ORGANISATION, MANAGEMENT AND CONTROL MODEL by B&B … · 2019-07-05 · Organisation, Management...

Organisation,ManagementandControlModelpursuanttoLegislativeDecree231/2001

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ORGANISATION,MANAGEMENTANDCONTROLMODEL

byB&BITALIAS.P.A.

pursuantto

LegislativeDecree231June8th,2001

REV DESCRIPTIONOFREVIEWS APPROVED

0 FIRSTISSUE ApprovedbytheBoardofDirectorsofB&B,July3rd,2013

1 FIRSTREVIEW ApprovalbytheBoardofDirectorsofB&B,October24th,2018

PROPERTYOFTHISDOCUMENTISONB&BITALIAS.P.A.THEREPRODUCTIONOFTHISDOCUMENT,INWHOLEORINPART,WITHOUTSPECIFICWRITTENCONSENTISFORBIDDEN


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SUMMARY

GLOSSARY.......................................................................................................................................................................4

RECITALS.........................................................................................................................................................................8

1. GENERALPRINCIPLES..........................................................................................................................................8

2. MODELPURPOSES..............................................................................................................................................8

3. MODELSTRUCTURE............................................................................................................................................9

4. ADDRESSEESOFTHEMODEL..............................................................................................................................9

GENERALPART.............................................................................................................................................................11

1. SECTIONONE-LEGISLATIVEDECREENO231DATEDJUNE8TH2001..................................................................111.1. ADMINISTRATIVERESPONSIBILITYOFTHEENTITIES..................................................................................11

LEGALSYSTEMGOVERNINGTHEADMINISTRATIVELIABILITYOFLEGALPERSONS..................................................11THEOFFENCESTHATDETERMINETHEADMINISTRATIVELIABILITYOFTHEENTITY................................................14PENALTIESAPPLICABLETOTHEENTITY....................................................................................................................15EXEMPTIONFROMLIABILITY:THEORGANISATION,MANAGEMENTANDCONTROLMODEL.................................16

1.2. SOURCESFORMODELCONSTRUCTION:CONFINDUSTRIAGUIDELINES.....................................................19

2. SECTIONTWO-THECONTENTOFTHEMODELOFB&BITALIAS.P.A.................................................................222.1. MODELADOPTION......................................................................................................................................22

THEACTIVITYANDTHEORGANIZATIONALSTRUCTUREOFB&B.............................................................................22MODELINSPIRINGPRINCIPLES.................................................................................................................................23MODELCONSTRUCTION...........................................................................................................................................26

2.2. SUPERVISORYBOARD.................................................................................................................................31FEATURESOFTHESUPERVISORYBOARD.................................................................................................................31IDENTIFICATIONOFTHESUPERVISORYBOARD........................................................................................................32DEFINITIONOFTHETASKSANDPOWERSOFTHESUPERVISORYBOARD................................................................35REPORTINGACTIVITYOFTHESUPERVISORYBOARD................................................................................................39

2.3. REPORTINGSYSTEMPURSUANTTOLEGISLATIVEDECREE231/2001.........................................................39REQUIREMENTSTOINFORMTHESUPERVISORYBOARD.........................................................................................40CHANNELSFORREPORTINGANDGUARANTEEINGCONFIDENTIALITYFORTHEWHISTLEBLOWER........................42PROTECTIONOFTHEWHISTLEBLOWER...................................................................................................................43

2.4. DISCIPLINARYSYSTEMFORMODELBREACH..............................................................................................44FUNCTIONSOFTHEDISCIPLINARYSYSTEM..............................................................................................................44ADDRESSEESOFTHEDISCIPLINARYSYSTEM............................................................................................................45PENALTIES45


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2.5. MODELDISSEMINATION.............................................................................................................................532.6. MODELUPDATING......................................................................................................................................54


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GLOSSARYInthisdocument,thefollowingdefinitionsshallapply:

- B&BItaliaortheCompany:B&BItaliaS.p.A.withregisteredofficeinNovedrate(CO)ItalyStradaProvinciale32,taxnumberIT07122350965.

- CCNL:NationalCollectiveBargainingAgreementforWoodandFurnitureConfindustria,forworkers,clerksandmiddlemanagersandNationalCollectiveBargainingAgreementforIndustrialExecutives.

- BoardofDirectors:BoardofDirectorsofB&BItaliaS.P.A.

- CodeofEthicsortheCode:Documentrepresentingthesetofvalues,principles,conduct

thatinspiretheoperationsoftheCompany.

- Decree or LegislativeDecree 231/2001: LegislativeDecree no. 231 dated june 8th 2001,containing"Regulationsgoverningtheadministrative liabilityof legalpersons,companiesand associations, including without legal personality, according to art. 11, Law no. 300datedSeptember29th2000"amendmentsandadditionsthereof.

- Addressees:subjectsbetterdefinedinparagraph4oftheIntroductiontothisdocument.

- Entities: entities with legal personality, companies and associations, including those

without legalpersonality,with theexceptionof theState, localpublicentitis,othernon-economicpublicentitisandentitiscarryingoutfunctionsofconstitutionalimportance.

- ModelorOrganizationalModel:theModelofOrganization,ManagementandControlex

art.6,c.1,lettera),ofLegislativeDecree231/2001adoptedbyB&BITALIAS.P.A.

- SupervisoryboardorSB:theboardendowedwithautonomouspowersofsupervisionandcontrol, which is entrusted by the Company with the responsibility of supervising thefunctioningandrespectoftheModel,aswellasitsupdating.

- Protocols:specificdecision-makingprotocols, incompliancewiththeprovisionsofArticle

6, paragraph 2, letter b) of Legislative Decree 231/01, containing a set of rules andprinciples of control and conduct considered suitable for governing the identified riskprofile.


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- Offences: offences for which administrative liability is envisaged pursuant to LegislativeDecree231/2001.

- FM: Function Managers, i.e. the Addressees of the Organizational Model who have

operational responsibility for each area of company activity where a potential risk foroccurrenceoftheOffenceshasbeenidentified.

- Private Parties: directors, general managers, managers responsible for preparing the

company's financial reports, statutory auditors, liquidators of a third party company orthose subject to their direction or supervision or those who, according to currentlegislation,couldbetheaddresseesofcorruptionbetweenprivatepartiespursuanttoart.2635oftheItalianCivilCode.

- Thirdparties:thirdpartiessuchas,bywayofexamplebutnotlimitedto,projectworkers,interns, temporary workers, employees of Group companies on secondment to theCompany.

- AdditionalSubjects:subjectsoutsidethecorporatestructuresuchas,bywayofexample

but not limited to, suppliers, consultants, professionals, employment agencies, servicecontractors as per artt. 4 and 20 of Legislative Decree 276/2003, subcontractors andbusiness partners as well as any other subjects the company deemed appropriate toextendtheapplicabilityoftheModelto.

ForaproperunderstandingandapplicationoftheModelandtheProtocols,inconsiderationofthenumberofreferencescontainedthereinandtheimportanceofthesubjectfortheCompany,thefollowing are the definitions of "Public Official" and "Person in charge of a public service", asdefinedbytheCriminalCode,andthedefinitionof"PublicAdministration"aspertheopinionoftheCouncilofStateno.11482/2004:

- Public Official (art. 357 of the Italian Criminal Code): "For the purposes of criminal law,public officials are those who exercise a public legislative, judicial or administrativefunction. To the same end, the administrative function governed by public law and byauthoritativeactsand characterisedby theexpressionof thedeterminationof thepublicadministrationorbyitsbeingcarriedoutbymeansofauthorisingorcertifyingpowers";

- Person in charge of a public service (art. 358 of the Italian Criminal Code): "For thepurposesofcriminallaw,personsinchargeofapublicservicearethosewho,forwhateverreason,provideapublicservice.Apublicservice isdefinedasanactivity regulated in thesameway as the civil service, but characterised by the lack of the powers typical of thelatter,andexcludingtheperformanceofsimplerequirementsoforderandtheprovisionof


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purelymaterialworkingactivity";

- Public Administration (State Council, Opinion n. 11482/2004): "The notion of publicadministration(omissis),therefore,seemstobe intendedinabroadsenseandsuchastoincludeallthesubjects,includingprivatelicenseesofpublicservices,publicenterprisesandbodiesofpubliclawaccordingtotheCommunityterminology1,operating,inrelationtothescopeofactivityconsidered,aspartofacivilservice".

Itshouldalsobenotedthattheprivatenatureofsomeentities,whichprovidepublicservicesevenafter their transformation into joint-stock companies (e.g. Poste Italiane, ENEL, Ferrovie delloStato, ENI, etc.), does not rule out the possibility to keep pursuing public aims and that suchactivitiesarestillgovernedbypublic lawregulations (insuchcases, thosewhooperate in theseentities,suchasemployees,maybequalifiedasPublicOfficialsorasPersonsinChargeofPublicService)2.

Eventually,withregardtothepersonsactiveinoraffectedbytheinternationalunlawfulconductprovidedforbyLegislativeDecree231/01,theLawhasexpresslydefinedthelistofpersonsbeingpartof internationalentities3, includingpersonswhoseactivity isattributabletothatofapublicofficialandpublicserviceappointee.Finally, itshouldbenotedthat,followingtheapprovalofLawno.190datedNovember6th2012("Provisions for the prevention and repression of corruption and illegality in the Public

1Thefollowingisalistofelementsindicatinga"boardgovernedbypubliclawasinterpretedbyCommunitycase-law":

- anentitywithlegalpersonalityorganisedalsoincorporateform;- subjecttosupervisionandcontrolbytheStateormorethanhalfofthemembersoftheadministrativeandsupervisorybodiesdesignatedbytheStateorlocal

authoritiesorpredominantlyfinancedbytheStateorpublicbodies;- activities carried out in the absence of economic criteria (economic risk borne by the State), pursuit of objectives of general interest, neither industrial nor

commercial.2Theycanthereforebeconsideredas"publicentities",bywayofexampleandnotlimitedto:

- StateAdministrations(Government,Parliament,Ministries,ordinaryandaccountingMagistracy,consulatesandembassies,etc.)- Territorialpublicauthorities(Regions,Provinces,Municipalities,...)- UniversitiesandSchools;- ASLandHospitals- InlandRevenueandsocialsecurityagencies(INPS,INAIL,etc...)- ChambersofCommerce- Independentsupervisoryauthorities(Consob,BankofItaly,ISVAP,AVCP,Guarantorfortheprotectionofpersonaldata,Guarantorforcompetitionandthe

market,etc...)- Othernon-territorialpublicbodies(CNR,AGEA,etc...)- Employeesofprivateentitiespursuingpublicobjectives(PosteItaliane,ENEL,FerroviedelloStato,ENI,etc...)

3PursuanttotheprovisionsofArticle322-bis("Embezzlement,bribery,corruptionandincitementtocorruptionofmembersofthebodiesoftheEuropeanCommunitiesandofficialsoftheEuropeanCommunitiesandforeignstates")ofthePenalCode,thefollowingpersons:

- members of the Commission of the European Communities, the European Parliament, the Court of Justice and the Court of Auditors of the EuropeanCommunities;

- officialsandotherservantsemployedundercontractundertheStaffRegulationsofOfficialsoftheEuropeanCommunitiesortheConditionsofEmploymentofOtherServantsoftheEuropeanCommunities;

- persons secondedby theMemberStatesorbyanypublicorprivatebodyof theEuropeanCommunitiesexercising functions corresponding to thoseofofficialsorotherservantsoftheEuropeanCommunities;

- andtothoseworkingforbodiessetuponthebasisoftheTreatiesestablishingtheEuropeanCommunities;- thosewho,withintheframeworkofotherMemberStatesoftheEuropeanUnion,performfunctionsoractivitiescorrespondingtothoseofpublicofficials

andpersonsresponsibleforapublicservice;- personscarryingoutfunctionsoractivitiescorrespondingtothoseofpublicofficialsandpersonsinchargeofapublicservicewithinotherforeignStatesor

internationalpublicorganisations,iftheactiscommittedininternationaleconomictransactions.ForthepurposesofLegislativeDecree231/01,"internationaleconomictransactions"areconsideredtobealltransactionstypicalofinternationaltrade,suchas:exports,tenders, investments, etc.; the corruption that canbeprosecutedmay involve the interventionof public officials, for example in relation to the issueof permits orauthorisations,obtainingtaxbenefitsandthelike.


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Administration"), the list of offences for which administrative liability is envisaged pursuant toLegislative Decree no. 231/01 includes the offence of "bribery among private individuals" (art.2635oftheItalianCivilCode)andwithLegislativeDecreeno.38/2017theoffenceof"incitementtobriberyamongprivate individuals" (art.2635-bisofthe ItalianCivilCode).TheModelandtheProtocols therefore serve the purpose of preventing corruption, not only against the PublicAdministrationbutalsoagainstPrivateParties,whichmight includetheaforementionedtypeofcrimeandwhich,ifcommittedintheinterestorforthebenefitoftheCompany,couldleadtotheapplicationofpenalties.


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RECITALS1. GENERALPRINCIPLES

B&B, as part of the broader corporate policy, responsive to the need of ensuring conditions offairness and transparency in the conduct of business and corporate activities, to protect theCompanyandshareholdersthereof,hasdeemeditappropriatetoanalyzeandstrengthenall theinstruments of control and corporate governance already adopted, implementing and regularlyupdating the organization, management and control Model, provided for by Legislative Decree231/2001.

On July 3rd, 2013, the Board of Directors of B&B adopted the first version of its Model. Inconsideration of the subsequent interventions of the Law aimed at extending the scope ofapplication of Legislative Decree 231/2001 and of new case-law guidelines consolidated in themeantime, the Company has started a project to update theModel by adopting this version -which,although representing itsevolution, fully replaces thepreviousone -by resolutionof theBoardofDirectorsdatedOctober24th2018.

2. MODELPURPOSES

WiththeadoptionofthisModel,B&Baimstopursuethefollowingmaingoals:

• to confirm that any unlawful conduct is absolutely condemned by the Company, even ifinspiredbyamisconceivedsocialinterestandevenifB&Bwasapparentlynotinapositiontobenefitfromit;

• todetermineinallthosewhooperateinthenameandonbehalfofB&Band,inparticular,in the areas identified as "at risk" of committing the relevant crimes pursuant to theDecree,theawarenessoftherequirementtocomplywiththeprovisionscontainedthereinandmoregenerallywithcompanyregulations;

• to inform the Addressees that the breach of the provisions of the Model represents aconduct subject to specific penalties and that in the event of a relevant offence beingcommitted pursuant to the Decree, to the criminal penalties applicable to them in theirpersonal capacity, the administrative liability of the Company could be determined,withtheconsequentapplicationoftherelevantpenaltiestothesame;

• thankstoaclosecontrolandmonitoringofriskareasandsensitiveactivitieswithrespecttothe potential commission of crimes relevant for the purposes of the Decree and theimplementationofspecifictools,toallowtheCompanytopromptlypreventorcounteractthecommissionofthesamecrimes.


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3. MODELSTRUCTURE

Thisdocumentconsistsofageneralpartandaspecialpart.

ThegeneralpartdescribesthecontentsoftheDecree,referringtothetypesofoffencethatresultintheadministrativeliabilityofanentity,thepossiblepenaltiesandtheconditionsforexemptionfrom liability (Section One), as well as the organisational structure of the Company and theactivitiescarriedoutfortheconstruction,disseminationandupdatingoftheModel(SectionTwo).

TheSpecialSectioncontainstheprotocols,i.e.asetofrulesandprinciplesofcontrolandconductconsideredsuitableforgoverningtheareasforwhichariskofpotentialcommissionoftheoffencesunderlyingadministrativeliabilitypursuanttoLegislativeDecree231/2001hasbeenidentified.

