Document:

Exhibit 4.9

 

Luxottica Group S.p.A.

2006 Stock Option Plan

 

Luxottica Group S.p.A., an Italian corporation (the “Company”), has adopted on June 14, 2006 the Luxottica Group S.p.A. 2006 Stock Option Plan (the “Plan”).

 

1.    Purpose.    The purpose of the Plan is to enable the Company and its direct and indirect subsidiaries throughout the world to attract, retain, and reward key employees (“Key Employees”) by offering them an opportunity to have a greater proprietary interest in, and closer identity with, the Company and its Subsidiaries (as defined below), and with their financial success, by granting them an option (“Option”) to purchase the Company’s Ordinary Shares (“Ordinary Shares”). Proceeds received by the Company from the sale of Ordinary Shares pursuant to Options shall be used for general corporate purposes. The term “Subsidiary” shall mean any entity more than 50 percent of the ownership of which is controlled directly or indirectly by the Company.

 

2.    Administration.    The Plan shall be administered by the Board of Directors (“Board”) of the Company, in accordance with and subject to the express provisions of the Plan and the guidelines, if any, approved by the Company’s shareholders, as in effect from time to time (“Shareholder Action”). Subject to the foregoing, the Board may interpret the Plan, prescribe, amend and rescind rules and regulations relating to it, determine Option grants and the terms and provisions of Participants’ Option Agreements (which need not be identical), and make such other determinations as it deems necessary or advisable for the administration of the Plan. The Board may delegate the implementation and management of the Plan to such employees or officers of the Company as the Board determines, other than any such delegation as would cause Options or other transactions under the Plan to cease to (A) be exempt from Section 16(b) of the Exchange Act, or (B) satisfy the “independent director” requirements of the New York Stock Exchange Rules. The decisions of the Board and its delegate(s) under the Plan shall be conclusive and binding. No member of the Board or any of its delegate(s) shall be liable for any action taken or determination made in good faith. The exercise of any Options shall be subject to the completion of all requisite corporate actions and the obtaining of all necessary governmental approvals to authorize the issuance of the Ordinary Shares issuable upon such exercise in accordance with applicable law.

 

3.    Eligibility.    The Board shall determine, within the limits of the express provisions of the Plan and any Shareholder Action, those Key Employees to whom, and the time or times at which, Options shall be granted. Each Key Employee who has been selected by the Board to receive Options shall become a “Participant” in the Plan. Subject to the provisions of the Plan, all Shareholder Action and local law, the Board also shall determine the number of Ordinary Shares to be subject to each such Option, the duration of each Option, the exercise price under each Option, the time or times within which (during the term of the Option) all or portions of each Option may be exercised, and any other terms and conditions of such Options. In making such determinations, the Board may take into account the nature of the services rendered by the Key Employee, his present and potential contributions to the success of the Company and its Subsidiaries, and such other factors as the Board, in its sole discretion, deems relevant.

 

4.    Ordinary Shares.

 

(a)   The number of Ordinary Shares that may be subject to Options under the Plan may not exceed 20,000,000. In the event that any Option granted under the Plan expires unexercised, or is terminated, surrendered or canceled without being exercised, in whole or in part, for any reason, then the number of Ordinary Shares theretofore subject to such Option, or the unexercised, terminated, surrendered, forfeited, canceled or reacquired portion thereof, shall be added to the remaining number of Ordinary Shares that may be made subject to Options under the Plan.

 

(b)   The maximum number of Ordinary Shares that may be subject to Incentive Stock Options under the Plan may not exceed 10,000,000.

 

5.    Options.    The following provisions shall apply to each Option granted under the Plan:

 

(a)    Option Agreement.    Each Option shall be evidenced by a written agreement (the “Option Agreement”) specifying the Option exercise price, the terms for payment of the exercise price, the duration of the Option, and the number of Ordinary Shares to which the Option pertains. An Option Agreement also may contain such other restrictions, conditions and terms as the Board shall determine in its sole discretion, subject to the terms and conditions of the Plan and any Shareholder Action. Option Agreements need not be identical.

 

(b)    Exercise Price.    The per share exercise price of each Option shall be specified in the applicable Option Agreement, provided that the per share exercise price shall be the Fair Market Value of an Ordinary Share on the date

 

 

the Options are granted (the “Grant Date”). For purposes hereof, “Fair Market Value” means the market value of a share on the Milan Stock Exchange, as determined in accordance with Italian law; provided, however, that with respect to United States employees only, “Fair Market Value” means the higher of (i) the market value of a share on the Milan Stock Exchange, as determined in accordance with Italian law, or (ii) the closing price of a share on the Milan Stock Exchange on the trading day before the Grant Date.

