) request that the Fust 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 Mterest, request that such Subsequent Purchaser implement Second or Subsequent Layer Trackmg, if such Subsequent Purchaser is a direct customer of the First Purchaser. Μ the event that the First Purchaser refuses to honor such request, PMlip. Morris Mternational will cease supplymg Phihp 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 Phihp Morris Mternational shah request that the First Purchaser make commerciaUy reasonable efforts to require that such Subsequent Purchaser implement Second or Subsequent Layer Tracking. Μ the event that the First Purchaser refuses to take such steps, Phihp Morris Mternational will

ΦΕΚ 36

cease supplying Philip Morris Cigarettes to such First Purchaser, who will thereafter be a BlockedContractor.

(hi) implement new Master Case coding technologies, or accelerate the^schedule for implementation of the tebeling and scanning requirements, such that such implementation occurs as soon as practicable, for relevant sales of Phihp Morris Cigarettes that have the Market of Interest as the Intended Market of Retail Sale or for relevant First Purchasers ofPlrihp 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-i 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 Phihp Morris International receiving a written request from OLAF under subsection (e) above, Phihp Morris International and OLAF shah 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 Phihp Morris International receiving OLAF's written request, such dispute shah 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 Phihp Morris mternational 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 Phihp Morris Cigarettes, that have the Market of Interest as the Intended Market of Retail Sale;

(ii) measures that Phihp Morris International has adopted for Phihp 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;

(hi) 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 Phihp Morris Cigarettes that have the Market of Interest as the Intended Market of Retail Sale;

(iv) the mmlementation 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 Phihp 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 Phihp Morris Cigarettes that have the Market of Interest as the Intended Market of Retail Sale.

(h) Nothing in this Protocol 6 shall preclude Phihp 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.

PROTOCOL7

New Carton and Pack Coding and Scanning Technologies

7.01. Research of Carton and/or Pack Coding Technologies.

(a) Phihp Morris International shah 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, Phihp Morris mternational shall mamtain an ongoing program of research and development concerning methods and technologies for improving Carton and Pack Ceding technologies. Phihp 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 commerciahy feasible, Phihp Morris mternational agrees and undertakes to implement Carton and/or Pack Coding technologies in accordance with the conditions set forth below. Phihp Morris mternational shall make commerciahy 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 technicaUy feasible.

(a) Philip Morns mternational shah implement Carton and/or Pack Coding technologies for Phihp 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 Phihp Morris Cigarettes that have that Tier I market as the Intended Market of Retail Sale is achievable through commerciahy reasonable efforts; - ■ '

(ii) the effectiveness of the Carton and/or Pack Coding technology has been demonstrated to be appropriate for industrial application; and

(hi) the implementation of Carton and/or Pack Coding is reasonably likely to significantly reduce the amount of Contraband Phihp Morris Cigarettes that have that Tier I market as the Intended Market of Retail Sale.

(b) Phihp Morris hitemational shah implement Carton and/or Pack Coding technologies for Phihp Morris Cigarettes that have a market listed under Tier Π 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 Phihp Morris Cigarettes, that have that Tier Π market as the Intended Market of Retail Sale;

(ii) _v measures that Phihp Morris International has adopted for Phihp Morris Cigarettes that have that Tier Π market as the Intended Market of Retail Sale are insufficient to combat the trade in Contraband Phihp Morris Cigarettes that have that Tier Π market as the Intended '■< Market of Retail Sale;

(hi) the implementation of Carton and/or Pack Coiling is reasonably targeted at the elimination, prevention and/or detection of Contraband Phihp Morris Cigarettes that have that Tier Π 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 Phihp Morris Cigarettes that have that Tier Π market as the Intended Market cjf Retail Sale;

(ν) the effectiveness of the Carton and/or Pack Coding technology has been demonstrated to be appropriate for industrial apphcation; and

(vi) the implementation of Carton and/or Pack Coding is reasonably likely to significantly reduce the amount of Contraband Phihp Morris Cigarettes that have that Tier Π market as the Intended Market of Retail Sale.

(c) Begirming 180 days after the Execution Date, OLAF may provide written notice to Phihp Morris mternational that either the criteria of subsection

(a) have been met for Phihp 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 Phihp Morris Cigarettes that have a particular Tier Π market as defined in Exhibit D as the Intended Market of Retail Sale, and request that Phihp Morris International implement Carton and/or Pack Ceding for those Phihp Morris Cigarettes. If Phihp Morris International disagrees with OLAF's written request, Phihp Morris International and OLAF shall meet and confer in good faith within 30 days of Phihp 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 Phihp Morris Cigarettes that have the market in question as theu^, Intended Market of Retail Sale. If the dispute cannot be resolved within 60 days of Phihp 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 apphcation of the criteria set forth in subsections (a) or (b) above as applicable;

(d) Nothing in this Protocol 7 shah preclude Phihp Morris International from adopting (either unilateraUy or at the request of OLAF or the Relevant Adrninistrations) measures set forth in subsections (a) or (b), above, for Cigarettes with a particular Intended Market of Retail Sale.

Exhibit A-i

Markets With Market-Specific Labeling

I. In accordance with Section 2.01(a), Philip Morris mternational shall make commerciahy reasonable efforts to mark Packs or Cartons of Ρΐώϊρ Morris Cigarettes mat 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.	Albania
2.	Algeria
3.	Andorra
4.	Angola
5:	Argentina
6.	Armenia
7.	Aruba
8.	Austria
9.	Azerbaijan
10.	Belarus
11.	Belgium
12.	Benin
13.	Bolivia
14.	Bosnia & Herzegovina
15.	Brazil
16.	Brunei
17.	Bulgaria
18. .	Burkina Faso
19.	Cameroon
20.	Cape Verde
21.	Chile
22.	China
23.	Colombia
24.	Congo
25.	Costa Rica
26.	Croatia
27.	Curacao
28.	Cyprus
29.	Czech Republic
30.	Democratic Repubhc of Congo
31.	Denmark
32.	Djibouti
33.	Dominican Repubhc
34.	East Timor (Timor Timur)

