Document:

Exhibit 4.38

 

EXECUTION VERSION

 

 

 

 

AGENCY AGREEMENT

 

 

 

DATED 10 MAY 2013

 

 

 

Luxottica Group S.p.A.

(incorporated with limited liability in the Republic of Italy)

 

€2,000,000,000

EURO MEDIUM TERM NOTE PROGRAMME

 

unconditionally and irrevocably guaranteed by

 

Luxottica U.S. Holdings Corp.

(a corporation under the laws of the State of Delaware)

 

and

 

Luxottica S.r.l.

(incorporated with limited liability in the Republic of Italy)

 

 

 

 

Allen & Overy

Studio Legale e Associato

 

 

CONTENTS

 

	
Clause
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
1.
    	
Definitions and   Interpretation
    	
1
    
	
2.
    	
Appointment of Agents
    	
3
    
	
3.
    	
Issue of Global Notes
    	
5
    
	
4.
    	
Exchange of Global Notes
    	
7
    
	
5.
    	
Determination of End of   Distribution Compliance Period
    	
9
    
	
6.
    	
Terms of Issue
    	
9
    
	
7.
    	
Payments
    	
10
    
	
8.
    	
Determinations and   Notifications in respect of Notes and Interest Determination
    	
12
    
	
9.
    	
Notice of any Withholding or   Deduction
    	
14
    
	
10.
    	
Duties of the Paying Agents   in Connection with Early Redemption
    	
14
    
	
11.
    	
Receipt and Publication of   Notices
    	
15
    
	
12.
    	
Cancellation of Notes,   Coupons and Talons
    	
15
    
	
13.
    	
Issue of Replacement Notes,   Coupons and Talons
    	
16
    
	
14.
    	
Copies of Documents   Available for Inspection
    	
17
    
	
15.
    	
Meetings of Noteholders
    	
18
    
	
16.
    	
Commissions and Expenses
    	
18
    
	
17.
    	
Indemnity
    	
19
    
	
18.
    	
Responsibility of the Paying   Agents
    	
19
    
	
19.
    	
Conditions of Appointment
    	
20
    
	
20.
    	
Communications between the   Parties
    	
21
    
	
21.
    	
Changes in Paying Agents
    	
21
    
	
22.
    	
DELEGATION
    	
23
    
	
23.
    	
Merger and Consolidation
    	
23
    
	
24.
    	
Notification of Changes to   Paying Agents
    	
24
    
	
25.
    	
Change of Specified Office
    	
24
    
	
26.
    	
Communications
    	
24
    
	
27.
    	
Taxes and Stamp Duties
    	
24
    
	
28.
    	
Amendments
    	
25
    
	
29.
    	
CONFIDENTIALITY AND DATA   PROTECTION
    	
25
    
	
30.
    	
Contracts (Rights of Third   Parties) Act 1999
    	
25
    
	
31.
    	
Governing Law and Submission   to Jurisdiction
    	
26
    
	
32.
    	
Counterparts
    	
26
    

 

 

	
Schedule 
    	
Page
    
	
 
    	
 
    
	
1.
    	
Form of Calculation   Agency Agreement
    	
27
    
	
2.
    	
Form of Put Notice
    	
35
    
	
3.
    	
Additional Duties of the   Agent
    	
36
    
	
 
    	
 
    	
 
    
	
Signatories
    	
37
    

 

 

THIS AGREEMENT is dated 10 May 2013,

 

AMONG:

 

(1)                              LUXOTTICA GROUP S.p.A. (the Issuer);

 

(2)                              LUXOTTICA U.S. HOLDINGS CORP. and LUXOTTICA S.R.L. (the Guarantors and each a Guarantor);

 

(3)                              BNP PARIBAS SECURITIES SERVICES, LUXEMBOURG BRANCH (the Principal Paying Agent, the Agent or the Paying Agent, which expressions shall include any additional or successor paying agent appointed under clause 21); and

 

(4)                              BNP PARIBAS TRUST CORPORATION UK LTD (the Trustee, which expression shall include any successor trustee appointed under the terms of the Trust Deed).

 

IT IS AGREED:

 

1.                                    DEFINITIONS AND INTERPRETATION

 

1.1                            In this Agreement:

 

Calculation Agency Agreement in relation to any Series of Notes means an agreement in or substantially in the form of Schedule 1;

 

Calculation Agent means, in relation to the Notes of any Series, the person appointed as calculation agent in relation to the Notes by the Issuer pursuant to the provisions of a Calculation Agency Agreement (or any other agreement) and shall include any successor calculation agent appointed in respect of the Notes;

 

CGN means a Temporary Global Note in the form set out in Part 1 of Schedule 2 of the Trust Deed or a Permanent Global Note in the form set out in Part 2 of Schedule 2 of the Trust Deed, in either case where the applicable Final Terms specify that the Notes are not in New Global Note form;

 

Clearstream, Luxembourg means Clearstream Banking, société anonyme;

 

Code means the U.S. Internal Revenue Code of 1986;

 

Distribution Compliance Period has the meaning given to that term in Regulation S;

 

Euroclear means Euroclear Bank S.A./N.V.;

 

Eurosystem-eligible NGN means an NGN which is intended to be held in a manner which would allow Eurosystem eligibility, as stated in the applicable Final Terms;

 

FATCA Withholding means any withholding or deduction required pursuant to an agreement described in Section 1471(b) of the Code or otherwise imposed pursuant to Sections 1471 through 1474 of the Code and regulations or agreements thereunder, official interpretations thereof, or any law implementing an intergovernmental approach thereto;

 

NGN means a Temporary Global Note in the form set out in Part 1 of Schedule 2 of the Trust Deed or a Permanent Global Note in the form set out in Part 2 of Schedule 2 of the Trust Deed, in either case where the applicable Final Terms specify that the Notes are in New Global Note form;

 

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Programme Agreement means the programme agreement dated 10 May 2013 between the Issuer, the Guarantors and the Dealers named in it, as amended from time to time;

 

Put Notice means a notice in the form set out in Schedule 2;

 

Reference Banks means, in the case of a determination of LIBOR, the principal London office of four major banks in the London inter-bank market, in the case of a determination of EURIBOR, the principal Euro-zone office of four major banks in the Euro-zone inter-bank market, in each case selected by the Agent and approved in writing by the Trustee or as specified in the applicable Final Terms;

 

Regulation S means the Regulation S under the Securities Act;

 

Securities Act means the United States Securities Act of 1933, as amended;

 

Series means a Tranche of Notes together with any further Tranche or Tranches of Notes which are (a) expressed to be consolidated and form a single series and (b) identical in all respects (including as to listing) except for their respective Issue Dates, Interest Commencement Dates and/or Issue Prices and the expressions Notes of the relevant Series and holders of Notes of the relevant Series and related expressions shall be construed accordingly;

 

Specified Time means 11.00 a.m. (London time, in the case of a determination of LIBOR, or Brussels time, in the case of a determination of EURIBOR); and

 

Trust Deed means the trust deed dated 10 May 2013 relating to the Programme and made between the Issuer and the Trustee as amended, modified, varied, supplemented, replaced, restated or novated from time to time.

 

1.2                            (a)                               In this Agreement, unless the contrary intention appears, a reference to:

 

(i)                                  an amendment includes a supplement, restatement or novation and amended is to be construed accordingly;

 

(ii)                              a person includes any individual, company, unincorporated association, government, state agency, international organisation or other entity;

 

(iii)                          the records of Euroclear and Clearstream, Luxembourg shall be to the records that each of Euroclear and Clearstream, Luxembourg holds for its customers which reflect the amount of such customer’s interest in the Notes;

 

(iv)                          a provision of a law is a reference to that provision as extended, amended or re-enacted;

 

(v)                              a clause or Schedule is a reference to a clause of, or a schedule to, this Agreement;

 

(vi)                          a person includes its successors and assigns;

 

(vii)                      a document is a reference to that document as amended from time to time; and

 

(viii)                  a time of day is a reference to London time.

 

(b)                              The headings in this Agreement do not affect its interpretation.

 

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(c)                               Terms and expressions defined in the Programme Agreement, the Trust Deed or the Notes or used in the applicable Final Terms shall have the same meanings in this Agreement, except where the context otherwise requires or unless otherwise stated.

 

(d)                              All references in this Agreement to costs or charges or expenses shall include any value added tax or similar tax charged or chargeable in respect thereof.

 

(e)                               All references in this Agreement to Notes shall, unless the context otherwise requires, include any Global Note representing the Notes.

 

(f)                                All references in this Agreement to principal and/or interest or both in respect of the Notes or to any moneys payable by the Issuer and/or any Guarantor under this Agreement shall be construed in accordance with Condition 5 (Payments).

 

(g)                               All references in this Agreement to the relevant currency shall be construed as references to the currency in which payments in respect of the relevant Notes and/or Coupons are to be made.

 

(h)                              All references in this Agreement to Euroclear and/or Clearstream, Luxembourg shall, whenever the context so permits, be deemed to include a reference to any additional or alternative clearing system approved by the Issuer, the Trustee and the Agent or as otherwise specified in Part B of the applicable Final Terms.

 

(i)                                  All references in this Agreement to a Directive include any relevant implementing measure of each Member State of the European Economic Area which has implemented such Directive.

 

1.3                            For the purposes of this Agreement, the Notes of each Series shall form a separate series of Notes and the provisions of this Agreement shall apply mutatis mutandis separately and independently to the Notes of each Series and in this Agreement the expressions Notes, Noteholders, Coupons, Couponholders, Talons and related expressions shall be construed accordingly.

 

1.4                            As used herein, in relation to any Notes which are to have a “listing” or be “listed” (i) on the Luxembourg Stock Exchange, listing and listed shall be construed to mean that such Notes have been admitted to trading on the Official List of the Luxembourg Stock Exchange’s regulated market and have been listed on the Luxembourg Stock Exchange and (ii) on any other Stock Exchange within the European Economic Area, listing and listed shall be construed to mean that Notes have been admitted to trading on a market within that jurisdiction which is a regulated market for the purposes of the Markets in Financial Instruments Directive (Directive 2004/39/EC).

 

2.                                    APPOINTMENT OF AGENTS

 

2.1                            The Agent is appointed, and the Agent agrees to act, as agent of the Issuer and the Guarantors (and for the purposes only of subclause 2.4 below, the Trustee), upon the terms and subject to the conditions set out below, for the following purposes:

 

(a)                               completing, authenticating and delivering Temporary Global Notes and Permanent Global Notes and (if required) authenticating and delivering Definitive Notes;

 

(b)                              giving effectuation instructions in respect of each Global Note which is a Eurosystem-eligible NGN;

 

(c)                               exchanging Temporary Global Notes for Permanent Global Notes or Definitive Notes, as the case may be, in accordance with the terms of Temporary Global Notes and, in respect of any

 

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such exchange, (i) making all notations on Global Notes which are CGNs as required by their terms and (ii) instructing Euroclear and Clearstream, Luxembourg to make appropriate entries in their records in respect of all Global Notes which are NGNs;

 

(d)                              exchanging Permanent Global Notes for Definitive Notes in accordance with the terms of Permanent Global Notes and, in respect of any such exchange, (i) making all notations on Permanent Global Notes which are CGNs as required by their terms and (ii) instructing Euroclear and Clearstream, Luxembourg to make appropriate entries in their records in respect of all Permanent Global Notes which are NGNs;

 

(e)                               paying sums due on Global Notes, Definitive Notes and Coupons and instructing Euroclear and Clearstream, Luxembourg to make appropriate entries in their records in respect of all Global Notes which are NGNs;

 

(f)                                exchanging Talons for Coupons in accordance with the Conditions;

 

(g)                               determining the end of the Distribution Compliance Period applicable to each Tranche in accordance with clause 5;

 

(h)                              unless otherwise specified in the applicable Final Terms, determining the interest and/or other amounts payable in respect of the Notes in accordance with the Conditions;

 

(i)                                  arranging on behalf of and at the expense of the Issuer and/or any Guarantor for notices to be communicated to the Noteholders in accordance with the Conditions;

 

(j)                                  ensuring that, as directed by the Issuer, all necessary action is taken to comply with any reporting requirements of any competent authority in respect of any relevant currency as may be in force from time to time with respect to the Notes to be issued under the Programme;

 

(k)                              subject to the Procedures Memorandum, submitting to the relevant authority or authorities such number of copies of each Final Terms which relates to Notes which are to be listed as the relevant authority or authorities may require;

 

(l)                                  acting as Calculation Agent in respect of Notes where named as such in the applicable Final Terms; and

 

(m)                          performing all other obligations and duties imposed upon it by the Conditions, this Agreement and the Procedures Memorandum.

 

2.2                            Each Paying Agent is appointed, and each Paying Agent agrees to act, as paying agent of the Issuer and the Guarantors (and for the purposes only of subclause 2.4 below, the Trustee), upon the terms and subject to the conditions set out below, for the purposes of paying sums due on any Notes and Coupons and performing all other obligations and duties imposed upon it by the Conditions and this Agreement.

 

2.3                            In relation to each issue of Eurosystem-eligible NGNs, the Issuer hereby authorises and instructs the Agent to elect Euroclear/Clearstream, Luxembourg as common safekeeper.  From time to time, the Issuer and the Agent may agree to vary this election.  The Issuer acknowledges that any such election is subject to the right of Euroclear and Clearstream, Luxembourg to jointly determine that the other shall act as common safekeeper in relation to any such issue and agrees that no liability shall attach to the Agent in respect of any such election made by it.

 

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2.4                            At any time after an Event of Default or a Potential Event of Default shall have occurred and be continuing or the Notes shall otherwise have become due and repayable or the Trustee shall have received any money which it proposes to pay under clause 10 (Application of Moneys) of the Trust Deed to the relevant Noteholders and/or Couponholders, the Trustee may:

 

(a)                               by notice in writing to the Issuer, the Guarantors, the Agent and the other Paying Agents require the Agent and the other Paying Agents pursuant to this Agreement:

 

(i)                                     to act thereafter as Agent and other Paying Agent respectively of the Trustee in relation to payments to be made by or on behalf of the Trustee under the terms of the Trust Deed mutatis mutandis on the terms provided in this Agreement (save that the Trustee’s liability under any provisions of this Agreement for the indemnification, remuneration and payment of out-of-pocket expenses of the Agent and the other Paying Agents shall be limited to the amounts for the time being held by the Trustee on the trusts of the Trust Deed in respect of the Notes of the relevant Series and available for the purpose) and thereafter to hold all Notes and Coupons and all sums, documents and records held by them in respect of Notes and Coupons on behalf of the Trustee; or

 

(ii)                                 to deliver up all Notes and Coupons and all sums, documents and records held by them in respect of Notes and Coupons to the Trustee or as the Trustee shall direct in such notice, provided that such notice shall be deemed not to apply to any documents or records which the Agent and the other Paying Agent is obliged not to release by any law or regulation; and

 

(b)                              by notice in writing require the Issuer and the Guarantors to make all subsequent payments in respect of the Notes and Coupons to or to the order of the Trustee and not to the Paying Agent.

 

2.5                            In the event that Definitive Notes are issued and the Paying Agent informs the Issuer that it is unable to perform its obligations under this Agreement (it being agreed that the Paying Agent will inform the Issuer forthwith of this necessity), the Issuer shall forthwith appoint an additional agent in accordance with Clause 21 which is able to perform such obligations.

 

2.6                            The obligations of the Paying Agents under this Agreement are several and not joint.

 

2.7                            The Agent shall not be under any obligation to take any action under this Agreement that may result in any expense or liability accruing to it, the payment of which within a reasonable time is not, in its opinion, assured to it.

 

2.8                            The Agent shall act as Calculation Agent in relation to a particular series of Notes if it is specified as such in the Final Terms relating to such series unless the Agent gives notice to the Issuer, within two days of receiving the draft relevant Final Terms that it is unable to act as Calculation Agent in relation to such Notes.

 

3.                                    ISSUE OF GLOBAL NOTES

 

3.1                            Subject to subclause 3.4, following receipt of a faxed copy of the applicable Final Terms signed by the Issuer, together with the duly completed information relating to the Issuer pursuant to Article 2414 of the Italian Civil Code in the form set out in Annex 3 Part B of the Procedures Memorandum, the Issuer authorises the Agent and the Agent agrees, to take the steps required of the Agent in the Procedures Memorandum.

 

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3.2                            For the purpose of subclause 3.1, the Agent will on behalf of the Issuer if specified in the applicable Final Terms that a Temporary Global Note will initially represent the Tranche of Notes:

 

(a)                               prepare a Temporary Global Note by attaching a copy of the applicable Final Terms and the duly completed information relating to the Issuer pursuant to Article 2414 of the Italian Civil Code in the form set out in Annex 3 Part B of the Procedures Memorandum to a copy of the signed master Temporary Global Note;

 

(b)                              authenticate the Temporary Global Note;

 

(c)                               deliver the Temporary Global Note to the specified common depositary (if the Temporary Global Note is a CGN) or specified common safekeeper (if the Temporary Global Note is a NGN) for Euroclear and Clearstream, Luxembourg and, in the case of a Temporary Global Note which is a Eurosystem-eligible NGN, to instruct the common safekeeper to effectuate the same;

 

(d)                              ensure that the Notes of each Tranche are assigned, as applicable, security numbers (including, but not limited to, common codes and ISINs) which are different from the security numbers assigned to Notes of any other Tranche of the same Series until at least expiry of the Distribution Compliance Period in respect of the Tranche; and

 

(e)                               if the Temporary Global Note is a NGN, instruct Euroclear and Clearstream, Luxembourg to make the appropriate entries in their records to reflect the initial outstanding aggregate principal amount of the relevant Tranche of Notes;

 

3.3                            For the purpose of subclause 3.1, the Agent will on behalf of the Issuer if specified in the applicable Final Terms that a Permanent Global Note will represent the Notes on issue:

 

(a)                               in the case of the first Tranche of any Series of Notes, prepare a Permanent Global Note by attaching a copy of the applicable Final Terms and the duly completed information relating to the Issuer pursuant to Article 2414 of the Italian Civil Code in the form set out in Annex 3 Part B of the Procedures Memorandum to a copy of the master Permanent Global Note;

 

(b)                              in the case of the first Tranche of any Series of Notes, authenticate the Permanent Global Note;

 

(c)                               in the case of the first Tranche of any Series of Notes, deliver the Permanent Global Note to the specified common depositary (if the Permanent Global Note is a CGN) or specified common safekeeper (if the Permanent Global Note is a NGN) for Euroclear and/or Clearstream, Luxembourg and, in the case of a Permanent Global Note which is a Eurosystem-eligible NGN, to instruct the common safekeeper to effectuate the same;

 

(d)                              if the Permanent Global Note is a NGN, instruct Euroclear and Clearstream, Luxembourg to make the appropriate entries in their records to reflect the initial outstanding aggregate principal amount of the relevant Tranche of Notes;

 

(e)                               in the case of a subsequent Tranche of any Series of Notes deliver the applicable Final Terms to the specified common depositary or common safekeeper, as the case may be, for attachment to the Permanent Global Note and, in the case where the Permanent Global Note is a CGN, make all appropriate entries on the relevant Schedule to the Permanent Global Note to reflect the increase in its nominal amount or, in the case where the Permanent Global Note is a NGN, instruct Euroclear and Clearstream, Luxembourg to make the appropriate entries in their records to reflect the increased outstanding aggregate principal amount of the relevant Series; and

 

6

 

(f)                                ensure that the Notes of each Tranche are assigned, as applicable, security numbers (including, but not limited to, common codes and ISINs) which are different from the security numbers assigned to the Notes of any other Tranche of the same Series until at least the expiry of the Distribution Compliance Period in respect of the Tranche.

 

3.4                            The Agent shall only be required to perform its obligations under this clause 3 if it holds:

 

(a)                               a master Temporary Global Note duly executed by a person or persons duly authorised to execute the same on behalf of the Issuer, which may be used by the Agent for the purpose of preparing Temporary Global Notes in accordance with subclause 3.2;

 

(b)                              a master Permanent Global Note duly executed by a person or persons duly authorised to execute the same on behalf of the Issuer, which may be used by the Agent for the purpose of preparing Permanent Global Notes in accordance with subclause 3.3 and clause 4; and

 

(c)                               signed copies of the applicable Final Terms and the duly completed information relating to the Issuer pursuant to Article 2414 of the Italian Civil Code in the form set out in Annex 3 Part B of the Procedures Memorandum.

 

3.5                            The Issuer undertakes to ensure that the Agent receives copies of each document specified in subclause 3.4 in a timely manner.

 

3.6                            Where the Agent delivers any authenticated Global Note to a common safekeeper for effectuation using electronic means, it is authorised and instructed to destroy the Global Note retained by it following its receipt of confirmation from the common safekeeper that the relevant Global Note has been effectuated.

 

4.                                    EXCHANGE OF GLOBAL NOTES

 

4.1                            The Agent shall determine the Exchange Date for each Temporary Global Note in accordance with its terms.  Immediately after determining any Exchange Date, the Agent shall notify its determination to the Issuer, the Guarantors, the Trustee, the other Paying Agents, the relevant Dealer, Euroclear and Clearstream, Luxembourg.

 

4.2                            Where a Temporary Global Note is to be exchanged for a Permanent Global Note, the Agent is authorised by the Issuer and instructed:

 

(a)                               in the case of the first Tranche of any Series of Notes, to prepare and complete a Permanent Global Note in accordance with the terms of the Temporary Global Note applicable to the Tranche by attaching a copy of the applicable Final Terms and the duly completed information relating to the Issuer pursuant to Article 2414 of the Italian Civil Code in the form set out in Annex 3 Part B of the Procedures Memorandum to a copy of the master Permanent Global Note;

 

(b)                              in the case of the first Tranche of any Series of Notes, to authenticate the Permanent Global Note;

 

(c)                               in the case of the first Tranche of any Series of Notes if the Permanent Global Note is a CGN, to deliver the Permanent Global Note to the common depositary which is holding the Temporary Global Note representing the Tranche for the time being on behalf of Euroclear and/or Clearstream, Luxembourg to hold on behalf of the Issuer pending its exchange for the Temporary Global Note;

 

7

 

(d)                              in the case of the first Tranche of any Series of Notes if the Permanent Global Note is a NGN, to deliver the Permanent Global Note to the common safekeeper which is holding the Temporary Global Note representing the Tranche for the time being on behalf of Euroclear and/or Clearstream, Luxembourg to effectuate (in the case of a Permanent Global Note which is a Eurosystem-eligible NGN) and to hold on behalf of the Issuer pending its exchange for the Temporary Global Note;

 

(e)                               in the case of a subsequent Tranche of any Series of Notes if the Permanent Global Note is a CGN, to attach a copy of the applicable Final Terms and the duly completed information relating to the Issuer pursuant to Article 2414 of the Italian Civil Code in the form set out in Annex 3 Part B of the Procedures Memorandum to the Permanent Global Note applicable to the relevant Series and to enter details of any exchange in whole or part; and

 

(f)                                in the case of a subsequent Tranche of any Series of Notes if the Permanent Global Note is a NGN, to deliver the applicable Final Terms and the duly completed information relating to the Issuer pursuant to Article 2414 of the Italian Civil Code in the form set out in Annex 3 Part B of the Procedures Memorandum to the specified common safekeeper for attachment to the Permanent Global Note applicable to the relevant Series.

 

4.3                            Where a Global Note is to be exchanged for Definitive Notes in accordance with its terms, the Agent is authorised by the Issuer and instructed:

 

(a)                               to authenticate the Definitive Notes in accordance with the provisions of this Agreement; and

 

(b)                              to deliver the Definitive Notes to or to the order of Euroclear and/or Clearstream, Luxembourg.

 

4.4                            Upon any exchange of all or a part of an interest in a Temporary Global Note for an interest in a Permanent Global Note or upon any exchange of all or a part of an interest in a Global Note for Definitive Notes, the Agent shall (i) procure that the relevant Global Note shall, if it is a CGN, be endorsed by or on behalf of the Agent to reflect the reduction of its nominal amount by the aggregate nominal amount so exchanged and, where applicable, the Permanent Global Note shall be endorsed by or on behalf of the Agent to reflect the increase in its nominal amount as a result of any exchange for an interest in the Temporary Global Note or (ii) in the case of any Global Note which is a NGN, instruct Euroclear and Clearstream, Luxembourg to make appropriate entries in their records to reflect such exchange.  Until exchanged in full, the holder of an interest in any Global Note shall in all respects be entitled to the same benefits under this Agreement as the holder of Definitive Notes and Coupons authenticated and delivered under this Agreement, subject as set out in the Conditions.  The Agent is authorised on behalf of the Issuer and instructed (a) in the case of any Global Note which is a CGN, to endorse or to arrange for the endorsement of the relevant Global Note to reflect the reduction in the nominal amount represented by it by the amount so exchanged and, if appropriate, to endorse the Permanent Global Note to reflect any increase in the nominal amount represented by it and, in either case, to sign in the relevant space on the relevant Global Note recording the exchange and reduction or increase, (b) in the case of any Global Note which is a NGN, to instruct Euroclear and Clearstream, Luxembourg to make appropriate entries in their records to reflect such exchange and (c) in the case of a total exchange, to cancel or arrange for the cancellation of the relevant Global Note.

 

4.5                            The Agent shall notify the Issuer and the Trustee immediately after it receives a request for the issue of Definitive Notes in accordance with the provisions of a Global Note and the aggregate nominal amount of the Global Note to be exchanged.

 

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4.6                            The Issuer undertakes to deliver to the Agent sufficient numbers of executed Definitive Notes with, if applicable, Coupons and Talons attached, to enable the Agent to comply with its obligations under this Agreement.

