technicolor - 2020 Universal Registration Document

6 FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Note 9 - Employee benefit

The Board of Directors meeting of January 30, 2020 authorized the issuance of 9,258 shares in favor of two beneficiaries at an exercise price of €16.20. As of December 31, 2020, the outstanding share rights under the plan amounts to 93,645 performance shares rights. 2020 Long-Term Incentive Plan (LTIP) The Shareholders’ Meeting of June 30, 2020 in its twenty fifth 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 or the Group related parties. This authorization has been given for a 36-months period and is valid until June 30, 2023. The shares to be issued pursuant to this authorization shall not give rights to a total of shares greater than 3.6% of share capital stated at the date of authorization.

Asking use of this authorization, the Board of Directors approved on December 17, 2020, the implementation of 2020 Long-Term Incentive Plan and authorized the issuance of 2,829,146 free shares. These three-year plans provide conditional rights to the beneficiaries to receive Performance Shares, the delivery of which is subject of the satisfaction a continued employment condition for the full duration of the Plan until December 17, 2023 and the achievement of cumulated EBITA and Total Shareholder Return until the end of 2022. As of December 31, 2020, the outstanding share rights under the plan amounts to 2,829,146 performance shares rights. As of December 31, 2020, the total number of outstanding stock options amounted to a maximum of 261,568 options and the total number of rights to receive shares amounted to 2,943,339 rights granted to employees and Directors.

The details of these options and shares are disclosed hereafter:

Number of instruments initially granted (2)

Number of instruments outstanding (2)

Estimated fair values granted (1)(2)

Initial number of beneficiaries

Contractual instrument life

Exercise price (1)(2) €86.13

Type of plan Subscription options

Grant date

Vesting date

May 2015 (50%) May 2016 (25%) May 2017 (25%) May 2015 (50%) May 2016 (25%) May 2017 (25%) May 2015 (50%) May 2016 (25%) May 2017 (25%) June 2016 (50%) June 2017 (25%) June 2018 (25%) October 2017 (25%) October 2018 (25%) October 2016 (50%) October 2017 (25%) October 2018 (25%) October 2016 (50%)

MIP 2015 Options* MIP 2015 Options* MIP 2015 Options* MIP 2016 Options* MIP 2016 Options* MIP 2016 Options*

May 23, 2013 and June 7, 2013

607,335

149,060

94

8 years

€28.62

Subscription options

October 24, 2013

7,408

-

1

8 years

€106.11

€37.80

Subscription options

March 26, 2014

7,963

2,499

2

8 years

€122.31

€46.71

Subscription options

June 20, 2014

104,815

48,353

40

8 years

€156.33

€49.14

Subscription options

October 21, 2014

70,926

34,319

24

8 years

€132.84

€39.15

Subscription options

April 9, 2015

14,815

15,377

1

8 years

€157.41

€50.76

June 2017 (50%) June 2018 (25%) June 2019 (25%)

MIP June 2017 Options*

Subscription options

June 26, 2015

9,260

2,884

2

8 years

€158.76

€51.57

October 2017 (50%) October 2018 (25%) October 2019 (25%)

MIP October 2017 Options*

Subscription options

December 3, 2015

63,334

9,076

22

8 years

€191.97

€61.29

2016 LTIP**

Performance shares Performance shares Performance shares Performance shares Performance shares Performance shares Performance shares Performance shares Performance shares

April 29, 2016

102,241

-

187

April 2019

-

-

€153.63

2016 LTIP**

July 27, 2016

2,444

-

12

April 2019

-

-

€147.69

2016 LTIP**

October 20, 2016

7,926

-

18

April 2019

-

-

€138.78

2017 LTIP**

January 6, 2017

5,995

-

10

April 2020

-

-

€102.06

2017 LTIP**

March 9, 2017

148,180

-

218

April 2020

-

-

€102.06

2017 LTIP**

April 26, 2017

7,407

-

1

April 2020

-

-

€116.91

2017 LTIP**

July 26, 2017

5,273

-

15

April 2020

-

-

€91.26

2018 LTIP**

April 25, 2018

11,370

11,111

2

April 2021

-

-

€34.37

2018 LTIP**

June 25, 2018

12,216

9,437

12

April 2021

-

-

€34.37

TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2020 256