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Exhibit 1.1



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|BYLAWS



October 2010



INDEX







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|-------------------------------------------------------------- |  | --
|Name - Registered office  Purpose and duration of the Company |  | 2 
|Share Capital - Shares - Bonds                                 |  | 3 
|Board of Directors                                             |  | 5 
|Board of Auditors                                              |  | 8 
|Shareholders Meeting                                          |  | 10
|Fiscal year - Dividends                                        |  | 11
|Special Powers                                                 |  | 11



Amended by the Board of Directors on 30 September 2010, as per notarial deed n. 7241/3763 by
Mr. Carlo Marchetti Public Notary in Milan.



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NAME - REGISTERED OFFICE -
PURPOSE AND DURATION OF THE COMPANY



Article 1



1.1 - The name of the Company shall be TELECOM ITALIA S.p.A.



Article 2



2.1 - The registered office of the Company shall be in Milan.



Article 3



3.1 - The Companys purpose shall be:



|- | the installation and operation, using any technique, method or system, of fixed and mobile equipment and installations, including radio stations, links for
maritime wireless communications, and dedicated and/or integrated networks, for the purpose of providing, operating and marketing, without territorial restrictions, communications services, including those resulting from technological progress, and
the performance of activities directly or indirectly related thereto, including the design, construction, operation, maintenance, integration and marketing of telecommunications, information technology and electronic products, services, networks and
systems and, in general, ICT (Information Communication Technology) solutions for final users;
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|- | the performance of related and instrumental activities, including publishing, advertising, information technology, online and multimedia activities and, in
general, all commercial, financial, property, research, training and consulting activities;
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|- | the acquisition, provided it is not the Companys principal activity, of equity interests in other companies and undertakings falling within the scope of
the corporate purpose or related, complementary or similar thereto;
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|- | the control and the strategic, technical and administrative and financial coordination of subsidiary companies and undertakings, and the financial planning
and management thereof, with the implementation of all related transactions.
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



3.2 - Activities reserved to persons entered in a professional register and activities involving dealings with the public covered by Article 106 of Legislative Decree 385/1993 shall be expressly excluded.



Article 4



4.1 - The duration of the Company shall be until 31 December 2100. Extension of the time limit shall not result in
shareholders who do not vote in favour of such resolution having the right of withdrawal.



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SHARE
CAPITAL  SHARES - BONDS



Article 5



5.1 -
The subscribed and fully paid-up share capital shall be equal to Euro 10,688,746,056.45, divided into 13,407,963,078 ordinary shares with a par value of Euro 0.55 each and 6,026,120,661 savings shares with a par value of Euro 0.55 each.



5.2 - In resolutions to increase the share capital by issuing shares
for cash, the right of preemption may be excluded for up to a maximum of ten per cent of the previously existing capital, provided the issue price corresponds to the market value of the shares and this is confirmed in a report prepared by the firm
appointed as statutory auditor.



5.3 - The allotment of
profits to employees of the Company or subsidiaries shall be allowed, in the legal terms and manner, by means of the issuance of shares pursuant to paragraph one of Art. 2349 of the Civil Code.



5.4 - For five years starting from 29 April 2010 the Directors
may increase the share capital as follows:



|- | to service the implementation of the 2010-2014 Broad-based Employee Share Ownership Plan, in the maximum amount of Euro 4,960,292.15 by the
allotment of the corresponding maximum amount of profits pursuant to Art. 2349 of the Civil Code, by the issuance of the number of ordinary shares necessary for the allotment of one bonus share for every three shares for cash as described above by
employees in the 2010-2014 Broad-based Employee Share Ownership Plan, within the time periods and under the terms and conditions provided for therein;
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|- | to service the implementation of the 2010-2015 Long-Term Incentive Plan, (i) by the issuance for cash of new ordinary shares with a par value
of Euro 0.55 each, ranking pari passu, in the maximum amount of Euro 5,000,000, excluding the right of pre-emption pursuant to Art. 2441, paragraph 8, of the Civil Code, and Art. 134, paragraph 2, of Legislative Decree no. 58/1998, to be reserved
for the respective beneficiaries, and therefore subsequently (ii) in the maximum amount of Euro 5,000,000 by the allotment of the corresponding maximum amount of profits pursuant to Art. 2349 of the Civil Code, by the issuance of the number of
ordinary shares with a par value of Euro 0.55 each necessary for the allotment of one bonus share for every share subscribed for cash as described above by employee beneficiaries of the 2010-2015 Long-Term Incentive Plan, within the time
periods and under the terms and conditions provided for therein.
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



With respect to the capital increase for cash, the Board of Directors shall set subscription price (including any premium) in accordance with the 2010-2015 Long-Term Incentive Plan, respectively, and it
shall also set suitable time limits for its subscription, providing that if the increase resolved is not fully subscribed within that time limits, the capital will be increased by an amount equal to the subscriptions received up to such time.



