Remuneration repor t (cont’d) 6.5 Share options – performance hurdles The options issued to Mr Kelaher during the financial year  have an exercise price of $6.81, calculated as the three month  Volume Weighted Average Share Price up to and including the  date of grant, being 1 July 2011. The percentage of performance rights that will vest at the  end of the three year performance period each year will be  determined by reference to the level of TSR performance of  the Company over the vesting period compared with the  performance of the comparator group as follows: Shareholders approved that this element of the plan will  not activate unless a minimum average ROE of 5.5% per  annum over the performance period has been achieved.  The performance hurdle for vesting of the options is a pre- determined target growth in Earnings per Share (EPS) over the  performance period. The EPS target will be compound growth of 10% per annum  in each financial year 2011-12, 2012-13 and 2013-14 from a base  point of 40 cents per share, being the final actual EPS figure for  financial year 2010-11. EPS for the purposes of the hurdle will be calculated on the  basis of post-acquisition purchase price allocation Underlying  Net Profit After Tax, post amortisation, divided by average  shares on issue during the year. 250 200 Share options that do not vest will lapse and not be retested.  Consistent with the Company’s hedging policy, Mr Kelaher  is prohibited from entering into hedging arrangements in  respect of unvested share options. 100 Upon exercise of the share options (including payment of the  exercise price) Mr Kelaher will be allocated one ordinary share  in the Company for each option exercised. Shares allocated to  Mr Kelaher will rank equally with all other ordinary shares on  issue. Any dealing in shares resulting from share options that  have been exercised will be subject to IOOF’s Securities and  Insider Trading Policy. IOOF Holdings  ASX200 Uper Quartile  ASX Median The above figure compares IOOF’s TSR performance against  the median TSR of the ASX 200 over the 2009 to 2012  measurement period. The above figure compares IOOF’s UNPAT earnings per share  performance against the performance hurdles over the 2010 to  2014 measurement period. Relative TSR performance % of performance rights vesting At or above 75th percentile 100% At or above median 50% Between median and 75th percentile Progressive vesting on a  straight line basis, such  that 2% of LTI awards  vest for each 1% ranking  increase from 50th  percentile. Below median 0% IOOF Total Shareholder Return Performance vc  Members of ASX200 June 09  Dec 09  June 10  Dec 10  June 11  Dec 11  June 12 250 200 150 100 50 Total Return Index (base=100 @ 30-Jun-09) IOOF Holdings  ASX200 Uper Quartile  ASX Median 20 25 30 35 40 45 50 55 60 2010 2011 2012 2013 2014 2009 AGM Approved Targets 2010 AGM Approved Targets 2011 AGM Approved Targets ACTUAL UNPAT EPS UNPAT EPS (Cents) page 42 UNPAT Earning Per Share