Group

The Remunerations Committee makes proposals to the Board of Directors concerning senior management's remuneration. This remuneration is comprised of a fixed portion and a variable portion.

The variable portion is set according to the Group's financial results and individual performance criteria. It corresponds to a percentage of the fixed portion which can reach a maximum of:

• 160% for the Chief Executive Officer, then Chairman and C.E.O.,
• 120% for the Chief Operating Officer,
• 80% for the Chairman.

The Board of Directors may increase the performance related pay up to 20% if the targets are exceeded by 50% to acknowledge siginificant achievements.

The performance of the senior management was judged to be excellent for 2007: performance even exceeded by far all the objectives that were set at the begining of the year.

The Board of Directors, with Bruno Lafont not attending the discussion, has attributed:

• 1,940,000 euros of variable remuneration for Bruno Lafont,
• 762,00 euros of variable remuneration for Michel Rose,
• 275,260 euros of variable remuneration for Bertrand Collomb, for the period of time he was Chairman (until May 3, 2007).

In accordance with articles L225-42-1 and L225-38 of the Code of commerce, the Board of Directors authorised on December 16, 2005 the benefit of a severance pay in the Chairman and Chief Executive Officer’s employment contract (suspended since January 1, 2006) in the event of termination of his employment or cancellation of his current position and introduced a performance condition linked to this severance pay on March 26, 2008.

Detailled information on this benefit and the corresponding authorisations from the Board of Directors can be found on page 89 of the 2007 Annual report (Document de référence), available on this website and on the A.M.F.’s website.