35.	Ecuador
36.	Egypt
37.	El Salvador
38.	Equatorial Guinea
39.	Estonia*
40.	Finland
41.	France and Monaco
42.	Gabon
43.	Gambia
44.	Georgia
45.	Germany
46.	Greece
47.	Guatemala
48.	Guinea
49.	Guinea Bissau
50.	Honduras
51.	Hong Kong
52.	Hungary
53.	Iceland
54.	India
55.	Indonesia
56.	Ireland
57.	Israel
58.	Italy
59,	Ivory Coast
60.	Jamaica
61.	Japan
62.	Jordan
63.	Kazakhstan
64.	Kiribati
65.	Korea, South
66.	Kosovo
67.	Kyrgyzstan
68.	Latvia
69.	Lebanon
70.	Liberia
71.	Lithuania
72.	Luxembourg.....
73.	Macao
74.	Macedonia
75. ;	Madagascar
76.	Malawi
77.	Malaysia

78.	Mali
79.	Malta
80.	Marshall Islands
81.	Mauritania
82.	Mayotte
83.	Mexico
84.	Moldova
85.	Mongoha
86.	Montenegro
87.	Morocco
88.	Nepal
89.	Netherlands
90.	New Caledonia
91.	Nicaragua
92.	Niger
93.	Norway
94.	Palau
95.	Palestine Authorities Area
96.	Panama
97.	Papua New Guinea
98.	Paraguay
99.	Peru
100.	Philippines
101.	Poland
102. .	Portugal
103.	Reunion
104.	Romania
105. -	Russia
106.	San Marino
107.	Saudi Arabia
108.	Senegal
109.	Serbia
110.	Sierra Leone
111.	Singapore
112.	Slovakia
113.	Slovenia
114.	South Africa
115.	Spain
116.	Sweden
117.	Syria
118.	Taiwan
119.	Tajikistan
120.	Thailand

121.	Togo
122.	Trinidad and Tobago
123.	Tunisia
124.	Turkey
125.	Turkmenistan
126.	Ukraine
127.	United Kingdom
128.	Uruguay
129.	Uzbekistan
130.	Venezuela
131.	Vietnam
132.	Yemen

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 mat Packs and Cartons from those domestic markets do not have unique labeling and shall bear the labeling indicated:

	Market	Labeling
1.	Antigua	Standard Export
2.	Australia	Same for Australia and New._. . Zealand
3.	Bahamas	Standard Export
4.	Bahrain	Same for Bahrain, Kuwait, and Oman
5.	Barbados	Standard Export
6.	Bermuda	Standard Export
7.	Botswana	Same, for Botswana, Swaziland, Namibia and Lesotho
8.	Burundi	Standard Export

ΦΕΚ 36

9.	Cambodia	Same for Cambodia and Laos
ΙΟ-	Cook Island	Standard Export
Ι 1.	Dominica	Standard Export
12.	Eritrea	Standard Export
13.	Ethiopia	Standard Export
14.	Fiji	Standard Export
15,	Grenada	Standard Export
16.	Haiti	Standard Export
17.	Kuwait	Same for Bahrain, Kuwait, — and Oman
18.;	Laos	Same for Cambodia and Laos
19.	Lesotho	Same for Botswana, Swaziland, Namibia and Lesotho
20.	Liechtenstein	Swiss Domestic
21.	Maldives	Standard Export
22.	Micronesia	Standard Export
23.	Mozambique	Standard Export
24.	Namibia	Same for Botswana, Swaziland, Namibia and Lesotho
25.	Nauru	Standard Export
26.	Netherlands Antilles - St. Maarten	Standard Export
27.		Same for Australia and New Zealand

28.	Oman	Same for Bahrain, Kuwait and Oman
29.	Qatar	Same for Qatar and United Arab Emirates
30.	Rwanda	Standard Export
31.	Samoa	Standard Export
32.	St. George	Standard Export
33.	StKitts	Standard Export
34.	St. Lucia	Standard Export
. 35.	St. Vincent	Standard Export _
36.	Suriname	Standard Export
37.	Swaziland	Same for Botswana,. Swaziland, Namibia and Lesotho
38.	Switzerland	Swiss Domestic
39.	Tanzania	Standard Export
40.	Tonga	Standard Export
41.	Turks and Caicos Islands	Standard Export
42.	United Arab Emirates	Same for Qatar and United Arab Emirates
43.	Vanuatu	Standard Export
44.	Vatican City	Italian Duty Free

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

Exhibit A-3

Manufacturing Centers With Limited Pack and Carton Coding

.. ... I. As described below, me foHowmg Mm

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.	Japan Tobacco, Japan	Marlboro for Japan Domestic	Production system is not shift based; therefore mere is no shift information.
2.	PRJJLAP, Macedonia	Partner Brand	No Coding
3.	Imperial Tobacco, Nottingham, England	Raffles Brand	Coding contains factory, machine number and week of manufacture
4.	Nis,PM Serbia	Best, Classic, Drina, Mond, Morava, Vek, Marlboro, L&M	Machine No. missing
5.	Former Papastratos facilities in Greece	Assos, Classic, Old Navy, Papastratos, President, Sage, Sante, Marlboro	No Coding

Exhibit A-4

Domestic Markets 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. Bangladesh

2. Belize

3.	Bhutan
4.	Canada
5.	Central African Repubhc
6.	Chad
7.	Comoros
8.	Cuba
9.	Ghana
10.	Guyana
11.	Iran
12.	Iraq (expected sales launch in 2004)
13.	Kenya
14.	Korea, North
15.	Libya
16.	Mauritius
17.	Myanmar
18.	Nigeria (expected sales launch in 2004)
19.	Pakistan
20.	Sao Tome & Principe
21.	Seychelles
22.	Solomon Islands
23.	Somalia
24.	Sri Lanka
25.	Sudan
26.	Tuvalu
27.	Uganda
28.	United States
29.	Western Sahara
30.	Zambia
31.	Zimbabwe

Π. In the event that Phihp Morris International begins selling product with one of the domestic markets listed in Exhibit A-4(I) as the Intended Market of Retail Sale, Phihp Morris International shah follow the procedures set forth in Protocol 2.01(b).

EXHIBIT A-5

PROCEDURES FOR LABELING DUTYFREE PACKS AND/OR

CARTONS

I. For World Wide Duty Free, within three (3) years of the Execution Date, Phihp Morris International shall make commerciahy reasonable efforts to

mark Packs and/or Cartons ofPhilip Morris Cigarettes with markings, codes or other information which permit a determination of the country or region in which • Philip Morris Mternational intends such Cigarettes to he sold duty-free, in accordance with the following:

A. All Phihp Morris Cigarettes to be sold duty-free within the European Union shah bear a marking, -code or other information on the Pack and/or Carton from which it can be determined that such Cigarettes were intended to be sold to retail consumers purchasing in the European Union.

