Document:

EXHIBIT 4.15

 

REGULATIONS

 

OF
THE 2008 PERFORMANCE SHARES PLAN RESERVED FOR CERTAIN

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

(Unofficial English Translation)

 

1. SUBJECT AND WARNING

 

The present Regulation (as defined below)
defines the criteria to implement the Plan (as defined below) addressed to
certain Company (as defined below) Employees (as defined below) and of other
companies of the Group (as defined below). These Employees will be selected, in
accordance with the Regulation, from those entrusted in the Company and in the
Group with key offices that are strategic in achieving the Company’s targets 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 subject of the Plan is the granting of
Units (as defined below) to the Beneficiaries (as defined below) on the Date of
Grant (as defined below).

 

The Regulation was approved by the Company’s
shareholders’ meeting held on May 13, 2008.

 

The 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
addressed to a number of persons lower than that set forth by Article 33(1)(a) of
Consob Regulation No. 11971 dated 14 May 1999, as modified and
amended.

 

2. DEFINITIONS

 

For the purposes of the 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 the 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 from among those entrusted with strategic key offices in the
  Company or in the Employing Company.

  
	
   

  	
   

  	
   

  
	
  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 evaluate the Plan,
  taking any relevant decisions and giving execution to this Regulation.

  
	
   

  	
   

  	
   

  
	
  2.5

  	
   

  	
  “Date of Approval”: May 13, 2008, the final date of approval of
  this Regulation by the shareholders’ meeting of the Company.

  
	
   

  	
   

  	
   

  
	
  2.6

  	
   

  	
  “Date of Grant”: any date between May 2008 and May 2012 on
  which the Board of Directors grants Units to the Beneficiaries.

  
	
   

  	
   

  	
   

  
	
  2.7

  	
   

  	
  “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.

  
	
   

  	
   

  	
   

  
	
  2.8

  	
   

  	
  “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 (that may be expressed in
  US dollars in lieu of Euro) as derived from the Group’s US GAAP
  consolidated balance sheet and equal to the net profit as derived from the
  relevant balance sheet divided by the total number of shares representing the
  Company’s capital.

  
	
   

  	
   

  	
   

  
	
  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 present plan governed by the Regulation, addressed to
  certain Employees and aimed at granting a maximum number of 6,500,000 Units
  during the Period of Assignment and a maximum number of 2,000,000 Units per
  year.

  
	
   

  	
   

  	
   

  
	
  2.17

  	
   

  	
  “Period of Assignment”: the five-year period starting from the Date
  of Approval, during which the Board of Directors will be allowed to grant the
  Beneficiaries the Units.

  
	
   

  	
   

  	
   

  
	
  2.18

  	
   

  	
  “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, and at the end of which the achievement of the EPS Target will
  be ascertained.

  
	
   

  	
   

  	
   

  
	
  2.19

  	
   

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

  
	
   

  	
   

  	
   

  
	
  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 hand 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.

  

 

2

 

	
  2.25

  	
   

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

  

 

3. CRITERIA AND METHODS TO DETERMINE THE
BENEFICIARIES

 

	
  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, having taken into account the strategic
  relevance of the position held within the Group in relation to increasing the
  value of the Company as well as that of the Group.

  

 

4. ADHESION TO THE PLAN

 

	
  4.1

  	
   

  	
  The Company will send each Beneficiary the Regulation and the
  Application Form in which the Company will indicate the maximum number
  of Units and the EPS Target.

  
	
   

  	
   

  	
   

  
	
  4.2

  	
   

  	
  The Beneficiary must return a copy of the 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 there from, 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

  
	
   

  	
   

  	
   

  
	
  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

  	
   

  	
  If needed, 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 respecting 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

  

 

3

 

	
  6.1.2

  	
   

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

  
	
   

  	
   

  	
   

  
	
  6.2

  	
   

  	
  The Company will promptly notify the Beneficiaries of the fulfilment
  of the condition under Article 6.1.2 and, consequently, of the number of
  Shares that can be assigned to each Beneficiary.

