<SEC-DOCUMENT>0000903423-17-000276.txt : 20170828
<SEC-HEADER>0000903423-17-000276.hdr.sgml : 20170828
<ACCEPTANCE-DATETIME>20170421161430
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000903423-17-000276
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20170421

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			NATUZZI S P A
		CENTRAL INDEX KEY:			0000900391
		STANDARD INDUSTRIAL CLASSIFICATION:	HOUSEHOLD FURNITURE [2510]
		IRS NUMBER:				000000000
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		VIA IAZZITIELLO 47
		CITY:			SANTERAMO ITALY
		STATE:			L6
		ZIP:			70029

	MAIL ADDRESS:	
		STREET 1:		VIA IAZZITIELLO 47
		CITY:			SANTERAMO ITALTY
		STATE:			L6
		ZIP:			999999999

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	NATUZZI INDUSTRIES SPA
		DATE OF NAME CHANGE:	19950823
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
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<TITLE></TITLE>
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<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><B>NATUZZI S.P.A.</B></P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 12pt 4.5in">&nbsp;</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 12pt 4.5in">April 21, 2017</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 12pt 264.25pt; text-indent: -264.25pt"><FONT STYLE="text-transform: uppercase"><U>VIA
EDGAR TRANSMISSION</U></FONT></P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0">Mr. John Cash</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0">Accounting Branch Chief</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0">Office of Manufacturing and Construction</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0">Division of Corporation Finance</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0">Securities and Exchange Commission</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0">100 F Street, NE</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">Washington, DC 20549</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0.2in 0 0; text-indent: 35.4pt"><FONT STYLE="letter-spacing: 0.1pt"><B>Re:
Natuzzi S.p.A.</B></FONT></P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 0 22.5pt; text-indent: 35.4pt"><FONT STYLE="letter-spacing: -0.45pt"><B>Form
20-F for the Year Ended December 31, 2015</B></FONT></P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 0 22.5pt; text-indent: 35.4pt"><FONT STYLE="letter-spacing: -0.2pt"><B>Filed
May 23, 2016</B></FONT></P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 1.8pt 0 0 22.5pt; text-indent: 35.4pt"><FONT STYLE="letter-spacing: -0.2pt"><B>File
No. 1-11854</B></FONT></P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0">Dear Mr. Cash:</P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0">By letter dated March 15, 2017, the staff of the Securities
and Exchange Commission (the &ldquo;<U>Commission</U>&rdquo;) provided certain additional comments to the annual report on Form
20-F filed on May 23, 2016 (the &ldquo;<U>2015 Form 20-F</U>&rdquo;) by Natuzzi S.p.A. (the &ldquo;<U>Company</U>&rdquo; or &ldquo;<U>we</U>&rdquo;).
The Company is submitting via EDGAR responses to the comments of the Commission&rsquo;s staff (the &ldquo;<U>Staff</U>&rdquo;).</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0">For convenience, we have reproduced in italics below the Staff&rsquo;s
comments and have provided the Company&rsquo;s responses immediately below the comments.</P>

<P STYLE="font: 12pt/13.55pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="letter-spacing: -0.05pt"><I>&nbsp;</I></FONT></P>

<P STYLE="font: 12pt/13.55pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="letter-spacing: -0.05pt"><I><U>F</U></I></FONT><I><U>o<FONT STYLE="letter-spacing: -0.05pt">r</FONT>m
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31, 20<FONT STYLE="letter-spacing: 0.1pt">1</FONT>5</U></I></P>

<P STYLE="font: 12pt/12pt Times New Roman, Times, Serif; margin: 0.65pt 0 0"><I>&nbsp;</I></P>

<P STYLE="font: 12pt/13.55pt Times New Roman, Times, Serif; margin: 1.45pt 0 0"><FONT STYLE="letter-spacing: -0.15pt"><I><U>I</U></I></FONT><I><U>tem
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85</U></I></P>

<P STYLE="font: 12pt/12pt Times New Roman, Times, Serif; margin: 0.6pt 0 0"><I>&nbsp;</I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin-top: 1.45pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-size: 12pt"><I>1.</I></FONT></TD><TD><FONT STYLE="font-size: 12pt; letter-spacing: 0.05pt"><I>W</I></FONT><I><FONT STYLE="font-size: 12pt">e <FONT STYLE="letter-spacing: -0.05pt">re</FONT>vie<FONT STYLE="letter-spacing: -0.05pt">we</FONT>d
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one in our <FONT STYLE="letter-spacing: 0.1pt">l</FONT>etter <FONT STYLE="letter-spacing: -0.05pt">da</FONT>ted <FONT STYLE="letter-spacing: 0.1pt">J</FONT><FONT STYLE="letter-spacing: -0.05pt">a</FONT>nu<FONT STYLE="letter-spacing: -0.05pt">a</FONT><FONT STYLE="letter-spacing: 0.05pt">r</FONT>y
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to fu<FONT STYLE="letter-spacing: -0.05pt">r</FONT>ther <FONT STYLE="letter-spacing: -0.05pt">e</FONT>nh<FONT STYLE="letter-spacing: -0.05pt">a</FONT><FONT STYLE="letter-spacing: 0.1pt">n</FONT><FONT STYLE="letter-spacing: -0.05pt">c</FONT>e
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cont<FONT STYLE="letter-spacing: -0.05pt">r</FONT>ol over fin<FONT STYLE="letter-spacing: 0.05pt">a</FONT>n<FONT STYLE="letter-spacing: -0.05pt">c</FONT>ial
r<FONT STYLE="letter-spacing: -0.1pt">e</FONT>porti<FONT STYLE="letter-spacing: 0.1pt">n</FONT><FONT STYLE="letter-spacing: -0.1pt">g</FONT>,
includi<FONT STYLE="letter-spacing: 0.15pt">n</FONT>g, <FONT STYLE="letter-spacing: -0.05pt">a</FONT>mong oth<FONT STYLE="letter-spacing: 0.1pt">e</FONT>rs:</FONT></I></TD></TR></TABLE>

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 1.45pt 0 0 1in; text-indent: -0.5in"><FONT STYLE="font-family: Symbol; font-size: 12pt">&#183;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt; letter-spacing: -0.15pt"><I>I</I></FONT><I><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt">mprovi<FONT STYLE="letter-spacing: 0.1pt">n</FONT>g
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<FONT STYLE="letter-spacing: -0.05pt">c</FONT>ontro<FONT STYLE="letter-spacing: 0.1pt">l</FONT>s that r<FONT STYLE="letter-spacing: -0.05pt">e</FONT>late
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disclosur<FONT STYLE="letter-spacing: -0.05pt">e</FONT>s;</FONT></I></P>

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 1.45pt 0 0 1in; text-indent: -0.5in"><FONT STYLE="font-family: Symbol; font-size: 12pt">&#183;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt"><I>Ch<FONT STYLE="letter-spacing: -0.05pt">a</FONT>n<FONT STYLE="letter-spacing: -0.1pt">g</FONT>i<FONT STYLE="letter-spacing: 0.15pt">n</FONT>g
the th<FONT STYLE="letter-spacing: 0.05pt">r</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT>shold us<FONT STYLE="letter-spacing: -0.05pt">e</FONT>d
to r<FONT STYLE="letter-spacing: -0.05pt">e</FONT>view man<FONT STYLE="letter-spacing: 0.1pt">u</FONT><FONT STYLE="letter-spacing: -0.05pt">a</FONT>l
<FONT STYLE="letter-spacing: 0.05pt">j</FONT>ourn<FONT STYLE="letter-spacing: -0.1pt">a</FONT>l ent<FONT STYLE="letter-spacing: -0.05pt">r</FONT>ies;
<FONT STYLE="letter-spacing: -0.05pt">a</FONT>nd</I></FONT></P>

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 1.45pt 0 0 1in; text-indent: -0.5in"><FONT STYLE="font-family: Symbol; font-size: 12pt">&#183;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt"><I>Enh<FONT STYLE="letter-spacing: -0.05pt">a</FONT>n<FONT STYLE="letter-spacing: -0.05pt">c</FONT>i<FONT STYLE="letter-spacing: 0.15pt">n</FONT>g
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in<FONT STYLE="letter-spacing: -0.05pt">c</FONT>lud<FONT STYLE="letter-spacing: 0.05pt">i</FONT>ng the <FONT STYLE="letter-spacing: 0.05pt">r</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT>view
of</I></FONT></P>


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<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 1.45pt 0 0 1in"><I>stand<FONT STYLE="letter-spacing: -0.05pt">a</FONT>rd
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<P STYLE="font: 12pt/6pt Times New Roman, Times, Serif; margin: 0"><I>&nbsp;</I></P>

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<FONT STYLE="letter-spacing: 0.1pt">o</FONT><FONT STYLE="letter-spacing: -0.05pt">cc</FONT>u<FONT STYLE="letter-spacing: 0.05pt">r</FONT>r<FONT STYLE="letter-spacing: -0.1pt">e</FONT>d.</I></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">As indicated in the Company&rsquo;s response letter to the
Staff dated February 7, 2017 (the &ldquo;<U>February Response Letter</U>&rdquo;), during 2015, the Company implemented a series
of improvements in its internal control over financial reporting (&ldquo;<U>ICOFR</U>&rdquo;). Those changes, which were mainly
intended to enhance the documentation and refine the various control activities performed, were made: (i) in connection with the
continuous improvement of the Company&rsquo;s internal control process and (ii) as a consequence of the completion of the implementation
of the &ldquo;transformation plan&rdquo;, as described on page 6 of the 2015 Form 20-F, which, in 2015, resulted in the replacement
of the production system in Natuzzi&rsquo;s Italian plants with a new &ldquo;moving-line&rdquo; production system (the &ldquo;<U>Moving
Line</U>&rdquo;) and the reassignment of certain roles and responsibilities of personnel performing internal control testing activities
and the related review of the Company&rsquo;s organizational structure.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">The above-mentioned reassignment of roles and responsibilities
was not properly reflected in the access rights granted to the Company&rsquo;s SAP and NARES information technology (&ldquo;<U>IT</U>&rdquo;)
systems and the Company identified potential exceptions to the Company&rsquo;s IT segregation of duties (&ldquo;<U>SOD</U>&rdquo;)
guidelines. By the end of October 2015, the Company had implemented a monitoring control related to access rights, which included
additional review of personnel that had access to the system and transactions performed by them (throughout the whole of 2015)
while their access rights were not properly configured. These monitoring activities regarding potential SOD exceptions continued
until April 2016.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">The impact of the transformation plan, the changes in personnel
performing internal control activities, the comprehensive SOD testing activity and the improvements and enhancements in documentation
of controls more fully described below resulted in a significant increase in the workload of the Company&rsquo;s internal control
department and corresponding delays in completion of their work. Also, since the evaluation of control deficiencies necessarily
can only take place once the Company&rsquo;s ICOFR testing activity is complete, management&rsquo;s ability to conclude on the
effectiveness of its ICOFR was also delayed and ultimately, led to a delay in filing the 2015 Form 20-F.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">A description of the improvements and enhancements made to
management review controls, review of manual journal entries and routine transactions is provided below:</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><B><U>Management Review Controls</U></B></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">The majority of improvements made to management review controls
were designed during</P>