TherulescontainedintheModelareintegratedwiththoseoftheCodeofEthics,eventhoughtheformer has a different objective than the latter, for the purposes it intends to pursue inimplementingtheprovisionsoftheDecree.Itisspecified,infact,that:

• the Code of Ethics is autonomously adopted and subject to general application by theCompanyinordertospecifytheprinciplesof"businessethics"thatB&Brecognizesasitsown;

• theModelcomplieswithspecificprovisionscontainedintheDecree,aimedatpreventingthecommissionofcrimesthatmayentailtheattributionofadministrativeresponsibilitytotheCompany.

4. ADDRESSEESOFTHEMODEL

TherulescontainedintheModelapplytoallcompanyrepresentativesinvolved,evendefacto,inB&Bactivitiesconsideredatriskforthepurposesoftheaforementionedlegislation.

Inparticular,theModelappliestothefollowingaddressees(hereinafter"Addressees"):

• allmembersofthecorporateboards(BoardofDirectorsandBoardofStatutoryAuditors);

• managers (i.e. those who are so classified under the applicable national collectivebargainingagreement);

• employees(i.e.workerswithanemploymentcontract,includingafixed-termcontract);

• ThirdParties.

ThirdpartiesmustbeboundtocomplywiththeprovisionsofLegislativeDecree231/2001andtheethicalandbehaviouralprinciplesadoptedbyB&BthroughtheCodeofEthicsbysigningspecificcontractual clauses, which allow the Company, in the event of non-compliance, to unilaterallyterminate the contracts entered into and to request compensation for any damages suffered(includingthepossibleapplicationofpenaltiesundertheDecree).


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TheCompanymay from time to time assess the opportunity to bind theAdditional Subjects, inaddition to compliancewith theethical andbehavioural principles adoptedbyB&B through theCode of Ethics, also to the provisions of Legislative Decree 231/2001 and adopted in itsModelthroughthesigningofspecialcontractualclauses,whichallowtheCompany,intheeventofnon-compliance,tounilaterallyterminatethecontractsenteredintoandtorequestcompensationforanydamagessuffered(includingthepossibleapplicationofpenaltiesundertheDecree).


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GENERALPART 1. SECTIONONE-LEGISLATIVEDECREENO231DATEDJUNE8TH2001

1.1. ADMINISTRATIVERESPONSIBILITYOFTHEENTITIES

LEGALSYSTEMGOVERNINGTHEADMINISTRATIVELIABILITYOFLEGALPERSONS

LegislativeDecreeno.231datedjune8th2001,inpartialimplementationofthelawno.300datedSeptember29th2000,regulates-introducingitforthefirsttimeinthenationallegalsystem-theadministrativeliabilityoflegalpersons,companiesandassociations,includingthosewithoutlegalpersonality.

Inparticular,thelaw300/2000,whichratifies,interalia,theConventiononthefinancialprotectionoftheEuropeanCommunitiesdatedJuly26th1995,theEUConventiondatedMay26th1997onthefightagainstcorruptionandtheOECDConventionof17December1997toopposeagainstbriberyof foreignpublicofficials in internationaleconomictransactions,complieswiththerequirementsset forth by such international and, in particular, EU laws, which provide for liabilities of legalpersonsandacorrespondingpenaltiessystemagainstcorporatecrimes.

Legislative Decree 231/2001 is therefore part of a system of implementation of internationalrequirements and - in line with the regulatory systems of many European countries - sets theresponsibility of societas, considered "as an independent centre of interests and legal ratios, areferencepoint fordifferent typesofprovisions,anda sourceofdecisionsandactivitiesof thosewhooperateinthename,onbehalforinanycaseintheinterestoftheentity.

The establishment of an administrative responsibility of the Entities, stems from the empiricalconsiderationthattheillegalconductwithintheorganizations,areanexpressionconveyingnotsomuchthemisconductoftheindividualbutratherthatoftheeconomiccentreofinterestwheretheindividual tookthe initiative,oftenasaresultofdecisionsat thetop-managementthereof.Suchcriminal behaviours can therefore be effectively prevented by penalizing the Entity as the realbeneficiaryoftheoffence.

WithregardtotherealnatureofliabilityunderLegislativeDecree231/2001,itseemstocombinebothadministrativeandcriminalliability.TheministerialreporttotheDecreehighlightsassuchaformof liability isa consequenceofa crimeand therefore linked to thecriminalproceedings, isactually different from the standard layout of administrative tort and stands as an autonomoustypeofliability"whichcombinestheessentialfeaturesofbothcriminalandadministrativesystemtrying to reconcile the reasons for preventive effectivenesswith those, evenmore inevitable, formaximumguarantee.


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In particular, Legislative Decree 231/2001 provides forwide penalty penalty system thatmovesfrompecuniarypenaltiesuptotheheaviestdisqualificationpenalties,includingthepenaltyoftheprohibitionfromcarryingouttheactivity.

TheadministrativepenaltiesprovidedforbytheDecreecaninfactonlybeappliedbythecriminalcourt,inthecontextofthecriminaltrial,onlyifallfactualandspecificrequirementssetbythelawaremet:thecommissionofacrimeintheinterestortotheadvantageoftheEntity,byqualifiedsubjects(top-managementoremployees).

TheadministrativeresponsibilityofanEntityresultsasfollows:

• commissionofanOffenceinitsinterest,i.e.whenevertheunlawfulconductiscarriedoutwiththesoleintentionofbenefitingtheEntity;

• the Entity derives from the illegal conduct some indirectadvantages (economic or not),eventhoughtheauthoroftheOffenceactedwithouttheexclusivepurposeofbringingabenefittotheEntity.

Onthecontrary,theexclusiveadvantageoftheagent(orathirdpartywithrespecttotheentity)excludestheliabilityoftheEntity,placingitinapositionofcompleteandclearnon-involvementinthecommissionoftheoffence.

With regard to the subjects, the Law, in art. 5 of Legislative Decree 231/2001, provides for theliabilityoftheEntityifthecrimeiscommitted:

a) "bypersonswhoholdpositionsofrepresentation,administrationormanagementoftheentityoroneofitsorganisationalunitswithfinancialandfunctionalautonomy,aswellasbypersonswho exercise, even de facto, the management and control of the same" (so-called topmanagement);

b) "bypersonssubjecttothedirectionorsupervisionofoneofthepersonsreferredtoinpoint(a)".(so-calledsubordinates).

For the purposes of assessing the Entity's liability, in addition to the existence of theaforementionedrequirementsthatallowthecrimetobeobjectivelylinkedtotheEntity,theLawalso imposes the assessment of the Entity's liability. Such a subjective requirement is identifiedwithafaultonthepartoftheorganisation,understoodasabreachofrulesself-imposedbytheorganisationitselftopreventspecificoffences.

The liability of Entities also extends to Offences committed abroad, provided the same are notprosecutedbytheStatewheretheoffencehasbeencommitted,giventhatparticularconditionsprovidedforbyLegislativeDecree231/2001aremet.Such an increased global focus on economicmarketsmakes it far from secondary to verify theextra-territorialnatureofthepenaltiesimposedtomonitortherulesgoverningbusinessactivitiesingeneralandthosecontainedinLegislativeDecree231/2001.


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Legislative Decree 231/2001, in fact, contains a provision (art. 4 of the Decree), inspired by amoderateprincipleofuniversalityofjurisdiction,accordingtowhichadministrativeliabilitycanbeapplied toanEntitywithheadquarters in Italy for thecommissionofoneof theallegedcrimes,provided for in the 231 list of crimes, even when entirely perpetrated abroad. In particular,paragraph1ofart.4mentionedabovedefinestheadministrativeliabilityoftheEntityinallcaseswhere,fortheallegedcrimecommittedabroad,thenaturalpersonwhocommitteditpursuanttoarticles7,8,9and10oftheItalianCriminalCodemustalsobepunished.In order for the Italian court to exercise its jurisdiction and apply the administrative penaltiesprovidedfor intheDecreeagainsttheEntity, intheeventofcommittinganoffenceabroad,thefollowingspecificconditionsarerequired:

1. theoffencemustbecommittedabroad(andperpetratedentirelyabroad)bythequalifiedperson("top-management"or"subordinate");

2. theEntitymusthaveitsheadofficeinItaly(Articles2196and2197oftheItalianCivilCode);

3. oneoftheconditionssetoutinArticles74,85,96and10oftheCriminalCodeismet7;

4. the State whre the offence was committed is not going to take legal action against theEntity;

4PursuanttoArticle7oftheCriminalCode(Offencescommittedabroad):

1. AcitizenoraforeignerwhocommitsanyofthefollowingoffencesinaforeigncountryispunishableunderItalianlaw:1. crimesagainstthepersonalityoftheItalianState;2. theoffencesofcounterfeitingtheStatesealandofusingthatcounterfeitseal;3. crimesofforgeryofcoinshavingthestatusoflegaltenderintheterritoryoftheState,orofrevenuestampsorofItalianpubliccreditcards;4. crimescommittedbypublicofficialsintheserviceoftheState,abusingtheirpowersorviolatingthedutiesinherentintheirfunctions;5. anyotheroffenceforwhichspecialprovisionsoflaworinternationalconventionsestablishtheapplicabilityofItaliancriminallaw

5PursuanttoArticle8oftheCriminalCode(Politicalcrimecommittedabroad):

1. AcitizenoraforeignerwhocommitsapoliticalcrimeinaforeigncountrythatisnotincludedamongthoseindicatedinArticle1(1)aboveshallbepunishedunderItalianlawattherequestoftheMinisterofJustice.

2. Iftheoffenceispunishableonthebasisofacomplaintbytheinjuredparty,thecomplaintmustalsobefiledinadditiontothisrequest.3. Forthepurposesofcriminallaw,apoliticalcrimeisanycrimethatoffendsapoliticalinterestoftheState,i.e.apoliticalrightofthecitizen.Acommoncrime

isalsoconsideredapoliticalcrimeifitisdetermined,inwholeorinpart,bypoliticalmotives.6PursuanttoArticle9oftheCriminalCode(Commoncrimeofthecitizenabroad):

1. Acitizenwho,outside thecases indicated in the twopreviousarticles,commitsanoffence in foreign territory forwhich Italian lawestablishes thedeathpenaltyorlifeimprisonment,orimprisonmentforaminimumofthreeyears,shallbepunishedaccordingtothesamelaw,providedthatheisintheterritoryoftheState.

2. In the caseofa crime forwhicha shorter sentence restrictingpersonal freedomhasbeen imposed, theoffender shall bepunishedat the requestof theMinisterofJusticeorattherequestoronthecomplaintoftheinjuredparty.

3. Inthecasesprovidedforbytheprecedingprovisions,iftheoffenceiscommittedagainsttheEuropeanCommunities,aforeignStateoraforeigner,theguiltyparty is punished at the request of theMinister of Justice, provided that the extradition of himhas not been granted, or has not been accepted by theGovernmentoftheStateinwhichhecommittedtheoffence.

7PursuanttoArticle10oftheCriminalCode(Commoncrimeofaforeignerabroad):

1. Aforeignerwho,withtheexceptionofthecasesindicatedinArticles7and8,commitsacrimeinforeignterritory,tothedetrimentoftheStateoracitizen,forwhichItalianlawestablishesthedeathpenaltyorlifeimprisonment,orimprisonmentforaminimumperiodofatleastoneyear,ispunishableunderthesamelaw,providedthatheisintheterritoryoftheState,andthereisarequestfromtheMinisterofJustice,orapetitionorcomplaintfromtheinjuredparty.

2. IfthecrimeiscommittedagainsttheEuropeanCommunities,aforeignStateoraforeigner,theguiltypartyispunishedunderItalianlaw,attherequestoftheMinisterofJustice,providedthat:

1. isintheterritoryofthestate;2. theoffenceisanoffenceforwhichthedeathpenaltyisestablishedorlifeimprisonment,orimprisonmentofatleastthreeyears;3. hisextraditionhasnotbeengranted,orhasnotbeenaccepted,bytheGovernmentoftheStateinwhichhecommittedtheoffence,orbythe

GovernmentoftheStatetowhichhebelongs.


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5. in cases where the law provides that the guilty party is punished at the request of theMinister of Justice, proceedings are brought against the Entity only if the request is alsomadeagainstthelatter.

THEOFFENCESTHATDETERMINETHEADMINISTRATIVELIABILITYOFTHEENTITY

Theoffences thatmay give rise to theCompany administrative liability areonly thoseexpresslyindicatedbytheLawintheDecree,which,atthetimeofits issue,coveredonlyspecificoffencesagainst thePublicAdministration. The Law, also in applicationof subsequent EUdirectives, has,over the years, significantly expanded the list of crimes subject to the application of LegislativeDecree231/2001,whichnowincludes,inparticular:

• OffencesagainstthePublicAdministrationandagainsttheassetsthereof(Artt.24and25);

• Computercrimesandunlawfuldataprocessing(Art.24-bis8);

• Organisedcrimeoffences(Art.24-ter);

• Offences relating to forgery of money, public credit cards, stamps and identificationinstrumentsorsigns(Art.25bis);

• Crimesagainstindustryandtrade(Art.25a(1));

• 9Corporate offences, including the offence of bribery among private individuals andincitementtobriberyamongprivateindividuals10(Art.25-ter);

• Offences committed for thepurposeof terrorismor subversionof thedemocratic order(art.25-quater);

• Practicesoffemalegenitalmutilation(Art.25-quater1);

• Crimesagainsttheindividual(Art.25d11); 8 LegislativeDecree no. 7 of 15 January 2016 led to the repeal of various crimes provided for by the Penal Code, and the amendment of other criminal offences,

expresslyreferredtoinArticle24-bisofLegislativeDecree231/2001(Computercrimesandunlawfulprocessingofdata).Amongtherepealedconduct,thereisArticle485oftheCriminalCode.(Falsehoodinprivatewriting).ThishasledtotheamendmentofArticle490oftheItalianCriminalCode.(Abolition,destructionandconcealmentofrealacts),whichnolongerappliestothecaseofprivatedeeds,aswellastoArticle491-bisoftheItalianCriminalCode.(ComputerDocuments),whichnowprovidesfortheapplicationofcriminallawprovisionsrelatingtothefalsificationofdocuments,onlywhentheyconcernpubliccomputerdocumentswithprobativeeffect.Among thepartiallymodified illegal conduct, thereareall the crimesof "damage" to information systems, aswell as information,dataor computerprograms, alsoreferredtoinart.24-bisofLegislativeDecree231/2001;inthiscase,alltheconductofdamagefoundundercriminallawhasundergoneapartialreformulationofthespecialaggravatingcircumstance,providedforinanycaseinwhichthecrimewascommitted"withviolencetothepersonorwiththreatorwithabuseofthequalityofsystemoperator". 9Lawno.69of27May2015on"Provisionsconcerningoffencesagainstthepublicadministration,mafia-typeassociationsandfalseaccounting"modifiedthetypesof

offencesreferredtoinarticles2621and2622oftheItalianCivilCodeandintroducedthenewoffencereferredtoinarticle2621-bisoftheItalianCivilCode,"Fattidiliveentità",whichisalsoincludedinthecatalogueofoffences231.10

With Lawno. 190 of 6November 2012 ("Provisions for the prevention and repression of corruption and illegality in the Public Administration"), the offence of"briberyamongprivateindividuals"(Article2635oftheItalianCivilCode),recentlyamendedbyLegislativeDecree38/2017,wasincludedinthecatalogueofoffencesforwhichadministrativeliability isenvisagedpursuanttoLegislativeDecree231/01,andwhichincludedtheoffenceof"incitementtobriberyamongprivateindividuals"(Article2635-bisoftheItalianCivilCode).11

Withlawno.199of29October2016,containing"Provisionsonthesubjectofcombatingthephenomenaofundeclaredwork,theexploitationoflabourinagricultureandtherealignmentofwages intheagriculturalsector",art.603bisofthe ItalianCriminalCodewasrecently introduced intothecatalogueofoffences231."Illegalbrokeringandlabourexploitation',whichcondemnsanyperson'1.recruitinglabourforthepurposeofexploitingitforworkwiththirdparties,takingadvantageoftheworkers'stateofneed;2.using,hiringoremployinglabour,includingthroughthebrokeringactivityreferredtoinpoint1,subjectingworkerstoconditionsofexploitationandtakingadvantageoftheirstateofneed'.


