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(a) After testing the SPRs notionally granted on 26 February 2010 against the relevant performance hurdle, the SPRs are deposited into (or deducted from) the relevant share bank account for each participant. 

There were nil SPRs vested but not exercisable at 30 June 2011. 

The fair value of services received in return for SPRs granted are measured by reference to the fair value of SPRs granted. The estimate of the fair value of services received is measured based on the Black-Scholes and Monte Carlo simulation methods. The contractual life of the SPRs is used as an input into this model. Expectations of early vesting are incorporated into the Monte Carlo simulation method. Expected volatility is based on the historical share price volatility over the past two years. 

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The total expense recognised in the income statement as part of employee benefits expense during the year in relation to SPRs granted to the Managing Director and executives under the AGL Long-Term Incentive Plan was: 

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