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<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">October and November 2015, following a review of the control
matrices for the Financial Statement Close Process (&ldquo;<U>FSCP</U>&rdquo;), and executed between January and April 2016. Such
controls mainly relate to the preparation of financial statements, which, for Italian statutory reporting purposes, means that
the activity and related controls take place during the three-month period following year-end, and, for the additional disclosure
included in the Form 20-F, including the preparation of the US GAAP reconciliation, the activity and related controls take place
in April.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">Specifically, in 2015 the Company enhanced its processes
for and the documentation of review controls that relate to (a) accounting estimates; (b) impairment of long-lived assets; and
(c) the budgeting process. The specific improvements that the Company made are as follows:</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(a)</TD><TD><FONT STYLE="font-size: 12pt">With respect to accounting estimates, the improvement consisted of:</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 12pt">&#183;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt">the update of criteria used to calculate the provision
for inventory obsolescence, in light of the new production times derived from the implementation of the Moving Line, together with
the addition of memoranda on the provision, documenting the analysis performed by both the control owners and the reviewers;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 12pt">&#183;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt">the addition of memoranda on the provision for doubtful
accounts (replacing the email exchange previously used as evidence of the work performed by the control owners and the reviewers),
with the description of the historical trends used as basis for the calculation, together with the customer risk level used to
refine and adapt the calculation to specific customers, and the documentation of the meetings held with the credit manager to segregate
customers according to their risk; and</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 12pt">&#183;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt">the addition of memoranda on the warranty provision
(replacing the email exchange previously used as evidence of the work performed by the control owners and the reviewers), with
a detailed explanation of the historic claim trends used to perform the calculation (<I>i.e.</I> a historical period of six years)
and the documentation of enquiries made to the Corporate Quality division.</FONT></TD></TR></TABLE>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-size: 12pt">(b)</FONT></TD><TD><FONT STYLE="font-size: 12pt">With respect to the impairment of long-lived assets, the improvement consisted of the addition
of memoranda (replacing the email exchange previously used as evidence of the work performed by the control owners and the reviewers)
to document the meetings held among process owners where they discussed and determined the assumptions used in the calculation
and its accuracy.</FONT></TD></TR></TABLE>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-size: 12pt">(c)</FONT></TD><TD><FONT STYLE="font-size: 12pt">With respect to management review controls over the budgeting process, the enhancement consisted
of:</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 12pt">&#183;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt">the inclusion of minutes from meetings held among
process owners in relation to major budget assumptions (<I>i.e.</I> top line sales volume objective, costs of transformation, cost
of raw materials, transport costs and general costs), replacing the email exchange previously used as evidence of the work performed
by the control owners and the reviewers; and</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 12pt">&#183;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt">the introduction of monthly controls (as compared
to the quarterly controls performed in prior years) to monitor actual costs against the budget (<I>e.g.</I> monitoring top line
sales volume, production volumes, cost of leather, highly-consumed materials, raw materials costs, production performance and transport
costs). </FONT></TD></TR></TABLE>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">Finally, a control suite was enhanced for all custom reports
derived from the Company&rsquo;s IT</P>


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<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">system in order to ensure the integrity, completeness and
accuracy of underlying data used by control owners in performing their monitoring activities. The control suite verifies the consistency
of the results obtained through custom reports against those obtained through standard reports, thereby ensuring consistency between
the custom reports and the excel spreadsheets used in the execution of controls and documenting the results of the activities performed.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 0 1in"><B>&nbsp;</B></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><B><U>Review of manual journal entries</U></B></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">As described above, during 2015, the Company identified that
potential SOD conflicts existed within its IT systems. Also in consideration of the review of transactions which were made by personnel
with potentially conflicting access rights (as described above), the Company subsequently determined it prudent to also extend
its testing procedures over manual journal entries. Whereas, in prior years, the control was performed excluding routine transactions
from the testing population and using a threshold of Euro 500 thousand, in 2015 it was enhanced to include both routine and non-routine
transactions. The execution of such testing revealed, however, the control to be deficient, in that the threshold of Euro 500 thousand
was not sufficiently precise. While performing the evaluation of the severity of this deficiency in order to understand the magnitude
of the related potential misstatement, the Company, during its FSCP, determined it would perform an additional testing by using
a threshold of Euro 100 thousand, plus testing a sample of journal entries less than the revised threshold.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">Such incremental control activities, performed in March and
April 2016, resulted in either (i) the identification of manual journal entries related to routine transactions for which tests
of controls over other business processes had already proved effective or (ii) the identification of manual journal entries not
subject to other control activities for which, therefore, supporting documentation was obtained, reviewed and evaluated to determine
the appropriateness of the manual journal entries. This change in threshold and testing population therefore greatly increased
the number of items to be tested and analyzed and therefore contributed significantly to the delay in completion of the Company&rsquo;s
ICOFR assessment.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><B><U>Routine Transactions</U></B></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">Between June and July 2015, further to the completion of
the implementation of the Moving Line in the Italian plants, the Company updated its control suite relating to core business processes
and, in particular, over the standard cost of products that was impacted by the implementation of the lean production practices.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">The Company also assessed whether to further refine controls
on discounts and manual prices, in consideration of the impacts on sale prices of the new standard costs of products as modified
by the introduction of the Moving Line.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">As a result of such assessment, the following controls were
refined by including the following monitoring (detect) controls:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 12pt">&#183;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt">the review of standard costs of the new products
against similar products and target price, with any deviations being subject to further testing and investigation; and</FONT></TD></TR></TABLE>


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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 12pt">&#183;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt">the review of manual prices and discounts, in addition
to the existing preventing control aimed to ensure appropriate authorizations of such manual prices and discounts. </FONT></TD></TR></TABLE>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">For each of these controls that relied on custom reports
from IT, the Company implemented and tested controls that were put in place to ensure the integrity, completeness and accuracy
of underlying data, used by control owners in performing their monitoring activities. The control suite verifies the consistency
of the results obtained through custom reports against those obtained through standard reports, thereby ensuring consistency between
the custom reports and the excel spreadsheets used in the execution of controls and documenting the results of the activities performed.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><I>2.</I></TD><TD><FONT STYLE="letter-spacing: 0.05pt"><I>P</I></FONT><I>le<FONT STYLE="letter-spacing: -0.05pt">a</FONT>se tell us wh<FONT STYLE="letter-spacing: -0.05pt">e</FONT>ther
<FONT STYLE="letter-spacing: -0.25pt">y</FONT><FONT STYLE="letter-spacing: 0.1pt">o</FONT>ur <FONT STYLE="letter-spacing: -0.05pt">a</FONT>ssessment
of the <FONT STYLE="letter-spacing: 0.1pt">n</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT>w or <FONT STYLE="letter-spacing: -0.1pt">e</FONT>nh<FONT STYLE="letter-spacing: -0.05pt">a</FONT>n<FONT STYLE="letter-spacing: 0.05pt">c</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT>d
<FONT STYLE="letter-spacing: -0.05pt">c</FONT>ontrols <FONT STYLE="letter-spacing: 0.1pt">r</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT><FONT STYLE="letter-spacing: 0.1pt">s</FONT>ul<FONT STYLE="letter-spacing: 0.05pt">t</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT>d
in identifi<FONT STYLE="letter-spacing: -0.05pt">ca</FONT>t<FONT STYLE="letter-spacing: 0.05pt">i</FONT>on of <FONT STYLE="letter-spacing: -0.05pt">a</FONT><FONT STYLE="letter-spacing: 0.25pt">n</FONT>y
d<FONT STYLE="letter-spacing: 0.05pt">e</FONT>fi<FONT STYLE="letter-spacing: -0.05pt">c</FONT>ien<FONT STYLE="letter-spacing: -0.05pt">c</FONT>ies,
<FONT STYLE="letter-spacing: -0.05pt">a</FONT>nd <FONT STYLE="letter-spacing: 0.15pt">i</FONT>f so, d<FONT STYLE="letter-spacing: -0.05pt">e</FONT>s<FONT STYLE="letter-spacing: -0.05pt">c</FONT>r<FONT STYLE="letter-spacing: 0.1pt">i</FONT>be
the n<FONT STYLE="letter-spacing: -0.05pt">a</FONT>ture <FONT STYLE="letter-spacing: -0.05pt">a</FONT>nd how t<FONT STYLE="letter-spacing: 0.1pt">h</FONT>e
sev<FONT STYLE="letter-spacing: -0.1pt">e</FONT>ri<FONT STYLE="letter-spacing: 0.25pt">t</FONT>y of <FONT STYLE="letter-spacing: -0.05pt">eac</FONT>h
<FONT STYLE="letter-spacing: 0.1pt">w</FONT><FONT STYLE="letter-spacing: -0.05pt">a</FONT>s ev<FONT STYLE="letter-spacing: -0.1pt">a</FONT>l<FONT STYLE="letter-spacing: 0.15pt">u</FONT><FONT STYLE="letter-spacing: -0.05pt">a</FONT>ted,
indiv<FONT STYLE="letter-spacing: 0.05pt">i</FONT>du<FONT STYLE="letter-spacing: -0.05pt">a</FONT>l<FONT STYLE="letter-spacing: 0.15pt">l</FONT>y
<FONT STYLE="letter-spacing: -0.05pt">a</FONT>nd in combina<FONT STYLE="letter-spacing: 0.1pt">t</FONT>ion wi<FONT STYLE="letter-spacing: 0.05pt">t</FONT>h
othe<FONT STYLE="letter-spacing: -0.05pt">r</FONT>s if <FONT STYLE="letter-spacing: -0.05pt">a</FONT>ppl<FONT STYLE="letter-spacing: 0.05pt">i</FONT><FONT STYLE="letter-spacing: -0.05pt">c</FONT><FONT STYLE="letter-spacing: 0.05pt">a</FONT>ble.</I></TD></TR></TABLE>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"><I>&nbsp;</I></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">The new and/or enhanced controls pertaining to management
review controls, review of manual journal entries and routine transactions resulted in the identification of one control deficiency
connected to the threshold used on manual journal entries, as further described in our response to question 3 below. The Company
also identified deficiencies in ICOFR that related to the other factors and events that occurred in 2015 (as described in our response
above), which did impact and delay the Company&rsquo;s assessment of the effectiveness of its ICOFR and result in the delayed filing
of the 2015 Form 20-F.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">The Company&rsquo;s assessment of the effectiveness of ICOFR
resulted in the identification of a number of deficiencies, mainly relating to IT issues (connected with the incorrect management
of user profiles in IT systems) and the FSCP.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">The Company assessed such deficiencies for their severity
in accordance with Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934 (the &ldquo;<U>Exchange Act</U>&rdquo;),
the COSO framework, as well as PCAOB standards and releases. As part of its evaluation of the severity of the identified deficiencies,
the Company took into account other existing controls that compensated for certain of the deficient ones. The Company then undertook
an evaluation of the effectiveness of such compensating controls, whereby it reviewed processes performed by the various process
owners, collected the underlying supporting data and discussed its findings with the Company&rsquo;s Audit Committee and external
auditors. Since the underlying testing procedures were, as it relates to SOD in particular, not completed until April 2016, the
evaluation process thereon could not be completed on the initially planned schedule and took longer than expected, given the nature
of the deficiencies identified.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">As a result of the assessment made, the identified deficiencies
were individually assessed to be control deficiencies.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">The Company then considered whether the identified deficiencies
could represent, in the aggregate, a material weakness or a significant deficiency in ICOFR. The evaluation, in the aggregate,
resulted in the identification of two significant deficiencies, and in particular:</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 12pt">1.</FONT></TD><TD><FONT STYLE="font-size: 12pt"><I>Incorrect management of user profiles in IT systems.</I> User profiles for the IT systems
were not always consistent with the user&rsquo;s organizational position and/or SOD principles. Notwithstanding the fact that the
testing of transactions posted during 2015 (as more fully described in our response to question 1 above) proved effective and no
unauthorized transactions were detected, the Company determined this matter warranted the attention of the Audit Committee. The
Company also determined to commence a project to better manage access to the IT systems in accordance with SOD principles; and</FONT></TD></TR></TABLE>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 12pt">2.</FONT></TD><TD><FONT STYLE="font-size: 12pt"><I>Ineffective controls over the FSCP. </I>On an aggregated basis, some control deficiencies
were identified in relation to the design and/or execution of the controls around the Company&rsquo;s FSCP, including. </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 12pt">&#183;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt">Control activities failed to completely identify
related parties in compliance with AS 18. To this end, on March 23, 2016, the Company&rsquo;s Board of Directors adopted a procedure
to manage related party transactions and established a committee to evaluate significant related party transactions;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 12pt">&#183;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt">A deficiency was identified in relation to the precision
of the Euro 500 thousand threshold used for manual journal entries; and</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 12pt">&#183;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt">Some deficiencies were identified regarding the timely
execution and proper documentation of control activities.</FONT></TD></TR></TABLE>