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• breachoftheregulationsontheprotectionofhealthandsafetyatwork(art.25-septies);

• Receiving, laundering andusingmoney, goodsorbenefits of illicit origin, aswell as self-moneylaundering12(art.25-octies);

• Copyrightinfringement(art.25-novies);

• Inducement not to make representation or to make misrepresentation to the judicialauthority(Article25i);

• Environmentaloffences13(Art.25j);

• Employmentofnon-EUnationalsillegallyresident(Art.25-duodecies);

• Racismandxenophobia(Art.25-terdecies);

• Cross-borderoffences(LawNo.146dated16.3.06).

PENALTIESAPPLICABLETOTHEENTITY

The penalties provided for by Legislative Decree 231/2001 for Entities as a result of thecommissionorattemptedcommissionoftheoffencesabovementioned,are:

• monetarypenaltyfromaminimumof€25,822.84uptoamaximumof€1,549,370.69(andprotectiveprecautionaryseizure);

• disqualificationpenalties(alsoapplicableasaprecautionarymeasure)ofnolessthanthreemonthsandnomorethantwoyears,which,inturn,mayconsistof:

- prohibitionfromexercisingtheactivity;

- suspensionorrevocationofauthorisationsorlicencesusefulltothecommissionoftheoffence;

- prohibitiontocontractwiththePublicAdministration;

- exclusion from subsidies, financing, contributions or aids and possible revocation ofthosealreadygranted;

- prohibitiontoadvertisegoodsorservices;

• seizureoftheproceedsoftheoffence(andprecautionarypreventiveseizure);

• publicationofthesentence(incaseofdisqualificationpenalties).

12

Theoffenceofselflaundering(Article648ter.1oftheItalianCriminalCode)wasintroducedintothecatalogueofoffences231byLawNo.186of15December2014,containing "Provisions concerning the emergence and return of capital held abroad aswell as the strengthening of the fight against tax evasion. Provisions on self-recycling'.13

Article25-undeciesofLegislativeDecree231/2001wassupplementedwithnewtypesofoffencesbyLawNo.68of22May2015on"Provisionsconcerningcrimesagainsttheenvironment".


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DisqualificationpenaltiesonlyapplytotherelevantOffencesandprovidedthatatleastoneofthefollowingconditionsismet:

• the entity has gained a significant profit from the consumption of the Offence and theOffencehasbeencommittedbypersons inaseniorpositionorbysubordinateswhen, inthe latter case, the commission of the Offence has been determined or supported byseriousorganizationaldeficiencies;

• intheeventofrepetitionoftheoffences.

Withoutprejudicetotheapplicationofpecuniarypenalties,disqualificationsdonotapplywhen,beforetheopeningofthefirst-tierhearing,thefollowingconditionsaremet:

a) the Entity has fully compensated for the damage and has eliminated the harmful ordangerousconsequencesofthecrimeorhasinanycaseeffectivelyactedinthisdirection;

b) theEntityhaseliminated theorganizationaldeficiencies thatdetermined theOffencebyadopting and implementing organizational models suitable for preventing Offences asthoseoccurred;

c) theEntityhasmadeavailabletheprofitmadeforseizurepurposes.

The Decree also provides, in the most serious cases, for the judge to order a permanentdisqualificationontheexerciseoftheactivity iftheentityhasmadeasignificantprofitfromtheoffence and has already been sentenced, at least three times in the last seven years, to atemporarydisqualifiedontheexerciseoftheactivity.

The judge may also apply to the entity, as a final measure, the penalty of the prohibition ofcontractingwiththePublicAdministrationortheprohibitionofadvertisinggoodsorservicesiftheentityhasalreadybeensentencedtothesamepenaltyatleastthreetimesinthelastsevenyears.

If theEntityoroneof itsunits ispermanentlyused for thesoleormainpurposeofallowingorfacilitating the commission of Offences, in relation towhich its responsibility is provided for, adefinitivedisqualificationfromcarryingouttheactivityisalwaysprovidedfor.

Intheeventofthecommission,intheformofanattempt,oftheoffencesindicatedinChapterIofLegislative Decree 231/2001 (artt. 24 to 25-terdecies), the pecuniary penalties (in terms ofamount)anddisqualificationpenalties (intermsoftime)arereducedbyonethirdtohalf,whilethepenaltiesareexcludedincaseswheretheEntityvoluntarilypreventstheperformanceoftheevent.

EXEMPTIONFROMLIABILITY:THEORGANISATION,MANAGEMENTANDCONTROLMODEL

Articles 6 and 7 of Legislative Decree 231/2001 expressly provide for exemption fromadministrative liability if the Entity has adopted effective organisation andmanagementmodels


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suitable for preventing Offences of the type already occurred. The appropriate organisation isthereforetheonlyinstrumentabletodenythe"fault"oftheEntityand,consequently,toexcludetheapplicationofpenaltiesagainstit.

Inparticular,liabilityisexcludediftheentityprovesthat:

a) themanagementboardhasadoptedandeffectivelyimplemented,beforetheoffencewascommitted,organisationalandmanagementmodelssuitableforpreventingoffencesofthetypealreadyoccurred;

b) the task of supervising the functioning of and compliance with the models and theirupdatinghasbeenentrustedtoaboardoftheentitywithindependentpowersofinitiativeandcontrol;

c) thepersonshavecommittedtheactbyfraudulentlycircumventingtheorganisationalandmanagementmodels;

d) therehasbeennoomissionorinadequacyofsupervisionbytheboardreferredtoinpoint(b).

The adoption of a Model, specifically tailored on the risks the Entity is exposed to, aimed atpreventing,throughtheestablishmentofrulesofconduct,thecommissionofspecificoffences,isthereforethemeasureofdiligencedefinedbytheLawandrepresents - inviewof itspreventivefunction-thefirstelementofthesystemaimedatcontrollingrisks.

Just the adoption of theModel by the executive board- which is to be identified as the boardhavingmanagementpower:theBoardofDirectors-doesnotseemtobesufficienttodeterminetheexemptionfromliabilityoftheEntity,sinceitisrathernecessaryfortheModeltobeeffective.

With regard to the effectiveness of theModel, the Law, inArticle 6, paragraph 2, of LegislativeDecree231/2001,statesthattheModelmustmeetthefollowingrequirements:

1. identifytheactivitiesrelatedtopossiblecriminaloffences(so-called"mapping"ofriskactivities);

2. provide forspecificprotocolsaimedatplanning formationand implementationof theentity'sdecisionsinrelationtotheOffencestobeprevented;

3. identifywaysofmanagingfinancialresourcessuitabletopreventthecommissionoftheOffences;

4. provideforinformationrequirementstowardstheboardresponsibleforsupervisingtheoperationofandcompliancewiththemodels.

TheeffectivenessoftheModel,ontheotherhand,islinkedtoitseffectiveimplementation,which,pursuanttoArticle7,paragraph4,ofLegislativeDecree231/2001,requires:

5. aperiodicassessmentandpossibleamendmentofthesamewhensignificantbreaches


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of the prescriptions are discovered or when changes in the organisation or in theactivitytakeplace(updatingoftheModel);

6. asystemsuitableagainstnon-compliancewiththemeasuresindicatedintheModel.

However,theadoptionofanOrganisation,ManagementandControlModelisnotmandatoryforthe Entities, but just optional, which, however, allows for exemption from liability and otherbenefitsintermsofpenaltyreduction.

Exemptionfromadministrativeliabilitywithregardtohealthandsafetyatwork

WiththeintroductionofnegligentoffencesinthescopeofapplicationoftheDecree,whichtookplacewithLaw123/2007(which,byintroducingtheart.25septies,hasprovidedforadministrativeliabilityforthecrimesofmanslaughterandseriousorveryseriousinjuriescommittedinbreachoftheregulationsonhealthandsafetyprotectionatwork),thecriterionofexemptionfromliabilityindicated in point c) - i.e. the proof that the fact was committed through the fraudulentcircumventionofthecontrolsplacedbytheEntitywithinitsorganization-preciselybecauseofthelackofwilfulnessofthedamagingevent(deathorseriousorveryseriousinjuries)cannotapply.Insuchacase,theentitywillhavetoprovethattheculpablebreachcommittedbyitsmemberhasbeenputinplacedespitetheimplementationofaneffectivesystemtomonitortheapplicationoftherules,generalandspecial,toavoidtheriskforsuchaneventtooccur.

Theessentialandunifyingelementofthevariousandpossibleformsofresponsibilityinmattersofsecurity, also for the purposes of the applicability of Art. 25 septies of Legislative Decree231/2001, is representedby the failure toadopt,within theEntity, all themeasuresof securityandpreventiontechnicallypossibleandtangiblyfeasible,inthelightofexperienceandthemostadvanced technical-scientific knowledge. Furthermore, the safety requirements of the Entitiesmust be considered not only in their static component (adoption of prevention and safetymeasures) but also in their dynamic elements,which implies theobligation to informand trainworkersontherisksintheworkingactivityandontheappropriatemeasurestoavoidorreducesuch risks.Article30of LegislativeDecree81/2008,whichexpressly refers to LegislativeDecree231/2001,provides, inparticular,fortheexclusionfromadministrativeliabilityoftheEntitythathas adopted and effectively implemented a Model that ensures a corporate system aimed atfulfillingalllegalrequirementsrelatedto:

• compliance with the technical-structural standards of the law relating to equipment,plants,workplaces,chemical,physicalandbiologicalagents;

• riskassessmentactivitiesandthearrangementofpreventionandprotectionmeasures;

• organisational activities, such as emergencies, first aid, contractmanagement, recurrentsafetymeetings,meetingofworkers'safetyrepresentatives;


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• healthsurveillanceactivities;

• informationandtrainingactivitiesforworkers;

• supervisory activitieswith reference to compliancewith procedures and instructions forsafeworkbyemployees;

• theacquisitionofdocumentsandcertificationsrequiredbylaw;

• recurrentchecksontheapplicationandeffectivenessoftheproceduresadopted.

TheModelmust provide for suitable systems to record the implementation of all the activitieslisted above and, in addition, in view of the type and size of the organisation and the type ofactivitycarriedout,arangeoffunctionsensuringthetechnicalskillsandpowersneededtoverify,assess,manageandcontrolrisk,alsowithaviewtokeepingthemeasuresadoptedup-to-datesoas to maintain the conditions of suitability over time. Finally, the aforementioned regulationrequiresthattheModelprovidesforasuitablesystemofcontrolovertheimplementationoftheModel itself, as well as a disciplinary system suitable for punishing non-compliance with themeasuresindicatedtherein.ThereviewandpossiblemodificationoftheModelmustbeadoptedwhenever relevant breaches of the rules on accident prevention and hygiene at work arediscovered,orintheeventofchangesintheorganisationandactivityinrelationtoscientificandtechnological progress. Paragraph5of the samearticle 30of LegislativeDecree81/2008 statesthatatthetimeoffirstapplication,thebusinessorganisationmodelsdefinedinaccordancewiththe UNI-INAIL guidelines for a health and safety at work management system (SGSSL) datedSeptember28th2001ortheBritishStandardOHSAS18001:2007aredeemedtocomplywiththeaboverequirements.

1.2. SOURCESFORMODELCONSTRUCTION:CONFINDUSTRIAGUIDELINES

Byspecificlegislativeprovision(art.6,paragraph3,LegislativeDecree231/2001),theorganisationand management models may be adopted on the basis of codes of conduct drawn up by theassociationsrepresentingtheEntities,communicatedtotheMinistryofJustice.

Themainlegal instrumentsusedtodefineandupdatetheModel include, inadditiontocivilandcriminalcodes,theGuidelinesdrawnupbyConfindustria.

On March 31st 2014, Confindustria issued an updated version of its "Guidelines to draw upOrganisation,Management and ControlModels pursuant to Legislative Decree 231/01", where,interalia, new indicationswith reference to risk coverage regarding theoccurrenceof themostrecentOffencesintroducedintoLegislativeDecree231havebeenimplemented.

OnJuly21st,2014,theMinistryofJusticeapprovedtheseGuidelines,consideringthattheupdateshouldberegardedas"overalladequateandsuitableforachievingthepurposesetoutinart.6oftheDecree".


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TheguidelinesofConfindustriaindicateapaththatcanbesummarizedasfollows:

• identificationoftheriskareas,aimedatverifyinginwhicharea/businesssector,prejudicialeventsenvisagedbyLegislativeDecree231/2001canbecarriedout;

• preparation of a control system capable of preventing risks through the adoption ofsuitable protocols. The most important elements of the control system devised byConfindustriaare:

- codeofethics;

- organizationalsystem;

- manualandITprocedures;

- powersofauthorisationandsignature;

- managementcontrolsystems;

- communicationtoandtrainingofstaff.

Thepartiesofthecontrolsystemmustbeinformedinaccordancewiththefollowingprinciples:

• verifiability,documentability,consistencyandappropriatenessofeachoperation;

• applicationoftheprincipleoffunctionssegregation(noonecanindependentlymanageanentireprocess);

• controldocuments;

• provisionof an adequate systemof penalties for thebreachof the rules of theCodeofEthicsandtheproceduresprovidedforbytheModel;

• identificationoftherequirementsoftheSupervisoryBoard,whichcanbesummarisedasfollows:

- autonomyandindependence;

- professionalism;

- actionpermanence;

• informationrequirementsbytheSupervisoryBoard.

TodrafttheModel,B&Bhasthereforespecificallytakenintoaccount:

• theprovisionsofLegislativeDecree231/2001,theministerialreportandMinisterialDecreeno. 201 dated June 26th 2003 containing the implementing regulation for LegislativeDecree231/2001;

• theguidelinespreparedbyConfindustria;


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• legaltheoryandcase-lawuptodate.


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2. SECTIONTWO-THECONTENTOFTHEMODELOFB&BITALIAS.P.A.

2.1. MODELADOPTION

THEACTIVITYANDTHEORGANIZATIONALSTRUCTUREOFB&B

B&B Italia was founded in 1966 thanks to the entrepreneurship and intuition of its charismaticfounderPieroAmbrogioBusnelli. It isa leadinginternationalcompanyinthefieldofupholsteredfurniture, thanks to a brilliant technological approach that introduced for the first time in thesector an industrial method for the production of high quality design furniture. Its innovativestrengthhasextendedovertheyearstootherareasofhomeandoutdoorfurnitureuptothefieldofcommunityfurniture.

Theactivitiesarecarriedoutthroughtwodivisions:thehomedivisionandthecontractdivision.

WithreferencetotheHomeDivision,"B&B Italia"and"Maxalto"arethetwobrandswithwhichtheCompanyisknownontheinternationalhomefurnishingmarketandofferacompleterangeofproductsforthelivingandsleepingareas.TheCompany'sachievementsaretheharmoniousresultof collaborations with excellent names in international design. Many contributions that cometogether to createuniquepiecesof furniture,wheredesign, research, creativity and technologyevolve together, interpreting the contemporary in different contexts from time to time, such asresidentialfurniture,outdoorfurnitureorthatforoffices/publicareas.TodayB&BItaliaboastsacollection of world-famous home furnishings that effectively represent the language of Italiandesign. The company's dynamism and creativity have allowed it to create new collections forunexploredmarket segments over time. From the collaboration with prestigious designers wasborn "B&B Italia outdoor", a collection of outdoor furniture, immediately recognized for theinnovation of design and product quality; "B&B Italia Project", a collection of chairs, tables andupholstered furnituredesigned for thecommunitymarket that turnsanew lookat furniture foroffices, restaurants, hotels and public areas. Not least "B&B Italia Object", a collection ofheterogeneousitemsforspaceswithacontemporaryspirit,inwhichthemostrigorousexpressionsof design intersect with highly decorative solutions. The international approach has led thecompany to build over time a selected network of highly professional points of sale and asignificant presenceof flagship stores in themost important cities in theworld includingMilan,London,Paris,Barcelona,Munich,NewYork,Tokyo.

