Cellcom Israel Ltd. | CIK:0001385145 |

Note 20 - Share-Based Payments

In September 2006, the Company's Board of Directors approved a share based incentive plan for employees, directors, consultants, sub-contractors of the Company and the Company’s affiliates. The terms of share-based payments include a dividend adjustment mechanism. The options will be exercised at net, with no cash transfer.

In March 2015, the Company's board of directors approved a new shared based incentive plan - "2015 Share Incentive Plan" for employees, directors, consultants and sub-contractors of the Company and the Company's affiliates. Under the plan, the Company's board of directors is authorized to determine the terms of the grants, including the identity of grantees, the number of options or restricted stock units (“RSUs”) to be granted, the vesting schedule and the exercise price. The terms of the share based payments include a dividend adjustment mechanism. The options will be exercised at net exercise mechanism, with no cash transfer.

		Number of				Contractual		Adjusted exercise price per share as
		instruments				life of		of December 31,
Grant date/employees entitled		In thousands		Vesting conditions		options		2017
Share options granted in December 2013 to senior employees		234		Three equal installments over three  years of employment		4.5 years		$ 14.65
Share options granted in August 2015 and October 2015 to senior employees		2,660		Three equal installments over three  years of employment		4.5 years		NIS 25.65
Share options granted in November 2016 to senior employees		63		Three equal installments over three  years of employment		4.5 years		NIS 29.97

 

The total compensation expense during the year ended December 31, 2017, related to the options granted is NIS 2 million (2016 - NIS 6 million, 2015 - NIS 3 million).

The changes in the balances of the options were as follows:

* The weighted average of the remaining contractual life of options outstanding as at December 31, 2017 is 1.9 years.