Document:

<PAGE>
                                                                   Exhibit 10.12

El.En. s.p.A.
ELECTRONIC ENGINEERING

Capital Stock:
Declared E 2,423,817.76
Subscribed and paid-in E 2,392,000.00
Via Baldanzese. 17 - 50041 CALENZANO (FI)
Tel. (055) 8826807 - Fax (055) 8632884
E-Mail: elen@elen.it Web: www.elengroup.com

        ACT OF ASSIGNMENT OF OPTIONS ACCORDING TO THE REGULATIONS OF THE
                       "2004-2005 EMPLOYEE INCENTIVE PLAN"

Dear Sir

     MIKE DAVIN

DELIVERED BY HAND
Registration Number:________

On November 13, 2003, the Board of Directors of El.En. S.p.A. has arranged to
assign to you the Options indicated hereinafter under the terms and conditions
provided herein as supplemented by the regulations of the "2004-2005 Employee
Incentive Plan" approved by the Board of Directors on said date.

<TABLE>
<S>                    <C>
No. of Options         20,000 (each option gives the right to subscribe, after
                       payment of the subscription price, 1 Share of El.En
                       S.p.A)

Date of Distribution   November 13, 2003

Subscription Price     E 15.78 (fifteen point seventy-eight euros)

Date of Exercise on    with regard to   The Communication of Exercise shall
penalty of loss        10,000 Options   reach the Company from November 18,
                                        2004 through December 31, 2004, from
                                        August 15, 2005, through September 30,
                                        2005, from November 18, 2005 through
                                        December 31, 2005.

                       with regard to   The Communication of Exercise shall
                       10,000 Options   reach the Company from August 15,
                                        2005, through September 30, 2005, from
                                        November 18, 2005 through December 31,
                                        2005.
</TABLE>

For whatever is not indicated herein, the provisions in the "Regulations of the
2004-2005 Incentive Plan" having as their object "common shares of El.En.
S.p.A." shall apply.

It is requested that a copy of this document, signed for acceptance, be
returned.

Best Regards.

The Chairman of the Board of Directors
      Engineer Gabriele Clementi
<PAGE>
     The undersigned MIKE DAVIN, as an employee of Cynosure Inc., a subsidiary
     of El.En. S.p.A.,

                               DECLARES EXPRESSLY

(a)  that he accepts, as a prerequisite and essential condition of the
     aforementioned assignment, all rules contained in the Regulations of the
     2004-2005 Incentive Plan in favor of the employees of the El.En. Group
     approved by the Board of Directors on November 13, 2003;

(b)  that he agrees to respect all provisions referred to in the Regulations of
     the 2004-2005 Incentive Plan;

(c)  that he thoroughly understands the content of the Regulations of the
     2004-2005 Incentive Plan;

(d)  that he is fully aware of the risks connected with the operation as
     governed by the Regulations of the 2004-2005 Incentive Plan, having
     evaluated them carefully.

Best Regards.

     for acceptance

Date: 12/17/03

                             [Employee's signature]
<PAGE>
                 HAVING COMMON SHARES OF EL.EN S.P.A. AS OBJECT

                                  INTRODUCTION

The prerequisite and purpose of these regulations and of the Incentive Plan
governed thereby is that of involving some of the employees (the "EMPLOYEES" as
hereinafter defined) of the GROUP (as hereinafter defined) in the future
economic and strategic development of said GROUP, permitting said EMPLOYEES to
participate in the economic, and not just the economic, fruits of such
development. In particular, this Incentive Plan is directed first of all toward
stimulating the EMPLOYEES of the COMPANY (as hereinafter defined) and, secondly,
toward maintaining the relationship of collaboration of the EMPLOYEES with the
GROUP, for the purpose of consolidating the technical and technological
capabilities developed by the GROUP, thereby providing the COMPANY with the
internal stability needed for successfully overcoming the difficulties of a
market in continuous growth and evolution also on the competitive level and, as
well, the industrial and managerial transition phase that is achieved both in
the stock price and in the expansion of the Company.

                                       ***

ARTICLE 1 OBJECT OF THE INCENTIVE PLAN

1.1. The option rights regulatee herein (hereinafter the "OPTIONS") are assigned
     as provided herein: (i) by decision of the Extraordinary Stockholders
     Meeting on July 16 (sixteen), 2002 (two thousand two) (hereinafter
     "APPROBATORY DECISION") of the company El.En. S.p.A. (hereinafter defined
     as the "COMPANY") whereby the power is conferred on the Board of Directors,
     in accordance with Article 2443 of the Civil Code, to proceed with an
     increase in capital stock up to a maximum of nominal E 124,800 (one
     hundred twenty-four thousand euros) to be placed in service of an incentive
     plan in favor of the employees of the Company and of the subsidiary
     companies thereof (hereinafter the "GROUP"); (il) by decision of the Board
     of Directors of the COMPANY made on November 13 (thirteen), 2003 (two
     thousand three) which, in execution of the APPROBATORY DECISION, has
     decided to increase the capital stock by total nominal maximums
     of E 13,145.60; and (iv) by any subsequent decisions of increase in
     capital that may be adopted by the Board of Directors in execution of the
     APPROBATORY DECISION. Assignment of the OPTIONS and of the rights and
     obligations relative thereto is subject to the terms and conditions
     indicated in thes regulations (the "REGULATIONS").
<PAGE>
ARTICLE 2 ASSIGNMENT OF OPTIONS FOR SUBSCRIPTION OF SHARES