TheContractdivisionofB&BItaliahasbeendealingforoverthirtyyearswith"turnkey"suppliesoffurnishings and fittings in the hospitality, retail, office and nautical sectors. Over time it hasbecomeanexceptionalpartnerfordesignersfromallovertheworldtodevelopwiththemhotels,residences, offices, theatres, shops, yachts and cruise ships. A consolidated competence thatguarantees not only products from the catalogue, but above all functional and technologicallyadvancedsolutions,exclusive furnishings,designed,conceived to interpretandsolve thespecific


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needsofthecustomerandthedesigner.Theactivitiesofdesign,production,projectmanagementandlogisticsareperfectlyintegratedtoensuretheimplementationofcomplexcontractprojects,inaccordancewiththeconstantsearchfortechnicalexcellenceanddesign.

Organisational, management and commercial activities are carried out at the B&B Italiaheadquarters in Novedrate, while production activities are carried out at the Noverdrate andMisintoplants.

TheB&BItaliaplantfallswithinthecategoryofmajor-accidenthazardsandhassentNotificationtothe relevant supervisory boards. It has implemented a Safety Management System for thepreventionofmajoraccidentrisks,inaccordancewiththeprovisionsofLegislativeDecree105/15and itsownCompanyPolicy. Inthiscontext, ithasextendedtheapplicationoftheManagementSystemtobusinessprocessesnotdirectlyconnectedwiththerisksofmajoraccidents.

WiththeentryintoforceofLegislativeDecree81/08,andinimplementationofart.30ofthesame,wantedtoextendandapplytheSafetyManagementSysteminallitscorporateheadquartersandforallprocessesunderitscontrol.

Theorganisational structureofB&B Italia is described indetail in the company's organisationalchart,whichidentifiestheAreas,Departments,Functionsandtheirmanagers.

B&B Italia ismanaged by a Board ofDirectors composed of 5 to 11memberswhohave all thepowersofordinaryandextraordinaryadministrationtoachievethecorporatepurpose,excludingonlythosethatthelawreservestotheshareholders'meeting.

TheBoardofStatutoryAuditorsappointedbytheShareholders'Meetingismadeupof5members(ofwhom3arepermanentand2aresubstitutemembers).

The Company is also subject to the control of an Auditing Firm. The decision of the Board ofDirectorsofB&BItaliatoadoptaModelispartoftheCompany'sbroaderbusinesspolicyaimedatraising awareness among all staff and the entire agency network to a transparent and fairmanagementoftheCompany,tocomplywithcurrentlegislationandthefundamentalprinciplesofbusinessethicsinthepursuitofthecorporatepurpose.

MODELINSPIRINGPRINCIPLES

ThisModelhasbeenpreparedincompliancewiththepeculiaritiesoftheCompanyactivitiesandits organizational structure as well as the specific tools already existing in B&B and aimed atplanning the formation and implementationof corporate decisions and to carry out controls oncorporateactivities,andspecificallythefollowing:

• Governancetools;

• Internalauditsystem.

Governancetools


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TheB&BModeltakesintoaccountthegovernancetoolsoftheCompanyensuringitsfunctioning,whichcanbesummarisedasfollows:

• TheMemorandumofAssociation,thebasicdocumentgoverningthesystemofcorporategovernance. It defines the purpose of the company, the registered office, the corporatepurpose,theduration,thesharecapital,aswellasthepowersandresponsibilitiesofthetopmanagement;

• the company's organisational documentation, which describes the company'sorganisational structure and work processes, the tasks and responsibilities of theorganisationalunits.Themaincorporateorganisationaldocumentsarerepresentedby:

o thesystemofpowersanddelegationsattributedtothevariouscorporatebodies;o theresolutionsoftheBoardofDirectors;o the Quality Management System consisting of the Quality Manual, procedures,

operatingpracticesandrelateddocuments,prepared inaccordancewith ISO9001standards;

o the Integrated Safety and Environment Management System prepared inaccordancewithBSOHSAS18001:2007andISO14001standards;

• and ISO internaldocumentsgoverning thestructureof responsibilitiesanddescribing thecompany'sorganisationalchart;

• theCodeofEthicsismadeupofasetofprinciplesandvaluesthatallinternalandexternalsubjects,whohaveadirectorindirectrelationshipwiththeCompany,mustrespect.

• the in-house set of procedures - consisting of procedures, operating instructions andinternalcommunicationsaimedatclearlyandeffectivelyregulatingtherelevantCompanyprocesses;

• additionaldetailtools-jobtitle,jobprofile,forms,etc..

The rules, procedures andprinciples contained in thedocumentation listed above, althoughnotreported in detail in this Model, are a valuable tool for monitoring illegal conduct in general,includingthosereferredtoinLegislativeDecree231/2001,whichispartofthebroadersystemoforganization,managementandcontrolthattheModelintendstointegrateandthatallAddresseesarerequiredtocomplywith,withregardstothetypeofrelationshipexistingwiththeCompany.

Internalauditsystem

The internalaudit systemalready inplaceand implementedbyB&B, isa structuredandorganicsystem of activities, procedures, rules of conduct, service communications and organizationalstructures aimed at continuously monitoring the risks of the Company, engaging the entirebusinessandinvolvesdifferentparties.


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ThemainobjectivesoftheCompanyinternalauditsystemaretoensurewithreasonablecertaintytheachievementofoperational,informationandcomplianceobjectives:

• the operational objective of the internal audit system concerns the effectiveness andefficiency of the Company in employing resources, protecting itself from losses andsafeguarding theCompany'sassets: in this case, the internalaudit systemaims toensurethatthroughouttheorganisationthepersonnelworktoachievetheCompany'sobjectivesandwithoutputtingotherinterestsbeforethoseoftheCompany;

• theobjectiveof information isexpressed inthepreparationof timelyandreliablereportsfor thedecision-makingprocesswithin theorganizationandalsorespondsto theneedtoensure reliable documents directed to the outside world, while respecting theconfidentialityofthecompany'sinformationassets;

• the compliance objective ensures that all transactions are conducted in accordancewithlawsandregulations,prudentialrequirementsandrelevantinternalprocedures.

The control system involves every sector of the Company's activity by distinguishing betweenoperationalandcontroltasks,reasonablyawaitinganypossibleconflictofinterest.Thefollowinggeneralprinciplesformthebasisofthiscontrolstructure:

• everyoperation,transactionoractionmustbeverifiable,documented,andconsistent;

• Nooneshouldbeabletomanageanentireprocessindependently(segregationofduties);

• the control system must be able to document the performance of controls, includingsupervision.

The controls also involve the Board of Directors and the Board of Statutory Auditors in variousroles,withinthescopeandinaccordancewiththeprovisionsofthelaws,regulationsandcodesofconduct in force. Each organisational structure is responsible for the correct functioning of theInternalauditSystemforalltheprocessesforwhichithasmanagementresponsibility.TheexistingtypeofcorporatecontrolstructureisinspiredbytheindicationsprovidedbytheCoSOReport and by the Corporate Governance Paper AIIA (Italian Association of Internal Auditors) -Integratedapproachtotheinternalauditsystem-andstructuredonthreelevels:

• a first level that defines andmanages the so-called line controls inherent in operationalprocesses: these are those procedural, IT, behavioural, administrative-accounting, etc.controlscarriedoutbothbythosewhoimplementaspecificactivity,andbythosewhoareresponsible for supervision. All company functions carry out these direct controls in themanagement of their responsibilities; they are both hierarchical and functional controls


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aimedatensuringthecorrectperformanceofoperations;

• a second level that oversees the risk assessment and control process, ensuring that it isconsistent with the company's objectives, meeting organisational segregation criteriasufficientlytoalloweffectivemonitoring;

• a third level thatguarantees the correctnessof thedesignand functioningof theoverallInternal auditSystem. This activity is carried out by the Supervisory board through themonitoringofrisksandlinecontrolsinplace.

TheexistingsystemofcorporategovernanceandcontrolcontainsvalidelementstobeabletobeusedalsoforthepreventionofthecrimescontemplatedbytheDecree.Inanycase,theBoardofDirectors,sensitivetotheneedtoensureconditionsoffairnessandtransparencyintheconductof business and corporate activities, to protect its position and image, the expectations of itsshareholders and thework of its employees, has decided to reexamine its organizational tools,managementandcontrol,inordertoverifythecorrespondenceoftheprinciplesofconductandprocedures already adopted to thepurposes of theDecree as amended in recent years,wherenecessary,adaptingtheminordertobringthemintolinewiththeaforementionedpurposes.ThisassessmentwillberepeatedinthefutureinordertosystematicallymonitorthecorrespondenceoftheaboveprincipleswiththepurposesoftheDecree.

MODELCONSTRUCTION

Thechoiceof theBoardofDirectorsofB&BtoadoptaModel ispartof theCompany'sbroaderbusinesspolicy,whichisexpressedinactionsandinitiativesaimedatraisingawarenessofallstaffbelongingtoB&B(frommanagementtoemployees)andallThirdPartiesandAdditionalSubjectstothetransparentandcorrectmanagementof theCompany, totherespectof the laws in forceandthefundamentalprinciplesofbusinessethicsinthepursuitofthecorporatepurpose.

ThereviewofthisModelbeganwithananalysisofthesystemofgovernance,theorganisationalstructureandalltheinspiringprinciplesreferredtoinparagraph1.2above,andtookintoexpressconsideration the indications given to date by the jurisprudence and the rulings, includingprovisional rulings, of the Judicial Authority, together with those expressed by the TradeAssociations(typicallyConfindustria).

The process of preparing the Model was therefore developed in different phases, based oncompliancewiththeprinciplesoftraceabilityandverifiabilityoftheactivitiescarriedout.

ThestartingpointwastheassessmentoftheriskofcommissionoftheOffencesinthecontextofcarryingoutthesensitiveactivitiesidentified.Themappingoftheseprocesseshasledtoapreciseidentification of possible conduct through which it is theoretically possible to commit theOffences.


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The internalauditsystemtomonitor the identifiedriskswasthenevaluated, theCodeofEthicsandspecificProtocolswereadopted,aimedatgoverningtheriskprofilesidentifiedfollowingthemappingofthecompany'sactivities(seeparagraph2.1.3.1.),asrequiredbyArticle6,paragraph2,letterb)ofLegislativeDecree231/01.

InaccordancewiththerequirementsofArticles6,paragraph2,lettersd)ande)oftheDecree,thefollowingstepsweretaken:

• to define the characteristics, roles and tasks of the Supervisory Board (as set out inparagraph 2.2 below), which is expressly responsible for overseeing the effectiveapplication of the Model and its constant monitoring in terms of adequacy andeffectiveness;

• tooutlineasystemofpenalties (reportedinparagraph2.3below)againstallbreachesoftheModel;

• todefinethemethodsofdisseminationoftheModelandtrainingofpersonnelthereof(asindicatedinparagraph2.4below);

• todefinethemethodsforupdatingtheModel(seeparagraph2.5below).

Riskactivitiesmapping

TheB&BModel isbasedonthe identificationofthemapofactivitiesatrisk,oractivitieswithinwhichcrimescanbecommitted,asexpresslyprovidedforinart.6,c.II,letter.a)oftheDecree.

Themappingoftheactivitiesatriskwascarriedoutbyevaluatingthespecificoperatingareasandthe organisational structure of B&B, with reference to the risks of crime that can actually beenvisaged.

Themethodologyfollowedinvolvedtheinvolvementofanintegratedworkinggroupcomposedofexternal professionals -with riskmanagement and internal audit skills, legal and criminal - andinternalresourcesoftheCompany.

Themethodsandcriteriaadoptedinthevariousphasesaresetoutbelow.

PhaseI:collectionandanalysisofallrelevantdocumentation

Documentary analysis was used to identify activities at risk: first of all, the relevant officialdocumentation available at the Company was collected in order to better understand theCompany'sactivitiesandidentifythebusinessareassubjecttoanalysis.

Bywayofexample,thefollowingdocumentshavebeenanalysed:

• corporateorganizationalchart;


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• BylawsandCompanyRegistrationReport;

• operationalregulationsandofficialprocedures;

• organisationalarrangementsandcommunications;

• proxiesandpowersofattorney;

• operatingproceduresandinstructions;

• CodeofEthics;

• annualfinancialstatements;

• otherdocuments.

AccounthasalsobeentakenofalltheeventsthathaveaffectedtheCompanywithreferencetothesensitiveareaslinkedtotheDecree.

PhaseII:riskassessment

Thepurposeofthephaseinquestionwastheprioridentificationofprocesses,sub-processesandcompanyactivitiesandthereforetheidentificationofriskareasorcompanyareasinwhichcrimesmaybecommitted.These resources were interviewed by the working group in order to construct a Model thatadheresascloselyaspossibletothespecificoperatingareasandtheorganisationalstructureofthecompany,withreferencetotherisksofoffencesthatareactuallyconceivable.Infact,theinterviews,alsoaimedatstartingtheprocessofraisingawarenessoftheprovisionsofLegislative Decree 231/2001, the activities of adapting the Company to the aforementionedDecree, the importance of compliancewith the internal rules adoptedby the Company for theprevention of crimes, were conducted with the aim of identifying the processes and activitiespotentially at risk of committing the crimes provided for in the Decree as well as the existingsafeguardstomitigatetheaforementionedrisks.All the Company's processes were mapped, divided into sub-processes and activities withevidenceoftheOrganisationalUnitsinvolvedandthespecificriskprofileofpotentialassessmentoftheoffencesinvolved.

The results of this activity were formalised in specific documents called "Risk AssessmentMatrixes",whichwerethensharedandapprovedbytheresourcesinterviewedandremainatthedisposaloftheSupervisoryBoardfortheinstitutionalactivityentrustedtoit.

It is importanttopointoutthatthemapofactivitiesatriskphotographsthesituationexistingatthedateofdraftingof thisModel.Theevolutionofbusinessactivitieswill require thenecessaryupdatingofthemapping,inordertoincludeanyrisksassociatedwithnewactivities.


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InaccordancewiththeprovisionsofArticle6,paragraph2,lettera)ofLegislativeDecree231/01,theareasofcompanyactivityidentifiedasbeingatriskarereported,orwithinwhichtherecouldbepotentialrisksofcommittingthetypesofoffencesenvisagedbytheDecree.

Inparticular,thefollowingriskareashavebeenidentified:

• Accountingmanagement,draftingoftheFinancialStatementsandoperationsonassets;

• Managementofcashandfinancialflows;

• Procurementofgoodsandservices;

• Managementofassignmentstoexternalprofessionals;

• ManagementofcontractswithcustomersoftheContractDivision;

• Managementofproductionandintellectualandindustrialpropertyrights;

• Staffrecruitment,developmentandadministration;

• Managementofcontractswithintermediariesandbusinesspartners;

• ManagementofITsystemsandICTcopyrights;

• Managementoflitigationandsettlementagreements;

• ManagementoffulfilmentsanddealingswiththePublicAdministration;

• ManagementofcontractsandbusinessdealingswithcustomersoftheHomeDivision;

• Occupationalhealthandsafetymanagement;

• Environmentalcompliancemanagement.

PhaseIII:GapAnalysis

Thepurposeofthisphasewastoidentify,foreachareaofrisk,theexistingorganisational,controlandbehaviouralcontrolsforthespecifictypesofoffencesreferredtointheDecree,toassesstheirsuitabilitytopreventtheriskshighlightedinthepreviousphaseofriskassessmentandthereforetheimprovementactionstobecarriedout.

