FAIRFAX MEDIA  LIMITED  2013  39 REMUNERATION REPORT (AUDITED) DETAIL OF LTI ARRANGEMENTS What is the  performance period? Three years. For allocations prior to 2013, if an allocation does not vest at the end of the three year period, a re-test of  the performance hurdles will occur at the end of the fourth. This re-test was removed in respect of the 2013  allocation. What are the performance  hurdles? Two performance hurdles apply to the 2013 allocation, both linked to the Company’s return to shareholders.  Fifty percent of the allocation will vest on achievement by the Company of the total shareholder return  (TSR) target. TSR will be measured against the S&P/ASX 300 Consumer Discretionary Index and vest as described in the  table below  TSR PERFORMANCE % OF ALLOCATION THAT VESTS Below 50th percentile Nil 50th percentile 50% of allocation 50th to 75th percentile Vest on a straight line basis Above 75th percentile 100% The other 50% of the allocation will vest if the Company achieves the earnings per share (EPS) target.  EPS will be measured by the compound annual growth rate (CAGR) of the Company’s EPS and vesting will be  according to the table below:  EPS PERFORMANCE % OF ALLOCATION THAT VESTS Less than 7% CAGR Nil 7% CAGR 25% 7% to 10% CAGR Vest on a straight line basis  10% CAGR or above 100% The base case to be used for the EPS performance hurdle test for the 2013 allocation of rights will be the  underlying 2012 financial year EPS of 8.7 cents per share as set out in the Fairfax Media 2012 Annual Report.  Underlying EPS is calculated excluding significant items which are set out in note 4 to the 2012 financial year  audited accounts. In order to be consistent, underlying EPS will also be used at the test date. What happens in the event  of a change of control? The Board has discretion regarding vesting. What happens if the executive  ceases employment? If an executive resigns, unvested allocations will, in general, be forfeited. On termination for misconduct,  allocations will be forfeited. If an executive is terminated without cause, for example made redundant or dies or is permanently disabled,  then vesting will be at the Board’s discretion Table 7  STATuS And key dATeS – unVeSTed lTi SCHeMe  GRANT DATE AWARD INSTRUMENT PERFORMANCE  TESTING WINDOW EXPIRY DATE (IF HURDLE NOT MET)* AWARD STILL ELIGIBLE FOR VESTING? 18 January 2008 Performance Shares 1 July 2007 – 30 June 2010 30 June 2011 No.** 26 August 2008 Performance Shares 1 July 2008 – 30 June 2011 30 June 2012 No.** 23 June 2010 Performance Shares 1 July 2009 – 30 June 2012 30 June 2013 No.** 17 November 2010 Performance Shares 1 July 2010 – 30 June 2013 30 June 2014 In re-testing period.  Base EPS was FY10 = 11.8c. Retest  minimum target FY14 = 15.5c 13 September 2011 Performance Shares 1 July 2011 – 30 June 2014 30 June 2015 Performance testing window not yet  commenced Base EPS FY11 = 11.6c. Three year test  minimum FY14 = 14.2c. Minimum retest  FY15 = 15.2c