60 ANNUAL REPORT  2013  KATHMANDU The percentage of the EPS growth related rights scales according to the compound average annual EPS growth achieved as follows: The fair value of the rights have been assessed as the Kathmandu Holdings Limited share price as at the grant date less the present  value of the dividends forecast to be paid prior to each vesting date. The estimated fair value for each tranche of options issued is  amortised over the vesting period from the grant date. The Company has recognised a compensatory expense in the income statement  of $47,907 (2012: $78,923) which represents this amortisation. Performance rights granted to Key Management Personnel under the shareholder approved Employee Long Term Incentive Plan are  summarised below: Short Term Incentive performance rights vest: The performance periods and vesting dates are summarised below: The fair value of the rights were assessed as the Kathmandu Holdings Limited share price as at the grant date less the present value of  the dividends forecast to be paid prior to the vesting date. The fair value of each right has been calculated to be NZ$1.58  per right (2012: $2.23). The non-market performance hurdles set for the year ending 31 July 2013 were not met and accordingly: •  no expense has been recorded in the income statement. •  all of these rights have lapsed •  upon the Company achieving specified non-market performance hurdles; and •  the employee remaining in employment with the Company until the vesting date. Key Management Personnel EPS Growth % Vesting < 10% 0% >=10%, < 11% 50% >=11%, < 12% 60% >=12%, < 13% 70% >=13%, < 14% 80% >=14%, < 15% 90% >=15% 100% 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 04 Dec 2012 - 121,156 - (121,156) - 30 Nov 2011 - - - - - - 121,156 - (121,156) - 2013 2012 Grant Date 04 Dec 2012 30 Nov 2011 Performance period (year ending) 31 Jul 2013 31 Jul 2012 Vesting Date 31 Jul 2015 31 Jul 2014