Acomparativeanalysiswasthenmadebetweentheexistingorganisation("asis")andareferencemodel to be evaluated on the basis of the content of the Decree, the indications of the widejurisprudence and the guidelines of Confindustria ("to be"). From this comparison, the areas ofimprovementoftheexistinginternalauditsystemthatwillbeimplementedintheProtocolsandintheproceduralbodyhavebeenidentified.

Protocols


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Followingtheidentificationoftheactivitiesatriskandonthebasisoftherelevantexistingcontrolsystem,theCompanyhasdrawnupspecificProtocols,incompliancewiththeprovisionsofArticle6,paragraph2,letterb)ofLegislativeDecree231/2001,whichcontainasetofrulesandprinciplesofcontrolandconductconsideredsuitableforgoverningtheidentifiedriskprofile.

Foreachriskareanotconsideredsufficientlymannedbytheinternalproceduralbody,aProtocolhasbeencreated,inspiredbytheruleofdocumentedandverifiablereindeerinthevariousstagesof the decision-making process, so that it is possible to trace the motivation that guided thedecision.

WithineachProtocol,theyareidentified:• purposeofthedocument;• scope;• rolesinvolvedintheriskarea;• conductprinciples;• auditingprinciples;• reportingtotheSupervisoryBoard;

TheauditingprinciplesintheProtocolsreferto:

• authorisationlevels;• functionalsegregationofauthorisation,operationalandcontrolactivities;• conductprinciples;• specificcontrols;• traceabilityofthedecision-makingprocessandstorageofsupportingdocuments.

The Protocols have been submitted, for evaluation and approval, to the examination of thesubjects responsible for the management of the activities at risk, thus making official andobligatorytherulesofconductcontainedthereinwithregardtoallthosewhoarecarryingouttheactivitywithinwhichariskprofilehasbeenidentified.

ThedefinitionoftheProtocols iscompletedandintegratedwiththeCodeofEthics,towhichtheCompanyintendstoconformthemanagementofitsactivitiesalsoinrelationtotheconductthatmayconstitutethetypesofcrimegovernedbyLegislativeDecree231/2001.

EthicalprinciplesarethefoundationofthecompanycultureandrepresentthestandardsofdailybehaviourinsideandoutsideB&B.

Inparticular,theCompanyundertakesto:

• operateincompliancewiththelawandcurrentregulations;

• to base its relationswith the Public Administration on principles of ethics, transparency,correctness,legitimacyandintegrity;


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• maintainacollaborativebehaviour inrelationswithcustomers,suppliersandcontractors,characterisedbyloyaltyandavailabilityandaimedatavoidingconflictsofinterest.

Where deemed appropriate, specific internal procedures will be issued to implement theindividualprovisionsindetail.

2.2. SUPERVISORYBOARD

FEATURESOFTHESUPERVISORYBOARD

Theexemptionfromadministrative liability-asregulatedbyArticle6,paragraph1,ofLegislativeDecree231/2001 - alsoprovides for themandatoryestablishmentofa Supervisoryboardwithinthe Entity, endowedwithboth an autonomouspowerof control (which enables it to constantlymonitor the functioning of and compliance with the Model) and an autonomous power ofinitiative, to guarantee the updating of the Model itself, in order to ensure the effective andefficientimplementationoftheModel.

The characteristic of the autonomy of the powers of initiative and control of the SupervisoryBoardisrespectedif:

• the Supervisory Board is guaranteed hierarchical independence with respect to all thecorporatebodiesoverwhichitiscalledupontosupervise,ensuringthatitreportsdirectlytotheBoardofDirectors;

• its members are not directly involved in decisions or supervisory activities in respect ofwhichaconflictofinterestmaybeidentified(e.g.decisionsconcerninganareainwhichthememberhasaspecificinterestandwhichcouldinvolveamixtureofthecontrollerandthecontrolledparty).Themanagementofconflictsof interestonthepartof themembersofthe Supervisory Board, as well as the consequent requirements of abstention, arespecificallygovernedbytheinternalrulesofthatbody;

• hasfinancialautonomy.TheSB isassignedanannualbudget,establishedbyresolutionoftheBoardofDirectors,whichmustallowittocarryoutitstasksinfullautonomy.

InadditiontotheautonomyofpowersprovidedforbytheDecree,theCompanyhasalsodecidedto be consistentwith the Confindustria Guidelines and the rulings of the courts on the subject,which have also indicated the requirements of professionalism and consisntency of validity asnecessary.

Withregardtotherequirementofprofessionalism,itisnecessaryfortheSupervisoryBoardtobeendowedwithspecificlegalskills,withparticularreferencetothoseofapenalisticnature,andalsotobe able to carryout its own inspection functionswith regard to the actual applicationof the


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Modeland,at thesametime, tohavethenecessaryqualities toguaranteethedynamismof theModel itself, through proposals for updates to be addressed to the top management of thecompany.

Finally,with regard to the consistency of validity, the SBmust ensure constantmonitoring andupdating of theModel and its variation to changes in the company's reference conditions andrepresentaconstantpointofreferencefortheaddresseesoftheModel.

WithregardtothepossiblecompositionoftheSupervisoryBoard,thedoctrineandpracticehavedevelopeddifferent solutions,basedon the sizeandoperational characteristicsof theBody, therelatedrulesofcorporategovernanceandtheneedtoachievea fairbalancebetweencostsandbenefits.Therefore,itisconsideredfeasibletodefinethestructuresspecificallycreatedintheBodyand to assign the tasks of the Supervisory Board to existing bodies. Likewise, both collegial andmonosubjective structures can be chosen. Finally, in the enucleation of the members of theSupervisoryBoard,itispossibletoentrustthisqualificationtoexternalsubjects,whopossessthespecificskillsnecessaryforthebestexecutionofthetask.

Finally,pursuanttoart.6,paragraph4bisoftheDecree, introducedbyart.14,paragraph12,ofLawno.183of12November2011,injoint-stockcompaniesthefunctionofSupervisoryboardmaybe performed by the Board of Statutory Auditors, the Supervisory Board or the ManagementControlCommittee.

IDENTIFICATIONOFTHESUPERVISORYBOARD

UnlesstheEntitydecidestoentrustthetaskofSupervisoryboardtooneofthepersonsindicatedinart.6,paragraph4bisofLegislativeDecree231/2001,theconcreteestablishmentofsuchbodyislefttotheorganisationalinitiativeoftheEntity,againinfunctionoftheframeworkoutlinedbytheDecree.

In view of the above, in the present case, the Company, taking into account the extent andcomplexity of its structure and the activities that are carried out, has chosen to set up amulti-subjectivebodycomposedof threemembers,oneofwhomactsaschairman, inordertoensuregreatereffectivenessofthecontrolsdelegatedbyDecree231/2001totheSupervisoryBoard.

TheSBisappointedbyresolutionoftheBoardofDirectorsandremainsinofficeforaperiodnotexceedingthreeyears,regardlessofthedurationofthemandateoftheBoardofDirectors.EachmemberoftheSupervisoryBoardmaybere-electedattheendofeachtermofoffice.

Appointment as a member of the Supervisory Board is subject to the presence of subjectiveeligibilityrequirements,therecurrenceandpermanenceofwhichwillbeassessedannuallybytheBoardofDirectors.


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First of all, the members of the Supervisory board of B&B, for the purposes of assessing therequirementof independence, fromthe timeofappointmentand for theentiredurationof theoffice,mustnot:

• holdexecutiveordelegatedpositionsontheCompany'sBoardofDirectors;

• directly participate in decisions or supervisory activities in respect of which a conflict ofinterestcanbe identifiedonthebasisof theprovisionsof the InternalRegulationsof theSupervisoryBoard;

• tobepartofthefamilynucleusoftheexecutivedirectorsoroftheshareholderoroneofthe shareholders of the controlling group,meaningby family nucleus that constitutedbythespousenotlegallyseparated,byrelativesandrelativesbythefourthdegree.

Inaddition,theCompanyhasestablishedthatthemembersoftheSupervisoryBoardmustmeetthe requirementsofprofessionalismand integrity set forth inart.109of LegislativeDecreeno.385of1September1993.Inparticular,themembersoftheSupervisoryBoardmustnothavebeenconvictedwithasentencethatisnotyetfinal,orwithasentencefortheapplicationofthepenaltyuponrequest(issuedpursuanttoArticles444etseq.oftheCodeofCriminalProcedure)andevenifwithasuspendedsentence,exceptfortheeffectsofrehabilitation:

1. toimprisonmentforaperiodofnotlessthanoneyearforoneofthecrimesprovidedforbyRoyalDecree267of16March1942(theso-calledBankruptcyLaw);

2. on pain of imprisonment for a period of not less than one year for one of the offencesprovided for by the rules governing banking, financial, securities and insurance activitiesandbytherulesgoverningmarketsandsecuritiesandpaymentinstruments;

3. to imprisonment for a period of not less than one year for a crime against the PublicAdministration,againstthepublicfaith,againstproperty,againstthepubliceconomy,foracrimeintaxmatters;

4. foranycrimenotculpabletothepunishmentofimprisonmentforaperiodoftimenotlessthantwoyears;

5. foroneoftheoffencesprovidedforinTitleXIofBookVoftheCivilCode,asreformulatedbyLegislativeDecree61/02 (Disciplineofcriminalandadministrativeoffencesconcerningcommercialcompanies);

6. for an offencewhich amounts to and has led to the conviction of a penalty fromwhichderivestheprohibition,eventemporary,frompublicoffices,orthetemporaryprohibitionfromtheexecutiveofficesoflegalpersonsandcompanies;

7. foroneofthepreventionmeasuresprovidedforbyArticle10,paragraph3,ofLawNo.575of May 31st, 1965, as replaced by Article 3 of Law No. 55 of March 19th, 1990 andsubsequentamendments(ProvisionsagainsttheMafia);


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8. for the accessory administrative penalties provided for by art. 187-quater of LegislativeDecreeno.58/1998(TUF-ConsolidatedLawonFinance).

AnyrevocationofthemembersoftheSupervisoryBoardmayonlybemadeforreasonsconnectedwithseriousbreachesofthemandateassumed,includingbreachesofconfidentialityrequirementsandthecausesof ineligibilitymentionedabove.Bywayofexample,aprovenseriousnegligenceand/or serious inexperience in supervising the correct application of and compliance with theModel,aswellas-moregenerally-intheperformanceofone'smandate,constitutejustcauseforrevocationofthemembersoftheSupervisoryBoard.

The revocation of themandatemust, in any case, be decided by the Board of Directors of theCompanywithanactthatclearlyspecifiesthereasonsforthedecisiontaken.

ThemembersoftheSupervisoryBoardshallceasetoholdofficewhentheyarepresentaftertheirappointment:

1. inoneofthefollowingsituationsandspecifically:

a. those who find themselves in the conditions provided for by Article 2382 of theItalian Civil Code (disqualified, incapacitated, bankrupt, or those who have beensentenced to apenalty that involvesdisqualification, even temporary, frompublicofficeorincapacitytoexercisemanagerialpositions);

b. the spouse, relatives and in-laws up to the fourth degree of the directors of theCompany,thedirectors,thespouse,relativesandin-lawsuptothefourthdegreeofthedirectorsof thecompanies controlledby theCompany,of thecompanies thatcontrolitandofthosesubjecttocommoncontrol;

2. convicted,evenwithanon-definitive judgement(meaninga judgementthat includesthatpronouncedpursuanttoArticle444oftheCriminalCode)foroneoftheoffencesindicatedinnumbers1,2,3,4,5,6andtheconditionsofineligibilityindicatedabove.

They also constitute grounds for disqualification from the office of member of the SupervisoryBoard:

3. convictionwithanon-definitivesentenceforoneoftheoffencesofnumbers1to6oftheconditionsofineligibilityindicatedabove;

4. theapplicationofoneof thepenalties referred to innumbers1 to6of theconditionsofineligibilityindicatedabove;

5. theapplicationofapersonalprotectivemeasure;

6. theprovisional applicationofoneof thepreventionmeasuresprovided forbyArticle10,paragraph3,ofLawNo.575of31May1965,asreplacedbyArticle3ofLawNo.55of19March 1990 and subsequent amendments, and the accessory administrative penalties


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providedforbyArticle187-quaterofLegislativeDecreeNo.58/1998(TUF).

Finally, the following are further causes of ineligibility or disqualification formembers of the SBcomparedtothoseoutlinedabove:

7. theyhavebeensubjecttopreventivemeasuresorderedbythejudicialauthoritiespursuanttotheLawonpreventivemeasuresagainstpersonsdangeroustosafetyandpublicmorality(LawNo.1423of56)orLawNo.575of1965(provisionsagainstthemafia);

8. beinginvestigatedorconvicted,evenwithanon-definitivejudgmentorissuedpursuanttoArticles 444 et seq. of the Code of Criminal Procedure (plea bargaining) or even with aconditionallysuspendedsentence,exceptfortheeffectsofrehabilitationforoneormoreoffencesamongthosestrictlyprovidedforbyLegislativeDecree231/01.

Finally, it should be noted that the forfeiture of the office ofmember of the Supervisory Boardoperatesautomaticallyfromthemomentoftheoccurrenceofthecausethatproducedit,withoutprejudicetotheotherrequirementsdescribedbelow.

The appointment of themembers of the Supervisory board by the Board of Directors becomeseffectiveonlyaftereachmemberhasformallyacceptedtheappointmentinwriting.EachmemberoftheSupervisoryBoardmayresignfromofficeatanytime,subjecttopriornoticetobepresentedinwritingtotheBoardofDirectorsandincopytotheothermembers.

In the event of termination of office, the member of the Supervisory Board concerned mustimmediatelynotifytheBoardofDirectors inwritingandtheBoardofStatutoryAuditorsandtheother members of the Supervisory Board for information. Even in the absence of suchcommunication,eachmemberoftheSupervisoryBoardwhobecomesawareoftheexistenceofacause for revocationbyanothermembermustpromptlynotify theBoardofDirectors inwritingandtheBoardofStatutoryAuditorsforinformationsothatitcantakethenecessarymeasures.

Intheeventofresignation,incapacity,death,revocationorforfeitureofamemberoftheSB,theBoardofDirectorsshallresolvetoappointareplacementwithoutdelay.

Intheeventofresignation,incapacity,death,revocationorforfeitureoftheChairman,thelatterisreplaced by the oldest member, who remains in office until the date on which the Board ofDirectorshasresolvedtoappointthenewChairmanoftheSupervisoryBoard.

During any vacancy period due to the occurrence of one of the events outlined above, theremainingmembersoftheSupervisoryBoardremain inofficeandareresponsible forrequestingtheBoardofDirectorstoproceedpromptlywiththeappointmentofthemissingmember.

DEFINITIONOFTHETASKSANDPOWERSOFTHESUPERVISORYBOARD


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Theprovisionofart.6,paragraph1,letterb)oftheDecreeexpresslyestablishesthatthetasksoftheSupervisoryBoardaretosupervisethefunctioningofandcompliancewiththeModel,aswellastoensureitsupdating.

Inparticular,theSBwillhavetocarryoutthefollowingspecifictasks

a) supervise the functioning of theModel and the compliancewith the provisions containedthereinbytheAddressees,verifyingtheconsistencybetweentheconcretebehavioursandthedefinedModel,proposingtheadoptionofcorrectivemeasuresandtheinitiationofdisciplinaryproceedingsagainstthesubjectsconcerned.Moreprecisely,he'llhaveto:

• verifytheadequacyoftheorganisationalsolutionsadoptedfortheimplementationoftheModel (definition of standard clauses, training of directors and proxies, disciplinarymeasures,etc.),makinguseofthecompetentcompanystructures;

• activateandimplementthecontrolsystem;

• preparetheperiodicplanofchecksontheadequacyandfunctioningoftheModel;

• carry out periodic checks, as part of the approved plan, on the activities or operationsidentifiedintheareasatrisk;

• carryouttargetedchecksonspecificoperationsoronspecificandrelevantactscarriedoutbytheCompanyintheareasofrisk,aswellasonthesystemofpowersinordertoensuretheconstanteffectivenessoftheModel;

• promote periodic meetings with the Board of Statutory Auditors and the IndependentAuditorstoallowtheexchangeofinformationrelevanttothesupervisionofthefunctioningoftheModel;

• promoteappropriate initiatives for thedisseminationof knowledgeandunderstandingoftheprinciplesoftheModel;

• regulate appropriate informationmechanisms by providing for an electronicmailbox andidentifyingtheinformationthatmustbetransmittedtotheSBormadeavailabletoit;

• collect, examine, process and store relevant information regarding compliance with theModel;

• evaluatereportsofpossiblebreachesand/ornon-compliancewiththeModel;

• promptly report alleged breaches and non-compliance with the Model to the governingbody(BoardofDirectors),fortheappropriatedisciplinarymeasurestobeimposedwiththesupportofthecompetentfunctions;

• verify that the breaches of the Model are effectively punished in compliance with thesystemadoptedbyB&B.