 

(c)    Grant Date.    An Option shall be deemed to be granted as of, and the Grant Date shall be deemed to be, the date the grant of a specified number of Options to a specified Participant is approved by the Board.

 

(d)    Incentive Stock Options Permitted.    Options may, but need not, be “Incentive Stock Options” under Section 422 of the United States Internal Revenue Code of 1986, as amended (including any replacement or successor thereto, the “Code”); provided, however, that (i) Incentive Stock Options will be exercisable not later than 9 (nine) years after the date of grant, and (ii) in the case of an Incentive Stock Option granted to a Participant who, at the time of grant, owns (as defined in Section 425(d) of the Code) stock of the Company or its Subsidiaries possessing more than 10% of the total combined voting power of all classes of stock of any such corporation, the exercise price shall be at least 110% of the fair market value of the Ordinary Shares subject to the Incentive Stock Option at the time it is granted, and the Incentive Stock Option, by its terms, shall not be exercisable after the expiration of five (5) years from the date of its grant. The aggregate fair market value (determined as of the Grant Date) of the Ordinary Shares with respect to which Incentive Stock Options are exercisable for the first time by a Participant during any calendar year (under all Incentive Stock Option plans of the Company and its Subsidiaries) shall not exceed U.S. $100,000.

 

6.    Vesting of Option Rights.

 

(a)   The right to exercise an Option shall vest according to the terms of the applicable Option Agreement; provided, however, that the Board, in its discretion, shall have the power to accelerate the dates for exercise of any or all Options, or any part thereof. The term “Vested Option Rights” shall mean a Participant’s rights to exercise the Option that have vested pursuant to this Section 6 and the applicable Option Agreement.

 

(b)   An Option will become exercisable as of the date of a Change in Control of the Company. For purposes of the Plan, a “Change in Control” of the Company shall be deemed to occur only if, as a result of any transaction involving the sale of all of the assets of the Company or the sale of any stock of the Company or of any entity that directly or indirectly holds any stock of the Company, neither Leonardo Del Vecchio, nor any member of his family, nor any trust or other entity for the benefit of such person, nor any combination of such persons or entities, shall hold, directly or indirectly, the right to elect a majority of the members of the Board of the Company, or, if another corporation or entity then holds the assets of the Company, the right to elect a majority of the directors of such corporation or the power to direct the management of such other entity. Notwithstanding the foregoing, a Change in Control shall not be deemed to have occurred upon or by virtue of the making or consummation of any public offering of any debt or equity securities of the Company or of any entity that directly or indirectly holds any beneficial interest in any stock of the Company.

 

7.    Effective Date of Plan; Maximum Term; and Cancellation of Unexercised Options.    The Plan shall be effective as of the date approved by the shareholders (the “Effective Date”). No Option shall be granted for a term of more than 9 (nine) years from the date of grant, no Option shall be granted for a term that expires after June 14, 2021, and no Incentive Stock Option shall be granted after the expiration of ten years from the Effective Date. Failure to exercise the Option within the prescribed term will result in expiration of the Option. Except as specifically provided in the applicable Option Agreement, if the Participant’s employment is terminated for any reason, the Option, including, without limitation, Vested Option Rights, shall terminate immediately upon the effective date of such termination.

 

8.    Method of Exercise of Options.    Any Vested Option Rights under the Plan may be exercised by a Participant, by a legatee or legatees of such Vested Option Rights under the Participant’s last will, or by his executors, personal representatives or distributees, as provided in Section 11 below, by delivering written notice of the number of Ordinary Shares with respect to which the Option is being exercised, accompanied  at the latest by the date the exercise is effective (if it has been postponed according to the terms of such notice) by full payment to the Company of the exercise price of the shares being purchased under the Option, and by satisfying all other conditions provided for in the Plan, the applicable Option Agreement and any and all rules, guidelines and forms prescribed by the shareholders, the Board, or their respective designees. Such payment may also be made, in the name of the Participant,  by the intermediary appointed by the Company to implement the Plan.  A Participant (or his legatees, executors, personal representatives or distributees) may exercise a portion of his Vested Option Rights under the Plan, provided, however, that the Board or its designees may specify a minimum number of Ordinary Shares with respect to which the Vested Option Rights may be exercised.

