Notes to Consolidated Financial Statements continued Thousands of Georgian Lari 25. Net Non-recurring Items 2018 2017 2016 Demerger-related expenses* (30,284) – – Corporate social responsibility expenses** (13,462) – – Termination benefits (4,401) (1,394) (9,820) Loss from sale of subsidiary (1,414) – – Loss from full redemption of debt securities issued – – (43,919) Consulting costs – – (5,258) Impairment of prepayments – – (2,205) Loss from damaged physical assets – – (2,145) Impairment of property and equipment, and intangible assets – – (1,403) Gain from the sale of Class C and Class B shares of Visa Inc. and MasterCard, respectively – – 16,426 Gain on reclassification of AFS investment to investment in associate – – 9,626 Other (7,595) (2,906) (6,657) Net non-recurring items (57,156) (4,300) (45,355) *Demerger-related expenses comprise of: employee compensation expenses in amount of GEL 21,141 including acceleration of share-based compensation of Investment Business Employees, Demerger costs recognised in the consolidated income statement in amount of GEL 7,736 and other Demerger-related expenses in amount of GEL1,407. **Corporate social responsibility comprises the one-off project to support the fiber-optic broadband infrastructure development in rural Georgia. 26. Share-based Payments Executives’ Equity Compensation Plan (“EECP”) In 2015 the Group set up Executive Equity Compensation Trustee – Sanne Fiduciary Services Limited (the “Trustee”) which acts as the trustee of the Group’s Executives’ Equity Compensation Plan. In 2018 the Trustee has repurchased 592,634 shares (2017: 784,084 shares and 2016: 768,953 shares). Following the Demerger, BOGG’s Remuneration Committee resolved to amend the contingent share-based compensation of Management Board members using estimated valuation of the relative share prices of BGEO before the Demerger and BOGG after the listing. In February 2018, BGEO’s Remuneration Committee resolved to award 277,548 ordinary shares of BGEO Group PLC to the members of the Management Board and 79,550 ordinary shares of BGEO to the Group’s 19 executives. Shares awarded to the Management Board and the other 19 executives are subject to three-year vesting, with continuous employment being the only vesting condition for both awards. The Group considers 14 February 2018 as the grant date. The Group estimates that the fair value of the shares awarded on 14 February 2018 was Georgian Lari 114.56 per share. In February 2017, BGEO’s Remuneration Committee resolved to award 323,950 ordinary shares of BGEO Group PLC to the members of the Management Board and 73,550 ordinary shares of BGEO to the Group’s 20 executives. Shares awarded to the Management Board and the other 20 executives are subject to two or three-year vesting for Management Board and three-year vesting for executives, with continuous employment being the only vesting condition for both awards. The Group considers 28 February 2017 as the grant date. The Group estimates that the fair value of the shares awarded on 28 February 2017 was Georgian Lari 90.01 per share. 252 Annual Report 2018Bank of Georgia Group PLC