2.1. The OPTIONS referred to in these REGULATIONS will be assigned exclusively
     in favor of the category of Managers, Middle Managers, and Staff of the
     GROUP - as employees of said GROUP - who at the time of assignment of the
     OPTIONS are in an employee relationship with a company of the GROUP
     (hereinafter defined collectively as the "EMPLOYEES" and each of them
     individually as "EMPLOYEE").

2.2. The Board of Directors of the COMPANY, in accordance with the powers
     conferred by the Extraordinary Shareholders Meeting of the COMPANY held on
     July 16 (sixteen), 2002 (two thousand two), and within the maximum limits
     established by said meeting, has and shall have full power to determine:
     (i) to which of the MANAGERS to assign the OPTIONS, (ii) the number of
     OPTIONS to be assigned to each EMPLOYEE, (iii) the terms and conditions for
     exercise of the OPTIONS, all in application of these REGULATIONS.

2.3. The EMPLOYEES who are holders of the OPTIONS will have the right to
     subscribe for each OPTION assigned to them one share of the COMPANY with
     regular possession by paying the SUBSCRIPTION PRICE (as hereinafter
     defined), of which the portion exceeding the nominal value of the shares
     will be considered as surcharge.

2.4. The OPTIONS are granted free of charge to the EMPLOYEES, unless otherwise
     decided by the Board of Directors.

2.5. The OPTIONS and all rights incorporated in such option rights are strictly
     personal, nominative, non- transferable and non-negotiable (except for
     transferability because of death, albeit within the limits referred to in
     these REGULATIONS) and thus undistrainable and not usable in regard to
     debts or contracts assumed by each of the EMPLOYEES vis-a-vis the GROUP or
     third persons.

ARTICLE 3 MODES OF EXERCISE OF THE OPTIONS

3.1. The EMPLOYEES who are holders of the OPTIONS will have the right to
     exercise said OPTIONS and to subscribe the related shares with the modes,
     terms, and conditions set forth in these REGULATIONS and, in particular, by
     this Article 3, supplemented as appropriate by subsequent conditions that
     the Board of Directors may consider opportune to decide from time to time.

3.2. If the EMPLOYEE intends to exercise the OPTIONS, he shall communicate in
     writing to the COMPANY, using the mode of communication attached to these
     REGULATIONS as Attachment "A", his exercise of said OPTIONS and his own
     commitment to subscribe the number of shares corresponding to the OPTIONS
     and to pay the SUBSCRIPTION PRICE (such communication is hereinafter
     defined as the "COMMUNICATION OF EXERCISE").
<PAGE>
3.3. The OPTIONS may be exercised in one or more tranches as decided from time
     to time by the Board of Directors, which in each act of assignment of
     OPTIONS will also determine the initial and final dates for delivery to the
     COMPANY of the COMMUNICATION OF EXERCISE relative to the OPTIONS assigned
     from time to time.

3.4. At the time of exercise of the OPTIONS, the EMPLOYEES will have to pay the
     COMPANY the SUBSCRIPTION PRICE for each of the SHARES subscribed. The
     SUBSCRIPTION PRICE is determined by the Board of Directors in full respect
     of what was established by the Extraordinary Shareholders Meeting on July
     16 (sixteen), 2002 (two thousand two).

3.5. The exercise of the OPTIONS (hereinafter the "EXERCISE OF THE OPTIONS")
     will be understood as validly effected on the date of receipt by the
     Company of the COMMUNICATION OF EXERCISE together with the SUBSCRIPTION
     PRICE. The date of subscription of the shares (hereinafter the "DATE OF
     EXERCISE"), will be the date that will be established by the Board of
     Directors.

3.6. The subscription of the shares shall take place simultaneously with the
     payment in favor of the COMPANY of the total SUBSCRIPTION PRICE (i.e.,
     obviously multiplied by the number of SHARES), as determined by the Board
     of Directors at the time of assignment of the OPTIONS. The total
     SUBSCRIPTION PRICE shall be paid to the COMPANY without burden of
     commission and expenses for the COMPANY'S account. To this end, the
     EMPLOYEE shall deposit with the COMPANY such amounts according to the
     administrative and accounting modes that will be indicated by said COMPANY.

3.7. The COMPANY will place at the disposal of the EMPLOYEE all shares
     subscribed by said EMPLOYEE as soon as possible.

3.8. The shares of the COMPANY subscribed by the EMPLOYEE (after exercise of the
     OPTIONS) will have possession equal to that of the common shares of the
     COMPANY as of the date of the subscription and will accordingly be provided
     with the coupons current on said date.