 

The Company shall issue a number of Ordinary Shares issuable pursuant to the exercise of any Option. Upon request of the Participant, the Company will arrange for the conversion of such Ordinary Shares into American

 

 

Depositary Shares (“ADSs”) representing an equal amount of such Ordinary Shares, as soon as reasonably practicable after such exercise. The Ordinary Shares or the ADSs, as the case may be, shall be registered in the name or for the account of, and delivered to or for the account of, the Participant (or, if applicable, the legatee(s), executor(s), personal representative(s), or distributee(s) of a deceased Participant).

 

9.    Terms and Conditions of Options.

 

(a)   Each Participant, and each other person described in Section 11, shall agree to such restrictions and conditions and other terms in connection with the exercise of an Option, including restrictions and conditions on the disposition of the ADSs acquired upon the exercise thereof, as the Board may deem appropriate and as are set forth in the applicable Option Agreement or in the Plan.

 

(b)   The obligation of the Company to sell and deliver Ordinary Shares or ADSs under the Plan shall be subject to all applicable laws, regulations, rules and approvals. Neither a Participant, nor any other person described in Section 11, shall have any rights as a shareholder with respect to any Ordinary Shares or ADSs covered by an Option granted to, or exercised by, him until the date of registration of Ordinary Shares in the name of the Participant. No adjustment, other than pursuant to Section 10 below, shall be made for dividends or other rights for which the record date is prior to the date indicated above.

 

10.    Adjustments.    Appropriate adjustment in the maximum number of Ordinary Shares subject to Options under the Plan, and, to the extent determined by the Board to be necessary to prevent dilution or enlargement of Participants’ rights, to the number of Ordinary Shares subject to and the Exercise Price of each Option, shall be made to give effect to any increase or decrease in the number of issued Ordinary Shares resulting from a subdivision or consolidation of shares whether through reorganization, recapitalization, stock split, reverse stock split, spin-off, split-off, spin-out, or other distribution of assets to stockholders, stock distributions or combination of shares, assumption and conversion of outstanding Options due to an acquisition by the Company of the stock or assets of any other corporation, payment of stock dividends, other increase or decrease in the number of such shares outstanding effected without receipt of consideration by the Company, or any other occurrence for which the Board determines an adjustment is appropriate. On the basis of information known to the Company, the Board shall make all determinations relating to the applicability and interpretation of this Section 10, and all such determinations shall be conclusive and binding.

 

11.    Nontransferability.    Unless the Board otherwise consents in writing in its sole and absolute discretion, Options granted under the Plan, and any rights and privileges pertaining thereto, may not be transferred, assigned, pledged or hypothecated in any manner, other than by will or by the laws of descent and distribution, and shall not be subject to execution, attachment or similar process. The granting of an Option shall impose no obligation upon the applicable Participant or any other person to exercise such Option.

 

12.    Indemnification of the Board and Its Delegates.    In addition to such other rights of indemnification as they may have as members of the Board, as employees of the Company, or as its delegates, the members of the Board and its delegates shall be indemnified by the Company against (a) the reasonable expenses (as such expenses are incurred), including attorneys’ fees, actually and necessarily incurred in connection with the defense of any action, suit or proceeding (or in connection with any appeal therein), to which they or any of them may be a party by reason of any action taken or failure to act under or in connection with the Plan or any Option granted hereunder; and (b) against all amounts paid by them in settlement thereof (provided such settlement is approved by independent legal counsel selected by the Company) or paid by them in satisfaction of a judgment in any such action, suit or proceeding, except in relation to matters as to which it shall be adjudged in such action, suit or proceeding that such Board member or delegate is liable for gross negligence or misconduct in the performance of his duties. The Company may elect, at its own expense, to handle and defend such action, suit or proceeding.

 

13.    No Contract of Employment.    Neither the adoption of the Plan nor the grant of any Option shall be deemed to obligate the Company or any Subsidiary to continue the employment of any Participant for any particular period, nor shall the granting of an Option constitute a request or consent to postpone the retirement date of any Participant.

 

14.    Termination and Amendment of Plan and Options.

 

(a)   The Board may at any time terminate, suspend or modify the Plan, without the authorization of shareholders to the extent allowed by law.

 

(b)   The Board may modify the terms of any Option, and authorize the exchange or replacement of Options; provided, however, that in no event shall the Board be permitted to reduce the exercise price of any outstanding Option or to exchange or replace an outstanding Option with a new Option with a lower exercise price.

 

 

(c)   No termination, suspension or modification of the Plan or modification, exchange, or replacement of an Option shall adversely affect any right acquired by any Participant, or any other person designated in Section 11, under an Option granted before the effective date of such termination, suspension, modification, exchange, or replacement unless such Participant or other person shall consent; but it shall be conclusively presumed that any adjustment for changes in capitalization as provided for in Section 10 do not adversely affect any such right.