 

4.7                            So long as any of the Notes is outstanding the Agent shall, within seven days of any request by the Issuer, any Guarantor or the Trustee certify to the Issuer or, as the case may be, the relevant Guarantor or the Trustee the number of definitive Notes held by it under this Agreement.

 

5.                                    DETERMINATION OF END OF DISTRIBUTION COMPLIANCE PERIOD

 

5.1                            In the case of a Tranche in respect of which there is only one Dealer, the Agent will determine the end of the Distribution Compliance Period in respect of the Tranche as being the fortieth day following the date determined and certified by the relevant Dealer to the Agent as being the date on which distribution of the Notes of that Tranche was completed.

 

5.2                            In the case of a Tranche in respect of which there is more than one Dealer but which is not issued on a syndicated basis, the Agent will determine the end of the Distribution Compliance Period in respect of the Tranche as being the fortieth day following the last of the dates determined and certified by all the relevant Dealers to the Agent as being the respective dates on which distribution of the Notes of that Tranche purchased by each Dealer was completed.

 

5.3                            In the case of a Tranche issued on a syndicated basis, the Agent will determine the end of the Distribution Compliance Period in respect of the Tranche as being the fortieth day following the date determined and certified by the Lead Manager to the Agent as being the date on which distribution of the Notes of that Tranche was completed.

 

5.4                            Immediately after it determines the end of the Distribution Compliance Period in respect of any Tranche, the Agent shall give notice of such determination to the Issuer, the Trustee, Euroclear, Clearstream, Luxembourg and the relevant Dealer or Lead Manager, as the case may be.

 

6.                                    TERMS OF ISSUE

 

6.1                            The Agent shall cause all Notes delivered to and held by it under this Agreement to be maintained in safe custody and shall ensure that Notes are issued only in accordance with the provisions of this Agreement, the Conditions and, where applicable, the relevant Global Notes.

 

6.2                            Subject to the procedures set out in the Procedures Memorandum, for the purposes of clause 3, the Agent is entitled to treat a telephone, telex or facsimile communication from a person purporting to be (and whom the Agent believes in good faith to be) the authorised representative of the Issuer and the Guarantors named in the list referred to in, or notified pursuant to, subclause 19.7, or any other list duly provided for the purpose by the Issuer and the Guarantors to the Agent, as sufficient instructions and authority of the Issuer and each Guarantor for the Agent to act in accordance with clause 3.

 

6.3                            In the event that a person who has signed a master Global Note held by the Agent on behalf of the Issuer ceases to be authorised as described in subclause 19.7, the Agent shall (unless the Issuer gives notice to the Agent that Notes signed by that person do not constitute valid and binding obligations of the Issuer or otherwise until replacements have been provided to the Agent) continue to have authority to issue Notes signed by that person, and the Issuer warrants to the Agent that those Notes shall be valid and binding obligations of the Issuer.  Upon any person ceasing to be authorised, the Issuer shall provide the Agent with replacement master Global Notes and the Agent shall, upon receipt of such replacements, cancel and destroy the master Global Notes held by it which are signed by that person and shall provide the Issuer with a certificate of destruction, specifying the master Global Notes so cancelled and destroyed.

 

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6.4                            If the Agent pays an amount (the Advance) to the Issuer on the basis that a payment (the Payment) has been or will be received from a Dealer and if the Payment is not received by the Agent on the date the Agent pays the Issuer, the Issuer shall repay to the Agent the Advance and shall pay interest on the Advance (or the unreimbursed portion thereof) from (and including) the date the Advance is made to (but excluding) the earlier of repayment of the Advance or receipt by the Agent of the Payment at a rate quoted at that time by the Agent as its cost of funding the Advance provided that evidence of the basis of such rate is given to the Issuer.  For the avoidance of doubt, the Agent shall not be obliged to pay any amount to the Issuer if it has not received satisfactory confirmation that it is to receive the amount from a Dealer.

 

6.5                            Except in the case of issues where the Agent does not act as receiving bank for the Issuer in respect of the purchase price of the Notes being issued, if on the Issue Date a Dealer does not pay the full purchase price due from it in respect of any Note (the Defaulted Note) and, as a result, the Defaulted Note remains in the Agent’s distribution account with Euroclear and/or Clearstream, Luxembourg after the Issue Date, the Agent will continue to hold the Defaulted Note to the order of the Issuer.  The Agent shall notify the Issuer immediately of the failure of the Dealer to pay the full purchase price due from it in respect of any Defaulted Note and, subsequently, shall (a) notify the Issuer immediately on receipt from the Dealer of the full purchase price in respect of any Defaulted Note and (b) pay to the Issuer the amount so received.

 

7.                                    PAYMENTS

 

7.1                            The Issuer (failing which the Guarantors) will:

 

(a)                               before 10.00 a.m. (Luxembourg time) on each date on which any payment in Euro in respect of any Note becomes due, transfer to an account specified by the Principal Paying Agent such amount in Euro as shall be sufficient for the purpose of such payment in funds settled through TARGET 2;

 

(b)                              before 10.00 a.m. (local time in the relevant principal financial centre of the country of the relevant currency) on each date on which any payment in GBP or USD in respect of any Note becomes due, transfer to an account specified by the Principal Paying Agent the amount in such currency as shall be sufficient for the purpose of such payment in funds settled through such payment system as the Agent and the Issuer may agree;

 

(c)                               before 10.00 a.m. (local time in the relevant principal financial centre of the country of the relevant currency) one Business Day prior to each date on which any payment in JPY or any other currency (other than Euro, GBP or USD) in respect of any Note becomes due, transfer to an account specified by the Principal Paying Agent the amount in such currency as shall be sufficient for the purpose of such payment;

 

or

 

prior to the issuance of the relevant Notes, consult and agree with the Principal Paying Agent, in relation to the settlement and timing for payment procedures in respect of any Notes for which the relevant currency is other than Euro, GBP or USD;

 

(d)                              before 10.00 a.m. (local time in the relevant principal financial centre of the country of the relevant currency) two Business Days prior to each date on which any payment in JPY or any other currency (other than Euro, GBP or USD) in respect of any Note becomes due, transfer to an account specified by the Principal Agent the amount in such currency as shall be sufficient for the purpose of such payment, if at the time of the payment the long-term deposit rating of the Issuer assigned by Fitch Rating Limited is below BBB or by Standard

 

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& Poors is below BBB or by Moodys is below Baa2 in funds settled through such payment system as the Agent and the Issuer may agree.

 

7.2                            Any funds paid by or by arrangement with the Issuer to the Agent under subclause 7.1 shall be held in the relevant account referred to in subclause 7.1 for payment to the Noteholders or Couponholders, as the case may be, until any Notes or matured Coupons become void under Condition 8 (Prescription).  In that event the Agent shall repay to the Issuer sums equivalent to the amounts which would otherwise have been repayable on the relevant Notes or Coupons.

 

7.3                            The Issuer (failing which the Guarantors) will ensure that no later than 10.00 a.m. (Luxembourg time) on the second Luxembourg Business Day (as defined below) immediately preceding the date on which any payment is to be made to the Agent under subclause 7.1, the Agent shall receive a payment confirmation by telex from the paying bank of the Issuer.  For the purposes of this subclause, Luxembourg Business Day means a day on which commercial banks and foreign exchange markets settle payments and are open for general business in Luxembourg.

 

7.4                            The Agent shall notify each of the other Paying Agents and the Trustee immediately:

 

(a)                               if it has not by the relevant date set out in subclause 7.1 received unconditionally the full amount in the Specified Currency required for the payment; and

 

(b)                              if it receives unconditionally the full amount of any sum payable in respect of the Notes or Coupons after that date.

 

The Agent shall, at the expense of the Issuer or, failing which, the Guarantors, immediately on receiving any amount as described in subclause 7.4(b), cause notice of that receipt to be published under Condition 13 (Notices).

 

7.5                            The Agent shall ensure that payments of both principal and interest in respect of a Temporary Global Note will only be made if certification of non-U.S. beneficial ownership as required by U.S. Treasury regulations has been received from Euroclear and/or Clearstream, Luxembourg in accordance with the terms of the Temporary Global Note.

 

7.6                            Unless it has received notice under subclause 7.4(a), each Paying Agent shall pay or cause to be paid all amounts due in respect of the Notes on behalf of the Issuer and the Guarantors in the manner provided in the Conditions.  If any payment provided for in subclause 7.1 is made late but otherwise in accordance with the provisions of this Agreement, the relevant Paying Agent shall nevertheless make payments in respect of the Notes as stated above following receipt by it of such payment.

 

7.7                            If for any reason the Agent considers in its sole discretion that the amounts to be received by it under subclause 7.1 will be, or the amounts actually received by it are, insufficient to satisfy all claims in respect of all payments then falling due in respect of the Notes, no Paying Agent shall be obliged to pay any such claims until the Agent has received the full amount of all such payments.

 

7.8                           Without prejudice to subclauses 7.6 and 7.7, if the Agent pays any amounts to the holders of Notes or Coupons or to any other Paying Agent at a time when it has not received payment in full in respect of the relevant Notes in accordance with subclause 7.1 (the excess of the amounts so paid over the amounts so received being the Shortfall), the Issuer (failing which the Guarantors) will, in addition to paying amounts due under subclause 7.1, pay to the Agent on demand interest (at a rate which represents the Agent’s cost of funding the Shortfall) on the Shortfall (or the unreimbursed portion thereof) until the receipt in full by the Agent of the Shortfall.

 

7.9                            The Agent shall on demand promptly reimburse each other Paying Agent for payments in respect of Notes properly made by each Paying Agent in accordance with this Agreement and the Conditions

 

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unless the Agent has notified the relevant Paying Agent, prior to its opening of business on the due date of a payment in respect of the Notes, that the Agent does not expect to receive sufficient funds to make payment of all amounts falling due in respect of the Notes.

 

7.10                    Whilst any Notes are represented by Global Notes, all payments due in respect of the Notes shall be made to, or to the order of, the holder of the Global Notes, subject to and in accordance with the provisions of the Global Notes.  On the occasion of each payment, (i) in the case of a CGN, the Paying Agent to which any Global Note was presented for the purpose of making the payment shall cause the appropriate Schedule to the relevant Global Note to be annotated so as to evidence the amounts and dates of the payments of principal and/or interest as applicable or (ii) in the case of any Global Note which is a NGN, the Agent shall instruct Euroclear and Clearstream, Luxembourg to make appropriate entries in their records to reflect such payment.

 

7.11                    If the amount of principal and/or interest then due for payment is not paid in full (otherwise than by reason of a witholding or deduction required by law to be made, any FATCA Witholding or a certification required by the terms of a Note not being received), (i) the Paying Agent to which a Note or Coupon (as the case may be) is presented for the purpose of making the payment shall, unless the Note is a NGN, make a record of the shortfall on the relevant Note or Coupon and the record shall, in the absence of manifest error, be prima facie evidence that the payment in question has not to that extent been made or (ii) in the case of any Global Note which is a NGN, the Agent shall instruct Euroclear and Clearstream, Luxembourg to make appropriate entries in their records to reflect such shortfall in payment.

 

7.12                    If the Issuer determines, in its sole discretion, that it will be required to withhold or deduct any FATCA Withholding in connection with the next scheduled payment, the Issuer will be entitled to re-direct or reorganise such payment in any way that it sees fit in order that the payment may be made free from FATCA Withholding.

 

8.                        DETERMINATIONS AND NOTIFICATIONS IN RESPECT OF NOTES AND INTEREST DETERMINATION

 

8.1                            Determinations and notifications

 

(a)                               The Agent shall, unless otherwise specified in the applicable Final Terms, make all the determinations and calculations which it is required to make under the Conditions, all subject to and in accordance with the Conditions.

 

(b)                              The Agent shall not be responsible to the Issuer, the Guarantors or to any third party as a result of the Agent having acted on any quotation given by any Reference Bank which subsequently may be found to be incorrect.

 

(c)                               The Agent shall promptly notify (and confirm in writing to) the Issuer, the Guarantors, the Trustee, the other Paying Agents and (in respect of a Series of Notes listed on a Stock Exchange) the relevant Stock Exchange by no later than the first day of each Interest Period of each Rate of Interest, Interest Amount and Interest Payment Date and all other amounts, rates and dates which it is obliged to determine or calculate under the Conditions as soon as practicable after their determination and of any subsequent amendments to them under the Conditions.

 

(d)                             The Agent shall use its best endeavours to cause each Rate of Interest, Interest Amount and Interest Payment Date and all other amounts, rates and dates which it is obliged to determine or calculate under the Conditions to be published as required in accordance with the Conditions as soon as possible after their determination or calculation.

 

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(e)                               If the Agent does not at any time for any reason determine and/or calculate and/or publish the Rate of Interest, Interest Amount and/or Interest Payment Date in respect of any Interest Period or any other amount, rate or date as provided in this clause, it shall immediately notify the Issuer, the Guarantors, the Trustee and the other Paying Agents of that fact.

 

(f)                                Determinations with regard to Notes required to be made by a Calculation Agent specified in the applicable Final Terms shall be made in the manner so specified.  Unless otherwise agreed between the Issuer and the relevant Dealer or the Lead Manager, as the case may be, or unless the Agent is the Calculation Agent (in which case the provisions of this Agreement shall apply), those determinations shall be made on the basis of a Calculation Agency Agreement substantially in the form of Schedule 1.  Notes of any Series may specify additional duties and obligations of any Paying Agent, the performance of which will be agreed between the Issuer and the relevant Paying Agent prior to the relevant Issue Date.

 

8.2                            Interest determination

 

(a)                               Where Screen Rate Determination is specified in the applicable Final Terms as the manner in which the Rate of Interest is to be determined, the Rate of Interest for each Interest Period will, subject as provided below, be either:

 

(i)                                  the offered quotation; or

 

(ii)                              the arithmetic mean (rounded if necessary to the fifth decimal place, with 0.000005 being rounded upwards) of the offered quotations,

 

(expressed as a percentage rate per annum), for the Reference Rate which appears or appear, as the case may be, on the Relevant Screen Page as at the Specified Time on the Interest Determination Date in question plus or minus (as indicated in the applicable Final Terms) the Margin (if any), all as determined by the Agent.  If five or more offered quotations are available on the Relevant Screen Page, the highest (or, if there is more than one highest quotation, one only of those quotations) and the lowest (or, if there is more than one lowest quotation, one only of those quotations) shall be disregarded by the Agent for the purpose of determining the arithmetic mean (rounded as provided above) of the offered quotations.

 

(b)                              If the Relevant Screen Page is not available or if, in the case of subclause 8.2(a)(i), no offered quotation appears or, in the case of subclause 8.2(a)(ii), fewer than three offered quotations appear, in each case as at the Specified Time, the Agent shall request each of the Reference Banks to provide the Agent with its offered quotation (expressed as a percentage rate per annum) for the Reference Rate at approximately the Specified Time on the Interest Determination Date in question.  If two or more of the Reference Banks provide the Agent with offered quotations, the Rate of Interest for the Interest Period shall be the arithmetic mean (rounded if necessary to the fifth decimal place with 0.000005 being rounded upwards) of the offered quotations plus or minus (as appropriate) the Margin (if any), all as determined by the Agent.

 

(c)                               If on any Interest Determination Date one only or none of the Reference Banks provides the Agent with an offered quotation as provided in the preceding paragraph, the Rate of Interest for the relevant Interest Period shall be the rate per annum which the Agent determines as being the arithmetic mean (rounded if necessary to the fifth decimal place, with 0.000005 being rounded upwards) of the rates, as communicated to (and at the request of) the Agent by the Reference Banks or any two or more of them, at which such banks were offered, at approximately the Specified Time on the relevant Interest Determination Date, deposits in the Specified Currency for a period equal to that which would have been used for the Reference Rate by leading banks in the London inter-bank market (if the Reference Rate is LIBOR) or the Euro-zone inter-bank market (if the Reference Rate is EURIBOR) plus or

 

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minus (as appropriate) the Margin (if any) or, if fewer than two of the Reference Banks provide the Agent with offered rates, the offered rate for deposits in the Specified Currency for a period equal to that which would have been used for the Reference Rate, or the arithmetic mean (rounded as provided above) of the offered rates for deposits in the Specified Currency for a period equal to that which would have been used for the Reference Rate, at which, at approximately the Specified Time on the relevant Interest Determination Date, any one or more banks (which bank or banks is or are in the opinion of the Issuer suitable for the purpose) informs the Agent it is quoting to leading banks in the London inter-bank market (if the Reference Rate is LIBOR) or the Euro-zone inter-bank market (if the Reference Rate is EURIBOR) plus or minus (as appropriate) the Margin (if any), provided that, if the Rate of Interest cannot be determined in accordance with the foregoing provisions of this paragraph, the Rate of Interest shall be determined as at the last preceding Interest Determination Date (though substituting, where a different Margin is to be applied to the relevant Interest Period from that which applied to the last preceding Interest Period, the Margin relating to the relevant Interest Period in place of the Margin relating to that last preceding Interest Period).

 

(d)                              If the Reference Rate from time to time in respect of Floating Rate Notes is specified in the applicable Final Terms as being other than LIBOR or EURIBOR, the Rate of Interest in respect of the Notes will be determined as provided in the applicable Final Terms.

 

9.                                    NOTICE OF ANY WITHHOLDING OR DEDUCTION

 

9.1                            If the Issuer or any Guarantor is, in respect of any payment, compelled to withhold or deduct any amount for or on account of taxes, duties, assessments or governmental charges as specifically contemplated under the Conditions, it shall give notice of that fact to the Trustee and the Agent as soon as it becomes aware of the requirement to make the withholding or deduction and shall give to the Trustee and the Agent such information as it shall require to enable it to comply with the requirement.

 

9.2                            If any Paying Agent is, in respect of any payment of principal or interest in respect of the Notes, compelled to withhold or deduct any amount for or on account of any taxes, duties, assessments or governmental charges as specifically contemplated under the Conditions, other than arising under subclause 9.1 or by virtue of the relevant holder failing to satisfy any certification or other requirement in respect of its Notes, it shall give notice of that fact to the Issuer, the Trustee and the Agent as soon as it becomes aware of the compulsion to withhold or deduct.

 

10.                            DUTIES OF THE PAYING AGENTS IN CONNECTION WITH EARLY REDEMPTION

 

10.1                    If the Issuer decides to redeem any Notes for the time being outstanding before their Maturity Date in accordance with the Conditions, the Issuer shall give notice of the decision to the Trustee and the Agent stating the date on which the Notes are to be redeemed and the nominal amount of Notes to be redeemed as soon as reasonably practicable before the date on which the Issuer will give notice to the Noteholders in accordance with the Conditions of the redemption in order to enable the Agent to carry out its duties in this Agreement and in the Conditions.

 

10.2                    If some only of the Notes are to be redeemed, the Agent shall, in the case of Definitive Notes, make the required drawing in accordance with the Conditions but shall give the Issuer reasonable notice of the time and place proposed for the drawing and the Issuer shall be entitled to send representatives to attend the drawing and shall, in the case of Notes in global form, co-ordinate the selection of Notes to be redeemed with Euroclear and Clearstream, Luxembourg, all in accordance with the Conditions.

 

10.3                    The Agent shall publish the notice required in connection with any redemption and shall, if applicable, at the same time also publish a separate list of the serial numbers of any Notes in definitive form previously drawn and not presented for redemption.  The redemption notice shall

 

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specify the date fixed for redemption, the redemption amount, the manner in which redemption will be effected and, in the case of a partial redemption of Definitive Notes, the serial numbers of the Notes to be redeemed.  The notice will be published in accordance with the Conditions.  The Agent will also notify the Trustee and the other Paying Agents of any date fixed for redemption of any Notes.

 

10.4                    Each Paying Agent will keep a stock of Put Notices and will make them available on demand to holders of Definitive Notes, the Conditions of which provide for redemption at the option of Noteholders.  Upon receipt of any Note deposited in the exercise of a put option in accordance with the Conditions, the Paying Agent with which the Note is deposited shall hold the Note (together with any Coupons and Talons relating to it deposited with it) on behalf of the depositing Noteholder (but shall not, save as provided below, release it) until the due date for redemption of the relevant Note consequent upon the exercise of the option, when, subject as provided below, it shall present the Note (and any such unmatured Coupons and Talons) to itself for payment of the amount due together with any interest due on the date of redemption in accordance with the Conditions and shall pay those moneys in accordance with the directions of the Noteholder contained in the relevant Put Notice.  If, prior to the due date for its redemption, an Event of Default has occurred and is continuing or the Note becomes immediately due and repayable or if upon due presentation payment of the redemption moneys is improperly withheld or refused, the Paying Agent concerned shall post the Note (together with any such Coupons and Talons) by uninsured post to, and at the risk of, the relevant Noteholder (unless the Noteholder has otherwise requested and paid the costs of insurance to the relevant Paying Agent at the time of depositing the Notes) at the address given by the Noteholder in the relevant Put Notice.  At the end of each period for the exercise of any put option, each Paying Agent shall promptly notify the Agent of the principal amount of the Notes in respect of which the option has been exercised with it together with their serial numbers and the Agent shall promptly notify those details to the Issuer.

 

11.                            RECEIPT AND PUBLICATION OF NOTICES

 

11.1                    Immediately after it receives a demand or notice from any Noteholder in accordance with the Conditions, the Agent shall forward a copy to the Issuer, the Trustee and the Guarantors.

 

11.2                    On behalf of and at the request and expense of the Issuer (failing which the Guarantors), the Agent shall cause to be published all notices required to be given by the Issuer, the Trustee and the Guarantors to the Noteholders in accordance with the Conditions.

 

12.                            CANCELLATION OF NOTES, COUPONS AND TALONS

 

12.1                    All Notes which are redeemed, all Global Notes which are exchanged in full, all Coupons which are paid and all Talons which are exchanged shall be cancelled by the Paying Agent by which they are redeemed, exchanged or paid.  In addition, the Issuer and the Guarantors shall immediately notify the Agent and the Trustee in writing of all Notes which are purchased on behalf of the Issuer, the Guarantors or any of their respective Subsidiaries and all such Notes surrendered to a Paying Agent for cancellation, together (in the case of Definitive Notes) with all unmatured Coupons or Talons (if any) attached to them or surrendered with them, shall be cancelled by the Paying Agent to which they are surrendered.  Each of the Paying Agents shall give to the Agent details of all payments made by it and shall deliver all cancelled Notes, Coupons and Talons to the Agent or as the Agent may specify.

 

12.2                    If the Notes are cancelled in accordance with this clause 12, the Principal Paying Agent shall promptly inform the Luxembourg Stock Exchange (as long and if such Notes are listed on the Luxembourg Stock Exchange) of any cancellation of the Notes.

 

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12.3                    The Agent shall deliver to the Issuer and the Trustee as soon as reasonably practicable and in any event within three months after the date of each repayment, payment, cancellation or replacement, as the case may be, a certificate stating:

 

(a)                               the aggregate nominal amount of Notes which have been redeemed and the aggregate amount paid in respect of them;

 

(b)                              the number of Notes cancelled together (in the case of Notes in definitive form) with details of all unmatured Coupons or Talons attached to them or delivered with them;

 

(c)                               the aggregate amount paid in respect of interest on the Notes;

 

(d)                              the total number by maturity date of Coupons and Talons cancelled; and

 

(e)                               (in the case of Definitive Notes) the serial numbers of the Notes.

 

12.4                    The Agent shall destroy all cancelled Notes, Coupons and Talons and, immediately following their destruction, send to the Issuer and the Trustee a certificate stating the serial numbers of the Notes (in the case of Notes in definitive form) and the number by maturity date of Coupons and Talons destroyed.

 

12.5                    Without prejudice to the obligations of the Agent under subclause 12.3, the Agent shall keep a full and complete record of all Notes, Coupons and Talons (other than serial numbers of Coupons) and of their redemption, purchase on behalf of the Issuer, any Guarantor or any of their respective Subsidiaries and cancellation, payment or replacement (as the case may be) and of all replacement Notes, Coupons or Talons issued in substitution for mutilated, defaced, destroyed, lost or stolen Notes, Coupons or Talons.  The Agent shall in respect of the Coupons of each maturity retain (in the case of Coupons other than Talons) until the expiry of ten years from the Relevant Date in respect of such Coupons and (in the case of Talons) indefinitely either all paid or exchanged Coupons of that maturity or a list of the serial numbers of Coupons of that maturity still remaining unpaid or unexchanged.  The Agent shall at all reasonable times make the record available to the Issuer, the Guarantors, the Trustee and any persons authorised by either of them for inspection and for the taking of copies of it or extracts from it.

 

12.6                    The Agent is authorised by the Issuer and instructed to (a) in the case of any Global Note which is a CGN, to endorse or to arrange for the endorsement of the relevant Global Note to reflect the reduction in the nominal amount represented by it by the amount so redeemed or purchased and cancelled and (b) in the case of any Global Note which is a NGN, to instruct Euroclear and Clearstream, Luxembourg to make appropriate entries in their records to reflect such redemption or purchase and cancellation, as the case may be; provided, that, in the case of a purchase or cancellation, the Issuer has notified the Agent of the same in accordance with clause12.1.

 

13.                            ISSUE OF REPLACEMENT NOTES, COUPONS AND TALONS

 

13.1                    The Issuer will cause a sufficient quantity of additional forms of Notes, Coupons and Talons to be available, upon request, to the Agent or the Principal Paying Agent, as the case may be, at its specified office for the purpose of issuing replacement Notes, Coupons and Talons as provided below.

 

13.2                    The Agent will, subject to and in accordance with the Conditions and this clause, cause to be delivered any replacement Notes, Coupons and Talons which the Issuer may determine to issue in place of Notes, Coupons and Talons which have been lost, stolen, mutilated, defaced or destroyed.