  
	
   

  	
   

  	
   

  
	
  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.

  
	
   

  	
   

  	
   

  
	
  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. It is agreed that, in the event of
  termination of the Relationship with right to retain the Units, as provided
  by Article 7.3, instead of assigning the Shares the Company will pay to
  the Beneficiary the Substitutive Amount, if and to the extent that it is due.

  

 

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

 

	
  7.1

  	
   

  	
  As the right to be assigned—in whole or in part—the Shares is
  strictly connected to the existence of the Relationship between the
  Beneficiaries and the Company or the Employing Company, in case of
  termination of the Relationship on a Termination Date preceding the Date of
  Assignment, the provisions under the present Article 7 will apply.
  Nonetheless, even in cases in which the Units may be extinguished pursuant to
  this Article 7, the Board of Directors has the right to allow one or
  more Beneficiaries to retain all or part of the Units, or to increase any
  rights deriving from the Units, and in particular to permit the Beneficiaries
  to retain the right to the assignment of the Shares, in whole or in part,
  even if the required conditions are not fulfilled.

  
	
   

  	
   

  	
   

  
	
  7.2

  	
   

  	
  In case of termination of the Relationship, on a Termination Date
  that precedes the Date of Assignment, due to: (i) the Beneficiary’s voluntary
  resignation without Cause or based on one of the reasons set forth in
  Article 7.3; or (ii) the Beneficiary’s 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, on a Termination Date
  that precedes the Date of Assignment, due to: (i) resignation by the
  Beneficiary who met the legal requirements for a pension and, within
  30 days following the termination of the Relationship, filed the request
  for such 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 extinguished.

  
	
   

  	
   

  	
   

  
	
  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

  

 

4

 

	
   

  	
   

  	
  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 THE 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, extraordinary dividend distributions, 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 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 updated 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.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  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.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  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 OPA.

  
	
   

  	
   

  	
   

  
	
  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 make any other restructuring
  transaction whatsoever.

  

 

10. DURATION OF THE PLAN

 

	
  10.1

  	
   

  	
  The Plan will be effective for five years from the Date of Approval.

  
	
   

  	
   

  	
   

  
	
  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.

  

 

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

  

 

5

 

	
   

  	
   

  	
  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 Stock
  Options, Via Valcozzena 10, Agordo

  
	
   

  	
  Fax: +39
  0437.644416

  
	
   

  	
  and to

  
	
   

  	
  Corporate Affairs Management, Via C. Cantù 2, Milano

  
	
   

  	
  Fax: +39 02.8633.4636

  
	
   

  	
   

  
	
  ·

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

  

 

6

 

Annex A

 

Application Form

 

2008
PERFORMANCE SHARES PLAN, RESERVED TO CERTAIN EMPLOYEES OF

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

 

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)

  

 

7

 

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

 

	
   

  	
   , 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 30 June 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 30 June 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 30 June 2003.

 

	
   

  	
   

  
	
   

  	
  (Beneficiary)

  

 

8EXHIBIT 4.16

 

Euro 250,000,000.00 revolving credit agreement (the Credit Agreement)
entered into on 29 May 2008 in Lugano (Switzerland) by and between
Luxottica Group S.p.A., as borrower, Luxottica US Holdings Corporation, as
guarantor, Intesa Sanpaolo S.p.A., as facility agent and lender, Banca Popolare
di Vicenza S.c.p.A., as lender, and Banca Antonveneta S.p.A., as lender.

 

Summary of the main commercial terms and
conditions (English Language Summary)

 

	
  Borrower:

  	
  Luxottica Group S.p.A. 