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 0 0 1in">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">The identification of the above two significant deficiencies
was communicated to the Audit Committee on May 19, 2016, together with the main guidelines for the remediation plan to be implemented
throughout 2016.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">During 2016, such remediation plan was implemented and monitored
on a monthly basis by the Audit Committee. No deficiencies connected with the above items emerged during the Company&rsquo;s preliminary
ICOFR assessment, performed in December 2016, and they are not expected to emerge in the final ICOFR assessment, which is being
finalized.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><I>3.</I></TD><TD><I>Your <FONT STYLE="letter-spacing: -0.05pt">re</FONT>sponse indi<FONT STYLE="letter-spacing: 0.1pt">c</FONT><FONT STYLE="letter-spacing: -0.05pt">a</FONT>tes
<FONT STYLE="letter-spacing: 0.1pt">t</FONT>h<FONT STYLE="letter-spacing: -0.05pt">a</FONT>t, <FONT STYLE="letter-spacing: 0.05pt">i</FONT>n
i<FONT STYLE="letter-spacing: 0.05pt">m</FONT>p<FONT STYLE="letter-spacing: -0.05pt">r</FONT>oving a s<FONT STYLE="letter-spacing: 0.05pt">e</FONT>ri<FONT STYLE="letter-spacing: -0.05pt">e</FONT>s
of m<FONT STYLE="letter-spacing: -0.05pt">a</FONT>n<FONT STYLE="letter-spacing: 0.05pt">a</FONT><FONT STYLE="letter-spacing: -0.1pt">g</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT>ment
r<FONT STYLE="letter-spacing: -0.1pt">e</FONT>view <FONT STYLE="letter-spacing: 0.05pt">c</FONT>ontrols <FONT STYLE="letter-spacing: 0.05pt">t</FONT>h<FONT STYLE="letter-spacing: -0.05pt">a</FONT>t
r<FONT STYLE="letter-spacing: -0.1pt">e</FONT>late to <FONT STYLE="letter-spacing: 0.05pt">t</FONT>he pr<FONT STYLE="letter-spacing: 0.05pt">o</FONT><FONT STYLE="letter-spacing: -0.05pt">ce</FONT>ss
of <FONT STYLE="letter-spacing: 0.1pt">p</FONT><FONT STYLE="letter-spacing: 0.05pt">r</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT>p<FONT STYLE="letter-spacing: -0.05pt">a</FONT>ri<FONT STYLE="letter-spacing: 0.2pt">n</FONT>g
<FONT STYLE="letter-spacing: -0.05pt">f</FONT>ina<FONT STYLE="letter-spacing: 0.1pt">n</FONT><FONT STYLE="letter-spacing: -0.05pt">c</FONT>ial
st<FONT STYLE="letter-spacing: -0.05pt">a</FONT>tem<FONT STYLE="letter-spacing: 0.05pt">e</FONT>nts and the <FONT STYLE="letter-spacing: -0.05pt">re</FONT>lat<FONT STYLE="letter-spacing: -0.05pt">e</FONT>d
discl<FONT STYLE="letter-spacing: 0.1pt">o</FONT>sur<FONT STYLE="letter-spacing: -0.05pt">e</FONT>s, <FONT STYLE="letter-spacing: -0.25pt">y</FONT>ou
more thoro<FONT STYLE="letter-spacing: 0.1pt">u</FONT><FONT STYLE="letter-spacing: -0.1pt">g</FONT>h<FONT STYLE="letter-spacing: 0.15pt">l</FONT>y
<FONT STYLE="letter-spacing: 0.1pt">d</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT>s<FONT STYLE="letter-spacing: -0.05pt">c</FONT>ri<FONT STYLE="letter-spacing: 0.1pt">b</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT>d,
<FONT STYLE="letter-spacing: -0.05pt">a</FONT>mo<FONT STYLE="letter-spacing: 0.15pt">n</FONT>g othe<FONT STYLE="letter-spacing: -0.05pt">r</FONT>s,
the l<FONT STYLE="letter-spacing: -0.05pt">e</FONT><FONT STYLE="letter-spacing: 0.1pt">v</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT>l
of p<FONT STYLE="letter-spacing: -0.05pt">r</FONT><FONT STYLE="letter-spacing: 0.05pt">e</FONT><FONT STYLE="letter-spacing: -0.05pt">c</FONT>is<FONT STYLE="letter-spacing: 0.05pt">i</FONT>on
<FONT STYLE="letter-spacing: -0.05pt">a</FONT>nd <FONT STYLE="letter-spacing: -0.05pt">a</FONT>n<FONT STYLE="letter-spacing: -0.05pt">a</FONT><FONT STYLE="letter-spacing: 0.25pt">l</FONT><FONT STYLE="letter-spacing: -0.25pt">y</FONT><FONT STYLE="letter-spacing: 0.1pt">s</FONT>is
<FONT STYLE="letter-spacing: 0.05pt">t</FONT>h<FONT STYLE="letter-spacing: -0.05pt">re</FONT>shold used <FONT STYLE="letter-spacing: 0.1pt">b</FONT>y
t<FONT STYLE="letter-spacing: 0.15pt">h</FONT>e <FONT STYLE="letter-spacing: -0.05pt">c</FONT>ontrol own<FONT STYLE="letter-spacing: 0.05pt">e</FONT>r
in <FONT STYLE="letter-spacing: -0.05pt">e</FONT><FONT STYLE="letter-spacing: 0.1pt">x</FONT><FONT STYLE="letter-spacing: -0.05pt">ec</FONT>ut<FONT STYLE="letter-spacing: 0.05pt">i</FONT>ng
the <FONT STYLE="letter-spacing: 0.05pt">r</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT>view <FONT STYLE="letter-spacing: -0.05pt">c</FONT>ontrols.
To the <FONT STYLE="letter-spacing: -0.05pt">e</FONT><FONT STYLE="letter-spacing: 0.1pt">x</FONT>tent <FONT STYLE="letter-spacing: -0.1pt">y</FONT>ou
<FONT STYLE="letter-spacing: -0.05pt">c</FONT>h<FONT STYLE="letter-spacing: -0.05pt">a</FONT><FONT STYLE="letter-spacing: 0.1pt">n</FONT><FONT STYLE="letter-spacing: -0.1pt">g</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT>d
the l<FONT STYLE="letter-spacing: -0.05pt">e</FONT>v<FONT STYLE="letter-spacing: -0.05pt">e</FONT>l of p<FONT STYLE="letter-spacing: 0.05pt">r</FONT><FONT STYLE="letter-spacing: -0.05pt">ec</FONT>is<FONT STYLE="letter-spacing: 0.05pt">i</FONT>on
or <FONT STYLE="letter-spacing: 0.15pt">t</FONT>he <FONT STYLE="letter-spacing: -0.05pt">a</FONT>n<FONT STYLE="letter-spacing: -0.05pt">a</FONT><FONT STYLE="letter-spacing: 0.25pt">l</FONT><FONT STYLE="letter-spacing: -0.25pt">y</FONT>sis
thr<FONT STYLE="letter-spacing: -0.05pt">e</FONT>shold us<FONT STYLE="letter-spacing: 0.05pt">e</FONT>d in <FONT STYLE="letter-spacing: 0.05pt">t</FONT>h<FONT STYLE="letter-spacing: -0.05pt">e</FONT>se
<FONT STYLE="letter-spacing: -0.05pt">c</FONT>ontrols, <FONT STYLE="letter-spacing: 0.05pt">i</FONT>n<FONT STYLE="letter-spacing: -0.05pt">c</FONT>lud<FONT STYLE="letter-spacing: 0.05pt">i</FONT>ng
in <FONT STYLE="letter-spacing: 0.05pt">t</FONT>he r<FONT STYLE="letter-spacing: -0.1pt">e</FONT>view of <FONT STYLE="letter-spacing: 0.1pt">m</FONT><FONT STYLE="letter-spacing: -0.05pt">a</FONT>nu<FONT STYLE="letter-spacing: -0.05pt">a</FONT>l
<FONT STYLE="letter-spacing: 0.05pt">j</FONT>ourn<FONT STYLE="letter-spacing: -0.1pt">a</FONT>l <FONT STYLE="letter-spacing: -0.05pt">e</FONT>ntri<FONT STYLE="letter-spacing: -0.05pt">e</FONT>s,
pl<FONT STYLE="letter-spacing: -0.05pt">ea</FONT>se <FONT STYLE="letter-spacing: 0.15pt">t</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT>ll
us the n<FONT STYLE="letter-spacing: -0.05pt">e</FONT>w <FONT STYLE="letter-spacing: -0.05pt">a</FONT>nd p<FONT STYLE="letter-spacing: 0.05pt">r</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT>vious
lev<FONT STYLE="letter-spacing: -0.05pt">e</FONT>ls of pr<FONT STYLE="letter-spacing: -0.1pt">e</FONT><FONT STYLE="letter-spacing: -0.05pt">c</FONT>is<FONT STYLE="letter-spacing: 0.05pt">i</FONT>on
<FONT STYLE="letter-spacing: -0.05pt">a</FONT>nd/or thr<FONT STYLE="letter-spacing: -0.05pt">e</FONT>sholds a<FONT STYLE="letter-spacing: -0.05pt">n</FONT>d
the ma<FONT STYLE="letter-spacing: -0.15pt">g</FONT>ni<FONT STYLE="letter-spacing: 0.05pt">t</FONT>ude of it<FONT STYLE="letter-spacing: -0.05pt">e</FONT>ms
<FONT STYLE="letter-spacing: 0.1pt">r</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT>vi<FONT STYLE="letter-spacing: 0.1pt">e</FONT>w<FONT STYLE="letter-spacing: -0.05pt">e</FONT>d
und<FONT STYLE="letter-spacing: -0.05pt">e</FONT>r both the <FONT STYLE="letter-spacing: 0.1pt">n</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT>w
<FONT STYLE="letter-spacing: -0.05pt">a</FONT>nd p<FONT STYLE="letter-spacing: -0.05pt">re</FONT>vious lev<FONT STYLE="letter-spacing: -0.05pt">e</FONT>l
of p<FONT STYLE="letter-spacing: -0.05pt">r</FONT><FONT STYLE="letter-spacing: 0.05pt">e</FONT><FONT STYLE="letter-spacing: -0.05pt">c</FONT>is<FONT STYLE="letter-spacing: 0.05pt">i</FONT>o<FONT STYLE="letter-spacing: 0.05pt">n</FONT>/thr<FONT STYLE="letter-spacing: -0.05pt">e</FONT>shold.
<FONT STYLE="letter-spacing: 0.05pt">P</FONT>le<FONT STYLE="letter-spacing: -0.05pt">a</FONT>se <FONT STYLE="letter-spacing: -0.05pt">a</FONT>lso
<FONT STYLE="letter-spacing: 0.05pt">t</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT>ll us how the m<FONT STYLE="letter-spacing: 0.1pt">a</FONT><FONT STYLE="letter-spacing: -0.1pt">g</FONT>ni<FONT STYLE="letter-spacing: 0.05pt">t</FONT>ude
of it<FONT STYLE="letter-spacing: -0.05pt">e</FONT>ms not r<FONT STYLE="letter-spacing: -0.05pt">e</FONT>vie<FONT STYLE="letter-spacing: -0.05pt">we</FONT>d
und<FONT STYLE="letter-spacing: -0.05pt">e</FONT>r both the n<FONT STYLE="letter-spacing: -0.05pt">e</FONT>w <FONT STYLE="letter-spacing: -0.05pt">a</FONT>nd
<FONT STYLE="letter-spacing: 0.1pt">p</FONT>r<FONT STYLE="letter-spacing: -0.1pt">e</FONT>vious lev<FONT STYLE="letter-spacing: -0.05pt">e</FONT>l
of p<FONT STYLE="letter-spacing: 0.05pt">r</FONT><FONT STYLE="letter-spacing: -0.05pt">ec</FONT>is<FONT STYLE="letter-spacing: 0.05pt">i</FONT>o<FONT STYLE="letter-spacing: 0.2pt">n</FONT>/thr<FONT STYLE="letter-spacing: -0.05pt">e</FONT>shold
<FONT STYLE="letter-spacing: -0.05pt">c</FONT>ompa<FONT STYLE="letter-spacing: -0.05pt">re</FONT>s to <FONT STYLE="letter-spacing: -0.1pt">y</FONT>our
d<FONT STYLE="letter-spacing: -0.05pt">e</FONT>te<FONT STYLE="letter-spacing: -0.05pt">r</FONT>m<FONT STYLE="letter-spacing: 0.05pt">i</FONT>n<FONT STYLE="letter-spacing: -0.05pt">a</FONT>t<FONT STYLE="letter-spacing: 0.05pt">i</FONT>on
of mat<FONT STYLE="letter-spacing: -0.05pt">e</FONT>r<FONT STYLE="letter-spacing: 0.1pt">i</FONT><FONT STYLE="letter-spacing: -0.05pt">a</FONT>l<FONT STYLE="letter-spacing: 0.05pt">i</FONT><FONT STYLE="letter-spacing: 0.15pt">t</FONT>y
for <FONT STYLE="letter-spacing: -0.25pt">y</FONT>o<FONT STYLE="letter-spacing: 0.1pt">u</FONT>r <FONT STYLE="letter-spacing: -0.05pt">f</FONT>inan<FONT STYLE="letter-spacing: -0.05pt">c</FONT><FONT STYLE="letter-spacing: 0.15pt">i</FONT><FONT STYLE="letter-spacing: -0.05pt">a</FONT>l
s<FONT STYLE="letter-spacing: 0.05pt">t</FONT><FONT STYLE="letter-spacing: -0.05pt">a</FONT>tements.</I></TD></TR></TABLE>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><I>&nbsp;</I></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">As indicated in our response to question 1 above, the improvements
made in management review controls were mainly related to the enhancement of the documentation prepared by the reviewers in the
performance of their review controls and not to the level of precision or thresholds used in executing such controls, which were
unchanged as compared to prior years.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">As it pertains to the thresholds used to test manual journal
entries, as more fully described above,</P>