 

15.    Withholding Taxes.    The Company shall have the right to require the Participant or other person to remit to the Company or one or more of its Subsidiaries, or any agent thereof, an amount sufficient to satisfy all federal, state, provincial, local, and any other withholding or other applicable tax requirements at, or after, the time such tax obligation arises and to withhold from any amounts payable to the Participant or other person, as compensation or otherwise, as necessary and at any time.

 

16.    Governing Law; Conflicts.    The Plan shall be construed in accordance with and governed by the laws of the Republic of Italy, except as otherwise required by the laws of the United States or the laws of the jurisdiction where the Participant performs services for the Company or one of its Subsidiaries. In the event of any conflict or inconsistency between the terms of the Plan and any Shareholder Action, the Shareholder Action shall govern.

 

17.    Section 409A.    It is the Company’s intent that the Options not be treated as deferred compensation under Section 409A of the Code (“Section 409A”) (or any regulations or other guidance promulgated thereunder) and that any ambiguities in construction be interpreted so as to effect such intent. Options under the Plan shall contain such terms as the Board or its delegate determines are appropriate to avoid the application of Section 409A.

 

18.    Successors.    In the event of a sale of substantially all of the assets of the Company, or a merger, consolidation or share exchange involving the Company, all obligations of the Company under the Plan with respect to Options granted hereunder shall be binding on the successor to the transaction. Employment of a Participant with such successor shall be considered employment of the Participant with the Company for purposes of the Plan.

 

19.    Fractional Shares.    If at any time the exercise of the Option would, except for this provision, require the issue or transfer of fractional shares, the number of Ordinary Shares or ADSs shall be rounded down to the next whole number.Exhibit 4.37

 

REGULATION

 

OF THE 2013-2017 PERFORMANCE SHARES PLAN RESERVED FOR CERTAIN

EMPLOYEES OF LUXOTTICA GROUP S.p.A. AND ITS CONTROLLED COMPANIES

 

1. SUBJECT AND WARNING

 

The present Regulation defines the criteria to implement the Plan addressed to certain Employees of the Company and of other companies of its group. These Employees will be selected, in accordance with this Regulation,  to encourage these Employees to increase the value of the Company and the Group and, at the same time, to create a retention incentive.

 

The Plan provides, pursuant to the provisions contained herein, the grant of rights to receive Company Shares, on condition that certain performance targets are complied with.

 

The present Regulation was approved by the shareholders’ meeting held on April 29, 2013.

 

This Regulation shall not be considered a “public offer of financial products” as defined by Article 1(1) of Legislative Decree No. 58 of 24 February 1998, because it is subject to the provisions set forth by Article 34ter (1)(m) of Consob Regulation No. 11971 dated 14 May 1999, as modified and amended.

 

2. DEFINITIONS

 

For the purposes of this Regulation: (i) terms and expressions listed below, underlined and capitalized, are explained; (ii) terms and expressions capitalized and not underlined, contained in one or more of the paragraphs of this Article 2 are defined in other paragraphs of the same Article; and (iii) terms and expressions in the plural are also intended to be defined in the singular, and vice versa.

 

2.1                        “Shares”: the ordinary shares of the Company granted to the Beneficiaries that are holders of the Units under the terms and conditions set forth by this Regulation.

 

2.2                        “Beneficiaries”: the Employees of the Company or of the Employing Company that may participate in the Plan, determined by the Board of Directors upon proposal of the Human Resources Committee.

 

2.3                        “Civil Code”: the Italian Civil Code, approved by Royal Decree No. 262 of 16 March 1942, as modified and amended from time to time.

 

2.4                        “Board of Directors”: the pro tempore Board of Directors of the Company, or its directors expressly delegated, who will administer the Plan, taking any relevant decisions and giving execution to this Regulation.

 

2.5                        “Date of Approval”: April 29, 2013, the date of approval of the Plan by the shareholders’ meeting of the Company.

 

2.6                        “Date of Assignment”: date of assignment of the Shares to the Beneficiaries, to occur anytime between the Date of Verification and the thirtieth Business Day thereafter.

 

2.7                        “Date of Grant”: each date on which the Board of Directors grants Units to the Beneficiaries.

 

2.8                        “Termination Date”: with respect to any Relationship, the earlier of: (i) the date of termination of the Relationship; and (ii) the date on which the written communication of termination of the Relationship was sent (by registered letter or fax) or hand-delivered.