  
	
   

  	
   

  
	
  Guarantor:

  	
  Luxottica US Holdings Corporation 

  
	
   

  	
   

  
	
  Group: 

  	
  Luxottica
  Group S.p.A and its subsidiaries

  
	
  Material Subsidiary

  	
  A subsidiary of the Borrower whose total
  assets or turnover (excluding intra-Group items) equal or exceed 5 per cent
  of the consolidated total assets or turnover of the Group. For this purpose:

  
	
   

  	
   

  
	
   

  	
  (a) the
  total assets or turnover of a subsidiary of the Borrower will be determined
  from its financial statements (consolidated if it has subsidiaries) upon
  which the latest audited financial statements of the Group have been based;

  
	
   

  	
   

  
	
   

  	
  (b) if
  a subsidiary of the Borrower becomes a member of the Group after the date on
  which the latest consolidated financial statements or the consolidated
  quarterly financial statements (as the case may be) of the Group have been
  prepared, the total assets or turnover of that Subsidiary will be determined
  from its latest financial statements;

  
	
   

  	
   

  
	
   

  	
  (c) the
  consolidated total assets or turnover of the Group will be determined from
  the latest consolidated financial statements or consolidated quarterly
  financial statements (as the case may be), adjusted on any quarter date
  (where appropriate) to reflect the total assets or turnover of any company or
  business subsequently acquired or disposed of; and

  
	
   

  	
   

  
	
   

  	
  (d) if
  a Material Subsidiary disposes of all or substantially all of its assets to
  another subsidiary of the Borrower, it will immediately cease to be a
  Material Subsidiary and the other subsidiary (if it is not already) will
  immediately become a Material Subsidiary; the subsequent financial statements
  of those subsidiaries and the Group will be used to determine whether those
  subsidiaries are Material Subsidiaries or not.

  
	
   

  	
   

  
	
  Facility Agent 

  	
  Intesa
  Sanpaolo S.p.A.

  
	
   

  	
   

  
	
  Lenders:

  	
  Intesa Sanpaolo S.p.A., for a
  maximum amount equal to Euro 150,000,000.00

  
	
   

  	
   

  
	
   

  	
  Banca Popolare di Vicenza S.c.p.A., for a maximum
  amount equal to Euro 50,000,000.00

  

 

1

 

	
   

  	
  Banca Antonveneta S.p.A.,
  for a maximum amount equal to Euro 50,000,000.00

  
	
   

  	
   

  
	
  Facility and Maximum Amount: 

  	
  Euro 250,000,000 revolving credit facility.

  
	
   

  	
   

  
	
  Purpose:

  	
  Financing of capital expenditures of the Borrower
  and of working capital of the Group.

  
	
   

  	
   

  
	
  Final Maturity Date:

  	
  5 years from the date of execution of documentation
  for the Facility (the Signing Date).
  

  
	
   

  	
   

  
	
  Availability Period:

  	
  3 years from the Signing Date.

  
	
   

  	
   

  
	
  Repayment:

  	
  The amounts outstanding under the Facility
  as at the end of the Availability Period will be repaid in 8 (eight)
  quarterly instalments as set out in the grid below:

  

 

	
  Repayment Date

  	
   

  	
  % Amount of the Facility to be repaid

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  29 August 2011

  	
   

  	
  12

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  29 November 2011

  	
   

  	
  12

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  29 February 2012

  	
   

  	
  12

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  29 May 2012

  	
   

  	
  12

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  29 August 2012

  	
   

  	
  12

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  29 November 2012

  	
   

  	
  12

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  1 March 2013

  	
   

  	
  12

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  29 May 2013

  	
   

  	
  16

  	
  %

  

 

	
  Interest Rate:

  	
  The aggregate of (i) the relevant of
  the Interest Rate Basis and (ii) the applicable Margin

  
	
   

  	
   

  
	
  Interest Rate Basis:

  	
  Euro Interbank Offered Rate (EURIBOR)

  
	
   

  	
   

  
	
  Margin:

  	
  From the Signing Date up to and including
  30 September 2008, the Margin will be 60 bps.

