Document:

EXB 10.4 - 9.30.2014

        
                           Exhibit 10.4
2000 N. M-63   BENTON HARBOR, MI 49022-2692

Fineldo S.p.A.
Via della Scrofa, 64
00186 Rome
Italy

Vittorio Merloni
Franca Carloni
Aristide Merloni
Andrea Merloni
Maria Paola Merloni
Antonella Merloni
Ester Merloni
c/o
Fineldo S.p.A.
Via della Scrofa, 64
00186 Rome
Italy

Fines S.p.A
c/o
Fineldo S.p.A.
Via della Scrofa, 64
00186 Rome
Italy

Milan, July 10, 2014

Re: Exclusivity Agreement

Dear Sirs:

We have received your letter dated July 10, 2014, the contents of which we transcribe herebelow:

“Whirlpool Corporation
2000 North M-63
Benton Harbor, MI 49022-2692
U.S.A.
Attention of: Mr. Jeff Fettig, Mr. Marc Bitzer, Mr. Carl-Martin Lindahl

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Milan, July 10, 2014
 
Re: Exclusivity Agreement

Dear Sirs:
We hereby propose the following agreement to you: 

EXCLUSIVITY AGREEMENT 
(the “Exclusivity Agreement”)
Whereas
		
	(a)
	On the date hereof, simultaneously with the execution of this Exclusivity Agreement, Whirlpool Corporation (“Purchaser”) has entered into: (i) a share purchase agreement with Fineldo S.p.A. (“Fineldo”) (the “Fineldo SPA”) contemplating the acquisition by Purchaser, or any of its Affiliates, of the no. 48,810,000 ordinary shares of Indesit Company S.p.A. (a company incorporated under the laws of Italy, with registered office at Viale Aristide Merloni no. 47, 60044 - Fabriano - Ancona, Italy, VAT code and registration in the Register of Enterprises of Ancona no. 00693740425, “Indesit”), free and clear of any encumbrance, held by Fineldo; (ii) a share purchase agreement (the “Merloni Family Members SPA”) with all of the Merloni Family Members (as defined below) (with the exclusion of Vittorio Merloni, due to pending authorization by the Court of Ancona) contemplating the acquisition by Purchaser, or any of its Affiliates, of the no. 15,549,930 ordinary shares of Indesit, free and clear of any encumbrance, held by Vittorio Merloni, Franca Carloni, Aristide Merloni, Andrea Merloni, Maria Paola Merloni, Antonella Merloni, Ester Merloni, and Fines S.p.A. (the “Merloni Family Members” and, together with Fineldo, the “Relevant Sellers”, and, each of them, a “Relevant Seller”); and (iii) a share purchase agreement with Claudia Merloni (the “Claudia Merloni SPA”) with respect to the acquisition by Purchaser, or any of its Affiliates, of no. 5,027,731 ordinary shares of Indesit, free and clear of any encumbrance, held by Claudia Merloni (each and all of the transactions contemplated by the Fineldo SPA, the Merloni Family Members SPA, and the Claudia Merloni SPA, the “Transaction”).  

		
	 (b)
	Pursuant to the Fineldo SPA and the Merloni Family Members SPA, the closing of the sale and purchase of the Indesit shares held by Fineldo and the Merloni Family Members (the “Closing”) is subject to, inter alia, the Court of Ancona (competent as to the guardianship of Vittorio Merloni) having authorized the favorable vote by Aristide Merloni in his capacity as legal guardian (tutore legale) of Vittorio Merloni at Fineldo’s shareholders’ meeting called upon to authorize the sale of the Indesit shares held by Fineldo pursuant to the SPA with Fineldo mentioned above and the consummation of the transactions contemplated therein by Fineldo (the “Court Authorization”).