B. For each other country or common customs territory in which annual sales of Phihp Morris Cigarettes to be sold to duty-free consumers exceed one billion units Phihp Morris shah mark Packs and/or Cartons with a marking, code or other information from which it can be determined in which country or common customs territory such Cigarettes were intended to be sold to retail consumers.' Phihp Morris mternationalidiali advise the Representatives of the Relevant Administrations as to the countries and common customs territories encompassed by this subsection and as to the relevant marking, code or other mformation to be used in each such country Or common customs territory as required by Protocol 2.01(c) of Appendix D.

C. For each other country or common customs territory in which annual sales of Phihp Morris Cigarettes to be sold to duty-free consumers exceed 150 million units per year, Philip Morris shah mark Packs and/or Cartons with a marking, code or other information from which it can be determined in which country or common customs territory such Cigarettes were intended to be sold to retail consumers; provided, however, that, in such case, Philip Morris mternational shall have the right to use a common marking, code, or other information for more than one country or common customs territory if (i) such countries or common customs territories are located in the same region of the world, and (ii) in the aggregate, the annual sales of Phihp Morris Cigarettes to be sold to duty-free consumers with such common marking, code or other information shall not exceed one billion units. Phihp Morris International shah advise the Representatives of the Relevant Administrations as to the countries and common customs territories encompassed by this subsection and as to the relevant marking, code or other information to be used in each such countryries) or common customs territory(ies) as required by Protocol 2.01(c) of Appendix D.

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

Exhibit Β

Schedule For Implementaton of Master Case Barcode Labeling

I. Philip Morris mternational shall make cornmercially reasonable efforts to apply barcode labels within thirty days of the Execution Date to all Master Cases of Cigarettes manufactured by Phihp Morris International at its own facilities for sale by Phihp 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

Greece, except for product manufactured by PM Greece and excepted under Exhibit A-3

8. Ireland

9. Italy

10. Luxembourg

11. Netherlands

12. Portugal

13. Spain

14. Sweden

15. United Kingdom

Π. Phihp Morris International shah make commerciahy reasonable efforts to apply barcode labels within 12 months of the Execution Date to ah Master Cases of Cigarettes manufactured by Phibp Morris mternational at its own facilities for sale by Phihp Morris International with an Intended Market of Retail Sale in Duty Free markets worldwide (with the exception of Duty Free product sold by PM Australia) and in the foflowing domestic markets:

1.	Albania
2.	Algeria
3.	Angola
4.	Belarus
5.	Benin
6.	Bosnia-Herzegovina
.7.	Botswana
8.	Bulgaria
9.	Burkina Faso I

10. Bunindi

11. Cameroon

12. Cape Verde

13. Congo

14. Croatia

15. Czech Republic

16. Djibouti

17. Egypt

18 . . Equatorial Guinea

19: Eritrea ^

20. Estonia

21. Ethiopia

22. Gabon

23. Gambia

. 24. Greece, including product manufactured by PM Greece

25. " Guinea ._;.

26. Guinea-Bissau

27. Hungary

28. Latvia

29. Lesotho

30. Liberia

31. Lithuania

32. Macedonia

33. Madagascar '

34. Malawi ~

35. Mali

36. Mauritania

37. Moldova

38. Morocco

39. Mozambique

40. Namibia'

41. Niger..

42. Poland"

43. Romania

44. Russia .

45. Rwanda

46. Senegal

47. Serbia & Montenegro

48. Sierra Leone

49. Slovakia

50. Slovenia.

51. South'Africa

52. Swaziland

Tanzania Togo Tunisia

Ukraine (except for up to a total of 30 billion units annually produced at fie Hiarkiv Factory of the Mowing branch STREET, CHESTERFIELD, KOSMOS, L&M, MARLBORO, NEXT, OPTIMA, PARLIAMENT, VATRA and any other brand provided that PMI gives the EC advance notice of its intent to produce such brand ';' PMI intends to phase out production at the Kharkiv factory and replace it wrAa^hewfacMty m Ukraine, which shall not be entitled to the ■ exception granted by the preceding sentence. In the event the Kharkiv factory is not to be phased out, the Kharkiv Factory shall be brought into full compliance within 24 months from the Execution Date)

LTL Philip Morris International shall make commercially reasonable efforts to apply barcode labels within 21 months of the Execution Date to all Master Cases of Cigarettes manufactured by Phihp Morris hitemational for sale by Phihp Morris mternational worldwide.

IV. Recognizing the particular nature of the relationship between Phihp Morris International and Third Party Manufacturers, the Parties agree that Phihp Morris mternational shall make commerciahy reasonable efforts to implement Master Case barcode labeling within 24 months of the Execution Date for products such Third Party Manufacturers manufacture for Phihp Morris International.

53. 54. 55. 56.

ΦΕΚ 36

Exhibit C

Schedule for Implementation of Master Case Barcode Label

Scanning

I. Single Fii^ Purchaser Markets

A. For Phihp Morris Cigarettes which have the foUowing markets as the Intended Market of Retail Sale, Philip Morris mternational sells to a single First Purchaser and marks the product with Pack or Carton markings satisfying

Protocol 2.01:
1.	Albania
2.	Algeria
3.	Angola
4.	Armenia
5.	Austria
6.	Azerbaijan
7.	Belarus
8.	Benin
9.	Bolivia
10.	Bulgaria
11.	Burkina Faso
12.	Cameroon
13.	Cape Verde
14.	Curacao
15.	'Cyprus
16.	Denmark
17.	Djibouti
18.	Equatorial Guinea
19.	Estonia
20.	France and Monaco
21.	Gabon
22.	Gambia
23.	Georgia .
24.	Iceland
25.	Indonesia
26.	Ireland
27.	Israel
28.	Italy

29.	- Kyrgyzstan
30.	Latvia
31.	Lebanon
32.	Liberia
33.	Macao
34.	Madagascar
.35.	Malawi
36.	Malta
"37.	Mauritania
'38.	Mayotte
39.	Moldova -
40.	Mongolia
41.	Morocco
42.	Nepal
43.	Niger
44.	Norway
45.	Palestine Authorities Area
46:	Panama
47.	Paraguay
48.	Peru
49.	San Marino
50.	Sierra Leone
51.	Spain.
52.	Sweden
53. .	'•Syria
54.	Taiwan
'55. .	Tajikistan
56.	Togo
57.	Turkmenistan
58.	United Kingdom
59.	Vietnam
60.	Yemen

B. Pursuant to Section 3.02(b), Phihp Morris hitemational 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 shah be updated as needed.