   

  From 1 October 2008 onwards, the
  Margin will be adjusted quarterly as set out in the grid below and determined
  by reference to the consolidated financial statements or consolidated
  quarterly financial statements (as the case may be) of the Group which shall
  be based on US GAAP:

  

 

2

 

	
  Consolidated
  Total Net Debt/

  Consolidated EBITDA

  	
   

  	
  Margin
  per annum (bps)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  <1.5x

  	
   

  	
  40

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  >1.5x and <2.0x

  	
   

  	
  45

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  >2.0x and <2.5x

  	
   

  	
  50

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  >2.5x and <3.0x

  	
   

  	
  55

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  >3.0x

  	
   

  	
  60

  	
   

  

 

	
  Interest Periods:

  	
  1, 2, 3 or 6 months at the option of the
  Borrower or such other periods as may be agreed.

  
	
   

  	
   

  
	
  Default interest

  	
  150 bps

  
	
   

  	
   

  
	
  Arrangement and

  	
  Euro 875,000.00 entirely payable at the
  Signing Date as follows:

  
	
   

  	
   

  
	
  Underwriting Fee

  	
  (i) Euro 525,000.00 to Intesa Sanpaolo S.p.A.;

  
	
   

  	
   

  
	
   

  	
  (ii) Euro 175,000.00 to Banca Popolare di
  Vicenza S.c.p.A.;

  
	
   

  	
   

  
	
   

  	
  (iii) Euro 175,000.00 to Banca Antonveneta S.p.A.  

  
	
   

  	
   

  
	
  Agency Fee

  	
  Euro 25,000.00 payable to the Facility Agent
  annually in advance.

  
	
   

  	
   

  
	
  Commitment Fee: 

  	
  From the date falling 30 days after the Signing Date
  up to and including the end of the Availability Period, 1/3 of the applicable
  Margin payable quarterly in arrears on the available undrawn amount of the
  Facility.

  
	
   

  	
   

  
	
  Cancellation/Prepayment: 

  	
  (a) Voluntary Cancellation and
  Prepayment: The Borrower will be
  allowed to cancel without penalty in whole or in part in respect of the
  undrawn amount of the Facility in minimum amounts of Euro 10 million and
  multiples of Euro 5 million subject to 5 business days irrevocable notice to
  the Facility Agent. In addition amounts outstanding under the Facility may be
  prepaid without penalty in minimum amounts of Euro 10 million and multiples
  of Euro 5 million or in an amount equal to the outstanding amount of the
  Facility, subject to 5 business days irrevocable notice to the Facility Agent
  and the payment of breakage costs if applicable.

  
	
   

  	
   

  
	
   

  	
  (b) Increased Costs, Tax Gross Up and
  Tax indemnity:  the Borrower may cancel the commitment of
  and prepay any Lender that makes a claim under these provisions or require
  the Lender to transfer its commitment and participation to one or more
  existing or newly introduced Lender(s) willing to assume it.

  
	
   

  	
   

  
	
  Mandatory Prepayment:

  	
  Mandatory prepayment on:

  (a) Change of
  Control: the Facility shall be repayable in full only if (i) a
  

  

 

3

 

	
   

  	
  person or an entity or various persons or
  entities acting in concert and not related to the Del Vecchio family or any
  entity in which the Del Vecchio family has a beneficial interest acquires
  control of the Luxottica Group S.p.A., and (ii) the majority lenders
  (being lenders representing in aggregate an interest in 66 2/3 per cent. of
  the Facility) determine that such entity or entities acting in concert are of
  reputation that gives them reason to believe that the Facility will not be
  repaid as and when due.

  
	
   

  	
   

  
	
   

  	
  For the purposes of this paragraph, control has the meaning given to it pursuant to article
  2359 of the Italian civil code and article 93 of the consolidated financial
  act (d.lgs. 24 February 1998, n. 58); and

  
	
   

  	
   

  
	
   

  	
  (b) Illegality:
  as a result of illegality unless the illegality can be resolved by the
  relevant Lender transferring its participation to one or more existing or
  newly introduced Lender(s) willing to assume it, in which case it must
  do so at the Borrower’s request.