 

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13.3                    In the case of a mutilated or defaced Note, the Agent shall ensure that (unless otherwise covered by such indemnity as the Issuer may reasonably require) any replacement Note will only have attached to it Coupons and Talons corresponding to those (if any) attached to the mutilated or defaced Note which is presented for replacement.

 

13.4                    The Agent shall obtain verification in the case of an allegedly lost, stolen or destroyed Note, Coupon or Talon in respect of which the serial number is known, that the Note, Coupon or Talon has not previously been redeemed, paid or exchanged, as the case may be.  The Agent shall not issue any replacement Note, Coupon or Talon unless and until the claimant shall have:

 

(a)                               paid the costs and expenses incurred in connection with the issue;

 

(b)                              provided it with such evidence and indemnity as the Issuer may reasonably require; and

 

(c)                               in the case of any mutilated or defaced Note, Coupon or Talon, surrendered it to the Agent.

 

13.5                    The Agent shall cancel any mutilated or defaced Notes, Coupons and Talons in respect of which replacement Notes, Coupons and Talons have been issued under this clause and shall furnish the Issuer with a certificate stating the serial numbers of the Notes, Coupons and Talons cancelled and, unless otherwise instructed by the Issuer in writing, shall destroy the cancelled Notes, Coupons and Talons and give to the Issuer and the Trustee a destruction certificate containing the information specified in subclause 12.4.

 

13.6                    The Agent shall, on issuing any replacement Note, Coupon or Talon, immediately inform the Issuer and the other Paying Agents of the serial number of the replacement Note, Coupon or Talon issued and (if known) of the serial number of the Note, Coupon or Talon in place of which the replacement Note, Coupon or Talon has been issued.  Whenever replacement Coupons or Talons are issued, the Agent shall also notify the other Paying Agents of the maturity dates of the lost, stolen, mutilated, defaced or destroyed Coupons or Talons and of the replacement Coupons or Talons issued.

 

13.7                    The Agent shall keep a full and complete record of all replacement Notes, Coupons and Talons issued and shall make the record available at all reasonable times to the Issuer, the Guarantors, the Trustee and any persons authorised by either of them for inspection and for the taking of copies of it or extracts from it.

 

13.8                    Whenever any Note, Coupon or Talon for which a replacement Note, Coupon or Talon has been issued and in respect of which the serial number is known is presented to a Paying Agent for payment, the relevant Paying Agent shall immediately send notice of that fact to the Issuer and the other Paying Agents.

 

13.9                    The Paying Agents shall issue further Coupon sheets against surrender of Talons.  A Talon so surrendered shall be cancelled by the relevant Paying Agent who (except where the Paying Agent is the Agent) shall inform the Agent of its serial number.  Further Coupon sheets issued on surrender of Talons shall carry the same serial number as the surrendered Talon.

 

14.                            COPIES OF DOCUMENTS AVAILABLE FOR INSPECTION

 

14.1                    The Guarantees shall be deposited with the Agent and shall be held in safe custody by it on behalf of the Noteholders and the Couponholders at its specified office for the time being.

 

14.2                    Each Paying Agent shall hold available for inspection at its specified office during normal business hours copies of all documents required to be so available by the Conditions of any Notes or the rules of any relevant Stock Exchange (or any other relevant authority).  For these purposes, the Issuer and

 

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the Guarantors shall provide the Paying Agents with sufficient copies of each of the relevant documents.

 

15.                            MEETINGS OF NOTEHOLDERS

 

15.1                    The provisions of Schedule 3 (Provisions for Meeting of Noteholders) of the Trust Deed, which are subject to compliance with the laws of the Republic of Italy, shall apply to meetings of the Noteholders and shall have effect in the same manner as if set out in this Agreement.

 

15.2                    Each of the Paying Agents shall (i) issue voting certificates and voting instructions, (ii) give the relevant notices to the Issuer and the Trustee, (iii) keep a full and complete record of all voting certificates and voting instructions issued by it in accordance with Schedule 3 (Provisions for Meeting of Noteholders) of the Trust Deed.

 

15.3                    The constitution of meetings and the validity of resolutions thereof shall be governed by the provisions of Italian laws (including without limitation Legislative Decree No. 58 of 24 February 1998, as amended) and the Issuer’s by-laws in force from time to time. In particular: (a) if Italian law and the Issuer’s by-laws provides for a multiple call meeting, a meeting will be validly held if (i) in the case of first call there are one or more persons present holding Notes or voting certificates or being proxies and holding or representing in aggregate not less than one half of the nominal amount of the Notes for the time being outstanding; (ii) in case of second call there are one or more persons present holding Notes or voting certificates or being proxies and holding or representing in aggregate more than one third of the nominal amount of the Notes for the time being outstanding; (iii) in case of further call there are one or more persons present holding Notes or voting certificates or being proxies and holding or representing in aggregate more than one fifth of the nominal amount of the Notes for the time being outstanding; and (b) if Italian law and the Issuer’s by-laws provides for a single call meeting, the quorum under (iii) above shall apply, provided that a higher majority may be required by the Issuer’s by-laws.

 

15.4                    The resolutions at any meeting convened on first call or second call or further call or, as the case may be, on single call Meeting may only be adopted by the favourable vote of one or more persons holding Notes or voting certificates or being proxies representing not less than two thirds of the nominal amount of the Notes represented at the meeting PROVIDED THAT any proposal at any meeting to modify the Conditions of the Notes, as provided under Article 2415 of the Italian Civil Code may only be sanctioned by the passing of a resolution where the majority required to pass such resolution shall be the higher of (i) votes cast by one or more persons present holding Notes in definitive form or voting certificates or being proxies and holding or representing in the aggregate more than one-half of the nominal amount of the Notes for the time being outstanding, and (ii) one or more persons holding or representing not less than two thirds of the Notes represented at the meeting, provided that a different majority may be required by the Italian applicable law and the Issuer’s by-laws in force from time to time.

 

16.                            COMMISSIONS AND EXPENSES

 

16.1                    The Issuer or, failing the Issuer, the Guarantors shall pay to the Paying Agent such commissions in respect of the services of the Paying Agents under this Agreement as shall be agreed between the Issuer, the Guarantors and the Paying Agent. Neither the Issuer nor the Guarantors shall be concerned with the apportionment of payment among the Paying Agents.

 

16.2                    The Issuer or, failing the Issuer, the Guarantors shall also pay to the Paying Agent any documented and properly incurred out-of-pocket expenses (including legal, advertising, postage and fax expenses and any applicable value added tax and stamp, issue, documentary or equivalent taxes and duties

 

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thereon) properly incurred by the Paying Agent in connection with its services under this Agreement and by any other Paying Agent under this Agreement.

 

17.                            INDEMNITY

 

17.1                    The Issuer or, failing the Issuer, the Guarantors undertakes to indemnify each of the Paying Agents against all losses, liabilities, costs, claims, actions, damages, expenses or demands which any of them incur or which may be made against any of them as a direct result of or in connection with the appointment of or the exercise of the powers and duties by any Paying Agent under this Agreement except as may result from its own default, gross negligence or bad faith or that of its directors, officers or employees or any of them, or material breach by it of the terms of this Agreement.

 

17.2                    Each Paying Agent shall severally indemnify the Issuer and the Guarantors against all losses, liabilities, costs, claims, actions, damages, expenses or demands which any of them incur as a direct result of the negligence, default or bad faith of such Paying Agent or of its officers, directors or employees.

 

17.3                    Notwithstanding anything else in this Agreement, including, without limitation any indemnity given by the Agent, neither the Agent nor any of its directors, officers, employees or agents shall be liable to the Issuer or any other person for any:

 

(a)                               loss of profit;

 

(b)                              loss of revenue:

 

(c)                               loss of anticipated savings;

 

(d)                              loss of contract or opportunity;

 

(e)                               loss of goodwill or reputation; or

 

(f)                                indirect or consequential loss of whatever nature including any loss of a type described in sub clauses

 

(a) to (e) (inclusive) above which could be regarded as indirect or consequential,

 

arising from any representation, any breach of implied term or any duty at common law or under any statute or express term of this Agreement, and whether such liability is asserted on the basis of contract, tort, (including negligence) or otherwise and whether or not reasonably foreseeable or actually contemplated by the parties.

 

17.4                    The indemnities set out above shall survive any termination of this Agreement.

 

18.                            RESPONSIBILITY OF THE PAYING AGENTS

 

18.1                    No Paying Agent shall be responsible to anyone with respect to the validity of this Agreement or the Notes, or Coupons or for any act or omission by it in connection with this Agreement or any Note, or Coupon except for its own negligence, default or bad faith, including that of its officers and employees.

 

18.2                    No Paying Agent shall have any duty or responsibility in the case of any default by the Issuer or the Guarantors in the performance of its obligations under the Conditions, the Trust Deed or, in the case of receipt of a written demand from a Noteholder or Couponholder, with respect to such default, provided however that immediately on receiving any notice given by a Noteholder in accordance

 

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with Condition 9 (Events of Default), the Agent notifies the Issuer, the Trustee and, where applicable, the Guarantors of the fact and furnishes it with a copy of the notice].

 

18.3                    Whenever in the performance of its duties under this Agreement a Paying Agent shall deem it desirable that any matter be established by the Issuer, the Trustee or any Guarantor prior to taking or suffering any action under this Agreement, the matter may be deemed to be conclusively established by a certificate signed by the Issuer, the Trustee or any Guarantor and delivered to the Paying Agent and the certificate shall be a full authorisation to the Paying Agent for any action taken or suffered in good faith by it under the provisions of this Agreement in reliance upon the certificate.

 

18.4                    Notwithstanding any other provisions of this Agreement, if the Agent is rendered unable to carry out its obligations under this Agreement as a result of the occurrence of a Force Majeure Event, the Agent shall not be liable for any failure to carry out such obligations for so long as it is so prevented.

 

For the purposes of this clause 18.4, a “Force Majeur Event” means any event due to any cause beyond the reasonable control of the Agent, such as restrictions on the convertibility or transferability of currencies, requisitions, unavailability of communications systems, sabotage, fire, flood, explosion, acts of God, civil commotion, strikes or industrial action of any kind (other than any such actions or strikes undertaken by the Agent itself or its employees), riots, insurrection, war or acts of government.

 

19.                            CONDITIONS OF APPOINTMENT

 

19.1                    Each Paying Agent shall be entitled to deal with money paid to it by the Issuer or the Guarantors for the purpose of this Agreement in the same manner as other money paid to a banker by its customers except:

 

(a)                               that it shall not exercise any right of set-off, lien or similar claim in respect of the money; and

 

(b)                              that it shall not be liable to account to the Issuer, the Trustee or the Guarantors for any interest on the money.

 

19.2                    In acting under this Agreement and in connection with the Notes, each Paying Agent shall act solely as an agent of the Issuer and the Guarantors (and, in the circumstances referred to in subclause 2.4, the Trustee) and will not assume any obligations towards or relationship of agency or trust for or with any of the owners or holders of the Notes, Coupons or Talons.

 

19.3                    Each Paying Agent undertakes to the Issuer and the Guarantors to perform its duties, and shall be obliged to perform the duties and only the duties, specifically stated in this Agreement (including Schedule 3 in the case of the Agent), the Conditions, the Trust Deed and the Procedures Memorandum, and no implied duties or obligations shall be read into any of those documents against any Paying Agent, other than the duty to act honestly and in good faith and to exercise the diligence of a reasonably prudent agent in comparable circumstances.  Each of the Paying Agents (other than the Agent) agrees that if any information that is required by the Agent to perform the duties set out in Schedule 3 becomes known to it, it will promptly provide such information to the Agent.

 

19.4                    The Agent may consult where necessary, at the cost of the Issuer or failing the Issuer the Guarantors (such costs to be duly documented), with legal and other professional advisers and the opinion of the advisers shall be full and complete protection in respect of any action taken, omitted or suffered under this Agreement in good faith and in accordance with the opinion of the advisers.

 

19.5                    Each Paying Agent shall be protected and shall incur no liability in respect of any action taken, omitted or suffered in reliance on any instruction from the Issuer or any Guarantor or any document

 

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which it reasonably believes to be genuine and to have been delivered by the proper party or on written instructions from the Issuer or any Guarantor.

 

19.6                    Any Paying Agent and its officers, directors and employees may become the owner of, and/or acquire any interest in, any Notes, Coupons or Talons with the same rights that it or he would have had if the Paying Agent concerned were not appointed under this Agreement, and may engage or be interested in any financial or other transaction with the Issuer or any of the Guarantors and may act on, or as depositary, trustee or agent for, any committee or body of holders of Notes or Coupons or in connection with any other obligations of the Issuer or the Guarantors as freely as if the Paying Agent were not appointed under this Agreement.

 

19.7                    The Issuer and each of the Guarantors shall provide the Agent with a certified copy of the list of persons authorised to execute documents and take action on its behalf in connection with this Agreement and shall notify the Agent immediately in writing if any of those persons ceases to be authorised or if any additional person becomes authorised together, in the case of an additional authorised person, with evidence satisfactory to the Agent that the person has been authorised.

 

19.8                    Except as otherwise permitted in the Trust Deed, the Conditions or as ordered by a court of competent jurisdiction or as required by law or applicable regulations, the Issuer, the Guarantors, the Trustee and each of the Paying Agents shall be entitled to treat the bearer of any Note or Coupon as the absolute owner of it (whether or not it is overdue and notwithstanding any notice of ownership or writing on it or notice of any previous loss or theft of it).

 

19.9                    The amount of the Programme may be increased by the Issuer in accordance with the procedure set out in the Programme Agreement.  Upon any increase being effected, all references in this Agreement to the amount of the Programme shall be deemed to be references to the increased amount.

 

19.10            The Agent shall, upon request from the Issuer, the Trustee or any Dealer, inform such person of the aggregate nominal amount of the Notes, or Notes of any particular Series, then outstanding at the time of such request.

 

19.11            Each Paying Agent shall, forthwith on demand, upon the Issuer and the Guarantors being discharged from their respective obligations to make payments in respect of any Notes under the Conditions (and provided there is no outstanding bona fide and proper claim in respect of any such payments) pay to the Issuer or the Guarantors, as the case may be, sums equivalent to any outstanding amounts paid to it by the Issuer or the Guarantors, as the case may be, in respect of such Notes.

 

20.                            COMMUNICATIONS BETWEEN THE PARTIES

 

A copy of all communications relating to the subject matter of this Agreement between the Issuer, the Trustee or the Guarantors and any Paying Agent (other than the Agent) shall be sent to the Agent.

 

21.                            CHANGES IN PAYING AGENTS

 

21.1                    Each of the Issuer and the Guarantors agrees that, for so long as any Note is outstanding, or until moneys for the payment of all amounts in respect of all outstanding Notes have been made available to the Agent and have been returned to the Issuer or the Guarantors, as the case may be, as provided in this Agreement:

 

(a)                               so long as any Notes are listed on any Stock Exchange, there will at all times be a Paying Agent, which may be the Agent, with a specified office in the place required by the rules and regulations of the relevant Stock Exchange or any other relevant authority;

 

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(b)                              there will at all times be an Agent;

 

(c)                               there will at all times be a Paying Agent in a Member State of the European Union that will not be obliged to withhold or deduct tax pursuant to European Council Directive 2003/48/EC or any law implementing or complying with, or introduced in order to conform to, such Directive; and

 

(d)                              there will at all times be a Paying Agent in a jurisdiction within Europe, other than the jurisdiction in which the Issuer or any of the Guarantors is incorporated.

 

In addition, the Issuer and the Guarantors shall immediately appoint a Paying Agent having a specified office in New York City in the circumstances described in Condition 5.4 (Payments - General provisions applicable to payments).  Any variation, termination, appointment or change shall only take effect (other than in the case of insolvency (as provided in subclause 21.5)) after not less than 30 nor more than 45 days’ prior notice shall have been given to the Noteholders in accordance with Condition 13 (Notices).

 

21.2                    The Agent may (subject as provided in subclause 21.4) at any time resign by giving at least 90 days’ written notice to the Issuer, the Guarantors and the Trustee specifying the date on which its resignation shall become effective.

 

21.3                    The Agent may (subject as provided in subclause 21.4) be removed at any time by the Issuer and the Guarantors, with the prior written approval of the Trustee (which shall not be unreasonably withheld), on at least 90 days’ notice in writing from the Issuer and the Guarantors specifying the date when the removal shall become effective.

 

21.4                    Any resignation under subclause 21.2 or removal of the Agent under subclauses 21.3 or 21.5 shall only take effect upon the appointment by the Issuer and the Guarantors of a successor Agent approved in writing by the Trustee and (other than in the case of insolvency of the Agent) on the expiry of the notice to be given under clause 24.  Each of the Issuer and the Guarantors agree with the Agent that if, by the day falling 10 days before the expiry of any notice under subclause 21.2, the Issuer and the Guarantors have not appointed a successor Agent approved in writing by the Trustee, then the Agent shall be entitled, on behalf of the Issuer and the Guarantors, to appoint in its place as a successor Agent a reputable financial institution of good standing which the Issuer, the Guarantors and the Trustee shall approve.

 

21.5                    In case at any time any Paying Agent resigns, or is removed, or becomes incapable of acting or is adjudged bankrupt or insolvent, or files a voluntary petition in bankruptcy or makes an assignment for the benefit of its creditors or consents to the appointment of an administrator, liquidator or administrative or other receiver of all or a substantial part of its property, or admits in writing its inability to pay or meet its debts as they mature or suspends payment of its debts, or if any order of any court is entered approving any petition filed by or against it under the provisions of any applicable bankruptcy or insolvency law or if a receiver of it or of all or a substantial part of its property is appointed or if any officer takes charge or control of it or of its property or affairs for the purpose of rehabilitation, conservation or liquidation, a successor Paying Agent which shall be a reputable financial institution of good standing may be appointed by the Issuer and the Guarantors, with the prior written approval of the Trustee (which shall not be unreasonably withheld).  Upon the appointment of a successor Paying Agent and acceptance by it of its appointment and (other than in case of insolvency of the Paying Agent when it shall be of immediate effect) upon expiry of the notice to be given under clause 24, the Paying Agent so superseded shall cease to be a Paying Agent under this Agreement.

 

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21.6                    Subject to subclause 21.1, the Issuer and the Guarantors may, after prior consultation with the Agent and with the prior written approval of the Trustee (which shall not be unreasonably withheld), terminate the appointment of any of the other Paying Agents at any time and/or appoint one or more further or other Paying Agents by giving to the Agent and to the relevant other Paying Agent at least 90 days’ notice in writing to that effect (other than in the case of insolvency).

 

21.7                    Subject to subclause 21.1, all or any of the Paying Agents (other than the Agent) may resign their respective appointments under this Agreement at any time by giving the Issuer, the Guarantors, the Trustee and the Agent at least 45 days’ written notice to that effect.

 

21.8                    Upon its resignation or removal becoming effective, a Paying Agent shall:

 

(a)                               in the case of the Agent, immediately transfer all moneys and records held by it under this Agreement to the successor Agent; and

 

(b)                              be entitled to the payment by the Issuer (failing which the Guarantors) of the commissions, fees and expenses payable in respect of its services under this Agreement before termination in accordance with the terms of clause 16.

 

21.9                    Upon its appointment becoming effective, a successor or new Paying Agent shall, without any further action, become vested with all the authority, rights, powers, duties and obligations of its predecessor or, as the case may be, a Paying Agent with the same effect as if originally named as a Paying Agent under this Agreement.

 

21.10            Notwithstanding any other provision in this Agreement, if the Issuer determines, in its sole discretion, that it will be required to withhold or deduct any FATCA Withholding in connection with the next scheduled payment and such FATCA Withholding would not have arisen but for an Agent not being or having ceased to be a person to whom payments are free from FATCA Withholding, the Issuer will be entitled to terminate the Paying Agent without notice and such termination will be effective from any such time specified in writing to such Agent.

 

22.                            DELEGATION

 

Notwithstanding anything to the contrary herein or in any other agreement, if in the Paying Agent’s opinion, acting reasonably, it deems it appropriate to delegate any of its roles, duties or obligations created hereunder or under any other agreement (or any part thereof) to a third party, the Issuer hereby acknowledges the potential for, and acquiesces to, such delegation. The Paying Agent acknowledges that, in the absence of any contractual right of action between the Issuer and the person to whom such delegation is made, the Paying Agent shall be liable for any acts or omissions committed by such person, to the same extent as it would have been liable hereunder had it performed such acts or omissions itself.

 

23.                            MERGER AND CONSOLIDATION

 

Any corporation into which any Paying Agent may be merged or converted or to which the business of such Paying Agent is transferred, or any corporation with which a Paying Agent may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which a Paying Agent shall be a party, or any corporation to which a Paying Agent shall sell or otherwise transfer all or substantially all of its assets shall, on the date when the merger, conversion, consolidation or transfer becomes effective and to the extent permitted by any applicable laws, become the successor Paying Agent under this Agreement without the execution or filing of any paper or any further act on the part of the parties to this Agreement, unless otherwise required by the Issuer, the Guarantors or the Trustee, and after the said effective date all references in this Agreement to the relevant Paying Agent shall be deemed to be references to such successor

 

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corporation.  Written notice of any such merger, conversion, consolidation or transfer shall immediately be given to the Issuer, the Guarantors and the Trustee by the relevant Paying Agent.

 

24.                            NOTIFICATION OF CHANGES TO PAYING AGENTS

 

Following receipt of notice of resignation from a Paying Agent and immediately after appointing a successor or new Paying Agent or on giving notice to terminate the appointment of any Paying Agent, the Agent (on behalf of and at the expense of the Issuer, failing which the Guarantors) shall promptly, and in any event not less than 30 days before the resignation takes effect, give notice to the Noteholders under Condition 13.

 

25.                            CHANGE OF SPECIFIED OFFICE

 

If any Paying Agent determines to change its specified office it shall give to the Issuer, the Guarantor, the Trustee and the Agent written notice of that fact giving the address of the new specified office which shall be in the same city and stating the date on which the change is to take effect, which shall not be less than 45 days after the notice.  The Agent (on behalf and at the expense of the Issuer (failing which the Guarantors)) shall within 15 days of receipt of the notice (unless the appointment of the relevant Paying Agent is to terminate pursuant to clause 21 on or prior to the date of the change) give or cause to be given not more than 45 days’ nor less than 30 days’ notice of the change to the Noteholders in accordance with the Conditions.

 

26.                            COMMUNICATIONS

 

26.1                    All communications shall be by fax or letter delivered by hand or (but only where specifically provided in the Procedures Memorandum) by telephone.  Each communication shall be made to the relevant party at the fax number or address or telephone number and, in the case of a communication by fax or letter, marked for the attention of, or (in the case of a communication by telephone) made to, the person or department from time to time specified in writing by that party to the others for the purpose.  The initial telephone number, fax number and person or department so specified by each party are set out in the Procedures Memorandum.

 

26.2                    A communication shall be deemed received (if by fax) when an acknowledgement of receipt is received, (if by telephone) when made or (if by letter) when delivered, in each case in the manner required by this clause.  However, if a communication is received after business hours on any business day or on a day which is not a business day in the place of receipt it shall be deemed to be received and become effective at the opening of business on the next business day in the place of receipt.  Every communication shall be irrevocable save in respect of any manifest error in it.

 

26.3                    Any notice given under or in connection with this Agreement shall be in English.  All other documents provided under or in connection with this Agreement shall be:

 

(a)                               in English; or

 

(b)                              if not in English, accompanied by a certified English translation and, in this case, the English translation shall prevail unless the document is a statutory or other official document.

 

27.                            TAXES AND STAMP DUTIES

 

The Issuer (failing which the Guarantors) agrees to pay any and all stamp and other documentary taxes or duties which may be payable in connection with the execution, delivery, performance and enforcement of this Agreement.

 

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28.                            AMENDMENTS

 

The Agent, the Issuer and the Trustee may agree, without the consent of the Noteholders or Couponholders, to:

 

(a)                               any modification of this Agreement which is not in the opinion of the Trustee prejudicial to the interests of the Noteholders; or

 

(b)                              any modification (except as mentioned in the Conditions) of the Notes, the Coupons or this Agreement which, in the opinion of the Trustee, is of a formal, minor or technical nature or is made to correct a manifest error or to comply with mandatory provisions of law.

 

Any modification so made shall be binding on the Noteholders and the Couponholders and, unless the Trustee otherwise agrees, shall be notified to the Noteholders in accordance with Condition 13 (Notices) as soon as practicable after it has been agreed.

 

29.                            CONFIDENTIALITY AND DATA PROTECTION

 

The Agent and the Issuer undertake to respect and protect the confidentiality of all information acquired as a result of or pursuant to this Agreement and will not, without the other party’s prior written consent, disclose any such information to a third party, unless it is required to do so by any applicable law or regulation or is specifically authorised to do so hereunder or by any separate agreement, especially where the provision of such information is the object or part of the service to by provided by the Agent.

 

In order to provide its services to the Issuer and to satisfy legal obligations it is subject to, the Agent will process (in particular, without being limited to, by collecting, recording, organising, storing, adapting or altering, retrieving, consulting, using, disclosing by transmission, disseminating or otherwise making available to third parties) data relating to the Issuer (including, without being limited to the Issuer’s name, address, occupation, nationality, corporate form, etc.). The Issuer may freely refuse to provide the Agent with this information and thus prevent the Agent from using these data-processing systems. However, such a refusal will be an obstacle preventing the start or continuation of business relations between the Issuer and the Agent. The Agent will only ask for the information needed to fulfil its obligations and provide the Issuer with its services. The Issuer may, at its request, access the data relating to it and will be entitled to have it amended. The data will be kept for the period which the Agent is required to keep it by law.