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<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">in 2015, following the potential exceptions identified in
the Company&rsquo;s IT SOD, the Company considered it prudent to include routine transactions in the testing population of manual
journal entries, while confirming the testing threshold of Euro 500 thousand used up to prior years. Although this testing resulted
in coverage of nearly 95% of the total manual journal entries, the threshold used proved deficient because it was not sufficiently
precise in consideration of the volume of untested transactions.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">Following the identification of this deficiency, the Company
needed to assess it for severity. As such, in March and April 2016 the Company performed an additional testing activity on manual
journal entries by lowering the threshold to Euro 100 thousand for the testing population and also testing a sample of manual journal
entries below the revised threshold. This supplemental activity, which took longer than expected to complete, resulted in a coverage
over manual journal entries of 99.8%, with an &ldquo;untested&rdquo; population of manual journal entries of Euro 984 thousand,
which was significantly lower than the Company&rsquo;s materiality level on ICOFR assessment (which was Euro 1.8 million). No exceptions
on the authorization or the appropriateness of such manual journal entries were noted from the lower testing threshold and, therefore,
the Company confirmed the absence of a probability of a material misstatement in the financial statements connected to such deficiency.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><I>4.</I></TD><TD><FONT STYLE="letter-spacing: 0.05pt"><I>W</I></FONT><I>e note th<FONT STYLE="letter-spacing: -0.05pt">a</FONT>t <FONT STYLE="letter-spacing: 0.05pt">P</FONT>rin<FONT STYLE="letter-spacing: -0.05pt">c</FONT>ip<FONT STYLE="letter-spacing: 0.05pt">l</FONT>e
#9 of the 20<FONT STYLE="letter-spacing: 0.05pt">1</FONT>3 CO<FONT STYLE="letter-spacing: 0.05pt">S</FONT>O <FONT STYLE="letter-spacing: -0.1pt">F</FONT><FONT STYLE="letter-spacing: 0.05pt">r</FONT><FONT STYLE="letter-spacing: -0.05pt">a</FONT>me<FONT STYLE="letter-spacing: -0.05pt">w</FONT>o<FONT STYLE="letter-spacing: -0.05pt">r</FONT>k,
whi<FONT STYLE="letter-spacing: -0.05pt">c</FONT>h <FONT STYLE="letter-spacing: -0.25pt">y</FONT>ou u<FONT STYLE="letter-spacing: 0.1pt">s</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT>d
<FONT STYLE="letter-spacing: 0.05pt">a</FONT>s a b<FONT STYLE="letter-spacing: -0.1pt">a</FONT>sis <FONT STYLE="letter-spacing: -0.05pt">f</FONT>or
<FONT STYLE="letter-spacing: -0.25pt">y</FONT><FONT STYLE="letter-spacing: 0.1pt">o</FONT>ur <FONT STYLE="letter-spacing: -0.05pt">a</FONT>ssessment
of the <FONT STYLE="letter-spacing: -0.05pt">e</FONT><FONT STYLE="letter-spacing: 0.05pt">f</FONT>f<FONT STYLE="letter-spacing: -0.1pt">e</FONT><FONT STYLE="letter-spacing: -0.05pt">c</FONT>t<FONT STYLE="letter-spacing: 0.05pt">i</FONT>v<FONT STYLE="letter-spacing: -0.05pt">e</FONT>n<FONT STYLE="letter-spacing: -0.05pt">e</FONT>ss
<FONT STYLE="letter-spacing: 0.15pt">o</FONT>f int<FONT STYLE="letter-spacing: -0.05pt">e</FONT>rn<FONT STYLE="letter-spacing: -0.1pt">a</FONT>l
c<FONT STYLE="letter-spacing: 0.1pt">o</FONT>ntrol ov<FONT STYLE="letter-spacing: -0.05pt">e</FONT>r <FONT STYLE="letter-spacing: -0.05pt">f</FONT>inan<FONT STYLE="letter-spacing: -0.05pt">c</FONT><FONT STYLE="letter-spacing: 0.15pt">i</FONT><FONT STYLE="letter-spacing: -0.05pt">a</FONT>l
r<FONT STYLE="letter-spacing: -0.05pt">e</FONT>po<FONT STYLE="letter-spacing: 0.05pt">r</FONT>t<FONT STYLE="letter-spacing: 0.05pt">i</FONT>n<FONT STYLE="letter-spacing: -0.1pt">g</FONT>,
<FONT STYLE="letter-spacing: -0.05pt">re</FONT>qui<FONT STYLE="letter-spacing: 0.1pt">r</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT>s
<FONT STYLE="letter-spacing: -0.05pt">e</FONT>nt<FONT STYLE="letter-spacing: 0.05pt">i</FONT>t<FONT STYLE="letter-spacing: 0.05pt">i</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT>s
to h<FONT STYLE="letter-spacing: -0.05pt">a</FONT>ve <FONT STYLE="letter-spacing: -0.05pt">c</FONT>ontrols <FONT STYLE="letter-spacing: 0.05pt">i</FONT>n
pla<FONT STYLE="letter-spacing: -0.05pt">c</FONT>e to <FONT STYLE="letter-spacing: 0.05pt">i</FONT>d<FONT STYLE="letter-spacing: -0.05pt">e</FONT>nt<FONT STYLE="letter-spacing: 0.05pt">i</FONT><FONT STYLE="letter-spacing: 0.2pt">f</FONT>y
<FONT STYLE="letter-spacing: -0.05pt">a</FONT>nd <FONT STYLE="letter-spacing: -0.05pt">a</FONT><FONT STYLE="letter-spacing: 0.1pt">s</FONT>s<FONT STYLE="letter-spacing: -0.05pt">e</FONT>ss
ch<FONT STYLE="letter-spacing: -0.05pt">a</FONT><FONT STYLE="letter-spacing: 0.1pt">n</FONT><FONT STYLE="letter-spacing: -0.1pt">g</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT>s
that <FONT STYLE="letter-spacing: -0.05pt">c</FONT>ould si<FONT STYLE="letter-spacing: -0.1pt">g</FONT>nifi<FONT STYLE="letter-spacing: 0.05pt">c</FONT><FONT STYLE="letter-spacing: -0.05pt">a</FONT>nt<FONT STYLE="letter-spacing: 0.15pt">l</FONT>y
i<FONT STYLE="letter-spacing: 0.05pt">m</FONT>p<FONT STYLE="letter-spacing: -0.05pt">ac</FONT>t <FONT STYLE="letter-spacing: 0.05pt">t</FONT>he
<FONT STYLE="letter-spacing: 0.1pt">s</FONT><FONT STYLE="letter-spacing: -0.25pt">y</FONT>stem of int<FONT STYLE="letter-spacing: 0.15pt">e</FONT>rn<FONT STYLE="letter-spacing: -0.1pt">a</FONT>l
cont<FONT STYLE="letter-spacing: -0.05pt">r</FONT>ol. <FONT STYLE="letter-spacing: 0.05pt">P</FONT>le<FONT STYLE="letter-spacing: -0.05pt">a</FONT>se
tell <FONT STYLE="letter-spacing: 0.15pt">u</FONT>s how <FONT STYLE="letter-spacing: -0.25pt">y</FONT>our <FONT STYLE="letter-spacing: -0.05pt">e</FONT>v<FONT STYLE="letter-spacing: -0.05pt">a</FONT>luation
of the <FONT STYLE="letter-spacing: -0.05pt">e</FONT>f<FONT STYLE="letter-spacing: -0.05pt">f</FONT><FONT STYLE="letter-spacing: 0.05pt">e</FONT><FONT STYLE="letter-spacing: -0.05pt">c</FONT>t<FONT STYLE="letter-spacing: 0.05pt">i</FONT>v<FONT STYLE="letter-spacing: -0.05pt">e</FONT>n<FONT STYLE="letter-spacing: -0.05pt">e</FONT>ss
of <FONT STYLE="letter-spacing: -0.25pt">y</FONT>o<FONT STYLE="letter-spacing: 0.1pt">u</FONT>r <FONT STYLE="letter-spacing: -0.05pt">r</FONT>isk
<FONT STYLE="letter-spacing: -0.05pt">a</FONT>ssessment p<FONT STYLE="letter-spacing: -0.05pt">r</FONT>o<FONT STYLE="letter-spacing: 0.05pt">c</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT>ss
con<FONT STYLE="letter-spacing: 0.1pt">s</FONT>ide<FONT STYLE="letter-spacing: -0.05pt">re</FONT>d the <FONT STYLE="letter-spacing: -0.05pt">&ldquo;</FONT>u<FONT STYLE="letter-spacing: 0.1pt">n</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT><FONT STYLE="letter-spacing: 0.1pt">x</FONT>p<FONT STYLE="letter-spacing: -0.05pt">ec</FONT>ted&rdquo;
<FONT STYLE="letter-spacing: -0.05pt">c</FONT>h<FONT STYLE="letter-spacing: -0.05pt">a</FONT><FONT STYLE="letter-spacing: 0.1pt">n</FONT><FONT STYLE="letter-spacing: -0.1pt">g</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT>s
<FONT STYLE="letter-spacing: -0.25pt">y</FONT>ou made to <FONT STYLE="letter-spacing: -0.25pt">y</FONT>o<FONT STYLE="letter-spacing: 0.1pt">u</FONT>r
int<FONT STYLE="letter-spacing: -0.05pt">e</FONT>rn<FONT STYLE="letter-spacing: -0.1pt">a</FONT>l <FONT STYLE="letter-spacing: -0.05pt">c</FONT><FONT STYLE="letter-spacing: 0.1pt">o</FONT>ntrol
ov<FONT STYLE="letter-spacing: -0.05pt">e</FONT>r <FONT STYLE="letter-spacing: -0.05pt">f</FONT>inan<FONT STYLE="letter-spacing: -0.05pt">c</FONT><FONT STYLE="letter-spacing: 0.15pt">i</FONT><FONT STYLE="letter-spacing: -0.05pt">a</FONT>l
r<FONT STYLE="letter-spacing: -0.05pt">e</FONT>po<FONT STYLE="letter-spacing: 0.05pt">r</FONT>t<FONT STYLE="letter-spacing: 0.05pt">i</FONT>ng
that led to d<FONT STYLE="letter-spacing: -0.05pt">e</FONT>l<FONT STYLE="letter-spacing: 0.2pt">a</FONT><FONT STYLE="letter-spacing: -0.25pt">y</FONT>s
in <FONT STYLE="letter-spacing: -0.05pt">c</FONT>omp<FONT STYLE="letter-spacing: 0.05pt">l</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT>t<FONT STYLE="letter-spacing: 0.05pt">i</FONT>ng
the <FONT STYLE="letter-spacing: -0.05pt">a</FONT>ssessment of <FONT STYLE="letter-spacing: -0.25pt">y</FONT>our i<FONT STYLE="letter-spacing: 0.05pt">n</FONT>te<FONT STYLE="letter-spacing: -0.05pt">r</FONT><FONT STYLE="letter-spacing: 0.1pt">n</FONT><FONT STYLE="letter-spacing: -0.05pt">a</FONT>l
cont<FONT STYLE="letter-spacing: -0.05pt">r</FONT>ol over <FONT STYLE="letter-spacing: -0.05pt">f</FONT>i<FONT STYLE="letter-spacing: 0.15pt">n</FONT><FONT STYLE="letter-spacing: -0.05pt">a</FONT>n<FONT STYLE="letter-spacing: -0.05pt">c</FONT>ial
<FONT STYLE="letter-spacing: 0.05pt">r</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT>porting <FONT STYLE="letter-spacing: -0.05pt">a</FONT>nd
the <FONT STYLE="letter-spacing: -0.05pt">f</FONT>i<FONT STYLE="letter-spacing: 0.05pt">l</FONT>i<FONT STYLE="letter-spacing: 0.15pt">n</FONT>g
of <FONT STYLE="letter-spacing: -0.25pt">y</FONT>our <FONT STYLE="letter-spacing: -0.05pt">2</FONT>015 <FONT STYLE="letter-spacing: -0.05pt">F</FONT>o<FONT STYLE="letter-spacing: -0.05pt">r</FONT>m
20<FONT STYLE="letter-spacing: 0.1pt">-</FONT><FONT STYLE="letter-spacing: -0.05pt">F</FONT>. To the <FONT STYLE="letter-spacing: -0.1pt">e</FONT><FONT STYLE="letter-spacing: 0.1pt">x</FONT>tent
<FONT STYLE="letter-spacing: -0.25pt">y</FONT>ou identifi<FONT STYLE="letter-spacing: -0.05pt">e</FONT>d d<FONT STYLE="letter-spacing: 0.05pt">e</FONT>fi<FONT STYLE="letter-spacing: -0.05pt">c</FONT>ien<FONT STYLE="letter-spacing: 0.05pt">c</FONT>ies
<FONT STYLE="letter-spacing: -0.05pt">re</FONT>lat<FONT STYLE="letter-spacing: -0.05pt">e</FONT>d to <FONT STYLE="letter-spacing: 0.05pt">t</FONT>he
<FONT STYLE="letter-spacing: -0.05pt">r</FONT>isk <FONT STYLE="letter-spacing: -0.05pt">a</FONT>ssessment <FONT STYLE="letter-spacing: -0.05pt">c</FONT>omponent,
ple<FONT STYLE="letter-spacing: -0.05pt">a</FONT>se <FONT STYLE="letter-spacing: 0.1pt">d</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT>s<FONT STYLE="letter-spacing: -0.05pt">c</FONT>r<FONT STYLE="letter-spacing: 0.1pt">i</FONT>be
the n<FONT STYLE="letter-spacing: -0.05pt">a</FONT>ture <FONT STYLE="letter-spacing: 0.1pt">o</FONT>f th<FONT STYLE="letter-spacing: -0.05pt">e</FONT>se
<FONT STYLE="letter-spacing: 0.1pt">d</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT><FONT STYLE="letter-spacing: 0.05pt">f</FONT>ici<FONT STYLE="letter-spacing: -0.05pt">e</FONT>n<FONT STYLE="letter-spacing: -0.05pt">c</FONT>ies
<FONT STYLE="letter-spacing: -0.05pt">a</FONT>nd how t<FONT STYLE="letter-spacing: 0.1pt">h</FONT>e se<FONT STYLE="letter-spacing: 0.05pt">v</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT>ri<FONT STYLE="letter-spacing: 0.1pt">t</FONT>y
<FONT STYLE="letter-spacing: 0.1pt">o</FONT>f <FONT STYLE="letter-spacing: -0.1pt">e</FONT><FONT STYLE="letter-spacing: 0.05pt">a</FONT><FONT STYLE="letter-spacing: -0.05pt">c</FONT>h
w<FONT STYLE="letter-spacing: -0.05pt">a</FONT>s ev<FONT STYLE="letter-spacing: -0.1pt">a</FONT>lua<FONT STYLE="letter-spacing: 0.1pt">t</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT>d,
ind<FONT STYLE="letter-spacing: 0.05pt">i</FONT>vidual<FONT STYLE="letter-spacing: 0.15pt">l</FONT>y <FONT STYLE="letter-spacing: -0.05pt">a</FONT>nd
in combination w<FONT STYLE="letter-spacing: 0.15pt">i</FONT>th o<FONT STYLE="letter-spacing: 0.05pt">t</FONT>h<FONT STYLE="letter-spacing: -0.05pt">e</FONT>rs,
if <FONT STYLE="letter-spacing: -0.05pt">a</FONT>ppl<FONT STYLE="letter-spacing: 0.05pt">i</FONT><FONT STYLE="letter-spacing: -0.05pt">ca</FONT>ble.</I></TD></TR></TABLE>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"><I>&nbsp;</I></P>

