REMUNERATION REPORT (AUDITED) (CONTINUED) Cessation of Employment (current plan) Disclosure In general, where an Executive resigns, is terminated for cause or is terminated in other circumstances involving unacceptable performance or conduct, they forfeit any right to participate in that year's STIP and forfeit any shares awarded under prior year STIPS that are subject to a deferral period. For shares subject to the additional trading restriction, forfeiture does not apply. That is, for any shares awarded under prior year STIPS where the deferral period has been served, but the shares are subject to the additional trading restriction, the Executive retains those shares subject to the additional trading restriction. The additional trading restriction strengthens the ability to clawback vested equity, if required. In limited circumstances (for example, retirement, employer-initiated terminations (with no record of poor performance), death or total and permanent disablement): For the current year STIP, the Executive will receive a pro-rated award based on the actual performance against the performance measures (as determined by the Board following the end of the performance period), and the portion of the performance period that the Executive served. - For shares awarded under prior year STIPS that are subject to a deferral period, the original deferral period and additional trading restriction continue to apply and these shares are subject to clawback. On cessation of employment, a tax liability arises on shares that are subject to a deferral period or trading restriction, notwithstanding that those trading restrictions continue to apply. Accordingly, a portion of the shares may be released to assist with funding the tax liability that arises for the Executive. In addition to required statutory disclosures, Qantas chooses to disclose the full value of each year's STIP award in the Remuneration Outcomes Table on page 46. This involves disclosing both: - The value of cash awards made -The full value of restricted shares that were awarded (notwithstanding that these shares are still subject to a two- year deferral period and a one-year trading restriction). No awards were made under the 2020/21 STIP and therefore the value for the 2020/21 STIP is nil. Disclosure of STIP awards in the Statutory Remuneration Table on page 47 is based on the requirements of the Corporations Act 2001 (Cth) and applicable Australian Accounting Standards. The STIP awards are disclosed as either: - A cash incentive for any cash bonus paid, or - A share-based payment for any component awarded in deferred shares. Where share-based STIP awards involve deferral over multiple reporting periods, they are reported against each period in accordance with accounting standards. Long Term Incentive Plan (LTIP) LTIP Overview The LTIP is a four-year plan that involves an upfront award of a fixed number of Rights over Qantas shares. If performance and service conditions are achieved over a three-year period, Rights vest and convert to Qantas shares. The vested shares are then subject to a one-year trading restriction during which the shares cannot be traded and are subject to clawback. If the three-year performance conditions or service conditions are not met, the Rights lapse.