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b) Supervise the appropriateness of updating the Model, informing the Board of Directors,where there is aneed to adapt in relation to theextensionof thenumberofOffences thatentail the application of the Decree, of evidence of serious breaches of the Decree by theAddressees, or significant changes in the internal structure of the Company and/or in themanner inwhich thebusiness activities are carriedout. In particular, the SupervisoryBoardshall:

• monitortheevolutionofthereferenceregulationsandverifytheadequacyoftheModeltothese regulatory requirements, reporting to the Board of Directors the possible areas ofintervention;

• preparesuitableactivities tokeep themappingof theareasat riskupdated,according tothemethodsandprinciplesfollowedintheadoptionofthisModel;

• supervisetheadequacyandupdatingoftheProtocolswithrespecttotheneedtopreventthe Offences and verify that each party that contributes to the Model is and remainscompliantwithandadequateforthepurposesoftheModelasidentifiedbylaw,tothisendbeingable toavail itselfof the informationandcollaborationof thecompetentcorporatestructures;

• assess,inthecaseofactualcommissionofOffencesandsignificantbreachesoftheModel,theadvisabilityofintroducingchangestoit;

• submit to the Board of Directors proposals for the adaptation and modification of theModel.Theadoptionofanyamendmentsisinfacttheresponsibilityofthegoverningbody,which,inaccordancewithArticle6,paragraph1,letterA),hasdirectresponsibilityfortheadoptionandeffectiveimplementationoftheModelitself;

• verifytheeffectivenessandfunctionalityoftheModelamendmentsadoptedbytheBoardofDirectors.

In carrying out its supervisory and control activities, the SB, without the need for any priorauthorisation:

• will have free access to all the structures and offices of the Company, will be able tocommunicatewith any subject operating in the aforesaid structures andoffices andwillhave free access to and acquire all the information, documents and data he deemsrelevant.Intheeventofareasonedrefusalbytheaddresseesoftherequests,theSBwillprepareaspecialreporttobesenttotheBoardofDirectors;

• mayrequestaccesstodataand informationaswellasthepresentationofdocumentstothemembersofthecorporatebodies,totheindependentauditors,toThirdPartiesandingeneral to all theAddresseesof theModel.With specific reference to ThirdParties, theobligation to complywith the requests of the SBmust be expressly provided for in the


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individual contractsentered intoby theCompanyand/or in thecommunications sentbytheCompany;

• maycarryoutperiodicinspectionsinthevariouscompanyfunctions,alsowithreferencetospecificoperations(alsoinprogress)carriedoutbytheCompany.

Taking intoaccountthepeculiaritiesandresponsibilitiesattributedtotheSupervisoryBoardandthespecificprofessionalcontentrequiredbythem, inordertofullycarryout itssupervisoryandcontrol tasks, the Supervisory Board avails itself of the support of the company structuresinstitutionally endowed with technical and human and operational resources, suitable toguarantee the performance on a continuous basis of the assessments, analyses and othernecessary fulfilments.TheSupervisoryBoard isalsoentitled todelegatespecificassessmentandcontrolactivitiestotheaforementionedcompanyfunctions,theresultsofwhichmustbereportedtotheSupervisoryBoard.

It is specified that a non-cooperative behaviour on the part of company resources towards theSupervisoryBoardconstitutesabreachof theModeland is thereforepunishableonthebasisoftheprovisionsofthedisciplinarysystem(paragraph2.3).

Finally,withregardtoissuesofhealthandsafetyintheworkplaceandenvironmentalprotection,theBodymayalsomakeuseoftheEnvironmental/Quality/SafetyManagementSystemManagersandall the resourcesactivated for themanagementof the relatedaspects (Employer,ManagersDelegated pursuant to Article 16 of Legislative Decree 81/08, Head of the Prevention andProtection Service and delegated to manage environmental aspects) as well as those furtherprovided forby industry regulationsand, inparticular,byLegislativeDecree81/2008, LegislativeDecree105/15andLegislativeDecree152/2006.

Wheneveritdeemsitnecessary,dependingonthespecificityofthetopicsdealtwith,theSBmayavailitselfofexternalconsultantsforthespecificskillsthattheSBdeemsappropriate.

Inordertoensurethefullandautonomousperformanceofitstasks,theSupervisoryBoarddrawsup,inaccordancewithitssupervisoryrequirements, itsownannualexpenditurebudget,whichitsubmitstotheBoardofDirectorsforapproval.

Forallotheraspects,theSB,inordertopreserveitsautonomyandimpartiality,willself-regulatethrough the formalization, within a set of rules, a set of rules that ensure the best functioning(relating, by way of example, the scheduling of activities, the format of the minutes and thedefinitionoftheplanofcontrols).TheSBwillsend,forinformation,acopyoftheregulationcitedtotheBoardofDirectorsoftheCompanyandtotheBoardofStatutoryAuditorsoftheCompany.

TheSupervisoryboardisequippedwithaspeciale-mailaddress,towhicheachAddresseeoftheModelmayapplyforclarificationontheapplicationoftheModelandthelegislationreferredtoabove.


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Thee-mailaddressoftheB&BItaliaS.p.A.SupervisoryBoardis:[email protected]

REPORTINGACTIVITYOFTHESUPERVISORYBOARD

Asmentionedabove,inordertoguaranteeitsfullautonomyandindependenceintheperformanceofitsfunctions,theSupervisoryBoardreportsdirectlytotheBoardofDirectorsoftheCompany.

Inparticular,atthetimeofapprovalofthefinancialstatementsbyB&B,theSBsendstheBoardofDirectorsandtheBoardofStatutoryAuditorsadetailedreportonthefollowingaspects:

• adescriptionofthesignificanteventsforthepurposesoftheModelandLegislativeDecree231/2001,whichhaveaffectedtheCompany;

• thepossibleevolutionoftheregulationsconcerningLegislativeDecree231/2001;

• thecurrentstatusandanassessmentofthedegreeofupdatingoftheModel;

• the reports received from the SB, accompanied by descriptive notes on the in-depthanalysescarriedoutbytheSBandtherelatedfindings;

• any critical issues that haveemerged in the information flows received from the SBwithregardtotheareasofrisk;

• theactivitiescarriedout;

• relationswiththerelevantjudicialbodiespursuanttoLegislativeDecreeNo.231/2001;

• conclusionsregardingthefunctioning,compliancewithandupdatingoftheModel.

IntheeventofseriousanomaliesinthefunctioningofandcompliancewiththeModelorbreachesofitsprovisions,theSBshallpromptlyreporttotheBoardofDirectorsortotheChairman.

TheSBmaybeconvenedatanytimebytheBoardofDirectorsormay,inturn,request-ifitdeemsit appropriate or in any casedeems it necessary - to beheardby theBoardofDirectors or theChairmantoreportonparticulareventsorsituationsrelatingtothefunctioningofandcompliancewith the Model, requesting, if necessary, an intervention by the same. In addition, the SB, ifdeemednecessaryorappropriate,mayrequesttobecalledbytheBoardofStatutoryAuditors.

Inordertoguaranteeacorrectandeffectiveflowofinformation,theSBalsohasthepossibility,inordertofullyandcorrectlyexerciseitspowers,toaskforclarificationsorinformationdirectlyfromtheChairmanandfromthepersonswiththemainoperationalresponsibilities.

Theabovemeetingswith thebodies towhich theSB refersmustbe recorded inminutesandacopyoftheminutesmustbekeptbytheSBandthebodiesinvolvedfromtimetotime.

2.3. REPORTINGSYSTEMPURSUANTTOLEGISLATIVEDECREE231/2001


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REQUIREMENTSTOINFORMTHESUPERVISORYBOARD

PursuanttoArticle6,paragraph2, letterd),ofLegislativeDecree231/2001,therequirementstowhich theModelmust respond include the provision of "information requirements towards thebodyresponsibleforsupervisingthefunctioningofandcompliancewiththemodels".

TheSBmustbeinformedbytheAddresseesoftheModelofeventsthatcouldgiverisetoliabilitypursuant to the Decree or that in any case represent breaches of the provisions of theModel.Likewise,anydocumentdenouncingsuchcircumstancesmustbesenttotheSB.

Inparticular,inordertomoreeffectivelyandconcretelyimplementtheprovisionsoftheModel,theCompanyavailsitselfoftheFunctionManagers,whohaveoperationalresponsibilityforeachareaofcompanyactivityinwhichapotentialriskofcommissionoftheOffenceshasemerged.ThefollowingfunctionsmustbeformallyassignedtotheFunctionManagers:

• personally and on the part of the Addressees subject to their management andsupervision,toguaranteetherespectandapplicationoftheprinciplesandrulesofconductdefinedintheCodeofEthics,intheremainingproceduralbodyandininternalregulations,aswellasoftheModelandtheProtocols;

• supporting the SB in the exercise of the tasks and activities related to the responsibilityassigned to it by interfacing with it and ensuring periodic information flows throughassessmentandcontrolactivities.

An obligation to inform the Supervisory Board has therefore been established, which takes theform of information flowspre-defined by theModel, in which information, data and news arereported on compliancewith the principles of control and conduct enshrined in theModel, theCode of Ethics and the Protocols and transmitted to the Supervisory Board by the companystructuresinvolvedinactivitiespotentiallyatrisk,inthetimesandinthewaysthatwillbedefinedandcommunicatedbytheSupervisoryBoarditself.Theseflowsaredividedinto:

a) Periodicinformationflows,addressedtotheSupervisoryboard,withadefinedfrequency,bythe FunctionManagers involved in activities at riskpursuant to LegislativeDecree231/2001,who, througha comprehensive self-diagnosisprocesson the company'sactivitiesandon theactivitiescarriedout,certifythelevelofimplementationoftheModelwithparticularattentiontocompliancewithinternalproceduresandregulations.Throughthisformalself-assessmentactivity,theyhighlightanycritical issues intheprocessesmanaged,anydeviationsfromthe indicationsdictatedbytheModeland/ortheProtocolsor,moregenerally,fromtheregulatoryframework,theadequacyofthesameregulation,withthehighlightingoftheactionsandinitiativesadoptedortheplanforthesolution.


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ThecertificatesoftheFunctionManagersaresent,within15daysoftheendofthesemester,totheSupervisoryboard.Referent231willfilethedocumentation,keepingitatthedisposaloftheSupervisoryboardforwhichhewillproduceareportwiththeresults.Periodic information flows should be sent to the SB at the dedicated e-mail address:[email protected],withregardtotheissuesofhealthandsafetytutalsintheworkplaceandenvironmentalprotection, where the department heads coincide with the delegated managers, theassessment activitymentioned above is documented and coicideswith "semi-annual report"thattheymustsendperiodicallytotheemployer,asbetterdescribedintheindividualpowersofattorneyconferredonthem.

b) Event-based information flows, addressed to theSupervisoryboardbyall theAddresseesoftheModel,totherealisationoftheindividualeventfromwhichcriticalissuesmayemergewithrespecttotheapplicationoftheModelorthepotentialcommissionofOffences,asspecificallyprovidedforintheSpecialPartProtocols.

These flowsmust indicate any information, data, news, report, report or document that theSpecialPartProtocolsenvisage forwardingto theSupervisoryboardwithoutdelay,aswellasany circumstance not expressly regulated, but which lends itself to dubious interpretationsand/or applications or such as to impose derogations from the application of the sameProtocols.

Inadditiontothepre-definedinformationflows,pursuanttoart.6,paragraph2-bis,ofLegislativeDecree231/2001, therequirementstowhichtheModelmustrespondalso includetheprovisionthat itmustprovideoneormorechannelsthatallowtheAddresseesoftheModeltosubmit,fortheprotectionoftheintegrityoftheentity,detailedreportsofunlawfulconduct,relevantunderLegislativeDecree231./2001andbasedonelementsofpreciseandconcordantfacts,orbreachesoftheModelofwhichtheyhavebecomeawarebyreasonofthefunctionsperformed14(so-calledoccasionalreports).

Finally, inaddition to the typeof information flowspredefinedby theModeland theoccasionalflows described above, it is necessary to add the type of information flows requested by theSupervisory board, i.e. any information specifically requested by the Supervisory Board as it isconsidered relevant for the purposes of its supervision of the effectiveness, effectiveness andupdatingoftheCompany'sModel.

In fact, theSB,within the scopeof its autonomouspowersof initiativeandcontrol, can identifyfurther information flows in order to acquire other information of interest to it, identifying itscontent,levelofdetail,andthenrequestingitsactivationfromthecompetentcompanyfunctions

14WithLawno.179of30November2017,paragraph2-biswas inserted intoart.6ofLegislativeDecree231/2001,whichregulatesthe"Protectionofemployeesorcollaboratorswhoreportoffencesintheprivatesector".


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(suchas, bywayof example andnot limited to, the company functions involved in the "at risk"areasindicatedintheSpecialPartoftheModel).

CHANNELSFORREPORTINGANDGUARANTEEINGCONFIDENTIALITYFORTHEWHISTLEBLOWER

As prescribed by Article 6, paragraph 2-bis of Legislative Decree 231/2001, all channels ofcommunicationof reports guarantee the confidentiality of15 the identity of thewhistleblower inthe activities of management of the report, as soon as the report is received and at eachsubsequentstage.

Inageneralandprivilegedway,reportsmustbewrittenandsenttotheSupervisoryBoardthroughthefollowingalternativecommunicationchannels:

• an informationchannelaccessibleonlytotheSupervisoryboardsuitableforguaranteeingthe confidentiality of the identity of the whistleblower (preferred means), which theCompanyundertakestocommunicatetoallAddressees;

• a physical address to which the report is sent in a sealed envelope, marked"confidential/personal" on the outside: B&B Italia S.p.A. - Organismo di Vigilanza, StradaProvincialen.32,22060Novedrate(CO).

Alternatively, the whistleblower may ask to be heard by the SB in order to present thewhistleblowerorally.Thisprocedureprovidesforthewrittenrecordingofthereport.InthesolecaseinwhichthesubjectofthereportisaconductbyamemberoftheSB,orbytheentireBody, thewhistleblowermustaddressdirectly tothemanagementbodyof thecompany.This procedure involves the identification and appointment by the management body of thepersonresponsibleforthemanagementofthereport.TheSB,orthepersonresponsibleformanagingthereport,evaluatesthereportsandinformationreceived and any subsequent initiatives to be taken, in accordance with the provisions of theinternal disciplinary system, possibly listening to the author of the report and/or the personresponsiblefortheallegedbreach,givingwrittenreasonsforanydecisionandgivingrisetoallthechecksandinvestigationsthatitdeemsnecessary.

15 As clarified in the "Guidelines for the protection of public employees who report offences (so-calledwhistleblowers)" issued by the ANAC in Determination no. 6 of April 28, 2015, "the guarantee of confidentialitypresupposesthatthereporterdiscloseshisidentity.(...)Inessence,therationaleofthelawistoensuretheprotectionoftheemployee,keepinghisorheridentityconfidential,onlyinthecaseofreportsfromidentifiableandrecognizablepublicemployees.However, itremainsfirm,(...) thattheAuthorityalsotakes intoconsiderationanonymousreports,wheretheseareadequatelycircumstantiatedandrenderedwithabundanceofdetail,thatis,wheretheyareabletobringoutfactsandsituationsrelatingthemtospecificcontexts.