5.5 - For five years starting from 8 April 2009 the
Directors may increase the share capital in one or more tranches by up to a maximum total amount of 880,000,000 by means of cash issues,
with or without a share premium, of up to a maximum of 1,600,000,000 ordinary shares with a par value of 0.55 each



|(i) | to be offered with the right of pre-emption to persons having entitlement; or, including just a part thereof,
|--- | -------------------------------------------------------------------------------------------------------------



|(ii) | to employees of Telecom Italia S.p.A. and its subsidiaries with the exclusion of the right of pre-emption pursuant to the combined effects of the last
paragraph of Article 2441 of the Civil Code and Article 134(2) of Legislative Decree 58/1998.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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5.6 - Resolutions to increase the share capital adopted by the Board of Directors in exercising the powers attributed
above shall set the subscription price (including any premium) and a time limit for the subscription of the shares; they may also provide, in the event that the increase approved is not fully subscribed within the time limit established for each
issue, for the capital to be increased by an amount equal to the subscriptions received up to such time.



5.7 - The Board of Directors may issue, in one or more tranches and for up to a maximum of five years from 8 April 2009, bonds convertible into
ordinary shares to be offered with the right of pre-emption to persons having entitlement up to a maximum nominal amount of 1 billion.



Article 6



6.1 - Savings shares shall have the preferential rights set forth in this Article.



6.2 - The net profit shown in the duly approved annual accounts, less
the amount to be allocated to the legal reserve, must be distributed to the savings shares up to five per cent of their par value.



6.3 - The net profit that remains after the allocation to the savings shares of the preferred dividend provided for in the second paragraph, payment
of which must be approved by the Shareholders Meeting, shall be divided among all the shares in such a way that the dividend per savings share is higher by two per cent of its par value than the dividend per ordinary share.



6.4 - When the dividend paid on savings share in a fiscal year is less
than that indicated in the second paragraph, the difference shall go to increase the preferred dividend in the next two fiscal years.



6.5 - In the event of a distribution of reserves, the savings shares have the same rights as the other shares. If the net profit for the year is nil
or insufficient to satisfy the property rights referred to in the preceding paragraphs, the Shareholders Meeting called to approve the annual accounts may resolve to satisfy the right referred to in the second paragraph and/or the right to the
premium referred to in the third paragraph by drawing on the reserves. Payment made by drawing on the reserves shall exclude application of the mechanism for carrying over, to the two following fiscal years, the right to preferred dividends not
received through the distribution of profits referred to in the fourth paragraph.



6.6 - A reduction of the share capital due to losses shall not entail a reduction of the par value of the savings shares, except for the amount of the loss that exceeds the total par value of the other shares.



6.7 - Upon dissolution of the Company, the savings shares
shall have priority in the repayment of the capital up to their entire par value.



6.8 - If the Companys ordinary or savings shares are delisted, holders of savings shares may apply to the Company for their conversion into ordinary shares, in the manner approved by an ad hoc Extraordinary
Shareholders Meeting called within two months of the delisting.



6.9 - The organization of savings shareholders shall be governed by law and these bylaws. The costs associated with organizing special meetings of savings shareholders and remunerating the common representative
shall be borne by the Company.



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Article 7



7.1 - The shares shall be indivisible. In the event of joint
ownership, the rights of the joint owners shall be exercised by a common representative. Fully paid-up shares may be bearer shares when the law permits. In such case, shareholders may apply for their shares to be converted, at their own expense,
into registered shares or vice versa.



7.2 -
Vis-à-vis the Company, shareholders shall be deemed to elect domicile for all legal purposes at the domicile indicated in the Shareholders Register.



7.3 - The imposition or removal of restrictions on the circulation of
shares shall not result in shareholders who do not vote in favour of such resolution having the right of withdrawal.



Article 8



8.1 - The Company may issue bonds and shall establish the terms and conditions of their placement.