 

 

2.9                        “Date of Verification”: the date, which shall be between the date on which the Board of Directors approves the Group’s consolidated balance sheet as of the end of a Reference Period and the fifth Business Day thereafter, on which the Board of Directors will ascertain whether the EPS Target has been achieved.

 

2.10                 “Employees”: the employees of the Company or of the Employing Company.

 

2.11                 “EPS”: the earnings per Share, which may be expressed in US dollars in lieu of Euro, as derived from the Group’s IFRS consolidated balance sheet and equal to the net profit as derived from the relevant balance sheet divided by the average number of Shares outstanding.

 

2.12                 “EPS Target”: the targets set forth by the Board of Directors with respect to each Reference Period and determined by the addition of EPS that may be expressed in US dollars in lieu of Euro for each year included in the Reference Period; achieving the EPS Target will allow the assignment of the Shares.

 

2.13                 “Business Day”: each calendar day excluding Saturdays, Sundays, and the other days on which credit entities do not usually do business in Milan.

 

2.14                 “Group”: the Company and the other Companies directly or indirectly controlled (pursuant to Article 2359 of the Civil Code) by the Company from time to time.

 

2.15                 “Tender Offer”: a takeover bid or an exchange tender offer concerning the Shares of the Company, launched by parties other than the Company.

 

2.16                 “Plan”: the 2013-2017 Performance Shares Plan governed by this Regulation.

 

2.17                 “Reference Period”: three consecutive fiscal years, the first of which includes the Date of Grant, with respect to which the EPS Target will be determined.

 

2.18                  “Relationship”: the existing employment relationship between any Beneficiary and the Company or the relevant Employing Company.

 

2.19                 “United States Person”:  a Beneficiary who is either a United States citizen or a resident alien (as such term is defined for United States Federal income tax purposes).

 

2.20                 “Regulation”: the present regulation, which defines the criteria, the modalities, and the conditions to implement the Plan.

 

2.21                 “Application Form”: the form consistent with the form provided in Annex A that the Company will provide to each Beneficiary, together with the annexed Regulation that will form an integral part of it. The Application Form will indicate the number of Units relevant to the Reference Period. By signing and delivering the Application Form to the Company, the Beneficiary will convey his/her complete and unconditional agreement to the Plan.

 

2.22                 “Company”: Luxottica Group S.p.A., with registered offices at Via C. Cantù 2, Milan.

 

2.23                 “Employing Company”: each of the companies of the Group with which one or more Beneficiaries have a Relationship.

 

2.24                 “Substitutive Amount”: the amount of money that the Company, at its discretion, may pay to the Beneficiaries instead of the Shares—in whole or in part—to be granted at the Date of Grant, calculated based on the average of the Shares’ official prices on the stock market quoted by Borsa Italiana S.p.A. in the month preceding the Date of Assignment or, if the Shares are no longer listed, on their normal value pursuant to Article 9 of the Presidential Decree No. 917 of 22 December 1986, as determined by an independent advisor appointed by the Company.

 

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2.25                 “Unit”: the right to receive one Share under the terms and conditions set forth in this Regulation.

 

3. CRITERIA AND METHODS TO DETERMINE THE BENEFICIARIES AND GRANT THE UNITS

 

3.1                        The Beneficiaries and the maximum number of Units which can be granted to each of them will be determined by the Board of Directors in its complete and sole discretion, upon proposal of the Human Resources Committee, having taken into account the position held within the Group and the potential growth of their respective business or function, in relation to the objectives of value increase for the Company as well as that for the Group, as represented by the EPS Target.

 

3.2                        The Board of Directors may grant Units to the Beneficiaries, pursuant to the Plan and this Regulation, within the period beginning on the Date of Approval and ending on December 31, 2017.

 

3.3                        The Board of Directors may grant to Beneficiaries a maximum number of 10,000,000 Units, which may correspond to the assignment of a maximum of 10,000,000 Shares. Each series of three-year grants may cover a maximum of 2,500,000 Units.

 

4. ADHESION TO THE PLAN

 

4.1                        The Company will send each Beneficiary this Regulation and the Application Form - the latter shall set forth, inter alia, the number of Units granted - and will also give notice, to each Beneficiary of the EPS Target.

 

4.2                        The Beneficiary must return a copy of this Regulation and the Application Form (duly completed and signed) to the Company (which may be preceded by fax copies) within 30 days from their receipt, under penalty of losing the right to participate in the Plan.

 

4.3                        The Units will be considered granted with retroactive effect to the Date of Grant preceding the date on which the Application Form is returned to the Company duly completed and signed (which is the date on which the Company shall endorse the receipt of the Application Form).