 

The Issuer expressly authorises the transfer of data to third parties or to the head office of the Agent (or any other person providing services to the Agent ) if such transmission is required to allow the Agent to provide its services to the Issuer or to satisfy legal obligations it or such third party is subject to (subject always to be bound by any confidentiality requirements in relation to such data unless required by law). The Issuer expressly authorises such transfer, including, to the extent relevant, any transfer to third parties established outside the European Communities (subject always to be bound by any confidentiality requirements in relation to such data unless required by law).

 

30.                            CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999

 

A person who is not a party to this Agreement has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this Agreement, but this does not affect any right or remedy of a third party which exists or is available apart from that Act.

 

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31.                            GOVERNING LAW AND SUBMISSION TO JURISDICTION

 

31.1                    This Agreement and any non-contractual obligations arising out of or in connection with this Agreement are governed by, and shall be construed in accordance with, the laws of England.

 

31.2                    Subject to subclause 31.4, the courts of England are to have jurisdiction to settle any dispute which may arise out of or in connection with this Agreement, including a dispute relating to any non-contractual obligations arising out of or in connection with this Agreement, (a Dispute) and, accordingly, the Issuer and each Guarantor in relation to any Dispute submits to the jurisdiction of such courts.

 

31.3                    For the purposes of this clause 31, the Issuer and the Guarantors hereby irrevocably waive any objection which it may have now or hereafter to the laying of the venue of any suit, action or proceedings (together referred to as Proceedings) in any such court on the grounds that that any such Proceedings have been brought in an inconvenient forum.

 

31.4                    To the extent allowed by law, the Paying Agents may, in respect of any Dispute or Disputes, take (i) Proceedings against the Issuer or any Guarantor in any other court of competent jurisdiction, and (ii) concurrent Proceedings in one or more jurisdictions.

 

31.5                    The Issuer and each Guarantor appoints Luxottica UK Ltd. at its registered office for the time being as its agent for service of process in England in respect of any Proceedings and undertakes that in the event of it ceasing so to act it will appoint such other person as the Trustee may approve as its agent for that purpose.

 

31.6                    The Issuer and each Guarantor and the Paying Agents:

 

(a)                               agrees to procure that, so long as any of the Notes remain liable to prescription, there shall be in force an appointment of such a person approved by the Trustee with an office in London with authority to accept service as aforesaid;

 

(b)                              agrees that failure by any such person to give notice of such service of process to the Issuer or the Guarantors or the relevant Paying Agent shall not impair the validity of such service or of any judgment based thereon; and

 

(c)                               agrees that nothing in this Agreement shall affect the right to serve process in any other manner permitted by law.

 

32.                            COUNTERPARTS

 

This Agreement may be executed in any number of counterparts, and this has the same effect as if the signatures on the counterparts were on a single copy of this Agreement.

 

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SCHEDULE 1

 

FORM OF CALCULATION AGENCY AGREEMENT

 

 

 

 

 

 

CALCULATION AGENCY AGREEMENT

 

 

 

DATED [l]

 

 

 

Luxottica Group S.p.A.

(incorporated with limited liability in the Republic of Italy)

 

€2,000,000,000

EURO MEDIUM TERM NOTE PROGRAMME

 

unconditionally and irrevocably guaranteed by

 

Luxottica U.S. Holdings Corp.

(a corporation under the laws of the State of Delaware)

 

and

 

Luxottica S.r.l.

(incorporated with limited liability in the Republic of Italy)

 

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THIS AGREEMENT is dated [l]

 

BETWEEN:

 

(1)                              LUXOTTICA GROUP S.p.A. (the Issuer);

 

(2)                              LUXOTTICA U.S. HOLDINGS CORP. and LUXOTTICA S.R.L. (the Guarantors and each a Guarantor);

 

(3)          BNP PARIBAS TRUST CORPORATION UK LTD (the Trustee, which expression shall include any successor trustee appointed under the terms of the Trust Deed); and

 

(4)                              [l] of [l] (the Calculation Agent, which expression shall include any successor calculation agent appointed under this Agreement).

 

IT IS AGREED:

 

1.                                    APPOINTMENT OF THE CALCULATION AGENT

 

The Calculation Agent is appointed, and the Calculation Agent agrees to act, as Calculation Agent in respect of each Series of Notes described in the Schedule (the Relevant Notes) for the purposes set out in clause 2 and on the terms of this Agreement.  The agreement of the parties that this Agreement is to apply to each Series of Relevant Notes shall be evidenced by the manuscript annotation and signature in counterpart of the Schedule.

 

2.                                    DUTIES OF CALCULATION AGENT

 

The Calculation Agent shall in relation to each series of Relevant Notes (each a Series) perform all the functions and duties imposed on the Calculation Agent by the terms and conditions of the Relevant Notes (the Conditions) including endorsing the Schedule appropriately in relation to each Series of Relevant Notes.  In addition, the Calculation Agent agrees that it will provide a copy of all calculations made by it which affect the nominal amount outstanding of any Relevant Notes which are identified on the Schedule as being NGNs to BNP Paribas Securities Services, Luxembourg Branch to the contact details set out on the signature page hereof.

 

3.                                    EXPENSES

 

The arrangements in relation to expenses will be separately agreed in relation to each issue of Relevant Notes.

 

4.                                    INDEMNITY

 

4.1                            The Issuer shall indemnify (and failing the Issuer so indemnifying, the Guarantors agrees to indemnify) the Calculation Agent against any losses, liabilities, costs, claims, actions, demands or expenses (together, Losses) (including, but not limited to, all reasonable costs, legal fees, charges and expenses (together, Expenses) paid or incurred in disputing or defending any Losses) which it may incur or which may be made against it as a result of or in connection with its appointment or the exercise of its powers and duties under this Agreement except for any Losses or Expenses resulting from its own default, negligence or bad faith or that of its officers, directors or employees or the breach by it of the terms of this Agreement.

 

4.2                            The Calculation Agent shall indemnify the Issuer and the Guarantors against any Losses, (including, but not limited to, all reasonable Expenses paid or incurred in disputing or defending any Losses)

 

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which the Issuer or any Guarantor may incur or which may be made against the Issuer or any Guarantor as a result of the breach by the Calculation Agent of the terms of this Agreement or its default, negligence or bad faith or that of its officers, directors or employees.

 

5.                                    CONDITIONS OF APPOINTMENT

 

5.1                            In acting under this Agreement and in connection with the Relevant Notes, the Calculation Agent shall act solely as an agent of the Issuer, the Guarantors and in circumstances described in subclause 5.2, the Trustee and will not assume any obligations towards or relationship of agency or trust for or with any of the owners or holders of the Relevant Notes or the coupons (if any) appertaining to the Relevant Notes.

 

5.2                            At any time after an Event of Default or a Potential Event of Default shall have occurred and be continuing or the Notes shall otherwise have become due and repayable or the Trustee shall have received any money which it proposes to pay under clause 10 (Application of Moneys) of the Trust Deed to the relevant Noteholders and/or Couponholders, the Trustee may by notice in writing to the Issuer, the Guarantors and the Calculation Agent require the Calculation Agent pursuant to this Agreement:

 

(a)                               to act thereafter as Calculation Agent of the Trustee mutatis mutandis on the terms provided in this Agreement (save that the Trustee’s liability under any provisions of this Agreement for the indemnification, remuneration and payment of out-of-pocket expenses of the Calculation Agent shall be limited to the amounts for the time being held by the Trustee on the trusts of the Trust Deed in respect of the Notes of the relevant Series and available for the purpose) and thereafter to hold all documents and records held by it in respect of Notes and Coupons on behalf of the Trustee; or

 

(b)                              to deliver up all documents and records held by it in respect of Notes and Coupons to the Trustee or as the Trustee shall direct in such notice, provided that such notice shall be deemed not to apply to any documents or records which the Calculation Agent is obliged not to release by any law or regulation.

 

5.3                            In relation to each issue of Relevant Notes, the Calculation Agent shall be obliged to perform the duties and only the duties specifically stated in this Agreement and the Conditions and no implied duties or obligations shall be read into this Agreement or the Conditions against the Calculation Agent, other than the duty to act honestly and in good faith and to exercise the diligence of a reasonably prudent expert in comparable circumstances.

 

5.4                            The Calculation Agent may consult with legal and other professional advisers and the opinion of the advisers shall be full and complete protection in respect of any action taken, omitted or suffered under this Agreement in good faith and in accordance with the opinion of the advisers.

 

5.5                            The Calculation Agent shall be protected and shall incur no liability in respect of any action taken, omitted or suffered in reliance on any instruction from the Issuer, the Guarantors or the Trustee or any document which it reasonably believes to be genuine and to have been delivered by the proper party or on written instructions from the Issuer, the Guarantors or the Trustee.

 

5.6                            The Calculation Agent and any of its officers, directors and employees may become the owner of, or acquire any interest in, any Notes or Coupons (if any) with the same rights that it or he would have had if the Calculation Agent were not appointed under this Agreement, and may engage or be interested in any financial or other transaction with the Issuer, the Guarantors or the Trustee and may act on, or as depositary, trustee or agent for, any committee or body of holders of Notes or Coupons

 

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or in connection with any other obligations of the Issuer or the Guarantors as freely as if the Calculation Agent were not appointed under this Agreement.

 

6.                                    TERMINATION OF APPOINTMENT

 

6.1                            The Issuer and the Guarantors may, with the prior written approval of the Trustee (such approval not to be unreasonably withheld or delayed), terminate the appointment of the Calculation Agent at any time by giving to the Calculation Agent at least 45 days’ prior written notice to that effect, provided that, so long as any of the Relevant Notes is outstanding:

 

(a)                               the notice shall not expire less than 45 days before any date on which any calculation is due to be made in respect of any Relevant Notes; and

 

(b)                              notice shall be given in accordance with the Conditions to the holders of the Relevant Notes at least 30 days before any removal of the Calculation Agent.

 

6.2                            Notwithstanding the provisions of subclause 6.1, if at any time:

 

(a)                               the Calculation Agent becomes incapable of acting, or is adjudged bankrupt or insolvent, or files a voluntary petition in bankruptcy or makes an assignment for the benefit of its creditors or consents to the appointment of an administrator, liquidator or administrative or other receiver of all or any substantial part of its property, or admits in writing its inability to pay or meet its debts as they may mature or suspends payment of its debts, or if any order of any court is entered approving any petition filed by or against it under the provisions of any applicable bankruptcy or insolvency law or if a receiver of it or of all or a substantial part of its property is appointed or if any officer takes charge or control of the Calculation Agent or of its property or affairs for the purpose of rehabilitation, conservation or liquidation; or

 

(b)                              the Calculation Agent fails duly to perform any function or duty imposed on it by the Conditions and this Agreement,

 

the Issuer and the Guarantors, with the prior written approval of the Trustee, such consent not to be unreasonably withheld or delayed, may immediately without notice terminate the appointment of the Calculation Agent. The Issuer will forthwith appoint a successor Calculation Agent approved in writing by the Trustee (such approval not to be unreasonably withheld or delayed) and will notify Noteholders of such termination and appointment as soon as is practicable.

 

6.3                            The termination of the appointment of the Calculation Agent under subclauses 6.1 or 6.2 shall not entitle the Calculation Agent to any amount by way of compensation but shall be without prejudice to any amount then accrued due.

 

6.4                            The Calculation Agent may resign its appointment under this Agreement at any time by giving to the Issuer, the Guarantors and the Trustee at least 90 days’ prior written notice to that effect.  Following receipt of a notice of resignation from the Calculation Agent, the Issuer shall promptly give notice of the resignation to the holders of the Relevant Notes in accordance with the Conditions.

 

6.5                            Notwithstanding the provisions of subclauses 6.1, 6.2 and 6.4, so long as any of the Relevant Notes is outstanding, the termination of the appointment of the Calculation Agent (whether by the Issuer, the Guarantors or by the resignation of the Calculation Agent) shall not be effective unless upon the expiry of the relevant notice a successor Calculation Agent, approved in writing by the Trustee (such approval not to be unreasonably withheld or delayed), has been appointed.  The Issuer and the Guarantors agree with the Calculation Agent that if, by the day falling 10 days before the expiry of any notice under subclause 6.4, the Issuer and the Guarantors have not appointed a replacement Calculation Agent approved in writing by the Trustee (such approval not to be unreasonably

 

30

 

withheld or delayed), the Calculation Agent shall be entitled, on behalf of the Issuer and the Guarantors, to appoint as a successor Calculation Agent in its place a reputable financial institution of good standing which the Issuer, the Guarantors and the Trustee shall approve.

 

6.6                            Upon its appointment becoming effective, a successor Calculation Agent shall without any further action, become vested with all the authority, rights, powers, duties and obligations of its predecessor with the same effect as if originally named as the Calculation Agent under this Agreement.

 

6.7                            If the appointment of the Calculation Agent under this Agreement is terminated (whether by the Issuer and the Guarantors or by the resignation of the Calculation Agent), the Calculation Agent shall on the date on which the termination takes effect deliver to the successor Calculation Agent any records concerning the Relevant Notes maintained by it (except those documents and records which it is obliged by law or regulation to retain or not to release), but shall have no other duties or responsibilities under this Agreement.

 

6.8                            Any corporation into which the Calculation Agent may be merged or converted, or any corporation with which the Calculation Agent may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which the Calculation Agent shall be a party, or any corporation to which the Calculation Agent shall sell or otherwise transfer all or substantially all of its assets shall, on the date when the merger, consolidation or transfer becomes effective and to the extent permitted by any applicable laws, become the successor Calculation Agent under this Agreement without the execution or filing of any paper or any further act on the part of any of the parties to this Agreement, unless otherwise required by the Issuer, the Guarantors and the Trustee, and after the said effective date all references in this Agreement to the Calculation Agent shall be deemed to be references to such successor corporation.  Written notice of any such merger, conversion, consolidation or transfer shall immediately be given to the Issuer, the Guarantors, the Trustee and the Agent by the Calculation Agent.

 

7.                                    COMMUNICATIONS

 

7.1                            All communications shall be fax or letter delivered by hand.  Each communication shall be made to the relevant party at the fax number or address and marked for the attention of the person or department from time to time specified in writing by that party to the others for the purpose.  The initial fax number and person or department so specified by each party are set out in the Procedures Memorandum or, in the case of the Calculation Agent, on the signature page of this Agreement.

 

7.2                            A communication shall be deemed received (if by fax) when an acknowledgement of receipt is received or (if by letter) when delivered, in each case in the manner required by this clause 7.  However, if a communication is received after business hours on any business day or on a day which is not a business day in the place of receipt it shall be deemed to be received and become effective at the opening of business on the next business day in the place of receipt.  Every communication shall be irrevocable save in respect of any manifest error in it.

 

7.3                            Any notice given under or in connection with this Agreement shall be in English.  All other documents provided under or in connection with this Agreement shall be:

 

(a)                               in English; or

 

(b)                              if not in English, accompanied by a certified English translation and, in this case, the English translation shall prevail unless the document is a statutory or other official document.

 

31

 

8.                                    DESCRIPTIVE HEADINGS AND COUNTERPARTS

 

8.1                            The descriptive headings in this Agreement are for convenience of reference only and shall not define or limit the provisions hereof.

 

8.2                            This Agreement may be executed in any number of counterparts, and this has the same effect as if the signatures on the counterparts were on a single copy of this Agreement.

 

9.                                    CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999

 

A person who is not a party to this Agreement has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this Agreement, but this does not affect any right or remedy of a third party which exists or is available apart from that Act.

 

10.                            GOVERNING LAW AND SUBMISSION TO JURISDICTION

 

10.1                    This Agreement and any non-contractual obligations arising out of or in connection with this Agreement are governed by, and shall be construed in accordance with, the laws of England.

 

10.2                    Subject to subclause 10.4, the courts of England are to have jurisdiction to settle any dispute which may arise out of or in connection with this Agreement, including a dispute relating to any non-contractual obligations arising out of or in connection with this Agreement, (a Dispute) and, accordingly, the Issuer and each Guarantor in relation to any Dispute submits to the jurisdiction of such courts.

 

10.3                    For the purposes of this clause 10, the Issuer and the Guarantors hereby irrevocably waive any objection which it may have now or hereafter to the laying of the venue of any suit, action or proceedings (together referred to as Proceedings) in any such court on the grounds that that any such Proceedings have been brought in an inconvenient forum.

 

10.4                    To the extent allowed by law, the Calculation Agent may, in respect of any Dispute or Disputes, take (i) Proceedings against the Issuer or any Guarantor in any other court of competent jurisdiction, and (ii) concurrent Proceedings in one or more jurisdictions.

 

10.5                    The Issuer and each Guarantor appoints Luxottica UK Ltd. at its registered office for the time being as its agent for service of process in England in respect of any Proceedings and undertakes that in the event of it ceasing so to act it will appoint such other person as the Trustee may approve as its agent for that purpose.

 

10.6                    The Issuer and each Guarantor and the Calculation Agent:

 

(a)                               agrees to procure that, so long as any of the Notes remain liable to prescription, there shall be in force an appointment of such a person approved by the Trustee with an office in London with authority to accept service as aforesaid;

 

(b)                              agrees that failure by any such person to give notice of such service of process to the Issuer or the Guarantors or the Calculation Agent shall not impair the validity of such service or of any judgment based thereon; and

 

(c)                               agrees that nothing in this Agreement shall affect the right to serve process in any other manner permitted by law.

 

10.7                   This Agreement has been entered into on the date stated at the beginning of this Agreement.

 

32

 

Luxottica Group S.p.A.

 

By:

 

Luxottica U.S. Holdings Corp.

 

By:

 

 

 

Luxottica S.r.l.

 

By:

 

[CALCULATION AGENT]

[Address of Calculation Agent]

 

 

	
Telex No:
    	
[l]
    
	
Telefax No:
    	
[l]
    
	
 
    	
 
    
	
Attention:
    	
[l]
    

 

By:

 

 

 

Contact Details

 

BNP Paribas Securities Services, Luxembourg Branch

 

33, rue de Gasperich

Howald – Hesperange

L-2085 Luxembourg

 

	
Telex No:
    	
[l]
    
	
Telefax No:
    	
[l]
    
	
 
    	
 
    
	
Attention:
    	
[l]
    

 

33

 

SCHEDULE ONE

 

TO THE CALCULATION AGENCY AGREEMENT

 

 

	
Series Number
    	
Issue Date
    	
Maturity Date
    	
Title and Nominal
   Amount
    	
NGN
   [Yes/No]
    	
Annotation
   by Calculation Agent/Issuer
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

34

 

SCHEDULE 2

	
Form of Put   Notice
    
	
 
    
	
luxottica group s.p.a.
    
	
[title   of relevant Series of Notes]
    
	
By depositing   this duly completed Notice with any Paying Agent for the above Series of   Notes (the Notes) the undersigned holder of   the Notes surrendered with this Notice and referred to below irrevocably   exercises its option to have [the full/.........] nominal amount of the Notes   redeemed in accordance with Condition 6.4 (Redemption   and Purchase – Redemption at the option of the Noteholders (Investor Put)) on [redemption date].

This Notice   relates to Notes in the aggregate nominal amount of................bearing the   following serial numbers:

............................................................................................................................................................................

If the Notes   referred to above are to be returned to the undersigned under clause 10.4 of   the Agency Agreement, they should be returned by post to:

.............................................................................................................................................................................

Payment Instructions

Please make   payment in respect of the above-mentioned Notes by [cheque posted to the   above address/transfer to the following bank account]:

Bank:          .............................                                                                                                                                                                                 Branch   Address:               .............................

Branch Code:                     ..............................                                                                                                                             Account   Number:         .............................

Signature   of holder:     .............................
    
	
[To be completed by   recipient Paying Agent]

Details   of missing unmatured Coupons  .............................

Received by:                                                                             ................................................

 [Signature and stamp of Paying Agent]

At its office at:                                                                  .............................                                                                              On:                              .......................

NOTES:

1.                                       Complete   as appropriate.

2.                                       The   Agency Agreement provides that Notes so returned will be sent by post,   uninsured and at the risk of the Noteholder, unless the Noteholder otherwise   requests and pays the costs of such insurance to the relevant Paying Agent at   the time of depositing the Note referred to above.

3.                                       Only   relevant for Fixed Rate Notes in definitive form.

N.B.                         The Paying Agent with whom the above-mentioned Notes are deposited   will not in any circumstances be liable to the depositing Noteholder or any   other person for any loss or damage arising from any act, default or omission   of such Paying Agent in relation to the said Notes or any of them unless such   loss or damage was caused by the fraud or negligence of such Paying Agent or   its directors, officers or employees.

This Put Notice is not valid unless all of the   paragraphs requiring completion are duly completed.  Once validly given this Put Notice is   irrevocable except in the circumstances set out in clause 10.4 of the Agency   Agreement.
    
	
 
    

 

35

 

SCHEDULE 3

 

ADDITIONAL DUTIES OF THE AGENT

 

In relation to each Series of Notes that are NGNs, the Agent will comply with the following provisions:

 

1.                                    The Agent will inform each of Euroclear and Clearstream, Luxembourg (the ICSDs), through the common service provider appointed by the ICSDs to service the Notes (the CSP), of the initial issue outstanding amount (IOA) for each Tranche on or prior to the relevant Issue Date.

 

2.                                    If any event occurs that requires a mark up or mark down of the records which an ICSD holds for its customers to reflect such customers’ interest in the Notes, the Agent will (to the extent known to it) promptly provide details of the amount of such mark up or mark down, together with a description of the event that requires it, to the ICSDs (through the CSP) to ensure that the IOA of the Notes remains at all times accurate.

 

3.                                    The Agent will at least once every month reconcile its record of the IOA of the Notes with information received from the ICSDs (through the CSP) with respect to the IOA maintained by the ICSDs for the Notes and will promptly inform the ICSDs (through the CSP) of any discrepancies.

 

4.                                    The Agent will promptly assist the ICSDs (through the CSP) in resolving any discrepancy identified in the IOA of the Notes.

 

5.                                    The Agent will promptly provide to the ICSDs (through the CSP) details of all amounts paid by it under the Notes (or, where the Notes provide for delivery of assets other than cash, of the assets so delivered).

 

6.                                    The Agent will (to the extent known to it) promptly provide to the ICSDs (through the CSP) notice of any changes to the Notes that will affect the amount of, or date for, any payment due under the Notes.

 

7.                                    The Agent will (to the extent known to it) promptly provide to the ICSDs (through the CSP) copies of all information that is given to the holders of the Notes.

 

8.                                    The Agent will promptly pass on to the Issuer all communications it receives from the ICSDs directly or through the CSP relating to the Notes.

 

9.                                    The Agent will (to the extent known to it) promptly notify the ICSDs (through the CSP) of any failure by the Issuer to make any payment or delivery due under the Notes when due.

 

36

 

SIGNATORIES

 

This Agreement has been entered into on the date stated at the beginning of this Agreement.

 

The Issuer

 

Luxottica Group S.p.A.

 

	
By:
    	
/s/ Marco Bigatti
    	
 
    	
 
    

 

The Guarantors

 

Luxottica U.S. Holdings Corp.

 

	
By:
    	
/s/ Marco Bigatti
    	
 
    	
 
    

 

 

 

Luxottica S.r.l.

 

	
By:
    	
/s/ Marco Bigatti
    	
 
    	
 
    

 

 

 

The Agent

 

BNP Paribas Securities Services, Luxembourg Branch

 

	
By:
    	
/s/ Caroline Frere
    	
 
    	
/s/ Catherine Vesvre
    

 

 

 

The Trustee

 

BNP Paribas Trust Corporation UK Ltd

 

	
By:
    	
/s/ Karen Williamson
    	
 
    	
/s/ Helen Tricard
    

 

37Exhibit 4.39

 

	
EXECUTION VERSION
    
	
 
    
	
 
    
	
PROGRAMME AGREEMENT
    
	
 
    
	
 
    
	
 
    
	
DATED 10 MAY 2013
    
	
 
    
	
 
    
	
LUXOTTICA GROUP S.p.A.
    
	
 
    
	
€2,000,000,000
    
	
EURO MEDIUM TERM NOTE   PROGRAMME
    

 

 

 

 

Allen & Overy Studio Legale Associato

 

 

CONTENTS

 

	
Clause
    	
Page
    
	
 
    	
 
    	
 
    
	
1.
    	
Definitions   and Interpretation
    	
1
    
	
2.
    	
Agreements   to Issue and Purchase Notes
    	
5
    
	
3.
    	
Conditions   of Issue; Updating of Legal Opinions
    	
5
    
	
4.
    	
Representations,   Warranties and Undertakings
    	
8
    
	
5.
    	
Undertakings   of the Issuer and the Guarantors
    	
13
    
	
6.
    	
Indemnity
    	
17
    
	
7.
    	
Authority   to Distribute Documents and Provide Information
    	
18
    
	
8.
    	
Dealers’   Undertakings
    	
18
    
	
9.
    	
Fees,   Expenses and Stamp Duties
    	
19
    
	
10.
    	
Termination   of Appointment of Dealers
    	
20
    
	
11.
    	
Appointment   of New Dealers
    	
21
    
	
12.
    	
Increase   in the Aggregate Nominal Amount of the Programme
    	
21
    
	
13.
    	
Status   of the Arranger
    	
22
    
	
14.
    	
Counterparts
    	
22
    
	
15.
    	
Communications
    	
22
    
	
16.
    	
Benefit   of Agreement
    	
22
    
	
17.
    	
Currency   Indemnity
    	
23
    
	
18.
    	
Calculation   Agent
    	
23
    
	
19.
    	
Stabilisation
    	
24
    
	
20.
    	
Contracts   (Rights of Third Parties) Act 1999
    	
24
    
	
21.
    	
Governing   Law and Submission to Jurisdiction
    	
24
    
	
 
    	
 
    
	
 
    	
 
    
	
Appendix
    	
 
    
	
 
    	
 
    	
 
    
	
1.
    	