<P STYLE="font: 12pt/13pt Times New Roman, Times, Serif; margin: 0.8pt 0 0"><FONT STYLE="letter-spacing: 0.05pt">P</FONT>rin<FONT STYLE="letter-spacing: -0.05pt">c</FONT>ip<FONT STYLE="letter-spacing: 0.05pt">l</FONT>e
#9 of the 20<FONT STYLE="letter-spacing: 0.05pt">1</FONT>3 CO<FONT STYLE="letter-spacing: 0.05pt">S</FONT>O <FONT STYLE="letter-spacing: -0.1pt">F</FONT><FONT STYLE="letter-spacing: 0.05pt">r</FONT><FONT STYLE="letter-spacing: -0.05pt">a</FONT>me<FONT STYLE="letter-spacing: -0.05pt">w</FONT>o<FONT STYLE="letter-spacing: -0.05pt">r</FONT>k
requires organizations to identify and assess changes that could significantly impact the system of internal control. Principle
#9 describes &ldquo;points of focus&rdquo; regarding changes in the external environment, the business model and leadership. As
part of the Company&rsquo;s entity-level controls, there are controls in place that address the identification of such changes
that may have an impact on business and/or financial reporting and the need to adopt actions to address such new or changed circumstances.
In particular, changes in external environment are monitored by management by observing changes in the external market and assessing
the potential impact on the Company&rsquo;s operations and financial reporting. Management is assisted by qualified advisors that
help in implementing any law and regulatory changes. With reference to changes in the business model, management performs a risk
assessment to consider how such possible changes might impact the achievement of the Company&rsquo;s objectives. Changes in leadership
are addressed through a succession plan that encompasses main strategic areas.</P>

<P STYLE="font: 12pt/13pt Times New Roman, Times, Serif; margin: 0.8pt 0 0">&nbsp;</P>

<P STYLE="font: 12pt/13pt Times New Roman, Times, Serif; margin: 0.8pt 0 0">The risk assessment process that the Company performed
did not reveal any risk connected with changes in the external environment, the business model and leadership that could significantly</P>


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<P STYLE="font: 12pt/13pt Times New Roman, Times, Serif; margin: 0.8pt 0 0">impact the system of internal control. Furthermore,
as stated in its response to the Staff of December 22, 2016 (the &ldquo;<U>December Response Letter</U>&rdquo;), &ldquo;&hellip;the
delay in completing the assessment of its internal controls over financial reporting, was an unexpected occurrence&hellip;&rdquo;.
The Company was fully aware of the modification it was undertaking to its system of internal control during 2015, but it did not
expect the delay in assessing the results of its assessment.</P>

<P STYLE="font: 12pt/13pt Times New Roman, Times, Serif; margin: 0.8pt 0 0">&nbsp;</P>

<P STYLE="font: 12pt/13pt Times New Roman, Times, Serif; margin: 0.8pt 0 0">As such, there were no deficiencies identified in the
risk assessment component of the Company&rsquo;s system of internal control.</P>