8.2 - The costs associated with organizing meetings of bondholders
shall be borne by the Company, which, in the absence of a bondholder resolution in the form prescribed by law, shall also bear the cost of the common representatives up to the maximum amount set by the Board of Directors for each issue, taking
account of its size.



BOARD OF DIRECTORS



Article 9



9.1 - The Company shall be managed by a Board of Directors consisting
of not less than seven and not more than nineteen members. The Shareholders Meeting shall establish the number of members of the Board of Directors, which shall remain unchanged until a different number is established.



9.2 - The Board of Directors shall be appointed, in accordance with the
applicable laws and regulations, on the basis of slates presented by the shareholders or by the outgoing Board of Directors.



9.3 - Each shareholder may present or participate in the presentation of only one slate and each candidate may appear on only one slate on pain of
ineligibility.



9.4 - Slates may be submitted only by
shareholders who alone or together with other shareholders hold a total number of shares representing at least 0.5% (or such other amount established by Consob regulations) of the share capital entitled to vote at the Ordinary Shareholders
Meeting.



9.5 - Together with each slate, it is necessary to
file individual candidates acceptances of their candidacy and declarations in which they attest, on their own responsibility, that there are no grounds for ineligibility or incompatibility, and that they meet any requirements prescribed for
the positions in question as well as any other piece of information requested by applicable law or regulation or the bylaws. Together with the declarations, a curriculum vitae shall be filed for each candidate setting out their main personal and
professional data with an indication of the positions held in management and control bodies of other companies and of the grounds for their qualifying as independent in accordance with the criteria established by law and the Company. Any changes
that occur up to the day the Shareholders Meeting is held must be promptly notified to the Company.



9.6 - Each person entitled to vote may vote for only one slate.



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9.7 - The Board of Directors shall be elected as specified below:



|a) | four fifths of the directors to be elected shall be chosen from the slate that obtains the majority of the votes (the Majority List), in the order in which
they are listed on the slate; in the event of a fractional number, it shall be rounded down to the nearest whole number;
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|b) | without prejudice to conmpliance with the applicable laws and regulations concerning the limits to the link with the Majority List the remaining directors
shall be taken from the other slates; to that end, the votes obtained by the various slates shall be divided successively by whole numbers from one up to the number of directors to be chosen. The quotients thus obtained shall be assigned to the
candidates on each slate in the order specified thereon. On the basis of the quotients assigned, the candidates on the various slates shall be arranged in a single decreasing ranking. Those who have obtained the highest quotients shall be elected.
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



If more than one
candidate obtains the same quotient, the candidate from the slate that has not yet elected any director or that has elected the smallest number of directors shall be elected.



If none of such slates has yet elected a director or
all of them have elected the same number of directors, the candidate from the slate that obtained the largest number of votes shall be elected. If the different slates have received the same number of votes and their candidates have been assigned
the same quotients, a new vote shall be held by the entire Shareholders Meeting and the candidate obtaining the simple majority of the votes shall be elected.



9.8 - In appointing directors who for any reason have not been
appointed pursuant to the procedure specified above, the Shareholders Meeting shall vote on the basis of the majorities required by law.



9.9 - If in the course of the fiscal year one or more vacancies occur on the Board, the procedure specified in Article 2386 of the Civil Code shall
be followed.



9.10 - Should a majority of the seats on the
Board of Directors become vacant for any cause or reason, the remaining directors shall be deemed to have resigned and they shall cease to hold office from the time the Board of Directors has been reconstituted by persons appointed by the
Shareholders Meeting.



Article 10



10.1 - The Board of Directors shall elect a Chairman from among its
member  if the Shareholders Meeting has not already done so  and may also appoint one or more Deputy Chairmen.



10.2 - If the Chairman is absent or unable to act, the senior Deputy Chairman by age, if appointed, shall take his/her place or, in the absence of a
Deputy Chairman, the most senior director by age.



10.3 -
The Board of Directors may elect a Secretary who need not be a director.



Article 11



11.1 - The Chairman or his/her substitute shall call meetings of the Board of Directors at the Companys registered office or elsewhere, on
his/her own initiative and whenever he/she receives a written request to do so from at least one fifth of the directors holding office or from the members of the Board of Auditors. The Chairman shall give advance notice of the matters to be
discussed in Board meetings and arrange for adequate information on the questions to be examined to be provided to all the Directors, taking account of the circumstances of each case.



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11.2 - Meetings shall be called, using suitable means in relation to
the notice to be given, normally at least five days prior to the date thereof, except in urgent cases, when at least twelve hours notice must in any case be given.