Initial   Documentation List
    	
25
    
	
2.
    	
Selling   Restrictions
    	
28
    
	
3.
    	
Forms   of Dealer Accession Letters and Confirmation Letters
    	
32
    
	
 
    	
Part 1
    	
Form of   Dealer Accession Letter – Programme
    	
32
    
	
 
    	
Part 2
    	
Form of   Confirmation Letter – Programme
    	
34
    
	
 
    	
Part 3
    	
Form of   Dealer Accession Letter – Note Issue
    	
35
    
	
 
    	
Part 4
    	
Form of   Confirmation Letter – Note Issue
    	
37
    
	
4.
    	
Letter   Regarding Increase in the Nominal Amount of the Programme
    	
38
    
	
5.
    	
Form of   Subscription Agreement
    	
39
    
	
 
    	
 
    
	
 
    	
 
    
	
Signatories
    	
44
    

 

 

THIS AGREEMENT is dated 10 May 2013

 

BETWEEN:

 

(1)                              Luxottica Group S.p.A. (the Issuer);

 

(2)                              Luxottica U.S. Holdings Corp. and Luxottica S.r.l. (each a Guarantor and together, the Guarantors); and

 

(3)                              Banca IMI S.p.A., BNP Paribas, Citigroup Global Markets Limited, Crédit Agricole Corporate and Investment Bank, Deutsche Bank AG, London Branch, J.P.Morgan Securities plc, Mediobanca – Banca di Credito Finanziario S.p.A., Merrill Lynch International, The Royal Bank of Scotland plc and UniCredit Bank AG (the Initial Dealers).

 

IT IS AGREED:

 

1.                                    DEFINITIONS AND INTERPRETATION

 

1.1                            In this Agreement:

 

Agency Agreement means the agreement dated 10 May 2013 between the Issuer, the Guarantors, the Trustee, the Agent and the other Paying Agents referred to in it under which, amongst other things, the Agent is appointed as issuing agent, principal paying agent and agent bank for the purposes of the Programme;

 

Agent means BNP Paribas Securities Services, Luxembourg Branch as Agent under the Agency Agreement and any successor agent appointed in accordance with the Agency Agreement;

 

Agreement Date means, in respect of any Note, the date on which agreement is reached for the issue of such Note as contemplated in clause 2 which, in the case of Notes in relation to which a Subscription Agreement is entered into, shall be the date on which the Subscription Agreement is signed by or on behalf of all the parties to it except that for the purposes of the proviso to sub-clause 5.2(b) only, Agreement Date means the date on which the issue of Notes is first priced;

 

Agreements means each of this Programme Agreement, the Trust Deed, the Agency Agreement and the Issuer-ICSDs Agreement;

 

Arranger means UniCredit Bank AG and any other entity appointed as an arranger for the Programme or in respect of any particular issue of Notes under the Programme and references in this Agreement to the Arranger shall be references to the relevant Arranger;

 

Base Prospectus means the Base Prospectus prepared in connection with the Programme and constituting a base prospectus for the purposes of Article 5.4 of the Prospectus Directive as revised, supplemented or amended from time to time by the Issuer and the Guarantors in accordance with subclause 5.2 including any documents which are from time to time incorporated in the Base Prospectus by reference, provided that:

 

(a)                               in relation to each Tranche of Notes the applicable Final Terms shall be deemed to be included in the Base Prospectus; and

 

(b)                              for the purpose of subclause 4.2 in respect of the Agreement Date and the Issue Date, the Base Prospectus means the Base Prospectus as at the Agreement Date, but without prejudice

 

1

 

to (a) above not including any subsequent revision, supplement or amendment to it or incorporation of information in it;

 

Confirmation Letter means:

 

(a)                               in respect of the appointment of a third party as a Dealer for the duration of the Programme, the Confirmation Letter substantially in the form set out in Part 2 of Appendix 3; and

 

(b)                              in respect of the appointment of a third party as a Dealer for one or more particular issues of Notes under the Programme, the Confirmation Letter substantially in the form set out in Part 4 of Appendix 3;

 

CSSF means Commission de Surveillance du Secteur Financier;

 

Dealer means each of the Initial Dealers (including UniCredit Bank AG in its capacity as Arranger) and any New Dealer and excludes any entity whose appointment has been terminated pursuant to clause 10, and references in this Agreement to the relevant Dealer shall, in relation to any Note, be references to the Dealer or Dealers with whom the Issuer has agreed the issue and purchase of such Note;

 

Dealer Accession Letter means:

 

(a)                               in respect of the appointment of a third party as a Dealer for the duration of the Programme, the Dealer Accession Letter substantially in the form set out in Part 1 of Appendix 3; and

 

(b)                              in respect of the appointment of a third party as a Dealer for one or more particular issues of Notes under the Programme, the Dealer Accession Letter substantially in the form set out in Part 3 of Appendix 3;

 

Exchange Act means the United States Securities Exchange Act of 1934;

 

Final Terms means the final terms issued in relation to each Tranche of Notes (substantially in the form of Annex 3 to the Procedures Memorandum) and giving details of that Tranche and, in relation to any particular Tranche of Notes, applicable Final Terms means the Final Terms applicable to that Tranche;

 

FSMA means the Financial Services and Markets Act 2000;

 

GAAP means IFRS, Italian GAAP and U.S. GAAP, as applicable to the Issuer and each Guarantor;

 

Group means the Issuer and its Subsidiaries from time to time;

 

Guarantee means the guarantee contained in clause 7 of the Trust Deed;

 

IFRS means International Financial Reporting Standards (formerly International Accounting Standards) issued by the International Accounting Standards Board (IASB) and interpretations issued by the International Financial Reporting Interpretations Committee of the IASB (as amended, supplemented or re-issued from time to time);

 

Initial Documentation List means the lists of documents set out in Appendix 1;

 

Issuer-ICSDs Agreement means the agreement dated 10 May 2013 between the Issuer, Euroclear and Clearstream, Luxembourg;

 

2

 

Italian GAAP means generally accepted accounting principles in the Republic of Italy;

 

Law on Prospectuses for Securities means the Luxembourg act dated 10 July 2005 on prospectuses for securities implementing the Prospectus Directive;

 

Lead Manager means, in relation to any Tranche of Notes, the person named as the Lead Manager in the applicable Subscription Agreement;

 

Listing Agent means, in relation to any Notes which are, or are to be, listed on a Stock Exchange, the listing agent appointed by the Issuer from time to time for the purposes of liaising with that Stock Exchange;

 

New Dealer means any entity appointed as an additional Dealer in accordance with clause 11;

 

Note means a Note issued or to be issued by the Issuer under the Programme, which Note may be represented by a Global Note or be in definitive form including coupons or talons relating to it;

 

2010 PD Amending Directive means Directive 2010/73/EU;

 

Procedures Memorandum means the Operating and Administrative Procedures Memorandum dated 10 May 2013 as amended or varied from time to time including, in respect of any Tranche, by agreement between the Issuer, the Guarantors and the relevant Dealer or Lead Manager with the approval of the Agent;

 

Programme means the Euro Medium Term Note Programme established on 10 May 2013;

 

Prospectus Directive means Directive 2003/71/EC as amended (which includes the amendments made by the 2010 PD Amending Directive to the extent that such amendments have been implemented in a Member State of the European Economic Area);

 

Relevant Party means each Dealer, each of their respective affiliates and each person who controls them (within the meaning of section 15 of the Securities Act or section 20 of the Exchange Act) and each of their respective directors, officers, employees and agents;

 

Securities Act means the United States Securities Act of 1933;

 

Standard & Poor’s means Standard & Poor’s Credit Market Services France SAS;

 

Stock Exchange means the Luxembourg Stock Exchange or any other stock exchange on which any Notes may from time to time be listed, and references in this Agreement to the relevant Stock Exchange shall, in relation to any Notes, be references to the stock exchange or stock exchanges on which the Notes are from time to time, or are intended to be, listed;

 

Subscription Agreement means an agreement supplemental to this Agreement (by whatever name called) in or substantially in the form set out in Appendix 5 or in such other form as may be agreed between the Issuer, the Guarantors and the Lead Manager or one or more Dealers (as the case may be);

 

Trust Deed means the Trust Deed dated 10 May 2013 between the Issuer, the Guarantors and the Trustee under which Notes will, on issue, be constituted and which sets out the terms and conditions on which the Trustee has agreed to act as trustee and includes any trust deed or other document executed by the Issuer, the Guarantors and the Trustee in accordance with the provisions of the Trust Deed and expressed to be supplemental to the Trust Deed;

 

3

 

Trustee means BNP Paribas Trust Corporation UK Ltd and any other trustee or trustees for the time being for the holders of the Notes appointed in accordance with the Trust Deed; and

 

U.S. GAAP means generally accepted accounting principles in the United States.

 

1.2                            (a)                               In this Agreement, unless the contrary intention appears, a reference to:

 

(i)                                  an amendment includes a supplement, restatement or novation and amended is to be construed accordingly;

 

(ii)                             a person includes any individual, company, unincorporated association, government, state agency, international organisation or other entity;

 

(iii)                          a provision of a law is a reference to that provision as extended, amended or re-enacted;

 

(iv)                          a clause or appendix is a reference to a clause of, or an appendix to, this Agreement;

 

(v)                              a person includes its successors and assigns;

 

(vi)                          a document is a reference to that document as amended from time to time; and

 

(vii)                      a time of day is a reference to London time;

 

(b)                              the headings in this Agreement do not affect its interpretation;

 

(c)                               terms defined in the Trust Deed, the Agency Agreement, the Conditions and/or the applicable Final Terms and not otherwise defined in this Agreement shall have the same meanings in this Agreement, except where the context otherwise requires;

 

(d)                              all references in this Agreement to Euroclear and/or Clearstream, Luxembourg shall, wherever the context so permits, be deemed to include a reference to any additional or alternative clearing system approved by the Issuer, the Trustee and the Agent;

 

(e)                               as used herein, in relation to any Notes which are to have a “listing” or to be “listed” (i) on the Luxembourg Stock Exchange, listing and listed shall be construed to mean that such Notes have been admitted to trading on the Luxembourg Stock Exchange’s regulated market and have been listed on the Official List of the Luxembourg Stock Exchange and (ii) on any other Stock Exchange in a jurisdiction within the European Economic Area, listing and listed shall be construed to mean that the Notes have been admitted to trading on a market within that jurisdiction which is a regulated market for the purposes of the Markets in Financial Instruments Directive (Directive 2004/39/EC);

 

(f)                                references in this Agreement to “consolidated” in relation to each of the Issuer and the Guarantors shall, if it prepares both consolidated accounts and non-consolidated accounts in accordance with applicable GAAP, be construed as references to “consolidated and non-consolidated”; and

 

(g)                               references in this Agreement to a Directive include any relevant implementing measure of each Member State of the European Economic Area which has implemented such Directive.

 

4

 

2.                                    AGREEMENTS TO ISSUE AND PURCHASE NOTES

 

2.1                            Subject to the terms and conditions of this Agreement, the Issuer may from time to time agree with any Dealer to issue, and any Dealer may agree to purchase, Notes.

 

2.2                            Unless otherwise agreed between the parties, on each occasion on which the Issuer and any Dealer agree on the terms of the issue by the Issuer and purchase by the Dealer of one or more Notes:

 

(a)                               the Issuer shall cause the Notes, which shall be initially represented by a Temporary Global Note or a Permanent Global Note, as indicated in the applicable Final Terms, to be issued and delivered on the agreed Issue Date to (i) if the Notes are CGNs, a common depositary or (ii) if the Notes are NGNs, a common safekeeper in each case for Euroclear and Clearstream, Luxembourg on the agreed Issue Date;

 

(b)                              the securities account of the relevant Dealer (in the case of Notes issued on a syndicated basis) or the Agent (in the case of Notes issued on a non-syndicated basis) with Euroclear and/or Clearstream, Luxembourg (as specified by the relevant Dealer) will be credited with the Notes on the agreed Issue Date, as described in the Procedures Memorandum; and

 

(c)                               the relevant Dealer or, as the case may be, the Lead Manager shall, subject to the Notes being so credited, cause the net purchase moneys for the Notes to be paid in the relevant currency by transfer of funds to the designated account of the Issuer (in the case of Notes issued on a syndicated basis) or the Agent (in the case of Notes issued on a non-syndicated basis) so that the payment is credited to that account for value on the relevant Issue Date, as described in the Procedures Memorandum.

 

2.3                            Unless otherwise agreed between the Issuer and the relevant Dealer, where more than one Dealer has agreed with the Issuer to purchase a particular Tranche of Notes under this clause, the obligations of those Dealers shall be joint and several.

 

2.4                            Where the Issuer agrees with two or more Dealers to issue, and those Dealers agree to purchase, Notes on a syndicated basis, the Issuer and the Guarantors shall enter into a Subscription Agreement with those Dealers.  The Issuer and the Guarantors may also enter into a Subscription Agreement with one Dealer only.  For the avoidance of doubt, the Agreement Date in respect of any such issue shall be the date on which the Subscription Agreement is signed by or on behalf of all the parties to it.

 

2.5                            The procedures which the parties intend should apply for the purposes of issues to be subscribed on a non-syndicated basis are set out in Annex 1, Part 1 of the Procedures Memorandum.  The procedures which the parties intend should apply for the purposes of issues to be subscribed on a syndicated basis are set out in Annex 1, Part 2 of the Procedures Memorandum.  These procedures may be varied in respect of any issue by agreement between the parties to that issue.

 

2.6                            Each of the Issuer and the Guarantors acknowledges that any issue of Notes in respect of which particular laws, guidelines, regulations, restrictions or reporting requirements apply may only be issued in circumstances which comply with those laws, guidelines, regulations, restrictions or reporting requirements from time to time.

 

3.                                    CONDITIONS OF ISSUE; UPDATING OF LEGAL OPINIONS

 

3.1                            First issue

 

Before the Issuer reaches its first agreement with any Dealer for the issue and purchase of Notes under this Agreement, each Dealer shall have received, and found satisfactory (in its reasonable

 

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opinion), all of the documents and confirmations described in Part 1 of the Initial Documentation List.  Any Dealer must notify the Arranger and the Issuer within seven London business days of receipt of the documents and confirmations described in Part 1 of the Initial Documentation List if in its reasonable opinion it considers any document or confirmation to be unsatisfactory and, in the absence of notification, each Dealer shall be deemed to consider the documents and confirmations to be satisfactory.

 

3.2                            Each issue

 

The obligations of a Dealer under any agreement for the issue and purchase of Notes made under clause 2 are conditional on:

 

(a)                               there having been, as at the proposed Issue Date, no adverse change or any development involving a prospective adverse change from that set forth in the Base Prospectus as at the relevant Agreement Date in the condition (financial or otherwise), business, properties, shareholders’ equity or results of operations of the Issuer, the Guarantors or the Group which is material in the context of the issue and offering of the Notes nor the occurrence of any event making untrue or incorrect any of the representations and warranties contained in clause 4 as though they had been given and made on such date;

 

(b)                              there being no outstanding breach of any of the obligations of the Issuer or any Guarantor under this Agreement, the Trust Deed, the Agency Agreement, the Guarantee or any Notes which has not been expressly waived by the relevant Dealer on or prior to the proposed Issue Date;

 

(c)                               subject to clause 12, the aggregate nominal amount (or, in the case of Notes denominated in a currency other than euro, the euro equivalent (determined as provided in subclause 3.5) of the aggregate nominal amount) of the Notes to be issued, when added to the aggregate nominal amount (or, in the case of Notes denominated in a currency other than euro, the euro equivalent (as so determined) of the aggregate nominal amount) of all Notes outstanding (as defined in the Trust Deed) on the proposed Issue Date (excluding for this purpose Notes due to be redeemed on the Issue Date) not exceeding €2,000,000,000;

 

(d)                              in the case of Notes which are intended to be listed, the relevant authority or authorities having agreed to list the Notes, subject only to the issue of the relevant Notes;

 

(e)                               no meeting of the holders of Notes (or any of them) having been duly convened but not yet held to consider resolutions which would be material in the context of the proposed issue of the Notes or, if held but adjourned, the adjourned meeting having not been held;

 

(f)                                there having been, between the Agreement Date and the Issue Date for the Notes, in the opinion of the relevant Dealer, no such change in national or international financial, political or economic conditions or currency exchange rates or exchange controls as would, in the opinion of the relevant Dealer, be likely to either prejudice materially the sale by the Dealer of the Notes proposed to be issued or, where relevant, the dealing in such Notes in the secondary market;

 

(g)                               there being in full force and effect all governmental or regulatory resolutions, approvals or consents required for the Issuer to issue the Notes and the Guarantors to guarantee the Notes on the proposed Issue Date and for the Issuer and the Guarantors to fulfil their obligations under the Notes and the Guarantee, respectively, and the Issuer and the Guarantors each having delivered to the relevant Dealer certified copies of those resolutions, approvals or consents and, where applicable, certified English translations of them;

 

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(h)                              unless otherwise agreed in writing with the relevant Dealer(s), as at the Issue Date, the Notes having been assigned a rating equal to the long-term unsecured credit rating of the Issuer as at the Agreement Date or, if earlier, the date on which the issue of the Notes is first priced by Standard & Poor’s or other rating agency, and the Issuer having provided the relevant Dealer(s) with a letter from such rating agency addressed to the Issuer (or other suitable evidence of the same if the relevant rating agency does not permit disclosure of the letter) confirming the same and no rating agency having downgraded, nor given notice or made any public announcement of any intended or potential downgrading or of any review or surveillance with negative implications of, the rating accorded to the Notes or any other debt securities of the Issuer;

 

(i)                                  the forms of the Final Terms, the applicable Global Notes, Notes in definitive form and Receipts, Coupons or Talons (each as applicable) in relation to the relevant Tranche and the relevant settlement procedures having been agreed by the Issuer, the relevant Dealer, the Trustee and the Agent;

 

(j)                                  the relevant currency being accepted for settlement by Euroclear and Clearstream, Luxembourg;

 

(k)                              the delivery to the common depositary or, as the case may be, the common safekeeper of the Temporary Global Note and/or the Permanent Global Note representing the relevant Notes as provided in the Agency Agreement;

 

(l)                                  any calculations or determinations which are required by the relevant Conditions to have been made prior to the Issue Date having been duly made;

 

(m)                          in the case of Notes which are intended to be listed on the Luxembourg Stock Exchange:

 

(i)                               the denomination of the Notes being €100,000 (or its equivalent in any other currency or currencies);

 

(ii)                           either (A) there being no significant new factor, material mistake or inaccuracy relating to the information included in the Base Prospectus which is capable of affecting the assessment of the Notes or (B) if there is such a significant new factor, material mistake or inaccuracy, a supplement to the Base Prospectus having been published in accordance with the Prospectus Directive pursuant to clause 5.2;

 

(iii)                       the Base Prospectus having been approved as a base prospectus by the CSSF and having been published in accordance with the Prospectus Directive;

 

(iv)                       the applicable Final Terms having been published in accordance with the Prospectus Directive; and

 

(n)                              in the case of Notes which are intended to be listed on a European Economic Area Stock Exchange (other than the Luxembourg Stock Exchange) or offered to the public in a European Economic Area Member State (other than Luxembourg) in circumstances which require the publication of a prospectus under the Prospectus Directive, the competent authority of each relevant European Economic Area Member State having been notified in accordance with the procedures set out in Articles 17 and 18 of the Prospectus Directive and all requirements under those Articles having been satisfied and, if required pursuant to Article 19(4) of the Prospectus Directive, a summary having been drawn up.

 

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In the event that any of the above conditions is not satisfied, the relevant Dealer shall be entitled (but not bound) by notice to the Issuer to be released and discharged from its obligations under the agreement reached under clause 2.

 

3.3                            Waiver

 

Subject to the discretion of the Lead Manager as provided in a Subscription Agreement, any Dealer, on behalf of itself only, may by notice in writing to the Issuer and the Guarantors waive any of the conditions precedent contained in subclause 3.2 (save for the conditions precedent contained in subclauses 3.2 (c), (m) and (n)) in so far as they relate to an issue of Notes to that Dealer.

 

3.4                            Updating of legal opinions

 

On each occasion when the Base Prospectus is updated or amended pursuant to subclause 5.2(a), the Issuer will procure that further legal opinions, in such form and with such content as the Dealers may reasonably require, are delivered, at the expense of the Issuer failing which the Guarantors, to the Dealers and the Trustee from legal advisers (approved by the Dealers (such approval not to be unreasonably withheld or delayed)) in the Republic of Italy, the United States of America and England.

 

In addition, on such other occasions as a Dealer so requests (on the basis of reasonable grounds which shall include, without limitation, the publication of a supplement to the Base Prospectus in accordance with the Prospectus Directive), the Issuer, failing which the Guarantors, will procure that a further legal opinion or further legal opinions, as the case may be, in such form and with such content as the Dealers may reasonably require, is or are delivered, at the expense of the Issuer failing which the Guarantors, to the Dealers and the Trustee from legal advisers (approved by the Dealers (such approval not to be unreasonably withheld or delayed)) in such jurisdictions (including the Republic of Italy, the United States of America and/or England) as the Dealers may reasonably require.  If at or prior to the time of any agreement to issue and purchase Notes under clause 2 such a request is made with respect to the Notes to be issued, the receipt of the relevant opinion or opinions by the relevant Dealer and the Trustee in a form reasonably satisfactory to the relevant Dealer and the Trustee shall be a further condition precedent to the issue of those Notes to that Dealer.

 

3.5                            Determination of amounts outstanding

 

For the purposes of subclause 3.2(c):

 

(a)                               the euro equivalent of Notes denominated in another Specified Currency shall be determined, at the discretion of the Issuer, either as of the Agreement Date for those Notes or on the preceding day on which commercial banks and foreign exchange markets are open for general business in London, in each case on the basis of the spot rate for the sale of the euro against the purchase of that Specified Currency in the London foreign exchange market quoted by any leading international bank selected by the Issuer on the relevant day of calculation; and

 

(b)                              the euro equivalent of Zero Coupon Notes and other Notes issued at a discount or a premium shall be calculated in the manner set out above by reference to the net proceeds received by the Issuer for the relevant issue.

 

4.                                   REPRESENTATIONS, WARRANTIES AND UNDERTAKINGS

 

4.1                            As at the date of this Agreement and as a condition of the obligation of the Dealers to subscribe and pay for or procure subscriptions and payment for the Notes, each of the Issuer and each Guarantor jointly and severally represents and warrants to the Dealers as follows:

 

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(a)                               that:

 

(i)                               the audited consolidated annual financial statements of the Issuer for the two most recently completed financial years incorporated by reference in the Base Prospectus and the audited consolidated (or non consolidated if it does not prepare consolidated financial statements) annual financial statements of each Guarantor for the two most recently completed financial years incorporated by reference in the Base Prospectus; and

 

(ii)                           the most recently available unaudited interim consolidated financial statements of the Issuer incorporated by reference in the Base Prospectus,

 

were, in the case of the Issuer, prepared in accordance with IFRS, in the case of Luxottica U.S. Holdings Corp., prepared in accordance with US GAAP and in the case of Luxottica S.r.l., prepared in accordance with Italian GAAP, consistently applied and that they give a true and fair view of (i) the consolidated financial condition of the Issuer and the consolidated (or non consolidated if it does not prepare consolidated financial statements) financial condition of each Guarantor, as the case may be, as at the date to which they were prepared (the relevant date) and (ii) the consolidated results of operations of the Issuer and the consolidated (or non consolidated if it does not prepare consolidated financial statements) results of operations of each Guarantor, as the case may be, for the financial period ended on the relevant date, and that there has been no adverse change or development involving a prospective adverse change in the consolidated (or non consolidated if it does not prepare consolidated financial statements) condition (financial or otherwise), business, prospects or shareholders’ equity or results of operations of any of the Issuer or any Guarantor, as the case may be, since the date of the last audited accounts of the relevant company which is material in the context of the Notes;

 

(b)                              that (i) the Base Prospectus contains all material information (in the context of the issue of the Notes) with respect to the Issuer, the Guarantors, the Group and the Notes (including all information which, according to the particular nature of the Issuer, the Guarantors, the Group and the Notes, is necessary to enable investors to make an informed assessment of the assets and liabilities, financial position, profits and losses and prospects of the Issuer, the Guarantors and the Group and of the rights attaching to the Notes), (ii) the statements of fact relating to the Issuer, the Guarantors, the Group and the Notes contained in the Base Prospectus are, any supplement to the Base Prospectus will be, and any other material approved in writing by the Issuer for use in the offering and sale of the Notes, at the date of publication of such material, was in every material particular true and accurate and not misleading in any material respect and that there are no other facts in relation to the Issuer, the Guarantors, the Group and the Notes the omission of which would in the context of the issue of the Notes make any statement in the Base Prospectus and/or any such other material misleading in any material respect, (iii) the statements of intention, opinion, belief or expectation contained in the Base Prospectus are and any supplement to the Base Prospectus will be, honestly and reasonably made or held and (iv) all reasonable enquiries have been and will be made to ascertain such facts and to verify the accuracy of all such statements;

 

(c)                               that the Base Prospectus contains all information required by the applicable laws and regulations of the Republic of Italy and of the United States with respect to Luxottica U.S. Holdings Corp. only to the extent applicable to the Programme and has been published as required by the Prospectus Directive;

 

(d)                              that the Issuer, each Guarantor and their respective Subsidiaries has been duly incorporated and is validly existing under the laws of its jurisdiction of incorporation, with full power and 

 

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authority to own, lease and operate its properties and conduct its business in all material respects as described in the Base Prospectus and the Issuer and each Guarantor is able lawfully to execute and perform its obligations under the Notes and the Agreements;

 

(e)                               that the Issuer, each Guarantor and their respective Subsidiaries (i) has all licences, permits, authorisations, consents and approvals, certificates, registrations and orders (Licences) and has made all necessary declarations and filings with all government agencies that are necessary to own or lease its properties and conduct its businesses as described in the Base Prospectus and (ii) is conducting its business and operations in compliance with all applicable laws, regulations and guidelines, except in each case as would not have an adverse effect on the ability of the Issuer or, as the case may be, the relevant Guarantor to perform their respective obligations under the Agreements, or which would be material in the context of the issue and offering of the Notes (a Material Adverse Effect);

 

(f)                                that the issue of Notes (in the case of the Issuer), the giving of the Guarantees (in the case of each Guarantor) and the execution and delivery of the Agreements by the Issuer and each Guarantor have been duly authorised by the Issuer and each Guarantor and that upon due execution, issue and delivery the same will constitute legal, valid and binding obligations of the Issuer and each Guarantor, enforceable in accordance with their respective terms subject to the laws of bankruptcy and other laws affecting the rights of creditors generally;

 

(g)                               that (i) the execution, delivery and performance of the Agreements by the Issuer and each Guarantor, (ii) the issue and sale of Notes and the performance of the terms of any Notes by the Issuer and (iii) the giving of the Guarantees by each Guarantor will not infringe any law or regulation of the Republic of Italy or the United States of America applicable to it or, so far as the Issuer and the Guarantors are aware without independent verification, any other law or regulation and are not contrary to the provisions of the constitutional documents of the Issuer or any Guarantor and will not result in any breach of the terms of, or constitute a default under, any material instrument, agreement or order to which the Issuer or any Guarantor is a party or by which it or its property is bound;

 

(h)                              that save as disclosed in the Base Prospectus none of the Issuer, any Guarantor or any of their respective Subsidiaries is involved in any governmental, legal or arbitration proceedings (including any such proceedings which are pending or threatened of which the Issuer and the Guarantors are aware) which may have, or have had in the previous 12 months, a Material Adverse Effect on the financial position or profitability of the Issuer, the Guarantors or the Group;

 

(i)                                  that all consents and approvals of any court, government department or other regulatory body required by the Issuer or any Guarantor for (i) the execution, delivery and performance of the Agreements by the Issuer and each Guarantor, (ii) the issue and sale of Notes and the performance of the terms of any Notes by the Issuer and (iii) the giving of the Guarantee by each Guarantor have been obtained and are unconditional and in full force and effect;

 

(j)                                  that upon issue all Notes will constitute direct, unconditional and (subject as described in Condition 3.1 of the Notes) unsecured obligations of the Issuer and (subject as provided above) rank and will rank pari passu, without any preference among themselves, with all other outstanding unsecured and unsubordinated obligations of the Issuer, present and future, but, in the event of insolvency, only to the extent permitted by applicable laws relating to creditors’ rights.