<P STYLE="font: 12pt/13pt Times New Roman, Times, Serif; margin: 0.8pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><I>5.</I></TD><TD><FONT STYLE="letter-spacing: 0.05pt"><I>W</I></FONT><I>e note in <FONT STYLE="letter-spacing: -0.25pt">y</FONT>our <FONT STYLE="letter-spacing: 0.05pt">r</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT>sponse
to prior <FONT STYLE="letter-spacing: -0.05pt">c</FONT>om<FONT STYLE="letter-spacing: 0.05pt">m</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT>nt
<FONT STYLE="letter-spacing: 0.05pt">t</FONT>wo in our letter d<FONT STYLE="letter-spacing: -0.05pt">a</FONT>ted D<FONT STYLE="letter-spacing: -0.05pt">e</FONT><FONT STYLE="letter-spacing: 0.05pt">c</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT>mb<FONT STYLE="letter-spacing: 0.1pt">e</FONT>r
8, <FONT STYLE="letter-spacing: -0.05pt">2</FONT>016 that the<FONT STYLE="letter-spacing: -0.05pt">r</FONT>e w<FONT STYLE="letter-spacing: 0.05pt">e</FONT>re
no ma<FONT STYLE="letter-spacing: 0.1pt">t</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT>ri<FONT STYLE="letter-spacing: -0.05pt">a</FONT>l
c<FONT STYLE="letter-spacing: 0.1pt">h</FONT><FONT STYLE="letter-spacing: -0.05pt">a</FONT>ng<FONT STYLE="letter-spacing: -0.05pt">e</FONT>s
made to <FONT STYLE="letter-spacing: -0.25pt">y</FONT>our fin<FONT STYLE="letter-spacing: -0.05pt">a</FONT><FONT STYLE="letter-spacing: 0.1pt">n</FONT><FONT STYLE="letter-spacing: -0.05pt">c</FONT>ial
st<FONT STYLE="letter-spacing: -0.05pt">a</FONT>tem<FONT STYLE="letter-spacing: -0.05pt">e</FONT>nts <FONT STYLE="letter-spacing: 0.05pt">i</FONT>n<FONT STYLE="letter-spacing: -0.05pt">c</FONT>luded
<FONT STYLE="letter-spacing: 0.1pt">i</FONT>n <FONT STYLE="letter-spacing: -0.25pt">y</FONT>our <FONT STYLE="letter-spacing: -0.05pt">F</FONT>o<FONT STYLE="letter-spacing: -0.05pt">r</FONT>m
20<FONT STYLE="letter-spacing: -0.05pt">-</FONT>F <FONT STYLE="letter-spacing: -0.05pt">f</FONT>i<FONT STYLE="letter-spacing: 0.05pt">l</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT>d
on <FONT STYLE="letter-spacing: 0.1pt">M</FONT><FONT STYLE="letter-spacing: 0.2pt">a</FONT>y <FONT STYLE="letter-spacing: 0.05pt">2</FONT>3,
2<FONT STYLE="letter-spacing: 0.1pt">0</FONT>16 <FONT STYLE="letter-spacing: -0.05pt">c</FONT>ompa<FONT STYLE="letter-spacing: -0.05pt">re</FONT>d
to <FONT STYLE="letter-spacing: 0.05pt">t</FONT>he fin<FONT STYLE="letter-spacing: -0.05pt">a</FONT><FONT STYLE="letter-spacing: 0.1pt">n</FONT><FONT STYLE="letter-spacing: -0.05pt">c</FONT>ial
st<FONT STYLE="letter-spacing: -0.05pt">a</FONT>tem<FONT STYLE="letter-spacing: -0.05pt">e</FONT>nts <FONT STYLE="letter-spacing: 0.05pt">i</FONT>n<FONT STYLE="letter-spacing: -0.05pt">c</FONT>luded
<FONT STYLE="letter-spacing: 0.1pt">i</FONT>n <FONT STYLE="letter-spacing: -0.25pt">y</FONT>our <FONT STYLE="letter-spacing: -0.05pt">F</FONT><FONT STYLE="letter-spacing: 0.15pt">o</FONT>rm
6<FONT STYLE="letter-spacing: -0.05pt">-</FONT>K <FONT STYLE="letter-spacing: -0.05pt">f</FONT>i<FONT STYLE="letter-spacing: 0.05pt">l</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT>d
on Ma<FONT STYLE="letter-spacing: 0.05pt">r</FONT><FONT STYLE="letter-spacing: -0.05pt">c</FONT>h 23, <FONT STYLE="letter-spacing: 0.1pt">2</FONT>016.
<FONT STYLE="letter-spacing: 0.05pt">P</FONT>le<FONT STYLE="letter-spacing: -0.05pt">a</FONT>se <FONT STYLE="letter-spacing: -0.05pt">e</FONT><FONT STYLE="letter-spacing: 0.1pt">x</FONT>plain
<FONT STYLE="letter-spacing: -0.05pt">a</FONT><FONT STYLE="letter-spacing: 0.1pt">n</FONT>y <FONT STYLE="letter-spacing: -0.05pt">a</FONT>djus<FONT STYLE="letter-spacing: 0.05pt">t</FONT>ments,
in<FONT STYLE="letter-spacing: -0.05pt">c</FONT>lud<FONT STYLE="letter-spacing: 0.05pt">i</FONT>ng <FONT STYLE="letter-spacing: -0.1pt">d</FONT>if<FONT STYLE="letter-spacing: -0.05pt">fe</FONT><FONT STYLE="letter-spacing: 0.05pt">r</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT>n<FONT STYLE="letter-spacing: -0.05pt">ce</FONT>s
in <FONT STYLE="letter-spacing: -0.05pt">c</FONT>lassifi<FONT STYLE="letter-spacing: -0.05pt">ca</FONT>t<FONT STYLE="letter-spacing: 0.05pt">i</FONT>ons,
m<FONT STYLE="letter-spacing: -0.05pt">a</FONT>de to <FONT STYLE="letter-spacing: -0.1pt">y</FONT>our <FONT STYLE="letter-spacing: -0.05pt">f</FONT>inan<FONT STYLE="letter-spacing: -0.05pt">c</FONT>ial
st<FONT STYLE="letter-spacing: -0.05pt">a</FONT>te<FONT STYLE="letter-spacing: 0.1pt">m</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT>nts
betw<FONT STYLE="letter-spacing: -0.05pt">ee</FONT>n the<FONT STYLE="letter-spacing: 0.1pt">s</FONT>e d<FONT STYLE="letter-spacing: -0.05pt">a</FONT>tes
<FONT STYLE="letter-spacing: -0.05pt">a</FONT>nd tell us how the <FONT STYLE="letter-spacing: -0.05pt">a</FONT>djus<FONT STYLE="letter-spacing: 0.05pt">t</FONT>ments
w<FONT STYLE="letter-spacing: -0.05pt">e</FONT>re disco<FONT STYLE="letter-spacing: 0.1pt">v</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT>r<FONT STYLE="letter-spacing: -0.1pt">e</FONT>d,
includi<FONT STYLE="letter-spacing: 0.15pt">n</FONT>g wh<FONT STYLE="letter-spacing: -0.05pt">e</FONT>t<FONT STYLE="letter-spacing: 0.15pt">h</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT>r
<FONT STYLE="letter-spacing: 0.1pt">t</FONT>h<FONT STYLE="letter-spacing: 0.05pt">e</FONT>y w<FONT STYLE="letter-spacing: -0.05pt">e</FONT><FONT STYLE="letter-spacing: 0.05pt">r</FONT>e
identifi<FONT STYLE="letter-spacing: -0.05pt">e</FONT>d <FONT STYLE="letter-spacing: 0.25pt">b</FONT>y <FONT STYLE="letter-spacing: 0.15pt">m</FONT><FONT STYLE="letter-spacing: -0.05pt">a</FONT>n<FONT STYLE="letter-spacing: 0.05pt">a</FONT><FONT STYLE="letter-spacing: -0.1pt">g</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT>ment<FONT STYLE="letter-spacing: -0.05pt">&rsquo;</FONT>s
<FONT STYLE="letter-spacing: -0.05pt">c</FONT>ontrols or the ind<FONT STYLE="letter-spacing: -0.05pt">e</FONT>p<FONT STYLE="letter-spacing: -0.05pt">e</FONT>n<FONT STYLE="letter-spacing: 0.1pt">d</FONT><FONT STYLE="letter-spacing: 0.05pt">e</FONT>nt
audit. <FONT STYLE="letter-spacing: 0.05pt">P</FONT>le<FONT STYLE="letter-spacing: -0.05pt">a</FONT>se <FONT STYLE="letter-spacing: -0.05pt">a</FONT>lso
e<FONT STYLE="letter-spacing: 0.1pt">x</FONT>plain how <FONT STYLE="letter-spacing: -0.25pt">y</FONT>ou <FONT STYLE="letter-spacing: -0.05pt">c</FONT>onsid<FONT STYLE="letter-spacing: -0.05pt">e</FONT><FONT STYLE="letter-spacing: 0.05pt">r</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT>d
<FONT STYLE="letter-spacing: 0.05pt">a</FONT><FONT STYLE="letter-spacing: 0.1pt">n</FONT>y <FONT STYLE="letter-spacing: -0.05pt">a</FONT>djus<FONT STYLE="letter-spacing: 0.05pt">t</FONT>ments
in <FONT STYLE="letter-spacing: -0.25pt">y</FONT>our <FONT STYLE="letter-spacing: -0.1pt">a</FONT>sse<FONT STYLE="letter-spacing: 0.1pt">s</FONT>sment
of the <FONT STYLE="letter-spacing: -0.05pt">e</FONT>f<FONT STYLE="letter-spacing: 0.05pt">f</FONT><FONT STYLE="letter-spacing: -0.05pt">ec</FONT>t<FONT STYLE="letter-spacing: 0.05pt">i</FONT>v<FONT STYLE="letter-spacing: -0.05pt">e</FONT><FONT STYLE="letter-spacing: 0.1pt">n</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT>ss
of <FONT STYLE="letter-spacing: -0.25pt">y</FONT>o<FONT STYLE="letter-spacing: 0.1pt">u</FONT>r int<FONT STYLE="letter-spacing: -0.05pt">e</FONT>rn<FONT STYLE="letter-spacing: -0.1pt">a</FONT>l
cont<FONT STYLE="letter-spacing: -0.05pt">r</FONT>ol ov<FONT STYLE="letter-spacing: -0.05pt">e</FONT>r <FONT STYLE="letter-spacing: -0.05pt">f</FONT>ina<FONT STYLE="letter-spacing: 0.1pt">n</FONT><FONT STYLE="letter-spacing: -0.05pt">c</FONT>ial
r<FONT STYLE="letter-spacing: -0.1pt">e</FONT>porti<FONT STYLE="letter-spacing: 0.1pt">n</FONT><FONT STYLE="letter-spacing: -0.1pt">g</FONT>,
<FONT STYLE="letter-spacing: 0.05pt">i</FONT>n<FONT STYLE="letter-spacing: -0.05pt">c</FONT>lud<FONT STYLE="letter-spacing: 0.05pt">i</FONT>ng
<FONT STYLE="letter-spacing: -0.05pt">e</FONT>v<FONT STYLE="letter-spacing: -0.05pt">a</FONT><FONT STYLE="letter-spacing: 0.15pt">l</FONT>u<FONT STYLE="letter-spacing: -0.05pt">a</FONT>t<FONT STYLE="letter-spacing: 0.05pt">i</FONT>on
of the s<FONT STYLE="letter-spacing: -0.05pt">e</FONT>v<FONT STYLE="letter-spacing: -0.05pt">e</FONT>ri<FONT STYLE="letter-spacing: 0.25pt">t</FONT>y
