Common use of Capital Reduction Clause in Contracts

Capital Reduction. To the extent Mecaplast Management 1 is and shall be the owner of 1,143,537 Novares Ordinary Shares on the Merger Date, Novares shall, as a result of the Merger, receive 1,143,537 of its own ordinary shares, which it shall be required to cancel. Accordingly, Novares shall, immediately after the foregoing share capital increase, proceed with a share capital reduction in an amount equal to the par value of the Novares Ordinary Shares contributed by Mecaplast Management 1 and cancelled, i.e. a nominal share capital reduction amount of 1,143,537 Euros. The difference between the par value of the shares cancelled as described above and their contribution value shall be allocated to the merger premium. The number of Novares Ordinary Shares which Mecaplast Management 1 shall hold at the Merger Date and the amount of the Novares share capital reduction shall be adjusted by the number of Novares Ordinary Shares transferred by the Absorbed Company to repay the MM 1 Current Account Advance.

Capital Reduction. To the extent Mecaplast Management 1 2 is and shall be the owner of 1,143,537 Novares Ordinary 2,622,164 Class A Preferred Shares on the Merger Date, Novares shall, as a result of the Merger, receive 1,143,537 2,622,164 of its own ordinary sharesClass A Preferred Shares, which it shall be required to cancel. Accordingly, Novares shall, immediately after the foregoing share capital increase, proceed with a share capital reduction in an amount equal to the par value of the Novares Ordinary Class A Preferred Shares contributed by Mecaplast Management 1 2 and cancelled, i.e. a nominal share capital reduction amount of 1,143,537 2,622,164 Euros. The difference between the par value of the shares cancelled as described above and their contribution value shall be allocated to the merger premium. The number of Novares Ordinary Shares which Mecaplast Management 1 2 shall hold at the Merger Date and the amount of the Novares share capital reduction shall be adjusted by the number of Novares Ordinary Class A Preferred Shares transferred by the Absorbed Company to repay the MM 1 2 Current Account Advance.