11.3 - Notice shall be given to the Board of Auditors within the same
time limits.



11.4 - Participation in Board meetings may
 if the Chairman or his/her substitute verifies the necessity  be by means of telecommunication techniques that permit participation in the discussion and informational equality for all those taking part.



Article 12



12.1 - The Board of Directors shall be responsible for running the
Company, since all matters not expressly reserved to the Shareholders Meeting by law or these bylaws are within its jurisdiction.



12.2 - Within the limits established by law, the Board of Directors shall be entrusted with deciding on the merger into Telecom Italia and the
spin-off in favour of Telecom Italia of companies of which Telecom Italia owns at least 90% of the shares or capital parts, the reduction of the share capital in the event of the withdrawal of shareholders, the revision of the bylaws to conform with
statutory provisions, the relocation of the Companys registered office within Italy, and the opening and closing of secondary offices.



Article 13



13.1 - To implement its own resolutions and manage the Company, the Board of Directors, subject to the limits provided for by law, may:



|- | create an Executive Committee, establishing its powers and the number of members;
|- | ---------------------------------------------------------------------------------



|- | delegate suitable powers, establishing the limits thereof, to one or more directors, possibly with the title of Chief Executive Officer;
|- | ----------------------------------------------------------------------------------------------------------------------------------------



|- | appoint one or more General Managers, establishing their powers and duties;
|- | ---------------------------------------------------------------------------



|- | appoint attorneys, who may be members of the Board of Directors, for specific transactions and for a limited period of time.
|- | ----------------------------------------------------------------------------------------------------------------------------



13.2 - The Board of Directors may set up committees from among its
members charged with giving advice and making proposals and shall establish their powers and duties.



13.3 - The Board of Directors shall appoint the manager responsible for preparing the Companys financial reports after consulting the Board of
Auditors. Unless revoked for good cause after consulting the Board of Auditors, the appointment shall terminate together with that of the Board of Directors that made it.



13.4 - The manager responsible for preparing the Companys
financial reports must be an expert in the fields of administration, finance and control and satisfy the integrity requirements established for directors. Subsequent failure to satisfy these requirements shall entail disqualification from the
position, which must be announced by the Board of Directors within thirty days of its learning of the failure.



Article 14



14.1
- Persons with delegated powers shall report to the Board of Directors and the Board of Auditors on the activities carried out, the general results of operations and their foreseeable development, and the transactions of greatest economic, financial
or balance sheet significance concluded by the Company or its subsidiaries; in particular, they shall report on transactions in which they have an interest, directly or on behalf of third parties,



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or that are influenced by the person, if any, who performs the activity of direction and coordination. Such reports shall be made promptly, and at least once in each quarter, in meetings or in
writing.



14.2 - In accordance with the times and procedures
for disclosing information to the market, the representative of the holders of savings shares must be informed by the Board of Directors or the persons delegated to that end of any corporate events that might affect the price of the shares of that
class.



Article 15



15.1 - The representation of the Company vis-à-vis third
parties and in legal proceedings shall pertain to the Chairman or if he/she is absent or unable to act, the Deputy Chairman, if one is appointed; it shall also pertain severally to each of the Chief Executive Officers.



Article 16



16.1 - The directors shall be entitled to the reimbursement of
expenses incurred in the performance of their duties. The Ordinary Shareholders Meeting shall also decide the annual remuneration payable to the Board of Directors. Once fixed, this remuneration shall remain unchanged until a different amount
is established.



BOARD OF AUDITORS



Article 17



17.1 - The Board of Auditors shall consist of five standing auditors. The Shareholders Meeting shall also appoint
four alternates.



17.2 - For the purposes of Articles
1(2)(b) and 1(2)(c) of the regulation referred to in Justice Minister Decree 162/2000, the following sectors of activity and matters shall be considered closely linked to those of the Company: telecommunications, information technology, online
systems, electronics and multimedia technology, and matters related to private and administrative law, economics and business administration.



17.3 - The appointment of the Board of Auditors shall be in compliance with the applicable laws and regulations on the basis of slates presented by
shareholders.



17.4 - Each shareholder may present or
participate in the presentation of only one slate and each candidate may appear on only one slate on pain of ineligibility.



17.5 - Only shareholders who alone or together with other shareholders hold a total number of shares representing at least 0.5% (or such other
amount established by Consob regulations for the appointment of the Board of Directors) of the voting share capital, may submit slates.