of <FONT STYLE="letter-spacing: -0.05pt">a</FONT><FONT STYLE="letter-spacing: 0.1pt">n</FONT>y i<FONT STYLE="letter-spacing: 0.15pt">d</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT>nt<FONT STYLE="letter-spacing: 0.05pt">i</FONT>fi<FONT STYLE="letter-spacing: -0.05pt">e</FONT>d
<FONT STYLE="letter-spacing: -0.05pt">c</FONT>ontrol d<FONT STYLE="letter-spacing: 0.05pt">ef</FONT>ici<FONT STYLE="letter-spacing: -0.05pt">e</FONT>n<FONT STYLE="letter-spacing: -0.05pt">c</FONT>ies,
<FONT STYLE="letter-spacing: -0.05pt">c</FONT>onsid<FONT STYLE="letter-spacing: -0.05pt">e</FONT>ri<FONT STYLE="letter-spacing: 0.1pt">n</FONT>g
not on<FONT STYLE="letter-spacing: 0.15pt">l</FONT>y the <FONT STYLE="letter-spacing: -0.05pt">ac</FONT>tual m<FONT STYLE="letter-spacing: 0.05pt">i</FONT>ss<FONT STYLE="letter-spacing: 0.05pt">t</FONT><FONT STYLE="letter-spacing: -0.05pt">a</FONT>tem<FONT STYLE="letter-spacing: -0.05pt">e</FONT>nt(s)
i<FONT STYLE="letter-spacing: 0.15pt">d</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT>nt<FONT STYLE="letter-spacing: 0.05pt">i</FONT>fi<FONT STYLE="letter-spacing: -0.05pt">e</FONT>d
but also wh<FONT STYLE="letter-spacing: -0.05pt">e</FONT>ther the<FONT STYLE="letter-spacing: -0.05pt">r</FONT>e w<FONT STYLE="letter-spacing: -0.05pt">a</FONT>s
a r<FONT STYLE="letter-spacing: -0.1pt">e</FONT><FONT STYLE="letter-spacing: -0.05pt">a</FONT>sona<FONT STYLE="letter-spacing: -0.05pt">b</FONT><FONT STYLE="letter-spacing: 0.15pt">l</FONT>e
poss<FONT STYLE="letter-spacing: 0.05pt">i</FONT>bi<FONT STYLE="letter-spacing: 0.05pt">l</FONT>i<FONT STYLE="letter-spacing: 0.15pt">t</FONT>y
t<FONT STYLE="letter-spacing: 0.15pt">h</FONT><FONT STYLE="letter-spacing: 0.05pt">a</FONT>t <FONT STYLE="letter-spacing: 0.05pt">t</FONT>he
<FONT STYLE="letter-spacing: -0.05pt">c</FONT>ompa<FONT STYLE="letter-spacing: 0.2pt">n</FONT><FONT STYLE="letter-spacing: -0.25pt">y</FONT>&rsquo;s
inte<FONT STYLE="letter-spacing: -0.05pt">r</FONT>n<FONT STYLE="letter-spacing: -0.05pt">a</FONT>l <FONT STYLE="letter-spacing: -0.05pt">c</FONT>ontrol
ov<FONT STYLE="letter-spacing: -0.05pt">e</FONT>r <FONT STYLE="letter-spacing: -0.05pt">f</FONT>ina<FONT STYLE="letter-spacing: 0.1pt">n</FONT><FONT STYLE="letter-spacing: -0.05pt">c</FONT>ial
<FONT STYLE="letter-spacing: 0.05pt">r</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT><FONT STYLE="letter-spacing: 0.1pt">p</FONT>o<FONT STYLE="letter-spacing: -0.05pt">r</FONT>t<FONT STYLE="letter-spacing: 0.05pt">i</FONT>ng
would <FONT STYLE="letter-spacing: -0.05pt">fa</FONT>il to pr<FONT STYLE="letter-spacing: -0.05pt">e</FONT>v<FONT STYLE="letter-spacing: -0.05pt">e</FONT>nt
or <FONT STYLE="letter-spacing: 0.1pt">d</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT>te<FONT STYLE="letter-spacing: -0.05pt">c</FONT>t
a m<FONT STYLE="letter-spacing: 0.05pt">i</FONT>ss<FONT STYLE="letter-spacing: 0.05pt">t</FONT><FONT STYLE="letter-spacing: -0.05pt">a</FONT>tem<FONT STYLE="letter-spacing: -0.05pt">e</FONT>nt
of a <FONT STYLE="letter-spacing: -0.05pt">f</FONT>inan<FONT STYLE="letter-spacing: 0.05pt">c</FONT>ial st<FONT STYLE="letter-spacing: -0.05pt">a</FONT>tem<FONT STYLE="letter-spacing: -0.05pt">e</FONT>nt
amount or disclosure <FONT STYLE="letter-spacing: -0.05pt">a</FONT>nd the m<FONT STYLE="letter-spacing: -0.05pt">a</FONT><FONT STYLE="letter-spacing: -0.1pt">g</FONT>ni<FONT STYLE="letter-spacing: 0.05pt">t</FONT>ude
<FONT STYLE="letter-spacing: 0.1pt">o</FONT>f the pot<FONT STYLE="letter-spacing: 0.1pt">e</FONT>nt<FONT STYLE="letter-spacing: 0.05pt">i</FONT><FONT STYLE="letter-spacing: -0.05pt">a</FONT>l
<FONT STYLE="letter-spacing: 0.05pt">m</FONT>is<FONT STYLE="letter-spacing: 0.05pt">s</FONT>tat<FONT STYLE="letter-spacing: -0.05pt">e</FONT>ment
<FONT STYLE="letter-spacing: -0.05pt">re</FONT>sul<FONT STYLE="letter-spacing: 0.05pt">t</FONT><FONT STYLE="letter-spacing: -0.1pt">i</FONT>ng
<FONT STYLE="letter-spacing: 0.05pt">f</FONT>rom the d<FONT STYLE="letter-spacing: -0.1pt">e</FONT>fi<FONT STYLE="letter-spacing: -0.05pt">c</FONT><FONT STYLE="letter-spacing: 0.15pt">i</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT>n<FONT STYLE="letter-spacing: 0.2pt">c</FONT>y
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<FONT STYLE="letter-spacing: -0.25pt">y</FONT>ou to <FONT STYLE="letter-spacing: 0.15pt">p</FONT><FONT STYLE="letter-spacing: 0.05pt">a</FONT><FONT STYLE="letter-spacing: -0.1pt">g</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT>s
34 to 38 of the Com<FONT STYLE="letter-spacing: 0.05pt">m</FONT>is<FONT STYLE="letter-spacing: 0.05pt">s</FONT>ion Guid<FONT STYLE="letter-spacing: -0.05pt">a</FONT>n<FONT STYLE="letter-spacing: -0.05pt">c</FONT>e
R<FONT STYLE="letter-spacing: 0.05pt">e</FONT>g<FONT STYLE="letter-spacing: -0.05pt">a</FONT>rdi<FONT STYLE="letter-spacing: 0.1pt">n</FONT>g
M<FONT STYLE="letter-spacing: 0.05pt">a</FONT>n<FONT STYLE="letter-spacing: -0.05pt">a</FONT>g<FONT STYLE="letter-spacing: -0.05pt">e</FONT><FONT STYLE="letter-spacing: 0.25pt">m</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT>nt&rsquo;s
R<FONT STYLE="letter-spacing: -0.05pt">e</FONT>port on <FONT STYLE="letter-spacing: -0.15pt">I</FONT>nte<FONT STYLE="letter-spacing: -0.05pt">r</FONT>n<FONT STYLE="letter-spacing: -0.05pt">a</FONT>l
<FONT STYLE="letter-spacing: 0.05pt">C</FONT>ont<FONT STYLE="letter-spacing: 0.1pt">r</FONT>ol Ov<FONT STYLE="letter-spacing: -0.05pt">e</FONT>r
<FONT STYLE="letter-spacing: -0.1pt">F</FONT>i<FONT STYLE="letter-spacing: 0.15pt">n</FONT><FONT STYLE="letter-spacing: -0.05pt">a</FONT>n<FONT STYLE="letter-spacing: -0.05pt">c</FONT>ial
Repo<FONT STYLE="letter-spacing: -0.05pt">r</FONT><FONT STYLE="letter-spacing: 0.15pt">t</FONT>ing und<FONT STYLE="letter-spacing: -0.05pt">e</FONT>r
<FONT STYLE="letter-spacing: 0.05pt">S</FONT><FONT STYLE="letter-spacing: -0.05pt">ec</FONT>t<FONT STYLE="letter-spacing: 0.05pt">i</FONT>on
13<FONT STYLE="letter-spacing: -0.05pt">(a</FONT>) <FONT STYLE="letter-spacing: 0.05pt">o</FONT>r 15<FONT STYLE="letter-spacing: -0.05pt">(</FONT>d)
of the <FONT STYLE="letter-spacing: 0.05pt">S</FONT><FONT STYLE="letter-spacing: -0.05pt">ec</FONT>u<FONT STYLE="letter-spacing: -0.05pt">r</FONT>i<FONT STYLE="letter-spacing: 0.05pt">t</FONT>ies
E<FONT STYLE="letter-spacing: 0.1pt">x</FONT><FONT STYLE="letter-spacing: -0.05pt">c</FONT>h<FONT STYLE="letter-spacing: -0.05pt">a</FONT>nge
A<FONT STYLE="letter-spacing: -0.05pt">c</FONT>t of 1934.</I></TD></TR></TABLE>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">During the preparation of our financial statements included
in our 2015 Form 20-F, the following reclassifications were identified:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 12pt">&#183;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt">We better classified Current Assets and Non-Current
Assets by Euro 1.5 million, as a result of the reclassification of a portion of Other Assets as current instead of non-current.
This reclassification was due to the fact that, based on the terms of the agreements for certain of our receivables, we expected
to receive the outstanding portion of the receivables in the short term;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 12pt">&#183;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt">Shareholder&rsquo;s Equity remained consistent in
the Company&rsquo;s financial statements. However, we reclassified Euro 0.6 million from Reserves to Retained Earnings, in order
for the Group reserves disclosed in the consolidated financial statements (composed of the legal reserve and the majority shareholder
capital contribution) to be consistent with those disclosed in the statutory financial statements, in accordance with Italian accounting
principles; and</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 12pt">&#183;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt">We better classified total Operating Cash Flows by
Euro 1.7 million, from Euro 10.3 million to Euro 8.6 million, with a corresponding increase of Euro 1.7 million of total Investing
Cash Flows, to better disclose the flows of the year.</FONT></TD></TR></TABLE>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">These reclassifications made to the financial statements
included in the 2015 Form 20-F were detected by management review controls. These review controls were specifically designed around
the disclosures made in the notes to the consolidated financial statements included in the</P>


