Classmates.com 2003 Annual Report Download - page 66

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Options granted to employees under the Plans generally vest over a three or four-year period. Options granted to directors generally vest
over a nine-month to three-year period, either monthly or annually. Option grants expire after ten years unless cancelled earlier due to
termination of employment or Board service. Certain grants are immediately exercisable for unvested shares of common stock, with the
unvested portion of the shares remaining subject to repurchase by the
F-30
Company at the exercise price until the vesting period is complete. The Company had 0.2 million unvested shares of common stock issued and
outstanding under the Plans at December 31, 2003, which were subject to repurchase by the Company at a weighted average exercise price of
$1.23.
The following table summarizes activity under the Plans during the six months ended December 31, 2003 and the years ended June 30,
2003, 2002 and 2001 (in thousands, except per share amounts):
Options granted during the six months ended December 31, 2003 and the years ended June 30, 2003 and 2002 did not result in any
deferred stock-based charges. Options granted and restricted stock issued (excluding restricted stock issued in connection with acquisitions)
during the year ended June 30, 2001 resulted in total deferred stock-based charges of $7.8 million, which was included in deferred stock-based
charges in stockholders' equity. Deferred stock-based charges are amortized over the service period. During the years ended June 30, 2003,
2002 and 2001, compensation expense included in the statement of operations amounted to $0.1 million, $3.4 million and $8.5 million,
respectively. At June 30, 2003, deferred stock-based charges were fully amortized.
F-31
Additional information with respect to the outstanding options at December 31, 2003 is as follows (in thousands, except per share
amounts):
Number
of Shares
Price
Per Share
Weighted
Average
Exercise Price
Options outstanding at July 1, 2000
2,571
$0.10
-
$118.54
$
43.07
Assumed in connection with acquisitions
65
0.03 -
2.33
1.67
Granted
3,717
1.67 -
26.47
7.93
Exercised
(77
) 0.10 -
2.90
1.13
Canceled
(1,767
) 0.33 -
115.00
41.39
Options outstanding at June 30, 2001
4,509
0.03
-
118.54
14.87
Assumed in connection with acquisition
4,812
0.84 -
84.03
12.46
Granted
9,591
1.23 -
8.01
2.55
Exercised
(1,640
) 0.33 -
5.04
2.26
Canceled
(2,055
) 0.03 -
115.00
11.92
Options outstanding at June 30, 2002
15,217
0.11
-
118.54
7.83
Granted
3,306
5.73 -
17.97
16.42
Exercised
(2,682
) 0.11 -
16.81
2.63
Canceled
(1,106
) 0.84 -
75.42
16.29
Options outstanding at June 30, 2003
14,735
0.11
-
118.54
9.98
Granted
292
16.73 -
27.47
20.69
Exercised
(1,698
) 0.84 -
24.27
5.22
Canceled
(122
) 1.23 -
72.29
9.25
Options outstanding at December 31, 2003
13,207
$0.11
-
$118.54
$
10.83
Options Outstanding
Options Exercisable
Options Exercised Subject to
Repurchase
Weighted