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Withoutprejudicetotheabove,theSupervisoryboard,orthepersonresponsibleformanagingthereport, shall alsoevaluate reports receivedanonymously, provided that they tooareadequatelydetailed and based on precise and consistent elements of fact,while it shall not consider andimmediately file reports that are clearly not relevant, insufficiently detailed or with defamatorycontents.All the information, documentation, reports, reportsprovided for in thisModel are kept by theSupervisory Board, or by the person in charge of managing the report, in a special database(computerorpaper) for aperiodof10 years; theSupervisoryBoard,or theperson in chargeofmanagingthereport,willtakecaretokeepthedocumentsandinformationacquiredconfidential,alsoincompliancewiththeregulationsonprivacy.AccesstothedatabaseisallowedonlytotheSupervisoryBoard.

PROTECTIONOFTHEWHISTLEBLOWER

Itisexpresslyprohibitedbylawto16carryoutactsofretaliationordiscrimination,directorindirect,againstthewhistleblowerforreasonsrelated,directlyorindirectly,tothereport.TheSB,orotherperson responsible for the management of the report, therefore, acts by guaranteeing thewhistleblowers against any form of retaliation, discrimination or penalisation, and ensuring theutmost confidentiality regarding the identity of the whistleblower and any news, information,report,underpenaltyoftheapplicationofspecificpenalties,exceptfortherequirementsinherenttotheconductofinvestigationsintheeventthatthesupportofconsultantsexternaltotheSBorothercorporatestructuresisnecessary.

The adoption of discriminatory measures against persons who make the reports referred to inparagraph2-bisofArticle6ofLegislativeDecree231/2001maybereportedtotheNationalLabourInspectorate,formeasureswithin itscompetence,notonlybythewhistleblower,butalsobythetradeunionindicatedbythesame17.

Retaliatoryordiscriminatorydismissalofthewhistleblowershallbenullandvoid.

AnychangeincircumstancespursuanttoArticle2103oftheItalianCivilCode,aswellasanyotherretaliatoryordiscriminatorymeasureadoptedagainstthepersonmakingthereport,arealsonullandvoid.

Itistheemployer'sresponsibility,intheeventofdisputesrelatedtotheimpositionofdisciplinarypenalties, or to demergers, dismissals, transfers, or submission of thewhistleblower to anotherorganisationalmeasurehavinganegativeeffect,directorindirect,onworkingconditions,followingthesubmissionofthewhistleblower,toprovethatsuchmeasuresarebasedonreasonsunrelatedtothewhistleblower.

16Art.6paragraph2-bisletterc)ofLegislativeDecree231/200117Art.6paragraph2-terofLegislativeDecree231/2001


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2.4. DISCIPLINARYSYSTEMFORMODELBREACH

ForthepurposesofassessingtheeffectivenessandsuitabilityoftheModeltopreventtheoffencesindicated in Legislative Decree 231/2001, it is appropriate that theModel identifies, by way ofexample,andpenalties,thebehavioursthatmayfavourthecommissionofOffences.

In particular, Article 6, paragraph 2, of LegislativeDecree 231/2001, in listing the elements thatmustbefoundwithinthemodelspreparedbytheBodies, inlettere)expresslyprovidesthattheBodieshavetheburdenof"introducingadisciplinarysystemsuitableagainstnon-compliancewiththemeasuresindicatedintheModel".

Furthermore, inapplicationoftheprovisionsofArticle6,paragraph2-bis, letterd),ofLegislativeDecree 231/2001, this disciplinary system must also provide for penalties against "those whoviolate themeasures for theprotectionof thewhistleblower,aswellas thosewhomake reportswithintentorgrossnegligencethatprovetobeunfounded".

Itishoweverunderstoodthat,evenintheeventthatacertainconductisnotincludedamongthebehavioursidentifiedbelow,ifitisinbreachoftheModel,itmaystillbesubjecttopenalties.

FUNCTIONSOFTHEDISCIPLINARYSYSTEM

TheCompany,inordertoinducesubjectsactinginthenameoforonbehalfofB&Btooperateincompliance with the Model, has therefore established a specific disciplinary system, aimed atpunishingallthosebehavioursthatconstitutebreachesoftheModel,theCodeofEthicsandtheProtocols, through the application of specific penalties deriving from a connection between theprovisionsoflabourlawandtheprinciplesandneedsoftheModel.

ThisdisciplinarysystemisthereforeaddressedtoallthosewhocollaboratewithB&Basemployees(managers and non-executives), directors, self-employed workers, collaborators and third partyconsultants whowork on behalf of or within the Company and all thosewho have contractualrelationswiththeCompanyfortheperformanceofanywork.

If, in the courseof its assessmentandcontrol activities, theSBdetectsapossiblebreachof theModel,theCodeofEthicsandtheProtocols,itwillgiveimpetustodisciplinaryproceedingsagainsttheauthorofthepotentialinfringement,independentlyofanycriminalproceedingsbythejudicialauthoritiesagainsttheauthor,aswellasinrelationtoanyotheractionthatmaybeappropriateornecessary(e.g.actionfordamages).

The assessment of the actual responsibility deriving from the breach of the Model and theapplication of penalties thereof, will take place in compliancewith the provisions of the law inforce,therulesoftheapplicablecollectivebargaining,theinternalprocedures,theprovisionson


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privacyandinfullcompliancewiththefundamentalrights,dignityandreputationofthepersonsinvolved.

Anydisciplinarypenalties imposedshallbebasedontheprinciplesof timeliness, immediacyandfairness.

ADDRESSEESOFTHEDISCIPLINARYSYSTEM

Thedisciplinarysystem,aswellastheModel,isaddressed,infact,toallAddressees,andpreciselyto themembers of the Board of Directors, managers, employees, Third Parties and AdditionalParties.

PENALTIES

Measuresagainststaff

BreachesoftherulesofconductprovidedforbytheModelandtheCodeofEthicsaswellasoftheprinciplesof controlprovided for in theProtocols committedbyemployeesconstitutebreachofcontract and therefore may result in the adoption of disciplinary penalties, within the limitsestablishedbythecollectiveagreementapplicabletotheemploymentrelationship.

Inparticular,theNationalCollectiveBargainingAgreementforWoodandFurnitureConfindustria,for workers, employees and managers, establishes the application of the following disciplinarymeasuresintheeventofbreachofcontract:

a) Verbalreprisal;

b) Reproofinwriting;

c) Fine;

d) Suspension;

e) Dismissal.

Withreferencetothepenaltiesthatcanbeimposed,itshouldbenotedthattheywillbeadoptedandappliedincompliancewiththeproceduressetoutinthenationalcollectivelabouragreementsapplicabletotheemploymentrelationship,followingtheinternalproceduresprovidedfor.

All theprovisions of art. 7 of Lawno. 300of 20May1970 (the so-called "Workers' Statute") inrelationtoboththepresentationofthedisciplinarycodeandtheobligationtonotifytheemployeeofthechargeinadvance,alsoinordertoallowhim/hertoprepareanappropriatedefenceandtoprovideanyjustification,remainunaffectedandareunderstoodtobereferredtoherein.


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InaccordancewiththeprovisionsoftheWorkers'Statute,thetypeandextentofthepenaltyshallbedeterminedtakingintoaccounttheseriousnessoftheinfringement,therecidivismofthenon-complianceand/orthedegreeofguilt,evaluatinginparticular:

• theintentionalityandcircumstances,attenuatingoraggravating,oftheoverallbehaviour;

• theroleandlevelofhierarchicalresponsibilityandautonomyoftheemployee;

• thepossiblesharingofresponsibilitywithotherworkers inagreementwitheachother indeterminingthebreach;

• anysimilardisciplinaryprecedents,withinthetwo-yearperiodprovidedforbylaw;

• therelevanceoftherequirementsbreached;

• theconsequencesfortheCompany,theextentofthedamageordangerasaconsequenceoftheinfringementfortheCompanyandforthestakeholdersoftheCompanyitself.

The disciplinary penalties provided for in points (a) and (b) are imposed on employees who,through negligence, violate the rules, principles and procedures provided for by theModel, theCode of Ethics and the Protocols, adopt behaviours that are not compliant with them orinadequate, but in any case such as not to undermine the effectiveness of the aforementioneddocuments.

Moreprecisely:

• thepenaltyofverbalreprimandmaybeappliedintheeventofslightnon-compliancewiththe principles and procedures laid down in the Model, the Code of Ethics and/or theProtocolsdue to thenegligenceof theemployee.Bywayofexample,anemployeewho,through negligence, fails to keep accurate supporting documentation necessary toreconstructtheCompany'soperationsinareasatriskispunishablebyverbalreprimand;

• the penalty ofwritten reprimand is adopted in the event of repeated failures punishedwithverbalreprimand,orintheeventofculpablebreachoftheprinciplesandprocedureslaiddownintheModel,CodeofEthicsandProtocols,throughnon-compliantorinadequatebehaviour:bywayofexampleandnotlimitedtointheeventofdelayednotificationtotheSBoftheinformationdueundertheModel;

Thedisciplinarypenaltiesreferredtoinpoints(c)and(d)areimposedonemployeesintheeventofrepeatedbreachesreferredtointhepreviouspointsorintheeventofculpableand/ornegligentconductonthepartofemployeesoperatinginareasatrisk,whichmayalsopotentiallyunderminetheeffectivenessoftheModel,theCodeofEthicsand/ortheProtocols.

Moreprecisely:

• the fine may not exceed the amount of four hours of normal hourly remunerationcalculated on the basis of theminimum table, in the event of non-compliance with the


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principles and rules of conduct laid down in this Model, the Code of Ethics and theProtocolsforconductthatdoesnotcomplywithordoesnotcomplywiththeprovisionsoftheModeltoanextentthatisconsideredtobeofacertaingravity.Bywayofexampleandnotlimitedto,suchbehavioursincludethebreachoftherequirementstoinformtheSBofirregularities committed in the performance of its activities, or the repeated failure toparticipate, without justified reason, in the training sessions provided by the CompanyrelatingtoLegislativeDecree231/2001,theOrganisation,ManagementandControlModelandtheCodeofEthicsorinrelationtorelatedissues;

• suspension fromserviceand remunerationmaynotbeordered formore than tendays,andmust be applied in the event of serious procedural breaches such as to expose theCompanyto liabilityvis-à-vis thirdparties/major failures.Forexample,butnot limitedto:failure to comply with the provisions of the Code of Ethics; omission or issue of falsedeclarationsrelatingtocompliancewiththeModel;failuretocomplywiththeprovisionsofthe powers of signature and the system of proxies; failure to supervise the conduct ofpersonneloperatingwithintheirsphereofresponsibility inordertoverifytheiractions inthe areas of risk; breach of the requirements to inform the Supervisory Board of anysituationat riskofassessmentof thepredicateoffencesperceived in theperformanceoftheiractivities;carryingoutwithgrossnegligenceareportpursuanttoArticle.6paragraph2-bisof LegislativeDecree231/2001whichproves tobeunfounded; thebreach, throughseriousnegligence,ofmeasurestoprotectthewhistleblower;anyandallotherbreachofcontractorspecificprovisioncommunicatedtotheemployee.

• The disciplinary penalty referred to in point e) is imposed on employees who, in theperformance of their activities, behave in a manner that does not comply with theprovisionsoftheModel,theCodeofEthicsandtheProtocolsandisunambiguouslyaimedatcommittinganoffencecoveredbytheDecreeandsuchastodeterminetheapplicationto B&B of the administrative penalties deriving from the offence provided for by theDecree.

Moreprecisely:

• dismissalwith notice for justified reasons is a penalty imposed as a result of significantbreach of contract by the employee. Among the breaches punishable by the aforesaidpenalty are the following intentional behaviours: repeated failure to comply with theprovisionsoftheModel,theCodeofEthicsandtheProtocols;intentionalfailuretocomplywiththerequirementsoftheModel,theCodeofEthicsandtheProtocols;adoption,inthecompanyareasatrisk,ofbehavioursthatdonotcomplywiththeprovisionsoftheModeland areunivocally aimedat committingoneof theoffencesprovided for by theDecree;failuretonotifytheSupervisoryboardofrelevantinformationrelatingtothecommission,even if attempted,ofoneof thepredicateoffences; intentional failure to report a crime


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pursuanttoArticle2oftheDecree;intentionalfailuretocomplywiththeprovisionsoftheModel, theCodeofEthicsandtheProtocols; failure tocomplywith theprovisionsof theModel, univocally aimed at committing one of the offences provided for by the Decree;failuretonotifytheSupervisoryboardofrelevantinformationrelatingtothecommissionofapredicateoffence;intentionalreportingofacrimepursuanttoArticle3oftheDecree.6paragraph 2-bis of Legislative Decree 231/I'm sorry, but it's a little bit unfounded, but Idon'tknow.

• dismissalwithoutnotice for just cause is apenalty imposedas a consequenceof suchaseriousfailure(forthewilfulnessoftheact,orforthecriminalorpecuniaryconsequencesor for its recidivism) that it does not allow the continuation, even temporary, of theemploymentrelationship.Amongthebreachespunishablebytheaforementionedpenalty:fraudulentconductunequivocallyaimedatthecommission,evenwiththeaidofothers,ofoneormoreoftheoffencesprovidedforintheDecreesuchastorendertherelationshipoftrust with the employer null and void; drawing up of incomplete or untruthfuldocumentation fraudulently aimedatpreventing the transparencyandverifiabilityof theactivitycarriedout;wilfulbreachofprocedureshavingexternalrelevance;failuretodrawupthedocumentationprovidedforintheModeland/ortheProtocols;breachorfraudulentcircumventionofthecontrolsystemprovidedforbytheModeland/ortheProtocolsinanyway carried out, including the removal, destruction or alteration of the documentationinherent in the procedure; implementation of conduct that obstructs or circumvents thecontrolsoftheSupervisoryBoard,impedimentofaccesstoinformationanddocumentationbypersons inchargeofcontrolsordecisions;maliciousexecutionofareportpursuanttoart.6paragraph2-bisof LegislativeDecree231/2001whichproves tobeunfoundedandparticularlyburdensometowardsthepersonreported;theintentionalbreachofmeasurestoprotectthewhistleblower.

Uponnotification of a breach of the rules of conduct of theModel, the Codeof Ethics and theProtocolsbyanon-executiveemployee,theSBinformstheBoardofDirectorsfortheadoptionofappropriate initiatives. The procedure will be entrusted to the Human Resources Department,whichwillimposethepenaltyinaccordancewiththelawandthecontract.

The SB must be informed of disciplinary proceedings relating to breaches of the Model withevidenceoftheinitiativesormeasurestakentoclosetheproceedingswiththerelevantreasons.

Measuresagainsttopmanagement

ThecompliancebyB&BmanagerswiththeprovisionsandproceduresprovidedforbytheModel,the Code of Ethics and the Protocols, as well as the fulfilment of the obligation to ensure


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compliance with the provisions of the aforementioned documents, are basic elements of theexistingrelationshipbetweenthelatterandB&B.

Inthecontextofrelationswithmanagers,B&Bhasinfactincludedintheindividualcontractlettersaspecificclauseprovidingfortheapplicationofpenaltiesintheeventofconductcontrarytotheprovisions of Legislative Decree 231/2001 and the Model and Code of Ethics adopted by theCompany,and/orfailuretosuperviseandcoordinatebytheFunctionManagers.