 

5. NATURE AND CHARACTERISTICS OF THE GRANTING OF UNITS

 

5.1                        The Units will be granted free of charge. The Beneficiaries will not be required to pay the Company any amount for this grant. The Units will be granted to the Beneficiaries in their individual capacities, and may not be transferred to any other persons or be subject to encumbrances or dispositions of any other kind.

 

5.2                        Article 7 will apply in case of death of the Beneficiary.

 

5.3                        The Units and every other right deriving therefrom, as well as any general benefits provided by the Plan:

 

5.3.1                represent extraordinary compensation and cannot be considered, in any case, an integral part of the base remuneration of the Beneficiaries. In particular, the number of Units granted to each Beneficiary was determined already taking into account any anticipated impact on the direct and indirect elements of the remuneration provided by law and by the applicable collective and individual agreement in force;

 

5.3.2                do not give grounds for the right to similar or further benefits, within the scope of the Plan or otherwise; and

 

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5.3.3                do not grant to the Beneficiaries, on expiry of the Plan, the right to participate in other possible incentive plans, however implemented, or to other remuneration.

 

5.4                        The Employing Company may grant the Units to the Beneficiaries in compliance with the terms and conditions of the Plan.

 

5.5                        Nothing herein confers or shall confer to the Employee or Beneficiary any right to continue in the employment with an Employing Company nor shall interfere with an Employing Company’s rights to terminate the employment of the Beneficiary in accordance with the applicable law.

 

6. RIGHT TO THE ASSIGNMENT OF SHARES

 

6.1                        The assignment of Shares, up to a maximum number equal to the Units owned by the Beneficiary on the Date of Assignment, is subject to the following conditions:

 

6.1.1           the ownership of the Units on the Date of Assignment; and

 

6.1.2           the total or partial achievement of the EPS Target at the end of the Reference Period.

 

6.2                        At the end of each Reference Period, the Company shall verify the fulfillment of the condition under 6.1.2 above and promptly notify the Beneficiaries of the result of such verification as well as of the number of Shares assigned to each Beneficiary, if any.

 

6.3                        The Company will assign the Shares within 30 Business Days from the Date of Verification, unless the Beneficiary communicates his/her desire, pursuant to Article 12, not to be assigned Shares; provided however that in the case of a Beneficiary who is a United States Person, the Company will assign Shares no later than 75 days after the end of the calendar year that includes the last day of the Reference Period.

 

6.4                        Instead and in substitution of the assignment of the Shares, as provided by the terms and conditions of the Plan, on the Date of Assignment, the Company reserves the right to substitute, in whole or in part, the Shares by paying the Substitutive Amount; provided however that in the case of a Beneficiary who is a United States Person, any such Substitutive Amount will be paid no later than 75 days after the end of the calendar year that includes the last day of the Reference Period. It is agreed that, in the event of termination of the Relationship with right to retain the Units, as provided by Article 7.3, the Company will pay to the Beneficiary the Substitutive Amount, if and to the extent that it is due, provided however that the Company will be - in any case and at the sole option of the Company - allowed to assign Shares in lieu of the Substitutive Amount.

 

6.5                        Each time the Units are granted or the Shares are assigned to the Beneficiaries, the Board of Directors will be entitled to prohibit, for the whole amount or in part, for a specific time period, the transfer of the Shares by those Beneficiaries as determined by the Board of Directors at time the Units are granted or the Shares are assigned.

 

7. REGULATION OF UNITS IN CASE OF TERMINATION OF THE RELATIONSHIP

 

7.1                         In case of termination of the Relationship, should the Termination Date precede the Date of Assignment, the provisions under this Article 7 will apply. In any case of termination of the Relationship, the Board of Directors can derogate from the provisions contained herein, including - if necessary - those provided for under the following paragraphs 7.2 and 7.3, with respect to one or more Beneficiaries, for example by allowing such Beneficiaries to keep all or part of the Units, or providing for the (total or partial) assignment of Shares or of the Substitutive Amount, even when the relevant conditions are not met.

 

7.2                        In case of termination of the Relationship due to: (i) the Beneficiary’s voluntary resignation without cause or not based on one of the reasons set forth in Article 7.3; or (ii) the Beneficiary’s

 

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dismissal for cause or based on a subjective reason, the Beneficiary will definitively forfeit all the Units and, consequently, any right to the assignment of the Shares.