3.9. If the COMMUNICATION OF EXERCISE is not delivered to the COMPANY between
     the dates established by the Board of Directors for the exercise of the
     OPTIONS assigned or the total SUBSCRIPTION PRICE due is not paid to the
     COMPANY between the dates set forth in the preceding Article 3.6, the
     EMPLOYEE will definitively forfeit the right to exercise the OPTIONS
     assigned to him and the option rights referred to in the OPTIONS will be
     understood as definitively extinct with effect of release of the
     obligations assumed by the COMPANY and by the individual EMPLOYEE.
<PAGE>
ARTICLE 4 CONTROL OF THE OPTIONS IN CASE OF TERMINATION OF THE EMPLOYEE
RELATIONSHIP

4.1. The right to exercise the OPTIONS is conditioned on the EMPLOYEE still
     being an employee of the GROUPO on the date of receipt of the COMMUNICATION
     OF EXERCISE.

4.2. Accordingly, it is understood that if, in the period between (i) the date
     of assignment of OPTIONS and (ii) the date of receipt of the COMMUNICATION
     OF EXERCISE, under the terms set forth by these REGULATIONS, or the final
     date for the exercise of the option right, as established by the Board of
     Directors (hereinafter "FINAL DATE"), the employee relationship between the
     EMPLOYEE and the GROUP should cease due to resignation of the EMPLOYEE or
     dismissal for just cause or in any case for breach attributable to the
     EMPLOYEE, the EMPLOYEE will definitively forfeit the right to the exercise
     of all OPTIONS assigned to him in accordance with these REGULATIONS and
     will accordingly forfeit the right to subscribe the shares. Extinction of
     the aforesaid rights shall take place automatically without the need of any
     communication or formality and take effect from the moment of termination
     of the employee relationship, represented by express agreement from the
     date on which any advance notice period begins.

4.3. It is understood that if, in the period (i) between the date of assignment
     of OPTIONS and (ii) the FINAL DATE, the employee relationship between the
     EMPLOYEE and the GROUP should cease because of (a) death or (b) disability
     such as not to permit continuation of the employee relationship or (c)
     dismissal of the EMPLOYEE for reasons other than those indicated in the
     preceding Article 4.2, the EMPLOYEE and/or the successors or assigns of
     said EMPLOYEE shall have the right to exercise all OPTIONS assigned to the
     EMPLOYEE in accordance with these REGULATIONS. Exercise of the OPTIONS may
     not be done with modes other than as provided in these REGULATIONS and
     other than provided from time to time by the Board of Directors during
     assignment of the OPTIONS.

ARTICLE 5 OBLIGATION ON THE SHARES

5.1. The Board of Directors of the COMPANY has and shall have the power to
     establish with its own decision obligations to the circulation of the
     shares due in relation to the assigned OPTIONS.

ARTICLE 6 EXTRAORDINARY OPERATIONS OF THE COMPANY

6.1. The Board of Directors, in its incontrovertible judgment, may amend, in
     full observance of the law, the modes and conditions of exercise of the
     OPTIONS on the occasion of extraordinary operations such as, by way of
     example:

(i)  free increases in capital;
<PAGE>
(ii) increases in capital for payment with issue in option of new shares, also
     in service of convertible obligations or with warrants or in service of
     warrants valid for their replacement and in any case all operations on
     capital and/or reserves that may give rise to the removal of a negotiable
     right;

(iii) reductions for losses;

(iv) merger and divestment operations of the COMPANY;

(v)  distribution of extraordinary dividends of the shares;

(vi) capital reduction operations by annulment of shares, except those possibly
     possessed by the COMPANY;

(vii) possible Public Offers of Acquisition or Exchange

ARTICLE 7 COMMUNICATIONS

7.1. All communications between the COMPANY and the EMPLOYEES relating to these
     REGULATIONS shall be made in writing by means of registered letter with
     return receipt or delivered by hand with signature of the recipient upon
     receipt, and they will be understood as validly made on the date of receipt
     by the recipient. Such communications shall be sent, as for the COMPANY, to
     the address of the legal headquarters to the attention of the chairman of
     the Board of Directors and, as for each EMPLOYEE, to the address that is
     communicated by said EMPLOYEE and, lacking such communication, to the
     address indicated to the COMPANY for the purposes of the employee
     relationship.

ARTICLE 8 ACCEPTANCE OF THESE REGULATIONS

8.1. Signing these REGULATIONS implies full acceptance of all provisions, terms,
     and conditions established and governed in said REGULATIONS.

ARTICLE 9 CHANGE IN SOCIAL SECURITY AND TAX RULES

9.1. If, due to changes taking place in the current state of the social security
     and tax rules and of any other application rules or in those relative to
     interpretation and application, the actuation of these REGULATIONS should
     involve subsequent social security or tax burdens or those of another
     nature for the COMPANY, these REGULATIONS may be modified or annulled by
     the COMPANY for the portion that has not yet been executed, without the
     recipients being able to have any right to indemnity or compensation for
     OPTIONS not yet attributed or attributed and not yet exercised.
<PAGE>
ARTICLE 10 MISCELLANEOUS

10.1. It is expressly stipulated that the participation of the EMPLOYEE in the
     program of assignment of OPTIONS that is the object of these REGULATIONS
     does not constitute nor does it cause to arise any right or expectation or
     claim of any nature, even future, in relation to or in connection with the
     employee relationship of the EMPLOYEE. Said relationships will continue to
     be regulated by the laws and contracts in effect.