17.6 - Together with each slate, it is necessary to file individual candidates acceptances of their candidacy and declarations in which they
attest, on their own responsibility, that there are no grounds for ineligibility or incompatibility, and that they meet the requirements as well as any other piece of information requested by applicable law or regulation or the bylaws.



17.7 - Together with the declarations, a curriculum vitae for each
candidate shall be filed setting out their main personal and professional data with an indication of the positions held in management and control bodies of other companies. Any changes that occur up to the day the Shareholders Meeting is held
must be notified to the Company.



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17.8 - The slates shall be divided into two sections: one for
candidates to the position of standing auditor and the other for candidates to the position of alternate auditor. The first candidate in each section shall be selected from among the statutory auditors entered in the appropriate register who have
worked on statutory audits for a period of not less than three years.



17.9 - Each person entitled to vote may vote for only one slate.



17.10 - The Board of Auditors shall be elected as specified below:



|a) | from the slate that obtains the majority of the votes (the Majority Slate) three standing and two alternate auditors shall be chosen in the order in which
they are listed on the slate;
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|b) | without prejudice to the applicable laws and regulations concerning the limits to link with the Majority Slate two standing and two alternate auditors shall
be chosen from the other slates (the Minority Slates).
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



To this end the votes obtained by the Minority Slates shall be divided first by one and then by two. The quotients thus obtained shall be assigned to the candidate of the one and the other section of each slate in
the order specified thereon. On the basis of the quotients assigned, the candidates on the various slates shall be arranged respectively in a single decreasing ranking for the appointment of the standing auditors and a single decreasing ranking for
the appointment of the alternate auditors and those who have obtained the two highest quotients shall be elected.



If more than one candidate obtains the same quotient, the candidate from the slate that has not yet elected an auditor shall be
elected or, subordinately, there shall be a tiebreaker vote by the entire Shareholders Meeting and the candidate who obtains the simple majority of the votes shall be elected.



17.11 - The Shareholders Meeting shall appoint the Chairman of the Board of Auditors from among the auditors
elected from Minority Slates.



17.12 - In appointing
auditors who for any reason have not been appointed pursuant to the procedure specified above, the Shareholders Meeting shall vote on the basis of the majorities required by law.



17.13 - In the event of the termination of the appointment of auditors chosen from the Majority Slate or from one of the
Minority Slates, alternate auditors chosen respectively from the Majority Slate or the Minority Slates shall take their place in declining order of age. Appointments to fill vacancies on the Board of Auditors pursuant to Article 2401 of the Civil
Code shall be approved by the Shareholders Meeting with the affirmative vote of the absolute majority of those voting and in compliance with the principle of the necessary representation of the minority shareholders. In the event of the
termination of the appointment of an auditor chosen from the Minority Slates the principle of the necessary representation of the minority shareholders shall be deemed to be complied with in the event of the appointment of an alternate auditor
chosen from the Minority Slates.



17.14 - After notifying
the Chairman of the Board of Directors, the Board of Auditors, may call, as provided for by law, a Shareholders Meeting or a meeting of the Board of Directors or the Executive Committee. This power to call meetings may be exercised
individually by each auditor, except for the power to call a Shareholders Meeting, which must be exercised by at least two auditors.



17.15 - Participation in the meetings of the Board of Auditors may  if the Chairman verifies the necessity  be by means of
telecommunication techniques that permit participation in the discussion and informational equality for all those taking part.



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17.16 - If the Chairman is absent or unable to act, the other standing auditor elected from the Minority Slates shall
take his/her place.



SHAREHOLDERS MEETING



Article 18



18.1 - An Extraordinary Shareholders Meeting shall be called whenever it is deemed desirable by the Board of
Directors and when it is required in accordance with the law. If the quorum is not reached at the second call, there may be a third call.



18.2 - Special meetings of savings shareholders shall be called by the common representative of the savings shareholders or by the Companys
Board of Directors whenever they deem this to be desirable or when requested in accordance with the law.



18.3 - Ordinary and Extraordinary Shareholders Meetings and special meetings of savings shareholders may be held in a place other than the
registered office, provided it is in Italy.



Article 19



19.1 - Those entitled to vote in the Ordinary Shareholders
Meeting may exercise their right by mail in accordance with the applicable law.



19.2 - Every person entitled to vote may be represented at the Shareholders Meeting by giving a proxy to an individual or legal entity, subject to the restrictions established by law.