 

7.3                        In case of termination of the Relationship due to: (i) resignation by the Beneficiary presented in order to access to pension; (ii) a permanent disability preventing the Beneficiary from continuing the Relationship; (iii) death of the Beneficiary; and (iv) dismissal without cause or not based on a subjective reason, the Beneficiary (or his/her heirs or legal successors) will have the right to retain a number of Units calculated in proportion to the duration of the Relationship during the Reference Period. The remaining number of Units will be forfeited.

 

7.4                        Where disciplinary notice (pursuant to Article 7 of Law 300/70, if the Relationship is governed by Italian law, or pursuant to other law applicable to the Relationship) is served, the right to the assignment of the Shares will be suspended until receipt of the notice serving the disciplinary measure or the decision by the Company or the Employing Company not to serve any disciplinary notice.

 

7.5                        In case of transfer of the Relationship from the Company or the Employing Company to another Group company and/or in case of termination of the Relationship and subsequent establishment of a new Relationship with another Group company, the Beneficiary will maintain any rights under this Regulation.

 

8. TAX AND SOCIAL SECURITY REGULATIONS

 

8.1                        The value of the assigned Shares or the Substitutive Amount will be subject to tax and social security charges where and in the manner provided by tax regulations in force from time to time. If necessary, the Beneficiary undertakes to provide the Company with the financial provision necessary to carry out any withholding on the Beneficiary’s part under the law, and expressly authorizes the Company to withhold that amount from any amount whatsoever due to the Beneficiary (e.g. the end of service allowance).

 

9. ADJUSTMENTS TO THIS REGULATION IN CONNECTION WITH CERTAIN

 COMPANY EVENTS AND IN CONNECTION WITH A TENDER OFFER

 

9.1                        In cases not specifically regulated by this Regulation (e.g. extraordinary changes to the Company’s capital such as, for example, mergers, splits, reductions of the capital for losses due to cancellation of Shares, reductions of the nominal value of the Shares to cover losses, increases in the Company’s capital, for free or for a fee, grouping or splitting of Shares, as well as legislative or regulatory changes or other events, including management, for example the modification of the accounting principles used to prepare the balance sheet, that may influence the EPS Target and/or the Plan), the Board of Directors, in its discretion and within the limits allowed by the laws in force from time to time, will evaluate and, if appropriate, adopt any amendments and additions to this Regulation and/or to the Units granted, including, for example, to the EPS Target or the Shares that can be assigned, which is deemed necessary or appropriate to maintain the essential and economic contents of the Plan.

 

9.2                        In case a Tender Offer is launched, the Board of Directors will have the right to assign the Shares in advance with respect to the Reference Period and to determine the number of Shares relating to such assignment, taking into account the most recent financial results of the Group available. Should the Company be willing to enforce this provision, it shall communicate to the Beneficiary, by the beginning of the period of participation in the Tender Offer:

 

·                               the decision to assign the Shares in advance;

 

·                               the number of Shares the Beneficiary is entitled to.

 

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The Beneficiary, by means of a communication to be done, under penalty of forfeiture, within the following 5 days, can waive the advance assignment, retaining the Units for the remaining Reference Period, on the same terms as under the Plan; provided however that any Beneficiary who is a United States Person will not have the right to waive the advance assignment of Shares under this Section 9.2.

 

After the expiration of the 5 day term and in case the Beneficiary has not made the communication—all the conditions under the Plan, including the right to substitute the assignment with the Substitutive Amount, being confirmed—the assignment will take place in time for the Beneficiary to adhere to the Tender Offer; provided however that in the case of a Beneficiary who is a United States Person, the Company will assign Shares no later than 75 days after the end of the calendar year that includes the date on which the Board of Directors determines to enforce this provision.

 

9.3                        The grant of Units under the Plan does not, and will not in any way, affect the right or power of the Company to make changes in its capital or business structure, or to merge, consolidate, dissolve, liquidate, sell or transfer all or any part of its business or assets or to engage in any other restructuring transaction whatsoever.

 

10. DURATION OF THE PLAN

 

10.1                 The Plan will be effective beginning on the Date of Approval and ending on December 31,  2017.

 

10.2                 This Regulation will be effective until the last Date of Assignment.

 

11. APPLICABLE LAW

 

11.1                 Any dispute between one or more companies of the Group and one or more Beneficiaries, or their legitimate heirs or successors, arising from or related to the Plan, this Regulation, and the Application Form, will be regulated by Italian law.

 

11.2                 Notwithstanding any provision of this Plan to the contrary, all awards made under this Plan to United States Persons are intended to be exempt from or, in the alternative, comply with Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”), and the interpretive guidance thereunder.  The Plan will be construed and interpreted in accordance with such intent.