10.2. All dates set forth in these REGULATIONS shall be understood as mandatory,
     with it being understood that if a date corresponds to non-working day in
     Italy, said date will be automatically deferred to the immediately
     following working day.

10.3. With acceptance of these REGULATIONS, the EMPLOYEES declare and
     acknowledge together with the COMPANY that these REGULATIONS supersede and
     replace any preceding negotiation or oral or written understanding between
     the COMPANY and the EMPLOYEES in relation to generally intended incentive
     plans.

10.4. Being understood what is otherwise provided in these REGULATIONS, changes
     to these REGULATIONS may be made only in writing and shall be approved by
     the COMPANY on the one hand and by a number of EMPLOYEES that is equal to
     at least 51% (fifty-one percent) of the EMPLOYEES who have accepted these
     REGULATIONS.

10.5. Neither the COMPANY nor any of the EMPLOYEES may transfer, totally or
     partially, the rights and obligations deriving from these REGULATIONS,
     except obviously the cases of transfer because of death.

10.6. Any information relative to the Plan, or to the agreements relative to
     individual recipients, is of a strictly confidential nature and reserved
     and accordingly may not be divulged, stated, and/or transferred in any
     manner to the other EMPLOYEES or to third persons for the entire duration
     of the Plan and for three years thereafter, except for any obligations of
     law.

ARTICLE 11 APPLICABLE LAW

11.1. These REGULATIONS and, accordingly, also all rights relative to the
     OPTIONS are regulated by Italian law and must be interpreted on the basis
     thereof.

ARTICLE 12 ARBITRATION

12.1. Any controversy between the COMPANY, on the one hand, and every EMPLOYEE
     (his successor or assign), on the other, deriving from these REGULATIONS
     and from the agreements accessory thereto (including any controversy
     relative to the validity, interpretation, and
<PAGE>
     application of the present arbitration clause) will be decided immediately
     by ordinary arbitration of right developed by a board of three arbitrators
     appointed as follows.

     The first Arbitrator will be appointed by the Party initiating the
     arbitration proceedings by means of notified act with invitation to the
     other Party to proceed with appointment of its own. The Party to which the
     invitation is directed must notify within the following 20 days the
     personal particulars of the Arbitrator appointed by it. The third
     Arbitrator, who will assume the charge of Chairman of the Arbitration
     Board, will be designated by mutual agreement by the first two Arbitrators
     already appointed by the Parties within 20 days of the appointment of the
     second Arbitrator or, lacking said agreement, by the Presiding Judge of the
     Court of Florence. The latter will also designate (upon request of the
     petitioning party) (i) the second Arbitrator if the Party who was to assume
     said designation has failed to show up on the date indicated above; and
     (ii) the person called to replace any Arbitrator who has failed to show up
     or has not accepted the charge, but only in the event in which said
     replacement has not been made by the Party that is due to provide it or, in
     the case of the Chairman, by the other two Arbitrators within 20 days from
     the date on which said Arbitrator failed to show up.

     The decision of the Arbitrators will be made according to law pursuant to
     the applicable rules of law and will have the force and effect of a
     judicial decision between the Parties in conformity with the applicable
     provisions of the Code of Civil Procedure.

12.2. The arbitration proceeding will be based in Florence.

12.3. With reference to proceedings vis-a-vis the COMPANY and several EMPLOYEES,
     the latter will be considered jointly as a single party for the purposes of
     the arbitration proceeding.

12.4. The expenses of the arbitration proceeding will be for the account of the
     Parties in accordance with the applicable decisions of the arbitration
     board.
<PAGE>
ATTACHMENT TO REGULATIONS OF THE "2004-2005 EMPLOYEE INCENTIVE PLAN" HAVING
COMMON SHARES OF THE COMPANY El.En S.p.A. AS OBJECT

Societa

El.En. S.p.A.
Via Baldanzese, 17
Calenzano (FI)

Attention: Mr. __________________

                                                    [Calenzano]

Hereby, in accordance with and for the purposes of Article 3 of the Regulations
of the 2004-2005 Employee Incentive Plan, I am forwarding you the Communication
of Exercise for ____________ Options assigned to me, providing for the payment
of the Subscription Price according to the Regulations themselves.

Accordingly, please provide for the issue of the Shares due to me in accordance
with the Options hereby exercised, according to the Regulations.

Best regards.

                                                                    The employee<PAGE>

                                                                   Exhibit 10.13

                                                             (G MED LOGO)

       ACT OF ASSIGNMENT OF OPTIONS UNDER THE PROVISIONS OF THE "2006-2007
                            EMPLOYEE INCENTIVE PLAN"

Dear Sir:

            MICHAEL DAVIN

DELIVERED BY HAND

Registration Number:

    On May 13, 2005 the Board of Directors of El.En. S.p.A. voted to assign to
you the Options specified below upon the terms and conditions as incorporated
from the regulations of the "2006-2007 Employee Incentive Plan" approved by the
Board of Directors as of such date.