19.3 - Electronic notification of the proxi may be carried out by
electronic mail, following the procedures indicated in the notice calling the Shareholders Meeting.



19.4 - In order to facilitate the collection of proxies among employees of the Company or its subsidiaries who hold ordinary shares of the Company
and belong to shareholder associations satisfying the requirements established by law, special areas shall be made available in accordance with the procedures and time limits established by the Board of Directors either directly or through its
agents where information can be provided and proxy forms collected.



Article 20



20.1 - The Chairman of the Board of Directors or his/her substitute shall chair Ordinary and Extraordinary Shareholders Meeting and govern its
proceedings; the same function shall be performed by the common representative in special meetings of savings shareholders. In the absence respectively of the Chairman of the Board of Directors (and his/her substitute) and of the common
representative, the meeting shall be chaired by the person elected with the favourable vote of the majority of the capital represented at the meeting.



20.2 - The Chairman of the meeting shall, amongst other things, verify its regularity, ascertain the identity and right to attend of those present,
direct the business, including by establishing a different order for the discussion of the items indicated in the notice convening the meeting. The Chairman shall take appropriate measures to ensure the orderly conduct of the discussion and polls;
he shall establish how each poll is to be conducted and verify the results; he may choose two or more scrutineers from among those present.



20.3 - The Secretary shall be appointed with the favourable vote of the majority of the capital represented at the meeting and a person who is not a
shareholder may be selected.



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20.4 - Shareholders meetings shall be governed by the law, these
bylaws and, exclusively for Ordinary an Extraordinary Shareholders Meetings, the Rules of Proceeding approved by the Ordinary Shareholders Meeting.



FISCAL YEAR  DIVIDENDS



Article 21



21.1 - The fiscal year shall end on December 31 of each year.



21.2 - From the net profit reported in the annual accounts, 5% shall be
allocated to the legal reserve until this reaches an amount equal to one-fifth of the share capital.



21.3 - The remainder shall be used to pay the dividend determined by the Shareholders Meeting, and for such other purposes as the
Shareholders Meeting deems most appropriate or necessary.



21.4 - During the course of the fiscal year, the Board of Directors may distribute interim dividends to the shareholders.



SPECIAL POWERS



Article 22



22.1 - Pursuant to Article 2(1) of Decree Law 332/1994, ratified with amendments by Law 474/1994, as replaced by Article 4(227) of Law 350/2003, the
Minister for the Economy and Finance, in agreement with the Minister for Productive Activities, shall have the following special powers:



|a) | to oppose the acquisition by parties subject to the limitations on share ownership referred to in Article 3 of Decree Law 332/1994, ratified with amendments
by Law 474/1994, of major holdings, taken to mean holdings that, as specified by Treasury Minister Decree of 24 March 1997, are equal to at least 3% of the share capital represented by shares with a right to vote in ordinary shareholders
meetings. The objection must be made within ten days of the date of the communication that the directors must send at the time of the application for entry in the shareholders register if the Minister deems that the transaction is prejudicial
to the vital interests of the state. During the interval for the exercise of the right of objection the voting rights and any rights other than the property rights attaching to the shares that represent the major holding shall be suspended. In the
event of the exercise of the right of objection, by means of a measure giving the reasons in relation to the actual prejudice caused by the transaction to the vital interests of the state, the transferee may not exercise the voting rights or any
rights other than the property rights attaching to the shares that represent the major holding and must sell the shares within one year. If this is not done, the Court, at the request of the Minister for the Economy and Finance, shall order the sale
of the shares representing the major holding pursuant to the procedures established in Article 2359-ter of the Civil Code. The objection may be appealed within sixty days by the transferee before the Lazio Regional Administrative Court;
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|b) | to veto, giving the reasons in relation to the actual prejudice caused to the vital interests of the state, the adoption of resolutions to dissolve the
Company, transfer the business, merge or divide the Company, transfer the registered office outside Italy, change the corporate object, or amend these bylaws with a view to eliminating or modifying the powers specified in this article. The veto may
be appealed within sixty days by the transferee before the Lazio Regional Administrative Court.
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22.2 - The right of objection referred to in subparagraph a) may be exercised with reference to the cases specified in Article 4(228) of Law
350/2003. The special powers referred to in subparagraphs a) and b) shall be exercised in conformity with the criteria established by the decree issued by the President of the Council of Ministers on 10 June 2004.



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