 

(k)                              that the obligations of each Guarantor under the relevant Guarantee will constitute direct, unconditional and (subject as described in Condition 3.1 of the Notes) unsecured obligations 

 

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of the relevant Guarantor and (subject as provided above) will rank pari passu with all other outstanding unsecured and unsubordinated obligations of such Guarantor, present and future, but, in the event of insolvency, only to the extent permitted by applicable laws relating to creditors’ rights, all subject as provided in the Conditions;

 

(l)                                  that, subject as described in the Conditions of the Notes and in the Base Prospectus, (i) payments of principal and interest on any Notes will be made by the Issuer or the Guarantors, as the case may be, without withholding or deducting for any taxes, duties or other charges of whatever nature of the jurisdiction in which it is incorporated or any political subdivision or authority thereof or therein having power to tax and (ii) no stamp or other duty or similar tax is assessable or payable in, and no withholding or deduction for or on account of, any taxes, duties, assessments or governmental charges of whatever nature is required to be made by or within the jurisdiction in which it is incorporated or other subdivision of or authority therein or thereof having power to tax, in each case in connection with the authorisation, execution, issue, delivery of or performance of the obligations under the Agreements, the Notes (in the case of the Issuer) and the Guarantees (in the case of the Guarantors);

 

(m)                          that no event has occurred which would constitute (after the issue of any Notes) an event of default under any Notes or which with the giving of notice or the lapse of time or other condition would (after the issue of any Notes) constitute such an event of default;

 

(n)                              that no action has been taken or is contemplated by the Issuer, any Guarantor or any of their respective Subsidiaries (and it is not aware of any action having been taken or being contemplated by any other person with respect to the Issuer, any Guarantor or any of their respective Subsidiaries) which may result in the Issuer or any Guarantor being obliged, under listing requirements or other obligations to its shareholders generally, to make any information which may be material to a subscriber for any Notes available to the public prior to the relevant Issue Date;

 

(o)                              that neither the Issuer, any Guarantor nor their respective affiliates (as defined in Rule 405 under the U.S. Securities Act of 1933, as amended (the Securities Act)) nor any persons (other than the Dealers and their affiliates, as to whom no representation or warranty is made) acting on its or their behalf have engaged or will engage in any directed selling efforts (as defined in Regulation S under the Securities Act) in respect of the Notes;

 

(p)                              that the Issuer, its affiliates and any person (other than any Dealer and their affiliates, as to whom no representation or warranty is made) acting on its or their behalf have complied with and will comply with the offering restrictions requirement of Regulation S under the Securities Act;

 

(q)                              that no part of the proceeds from the sale of the Notes hereunder will be used, directly or indirectly, for any payments to any governmental official or employee, political party, official of a political party, candidate for political office, official of any public international organisation or anyone else acting in an official capacity, in order to obtain, retain or direct business or obtain any improper advantage, in violation of any provision of any applicable anti-bribery or anti-corruption law or regulation enacted in any jurisdiction including, without limitation, the United States Foreign Corrupt Practices Act of 1977, as amended, assuming in all cases that such Act applies to the Issuer and the Guarantors. Each of the Issuer, any Guarantor and their respective Subsidiaries has taken reasonable measures (in any event as required by applicable law) to ensure that it is and will continue to be in compliance with all applicable current and future anti-corruption laws and regulations;

 

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(r)                                 the operations of the Issuer, each Guarantor and their respective Subsidiaries are and have been conducted at all times in compliance with applicable financial record keeping and reporting requirements pursuant to any applicable money laundering statutes in the Republic of Italy, the United States of America and of all jurisdictions in which the Issuer, each Guarantor and their respective Subsidiaries conduct business, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any governmental agency (collectively, Money Laundering Laws) and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Issuer, any Guarantor or any of their respective Subsidiaries with respect to Money Laundering Laws is pending and, to the best of the Issuer’s and each Guarantors’ knowledge, no such actions, suits or proceedings are threatened or contemplated;

 

(s)                                that it has not issued and will not issue, without the prior consent of the Dealers, any press or other public announcement referring to the proposed issue of Notes unless the announcement adequately discloses that stabilising action may take place in relation to the Notes and the Issuer authorises the Dealers to make all appropriate disclosure in relation to stabilisation instead of the Issuer at all times in accordance with the requirements of applicable laws and regulations;

 

(t)                                  that neither the Issuer nor any of its subsidiaries nor, to the knowledge of the Issuer, any director, officer, agent, employee or affiliate of the Issuer or any of its subsidiaries are currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control, U.S. Department of Treasury or any equivalent European Union, United Kingdom or United Nations economic sanctions; and

 

(u)                              that neither the Issuer nor its affiliates will, except to the extent permitted under U.S. Treas. Reg. Section §1.163-5(c)(2)(i)(D) (the D Rules), permit offers or sales of Notes to be made in the United States or its possessions or to United States persons, provided however, that the Issuer makes no such representation or warranty in respect of any activity undertaken by the Dealers or their affiliates in respect of the Notes. Terms used in this paragraph have the meanings given to them by the U.S. Internal Revenue Code of 1986, as amended (the Code), and the Treasury regulations promulgated thereunder.

 

4.2                            With regard to each issue of Notes each of the Issuer and the Guarantors shall be deemed to repeat the representations, warranties and undertakings contained in subclause 4.1 as at the Agreement Date for such Notes (any agreement on such Agreement Date being deemed to have been made on the basis of, and in reliance on, those representations, warranties and undertakings) and as at the Issue Date of such Notes.

 

4.3                            Each of the Issuer and the Guarantors shall be deemed to repeat the representations, warranties and undertakings contained in subclause 4.1 on each date on which the Base Prospectus is revised, supplemented or amended and on each date on which the aggregate nominal amount of the Programme is increased in accordance with clause 12.

 

4.4                            The representations, warranties and undertakings contained in this clause shall continue in full force and effect notwithstanding the actual or constructive knowledge of any Dealer with respect to any of the matters referred to in the representations, warranties and undertakings set out above, any investigation by or on behalf of the Dealers or completion of the subscription and issue of any Notes.

 

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5.                                    UNDERTAKINGS OF THE ISSUER AND THE GUARANTORS

 

5.1                            Notification of material developments

 

(a)                               The Issuer and the Guarantors shall promptly after becoming aware of the occurrence thereof notify each Dealer of:

 

(i)                                  (A) any Event of Default or any condition, event or act which would after an issue of Notes (or would with the giving of notice and/or the lapse of time) constitute an Event of Default or (B) any breach of its representations, warranties or undertakings contained in the Agreements; and

 

(ii)                              any development affecting either the Issuer or the Guarantors or any of their respective businesses which is material in the context of the Programme or any issue of Notes.

 

(b)                              If, following the Agreement Date and before the Issue Date of the relevant Notes, the Issuer or the Guarantors becomes aware that any of the conditions specified in subclause 3.2 will not be satisfied in relation to that issue, the Issuer or the Guarantors, as the case may be, shall forthwith notify the relevant Dealer to this effect giving full details thereof.  In such circumstances, the relevant Dealer shall be entitled (but not bound) by notice to the Issuer and the Guarantors to be released and discharged from its obligations under the agreement reached under clause 2.

 

(c)                               Without prejudice to the generality of this subclause 5.1, the Issuer and the Guarantors shall from time to time promptly furnish to each Dealer any information relating to the Issuer and the Guarantors which the Dealer may reasonably request and which is relevant in relation to the Programme or any issue of Notes and which may be disclosed without contravening any applicable law or any rule or regulation of a relevant stock exchange and without giving rise to an obligation on the part of the Issuer or the Guarantors pursuant to the rules of any relevant stock exchange publicly to disclose such information (unless such obligation to disclose such information had already arisen).

 

5.2                            Updating of Base Prospectus

 

(a)                               On or before each anniversary of the date of this Agreement, the Issuer and the Guarantors shall update or amend the Base Prospectus (following consultation with the Arranger who will consult with the Dealers) by the publication of a new Base Prospectus, in each case in a form approved by the Dealers.

 

(b)                              Subject as set out in the proviso below, in the event of (i) a significant new factor, material mistake or inaccuracy relating to the information included in the Base Prospectus which is capable of affecting the assessment of the Notes arising or being noted, (ii) a change in the condition of the Issuer and/or the Guarantors which is material in the context of the Programme or the issue of any Notes or (iii) the Base Prospectus otherwise coming to contain an untrue statement of a material fact or omitting to state a material fact necessary to make the statements contained therein not misleading or if it is necessary at any time to amend the Base Prospectus to comply with, or reflect changes in, the laws or regulations of the Republic of Italy or the United States of America or any other relevant jurisdiction where such change is relevant in the context of the Programme or the issue of Notes, the Issuer and the Guarantors shall update or amend the Base Prospectus (following consultation with the Arranger who will consult with the Dealers) by the publication in accordance with the Prospectus Directive of a supplement to it or a new Base Prospectus, in each case in a form approved by the Dealers (such approval not to be unreasonably withheld or delayed) other than where a supplement has been prepared in accordance with subclause (c) below provided that the Issuer and the Guarantors undertake that in the period from and including an Agreement Date to and including the related Issue Date of the new Notes, it will only prepare and publish a supplement to, or replacement 

 

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of, the Base Prospectus if it is required, or has reasonable grounds to believe that it is required, to do so in order to comply with Article 13.1 of the Law on Prospectuses for Securities and, in such circumstances, such supplement to, or replacement of, the Base Prospectus shall, solely as between the Issuer and the Guarantors and the relevant Dealer and solely for the purposes of Article 13.2 of the Law on Prospectuses for Securities and clause 3.2(a), be deemed to have been prepared and published so as to comply with the requirements of Article 13.1 of the Law on Prospectuses for Securities.

 

(c)                               On each occasion on which the Issuer or a Guarantor issues annual or audited interim consolidated financial statements the Issuer or the Guarantors, as the case may be, will prepare and publish in accordance with the Prospectus Directive a supplement to the Base Prospectus either setting out those financial statements or incorporating them by reference in the Base Prospectus at the discretion of the Issuer.

 

(d)                              If the terms of the Programme are modified or amended in a manner which would make the Base Prospectus inaccurate or misleading, a new Base Prospectus will be prepared and published in accordance with the Prospectus Directive by the Issuer and the Guarantors in a form approved by the Dealers (such approval not to be unreasonably withheld or delayed).

 

(e)                               Upon any supplement or replacement Base Prospectus being prepared and published as provided above the Issuer and the Guarantors shall promptly without cost to the Dealers supply to each Dealer such number of copies of such supplement or replacement Base Prospectus as each Dealer may reasonably request.  Until a Dealer receives such supplement or replacement Base Prospectus, as the case may be, the definition of Base Prospectus in subclause 1.1 shall, in relation to such Dealer, mean the Base Prospectus prior to the publication of such supplement or replacement Base Prospectus, as the case may be.

 

5.3                            Listing and public offers

 

Each of the Issuer and the Guarantors:

 

(a)                               in the case of Notes which are intended to be listed on the Luxembourg Stock Exchange shall cause an initial application to be made for Notes issued or to be issued under the Programme to be listed on the Luxembourg Stock Exchange; and

 

(b)                              in the case of Notes which are intended to be listed on the Luxembourg Stock Exchange or offered to the public in a European Economic Area Member State in circumstances which require the publication of a prospectus under the Prospectus Directive confirms that the Base Prospectus has been approved as a base prospectus by the CSSF and that it and the applicable Final Terms have been published in accordance with the Prospectus Directive.

 

If, in relation to any issue of Notes, it is agreed between the Issuer and the relevant Dealer or the Lead Manager, as the case may be, to list the Notes on a Stock Exchange, each of the Issuer and the Guarantors undertakes to use its reasonable endeavours to obtain and best endeavours to maintain the listing of the Notes on that Stock Exchange.  If any Notes cease to be listed on the relevant Stock Exchange, the Issuer and the Guarantors shall each use its reasonable endeavours promptly to list the Notes on a stock exchange to be determined by the Issuer (after consultation with the relevant Dealer or, as the case may be, the Lead Manager).  For the avoidance of doubt, where the Issuer has obtained the listing of Notes on a regulated market in the European Economic Area, the undertaking extends to maintaining that listing or, if this is not possible, to obtaining listing of the relevant Notes on another European Economic Area regulated market.

 

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The Issuer and the Guarantors shall comply with the rules of each relevant Stock Exchange (or any other relevant authority or authorities) and shall otherwise comply with any undertakings given by it from time to time to the relevant Stock Exchange (or any other relevant authority or authorities) in connection with the listing of any Notes on that Stock Exchange and, without prejudice to the generality of the foregoing, shall furnish or procure to be furnished to the relevant Stock Exchange (or any other relevant authority or authorities) all the information which the relevant Stock Exchange (or any other relevant authority or authorities) may require in connection with the listing on that Stock Exchange of any Notes.

 

5.4                            The Agreements

 

Each of the Issuer and the Guarantors undertakes that it will not:

 

	
(a)
    	
 
    	
except with   the consent of the Dealers (such consent not to be unreasonably withheld or   delayed), terminate any of the Agreements or effect or permit to become   effective any amendment to any such Agreement which, in the case of an   amendment, would or might reasonably be expected to adversely affect the   interests of any Dealer or of any holder of Notes issued before the date of   the amendment; or
    
	
 
    	
 
    	
 
    
	
(b)
    	
 
    	
except with   the consent of the Dealers, which consent shall not be unreasonably withheld   or delayed, appoint a different Trustee under the Trust Deed; or
    
	
 
    	
 
    	
 
    
	
(c)
    	
 
    	
except with   the consent of the Dealers, which consent shall not be unreasonably withheld   or delayed, appoint a different Agent under the Agency Agreement,
    

 

 

and the Issuer (also on behalf of the Guarantors) will promptly notify each of the Dealers of any termination of, or amendment to, any of the Agreements and of any change in the Trustee under the Trust Deed and/or the Agent under the Agency Agreement.

 

5.5                            Lawful compliance

 

Each of the Issuer and the Guarantors will at all times ensure that all necessary action is taken and all necessary conditions are fulfilled (including, without limitation, obtaining and, where relevant, maintaining in full force and effect all necessary permissions, consents or approvals of all relevant governmental authorities) so that it may lawfully comply with its obligations under all Notes and the Agreements and, further, so that it may comply with any applicable laws, regulations and guidance from time to time promulgated by any governmental and regulatory authorities relevant in the context of the Agreements and the issue of any Notes.

 

5.6                            Authorised representative

 

Each of the Issuer and the Guarantors will notify the Dealers immediately in writing if any of the persons named in the list referred to in paragraph 3 of Part 1 of the Initial Documentation List ceases to be authorised to take action on its behalf or if any additional person becomes so authorised together, in the case of an additional authorised person, with evidence reasonably satisfactory to the Dealers that such person has been so authorised.

 

5.7                            Auditors’ comfort letters

 

Each of the Issuer and the Guarantors will:

 

(a)                               at the time of the preparation of the initial Base Prospectus;

 

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(b)                              on each occasion when the Base Prospectus is updated or amended pursuant to subclause 5.2(a);

 

(c)                               if so requested by the Arranger on behalf of the Dealers or the relevant Dealer or Lead Manager, on each occasion when the Base Prospectus is revised, supplemented or amended (insofar as the revision, supplement or amendment concerns or contains financial information about the Issuer or the Guarantors); and

 

(d)                              whenever requested to do so by a Dealer (on the basis of reasonable grounds),

 

deliver, at the expense of the Issuer (failing which the Guarantors), to the Dealers a comfort letter or comfort letters from independent auditors of the Issuer or the Guarantors, as the case may be, in such form and with such content as the Dealers may reasonably request provided that no letter or letters will be delivered under subclause 5.7(c) above if the only revision, supplement or amendment concerned is the publication or issue of any interim or annual financial statements of the Issuer or the Guarantors, as the case may be.

 

If at or prior to the time of any agreement to issue and purchase Notes under clause 2 a request is made under subclause 5.7(d) above with respect to the Notes to be issued, the receipt of the relevant comfort letter or letters in a form satisfactory to the relevant Dealer shall be a further condition precedent to the issue of those Notes to that Dealer.

 

5.8                            No other issues

 

During the period commencing on an Agreement Date and ending on the Issue Date with respect to any Notes which are to be listed, the Issuer will not, without the prior consent of the relevant Dealer or, as the case may be, the Lead Manager, issue or agree to issue any other listed notes, bonds or other debt securities of whatsoever nature (other than Notes to be issued to the same Dealer) where the notes, bonds or other debt securities would have the same maturity and currency as the Notes to be issued on the relevant Issue Date.

 

5.9                            Information on Noteholders’ meetings

 

Each of the Issuer and the Guarantors will, at the same time as it is despatched, furnish the Dealers with a copy of every notice of a meeting of the holders of the Notes (or any of them) which is despatched at the instigation of the Issuer or the Guarantors and will notify the Dealers immediately upon its becoming aware that a meeting of the holders of the Notes (or any of them) has otherwise been convened.

 

5.10                    Ratings

 

Each of the Issuer and the Guarantors undertakes promptly to notify the Dealers of any change in the ratings given by Standard & Poor’s of the Issuer’s or the Guarantors’ debt or upon it becoming aware that such ratings are listed on “Creditwatch” or other similar publication of formal review by the relevant rating agency.

 

5.11                    Commercial Paper

 

In respect of any Tranche of Notes which has a maturity of less than one year from the date of issue, the Issuer will issue such Notes only if the following conditions apply (or the Notes can otherwise be issued without contravention of Section 19 of the FSMA):

 

(a)                               the relevant Dealer covenants in the terms set out in subclause 3(a) of Appendix 2; and

 

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(b)                              the redemption value of each Note is not less than £100,000 (or an amount of equivalent value denominated wholly or partly in a currency other than sterling), and no part of any Note may be transferred unless the redemption value of that part is not less than £100,000 (or such an equivalent amount).

 

5.12                    Passporting

 

If, in relation to any issue of Notes, the Issuer has agreed with the relevant Dealer(s) that the home Member State which approved the Base Prospectus will be requested to provide a certificate of approval to the competent authority of one or more host Member State(s) under Article 17 and Article 18 of the Prospectus Directive then the arrangements relating to such request (including, but not limited to, the cost of preparing any summary required pursuant to Article 19(4) of the Prospectus Directive) will be agreed between the Issuer and the relevant Dealer(s) at the relevant time.

 

In any such case, the Issuer undertakes (failing which each Guarantor undertakes) that it will use all reasonable endeavours to procure the delivery of a certificate of approval by the CSSF (as the competent authority in Luxembourg) to the competent authority in any host Member State and the European Securities and Markets Authority in accordance with Article 17 and Article 18 of the Prospectus Directive and shall promptly notify each Dealer following receipt by the Issuer of confirmation that such certificate of approval has been so delivered.

 

5.13                    OFAC and equivalent sanctions

 

The Issuer and the Guarantors will each ensure that proceeds raised in connection with the issue of any Notes will not directly or indirectly be lent, contributed or otherwise made available to any person or entity (whether or not related to the Issuer or the Guarantors) for the purpose of financing the activities of any person or for the benefit of any country currently subject to any U.S. sanctions administered by OFAC or any equivalent European Union, United Kingdom or United Nations economic sanctions.

 

5.14                    Announcements

 

Except as required by applicable law or regulations, each of the Issuer and the Guarantors undertakes that it will not, between the Agreement Date and the Issue Date of the relevant Notes (both dates inclusive), without the prior approval of the relevant Dealer or the Lead Manager on behalf of the Managers (where more than one Dealer has agreed to purchase a particular Tranche of Notes), make any announcement which might reasonably be expected to have a material adverse effect on the marketability of the Notes.

 

6.                                    INDEMNITY

 

6.1                            Without prejudice to the other rights or remedies of the Dealers, the Issuer and each Guarantor jointly and severally undertakes to each Dealer that if that Dealer or any of its affiliates, directors, officers, employees, agents or controlling persons (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act, as amended) (together with the Dealers, each a Relevant Party) incurs any liability, damages, cost, loss or expense (including, without limitation, legal fees, costs and expenses) (a Loss) arising out of, in connection with, or based on any actual or alleged breach of the representations, warranties and undertakings contained in, or made by the Issuer and/or the Guarantors under, this Agreement (on the date of this Agreement or on any date when it is deemed to be repeated), the Issuer or, as the case may be, the relevant Guarantor shall pay to that Dealer on demand an amount equal to such Loss. No Dealer shall have any duty or obligation, 

 

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whether as fiduciary or trustee for any Relevant Party or otherwise, to recover any such payment or to account to any other person for any amounts paid to it under this subclause 6.1.

 

6.2                            In case any action shall be brought against any Relevant Party in respect of which recovery may be sought from the Issuer and/or the Guarantors, as the case may be, under this clause 6, the relevant Dealer shall promptly notify the Issuer and/or the relevant Guarantor, as the case may be, in writing but failure to do so will not relieve the Issuer or the relevant Guarantor from any liability under this Agreement.

 

6.3                            If it so elects within a reasonable time after receipt of the notice referred to in subclause 6.2, the Issuer or, as the case may be, the Guarantors may, subject as provided below, assume the defence of the action with legal advisers chosen by it and approved by the Relevant Party (such approval not to be unreasonably withheld or delayed).  Provided that and notwithstanding any such election a Relevant Party may employ separate legal advisers, and the Issuer or the Guarantors shall bear the fees and expenses of such separate legal advisers if:

 

(a)                               the use of the legal advisers chosen by the Issuer or the Guarantors to represent the Relevant Party would present such legal advisers with a conflict of interest;

 

(b)                              the actual or potential defendants in, or targets of, any such action include both the Relevant Party and the Issuer or the Guarantors and the Relevant Party reasonably concludes that there may be legal defences available to it and/or other Relevant Parties which are different from or additional to those available to the Issuer or the Guarantors; or

 

(c)                               the Issuer or the Guarantors has not employed legal advisers satisfactory to the Relevant Party to represent the Relevant Party within a reasonable time after notice of the institution of such action.

 

If the Issuer or, as the case may be, the Guarantors assumes the defence of the action, the Issuer or, as the case may be, the Guarantors shall not be liable for any fees and expenses of legal advisers of the Relevant Party incurred thereafter in connection with the action, except as stated above.

 

6.4                            Neither the Issuer nor the Guarantors shall be liable in respect of any settlement of any action effected without its consent, such consent not to be unreasonably withheld or delayed.  Neither the Issuer nor the Guarantors shall, without the prior written consent of the Relevant Party, settle or compromise or consent to the entry of any judgment with respect to any pending or threatened claim or action in respect of which recovery may be sought hereunder (whether or not the Relevant Party is an actual or potential party to such claim or action) unless such settlement, compromise or consent includes an unconditional release of the Relevant Party from all liability arising out of such claim or action and does not include a statement as to or an admission of fault, culpability or failure to act by or on behalf of the Relevant Party.