<Table>
<S>                                  <C>                    <C>
No. Of Options                       20,000 (each Option carries the right, upon payment of the Underwriting
                                     Price, to underwrite One Share of El.En. S.p.A.)

Assignment Date                      May 13, 2005

Subscription Price                   E 24.23 (twenty-four point twenty-three Euro)

Deadline for exercise of             with respect to        Notification of Exercise of the Option must be
option on penalty of                 10,000 Options         received by the Company between May 15, 2006 to
cancellation                                                July 16, 2007

                                     with respect to        Notification of Exercise of the Option must be
                                     10,000 Options         received by the Company between May 15, 2007 and
                                                            July 16, 2007
</Table>

    The provisions of the "Rules of the 2006-2007 Incentive Plan" with respect
to "ordinary shares of El.En. S.p.A." stock shall be applicable to all other
matters not contemplated herein.

    Please return a copy of this document signed to acknowledge acceptance.

    Very truly yours,

     /s/ Gabriele Clementi
    -------------------------------
    The Chairman of the Board of Directors
           Ing. Gabriele Clementi

<PAGE>

    The undersigned Michael Davin, as an employee of Cynosure Inc, a subsidiary
of El.En. S.p.A.

                               EXPRESSLY DECLARES

    (a) that as a premise and essential condition of the aforesaid assignment,
    he accepts all of the provisions contained in the Rules of the 2006-2007
    Incentive Plan in favor of the employees of the El.En Group approved by the
    Board of Directors on May 13, 2005;

    (b) that he shall undertake to respect all of the provisions of the Rules of
    the 2006-2007 Incentive Plan;

    (c) that he is well aware of the contents of the Rules of the 2006-2007
    Incentive Plan;

    (d) that he is well apprised of the risks connected with the operation as
    governed by the Rules of the 2006-2007 Incentive Plan, and that he has
    carefully considered the same.

          Sincerely yours,

    for acceptance

    Date       9/27/05
         -----------------

                                                          /s/ Michael Davin
                                                      --------------------------
                                                          [Employee Signature]

<PAGE>

        RULES FOR THE "2006-2007 EMPLOYEE INCENTIVE PLAN" WITH RESPECT TO
                THE ORDINARY SHARES OF EL.EN-JOINT-STOCK COMPANY

                                    PREMISES

The premise and objective of these Rules and of the Incentive Plan subject
thereto is that of involving certain employees (the "EMPLOYEES" as hereinafter
defined) of the GROUP (as hereinafter defined) in the future economic and
strategic development of said Group, by allowing said EMPLOYEES to share in the
benefits, not solely economic, of such development. More particularly, the
present Incentive Plan is primarily intended to provide incentives to the
EMPLOYEES of the COMPANY (as hereinafter defined) and, secondarily, to maintain
a relationship of collaboration between the EMPLOYEES and the GROUP, so as to
consolidate the technical and technological capabilities developed by the GROUP,
thus enabling the COMPANY to enjoy the internal stability which is necessary if
it is to successfully overcome the challenges of a marketplace that is
continually growing and evolving especially in terms of competition; and,
furthermore, to grow through the industrial and managerial phase that followed
the expansion of the Company and its listing on the public stock exchange.

                                      * * *

ARTICLE 1         INCENTIVE PLAN OBJECTIVES

1.1.     The option rights governed herein (hereinafter defined as the
         "OPTIONS") shall be assigned in conformity with the provisions: (i) of
         the resolution of the Extraordinary Assembly of July 16 (sixteen), 2002
         (two thousand two) (hereinafter defined as the "APPROVAL RESOLUTION")
         of the company El.En., a Joint-Stock Company (hereinafter defined as
         the "COMPANY"), that conferred on the Board of Directors the
         authorization, under Article 2443 of the Civil Code, of effecting an
         increase in the social capital up to a maximum nominal amount of
         124,800 (one hundred twenty-four thousand eight hundred) Euro to be
         used for purposes of a plan of incentives in favor of the employees of
         the Company and of the subsidiaries controlled by it (hereinafter
         defined as the "GROUP"); (ii) of the resolution of the Board of
         Directors of the COMPANY adopted on May 13 (thirteen), 2005 (two
         thousand five), which, in implementation of the APPROVAL RESOLUTION,
         effected an increase in the social capital up to a total maximum
         nominal amount of 72,800 Euro; and (iii) of any other resolutions
         increasing the social capital that may be adopted by the Board of
         Directors in execution of the APPROVAL RESOLUTION. The assignment of
         the OPTIONS and of the rights and obligations with respect thereto is
         subject to the conditions established by the present rules (the
         "RULES").