Π. Implementation in Tier I Markets

Α. Unless alteredby agreement of the Parties at a meeting of Philip Morris mternational and the Representatives of the Relevant Adininistrations, 'Tier I Markets" shall be denned as World Wide Duty Free (except for Duty Free product sold by PM Austraha), and the following Phihp Morris International domestic markets: .

I Belgium

"2 Canary Islands

3 Finland (TPM)

4 Germany

5 Indonesia

6 Lithuania .

7 Luxembourg « Malaysia

9 -Netherlands ^fc 10 .Philippines

II Portugal

12 Russia

13 _ Thailand

14 Ukraine (except for up to a total of 30 billion units annually produced at the Kharkiv Factory ofthe following brands: ASTRA, BOND STREET, CHESTERFIELD, KOSMOS, L&M, MARLBORO, NEXT, OPTIMA, PARLIAMENT, VATRA and any other brand provided that PMI gives the EC advance notice of its intent to produce such brand. PMI intends to phase out production at the Kharkiv factory and replace it with a new facility in Ukraine, Which shall not be entitled to the exception granted by the preceding sentence. In the event the Kharkiv factory is not to be phased out, the Kharkiv Factory shall be brought into full compliance within 24 months from me Esegution Date)

B. Phihp Morris International shall make commerciaUy reasonable efforts to bring all Tier I Markets into comphance with the ixquirements of Protocol 3.02(a) and (b) within 12 months of the Execution Date.

ΓΠ. Implementation in Tier Π Markets

A. Unless altered by agreement of the Parties at a meeting of Phihp Morris mternational and the Representatives of the Relevant Administrations, "Tier H Markets" shah be defined as the following Phihp Morris International markets:

1.	Andorra (TPM)
2.	Argentina
3.	Aroba
4.	Azores (TPM)
5.	Brazil
6.	Colombia
7.	Czech Repubhc
.8.	Dominican Repubhc
9, .	Ecuador
10.	Egypt (TPM)
.11.	Greece
12,	Hungary
13.	Ivory Coast (TPM)
14.	Jordan (TPM)
15.	Kazakhstan
16.	Kuwait
17.	; Macedonia, Former Yugoslav Repubhc
18..	Mexico
19.	Poland
20. .	Romania
21.	Saudi Arabia
22:	Senegal (TPM)
23.	Serbia and Montenegro
24. -	Slovak Repubhc
25.	'«· Slovenia
26.	South Korea
.27.	Switapfeid
28.	Turkey -
29.	United Arab Emirates
30.	Venezuela'

B. With the exception of markets with third party manufacturers, Phihp Morris International shall make commercially reasonable efforts to bring ah Tier Π Markets into comphance with the requirements of Protocol 3.02(a) and (b) within 36 months of the Execution "Date.

C. Recognizing the particular nature of the relationship between Phihp Morri^Iniernational and Third Party Manufacturers, the Parties

• agree that Phihp Morris International shall make commerciahy reasonable efforts to bring ah Tier Π Markets into comphance with the requirements of Protocol

3.02(a) and (b) within 48 months of the Execution Date for products such Third Party Manufacturers manufacture for Phihp Morris hitemational.

IV. Non-Compliance with Protocol 3.02(a) and (b) Due to Distribution or Other Changes:

(a) In the event that Phihp Morris mternational effects a change in the manner of distribution, an acquisition, a sourcing change, or other business transaction which will have the effect of ra£iaering 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, Phihp Morris International shall so notify the Representatives of tile Relevant Administrations within 30 days of such change.

•La the event that such market (or markets) is within the Territory of a Member State or a Designated State, Phihp Morris mternational shall make commercially reasonable efforts to bring such market back into comphancT witbthe

'requirements of Protocol 3.02(a) and (b) within 2 years of such change.

(b) Similarly, in the event that Phihp Morris International "ieffects 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 •foufc*isl 3«jQ2(a) and (b), then, Philip Morris International shah 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!

Exhibit D

Market Groupings For New Pack and Carton Coding and Scanning Technologies

I. Tier I Markets

v. ■ "A. Tier I Markets Defined, With the exception of any market jtfhat has a sole First Purchaser of Phihp Morris International for such market and that market has Pack or Carton markings satisfying Protocol 2.01, and subject to ihe time limit set for third party manufacturers in Exhibit D(L)(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.	s Latvia
15.	Lithuania
> 16.	Luxembourg
- 1.7.	Malta
18.	Netherlands *
19.	Poland
20.	Portugal
21.	Slovakia
22::-	Slovenia ..
23.	Spain
24.	Sweden ...... ,4 .
25.	United Kingdom

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

implementation of any obligations in Tier I markets imposed pursuant to Protocol 7 shall, in the case of products manufactured for Phihp Morris hitemational by Third Party Manufacturers, be extended for 24 months beyond that otherwise applicable in the case of products manufactured by Philip Morris International.

Π. TierUMarkets

. _. .· A. Tier Π Markets Defined. With the exception of any market

that has a sole First Purchaser of Phihp Morris hitemational for such a market and tbat market has Pack or GM 2.01, and subject to

Idle time hmit set for third party manufacturers in Exhibit D(I)(B), the following domestic markets are defined as Tier Π Markets for the purposes of Protocol 7:

1.	Albania
2.	Andorra
3. J	Aruba
4.	Belarus
5.	Bosnia
6.	Bulgaria
7.	Croatia
8.	Herzegovina .
9.	Kosovo
10. ·	Macedonia
11.	Moldova
12.	Montenegro
13.	Morocco
14.	Panama
15.	Romania
16.	Russia
17.	Serbia
18.	Switzerland : .
19.	Syria
20.	Turkey j
21.	Ukraine
22.	United Arab Emirates

Β. Recognizing the particular nature of the relationship between Phihp Morris International and Third Party Manufacturers, the Parties agree that, in deterniining commercial reasonableness, the time frame for implementation of any obligations in Tier Π markets imposed pursuant to Protocol 7 shall, in the case of products manufactured for Phihp Morris International by Third Party Manufacturers, be extended for 24 months beyond

that otherwise applicable in the case of products manrmictured by Phihp Morris International.

