Executive and Senior Management Long Term Incentive Plan 24 November 2010 Executive directors and key Management Personnel Movements in the number of share options outstanding and their related weighted average exercise price are as follows: Share options outstanding at the end of the year have the following expiry date  exercise dates and exercise prices. on 24 november 2010  shareholders approved at the annual General Meeting the establishment of an employee long  term Incentive plan (ltI) to grant performance rights to executive directors  Key Management personnel and other Senior  Management. performance rights will vest subject to the satisfaction of performance conditions which will be different for  executive directors as compared with the Key Management personnel and Senior Management. performance rights granted to executive directors and six Key Management personnel are summarised below: * Performance Rights in 2011 only granted to Executive Directors. the performance rights will vest in three equal tranches. In each tranche 50% of the rights are subject to a relative total  Shareholder return (tSr) hurdle and the remaining 50% are subject to an epS growth hurdle. the proportion of rights subject to the relative tSr hurdle is dependent on Kathmandu holdings limited’s tSr performance  relative to a defined comparable group of companies in new Zealand and australia listed on either the aSX or nZX  and with  market capitalisation indicatively in a range between 300% and 45% of Kathmandu holdings limited market capitalisation. the  percentage of tSr related rights vest according to the following performance criteria: 2012 2011 Average  exercise price  $ per share options ‘000 Average  exercise price  $ per share options ‘000 Balance at beginning of year 2.1333 1 074 2.1333 1 120 Issued - - - - Forfeited 2.1333 (118) 2.1333 (46) Balance at end of year 2.1333 956 2.1333 1 074 First Vesting month Last Vesting  month exercise  price 2012 ‘000 2011 ‘000 October 2010 October 2013 $2.1333 319 358 October 2011 October 2013 $2.1333 319 358 October 2012 October 2013 $2.1333 318 358 956 1 074 Grant Date Balance at  start of year  number Granted during  the year  number Vested during  the year  number Lapsed during  the year  number Balance at the  end of year  number 30 Nov 2011* - 221 920 - - 221 920 29 Nov 2010 374 292 - - (29 775) 344 517 374 292 221 920 - (29 775) 566 437 Kathmandu Holdings Limited relative tSr ranking % Vesting Below the 50 th  percentile 0% 50 th  percentile 50% 51 st  – 74 th  percentile 50% + 2% for each percentile above the 50 th 75 th  percentile or above 100% 58 annual report 2012  kAThMANdu