 

7.                                    AUTHORITY TO DISTRIBUTE DOCUMENTS AND PROVIDE INFORMATION

 

Subject to clause 8, each of the Issuer and the Guarantors authorises each of the Dealers on behalf of the Issuer and the Guarantors to provide copies of, and to make oral statements consistent with, the Base Prospectus and such additional written information as the Issuer and/or the Guarantors shall provide to the Dealers and approve for the Dealers to use or such other information as is in the public domain from the Issuer and the Guarantors to actual and potential purchasers of Notes.

 

8.                                    DEALERS’ UNDERTAKINGS

 

8.1                            With respect to each applicable Tranche of Notes, each Dealer severally agrees to comply with the restrictions and agreements set out in Appendix 2 unless otherwise agreed with the Issuer.

 

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8.2                            The representations, warranties and undertakings of each of the Dealers under this clause 8 are several and not joint.

 

8.3                            The Issuer and each Guarantor acknowledges and agrees that, in relation to this Agreement and the issue of any Notes:

 

	
(a)
    	
 
    	
each of the   Dealers has been retained only to act as an independent contractor to provide   the services of a manager as expressly set out in this Agreement. Regardless   of any pre-existing or separate relationship, it is agreed that this   Agreement does not give rise to any fiduciary duties on the part of the   Dealers to the Issuer or the Guarantors, or any other person connected to the   Issuer or the Guarantors, in connection with this Agreement;
    
	
 
    	
 
    	
 
    
	
(b)
    	
 
    	
neither the   Issuer nor any Guarantor is relying on the Dealers for any advice, including   advice on legal, tax and accounting matters in any jurisdiction, which, if   the Issuer or any Guarantor requires it, it will obtain from separate   advisers;
    
	
 
    	
 
    	
 
    
	
(c)
    	
 
    	
consistent   with the broad range of activities that each Dealer undertakes for itself and   others, and acknowledging that these may involve interests that differ from   those of the Issuer and the Guarantors, the Issuer and each Guarantor agrees   that the Dealers are under no duty to disclose to, or use for the benefit of,   the Issuer or the Guarantors any information about or derived from these   other activities or to account to the Issuer or the Guarantors for any   benefits obtained in connection with such other activities. The manner and   circumstances in which the Dealers will manage and disclose any conflicts of   interest are fully set out in their respective conflicts policies, which are   available on request;
    
	
 
    	
 
    	
 
    
	
(d)
    	
 
    	
the Issuer and   the Guarantors will independently determine the price and other commercial   aspects of any offering of Notes with or through the Dealers following   arm’s-length negotiations with the Dealers. The Issuer and each Guarantor   also acknowledges that such price and commercial terms may not reflect the   best price and/or terms obtainable in the market and acknowledges that it is   capable of evaluating and understands and accepts the terms of and risks   associated with the services and transactions contemplated by this Agreement;   and
    
	
 
    	
 
    	
 
    
	
(e)
    	
 
    	
save as set   out in any agreement reached pursuant to clause 2, this Agreement constitutes   the entire agreement related to the matters described herein. To the fullest   extent permitted by applicable laws and regulations, the Issuer and each   Guarantor waives any rights it may have, and agrees that the Dealers will not   be liable to anyone, for breaches or alleged breaches of fiduciary duties   relating to the matters described in this Agreement. In particular, and   without limitation, the Issuer and each Guarantor agrees that it will not   claim or allege that any Dealer is liable for the timing, terms or structure   of the offering, for the offer price being set at a level that is too high or   too low, or for any sales of securities by investors to which such securities   are allocated.
    

 

 

8.4                            Nothing in clause 8.3 purports to exclude the obligations and duties imposed on the Dealers by the regulatory system (as defined in the FCA Handbook of Rules and Guidance).

 

9.                                    FEES, EXPENSES AND STAMP DUTIES

 

9.1                           The Issuer, failing which the Guarantors, undertakes that it will:

 

(a)                               pay to each Dealer all commissions agreed between the Issuer and that Dealer in connection with the sale of any Notes to that Dealer (and any value added tax properly chargeable thereon (to the extent that the Dealer or another member of its group is required to account to any relevant tax authority for that value added tax) or other tax thereon);

 

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(b)                              pay (together with any value added tax or other tax thereon):

 

(i)                                  the fees and expenses of its legal advisers and auditors;

 

(ii)                              the cost of listing and maintaining the listing of any Notes which are to be listed on a Stock Exchange;

 

(iii)                          the cost of obtaining any credit rating for the Notes;

 

(iv)                          the fees and expenses of the Trustee under Clause 15 of the Trust Deed and the Agents appointed under the Agency Agreement; and

 

(v)                              all its own or other agreed expenses in connection with (A) the establishment of the Programme and (B) each future update of the Programme including, but not limited to, the preparation and printing of the Base Prospectus, all amendments and supplements to it, replacements of it and each update to it and the cost of any publicity agreed by the Issuer or the Guarantors;

 

(c)                               save as otherwise agreed with the Arranger, pay the agreed fees and disbursements of the legal advisers appointed to represent the Dealers and the Trustee (including any value added tax or other tax thereon) in connection with the establishment and each update of the Programme;

 

(d)                              pay promptly, and in any event before any penalty becomes payable, any stamp, documentary, registration or similar duty or tax (including any stamp duty reserve tax) payable in connection with the entry into, performance, enforcement or admissibility in evidence of any Note, any of the Agreements or any communication pursuant thereto and that it will indemnify each Dealer against any liability with respect to or resulting from any delay in paying or omission to pay any such duty or tax; and

 

(e)                               reimburse each Dealer for its duly documented costs and expenses reasonably and properly incurred in protecting or enforcing any of its rights under this Agreement (including any value added tax or other tax thereon).

 

9.2                            All payments by the Issuer and the Guarantors under this Agreement shall be paid without set-off or counterclaim, and free and clear of and without deduction or withholding for or on account of, any present or future taxes, levies, imports, duties, fees, assessments or other charges of whatever nature, imposed by the Republic of Italy (in respect of the Issuer and Luxottica S.r.l.) or the United States of America (in respect of Luxottica U.S. Holdings Corp) or by any department, agency or other political sub-division or taxing authority thereof or therein, and all interest, penalties or similar liabilities with respect thereto (Taxes). If any Taxes are required by law to be deducted or withheld in connection with any such payment, the Issuer or, as the case may be, the Guarantors will increase the amount paid so that the full amount of such payment is received by the payee as if no such deduction or withholding had been made . In addition, each of the Issuer and the Guarantors agrees to indemnify and hold the Dealers harmless against any Taxes which they are required to pay in respect of any amount paid by the Issuer or, as the case may be, the Guarantors under this Agreement.

 

10.                            TERMINATION OF APPOINTMENT OF DEALERS

 

The Issuer (as to itself and/or any Guarantor) or a Dealer (as to itself only) may terminate the arrangements described in this Agreement by giving not less than 30 days’ written notice to the other parties.  The Issuer may terminate the appointment of a Dealer or Dealers by giving not less than 30 days’ written notice to such Dealer or Dealers (with a copy to all the other Dealers, the Trustee and

 

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the Agent).  Termination shall not affect any rights or obligations (including but not limited to those arising under clauses 6, 8 and/or 9) which have accrued at the time of termination or which accrue thereafter in relation to any act or omission or alleged act or omission which occurred before termination.

 

11.                            APPOINTMENT OF NEW DEALERS

 

11.1                    The Issuer may at any time appoint one or more New Dealers for the duration of the Programme or, with regard to an issue of a particular Tranche of Notes, one or more New Dealers for the purposes of that Tranche, in either case upon the terms of this Agreement.  Unless an appointment is made in a Subscription Agreement any appointment shall be made by:

 

(a)                               the delivery by the New Dealer to the Issuer of an appropriate Dealer Accession Letter; and

 

(b)                              the delivery by the Issuer to the New Dealer of an appropriate Confirmation Letter.

 

11.2                    Upon receipt of the relevant Confirmation Letter or execution of the relevant Subscription Agreement, as the case may be, each New Dealer shall, subject to the terms of the relevant Dealer Accession Letter or the relevant Subscription Agreement, as the case may be, become a party to this Agreement, vested with all authority, rights, powers, duties and obligations of a Dealer as if originally named as a Dealer under this Agreement provided that, except in the case of the appointment of a New Dealer for the duration of the Programme, following the Issue Date of the relevant Tranche, the relevant New Dealer shall have no further such authority, rights, powers, duties or obligations except for any which have accrued or been incurred prior to, or in connection with, the issue of the relevant Tranche.

 

11.3                    The Issuer shall promptly notify the other Dealers, the Trustee and the Agent of any appointment of a New Dealer for the duration of the Programme by supplying to them a copy of any Dealer Accession Letter and Confirmation Letter.  Such notice shall be required to be given in the case of an appointment of a New Dealer for a particular Tranche of Notes to the Trustee and the Agent only.

 

12.                            INCREASE IN THE AGGREGATE NOMINAL AMOUNT OF THE PROGRAMME

 

12.1                    From time to time the Issuer and the Guarantors may increase the aggregate nominal amount of the Notes that may be issued under the Programme by delivering to the Dealers (with a copy to the Trustee and the Agent) a letter substantially in the form set out in Appendix 4.  Upon the date specified in the notice (which date may not be earlier than seven London business days after the date the notice is given) and subject to satisfaction of the conditions precedent set out in subclause 12.2, all references in the Agreements to a Euro Medium Term Note Programme of a certain nominal amount shall be deemed to be references to a Euro Medium Term Note Programme of the increased nominal amount.

 

12.2                    Notwithstanding subclause 12.1, the right of the Issuer and the Guarantors to increase the aggregate nominal amount of the Programme shall be subject to each Dealer having received and found satisfactory all the documents and confirmations described in Part 2 of the Initial Documentation List (with such changes as may be relevant with reference to the circumstances at the time of the proposed increase as are agreed between the Issuer, the Guarantors and the Dealers), and the satisfaction of any further conditions precedent that any of the Dealers may reasonably require, including, without limitation, the production of a new Base Prospectus or a supplement to the Base Prospectus by the Issuer and the Guarantors and any further or other documents required by the relevant authority or authorities for the purpose of listing any Notes to be issued under the increased Programme on the relevant Stock Exchange.  The Arranger shall circulate to the Dealers all the documents and confirmations described in Part 2 of the Initial Documentation List and any further

 

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conditions precedent so required.  Any Dealer must notify the Arranger and the Issuer within seven London business days of receipt if it considers, in its reasonable opinion, that any of the documents, confirmations and, if applicable, further conditions precedent are unsatisfactory and, in the absence of such notification, each Dealer shall be deemed to consider the documents and confirmations to be satisfactory and any further conditions precedent to be satisfied.

 

13.                            STATUS OF THE ARRANGER

 

13.1                    Each of the Dealers agrees that the Arranger has only acted in an administrative capacity to facilitate the establishment and/or maintenance of the Programme and has no responsibility to it for (a) the adequacy, accuracy, completeness or reasonableness of any representation, warranty, undertaking, agreement, statement or information in the Base Prospectus, any Final Terms, this Agreement or any information provided in connection with the Programme or (b) the nature and suitability to it of all legal, tax and accounting matters and all documentation in connection with the Programme or any Tranche.

 

13.2                    The Arranger shall have only those duties, obligations and responsibilities expressly specified in this Agreement.

 

14.                            COUNTERPARTS

 

This Agreement may be executed in any number of counterparts, and this has the same effect as if the signatures on the counterparts were on a single copy of this Agreement.

 

15.                            COMMUNICATIONS

 

15.1                    All communications shall be by fax or letter delivered by hand or (but only where specifically provided in the Procedures Memorandum) by telephone.  Each communication shall be made to the relevant party at the fax number or address or telephone number and, in the case of a communication by fax or letter, marked for the attention of, or (in the case of a communication by telephone) made to, the person or department from time to time specified in writing by that party to the others for the purpose.  The initial telephone number, fax number and person or department so specified by each party are set out in the Procedures Memorandum.

 

15.2                    A communication shall be deemed received (if by fax) when an acknowledgement of receipt is received, (if by telephone) when made or (if by letter) when delivered, in each case in the manner required by this clause.  However, if a communication is received after business hours on any business day or on a day which is not a business day in the place of receipt it shall be deemed to be received and become effective at the opening of business on the next business day in the place of receipt.  Every communication shall be irrevocable save in respect of any manifest error in it.

 

15.3                    Any notice given under or in connection with this Agreement shall be in English.  All other documents provided under or in connection with this Agreement shall be:

 

(a)                               in English; or

 

(b)                              if not in English, accompanied by a certified English translation and, in this case, the English translation shall prevail unless the document is a statutory or other official document.

 

16.                            BENEFIT OF AGREEMENT

 

16.1                    This Agreement shall be binding on and shall inure for the benefit of the Issuer, the Guarantors and each Dealer and their respective successors and permitted assigns.

 

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16.2                    A Dealer may only assign or transfer its rights or obligations under this Agreement with the prior written consent of the Issuer and the Guarantors except for an assignment and/or transfer of all of a Dealer’s rights and obligations under this Agreement in whatever form the Dealer determines may be appropriate to a partnership, corporation, trust or other organisation in whatever form that may succeed to, or to which the Dealer transfers, all or substantially all of the Dealer’s assets and business and that assumes the obligations by contract, operation of law or otherwise.  Upon any transfer and assumption of obligations the Dealer shall be relieved of and fully discharged from all obligations under this Agreement, whether the obligations arose before or after the transfer and assumption.

 

17.                            CURRENCY INDEMNITY

 

If, under any applicable law and whether pursuant to a judgment being made or registered against the Issuer or the Guarantors or in the liquidation, insolvency or analogous process of the Issuer or the Guarantors or for any other reason, any payment under or in connection with this Agreement is made or falls to be satisfied in a currency (the other currency) other than that in which the relevant payment is expressed to be due (the required currency) under this Agreement, then, to the extent that the payment (when converted into the required currency at the rate of exchange on the date of payment or, if it is not practicable for the relevant Dealer to purchase the required currency with the other currency on the date of payment, at the rate of exchange as soon thereafter as it is practicable for it to do so or, in the case of a liquidation, insolvency or analogous process, at the rate of exchange on the latest date permitted by applicable law for the determination of liabilities in such liquidation, insolvency or analogous process) actually received by the relevant Dealer falls short of the amount due under the terms of this Agreement, the Issuer and the Guarantors jointly and severally undertake that they shall, as a separate and independent obligation, indemnify and hold harmless the Dealer against the amount of such shortfall.  For the purpose of this clause rate of exchange means the rate at which the relevant Dealer is able on the London foreign exchange market on the relevant date to purchase the required currency with the other currency and shall take into account any premium and other reasonable costs of exchange.

 

18.                            CALCULATION AGENT

 

18.1                    In the case of any Series of Notes which require the appointment of a Calculation Agent, the relevant Dealer or, as the case may be, the Lead Manager may request the Issuer to appoint that Dealer or Lead Manager, or a person nominated by the Dealer or Lead Manager (a Nominee), as Calculation Agent.

 

18.2                    Should a request be made to the Issuer for the appointment of that Dealer or Lead Manager as the Calculation Agent, the appointment shall be automatic upon the issue of the relevant Series of Notes and shall, except as agreed, be on the terms set out in the Calculation Agency Agreement set out in Schedule 1 to the Agency Agreement, and no further action shall be required to effect the appointment of the Dealer or Lead Manager as Calculation Agent in relation to that Series of Notes, and the Schedule to the Calculation Agency Agreement shall be deemed to be duly annotated to include that Series.  The name of the Dealer or Lead Manager so appointed will be entered in the applicable Final Terms.

 

18.3                    Should a request be made to the Issuer for the appointment of a Nominee as the Calculation Agent, the Nominee shall agree with the Issuer in writing to its appointment as Calculation Agent on the terms set out in the Calculation Agency Agreement set out in Schedule 1 to the Agency Agreement and no further action shall be required to effect the appointment of the Nominee as Calculation Agent in relation to that Series of Notes, and the Schedule to the Calculation Agency Agreement shall be deemed to be duly annotated to include that Series.  The name of the Nominee so appointed will be entered in the applicable Final Terms.

 

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19.                            STABILISATION

 

In connection with the distribution of any Notes, any Dealer designated as a Stabilising Manager in the applicable Final Terms may over-allot or effect transactions which support the market price of the Notes at a level higher than that which might otherwise prevail, but in doing so such Dealer shall act as principal and not as agent of the Issuer or the Guarantors.  Any stabilisation will be conducted in accordance with all applicable laws and regulations.  Any loss resulting from over-allotment and stabilisation shall be borne, and any net profit arising therefrom shall be retained, by any Stabilising Manager for its own account.

 

20.                            CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999

 

A person who is not a party to this Agreement has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this Agreement, but this does not affect any right or remedy of a third party which exists or is available apart from that Act.

 

21.                            GOVERNING LAW AND SUBMISSION TO JURISDICTION

 

21.1                    This Agreement and every agreement for the issue and purchase of Notes as referred to in clause 2 and any non-contractual obligations arising out of or in connection with such agreement are governed by, and shall be construed in accordance with, English law.

 

21.2                    Subject to sub-clause 21.4, the courts of England have jurisdiction to settle any disputes which may arise out of or in connection with the Notes and/or the Coupons, including a dispute relating to any non-contractual obligations arising out of or in connection with the Notes and/or the Coupons, (a Dispute) and, accordingly, each of the Issuer and any Noteholders and Couponholders in relation to any Dispute submits to the jurisdiction of such courts.

 

21.3                    For the purposes of this clause 21, the Issuer hereby irrevocably waives any objection which it may have now or hereafter to the laying of the venue of any suit, action or proceedings (together referred to as Proceedings) in any such court on the grounds that that any such Proceedings have been brought in an inconvenient forum.

 

21.4                    To the extent allowed by law, the Noteholders and the Couponholders may, in respect of any Dispute or Disputes, take (i) Proceedings against the Issuer in any other court of competent jurisdiction, and (ii) concurrent Proceedings in one or more jurisdictions.

 

21.5                    The Issuer appoints Luxottica UK Ltd. at its registered office for the time being as its agent for service of process in England, and undertakes that, in the event of Luxottica UK Ltd. ceasing so to act or ceasing to be registered in England, it will appoint another person as its agent for service of process in England in respect of any Proceedings. Nothing herein shall affect the right to serve proceedings in any other manner permitted by law.

 

THIS AGREEMENT has been entered into on the date stated at the beginning of this Agreement.

 

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APPENDIX 1

 

INITIAL DOCUMENTATION LIST

 

PART 1

 

1.                                    A certified copy of the by-laws of the each of the Issuer and the Guarantors.

 

2.                                    A certified copy of all resolutions and other authorisations required to be passed or given, and evidence of any other action required to be taken, on behalf of the Issuer and the Guarantors:

 

(a)                               to approve its entry into the Agreements, the creation of the Programme and the issue of Notes;

 

(b)                              to authorise appropriate persons to execute each of the Agreements and any Notes and to take any other action in connection therewith; and

 

(c)                               to authorise appropriate persons to enter into agreements with any Dealer on behalf of the Issuer to issue Notes in accordance with clause 2 of this Agreement.

 

3.                                    A certified list of the names, titles and specimen signatures of the persons authorised on behalf of the Issuer and the Guarantors in accordance with paragraph 2(c).

 

4.                                    Certified copies of any other governmental or other consents, authorisations and approvals required for the Issuer to issue or for the Guarantors to guarantee Notes, for the Issuer and the Guarantors to execute and deliver the Agreements and for the Issuer and the Guarantors to fulfil their respective obligations under the Agreements.

 

5.                                    Confirmation that one or more master Temporary Global Notes and master Permanent Global Notes (from which copies can be made for each particular issue of Notes), duly executed by a person or persons authorised to take action on behalf of the Issuer as specified in paragraph 2(b) above, have been delivered to the Agent.

 

6.                                    Legal opinions addressed to each of the Dealers and the Trustee dated on the date of this Agreement, in such form and with such content as the Dealers and the Trustee may reasonably require, from:

 

(a)                               Clifford Chance Studio Legale Associato, legal advisers to the Issuer and Luxottica S.r.l. as to Italian law;

 

(b)                              Winston & Strawn LLP, legal advisers to Luxottica U.S. Holdings Corp. as to U.S. law; and

 

(c)                               Allen & Overy LLP, legal advisers to the Dealers and the Trustee as to English and Italian law.

 

7.                                    A conformed copy of each Agreement and confirmation that executed copies of each Agreement have been delivered, in the case of the Trust Deed, to the Trustee and, in the case of the Agency Agreement, to the Trustee and the Agent (for itself and the other agents party thereto).

 

25

 

8.                                    Confirmation of the execution and delivery by the Issuer of the Programme effectuation authorisation to each of Euroclear and Clearstream, Luxembourg (the ICSDs), the execution and delivery of an Issuer – ICSD Agreement by the parties thereto and the making by the Agent of a common safekeeper election in accordance with sub-clause 2.3 of the Agency Agreement.

 

9.                                    A printed final version of the Base Prospectus and the Procedures Memorandum.

 

10.                            Confirmation that the Base Prospectus has been approved as a base prospectus by the CSSF and has been published in accordance with the Prospectus Directive.

 

11.                            Comfort letter from PricewaterhouseCoopers S.p.A. as independent auditors of the Issuer and the Guarantors in such form and with such content as the Dealers may reasonably request.

 

12.                            Confirmation that the Programme has been rated BBB+ by Standard & Poor’s.

 

13.                            Letter from Luxottica UK Ltd. confirming its acceptance as agent for service of process of the Issuer and the Guarantors.

 

26

 

PART 2

 

1.                                    A certified copy of the by-laws of the each of the Issuer and the Guarantors or confirmation that they have not been changed since they were last submitted to the Dealers.

 

2.                                    A certified copy of all resolutions and other authorisations required to be passed or given, and evidence of any other action required to be taken, on behalf of the Issuer and the Guarantors to approve the increase in the amount of the Programme.

 

3.                                    Certified copies of any other governmental or other consents, authorisations and approvals required for the increase.

 

4.                                    Confirmation that one or more master Temporary Global Notes and master Permanent Global Notes (from which copies can be made for each particular issue of Notes), duly executed by a person or persons authorised to take action on behalf of the Issuer as specified in paragraph 2(b) of Part 1 of the Initial Documentation List, have been delivered to the Agent.

 

5.                                    Legal opinions addressed to each of the Dealers and the Trustee dated on or after the date of this Agreement, in such form and with such content as the Dealers and the Trustee may reasonably require, from:

 

(a)                               Clifford Chance Studio Legale Associato, legal advisers to the Issuer and Luxottica S.r.l. as to Italian law;

 

(b)                              Winston & Strawn LLP, legal advisers to Luxottica U.S. Holdings Corp. as to U.S. law; and

 

(c)                               Allen & Overy LLP, legal advisers to the Dealers and the Trustee as to English and Italian law.

 

6.                                    A printed final version of the Base Prospectus.

 

7.                                    Confirmation that that (i) the Base Prospectus has been approved as a base prospectus by the CSSF or (ii) the supplement has been approved by the CSSF and, in each case, has been published in accordance with the Prospectus Directive.

 

8.                                    Comfort letter from PricewaterhouseCoopers S.p.A. as independent auditors of the Issuer and the Guarantors in such form and with such content as the Dealers may reasonably request.

 

9.                                    Confirmation from Standard & Poor’s that there has been no change in the rating assigned by them to the Programme as a result of the increase.

 

27

 

APPENDIX 2

 

SELLING RESTRICTIONS

 

1.                                    United States

 

1.1                            The Notes have not been and will not be registered under the Securities Act, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons except in accordance with Regulation S under the Securities Act or pursuant to an exemption from the registration requirements of the Securities Act.  Each Dealer represents and agrees that it has offered and sold any Notes, and will offer and sell any Notes (i) as part of their distribution at any time and (ii) otherwise until 40 days after the completion of the distribution of all Notes of the Tranche of which such Notes are a part, as determined and certified as provided below, only in accordance with Rule 903 of Regulation S under the Securities Act.  Each Dealer who has purchased Notes of a Tranche hereunder (or in the case of a sale of a Tranche of Notes issued to or through more than one Dealer, each of such Dealers as to the Notes of such Tranche purchased by or through it or, in the case of a syndicated issue, the relevant Lead Manager) shall determine and certify to the Agent the completion of the distribution of the Notes of such Tranche.  On the basis of such notification or notifications, the Agent has agreed to notify such Dealer/Lead Manager of the end of the distribution compliance period with respect to such Tranche.  Each Dealer also agrees that, at or prior to confirmation of sale of Notes, it will have sent to each distributor, dealer or person receiving a selling concession, fee or other remuneration that purchases Notes from it during the distribution compliance period a confirmation or notice to substantially the following effect:

 

“The Securities covered hereby have not been registered under the U.S. Securities Act of 1933, as amended (the Securities Act), and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons (i) as part of their distribution at any time or (ii) otherwise until 40 days after the completion of the distribution of the Securities as determined and certified by the relevant Dealer, in the case of a non-syndicated issue, or the Lead Manager, in the case of a syndicated issue, and except in either case in accordance with Regulation S under the Securities Act.  Terms used above have the meanings given to them by Regulation S.”

 

Terms used in this subclause 1.1 have the meanings given to them by Regulation S.

 

1.2                            Each Dealer represents and agrees that it, its affiliates or any persons acting on its or their behalf have not engaged and will not engage in any directed selling efforts with respect to any Note, and it and they have complied and will comply with the offering restrictions requirement of Regulation S.

