| A. |
Grant of share options to employees and directors of the Company
|
| B. |
As of December 31, 2017, the Company has 2 stock option plans for employees, directors, consultants and other service providers of the Group (the “2003 Plan” and the “2011 Plan”). No further grants may be made under the 2003 Plan.
|
| C. |
The number and weighted average exercise prices of share options are as follows:
|
|
Weighted
|
Weighted
|
|||||||||||||||||||||||
|
average
|
Weighted
|
average
|
||||||||||||||||||||||
|
exercise
|
Number of
|
average
|
Number of
|
exercise
|
Number of
|
|||||||||||||||||||
|
price*
|
options
|
exercise price*
|
options
|
price*
|
options
|
|||||||||||||||||||
|
2017
|
2017
|
2016
|
2016
|
2015
|
2015
|
|||||||||||||||||||
|
US dollars
|
US dollars
|
US dollars
|
||||||||||||||||||||||
|
Balance at January 1
|
6.45
|
6,668,441
|
5.43
|
5,531,623
|
5.43
|
4,540,158
|
||||||||||||||||||
|
Forfeited during the year
|
7.99
|
(387,447
|
)
|
6.83
|
(235,718
|
)
|
7.09
|
(364,408
|
)
|
|||||||||||||||
|
Exercised during the year
|
6.27
|
(2,382,927
|
)
|
3.59
|
(1,216,115
|
)
|
1.70
|
(218,277
|
)
|
|||||||||||||||
|
Granted during the year
|
19.15
|
882,250
|
7.04
|
2,588,651
|
6.76
|
1,574,150
|
||||||||||||||||||
|
Outstanding at
|
||||||||||||||||||||||||
|
December 31
|
9.76
|
4,780,317
|
6.45
|
6,668,441
|
5.43
|
5,531,623
|
||||||||||||||||||
|
Exercisable at
|
||||||||||||||||||||||||
|
December 31
|
7.68
|
1,595,666
|
5.19
|
1,882,267
|
2.91
|
1,949,459
|
||||||||||||||||||
| D. |
Total expense recognized as salary expense for years ended December 31, 2017 are USD 6,370 thousand (USD 4,439 thousand and USD 3,091 thousand for years ended December 31, 2016 and 2015, respectively).
|
| E. |
The fair value of share options granted to employees, directors, consultants and other service providers is measured using the binomial model. Measurement inputs include the share price on the measurement date, the exercise price of the instrument, expected volatility (based on the historical volatility), the expected life span of the options taking in consideration certain acceleration terms, and the risk-free interest rate (based on government debentures). Service and non-market performance conditions attached to the transactions are not taken into account in determining fair value.
|
|
Share price
|
|||||||||||||||||||||||||||||||||||||
|
Contractual
|
that served
|
Total
|
|||||||||||||||||||||||||||||||||||
|
Vesting
|
life of the
|
Average
|
as a basis
|
fair value of
|
|||||||||||||||||||||||||||||||||
|
Grant date
|
Number of
|
Period
|
options
|
Interest
|
Expected
|
exercise
|
for pricing
|
the benefit on
|
|||||||||||||||||||||||||||||
|
DD/MM/YEAR
|
Offerees
|
instruments
|
(Years)
|
(Years)
|
rate
|
Volatility**
|
price*
|
the option*
|
the grant date
|
||||||||||||||||||||||||||||
| % | % |
USD
|
USD
|
USD thousands
|
|||||||||||||||||||||||||||||||||
|
29/01/2015
|
Officer and consultant
|
110,000
|
2-4
|
7
|
1.5
|
48.61
|
5.83
|
5.35
|
268
|
||||||||||||||||||||||||||||
