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Notes to the consolidated fnancial statements (continued)

for the year ended 30 June 2011

12. Share-based payments (continued)

12.1 Executive Performance Share Plan

12.1.1 EPSP performance criteria

GRANT DATE 1 OCTOBER 2005 – 3 MAY 2010 FROM 1 OCTOBER 2010

Performance criteria The criteria is based on total shareholder returns (TSR) achieved by the Company over a performance period

compared to the TSR of a comparator group.

Comparator group Top 50 Industrial companies in the S&P/ASX 100,

excluding listed property trusts

Top 50 Industrial companies in the S&P/ASX 100, excluding mining companies and listed property trusts

Performance results and vesting rules

Shares granted under this plan will vest and are allocated based on the Company’s TSR performance results:

COMPANY PERFORMANCE (TSR PERCENTILE RANKING) % OF SHARES AVAILABLE FOR VESTING AND ALLOCATION

< 50th percentile Nil

50th percentile 50%

> 50th but < 75th percentile an additional 2% of the shares will vest for each

1% increase (on a straight line basis) in the Company’s TSR ranking above the 50th percentile

75th percentile or above 100%

Initial performance period The initial performance period commences on the grant date and ends on the initial vesting date which

is generally three years after the grant date.

At initial vesting date The executive has the right to elect to receive an

allocation of shares, based on the performance result described above, or extend the performance period a further two years. If the Executive elects to accept the year three performance result, any shares subject to that same offer that are not allocated are forfeited.

Shares are vested and allocated based on the performance result described above. Any shares offered that are not allocated are forfeited. No extension of performance period is permitted.

During the extended performance period (Period from the initial vesting date to the end of the extended performance period (generally at the end of year fve))

Performance measurements are undertaken during the extended performance period on a six monthly basis. Executives electing to extend the performance period waive their right to make any further election in regard to acceptance of a performance result (and therefore cannot have shares allocated) until the end of year fve. The executives’ entitlement to an allocation of shares at the end of year fve will be based on the highest performance measurement result recorded at any of the prescribed performance measurement points over the extended performance period. Shares not allocated at the end of the extended performance period are forfeited.

Not applicable

12.1.2 Shares granted under the EPSP

The fair value of services received in return for deferred ordinary shares granted is measured by reference to the fair value of the shares granted. The estimate of the fair value of the shares is measured based on a Monte Carlo simulation pricing model and refects the fact that vesting of the shares is dependent on meeting performance criteria based on TSR. The vesting of the shares is also subject to non-market conditions but these are not taken into account in the grant date fair value measurement of the services received.

Inputs into the model include expected volatility which is based on the Company’s (2010: Suncorp-Metway Ltd) historic volatility and a risk-free interest rate based on Australian Government bonds.