ΦΕΚ 36

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 shah b« considered and compared with indicia of genuine Phihp Morris Cigarettes as provided by Phihp Morris mternational and updated from time to time:

• me 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.

APPENDIX G List of Designated States

Albania	Montenegro
Andorra	Morocco
Aruba	Nigeria
Belarus	Panama
Bosnia	Poland
Bulgaria	Romania
Croatia	Russia
Cyprus	Serbia
Czech Republic	Slovakia
Estonia	Slovenia
Herzegovina	Switzerland
Hungary	Syria
Latvia	Turkey
Kosovo	United Arab Fniirates
Lithuania	Ukraine
Macedonia
Malta
Moldova

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 me addition or deletion of a State from that list is consistent with the purpose and intent of this Agreement. OLAF shall notify Philip Morris mternational of any proposed change to the list If Philip Morris mternationai objects to the proposed change, Phihp Morris International shall state its objection in writing within 30 days of receiving the notice. Phihp Morris mternational and OLAF shall meet and confer within 60 days of Phihp Morris hitemational sending its objection in an attempt to reach agreement on any changes to the list of Designated States. If Phihp 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 Phihp Morris International and OLAF, Phihp Morris International shall have one year from the date a State is added to the Designated States list in which to comply with ah its obhgations 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 obhgations pursuant to this Agreement and the Appendices in connection with that Designated State within 30 days of the Arbitrator's order to that effect

appendix i

	I : ·. -a-_	Ι β · j
1	'^iiTiT'v' """sn.vV ™.T -*■■'~	feiffiit ■--·
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	lemans
24	argentina	marlboro
25	argentina	parliament
26	argentina	partigulares
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 sums
38	aruba	marlboro
39	australia	albany 1
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
51	austria	marlboro
52	austria /	muratt)
53	austria	philip morris . |

appendix i

	A	Β
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	MURATTl
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
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

appenddci

	. · Α	I. ·. .. Β . · .1
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	COSTARICA	DERBY
138	COSTARICA	MARLBORO
139	CROATIA	MARLBORO
140	CZECH REPUBLIC	BAKARA
141	CZECH REPUBLIC	BOND STREET
142	CZECH REPUBLIC	CHESTERFIELD
143	CZECH REPUBLIC	L&M
144	CZECH REPUBLIC	MARLBORO
145	CZECH REPUBLIC	PETRA
146	CZECH REPUBLIC	PHILIP MORRIS
147	CZECH REPUBLIC	RED & WHITE
148	CZECH REPUBLIC	SPARTA
149	CZECH REPUBLIC	START
150	DEM. REP. OF CONGO	MARLBORO
151	DENMARK	CHESTERFIELD
152	DENMARK	MARLBORO
153	DENMARK	SKJOL

appendix i

	A	Β
1 ]
154	DF AUSTRALIA DF	ALPINE
155	DF AUSTRALIA DF	LONGBEACH
156	DF AUSTRALIA DF	MARLBORO
157	DF AUSTRALIA DF	PETER JACKSON
158	DF JAPAN DF	LARK
159	DF JAPAN DF	MARLBORO
160	DF JAPAN DF	NEXT
161	DFJAPAN DF	PARLIAMENT
162	DFJAPAN DF	PHILIP MORRIS
163	DF JAPAN DF	VIRGINIA SLIMS
164	DF NEW ZEALAND DF	MARLBORO
165	DF TAHITI DF	MARLBORO
166	DJIBOUTI	MARLBORO
167	DOMINICAN REPUBLIC	LIDER
168	DOMINICAN REPUBLIC	MARLBORO
169	DOMINICAN REPUBLIC	NACIONAL
170	EAST TIMOR	MARLBORO
171	ECUADOR	BELMONT
172	ECUADOR	FULLSPEED
173	ECUADOR	LARK
174	ECUADOR	L&M
175	ECUADOR	LIDER
176	ECUADOR	MARLBORO
177	EGYPT	L&M
178	EGYPT	MARLBORO
179	EGYPT	MERIT
180	EL SALVADOR	DIPLOMAT
181	EL SALVADOR	LIDER
182	EL SALVADOR	MARLBORO
183	EQUATORIAL GUINEA DOM.	BOND STREET
184	EQUATORIAL GUINEA DOM.	MARLBORO
185	ESTONIA	BOND STREET
186	ESTONIA	L&M _
187	ESTONIA	MARLBORO
188	ESTONIA	NEXT
189	ESTONIA	PARLIAMENT
190	ESTONIA	PHILIP MORRIS
191	ESTONIA	RED & WHITE
192	FIJI	ALPINE
193	FUl	LONGBEACH
194	FUI	MARLBORO
195	FINLAND	BELMONT
196	FINLAND	CHESTERFIELD
197	FINLAND	L&M
198	FINLAND	MARLBORO
199	FINLAND	MULTJFILTER

952

appendix i

		i β I
1	:&™·« I'tpoi "Τ.
200	france	armada
201	france	basic
202	france	chesterfield
203	france	l&m
204	france	marlboro
205	france	merit
206	france	muratti
207	france	philip morris
208	france	sg
209	french polynesia	l&m
210	french polynesia	marlboro
211	gabon	marlboro
212	gambia	bond street
213	gambia-	marlboro
214	georgia	chesterfield
215	georgia	l&m
216	georgia	marlboro
217	georgia	parliament
218	germany	basic
219	germany	chesterfield
220	germany	eve
221	germany	f6
777	germany	juwel
223	germany	karo
224	germany	l&m
225	germany	marlboro
226	germany	merit
227	germany	multifilter
228	germany	next
229	germany	parliament
230	germany	philip morris
231	greece	assos
232	greece	chesterfield
233	greece	l&m
234	greece	marlboro
235	greece	merit
236	greece	muratti
237	greece	next
238	greece	old navy
239	greece	papastratos
240	greece	philip morris
241	greece	president one
242	greece	saga
243	greece	sante
244	greek cyprus	l&m
245	greek cyprus	marlboro
246	greek cyprus	philip morris
247	guatemala	diplomat
248	guatemala	lider
249	guatemala	marlboro
250	guatemala	rubios
251	guinea' '	assos
252	guinea	marlboro
253	guinea bissau	marlboro