 

12. COMMUNICATION AND NOTICE

 

12.1                 Any notice required or permitted by this Regulation will be valid and effective only if in writing and will be considered executed upon receipt, pursuant to Article 1335 Civil Code, if made by letter or telegram, or at the time of acknowledgment of receipt by special statement (even by fax) if made by registered mail or fax, to the following addresses:

 

·                                    as to the Company:

HR Department, Via Cantù 2, Milano

Fax: +39 02.8633.4093

and to

HR Stock Options, Via Valcozzena 10, Agordo

Fax: +39 0437.644416

 

·                                    as to the Beneficiary personally: to the address indicated in the Application Form.

 

It being understood that: (i) in case the above addresses are modified, the Beneficiary must serve the Company with written notice, and, if by the Company, to each Beneficiary, and the delivery of this communication to the addressee will render the amendment effective with respect to the latter;

 

6

 

and (ii) unless otherwise specified by this Regulation, or subsequently in writing from the Company, all the abovementioned communication methods may be alternatively used.

 

7

 

Annex A

 

Application Form

 

2013-2017 PERFORMANCE SHARES PLAN, RESERVED TO CERTAIN EMPLOYEES OF

 LUXOTTICA GROUP S.p.A. AND ITS CONTROLLED COMPANIES

 

YEAR [  ·  ] GRANT

 

Luxottica Group S.p.A.

 

[  ·  ]

 

	
The undersigned                                                             
    	
(“Beneficiary”)
    
	
Born in                                                                            
    	
on                                                                                  
    
	
Resident in                                                                      
    	
Address                                                                         
    
	
Telephone number                                                          
    	
Fiscal code                                                                    
    

 

	
Declares
    	
 
    	
having received, read, and fully understood the   Regulation of the Plan and the EPS Target, which constitute an integral and   substantial part of this Application Form and which are intended to be   reproduced hereby (including the definitions and terms and expressions used   therein) and to fully accept their terms and conditions, by signing the   Application Form, the copy of the EPS Target, as well as a copy of the   Regulation.
    
	
 
    	
 
    	
 
    
	
Declares
    	
 
    	
to be duly informed that this Application   Form has to be returned to the Company, upon penalty of cancellation of   the right to participate in the Plan, no later than [ ·]   am/pm, on [ ·].
    
	
 
    	
 
    	
 
    
	
Confirms
    	
 
    	
to any effect and under his/her exclusive personal   liability that the above personal data are correct.
    
	
 
    	
 
    	
 
    
	
Confirms
    	
 
    	
to be informed and to accept that, should this   Application Form not be fully completed or undersigned, the Application   Form will not have any effect pursuant to Article 1326 (4) of   the Italian Civil Code.
    
	
 
    	
 
    	
 
    
	
Acknowledges
    	
 
    	
to have been provided by the Company with a number   of Units equal to [ ·], any of which,   pursuant to the terms and conditions set out in this Application   Form and the Regulation of the Plan, gives the right to be assigned 1   Share.
    
	
 
    	
 
    	
 
    
	
Requires
    	
 
    	
to be confirmed by the Company, by signing a copy of   this Application Form, that it has been received, and the subsequent adhesion   to the Plan.
    

 

	
                              , on                              
    	
 
    
	
 
    	
(Beneficiary)
    

 

Pursuant to Articles 1341 and 1342 of the Italian Civil Code, the Beneficiary specifically accepts clauses 5, 7, 9 and 11 of the Regulation.

 

8

 

	
                              , on                              
    	
 
    
	
 
    	
(Beneficiary)
    

 

For receipt of this Application Form and confirmation of adhesion to the Plan:

 

	
                              , on                              
    	
 
    
	
 
    	
(Luxottica Group S.p.A.)
    

 

Pursuant to Article 13 of Legislative Decree No. 196 of June 30, 2003, the personal data submitted at the moment of the signing of this Application Form will be treated, also throughout information technology procedures, for objectives strictly related to the execution of the Plan. Within the scope of such treatment, the Beneficiary is entitled to any right provided by Article 7 of Legislative Decree No. 196 of June 30, 2003. The submission of personal data is requested as strictly related to the execution of the Plan; partial failure of the submission will result in the rejection of the Application Form. The data controller is the Company. To fulfill the abovementioned clause, the Beneficiary gives his/her consent pursuant to Legislative Decree No. 196 of June 30, 2003.

 

	
 
    	
 
    
	
 
    	
(Beneficiary)
    

 

9

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