  
	
   

  	
   

  
	
  Financial Statements:

  	
  Luxottica Group S.p.A. shall supply to the
  Facility Agent, among other things:

  
	
   

  	
   

  
	
   

  	
  a)

  	
  its annual audited consolidated financial
  statements based on US GAAP; and

  
	
   

  	
   

  
	
   

  	
  b)

  	
  its quarterly consolidated financial
  statements based on US GAAP.

  
	
   

  	
   

  
	
  Financial Covenants:

  	
  1) Consolidated Total Net Debt to
  Consolidated EBITDA not to exceed or be equal to 3.5x times.

  
	
   

  	
   

  
	
   

  	
  2) Consolidated EBITDA to Consolidated Net
  Finance Charges not to fall below 5.0x times.

  
	
   

  	
   

  
	
   

  	
  Financial Covenants shall be tested
  quarterly for each financial year on the basis of the consolidated financial
  statements of Luxottica Group S.p.A. which shall based on US GAAP.

  
	
   

  	
   

  
	
   

  	
  For the
  purpose of the financial covenants:

  
	
   

  	
   

  
	
   

  	
  Consolidated
  EBITDA means, in respect of any relevant period, the consolidated income from
  operations of the Group for that relevant period after adding back all
  amounts for operations for amortisation and extraordinary or non-recurring
  items, as determined from the consolidated financial statements or the
  consolidated quarterly financial statements (as the case may be). It
  includes, on a pro-forma basis, also the relevant results of each other company
  or business acquired by a member of the Group in the course of a relevant
  period.

  
	
   

  	
   

  
	
   

  	
  Consolidated
  Net Finance Charges means, for any relevant period, the consolidated amount
  of interest expense of the Group, minus interest income.

  

 

4

 

	
   

  	
  Consolidated
  Total Net Debt means, for any relevant period, as determined from the
  consolidated financial statements or the consolidated quarterly financial
  statements (as the case may be), the sum of:

  
	
   

  	
   

  
	
   

  	
  (i)

  	
  bank
  overdrafts; plus

  
	
   

  	
   

  
	
   

  	
  (ii)

  	
  current
  portion of long term notes; plus

  
	
   

  	
   

  
	
   

  	
  (iii)

  	
  current
  portion of long term debt; plus

  
	
   

  	
   

  
	
   

  	
  (iv)

  	
  long
  term notes; plus

  
	
   

  	
   

  
	
   

  	
  (v)

  	
  long term debt,

  
	
   

  	
   

  
	
   

  	
  less:

  
	
   

  	
   

  
	
   

  	
  (vi)

  	
  cash and cash equivalents; and

  
	
   

  	
   

  
	
   

  	
  (vii)

  	
  cash held as security against loans and
  other bank indebtedness.

  
	
   

  	
   

  
	
  Taxes and other Deductions:

  	
  All payments will be made by the Borrower
  (subject to deductions usual conditions) free and clear of any taxes, levies,
  duties and any other deductions whatsoever imposed.

  
	
   

  	
   

  
	
  Representations and warranties 

  	
  (a) duly incorporation of the Borrower
  and validly existence under the law of its jurisdiction of incorporation

  
	
   

  	
   

  
	
   

  	
  (b) power and authority of the
  Borrower to enter into the Finance Documents

  
	
   

  	
   

  
	
   

  	
  (c) legal, valid and binding
  obligations assumed by the Borrower in the Finance Documents subject to usual
  legal reservations

  
	
   

  	
   

  
	
   

  	
  (d) non-conflict of the Finance
  Documents with laws and regulations applicable to the Borrower, its by-laws
  and other obligations binding for the Borrower or its assets

  
	
   

  	
   

  
	
   

  	
  (e) all authorisations for the
  execution of the Finance Documents by the Borrower in place

  
	
   

  	
   

  
	
   

  	
  (f) most recent consolidated financial
  statements delivered to the Facility Agent prepared in accordance with US
  GAAP and fairly representing the financial conditions of the Borrower

  
	
   

  	
   

  
	
   