ΦΕΚ 36

appendix i

	A	■ E> |
254	HONDURAS	UDER
255	HONDURAS	MARLBORO
256	HONG KONG	BOND STREET
257	HONG KONG	GOOD COMPANION
258	HONG KONG	MARLBORO
259	HONG KONG	PHIUP MORRIS
260	HONG KONG	SARATOGA
261	HONG KONG	VIRGINIA SLIMS
262	HUNGARY	BOND STREET
263	HUNGARY	EVE
264	HUNGARY	HELIKON
265	HUNGARY	L&M
266	HUNGARY	MARLBORO
267	HUNGARY	MULTIFILTER
268	HUNGARY	PHILIP MORRIS
269	ICELAND	L&M
270	ICELAND	MARLBORO
271	INDIA	MARLBORO
272	INDONESIA	LONGBEACH
273	INDONESIA	MARLBORO
274	IRELAND	MARLBORO
275	ISRAEL	ASSOS
276	ISRAEL	EVE
277	ISRAEL	L&M
278	ISRAEL	MARLBORO
279	ISRAEL	NEXT
280	ISRAEL	PARLIAMENT
281	ISRAEL	PRESIDENT
282	ITALY	CHESTERFIELD
283	ITALY	DIANA
284	ITALY	L&M
285	ITALY	MARLBORO
286	ITALY	MERCEDES
287	ITALY	MERIT
288	ITALY"	MULTIFILTER
289	ITALY	MURATTI
290	ITALY	PHIUP MORRIS
291	IVORY COAST	MARLBORO
292	JAPAN	L&M
293	JAPAN	LARK
294	JAPAN	MARLBORO
295	JAPAN	MERIT
296	JAPAN	NEXT
297	JAPAN	OASIS
298	JAPAN	PARLIAMENT
299	JAPAN	PHIUP MORRIS
300	JAPAN	VIRGINIA SLIMS
301	JORDAN	L&M
302	JORDAN	MARLBORO

appendix 1

	I.- A	I Β
1		ύχ^ΓίΓ ----- - - - ·'■- : . _ -'
303	KAZAKHSTAN	APOLLO SOYUZ
304	KAZAKHSTAN	ASTRA
305	KAZAKHSTAN	BENSON & HEDGES
306	KAZAKHSTAN	BOND STREET
307	KAZAKHSTAN	CONGRESS
308	KAZAKHSTAN	KAZAKHSTAN
309	KAZAKHSTAN	L&M
310	KAZAKHSTAN	MARLBORO
311	KAZAKHSTAN-	MEDEO
312	KAZAKHSTAN	NEXT
313	KAZAKHSTAN	OPTIMA I
314	KAZAKHSTAN	PARLIAMENT /
315	KAZAKHSTAN	POLYOT
hSM	KAZAKHSTAN	PRIMA
Uh	KAZAKHSTAN	VIRGINIA SLIMS
Bfc]	KIRGHIZSTAN	BOND STREET
KM	KJRGHIZSTAN	L&M
	KIRGHIZSTAN	MARLBORO
fciiJ	KIRGHIZSTAN	PARLIAMENT
	KIRIBATI	ALPINE
323	KOREA	ELAN
324	KOREA	LARK
328	KOREA	MARLBORO
326	KOREA	PARLIAMENT
	KOREA	PHILIP MORRIS
	KOREA	VIRGINIA sums
	KOSOVO	MARLBORO
ev«:	KUWAIT	L&M
Ml	KUWAIT	MARLBORO
332	KUWAIT	MERIT
333	KUWAIT	PARLIAMENT
334	KUWAIT	PHILIP MORRIS
335	KUWAIT	RED & WHITE
336	LAOS	MARLBORO
337	LATVIA'	BOND STREET
338	LATVIA	CHESTERFIELD
339	LATVIA	KLAIPEDA
340	LATVIA	L&M
341	LATVIA	MARLBORO
342	LATVIA	PARLIAMENT
343	LATVIA	PHILIP MORRIS
344	LATVIA	RED & WHITE
345	LEBANON	BOND STREET
346	LEBANON	CHESTERFIELD
347	LEBANON	MARLBORO
348	LEBANON	MERIT
349	LIBERIA	BOND STREET
350	LIBERIA	MARLBORO

appendix i

	a	β
351	lithuania	astra
352	lithuania	bond street
353	lithuania	kastitys
354	lithuania	kaunas
355	Lithuania	klaipeda
356	lithuania	l&m
357	lithuania	marlboro
358	lithuania	parliament
359	lithuania	prima
360	lithuania	red & white
361	luxembourg	armada
362	luxembourg	basic
363	luxembourg	chesterfield
364	luxembourg	l&m	0'
365	luxembourg	marlboro
366	luxembourg	merit -
367	luxembourg	muratti
368	luxembourg	philip morris
369	macau	chesterfield
370	macau	good companion
371	macau	marlboro
372	macau	virginia slims
373	macedonia \ t	marlboro
374	madeira	chesterfield
375	madeira	l&m
B£]	madeira	marlboro
	madeira	portugues
	madeira	sg
Ml	malaysia	l&m
	malaysia	marlboro
Eii)	maldives	good companion
Ej2	maldives	marlboro
	malta	marlboro
	mauritania	congress
m	mauritania	marlboro	- -.....—
	mayotte	marlboro
mi	mexico	benson & hedges
	mexico	broadway
	mexico	deucados
	mexico	elegantes
E21	mexico	faros
392	mexico	l&m
393	mexico	uder
394	mexico	marlboro
395	mexico	tigres
396	micronesia outer isl.	benson & hedges
397	micronesia outer isl.	cambridge
398	micronesia outer isl	marlboro
399	moldova	bond street
400	moldova	l&m
401	moldova	marlboro
402	moldova '	parliament
403	moldova	red & white