NOW, THEREFORE, in consideration of the foregoing and Purchaser’s commitment of significant time, expenses, and other resources in investigating and negotiating the Transaction, the parties agree as follows.
1. Definitions
In this Exclusivity Agreement, terms not otherwise defined shall have the meanings ascribed to them below.
“Affiliate”, which shall be interpreted broadly, means, with respect to any person (soggetto), any individual, corporation or entity directly or indirectly Controlling, Controlled by or under common Control with the first person.
“Alternative Transaction”, which shall be interpreted broadly, means (a) any direct or indirect acquisition or purchase of any voting rights in, or securities of, or interest in, Fineldo, Indesit or any of its subsidiaries, (b) any merger, demerger, consolidation, sale of a material portion of the assets, recapitalization, liquidation, dissolution or other extraordinary transaction involving Fineldo, Indesit or its subsidiaries or (c) any other transaction that could reasonably be expected to impede, interfere with, prevent, materially delay, or limit the economic benefit to Purchaser of, the Transaction including any options or shareholder agreement.
“Control” shall have the meaning set forth in article 93 of the Legislative Decree n. 58/1998, and the terms “Controlling” and “Controlled” shall be construed accordingly.

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“Exclusivity Period” means the period beginning on the date hereof and ending on (a) December 31, 2014, if the Court Authorization has been denied; or (b) the earlier of (i) the Closing and (ii) July 31, 2015, otherwise.
“Related Parties” means, with respect to any person (soggetto), its/his/her relatives, in-laws or Affiliates, its/his/her or its/his/her Affiliates’ directors, officers, employees, advisors and/or counsel (as applicable).
“Third-Party Alternative Proposal”, which shall be interpreted broadly, means any inquiry, proposal, or offer received by any of the Relevant Sellers or by any of their respective Related Parties with respect to any Alternative Transaction.
2. Exclusivity
During the Exclusivity Period, none of the Relevant Sellers shall, and the Relevant Sellers shall procure that none of their respective Related Parties shall, directly or indirectly, (a) initiate, solicit or respond to solicitations or inquiries, or encourage any inquiries, discussions, negotiations, offers or proposals regarding, (b) continue, propose or enter into discussions or negotiations with respect to, (c) enter into any agreement or understanding relating to, or (d) otherwise participate in, an Alternative Transaction, or (e) provide any information to any third party for the purpose of making, evaluating, or determining whether to make or pursue, any inquiries, offers or proposals with respect to, an Alternative Transaction. The Relevant Sellers shall inform Purchaser in writing of, and simultaneously relay to Purchaser all contents (with copies of any written materials received) (including, without limitation, details of the counterparty and its ultimate Controlling person) of, any Third-Party Alternative Proposal within 1 day of receipt.
3. Tender offers
Without prejudice to the provisions of Article 2, Purchaser shall have the right to announce and launch a tender offer on the shares of Indesit at any time following the announcement or launch, by any third party, of a tender offer on Indesit shares.

4. Liquidated damages and indemnification
Should Fineldo breach any of its obligations under Article 2, or should any Related Party of Fineldo (other than a Relevant Seller) perform or omit to perform any act or conduct that Fineldo has undertaken to procure be performed or omitted to be performed, Fineldo shall pay Purchaser Euro 40,000,000 as liquidated damages (penale) or indemnification, as the case may be. The foregoing shall be without prejudice to any additional right or remedy available to Purchaser against Fineldo (including, without limitation, the right to seek additional damages) and any Merloni Family Member breaching this Exclusivity Agreement. The parties expressly acknowledge and agree that the amount of the liquidated damages (penale) and indemnification set forth herein is fair and adequate in all respects.

5. Confidentiality - Public announcements
The Relevant Sellers shall keep, and shall cause their Affiliates, officers, directors, managers, employees and advisors to keep, secret and confidential this Exclusivity Agreement, and all transactions contemplated herein, provided that the Relevant Sellers shall not be in breach of this undertaking by virtue of any disclosure required by Law or by any Governmental Authorities (provided that the Relevant Sellers shall provide the Purchaser, to the extent legally and practically feasible, prompt advance notice of any such requirement and disclosure), made pursuant to arbitration proceedings hereunder, or if necessary to enforce performance of this Exclusivity Agreement or any disclosure to each Relevant Seller’s auditors. Nothing in this Exclusivity Agreement shall prevent the Purchaser from disclosing this Exclusivity Agreement or its content.
6. Sole party, governing law and arbitration
Sections 7.10 (Sole Party), 7.11 (Applicable Law) and 7.12 (Arbitration) of the Merloni Family Members SPA are incorporated herein by reference and shall apply to this Exclusivity Agreement.

*    *    *    *    *
If you agree with the foregoing, please confirm your agreement with the terms and conditions hereof by transcribing in full the text of this letter and returning it to us, initialed on each page and fully signed at the end for acceptance.

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Sincerely,
Fineldo S.p.A.