  	
  (g) no adverse circumstance relating
  to validity, subsistence or use of any of the intellectual property of the
  Borrower or of any Material Subsidiary which could reasonably be expected to
  have a Material Adverse Effect

  
	
   

  	
   

  
	
   

  	
  (h) no default by the Borrower or a
  Material Subsidiary under any other agreement or instrument which could
  reasonably be expected to have a Material Adverse Effect

  

 

5

 

	
   

  	
  (i) no
  litigation - other than the one reported in the consolidated financial
  statement relating to financial year 2007 - started or threatened in writing
  against the Borrower or any of its subsidiaries which are reasonably likely
  to be adversely determined and, if adversely determined, are likely to have a
  Material Adverse Effect

  
	
   

  	
   

  
	
   

  	
  (j) no insolvency proceedings or
  voluntary liquidation procedure started or pending vis-à-vis the Borrower or
  any of its subsidiaries

  
	
   

  	
   

  
	
   

  	
  (k) no contractual subordination of
  the obligations of the Borrower under the Finance Documents to other monetary
  obligations save for privileges created by operation of law

  
	
   

  	
   

  
	
   

  	
  (l) no Event of Default outstanding or
  reasonably be expected to result from the making of any Utilisation

  
	
   

  	
   

  
	
   

  	
  (m) factual information given by the
  Borrower to the Facility Agent and the Lenders pursuant to the Credit
  Agreement truth and substantially accurate as at the moment it is given

  
	
   

  	
   

  
	
  General undertakings 

  	
  (a) no substantial change of business
  of the Borrower from that carried on as at the date of the Credit Agreement
  if such change is reasonably likely to have a Material Adverse Effect

  
	
   

  	
   

  
	
   

  	
  (b) no demerger, merger or corporate
  reconstruction of the Borrower or its Material Subsidiary save for, inter
  alia, the ones permitted by the Majority Lenders or carried out on solvent
  basis

  
	
   

  	
   

  
	
   

  	
  (c) no loans made or guarantees given
  by any member of the Group (except the Borrower and the Guarantor) to third
  parties save for, inter alia, loans made to other members of the Group and
  guarantees given in the interest of other members of the Group

  
	
   

  	
   

  
	
   

  	
  (d) compliance by the Borrower with
  laws applicable to it, if failure so to comply is reasonably likely to have a
  Material Adverse Effect

  
	
   

  	
   

  
	
   

  	
  (e) maintaining and not terminating by
  the Borrower and its subsidiaries the intellectual property which is
  necessary for the business of Group save when failure to do so is reasonably
  likely to have a Material Adverse Effect

  
	
   

  	
   

  
	
   

  	
  (f) compliance by the Borrower with
  applicable environmental laws and obtaining and maintaining by it of any
  environmental permits applicable where failure to do so is reasonably likely
  to have a Material Adverse Effect.

  
	
   

  	
   

  
	
   

  	
  (g) maintaining by the members of the
  Group of insurances on and in relation to its business and assets to the
  extent as is usual for companies carrying on the same or substantially
  similar business

  

 

6

 

	
   

  	
  (h) arm’s length basis complied with
  in transactions entered into between members of the Group

  
	
   

  	
   

  
	
   

  	
  (i) cooperation by the Borrower with
  the Facility Agent in assessing the circumstances giving rise to an Event of
  Default

  
	
   

  	
   

  
	
   

  	
  (j) no sale, lease, transfer or other
  disposals of any asset by any member of the Group save for, inter alia, the
  ones made in the ordinary course of the business of the disposing entity

  
	
   

  	
   

  
	
   

  	
  (k) duly and timely payment of taxes
  imposed upon the Borrower where failure to do so is reasonably likely to have
  a Material Adverse Effect (save to the extent that payment is being contested
  in good faith or such payment can be lawfully withheld)

  
	
   

  	
   

  
	
   

  	
  (l) no segregation of assets by the
  Borrower or any of its subsidiaries incorporated in Italy pursuant to
  Articles 2447 bis and 2447 ter of the Italian civil code

