TECHNICOLOR_REGISTRATION_DOCUMENT_2017

6 - FINANCIAL STATEMENTS Notes to the Parent Company Financial Statements

EMPLOYEES BENEFITS NOTE 10. Information on employees 10.1.

2017

2016

Engineers and managers

128

131

Employees and supervisory staff

28

25

TOTAL HEADCOUNT

156

156

Stock option plan 10.2. Mid Term Management Incentive Plan (MIP-SP1)

shares would be delivered to eligible employees at the end of the acquisition period. The plan was not subject to performance conditions. On November 6, 2017, 778,750 new shares were delivered to eligible employees under this Free Share Plan. No outstanding share rights as of December 31, 2017. 2016 and 2017 Long Term Incentive Plan (LTIP) The Shareholders’ Meeting of April 29, 2016, in its twenty-eight resolution, authorized the Board of Directors to proceed with the allocation of existing shares or shares to be issued, in favor of the Group’s employees or certain categories of employees. This authorization has been given for a 26-month period and is valid until June 29, 2018. The shares to be issued pursuant to this authorization shall not give rights to a total of shares greater than 8,239,744. Making use of the authorization given by the Shareholders’ Meeting of April 29, 2016 in its twenty-eight resolution, the Board of Directors approved on April 29, 2016 and on January 6, 2017 the implementation of respectively 2016 and 2017 Long Term Incentive Plan. These three-year plans provide conditional rights to the beneficiaries to receive Performance Shares, the delivery of which is subject to the cumulative achievement of Adjusted EBITDA and Free Cash Flow targets for the three years from 2016 through 2018 (LTIP 2016) and from 2017 through 2019 (LTIP 2017) and the satisfaction of a continued employment condition for the full duration of the plan (through April 30, 2019 for LTIP 2016 and through April 30, 2020 for LTIP 2017). As of December 31, 2017, the outstanding share rights under the plans amounts to 2,605,187 and 4,263,045 performance shares rights for respectively LTIP 2016 and LTIP 2017. As of December 31, 2017, the total number of outstanding stock options amounted to a maximum of 12,562,940 options and the total number of rights to receive shares amounted to 6,868,232 rights granted to employees and Directors.

Under the thirteen-resolution approved by the Shareholder’s Meeting of May 22, 2008, the Board of Directors Meeting of June 17, 2010 approved the implementation of a Mid Term Management Incentive Plan (MIP-SP1) granting non-market performance units made up of a combination of cash and stock options. Subject to the continuance of employment, the rights under the plan were vested on June 18, 2014 for each beneficiary in the proportion set by the Board of Directors on February 21, 2013 following the determination of the level of achievement of the non-market performance conditions on December 31, 2012. As of December 31, 2017, a total of 805,476 subscription options are still outstanding. Management Incentive Plans (MIP) The Shareholders’ Meeting of May 23, 2013, in its fifteenth resolution, authorized the Board of Directors to proceed with the allocation, in one or several times, in favor of employees or Executive Officers of the Company and its French and foreign subsidiaries, of share subscription or purchase options. This authorization has been given for a 38-month period and is valid until July 23, 2016. Options granted under this authorization shall not give rights to a total number of shares greater than 26,843,507. As of December 31, 2017, 11,757,464 subscription options are still outstanding (respectively 6,654,294 options, 3,949,376 options, 103,794 options and 1,050,000 options related to MIP 2015, MIP 2016, MIP June 2017 and MIP October 2017). Free Share Plan Making use of the authorization given the Shareholder’s Meeting on May 23, 2013 in its sixteenth resolution, the Board of Directors of October 24, 2013, approved the implementation of a global free share plan to employees of the Group in 13 countries. This worldwide plan provides, for all beneficiaries, an acquisition period of four years. Subject to conditions of continuous employment within the Technicolor Group during the acquisition period, 125 Technicolor

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TECHNICOLOR REGISTRATION DOCUMENT 2017