ARTICLE 2         ASSIGNMENT OF THE OPTIONS FOR THE UNDERWRITING OF THE SHARES

2.1.     The OPTIONS subject to these RULES shall be assigned exclusively in
         favor of the class of Directors, Senior Management and Employees of the
         GROUP - as personnel of the GROUP itself - who, at the time of the
         assignment, enjoy a work relationship with one of the companies of the
         GROUP (hereinafter severally defined as "EMPLOYEES" and each
         individually defined as an "EMPLOYEE").

<PAGE>

2.2.     The Board of Directors of the COMPANY, in conformity with the powers
         conferred upon it by the extraordinary assembly of the COMPANY met on
         July 16 (sixteen), 2002 (two thousand two), and within the maximum
         limits established by said assembly, shall have and has wide discretion
         to determine: (i) which EMPLOYEES shall receive assignment of the
         OPTIONS, (ii) the number of OPTIONS to be assigned to each EMPLOYEE,
         (iii) the terms and conditions for the exercise of the OPTIONS, all in
         application of the RULES herein.

2.3.     The EMPLOYEES who are holders of the OPTIONS shall have the right to
         underwrite one share of the COMPANY for each of the OPTIONS assigned to
         them, and have normal entitlement thereof, upon payment of the
         UNDERWRITING PRICE (as hereinafter defined) with respect to which the
         portion which exceeds the nominal value shall be considered as paid-in
         surplus.

2.4.     The OPTIONS shall be awarded gratis to the EMPLOYEES, except for a
         resolution to the contrary of the Board of Directors.

2.5.     The OPTIONS and all of the rights vested in such option rights, shall
         be considered strictly personal, nominal, not transferable and
         non-negotiable (without prejudice to their assignment in case of death,
         but always within the limitations of the present RULES), and therefore
         cannot be subjected to liens or used as collateral for debts or
         contractual guarantees undertaken by each of the EMPLOYEES with respect
         to the GROUP or with respect to third parties.

ARTICLE 3         TERMS FOR THE EXERCISE OF THE OPTIONS

3.1.     The EMPLOYEES holders of OPTIONS shall have the right to exercise said
         OPTIONS and to underwrite the respective shares in the manner and under
         the terms and conditions specified by these RULES and in particular by
         this Article 3, as amended from time to time by additional terms
         contained in resolutions that the Board of Directors may consider it
         opportune to adopt from time to time.

3.2.     In the event that an EMPLOYEE should desire to exercise the OPTIONS, he
         or she shall notify the COMPANY in writing, by filling out the
         notification form attached to these RULES as Annex "A", including the
         exercise of the respective OPTIONS and his or her commitment to
         underwrite the number of shares corresponding to the OPTIONS, and
         payment of the UNDERWRITING PRICE (such notification is hereinafter
         defined as the "NOTIFICATION OF EXERCISE").

3.3.     The OPTIONS may be exercised in one or more 'packets' in accordance
         with the terms voted on from time to time by the Board of Directors,
         which with every assignment of the OPTIONS shall also specify the
         period of time within which the NOTIFICATION OF EXERCISE with respect
         to the OPTIONS assigned from time to time must be communicated to the
         COMPANY.

3.4.     At the time of the exercise of the OPTIONS, the EMPLOYEES shall be
         obligated to pay into the treasury of the COMPANY the UNDERWRITING
         PRICE for each of the SHARES to be underwritten. The UNDERWRITING PRICE
         shall be determined by the Board of

<PAGE>

         Directors in full conformity with the provisions prescribed by the
         Extraordinary Assembly of the COMPANY on July 16 (sixteen), 2002
         (two thousand two).

3.5.     The exercise of the OPTIONS (hereinafter defined as the "EXERCISE OF
         THE OPTIONS") shall be considered to have been validly executed on the
         date that the COMPANY receives the NOTIFICATION OF EXERCISE together
         with the UNDERWRITING PRICE. The underwriting date of the shares
         (hereinafter defined as the "DATE OF EXERCISE") shall be the date
         determined by the Board of Directors.

3.6.     The underwriting of the shares shall take place simultaneously with
         payment to the COMPANY of the whole of the UNDERWRITING PRICE
         (naturally multiplied by the number of SHARES) as determined by the
         Board of Directors at the time of the assignment of the OPTIONS. The
         UNDERWRITING PRICE shall be paid to the COMPANY net commissions and
         other expenses to be paid by the COMPANY. Therefore the EMPLOYEE shall
         pay to the COMPANY such amounts, in conformity with the respective
         administrative and accounting procedures, as the COMPANY shall
         determine.

3.7.     The COMPANY shall make available to the EMPLOYEE all of the shares
         underwritten by said EMPLOYEE as soon as possible.

3.8.     The shares of the COMPANY underwritten by the EMPLOYEES (subsequent to
         the exercise of the OPTIONS) shall yield the same benefits as the
         ordinary shares of the COMPANY on the date of underwriting and shall be
         provided with the current coupons as of said date.