By /s/ Gian Oddone Merli                

Name: 
Title:

Vittorio Merloni

By /s/ Aristide Merloni NQ              
Name: Aristide Merloni
Title: Guardian of Mr. Vittorio Merloni

Franca Carloni

/s/ Franca Carloni                              

Aristide Merloni

/s/ Aristide Merloni                            

Andrea Merloni

/s/ Andrea Merloni                             

Maria Paola Merloni

/s/ Maria Paola Merloni                     

Antonella Merloni

/s/ Antonella Merloni                         

Ester Merloni

/s/ Glauco Vico Procuratore                

Fines S.p.A.

By /s/ Glauco Vico                              
Name: Glauco Vico
Title: Procuratore”

*    *    *    *    *

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We hereby accept all of the contents of your letter reprinted above.

Sincerely,

Whirlpool Corporation 

By /s/ Marc Bitzer                    

Name: Marc Bitzer
Title: President

5EXB 10.5 - 9.30.2014

Exhibit 10.5

To

Whirlpool Italia Holdings S.r.l.
Viale Guido Borghi 27
21025 - Comerio
Varese (Italy)

Whirlpool Corporation
2000 N. M-63 Benton Harbor
MI 49085 (USA)

Ms. Franca Carloni

Mr. Andrea Merloni

Mr. Aristide Merloni

Fineldo S.p.A.
Via della Scrofa, 64
00186 Roma

Ms. Maria Paola Merloni

Ms. Antonella Merloni

October 14, 2014
Dear Sirs,

We have received your letter dated October 14, 2014, the contents of which we transcribe herebelow:
“To

Fineldo S.p.A.
Via della Scrofa, 64
00186 Roma

Ms. Franca Carloni

Mr. Andrea Merloni

Mr. Aristide Merloni

Ms. Maria Paola Merloni

Ms. Antonella Merloni

October, 14, 2014
by hand

Dear Ladies and Gentlemen:

Further to our discussions and negotiations, we hereby propose the following agreement to you:

“Amendment agreement 
to the 
Share Purchase Agreement

This Amendment Agreement (the “Amendment Agreement”) is entered by and between 

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FINELDO S.P.A., a company incorporated under the laws of Italy and having its registered office at Via della Scrofa, no. 64, 00186 Rome, Italy, registered with the Register of Enterprises of Rome at no., and tax code no., 01549810420, represented by Mr. Gian Oddone Merli, duly authorized to execute this Amendment Agreement (“Fineldo” or the “Seller”);

and

WHIRLPOOL ITALIA HOLDINGS S.R.L., a company with sole stockholder incorporated under the laws of Italy and having its registered office at Viale Guido Borghi 27, 21025 Comerio, Varese, Italy, registered with the Register of Enterprises of Varese (Italy) at no., and tax code no., 03424700122, represented by Mr. Marc Bitzer, duly authorized to execute this Amendment Agreement (the “Purchaser”).

WHEREAS

		
	a)
	On July 10, 2014, Fineldo and Whirlpool Corporation entered into a share purchase agreement relating to the sale and purchase of a majority stake in Indesit Company S.p.A. (the “Agreement”). The Agreement has been executed also by Ms. Franca Carloni, Mr. Andrea Merloni, Mr. Aristide Merloni, Ms. Maria Paola Merloni, and Ms. Antonella Merloni (the “Merloni Directors”) for purposes of Sections 3.3(a)(i), 3.3(b), 5.2(a)(iii), 6.1(c), 6.1(d), 10.11, and 10.13 of the Agreement.

		
	b)
	By letter dated September 29, 2014, Whirlpool Corporation, pursuant to Section 10.1(d) of the Agreement, designated the Purchaser to become a party under the Agreement and, by virtue of such designation and the Purchaser’s acceptance thereof on the same date, the Purchaser acquired all rights and assumed all obligations of Whirlpool Corporation arising under the Agreement.

		
	c)
	The parties intend to amend and/or supplement certain provisions of the Agreement. 

NOW, THEREFORE, the parties agree as follows.

		
	1.
	DEFINITIONS    

		
	1.1
	In this Amendment Agreement, words and expressions not defined herein shall have the same meanings ascribed to them in the Agreement. 

