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REMUNERATION REPORT FOR YEAR ENDED 30 JUNE 2015 Other features Share Plan Trust The Group has established the Southern Cross Media Group Employee Share Plan Trust Trust. The Trust will acquire and hold any shares Plan Shares that the employee becomes entitled to under the LTI plans until such time as the employee elects to remove the Plan Shares from the Trust or the employee departs the Company whichever is earlier. Change of Control If a Change of Control event occurs in relation to the Group then the performance rights which have not been exercised at the time of the announcement to the ASX of the Change of Control event may vest pro-rata for time and performance subject to Board discretion and any Plan Shares held by the Trust on behalf of a Participant will immediately vest in the relevant participant upon the announcement to ASX of the Change of Control event. Termination For Bad Leavers defined by the Group as resignation or termination for cause any unvested performance rights are forfeited unless otherwise determined by the Board. For cessation of employment for reasons other than those specified for Bad Leavers the Board has discretion to vest any unvested performance rights on a pro-rata basis taking into account time and the current level of performance against the performance hurdle or to hold the LTI award to be tested against performance hurdles at the end of the original vestingperformance period. Treatment of dividends There are no dividends payable to participants on unvested performance rights. Once the performance rights have vested to fully paid ordinary shares the participant will be entitled to dividends on these shares. Sourcing of shares The Board has the discretion to either purchase shares on-market or to issue new shares in respect of vesting performance rights. To date the Board has elected to issue new shares for vesting performance rights. 6. Details of share-based payments The fair value of the performance rights issued during 2015 was determined using a Monte Carlo simulation model for the TSR performance rights and a Black-Scholes-Merton model for the EPS performance rights with the following inputs Relative TSR Absolute EPS Grant date 12 January 2015 12 January 2015 Grant date share price 1.12 1.12 Fair value at grant date 0.65 0.97 Exercise price Nil Nil Dividend yield 5.90 5.90 Risk free interest rate 2.50 2.50 Share price and TSR volatility 35.58 35.58 The fair value at grant date of the securities granted is adjusted to reflect market vesting conditions but excludes the impact of any non-market vesting conditions for example profitability and sales growth targets. Non-market vesting conditions are included in assumptions about the number of shares that are expected to be issued. At each balance sheet date the entity revises its estimate of the number of shares that are expected to be issued. The employee benefit expense recognised each period takes into account the most recent estimate. The impact of the revision to original estimates if any is recognised in profit or loss with a corresponding adjustment to equity. Where the terms of the share- based payment entitlement are modified in favour of the employee the changes are reflected when determining the impact on profit or loss. 32 SOUTHERN CROSS AUSTEREO ANNUAL REPORT 2015