3.9.     In the event that the NOTIFICATION OF EXERCISE shall not have been
         received by the COMPANY within the period prescribed by the Board of
         Directors for the exercise of the assigned options, or in the event of
         the failure to pay the whole of the UNDERWRITING PRICE to the COMPANY
         on the part of the EMPLOYEE within the period prescribed by the
         preceding Article 3.6, the EMPLOYEE shall definitively lose the right
         to exercise the OPTIONS assigned to him or her and the option rights
         with respect to the OPTIONS shall be considered definitively annulled
         with the consequent release from the commitments undertaken by the the
         COMPANY and by the individual EMPLOYEE.

ARTICLE 4         CONDITIONS GOVERNING THE OPTIONS IN THE EVENT OF THE
                  TERMINATION OF THE WORK RELATIONSHIP

4.1.     The right to exercise the OPTIONS shall be subordinate to the
         employment status of the EMPLOYEE with the GROUP on the date of
         reception of the NOTIFICATION OF EXERCISE.

4.2.     Therefore it is understood that, if within the period between (i) the
         date of the assignment of the OPTIONS and (ii) the date of the
         reception of the NOTIFICATION OF EXERCISE, subject to the terms
         provided for by these RULES, or by the deadline for the exercise of the
         option right, as determined by the Board of Directors (hereinafter
         defined as the "DEADLINE"), the work relationship between the EMPLOYEE
         and the GROUP should cease to exist due to the resignation of the
         EMPLOYEE or due to dismissal for just cause or in any case for default
         attributable to the EMPLOYEE, the EMPLOYEE shall definitively lose his
         or her right to exercise all of the OPTIONS assigned to the same under
         the provisions

<PAGE>

         of these RULES, with the consequent annulment of his or her respective
         right to underwrite the shares. The annulment of the aforesaid rights
         shall be automatic, without obligation of notification or of any other
         formality, and shall be effective as of the time of the termination of
         the work relationship itself, which by express covenant shall be the
         date of the beginning of any period of prior notice.

4.3.     It shall be understood that, if during the period between (i) the date
         of the assignment of the OPTIONS and (ii) the DEADLINE, the work
         relationship between the EMPLOYEE and the GROUP should cease to exist,
         due to (a) death or (b) a degree of invalidity such as to not permit
         the continuation of the work relationship or (c) the dismissal of the
         EMPLOYEE, for different reasons than those indicated in the preceding
         Article 4.2, the EMPLOYEE and/or the successors and assigns of said
         EMPLOYEE shall have the right to exercise all of the OPTIONS assigned
         to the EMPLOYEE under the present RULES. The exercise of the OPTIONS
         shall not be executed in a manner other than that provided for in the
         present RULES and different from that provided for from time to time by
         the Board of Directors with respect to the assignment of the OPTIONS.

ARTICLE 5         PROHIBITIONS WITH RESPECT TO THE SHARES

5.1.     The Board of Directors of the COMPANY has and shall have the authority
         to enact by means of its own resolution prohibitions regarding the
         circulation of the shares that are subject to the assigned OPTIONS.

ARTICLE 6         EXTRAORDINARY OPERATIONS OF THE COMPANY

6.1.     The Board of Directors, in its exclusive judgment, shall have the
         authority to revise, in complete respect of the law, of the procedures
         and conditions with respect to the exercise of the OPTIONS, in the
         event of extraordinary operations such as, for illustrative purposes
         only:

(i)      free increase of capital;

(ii)     increase of capital paid for with the issuance of options for new
         shares, including service of convertible bonds either with warrant or
         with service of warrants valid for their underwriting, and in any case
         all of the operations on the capital and/or reserves that give rise to
         the issuance of a negotiable right;

(iii)    reductions due to losses;

(vi)     operations of merging or splitting of the COMPANY;

(v)      distribution of extraordinary dividends of the shares;

(vi)     reductions of the capital by means of cancellation of shares, except
         for any shares held by the COMPANY;

(vii)    any Public Offerings for Purchase or Exchange.

<PAGE>

ARTICLE 7         COMMUNICATIONS

7.1.     All communications among the COMPANY and the EMPLOYEES with respect to
         the present RULES shall be in writing and delivered by registered
         letter with return receipt, or by registered letter delivered by hand
         with receipt of delivery signed by the addressee, and they shall be
         deemed to have been validly effected upon the date of reception by the
         addressee. Those communications sent to the COMPANY shall be sent to
         the address of its legal domicile to the attention of the Chairman of
         the Board of Directors, and those communications sent to each EMPLOYEE
         shall be sent to the address provided by the respective EMPLOYEE and in
         the absence of said address to the address known to the COMPANY at the
         time of the termination of the work relationship.

ARTICLE 8         ACCEPTANCE OF THE PRESENT RULES

8.1.     Signature of the present RULES shall entail the full acceptance of all
         of the provisions, conditions and terms fixed and regulated by the said
         RULES.

ARTICLE 9         CHANGES IN RETIREMENT AND TAX REGULATIONS

9.1.     In the event that, due to intervening amendments to the present
         retirement and tax regulations and of any other applicable regulations
         or changes in the respective interpretation or application thereof, the
         enactment of the present RULES should entail additional
         retirement-related, tax or other responsibilities on the part of the
         COMPANY, the present RULES may be amended or annulled by the COMPANY
         with respect to the part that has not yet been executed, and this shall
         not give the affected parties any right to indemnification or to
         compensation for the OPTIONS which have not yet been assigned or
         exercised.