		
	2.
	PURCHASE PRICE

		
	2.1
	The Seller and the Purchaser hereby agree, effective as of the date hereof, that (i) the provisions of Sections 2.2, last paragraph, and 2.3 of the Agreement shall not apply and (ii) the Purchase Price for all of the Fineldo Shares shall remain the same as the Provisional Purchase Price, that is Euro 536,910,000 (five-hundred and thirty-six million and nine-hundred and ten thousand), which entails a price per each of the Fineldo Shares equal to Euro 11 (eleven).

		
	3.
	AMENDMENTS TO THE AGREEMENT

3.1    Effective as of the date hereof, the Agreement shall be amended as follows:

3.1.1 Section 5.2(a)(iii)(1) of the Agreement is hereby replaced in its entirety by the following:

“5.2(a)(iii)(1) procure that the Merloni Directors resign from their office on the Closing Date, effective as of the Closing, and waive any right or claim, for compensation, or any other ground, save for payment of their compensation accrued and not paid (and reimbursement of documented pocket expenses) with respect to their office during 2014 financial year, against the Company, by way of resignation letters in the form of Schedule 5.2(a)(iii);”.

3.1.2 Sections 5.2(a)(iii)(3), 5.2(a)(iii)(4) and 5.2(a)(iii)(5) of the Agreement are hereby deleted. 

3.1.3 Section 10.13 is hereby replaced in its entirety by the following:

“10.13 Undertakings of the Merloni Directors. The Seller shall procure that the Merloni Directors shall, and the Merloni Directors shall, (i) comply with the provisions of Sections 3.3(a)(i) and 3.3(b) and Section 5.2(a)(iii), as the case may be, which shall apply to them as directors of the Company; and (ii) act, as directors of the Company, 

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in a manner that is consistent with the contents of the provisions of Section 6.1(c) and Section 6.1(d) from the date of this Agreement until the Closing Date.”

		
	4.
	MISCELLANEOUS

		
	4.1
	Except as amended or supplemented herein, the Agreement shall remain in full force and effect.

		
	4.2
	This Amendment Agreement shall be effective as of the date hereof, without any novation of any provisions of the Agreement for the period from the date of signing of the Agreement (July 10, 2014) until the date hereof. 

		
	4.3
	This Amendment Agreement is a supplement to, and an amendment of, the Agreement and forms an integral and substantial part of the Agreement and shall be considered as one agreement with it.

 
		
	4.4
	Sections 7.1 (Representations and warranties relating to the Seller), 8.1 (Representations and warranties of the Purchaser), 10.1 (Assignment. No third party beneficiaries. Designated Subsidiary), 10.2 (Notices), 10.3 (Fees and other expenses), 10.4 (Entire Agreement), 10.5 (Confidentiality - Public Announcements), 10.6 (Amendments in Writing. Waivers), 10.7 (Severability), 10.8 (Further Assurances), 10.10 (Applicable Law), and 10.11 (Arbitration) shall apply to this Amendment Agreement mutatis mutandis.

		
	4.5
	Whirlpool Corporation acknowledges and accepts the content of this Amendment Agreement for purposes of Section 10.1(d)(iii) of the Agreement.”

[Remainder of page intentionally left blank]

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*     *    *     

If you agree with the foregoing please return to us a duly executed copy of this Amendment Agreement initialled on each page and signed at the end for your acceptance. (As to Ms. Franca Carloni, Mr. Andrea Merloni, Mr. Aristide Merloni, Ms. Maria Paola Merloni, and Ms. Antonella Merloni, only for the purposes of Sections 3.1.1, 3.1.2 and 3.1.3 of the Amendment Agreement.)

WHIRLPOOL ITALIA HOLDINGS S.R.L. 

  /s/ Marc Bitzer                                                     

WHIRLPOOL CORPORATION (for purposes of Section 10.1(d)(iii) of the Agreement)

  /s/ Marc Bitzer                                                    ”

We hereby accept all contents of your letter transcribed above.

FINELDO S.P.A.
  /s/ Gian Oddone Merli                                        
I hereby accept all contents of your letter transcribed above.

  /s/ Aristide Merloni                                              
Aristide Merloni

  /s/ Andrea Merloni                                               
Andrea Merloni

  /s/ Antonella Merloni                                            
Antonella Merloni

  /s/ Franca Carloni                                                 
Franca Carloni

  /s/ Maria Paola Merloni                                        
Maria Paola Merloni

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