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<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">2015 Form 20-F and do not operate as part of the Form 6-K
process. Such controls were designed to be precise and sensitive enough to detect any significant misstatements in the financial
statements. Considering these reclassifications were identified by the Company&rsquo;s own controls around the preparation of the
2015 Form 20-F, the identification of the reclassifications did not indicate a deficiency in the Company&rsquo;s ICOFR, since the
controls operated effectively.</P>

<P STYLE="font: 12pt/13pt Times New Roman, Times, Serif; margin: 0.8pt 0 0 0.5in; text-indent: -0.5in"><I>&nbsp;</I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><I>6.</I></TD><TD><FONT STYLE="letter-spacing: 0.05pt"><I>W</I></FONT><I>e note the te<FONT STYLE="letter-spacing: -0.05pt">r</FONT>m d<FONT STYLE="letter-spacing: 0.05pt">i</FONT>s<FONT STYLE="letter-spacing: -0.05pt">c</FONT>losure
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discl<FONT STYLE="letter-spacing: 0.1pt">o</FONT>sur<FONT STYLE="letter-spacing: -0.05pt">e</FONT>. Your <FONT STYLE="letter-spacing: 0.05pt">r</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT>sponse
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2<FONT STYLE="letter-spacing: 0.05pt">0</FONT><FONT STYLE="letter-spacing: -0.05pt">-</FONT>F with<FONT STYLE="letter-spacing: 0.05pt">i</FONT>n
the p<FONT STYLE="letter-spacing: -0.05pt">re</FONT>s<FONT STYLE="letter-spacing: -0.05pt">c</FONT>rib<FONT STYLE="letter-spacing: -0.05pt">e</FONT>d
<FONT STYLE="letter-spacing: 0.1pt">d</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT><FONT STYLE="letter-spacing: 0.05pt">a</FONT>dl<FONT STYLE="letter-spacing: 0.05pt">i</FONT>n<FONT STYLE="letter-spacing: -0.05pt">e</FONT>.
<FONT STYLE="letter-spacing: 0.05pt">P</FONT>le<FONT STYLE="letter-spacing: -0.05pt">a</FONT>se spe<FONT STYLE="letter-spacing: -0.1pt">c</FONT>ific<FONT STYLE="letter-spacing: -0.1pt">a</FONT>l<FONT STYLE="letter-spacing: 0.3pt">l</FONT>y
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the <FONT STYLE="letter-spacing: -0.05pt">a</FONT>bove d<FONT STYLE="letter-spacing: -0.05pt">e</FONT>finit<FONT STYLE="letter-spacing: 0.05pt">i</FONT>on
<FONT STYLE="letter-spacing: -0.05pt">a</FONT>nd the <FONT STYLE="letter-spacing: -0.05pt">f</FONT><FONT STYLE="letter-spacing: 0.05pt">a</FONT><FONT STYLE="letter-spacing: -0.05pt">c</FONT>t
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2<FONT STYLE="letter-spacing: 0.1pt">0-</FONT>F in <FONT STYLE="letter-spacing: -0.25pt">y</FONT>o<FONT STYLE="letter-spacing: 0.1pt">u</FONT>r
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that dis<FONT STYLE="letter-spacing: -0.05pt">c</FONT>losure <FONT STYLE="letter-spacing: -0.05pt">c</FONT>ontrols a<FONT STYLE="letter-spacing: 0.1pt">n</FONT>d
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w<FONT STYLE="letter-spacing: -0.05pt">e</FONT>re <FONT STYLE="letter-spacing: -0.05pt">e</FONT>f<FONT STYLE="letter-spacing: 0.05pt">f</FONT><FONT STYLE="letter-spacing: -0.05pt">ec</FONT>t<FONT STYLE="letter-spacing: 0.05pt">i</FONT>ve
<FONT STYLE="letter-spacing: -0.05pt">a</FONT>s <FONT STYLE="letter-spacing: 0.1pt">o</FONT>f <FONT STYLE="letter-spacing: -0.05pt">D</FONT><FONT STYLE="letter-spacing: 0.05pt">e</FONT><FONT STYLE="letter-spacing: -0.05pt">c</FONT><FONT STYLE="letter-spacing: 0.05pt">e</FONT>mber
31, 2015.</I></TD></TR></TABLE>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt">The Company understands that it is required to record,
process, summarize and report information within the time periods provided by the Staff&rsquo;s rules. Further, the Company understands
that disclosure controls and procedures also include controls and procedures that are designed to ensure that information required
to be disclosed in reports under the Exchange Act, including management&rsquo;s report on ICOFR, is accumulated and communicated
to management as appropriate to <FONT STYLE="letter-spacing: -0.05pt">a</FONT>l<FONT STYLE="letter-spacing: 0.05pt">l</FONT>ow
t<FONT STYLE="letter-spacing: 0.15pt">i</FONT>me<FONT STYLE="letter-spacing: 0.1pt">l</FONT>y d<FONT STYLE="letter-spacing: 0.05pt">e</FONT><FONT STYLE="letter-spacing: -0.05pt">c</FONT>is<FONT STYLE="letter-spacing: 0.05pt">i</FONT>ons
re<FONT STYLE="letter-spacing: -0.1pt">g</FONT><FONT STYLE="letter-spacing: -0.05pt">a</FONT>rdi<FONT STYLE="letter-spacing: 0.1pt">n</FONT>g
<FONT STYLE="letter-spacing: 0.05pt">r</FONT><FONT STYLE="letter-spacing: -0.05pt">e</FONT>quir<FONT STYLE="letter-spacing: -0.05pt">e</FONT>d
discl<FONT STYLE="letter-spacing: 0.1pt">o</FONT>sur<FONT STYLE="letter-spacing: -0.05pt">e</FONT>. As highlighted in the December
Response Letter and the February Response Letter, in assessing the effectiveness of disclosure controls and procedures, the Company
was guided by the principle that Rule 13a-15 &ldquo;require[s] an issuer to maintain disclosure controls and procedures to provide
reasonable assurance that the issuer is able to record, process, summarize and report the information required in the issuer&rsquo;s
Exchange Act reports.&rdquo;<FONT STYLE="line-height: 115%"><SUP>[1]</SUP></FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt">The Company believes that information necessary for
management to assess the Company&rsquo;s ICOFR was accumulated and communicated to management appropriately and in time to identify
that the Company needed to notify its late filing on Form 12b-25 and subsequently to notify of a further delay, when it realized
that it would miss the extension for filing provided by Rule 12b-25(b)(2)(ii) of the Exchange Act. As such, the Company&rsquo;s
disclosure controls and procedures are <I>reasonably designed</I> to provide reasonable assurance that the Company was able to
record, process, summarize and report the information required in the Exchange Act reports.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt">During 2015, the Company carried out the following
procedures in order to accumulate information and communicate it to management on a timely basis:</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><I></I></P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 0 1in">&nbsp;</P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt">&nbsp;</P>

<HR ALIGN="LEFT" SIZE="1" STYLE="width: 33%">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt; line-height: 115%"><SUP>[1]</SUP></FONT>
Certification of Disclosure, SEC Release Nos. 33-8124; 36-46427, August 29, 2002.</P>



<!-- Field: Page; Sequence: 9; Value: 2 -->
    <DIV STYLE="margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 50%">&nbsp;</TD><TD STYLE="width: 50%; text-align: right"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->9<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
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<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 0 0 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Symbol; font-size: 12pt">&#183;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt">In June 2015, the Company began scoping activities,
which include identifying, based on the established materiality, the significant accounts, significant processes and Group locations
to be scoped in for ICOFR activities under Section 404 of the Sarbanes-Oxley Act of 2002 (&ldquo;<U>SOX</U>&rdquo;). The results
of this activity were shared with the Company&rsquo;s chief financial officer, the managers of each relevant department and the
Audit Committee. As usual, this process was updated by the Company in connection with the publication of the quarterly financial
statements as of September 30, 2015 and December 31, 2015.</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 17.85pt"></TD><TD STYLE="width: 17.85pt"><FONT STYLE="font-family: Symbol; font-size: 12pt">&#183;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt">As indicated in response to question 1 above, in
June and July 2015, further to the implementation of the Moving Line in the Italian plants, the Company undertook a review of its
control matrices for routine transactions connected to the Company&rsquo;s core business processes, enhancing the controls around
the standard cost of products, discounts and manual prices. </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 17.85pt"></TD><TD STYLE="width: 17.85pt"><FONT STYLE="font-family: Symbol; font-size: 12pt">&#183;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt">Due to the implementation of the transformation plan,
certain roles and responsibilities of personnel were reassigned. These adjustments were not properly reflected in the access to
IT system and the Company identified potential exceptions to the Company&rsquo;s IT SOD guidelines. By the end of October 2015,
the Company had implemented a monitoring control related to access rights, which included additional review of personnel that had
access to the system and transactions performed by unauthorized personnel. These monitoring activities regarding potential SOD
exceptions continued until April 2016. It took the Company&rsquo;s internal control department longer than expected to evaluate
the results of this work.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 17.85pt"></TD><TD STYLE="width: 17.85pt"><FONT STYLE="font-family: Symbol; font-size: 12pt">&#183;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt">As noted in response to question 1 above, during
October and November 2015, the Company introduced certain enhancements in the design of management review controls around the FSCP
in order to improve the documentation of the review activities performed.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 17.85pt"></TD><TD STYLE="width: 17.85pt"><FONT STYLE="font-family: Symbol; font-size: 12pt">&#183;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt">Given that the update of the control matrices on
core business processes occurred in late June and July 2015, the Company was able to complete its testing activities on routine
transactions in February 2016. Testing activities on the FSCP were performed between January and April 2016.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 17.85pt"></TD><TD STYLE="width: 17.85pt"><FONT STYLE="font-family: Symbol; font-size: 12pt">&#183;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt">As part of the assessment made by the Company&rsquo;s
internal SOX department, control deficiencies were identified and required evaluation for severity. Such evaluation, which had
commenced prior to year-end, included the identification and testing of the effectiveness of any existing compensating controls
and, in particular, as it relates to the SOD testing described above. This was completed by the end of April 2016 and evaluated
thereafter by the Company&rsquo;s internal audit department, management and the Audit Committee. In April 2016, while completing
its testing, the Company was still confident that it would meet the filing deadlines prescribed by the Staff and timely file its
2015 Form 20-F. </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 17.85pt"></TD><TD STYLE="width: 17.85pt"><FONT STYLE="font-family: Symbol; font-size: 12pt">&#183;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt">On April 27, 2016, after communicating information
to and conferring with management, the Company decided to postpone the filing of the 2015 Form 20-F in order to complete its assessment
of ICOFR, and shared its results with the Audit Committee and the external auditors. At that date, such assessment had not yet
concluded on the evaluation of the deficiencies pertaining to the FSCP. As a consequence, the Company filed a first notification
of late filing on Form 12b-25 on April 29, 2016.</FONT></TD></TR></TABLE>


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    <DIV STYLE="page-break-before: always; margin-top: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 17.85pt"></TD><TD STYLE="width: 17.85pt"><FONT STYLE="font-family: Symbol; font-size: 12pt">&#183;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt">In the beginning of May 2016, the Company completed
its evaluation of the severity of the identified deficiencies on the FSCP, taking into consideration existing compensating controls
and any mitigating factors. Notwithstanding this, the Company needed additional time to complete its evaluation of the identified
deficiencies on an aggregate basis, and therefore filed an additional notification of late filing on May 12, 2016.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 17.85pt"></TD><TD STYLE="width: 17.85pt"><FONT STYLE="font-family: Symbol; font-size: 12pt">&#183;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt">The Company completed its assessment of the effectiveness
of ICOFR on May 19, 2016.</FONT></TD></TR></TABLE>

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt 35.7pt; text-indent: -17.85pt"><FONT STYLE="font-family: Symbol; font-size: 12pt">&#183;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt">The results of the assessment made by the Company
allowed it to conclude that it had maintained an effective ICOFR as of December 31, 2015 and that there were no material weaknesses
in the Company&rsquo;s ICOFR. </FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt">The Company believes that it had an appropriate internal
control timeline in place, which enabled it to accumulate and communicate information to management appropriately and allowed management
to make decisions regarding its disclosure controls and procedures on a timely basis. In management&rsquo;s view, the Company&rsquo;s
disclosure control procedures were effective in that they provided reasonable assurance that the Company was able to record, process,
summarize and report the information required in Exchange Act reports. Also in management&rsquo;s view, its disclosure controls
and procedures were effective in that they allowed management to determine, in time, that the Company would not meet the April
30th and subsequent extended filing deadlines for the 2015 Form 20-F and the Company took the appropriate actions on time, by filing
the Form 12b-25 and subsequent notification of late filing.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt">As a result, the Company believes that its disclosure
controls and procedures were effective as of December 31, 2015.</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: center; text-indent: 1in">*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 1.45pt 0 0">The Company acknowledges that it and its management
are responsible for the adequacy and accuracy of their disclosures, notwithstanding any review, comments, action or absence of
action by the Staff.</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 1.45pt 0 0; text-indent: 35.4pt">&nbsp;</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 12pt">If you have any questions or require any additional
information with respect to the above, please do not hesitate to contact me at +39 080 882 0111.</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0in">[<I>signature page follows</I>]</P>


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    <!-- Field: /Page -->

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 35.4pt">Sincerely,</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 12pt">&nbsp;</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 12pt">&nbsp;</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 12pt">&nbsp;</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0; text-indent: 3.5in">&#9;<U>/s/ Vittorio Notarpietro&#9;</U></P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0; text-indent: 3.5in">Vittorio Notarpietro</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0; text-indent: 3.5in">Chief Financial Officer</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0">cc: &#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pietro Fioruzzi</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><I>Cleary Gottlieb Steen &amp; Hamilton
LLP</I></P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">David Gottlieb</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><I>Cleary Gottlieb Steen &amp; Hamilton
LLP</I></P>


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