   

  (m) neither change of the centre of
  main interests of the Borrower nor set up of its establishments in countries
  other than Italy 

  
	
   

  	
   

  
	
  Events of default

  	
  (a) no timely and duly payment by the
  Borrower of any amount payable pursuant to a Finance Document save for, inter
  alia, strikes in the banking sector

  
	
   

  	
   

  
	
   

  	
  (b) non-satisfaction of financial
  covenants

  
	
   

  	
   

  
	
   

  	
  (c) violation of any obligation under
  a Finance Documents (other than the ones under letters (a) and (b) above)
  by the Borrower where such violation, if capable of remedy, is not remedied
  within 15 business days after the earlier to occur of the date the Facility
  Agent has given written notice thereof to the Borrower and the date the
  Borrower has actual knowledge thereof

  
	
   

  	
   

  
	
   

  	
  (d) misrepresentation in violation of
  any Finance Document by the Borrower where such misrepresentation, if capable
  of remedy, is not remedied within 15 business days after the earlier to occur
  of the date the Facility Agent has given written notice thereof to the
  Borrower and the date the Borrower has actual knowledge thereof

  
	
   

  	
   

  
	
   

  	
  (e) the Borrower ceasing or
  threatening in writing to cease to carry on all or a substantial part of its
  business other than as a result of a merger or intra-group reorganisation
  permitted under the terms of the Credit Agreement

  
	
   

  	
   

  
	
   

  	
  (f) the Borrower or any Material
  Subsidiary becoming insolvent or entering into rescheduling agreements or a
  moratorium being declared vis-à-vis any of their indebtedness

  
	
   

  	
   

  
	
   

  	
  (h) an insolvency proceeding (save for
  it is contested diligently and in 

  

 

7

 

	
   

  	
  good faith and withdrawn or rejected within
  90 days) or a composition with creditors or a liquidation started or entered
  into or resolved (as the case may be) by Borrower or any Material Subsidiary

  
	
   

  	
   

  
	
   

  	
  (i) any creditor’s process (procedura esecutiva) towards assets of a member of the
  Group having an aggregate value of €25,000,000 save for it is contested
  diligently and in good faith and withdrawn or rejected  within 90 days

  
	
   

  	
   

  
	
   

  	
  (j) start of a litigation towards any
  member of the Group which is reasonably likely to be adversely determined,
  and if so determined is likely to have a Material Adverse Effect

  
	
   

  	
   

  
	
   

  	
  (k) cross-default in respect of any
  financial indebtedness of the Borrower or of any Material Subsidiary save for
  the aggregate amount of the relevant financial indebtedness being lower than
  Euro 25,000,000.00

  
	
   

  	
   

  
	
   

  	
  (l) unlawfulness of any Finance
  Document save for it is due to wilful misconduct or gross negligence of the
  Lenders or the Facility Agent

  
	
   

  	
   

  
	
  Material Adverse Effect

  	
  A material
  adverse effect on:

  
	
   

  	
   

  
	
   

  	
  (a) the
  business, or financial condition of the Group taken as a whole;

  
	
   

  	
   

  
	
   

  	
  (b) the
  ability of the Borrower to perform its payment obligations under the Finance
  Documents; or

  
	
   

  	
   

  
	
   

  	
  (c) the
  validity or enforceability of the Finance Documents or the rights or remedies
  of any Lender or the Facility Agent under the Finance Documents

  
	
   

  	
   

  
	
  Miscellaneous Provisions:

  	
  The Facility Agreement contains provisions
  standard for investment grade financing relating to, among other things,
  set-off, expenses and indemnities, evidence, communications, amendments and
  waivers, confidentiality.

  
	
   

  	
   

  
	
  Governing Law: 

  	
  Italian Law

  
	
   

  	
   

  
	
  Exclusive jurisdiction

  	
  Court of Milan. Lenders and the Facility
  Agent may also sue the Borrower before any other competent court.

  

 

8

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