appendix i

	Α	I Β_J
1
404	MONGOLIA	CONGRESS
405	MONGOLIA	L&M
406	MONGOLIA	MARLBORO
407	MONGOLIA	PARLIAMENT
408	MONTENEGRO	BEST
409	MONTENEGRO	CLASSIC
410	MONTENEGRO	DRINA
411	MONTENEGRO	MARLBORO
412	MOROCCO	MARLBORO
413	NAURU	ALPINE
414	NEPAL	MARLBORO-
415	NETHERLANDS	CHESTERFIELD
416	NETHERLANDS	L&M
417	NETHERLANDS	MARLBORO
418	NETHERLANDS	PHILIP MORRIS
'419	NETHERLANDS	RUNNER
420	NEW CALEDONIA	LONGBEACH
421	NEW CALEDONIA	MARLBORO
422	NEW ZEALAND	LONGBEACH
423	NEW ZEALAND	MARLBORO
424	NICARAGUA	LIDER
425	NICARAGUA	MARLBORO 1
426	NIGER	BOND STREET
427	NIGER	VISA
428	NIGERIA	BOND STREET
429	NIGERIA	MARLBORO
430	NORFOLK ISLANDS	LONGBEACH
431	NORWAY	L&M
432	NORWAY	MARLBORO
433	OKINAWA	LARK
434	OKINAWA	NEXT
435	OKINAWA	PARLAIMENT
436	OKINAWA	PHILIP MORRIS
437	OKINAWA	VIRGINIA SUMS
438	OMAN	L&M
439	OMAN	MARLBORO
440	OMAN	MERIT
441	OMAN	RED & WHITE
442	PALESTINE	L&M
443	PALESTINE	MARLBORO
444	PALESTINE	PARLIAMENT
445	PANAMA	L&M
446	PANAMA	MARLBORO
447	PANAMA	MENTOLADOS
448	PARAGUAY	BENSON & HEDGES
449	PARAGUAY	CHESTERFIELD
450	PARAGUAY	MARLBORO
451	PARAGUAY	PHILIP MORRIS
452	PERU	MARLBORO

appendix i

	A | Β
453	PHILIPPINES	BOWLING GOLD
454	PHILIPPINES	L&M
455	PHILIPPINES	MARLBORO
456	PHILIPPINES	MILLER
457	PHILIPPINES	PHILIP MORRIS
458	PHILIPPINES	STORK
459	POLAND	BOND STREET
460	POLAND	CARMEN
461	POLAND	CARO
462	POLAND	CHESTERFIELD
463	POLAND	FAJRANT
464	POLAND	KLUBOWE
465	POLAND	L&M
466	POLAND	MARLBORO
467	POLAND	PARLIAMENT
468	POLAND	VIRGINIA SUMS
469	POLAND	2EFIR
470	PORTUGAL	CHESTERFIELD
471	PORTUGAL	DETROIT
472	PORTUGAL	KENTUCKY
473	PORTUGAL	L&M
474	PORTUGAL	MARLBORO
475	PORTUGAL	PORTUGUES
476	PORTUGAL	RITZ
477	PORTUGAL	SG
478	POP. REP. OF CHINA	MARLBORO
479	QATAR	L&M
480	QATAR	MARLBORO
481	QATAR	MERIT
482	REUNION	BASIC
483	REUNION	BOND STREET
484	REUNION	CHESTERFIELD
485	REUNION	MARLBORO
486	REUNION	PHIUP MORRIS
487	ROMANIA ----	ASSOS
488	ROMANIA	BOND STREET
489	ROMANIA	CHESTERFIELD
490	ROMANIA	L&M
491	ROMANIA	MARLBORO
492	ROMANIA	PARLIAMENT
493	ROMANIA	PRESIDENT
494	ROMANIA	RED & WHITE
495	ROMANIA	ZET .
496	RUSSIA	APOLLO SOYUZ
497	RUSSIA	BOND STREET
498	RUSSIA	CHESTERFIELD
499	RUSSIA	L&M
500	RUSSIA	MARLBORO
501	RUSSIA	MURATTI
502	RUSSIA	NEXT
503	RUSSIA	OPTIMA
504	RUSSIA	PARLIAMENT
505	RUSSIAr "	VIRGINIA SUMS

appendix i

A		Β
1
	SAN MARINO	DIANA
	SAN MARINO	MARLBORO
	SAN MARINO	MERIT
	SANMARINO	PHIUP MORRIS
LiiL	SAUDI ARABIA	L&M
mi	SAUDI ARABIA	MARLBORO
	SAUDI ARABIA	MERIT
	SAUDI ARABIA	PHIUP MORRIS
|514jSAUDI ARABIA		RED & WHITE
tit]	SAUDI ARABIA	VISA
HE	SENEGAL	MARLBORO
	SERBIA & MONTENEGRO	ASSOS
	SERBIA & MONTENEGRO	BEST
	SERBIA & MONTENEGRO	CLASSIC
	SERBIA & MONTENEGRO	DRINA
Ε^ϋ	SERBIA & MONTENEGRO	EVE
	SERBIA & MONTENEGRO	L&M
523	SERBIA & MONTENEGRO	MARLBORO
524	SERBIA & MONTENEGRO	MOND
525	SERBIA & MONTENEGRO	MORAVA
526	SERBIA & MONTENEGRO	VEK
527	SIERRA LEONE	BOND STREET
528	SIERRA LEONE	COSMOS
529	SIERRA LEONE	MARLBORO
530	SINGAPORE	L&M
531	SINGAPORE	MARLBORO
532	SINGAPORE	RAFFLES
533	SINGAPORE	VIRGINIA SLIMS
534	SLOVAK REPUBLIC	BOND STREET
535	SLOVAK REPUBLIC	CHESTERFIELD
536	SLOVAK REPUBLIC	L&M
537	SLOVAK REPUBLIC	MARLBORO
538	SLOVAK REPUBLIC	PETRA
539	SLOVAK REPUBLIC	RED & WHITE
540	SLOVAK REPUBLIC	SPARTA ; -
541	SLOVAK REPUBLIC	START
542	SLOVENIA	CHESTERFIELD
543	SLOVENIA	DIANA j
544	SLOVENIA	EVE
545	SLOVENIA	L&M
546	SLOVENIA	MARLBORO
547	SLOVENIA	MERIT
548	SLOVENIA	MULTIFILTER
549	SLOVENIA	MURATTI
550	SLOVENIA	PHILIP MORRIS
551	SOUTH AFRICA	CHESTERFIELD
	SOUTH AFRICA	MARLBORO
	SPAIN	CHESTERFIELD
	SPAIN	L&M
	SPAIN	LARK
	SPAIN	MARLBORO
	SPAIN / ;	MERIT
	SPAIN -	PHILIP MORRIS
	SURINAM Ε	MARLBORO
	SWEDEN	BASIC
	SWEDEN	BOND