Eachmanagerwill receiveacopyof theModel, theCodeofEthicsandtheProtocolsand, inthecaseofverifiedadoption,byamanager,ofabehaviourthatdoesnotcomplywiththeprovisionsof theModel, or if it is proven thathehas allowedemployees subordinate tohim toengage inconductthatconstitutesabreachoftheModel,theCodeofEthicsandtheProtocols,theCompanywill apply to themanager thepenalty it considersmostappropriate,becauseof the seriousnessand/orrecidivismofthemanager'sconductandinanycaseonthebasisofwhatisprovidedforbytheapplicablenationalcollectivelabouragreement.

Inparticular,thefollowingpenaltiesmaybeappliedtoExecutives:

• themanager incurswrittenreprimandandanordertocomplywiththeprovisionsoftheModel, in the event of aminor breach of one ormore of the behavioural or proceduralrulesprovidedforintheModel,theCodeofEthicsandtheProtocols;

• themanager issuspended fromworkasaprecautionarymeasure -withoutprejudice totherightofthesamemanagerstoremuneration,andalso,againonaprovisionalbasisandpossibly for a period not exceeding three months, the use of different positions, incompliancewithart.2103oftheCivilCode-intheeventofaseriousbreachofoneormorebehavioural or procedural rules provided for in the Model, the Code of Ethics and theProtocols, or in the case of a report made with serious negligence pursuant to art. 6,paragraph2-bisofLegislativeDecree231/2001whichprovestobeunfounded;thebreach,throughseriousnegligence,ofmeasurestoprotectthewhistleblower;

• themanagerisdismissedwithnoticeintheeventofrepeatedandseriousbreachesofoneormoreprovisionsoftheModel,theCodeofEthicsandtheProtocolssuchastoconstitutea significantbreach,or in theeventofmaliciouslymakinga reportpursuant toArticle6,paragraph2-bisofLegislativeDecree231/2001thatprovestobeunfounded;

• themanager isdismissedwithout notice if the breach of one ormore provisions of theModel, the Code of Ethics and the Protocols is so serious as to irreparably damage therelationshipof trust,notallowing thecontinuationof theemployment relationship,eventemporarily,orinthecaseofmaliciouslymakingareportpursuanttoArticle6,paragraph2-bis of Legislative Decree 231/2001, which proves to be unfounded and particularlyburdensome towards the person reported; thewilful breach ofmeasures to protect thewhistleblower.


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This is without prejudice to the right of the Company to claim compensation for the greaterdamagesufferedasaresultoftheconductofthemanager.

Theexecutivemayalsoberevokedfromanypowersofattorneyordelegationgrantedtohim.

Thetypeandextentofthepenaltyshallbedeterminedtakingintoaccounttheseriousnessoftheinfringement,therecidivismofthenon-complianceand/orthedegreeofguiltorwilfulmisconduct,assessinginparticular:

• thewilfulnessandcircumstances,eitherdiminishingoraggravating,oftheoverallconduct;• theroleandhierarchicalresponsibilityandautonomyoftheemployee;• the possible sharing of responsibility with other employees agreeing with each other in

causingthebreach;• anysimilarpreviousproceedings,withinthetwo-yearperiodprovidedforbylaw;• therelevanceoftherequirementsbreached;

• theeffectsontheCompany,theextentofthedamageordangerasaconsequenceofthebreachfortheCompanyandforthestakeholdersofthelatter.

By way of example and not limited to, a serious breach of the requirements to inform the SBregardingthecommissionofrelevantcrimes,evenifattempted,constitutesaseriousbreach.

Uponnotificationofamanager'sbreachoftherulesofconductoftheModel,theCodeofEthicsandtheProtocols,theSBinformstheBoardofDirectorsfortheadoptionofappropriateinitiatives.The procedure will be entrusted to the Human Resources Department, which will impose thepenaltyinaccordancewiththelawandthecontract.

The SB must be informed of disciplinary proceedings relating to breaches of the Model withevidenceoftheinitiativesormeasurestakentoclosetheproceedingswiththerelevantreasons.

Measuresagainstdirectors

Intheeventofverified breachoftheModel, theCodeofEthics, theProtocolsandmeasurestoprotect the personmaking a report pursuant to Article 6, paragraph 2-bis of Legislative Decree231/2001,aswellasinthecaseofmaliciousorgrosslynegligentmakingofreportsthatprovetobeunfounded,byoneormoredirectors,theBoardofDirectors,pursuanttoart.2406oftheItalianCivilCode.andincompliancewiththeapplicablelegalprovisionsorintheeventofinactionbytheBoarditself,theChairmanoftheBoardofStatutoryAuditors,uponnotificationoftheinfringementby the Supervisory Board, will immediately or in any case promptly convene the Shareholders'MeetingtoresolveonanyrevocationofthemandateorliabilityactionagainstdirectorspursuanttoArticle2393oftheItalianCivilCode.

Once the report has been examined, the Shareholders' Meeting will formulate in writing anycomplaintagainstthedirector,andwillcommunicateittotheinterestedpartyandtotheSBbythe


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Boardof StatutoryAuditors. TheShareholders'Meetingata subsequentmeeting, inaccordancewith the most appropriate defence terms, will decide on the imposition and possible type ofpenalty, according to the principle of proportionality, andwill communicate it to the interestedpartyandtotheSBbytheBoardofStatutoryAuditors.

DirectorswhoviolatetheprovisionsoftheModelandthemeasurestoprotectthepersonmakinga report pursuant to art. 6, paragraph 2-bis of Legislative Decree 231/2001, as well as whointentionallyorgrosslynegligentlymakereportsthatprovetobeunfounded,shallinanycasebesubjecttotheliabilityactionandtheconsequentclaimforcompensationforanydamagesufferedundertheprovisionsoftheCivilCodebyapplyingtherelevantlegislation.

Measuresagainststaffwithapowerofattorney

Respect by senior (non-executive) staff of B&B with power of attorney for the provisions andproceduresprovidedforbytheModel,theCodeofEthicsandtheProtocols,aswellasfulfilmentofthe obligation to ensure compliance with the provisions of the aforementioned documents,constitutefundamentalelementsoftherelationshipbetweenthemandtheCompany.

Inthecontextofrelationswithattorneys,B&Bhasinfactincludedintheindividualcontractlettersaspecificclausethatprovidesfortheapplicationofpenaltiesintheeventofconductcontrarytothe rules of Legislative Decree 231/2001 and the Model and Code of Ethics adopted by theCompany,and/orfailuretosuperviseandcoordinatebytheFunctionManagersand/orbreachofmeasures to protect the person who makes a report pursuant to art. 6 paragraph 2-bis ofLegislativeDecree231./2001and/ortheexecution,withgrossnegligence,ofreportsthatprovetobegroundless.

EachproxywillreceiveacopyoftheModel,theCodeofEthicsandtheProtocolsand,intheeventof verified adoption, by a proxy, of a conduct that does not complywith the provisions of theModel,theCompanywillapplytothepersonresponsiblethepenaltyitdeemsmostappropriate,because of the seriousness and/or recidivism of the conduct of the proxy. In particular, theexecutivebodywillevaluateallappropriatemeasures tobe takenagainst thepublicprosecutor,untiltherevocationoftheappointment.

Measuresagainststatutoryauditors

Intheeventofaverifiedbreachbyoneormorestatutoryauditors,alsooftheprovisionsofart.6,paragraph2bisof LegislativeDecree231/2001on reportingand the right toconfidentiality, theBoard of Directors, pursuant to art. 2407 of the Italian Civil Code and in compliance with theapplicable legal provisions, upon timely reporting of the verified breach by the SB, willimmediately or in any case promptly convene the Shareholders' Meeting to deliberate on thepossiblerevocationofthemandateoronaliabilityactionagainstthestatutoryauditorspursuanttoart.2393oftheItalianCivilCode.


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ThemeasurestakenbytheShareholders'Meetinginrelationtotheallegationsofnon-compliancewiththeModelandwiththeprovisionsofArticle6,paragraph2-bisofLegislativeDecree231/2001regardingreportingandtheright toconfidentialityshallbe formulated inwriting,delegating thematerialcommunicationoftheBoardofDirectorstothepersonconcernedandtotheSupervisoryBoard. The Shareholders' Meeting at a subsequent meeting, in accordance with the mostappropriate terms, in defence, will decide on the imposition and possible type of penalty,according to the principle of proportionality, delegating the material communication to theinterestedpartyandtotheSupervisoryBoardbytheBoardofDirectors.

TheliabilityactionagainstthemembersoftheBoardofStatutoryAuditors ishoweversubjecttothepossibilityofaclaimfordamagesinapplicationoftheprovisionsoftheItalianCivilCode.

MeasuresagainstThirdPartiesandAdditionalSubjects

AnyconductbypersonsoutsidetheCompanythat,incontrastwiththelaw,thisModel,theCodeofEthicsandtheProtocols,islikelytoinvolvetheriskofcommittingoneoftheoffencesforwhichthe Decree is applicable, will determine, in accordance with the provisions of the specificcontractual clauses included in the lettersofappointment, contractsor commercialagreements,theearlyterminationofthecontractualrelationship,withoutprejudicetothefurtherreservationofcompensationbeforethecompetentcourts ifsuchconductresults inconcretedamagetotheCompany.

Thesameearlyterminationofthecontractualrelationshipisprovidedforintheeventofbreachofmeasures to protect the person who makes a report pursuant to art. 6 paragraph 2-bis ofLegislativeDecree231/2001and/orofmaking,withintentorgrossnegligence,reportsthatprovetobeunfounded.

TheseconductswillbeevaluatedbytheSupervisoryboardwhich,afterhearingtheopinionoftheHeadof theDepartment/Function thathas requested the interventionof theThirdPartyand/ortheAdditionalParty,willpromptlyreporttotheManagingDirectorand,inthemostseriouscases,totheentireBoardofDirectorsandtheBoardofStatutoryAuditors.

MeasuresagainstmembersoftheSupervisoryBoard

Withoutprejudicetotheprovisionsofparagraph2.2.2,intheeventoftheverifiedadoption,byamemberof theSupervisoryboard,ofaconduct thatdoesnotcomplywith theprovisionsof theModel, as well as the breach of measures for the protection of the person making a reportpursuanttoart.6,paragraph2-bisofLegislativeDecreeno.231/2001and/ortheexecution,withintentorgrossnegligence,ofreportsthatprovetobeunfounded,theCompanywillapplytotheperson responsible the penalty it deemsmost appropriate, because of the seriousness and / orrecidivism of the conduct of the prosecutor. In particular, the executive body will evaluate all


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appropriate measures to be taken against the public prosecutor, until the revocation of theappointment.

2.5. MODELDISSEMINATION

Theadministrative liabilityregimeprovidedforbythe lawandtheadoptionoftheOrganisation,management and controlModel byB&B forma system thatmust find a coherent andeffectiveresponse intheoperatingbehaviouroftheAddressees. Inthisregard,communicationand initialtraining activities are essential with regard to the adoption of the Model and specificcommunicationactivitiesforeachsubsequentupdateofthedocument.With this awareness, B&B has structured an internal communication, information and trainingplanaimedatallcompanyemployees,butdiversifiedaccordingtothetargetaudience,whichaimsto createwidespread knowledge and a company culture appropriate to the issues in question,thusmitigatingtheriskofcommittingoffences.

Theplanismanagedbythecompetentcompanystructures, incoordinationwiththeSupervisoryboard.

Inparticular,asfarascommunicationisconcerned,itisenvisaged:

• aninitialcommunicationattheinstigationoftheBoardofDirectorstothemembersofthecorporatebodies,totheIndependentAuditorsandtotheemployees;

• the dissemination of the Model and the Code of Ethics on the Company's portal in aspecificdedicatedarea;

• forallthosewhodonothaveaccesstotheCompany'sportal,theModelandtheCodeofEthicsaremadeavailabletothemonrequestbyalternativemeans;

• appropriate communication tools will be adopted to update the Addressees on anychangestotheModeland/ortotheCodeofEthicsandProtocols.

Withregardtoinformationmechanisms,itisexpectedthat:

• themembersofthecorporatebodiesandthesubjectswithfunctionsofrepresentationoftheCompanyreceiveinformationonwheretofindtheModelandtheCodeofEthicsatthetimeofacceptanceof theoffice conferredon themand signadeclarationof compliancewiththeprinciplescontainedinthem;

• that third parties and additional parties are provided with specific information on theprinciplesandpoliciesadoptedbyB&B-onthebasisofthisModelandtheCodeofEthics-and on the consequences that conduct contrary to current legislation or the ethicalprinciples adoptedmay havewith regard to contractual relations, in order to raise theirawarenessof theneed forB&B toensure that their conduct complieswith the law,with


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particular reference to the provisions of Legislative Decree 231/2001, after hearing theopinionoftheSupervisoryboard;

• newhires receiveacopyof theModelandtheCodeofEthicsor references towheretofindthem,togetherwiththeremainingdocumentation,atthetimeofhiring.Thesigningofaspecialdeclarationatteststothedeliveryofthedocumentsorwheretofindthem.

Finally,withregardtotraining,atrainingplanisenvisagedwiththeaimofinformingallmanagersandemployeesof theCompanyof the contentsof theDecree, thenewModel and theCodeofEthics.

Thetrainingplantakesintoaccountseveralvariables,inparticular:

• thetargets(theaddresseesoftheinterventions,theirlevelandorganisationalrole);• content(topicsrelatedtotheroleofpeople);• deliverytools(classroom,e-learning).

Theplanforesees:• basic training forallpersonnel: itallows the timelyandwidespreaddisseminationof the

contentscommontoallpersonnel-referencelegislation(LegislativeDecree231/2001andpredicateoffences),theModelanditsfunctioning,thecontentsoftheCodeofEthics-andisenrichedbyself-assessmentandlearningtests;

• specificclassroominterventionsforpersonsoperatinginstructureswheretheriskofillegalbehaviourisgreatest,inwhichthespecificProtocolsarealsoillustrated;

• In-depthformsintheeventofinternalregulatoryorproceduralupdates.Training is an essential part of the Model and compliance with such requirement is to beconsideredbindingandmandatory,somuchsothatfailuretoadheretotrainingprogrammesistobeconsideredabreachoftheModelandthereforepunishable.

2.6. MODELUPDATING

The updating activity, intended both as an integration and as a modification, is aimed atguaranteeingtheadequacyandsuitabilityof theModel,assessedwithrespect tothepreventivefunctionofcommissionoftheOffencesindicatedbyLegislativeDecree231/2001.

The adoption and effective implementation of the Model is the responsibility of the Board ofDirectors,asexpresslyprovidedforbylaw.

Therefore,thepowertoupdatetheModel-theexpressionofaneffectiveimplementationofthesame-lieswiththeBoardofDirectors,whichexercisesitdirectlybyresolutionorbydelegationtooneofitsmembersandinthemannerprovidedfortheadoptionoftheModel.


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Indetail,theCompanyattributestotheBoardofDirectorsthepowertoadopt,alsoonthebasisofindicationsandproposalsfromtheSB,amendmentsand/oradditionstotheModelanditsannexesthatmaybecomenecessaryasaresultof:

• significantbreachesoftheprovisionsoftheadoptedModel;

• regulatory changes that extend the administrative liability of entities to other types ofoffences for which a risk of commission is deemed to exist in the interest or to theadvantageoftheCompany;

• significant changes in the organisational structure, in the system of powers and in theoperatingmethodsforcarryingoutactivitiesatriskandinthecontrolsformonitoringthem.

In order tomake all those formal and non-substantial changes to theModel thatmay becomenecessaryovertime,theBoardofDirectorsoftheCompany,initsdecision-makingautonomy,maygrantoneofitsmembersthepowertomaketheaforementionedchanges,withtheobligationforthe Director investedwith such power to formally notify the Board of Directors of the changesmade.

ORGANISATION, MANAGEMENT AND CONTROL MODEL by B&B … · 2019-07-05 · Organisation, Management...

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Transcript of ORGANISATION, MANAGEMENT AND CONTROL MODEL by B&B … · 2019-07-05 · Organisation, Management...