|
15/02/2015
|
Employees
|
104,250
|
2-4
|
7
|
1.65
|
48.65
|
5.86
|
5.86
|
269
|
||||||||||||||||||||||||||||
|
26/02/2015
|
Officer
|
100,000
|
1.5-3.5
|
7
|
1.44
|
48.69
|
6.28
|
5.82
|
261
|
||||||||||||||||||||||||||||
|
04/05/2015
|
Employees and consultant
|
144,500
|
2-4
|
7
|
1.36
|
48.88
|
6.44
|
6.44
|
440
|
||||||||||||||||||||||||||||
|
15/07/2015
|
Officers, employees and consultants
|
941,900
|
2-4
|
7
|
2.03
|
48.84
|
7.17
|
7.17
|
3,269
|
||||||||||||||||||||||||||||
|
08/10/2015
|
CEO
|
60,000
|
2-4
|
6.77
|
1.7
|
49.37
|
7.01
|
5.75
|
153
|
||||||||||||||||||||||||||||
|
29/10/2015
|
Employees
|
113,500
|
2-4
|
7
|
1.64
|
48.92
|
5.81
|
5.56
|
294
|
||||||||||||||||||||||||||||
|
14/02/2016
|
Employees and consultants
|
112,500
|
2-4
|
7
|
1.48
|
49.25
|
5.32
|
4.35
|
216
|
||||||||||||||||||||||||||||
|
02/05/2016
|
Employee
|
42,500
|
2-4
|
7
|
1.52
|
48.14
|
6.06
|
6.06
|
120
|
||||||||||||||||||||||||||||
|
10/05/2016
|
Consultant
|
25,000
|
2-4
|
7
|
1.47
|
48.10
|
5.91
|
5.58
|
68
|
||||||||||||||||||||||||||||
|
18/05/2016
|
Officers and employees
|
1,424,327
|
2-4
|
1.95-7.00
|
0.24-1.5
|
44.22-48.72
|
5.80
|
5.35
|
3,474
|
||||||||||||||||||||||||||||
|
19/07/2016
|
CEO
|
386,574
|
2-4
|
6.77
|
1.43
|
46.83
|
5.77
|
9.98
|
2,333
|
||||||||||||||||||||||||||||
|
28/07/2016
|
Officer, Employees and consultant
|
116,900
|
2-4
|
7
|
0.18-1.42
|
46.06-46.73
|
9.79
|
9.79
|
531
|
||||||||||||||||||||||||||||
|
06/11/2016
|
Employees
|
240,850
|
2-4
|
1.48-7.00
|
0.22-1.64
|
45.94-46.63
|
11.57
|
11.06
|
1,209
|
||||||||||||||||||||||||||||
|
28/11/2016
|
Directors
|
240,000
|
1-3
|
6.88-7.00
|
1.90-1.94
|
46.60-46.62
|
11.71
|
11.40
|
1,266
|
||||||||||||||||||||||||||||
|
14/02/2017
|
Employees
|
201,500
|
2-4
|
1.21-7.00
|
0.20-1.95
|
46.34-46.38
|
11.52
|
10.93
|
1,009
|
||||||||||||||||||||||||||||
|
04/05/2017
|
Employees and Consultant
|
74,500
|
2-4
|
0.99-7.00
|
0.17-1.84
|
46.68-49.97
|
17.95
|
17.95
|
642
|
||||||||||||||||||||||||||||
|
15/06/2017
|
Employees and Officers
|
245,750
|
2-4
|
0.87-7.00
|
0.11-1.68
|
46.76-48.25
|
19.56
|
17.62
|
1,936
|
||||||||||||||||||||||||||||
|
23/08/2017
|
Employees and Consultants
|
125,500
|
2-4
|
7.00
|
1.26
|
47.22
|
19.39
|
19.18
|
1,120
|
||||||||||||||||||||||||||||
|
07/09/2017
|
Consultant
|
50,000
|
2
|
7.00
|
1.33
|
47.35
|
23.60
|
23.60
|
582
|
||||||||||||||||||||||||||||
|
03/10/2017
|
Officer
|
135,000
|
2-4
|
7.00
|
1.40
|
47.34
|
25.04
|
25.04
|
1,611
|
||||||||||||||||||||||||||||
|
05/11/2017
|
Consultant
|
50,000
|
2-4
|
7.00
|
1.37
|
47.70
|
28.75
|
28.75
|
714
|
||||||||||||||||||||||||||||
| * |
The exercise price and share price are denominated in NIS and are re-measured using historic exchange rates.
|
| ** |
Expected volatility is estimated by considering historic share price volatility of the Company. The risk-free interest rate was determined on the basis of non-interest bearing NIS-denominated Government debentures with a remaining life equal to the expected term of the options.
|