REMUNERATION REPORT Continued Are the No. Each performance hurdle is only tested once at the end of the Performance Period. performance hurdles subject to retesting? Do any Any shares provided on vesting of the performance rights will be subject to a restriction period of one year, restrictions apply during which they cannot be sold, transferred or otherwise dealt with. once the rights vest? Cessation of employment, change of control, clawback, participation in future issues and hedging arrangements Cessation of The treatment of performance rights on cessation of employment will depend on the date as well as the employment circumstances of cessation. Generally, if an executive ceases employment on or before the end of the restriction period due to resignation, termination for cause or gross misconduct, they will forfeit any interest in the rights. If employment ceases on or before the end of the restriction period for other reasons, the executive will retain an interest in the vested shares. Subject to applicable law, the Board has the discretion to allow different treatment (although the discretion is only likely to be exercised in exceptional circumstances). How would a The Board has absolute discretion to allow full or pro rated accelerated vesting of performance rights in the change of control event of certain change of control events, and would exercise this discretion in the best interests of the impact LTIP Company. entitlements? Does a The LTIP includes provisions for rights to lapse and interests in shares allocated and subject to restriction to ‘clawback’ apply? be forfeited, at the Board’s discretion, if rights or shares are granted, eligible to vest or allocated as a result of a material misstatement in, or omission from, the Company’s financial statements. The Myer Board would only exercise this discretion in respect of those executives who were KMP of the Company at the time the financial statements were approved by the Board and issued by the Company. How would a The rights and entitlements attaching to performance rights may be adjusted if the Company undertakes a bonus or rights bonus or rights issue or a capital reconstruction in relation to the Company's shares. For example, in the event issue impact of a rights issue, the number of shares which an executive is entitled to be allocated on the exercise of performance performance rights may be changed in a manner determined by the Myer Board and consistent with the ASX rights under the Listing Rules. LTIP? Do performance At the end of the applicable Performance Period, any performance rights that have not vested will lapse, and rights expire? no shares will be provided for those performance rights. Do any other Executives are forbidden from entering into any hedging arrangements affecting their economic exposure to restrictions apply Performance Rights or restricted shares. to Performance Rights prior to Executives are also forbidden from entering into transactions or arrangements prohibited under the Company’s vesting or subject Securities Dealing Policy. to restriction? 38 Myer Annual Report 2018