 

1.3                            In addition in respect of Notes where TEFRA D is specified in the applicable Final Terms:

 

(a)                               except to the extent permitted under U.S. Treas. Reg. Section 1.163-5(c)(2)(i)(D) (the D Rules), each Dealer (i) represents that it has not offered or sold, and agrees that during the restricted period it will not offer or sell, Notes in bearer form to a person who is within the United States or its possessions or to a United States person, and (ii) represents that it has not delivered and agrees that it will not deliver within the United States or its possessions definitive Notes in bearer form that are sold during the restricted period;

 

28

 

(b)                              each Dealer represents that it has and agrees that throughout the restricted period it will have in effect procedures reasonably designed to ensure that its employees or agents who are directly engaged in selling Notes in bearer form are aware that such Notes may not be offered or sold during the restricted period to a person who is within the United States or its possessions or to a United States person, except as permitted by the D Rules;

 

(c)                               if it is a United States person, each Dealer represents that it is acquiring Notes in bearer form for purposes of resale in connection with their original issuance and if it retains Notes in bearer form for its own account, it will only do so in accordance with the requirements of U.S. Treas. Reg. Section l.163-5(c)(2)(i)(D)(6); and

 

(d)                              with respect to each affiliate that acquires Notes in bearer form from a Dealer for the purpose of offering or selling such Notes during the restricted period, such Dealer either (i) repeats and confirms the representations and agreements contained in subclauses 1.3(a), 1.3(b) and 1.3(c) on such affiliate’s behalf, or (ii) will obtain from such affiliate for the benefit of the Issuer and the Guarantors the representations and agreements contained in subclauses 1.3(a), 1.3(b) and 1.3(c) above.

 

Terms used in this subclause 1.3 have the meanings given to them by the U.S. Internal Revenue Code of 1986 and Treasury regulations promulgated thereunder, including the D Rules.

 

1.4                            In respect of Notes where TEFRA C is specified in the applicable Final Terms, such Notes must be issued and delivered outside the United States and its possessions in connection with their original issuance.  Each Dealer represents and agrees that it has not offered, sold or delivered, and will not offer, sell or deliver, directly or indirectly, such Notes within the United States or its possessions in connection with their original issuance.  Further, each Dealer represents and agrees in connection with the original issuance of such Notes that it has not communicated, and will not communicate, directly or indirectly, with a prospective purchaser if such purchaser is within the United States or its possessions and will not otherwise involve its U.S. office in the offer or sale of such Notes.

 

2.                                    Public Offer Selling Restriction under the Prospectus Directive

 

In relation to each Member State of the European Economic Area which has implemented the Prospectus Directive (each, a Relevant Member State), each Dealer represents and agrees that with effect from and including the date on which the Prospectus Directive is implemented in that Relevant Member State (the Relevant Implementation Date) it has not made and will not make an offer of Notes which are the subject of the offering contemplated by the Base Prospectus as completed by the Final Terms in relation thereto to the public in that Relevant Member State except that it may, with effect from and including the Relevant Implementation Date, make an offer of such Notes to the public in that Relevant Member State:

 

(a)                               at any time to any legal entity which is a qualified investor as defined in the Prospectus Directive;

 

(b)                              at any time to fewer than 100 or, if the relevant Member State has implemented the relevant provision of the 2010 PD Amending Directive, 150, natural or legal persons (other than qualified investors as defined in the Prospectus Directive) subject to obtaining the prior consent of the relevant Dealer or Dealers nominated by the Issuer for any such offer; or

 

(c)                               at any time in any other circumstances falling within Article 3(2) of the Prospectus Directive,

 

29

 

provided that no such offer of Notes referred to in (a) to (c) above shall require the Issuer or any Dealer to publish a prospectus pursuant to Article 3 of the Prospectus Directive, or supplement a prospectus pursuant to Article 16 of the Prospectus Directive.

 

For the purposes of this provision, the expression an offer of Notes to the public in relation to any Notes in any Relevant Member State means the communication in any form and by any means of sufficient information on the terms of the offer and the Notes to be offered so as to enable an investor to decide to purchase or subscribe the Notes, as the same may be varied in that Member State by any measure implementing the Prospectus Directive in that Member State and the expression Prospectus Directive means Directive 2003/71/EC(and amendments thereto, including the 2010 PD Amending Directive, to the extent implemented in the Relevant Member State), and includes any relevant implementing measure in the Relevant Member State and the expression 2010 PD Amending Directive means Directive 2010/73/EU.

 

3.                                    United Kingdom

 

Each Dealer represents and agrees that:

 

(a)                               in relation to any Notes having a maturity of less than one year, (i) it is a person whose ordinary activities involve it in acquiring, holding, managing or disposing of investments (as principal or agent) for the purposes of its business and (ii) it has not offered or sold and will not offer or sell any Notes other than to persons whose ordinary activities involve them in acquiring, holding, managing or disposing of investments (as principal or agent) for the purposes of their businesses or who it is reasonable to expect will acquire, hold, manage or dispose of investments (as principal or agent) for the purposes of their businesses where the issue of the Notes would otherwise constitute a contravention of Section 19 of the FSMA by the Issuer;

 

(b)                              it has only communicated or caused to be communicated and will only communicate or cause to be communicated an invitation or inducement to engage in investment activity (within the meaning of Section 21 of the FSMA) received by it in connection with the issue or sale of any Notes in circumstances in which Section 21(1) of the FSMA does not apply to the Issuer or the Guarantors; and

 

(c)                               it has complied and will comply with all applicable provisions of the FSMA with respect to anything done by it in relation to any Notes in, from or otherwise involving the United Kingdom.

 

4.                                    Italy

 

The offering of the Notes has not been registered pursuant to Italian securities legislation and, accordingly, no Notes may be offered, sold or delivered, nor may copies of the Base Prospectus or of any other document relating to the Notes be distributed in the Republic of Italy, except:

 

(i)                                  to qualified investors (investitori qualificati), as defined pursuant to Article 100 of Legislative Decree No. 58 of 24 February 1998, as amended (the Financial Services Act) and Article 34-ter, first paragraph, letter (b) of CONSOB Regulation No. 11971 of 14 May 1999, as amended from time to time (Regulation No. 11971); or

 

(ii)                              in other circumstances which are exempted from the rules on public offerings pursuant to Article 100 of the Financial Services Act and Article 34-ter of Regulation No. 11971.

 

Any offer, sale or delivery of the Notes or distribution of copies of the Base Prospectus or any other document relating to the Notes in the Republic of Italy under (i) or (ii) above must be:

 

30

 

(a)                               made by an investment firm, bank or financial intermediary permitted to conduct such activities in the Republic of Italy in accordance with the Financial Services Act, CONSOB Regulation No. 16190 of 29 October 2007 (as amended from time to time) and Legislative Decree No. 385 of 1 September 1993, as amended (the Banking Act); and

 

(b)                              in compliance with Article 129 of the Banking Act, as amended, and the implementing guidelines of the Bank of Italy, as amended from time to time, pursuant to which the Bank of Italy may request information on the issue or the offer of securities in the Republic of Italy; and

 

(c)                               in compliance with any other applicable laws and regulations or requirement imposed by CONSOB or other Italian authority.

 

5.                                    Japan

 

The Notes have not been and will not be registered under the Financial Instruments and Exchange Act of Japan (Act No.25 of 1948, as amended; the FIEA) and each Dealer represents and agrees, and each further Dealer appointed under the Programme will be required to represent and agree, that it will not offer or sell any Notes, directly or indirectly, in Japan or to, or for the benefit of, any resident of Japan (as defined under Item 5, Paragraph 1, Article 6 of the Foreign Exchange and Foreign Trade Act (Act No. 228 of 1949, as amended)), or to others for re-offering or resale, directly or indirectly, in Japan or to, or for the benefit of, a resident of Japan, except pursuant to an exemption from the registration requirements of, and otherwise in compliance with, the FIEA and any other applicable laws, regulations and ministerial guidelines of Japan.

 

6.                                    General

 

Each Dealer agrees that it will (to the best of its knowledge and belief) comply with all applicable securities laws and regulations in force in any jurisdiction in which it purchases, offers, sells or delivers Notes or possesses or distributes the Base Prospectus and will obtain any consent, approval or permission required by it for the purchase, offer, sale or delivery by it of Notes under the laws and regulations in force in any jurisdiction to which it is subject or in which it makes such purchases, offers, sales or deliveries and none of the Issuer, the Guarantors, the Trustee and any other Dealer shall have any responsibility therefor.

 

None of the Issuer, the Guarantors, the Trustee and any of the Dealers represents that Notes may at any time lawfully be sold in compliance with any applicable registration or other requirements in any jurisdiction, or pursuant to any exemption available thereunder, or assumes any responsibility for facilitating any such sale.

 

With regard to each Tranche, the relevant Dealer will be required to comply with any additional restrictions agreed between the Issuer and the relevant Dealer and set out in the Subscription Agreement or Dealer Accession Letter, as relevant.

 

31

 

APPENDIX 3

 

FORMS OF DEALER ACCESSION LETTERS AND CONFIRMATION LETTERS

 

PART 1

 

FORM OF DEALER ACCESSION LETTER – PROGRAMME

 

[Date]

 

To:                           Luxottica Group S.p.A.

(the Issuer)

 

Dear Sirs,

 

LUXOTTICA GROUP S.p.A.

€2,000,000,000

Euro Medium Term Note Programme

unconditionally and irrevocably guaranteed by

Luxottica U.S. Holdings Corp.

and

Luxottica S.r.l.

 

We refer to the Programme Agreement dated 10 May 2013 entered into in respect of the above Euro Medium Term Note Programme and made between the Issuer, Luxottica U.S. Holdings Corp. and Luxottica S.r.l. (each a Guarantor and together, the Guarantors) and the Dealers party to it (which agreement, as amended, supplemented or restated from time to time, is referred to as the Programme Agreement).

 

We confirm that we are in receipt of the following documents:

 

(a)                               a copy of the Programme Agreement; and

 

(b)                              a copy of current versions of all other documents delivered under Appendix 1 to the Programme Agreement as we have requested,

 

and have found them to our satisfaction.

 

For the purposes of the Programme Agreement our notice details are as follows:

 

[insert name, address, telephone, facsimile, and attention].

 

In consideration of the appointment by the Issuer of us as a Dealer under the Programme Agreement we undertake, for the benefit of the Issuer, the Guarantors and each of the other Dealers, that we will perform and comply with all the duties and obligations expressed to be assumed by a Dealer under the Programme Agreement.

 

This letter and any non-contractual obligations arising out of or in connection with this letter are governed by, and shall be construed in accordance with, English law.

 

Yours faithfully,

[Name of New Dealer]

 

By:

 

32

 

cc:                              BNP Paribas Trust Corporation UK Ltd as Trustee

BNP Paribas Securities Services, Luxembourg Branch as Agent

The other Dealers

 

33

 

PART 2

 

FORM OF CONFIRMATION LETTER – PROGRAMME

 

[Date]

 

To:                           [Name and address of New Dealer]

 

Dear Sirs,

 

LUXOTTICA GROUP S.p.A.

€2,000,000,000

Euro Medium Term Note Programme

unconditionally and irrevocably guaranteed by

Luxottica U.S. Holdings Corp.

and

Luxottica S.r.l.

 

We refer to the Programme Agreement dated 10 May 2013 (which agreement, as amended, supplemented or restated from time to time, is referred to as the Programme Agreement) entered into in respect of the above Euro Medium Term Note Programme and acknowledge receipt of your Dealer Accession Letter to us dated [specify].

 

We confirm that, with effect from today’s date, you shall become a Dealer under the Programme Agreement in accordance with subclause 11.2 of the Programme Agreement.

 

Yours faithfully,

 

Luxottica Group S.p.A.

 

By:

 

cc:                              BNP Paribas Trust Corporation UK Ltd as Trustee

BNP Paribas Securities Services, Luxembourg Branch as Agent

The other Dealers

 

34

 

PART 3

 

FORM OF DEALER ACCESSION LETTER – NOTE ISSUE

 

[Date]

 

To:                           Luxottica Group S.p.A.

(the Issuer)

 

Dear Sirs,

 

LUXOTTICA GROUP S.p.A.

€2,000,000,000

Euro Medium Term Note Programme

unconditionally and irrevocably guaranteed by

Luxottica U.S. Holdings Corp.

and

Luxottica S.r.l.

 

[Description of issue]

(the Notes)

 

We refer to the Programme Agreement dated 10 May 2013 and made between the Issuer, Luxottica U.S. Holdings Corp. and Luxottica S.r.l. (each a Guarantor and together, the Guarantors) and the Dealers party to it (which agreement, as amended, supplemented or restated from time to time, is referred to as the Programme Agreement).

 

We confirm that we are in receipt of the following documents:

 

(a)                               a copy of the Programme Agreement; and

 

(b)                              a copy of current versions of all other documents delivered under Appendix 1 of the Programme Agreement as we have requested,

 

and have found them to our satisfaction.

 

For the purposes of the Programme Agreement our notice details are as follows:

 

[insert name, address, telephone, facsimile, and attention].

 

In consideration of the appointment by the Issuer of us as a Dealer under the Programme Agreement in respect of the issue of the Notes we undertake, for the benefit of the Issuer, the Guarantors and each of the other Dealers, that, in relation to the issue of the Notes, we will perform and comply with all the duties and obligations expressed to be assumed by a Dealer under the Programme Agreement.

 

[Include any additional selling restrictions.]

 

This letter and any non-contractual obligations arising out of or in connection with this letter are governed by, and shall be construed in accordance with, English law.

 

Yours faithfully,

 

[Name of New Dealer]

 

35

 

By:

 

cc:                              BNP Paribas Trust Corporation UK Ltd as Trustee

BNP Paribas Securities Services, Luxembourg Branch as Agent

 

36

 

PART 4

 

FORM OF CONFIRMATION LETTER – NOTE ISSUE

 

[Date]

 

To:                           [Name and address of New Dealer]

 

Dear Sirs,

 

LUXOTTICA GROUP S.p.A.

€2,000,000,000

Euro Medium Term Note Programme

unconditionally and irrevocably guaranteed by

Luxottica U.S. Holdings Corp.

and

Luxottica S.r.l.

 

[Description of issue]

(the Notes)

 

We refer to the Programme Agreement dated 10 May 2013 (which agreement, as amended, supplemented or restated from time to time, is referred to as the Programme Agreement) and acknowledge receipt of your Dealer Accession Letter to us dated [specify].

 

We confirm that, with effect from today’s date, in respect of the issue of the Notes, you shall become a Dealer under the Programme Agreement in accordance with subclause 11.2 of the Programme Agreement.

 

Yours faithfully,

Luxottica Group S.p.A.

 

By:

 

cc:                              BNP Paribas Trust Corporation UK Ltd as Trustee

BNP Paribas Securities Services, Luxembourg Branch as Agent

 

37

 

APPENDIX 4

 

LETTER REGARDING INCREASE IN THE NOMINAL AMOUNT OF THE PROGRAMME

 

[Date]

 

To:                           The Dealers

(as defined in the

Programme Agreement dated 10 May 2013,

as amended, supplemented or restated from

time to time (the Programme Agreement))

 

Dear Sirs,

 

LUXOTTICA GROUP S.p.A.

€2,000,000,000

Euro Medium Term Note Programme

unconditionally and irrevocably guaranteed by

Luxottica U.S. Holdings Corp.

and

Luxottica S.r.l.

 

We require, pursuant to subclause 12.1 of the Programme Agreement, that the aggregate nominal amount of the above Programme be increased to €[specify] from [specify date which is no earlier than seven London business days after the date the notice is given] whereupon (but subject as provided in the next paragraph) all references in the Agreements will be deemed amended accordingly.

 

We understand that this increase is subject to the satisfaction of the condition set out in subclause 12.2 of the Programme Agreement, namely that each Dealer shall have received and found satisfactory all the documents and confirmations described in Part 2 of the Initial Documentation List (with such changes as may be relevant, with reference to the circumstances at the time of the proposed increase, as are agreed between the Issuer and the Dealers) and the delivery of any further conditions precedent that any of the Dealers may reasonably require.

 

You must notify the Arranger and ourselves within seven London business days of receipt by you of those documents and confirmations and, if applicable, further conditions precedent if you consider (in your reasonable opinion) that any of them are unsatisfactory and, in the absence of such notification, you will be deemed to consider such documents and confirmations to be satisfactory and such further conditions precedent to be satisfied.

 

Terms used in this letter have the meanings given to them in the Programme Agreement.

 

Yours faithfully,

Luxottica Group S.p.A.

 

By:

 

cc:                              BNP Paribas Trust Corporation UK Ltd as Trustee

BNP Paribas Securities Services, Luxembourg Branch as Agent]

 

38

 

APPENDIX 5

 

FORM OF SUBSCRIPTION AGREEMENT

 

LUXOTTICA GROUP S.p.A.

€2,000,000,000

Euro Medium Term Note Programme

unconditionally and irrevocably guaranteed by

Luxottica U.S. Holdings Corp.

and

Luxottica S.r.l.

 

[DESCRIPTION OF ISSUE]

 

[DATE]

 

To:                           [Names of Dealers]

(the Managers)

 

c/o                             [Name of Lead Manager]

(the Lead Manager)

 

cc:                              BNP Paribas Trust Corporation UK Ltd as Trustee

BNP Paribas Securities Services, Luxembourg Branch as Agent

 

Dear Sirs,

 

Luxottica Group S.p.A. (the Issuer) proposes to issue [DESCRIPTION OF ISSUE] (the Notes) under the €2,000,000,000 Euro Medium Term Note Programme established by it.  The Notes will be unconditionally and irrevocably guaranteed by Luxottica U.S. Holdings Corp. and Luxottica S.r.l. (each a Guarantor and together, the Guarantors). The terms of the issue shall be as set out in the form of Final Terms attached to this Agreement as Annex 1.

 

This Agreement is supplemental to the Programme Agreement (the Programme Agreement) dated 10 May 2013 made between the Issuer, the Guarantors and the Dealers party thereto.  All terms with initial capitals used herein without definition have the meanings given to them in the Programme Agreement.

 

We wish to record the arrangements agreed between us in relation to the issue of the Notes:

 

1.                                    This Agreement appoints each Manager which is not a party to the Programme Agreement (each a New Dealer) as a New Dealer in accordance with the provisions of clause 11 of the Programme Agreement for the purposes of the issue of the Notes.  Each Manager confirms that it is in receipt of the documents referenced below:

 

(a)                               a copy of the Programme Agreement; and

 

(b)                            a copy of such of the documents delivered under Appendix 1 of the Programme Agreement as it has requested.

 

For the purposes of the Programme Agreement the details of the Lead Manager for service of notices are as follows:

 

[insert name, address, telephone, facsimile, and attention].

 

39

 

In consideration of the Issuer appointing each New Dealer as a Dealer in respect of the Notes under the Programme Agreement, each New Dealer hereby undertakes, for the benefit of the Issuer, the Guarantors, the Lead Manager (for itself and each of the other Dealers) and the Managers, that, in relation to the issue of the Notes, it will perform and comply with all the duties and obligations expressed to be assumed by a Dealer under the Programme Agreement, a copy of which it acknowledges it has received from the Lead Manager.  The Issuer and the Guarantors each confirms that each New Dealer shall be vested with all authority, rights, powers, duties and obligations of a Dealer in relation to the issue of the Notes as if originally named as a Dealer under the Programme Agreement provided that following the Issue Date of the Notes each New Dealer shall have no further such authority, rights, powers, duties or obligations except for any which have accrued or been incurred prior to, or in connection with, the issue of the Notes.

 

2.                                    Subject to the terms and conditions of the Programme Agreement and this Agreement the Issuer agrees to issue the Notes and the Managers jointly and severally agree to subscribe or procure subscribers for the Notes at a price of [specify] per cent. of the principal amount of the Notes (the Purchase Price), being the issue price of [specify] per cent. less [a selling [commission/concession] of [specify] per cent. of such principal amount and a combined management and underwriting commission of [specify] per cent. of such principal amount].

 

3.                                    The settlement procedures set out in Part 2 of Annex 1 to the Procedures Memorandum shall apply as if set out in this Agreement provided that, for the purposes of this Agreement:

 

(a)                               the sum payable on the Issue Date shall represent the Purchase Price [less any amount payable in respect of Managers’ expenses as provided in the agreement referred to in clause 4 of this Agreement/specify];

 

(b)                              Issue Date means [specify] a.m. ([specify] time) on [specify] or such other time and/or date as the Issuer and the Lead Manager on behalf of the Managers may agree; and

 

(c)                               Payment Instruction Date means the Issue Date unless there is to be a pre-closing for the issue in which case it means the business day (being a day on which banks and foreign exchange markets are open for general business in London and Milan) prior to the Issue Date.

 

4.                                    [The arrangements in relation to expenses have been separately agreed between the Issuer, the Guarantors and the Lead Manager.]

 

5.                                    The obligation of the Managers to purchase the Notes is conditional upon:

 

(a)                               the conditions set out in subclause 3.2 (other than that set out in subclause 3.2(f)) of the Programme Agreement being satisfied as of the Payment Instruction Date (on the basis that the references therein to relevant Dealer shall be construed as references to the Lead Manager) and without prejudice to the aforesaid, the Base Prospectus dated [specify][, as supplemented by [       ],] containing all material information relating to the assets and liabilities, financial position and profits and losses of the Issuer and the Guarantors and nothing having happened or being expected to happen which would require the Base Prospectus[, as so supplemented,] to be [further] supplemented or updated; and

 

(b)                              the delivery to the Lead Manager on the Payment Instruction Date of:

 

(i)                                  legal opinions addressed to the Managers and the Trustee dated the Payment Instruction Date in such form and with such contents as the Lead Manager, on behalf of the Managers, may reasonably require from Clifford Chance Studio Legale Associato, the legal advisers to the Issuer and Luxottica S.r.l. as to Italian law, from

 

40

 

Winston & Strawn LLP, the legal advisers to Luxottica U.S. Holdings Corp. as to U.S. law and from Allen & Overy LLP, the legal advisers to the Managers as to English and Italian law;

 

(ii)                              a certificate dated the Payment Instruction Date signed by a duly authorised officer of the Issuer and a certificate dated the Payment Instruction Date signed by a duly authorised officer of the Guarantors giving confirmation to the effect stated in subclause 5(a);

 

(iii)                       comfort letters dated the date of this Agreement and the Payment Instruction Date from the independent auditors of each of the Issuer and the Guarantors, in such form and with such content as the Managers may reasonably request; and

 

(iv)                          [such other conditions precedent as the Lead Manager may reasonably require].

 

If any of the foregoing conditions is not satisfied on or before the Payment Instruction Date, this Agreement shall terminate on that date and the parties to this Agreement shall be under no further liability arising out of this Agreement (except for any liability of the Issuer or, failing the Issuer, the Guarantors in relation to expenses as provided in the agreement referred to in clause 4 and except for any liability arising before or in relation to termination), provided that the Lead Manager, on behalf of the Managers, may in its discretion waive any of the aforesaid conditions (other than the condition precedent contained in subclause 3.2(c) of the Programme Agreement) or any part of them.

 

6.                                    The Lead Manager, on behalf of the Managers, may, by notice to the Issuer and the Guarantors, terminate this Agreement at any time prior to payment of the net purchase money to the Issuer if in the opinion of the Lead Manager there shall have been such a change, whether or not foreseeable at the date of this Agreement, in national or international financial, political or economic conditions or currency exchange rates or exchange controls as would in its view be likely to prejudice materially the success of the offering and distribution of the Notes or dealings in the Notes in the secondary market and, upon notice being given, the parties to this Agreement shall (except for any liability of the Issuer or, failing the Issuer, the Guarantors in relation to expenses as provided in the agreement referred to in clause 4 of this Agreement and except for any liability arising before or in relation to termination) be released and discharged from their respective obligations under this Agreement.

 

[Consider whether Clause [No Fiduciary Duties] of the Programme Agreement requires adaptation for the particular issue, and set out amendment here, if so.]

 

[Include any additional selling restrictions.]

 

A person who is not a party to this Agreement has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this Agreement, but this does not affect any right or remedy of a third party which exists or is available apart from that Act.

 

7.                                    Clause 21 (Governing Law and Submission to Jurisdiction) of the Programme Agreement shall also apply to this Agreement as if expressly incorporated herein.

 

8.                                    This Agreement may be executed in any number of counterparts, and this has the same effect as if the signatures on the counterparts were on a single copy of this Agreement.

 

Please confirm that this letter correctly sets out the arrangements agreed between us.

 

Yours faithfully,

 

For:                       Luxottica Group S.p.A.

 

41

 

	
By:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
For:
    	
Luxottica U.S. Holdings Corp.
    	
For: Luxottica S.r.l.
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
By:
    	
 
    

 

 

 

We confirm that this letter correctly sets out the arrangements agreed between us.

 

	
For:
    	
[NAMES OF MANAGERS]
    	
 
    	
 
    

 

By:

 

42

 

ANNEX 1

 

TO THE SUBSCRIPTION AGREEMENT

 

[Form of Final Terms]

 

43

 

SIGNATORIES

 

The Issuer

 

Luxottica Group S.p.A.

 

By: /s/ Marco Bigatti

 

 

 

The Guarantors

 

Luxottica U.S. Holdings Corp.

 

By: /s/ Marco Bigatti

 

 

 

Luxottica S.r.l.

 

By: /s/ Marco Bigatti

 

 

 

The Dealers

 

Banca IMI S.p.A.

 

BNP Paribas

 

Citigroup Global Markets Limited

 

Crédit Agricole Corporate and Investment Bank

 

J.P.Morgan Securities plc

 

Mediobanca – Banca di Credito Finanziario S.p.A.

 

Merrill Lynch International

 

The Royal Bank of Scotland plc

 

UniCredit Bank AG

 

By: /s/ Pablo D’Inca

 

 

 

Deutsche Bank AG, London Branch

 

	
By: /s/ Susanne Harutunian
    	
/s/ Stephanie Lincoln
    

 

44

 

By:

 

45

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