appendix i

	A	Β
1
562	SWEDEN	L&M
563	SWEDEN	MARLBORO
564	SWITZERLAND	AKLblTfc
565	SWITZERLAND	BRUNETTE
566	SWrrZERLAND	CHESTERFIELD
567	SWITZERLAND	FLINT
568	SWITZERLAND	L&M
569	SWITZERLAND	MARLBORO
570	SWITZERLAND	MERIT
571	SWITZERLAND	MURATTI
572	SWITZERLAND	MULTIFILTER
573	SWITZERLAND	NORTH POLE
574	SWITZERLAND	PHILIP MORRIS
575	SYRIA	MARLBORO
576	TAIWAN	L&M
bll	TAIWAN J	LARK
578	TAIWAN	MARLBORO
579	TAIWAN	PARLIAMENT
580	TAIWAN	SARATOGA
581	TAIWAN	VIRGINIA SLIMS
582	THAILAND	L&M
583	THAILAND	MARLBORO
584	TOGO	BOND STREET
585	TOGO	MARLBORO
586	TOGO	VISA
587	TRINIDAD & TOBAGO	MARLBORO
588	TUNISIA	MARLBORO
589	TUNISIA	MERIT
590	TURKEY	CHESTERFIELD
591	TURKEY	L&M
592	TURKEY	LARK
593	TURKEY	MARLBORO
594	TURKEY	MURATTI
595	TURKEY	PARLIAMENT
	TURKEY	TURKU
	TURKISH CYPRUS	CHESTERFIELD.
	TURKISH CYPRUS	EVE
|599|TURKISH CYPRUS		L&M
m	TURKISH CYPRUS	MARLBORO
ED	TURKISH CYPRUS	MURATTI
m	TURKISH CYPRUS	PARLIAMENT
	TURKMENISTAN	CONGRESS
	TURKMENISTAN	L&M
	TURKMENISTAN	MARLBORO
	TURKMENISTAN	PARLIAMENT

appendix I

	A
1		.............Β....................■
607	UKRAINE	ASTRA
608	UKRAINE	BOND STREET
609	UKRAINE	CHESTERFIELD
610	UKRAINE	KOSMOS
611	UKRAINE	L&M
6121	UKRAINE	MARLBORO
613	UKRAINE	NEXT ...
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
	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
Εϋ	VENEZUELA	LIDO
Ε2	VENEZUELA	MARLBORO
ES3	VIETNAM	MARLBORO
ΕΞ	WWDF	ASSOS
EE	WWDF	BELMONT
ΕΠΙ	WWDF	BENSON & HEDGES
EE	WWDF	BOND STREET
ΕΞ	WWDF	BRUNETTE
Ε2	WWDF	CHESTERFIELD
ΕΞ	WWDF	CLASSIC PAPASTRATOS
ΕΞ	WWDF	DIANA -.?
Efl	WWDF	EVE
ΕΞ	WWDF	F6--
ΕΞ	WWDF	L&M
	WWDF	LARK
	WWDF	MARLBORO
m	WWDF	MERIT
653	WWDF .	MULTIFILTER
654	WWDF	MURATTI
655	WWDF	OLD NAVY
	WWDF	PAPASTRATOS
657	WWDF	PARLIAMENT
658	WWDF	PHILIP MORRIS
659	WWDF	PRESIDENT
	WWDF ■' '	SG
	WWDF	VIRGINIA SLIMS
	YEMEN	MARLBORO

ΦΕΚ 36

APPENDIX Κ

Amending the Baseline Amount

The Parties established the Baseline Amount as a reasonable estimate of the annual quantity of seizures of Omfcaband Philip Morris Qgareties 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-Paiticrpating 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 shah be considered:

1) The size of tbePhilip Morris Gigaretfe rharket(s) m the New Member Sta^ seizures of Contraband Philip Morris Cigarettes are likely to result in Supplemental Payments in the following calendar year but whose incidence of Contraband Phihp 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, m determining the size of the market for Philip Morris Cigarettes and the incidence of Contraband Phihp Morris

. Cigarettes in the New Member States, the Parties shah take account of and rely on:

a) Historical seizure data;

b) Available studies and reports of the industry;

c) Phihp 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 Phihp 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 Phihp 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 tight 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, aslfon-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 obhgations ofPhilip 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 ofPhilip Morris International.

In determining whether to amend the provisions of, and the obligations of Phihp Morris International under, Article 4, the Parties shah consider whether there has been a significant increase in the incidence of Contraband Philip Morris Cigarettes in any Member State whose seizures of Contraband Phihp Morris Cigarettes are likely to result in Supplemental Paymentsin 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 Phihp 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 Phihp Morris hitemational with appropriate relief from the obhgations under Article 4. However, amendment of, or relief from, Supplemental Payment obligations is only appropriate where (i) the rigmficant increase in the incidence of Contraband Philip Morris Cigarettes in that Member State is not substantially attributable to a failure on the part ofPhilip 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.

ΣΥΜΦΩΝΙΑ ΓΙΑ ΤΗΝ ΚΑΤΑΠΟΛΕΜΗΣΗ ΤΟΥ ΛΑΘΡΕΜΠΟΡΙΟΥ ΚΑΙ ΤΩΝ

ΠΑΡΑΠΟΙΗΜΕΝΩΝ ΠΡΟΪΟΝΤΩΝ

ΚΑΙ ΓΕΝΙΚΗ ΑΠΑΛΛΑΓΗ

της 9ης Ιουλίου 2004 Μεταξύ των:

PHILIP MORRIS INTERNATIONAL INC.,

PHILIP MORRIS PRODUCTS INC., PHILIP MORRIS DUTY FREE INC., και

PHILIP MORRIS WORLD TRADE SARL

και της ΕΥΡΩΠΑΪΚΗΣ ΚΟΙΝΟΤΗΤΑΣ ΕΚΠΡΟΣΩΠΟΥΜΕΝΗΣ ΑΠΟ ΤΗΝ ΕΥΡΩΠΑΪΚΗ ΕΠΙΤΡΟΠΗ

και

ΚΑΘΕΝΑ ΑΠΟ ΤΑ ΚΡΑΤΗ ΜΕΛΗ ΠΟΥ ΑΝΑΦΕΡΟΝΤΑΙ ΣΤΙΣ ΣΕΛΙΔΕΣ ΤΩΝ ΥΠΟΓΡΑΦΟΝΤΩΝ ΤΗΝ ΠΑΡΟΥΣΑ