ARTICLE 10        MISCELLANEOUS

10.1     It is expressly covenanted that the participation of the EMPLOYEE in
         the OPTION assignment program subject of the present RULES does not
         constitute, nor does it confer any right or expectation or claim of any
         kind whatsoever, including in the future, with respect to or in
         connection with the work relationship of the EMPLOYEE. Said work
         relationship shall continue to be governed by the existing laws and
         covenants.

10.2     All of the time periods provided for in the present RULES shall be
         understood to be absolute, except that in the event that a period falls
         on a non-working day in Italy, said period shall be automatically
         deferred to the immediately following work day.

10.3     With the acceptance of the present RULES the EMPLOYEES declare and
         acknowledge jointly with the COMPANY that the present RULES supersede
         and replace any preceding negotiations or understanding between the
         COMPANY and the EMPLOYEES whether oral or written with respect to the
         incentive plans as generally understood.

<PAGE>

10.4     Without prejudice to the provisions of the present RULES, changes to
         the present RULES may be effected only in writing and shall have the
         approval of the COMPANY on the one hand and by a number of EMPLOYEES at
         least equal to 51% (fifty-one per cent) of the EMPLOYEES who have
         accepted the present RULES.

10.5     Neither the COMPANY nor any of the EMPLOYEES shall be able to transfer
         in whole or in part the rights and obligations provided for by the
         present RULES, except for transfers, evidently, that are due to death.

10.6     Every information with respect to the Plan, or to the covenants with
         the individuals affected, shall be of a confidential and private nature
         and therefore shall not be disclosed, communicated and/or transmitted
         in any manner to other EMPLOYEES or to third parties for the entire
         duration of the Plan and for the three subsequent years, without
         prejudice to the obligations imposed by law.

ARTICLE 11        APPLICABLE LAW

11.1.    The present RULES and consequently all of the rights with respect to
         the OPTIONS shall be governed by Italian law and shall be interpreted
         on the basis thereof.

ARTICLE 12        ARBITRATION

12.1.    Any dispute arising between the COMPANY on the one hand, and each of
         the EMPLOYEES (his or her successors or assignees), on the other,
         arising out of the present RULES and from the covenants accessory
         thereto (including any dispute regarding the validity, interpretation
         and application of the present arbitration clause) shall be settled by
         means of legal arbitration procedure effected by a board of three
         arbiters appointed as follows.

         The first Arbiter shall be appointed by the Party that calls for the
         arbitration decision by means of a notification inviting the other
         Party to appoint its respective arbiter. The Party to whom the
         invitation is addressed shall provide notification of the identity of
         the Arbiter appointed by it no later than twenty days from such
         invitation. The third Arbiter, who shall assume the role of Chairman of
         the Board of Arbitration, shall be appointed by the joint consent of
         the first two Arbiters previously appointed by the Parties no later
         than twenty days after the appointment of the second Arbiter, or, in
         the absence of such joint consent, by the President of the Court of
         Florence. The latter shall (upon request of the Party initiating the
         petition) shall also designate (i) the second Arbiter in the event that
         the Party who had the obligation to make such appointment has not
         provided therefore by the aforesaid deadline; and (ii) the person
         called upon to replace any Arbiter who has failed to respond or who has
         not accepted the appointment, but only in the event in which said
         replacement has not been made by the Party obligated to provide
         therefor, or, in the case of the President, by the other two Arbiters
         within 20 days from the date on which said Arbiter fails to appear.

<PAGE>

         The decision of the Arbiters shall be taken in a legal manner in
         conformity with the applicable legal norms and shall have the validity
         and effect of a judicial decision between the Parties under the
         applicable provisions of the Code of Civil Procedure.

12.2.    The arbitration proceedings shall take place in Florence.

12.3.    With respect to proceedings involving the COMPANY and more than one
         EMPLOYEE, the latter group shall be considered as a single Party for
         purposes of the arbitration.

12.4.    The arbitration proceeding expenses shall be borne by the Parties in
         accordance with the applicable resolutions of the board of arbitration.

<PAGE>

ADDENDUM A TO THE RULES OF THE "2006-2007 EMPLOYEE INCENTIVE PLAN" REGARDING THE
ORDINARY SHARES OF THE COMPANY El.En. S.p.A

El.En. S.p.A..

Via Baldanzese, 17

Calenzano (FI)

to the attention of Mr.

                                               [Calenzano] ------------

Under the provisions and for purposes of Article 3 of the Rules of the 2006-2007
Employee Incentive Plan, I hereby forward to you the Notification of Exercise
for ____________ Options assigned to me, including the payment of the
Underwriting price under the provisions of the said Rules.

I hereby request that you kindly proceed to issue the Shares due to me in
correspondence with the Options exercised hereby, as provided for by the Rules.

Very truly yours,

                                                                    The Employee

                                                            --------------------

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