Classmates.com 2004 Annual Report Download - page 105

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During the year ended December 31, 2004, the six months ended December 31, 2003 and the years ended June 30, 2003 and 2002,
approximately 0.4 million, 0.5 million, 0.9 million and 0.3 million shares were purchased under the Company's ESPP at weighted average
purchase prices of $7.98, $3.16, $1.99 and $1.44 per share, respectively. At December 31, 2004, there were approximately 1.8 million shares
available for future issuance. The weighted average fair value of ESPP shares purchased during the year ended December 31, 2004, the six
months ended December 31, 2003 and the years ended June 30, 2003 and 2002 were $6.38, $2.21, $1.29 and $0.82 per share, respectively.
Equity Awards
In January 2004, the Board of Directors issued 575,000 restricted shares of common stock at par value to certain of the Company's
executive officers. The shares vest entirely at the end of the four-year period from the date of grant. In connection with these shares, the
Company recorded deferred stock-based compensation of $11.4 million, which is being amortized on a straight-line basis over the four-year
vesting period. In December 2004, the Company repurchased 0.1 million restricted shares of common stock in connection with the resignation of
an executive officer. In connection with the repurchase, the Company reversed $2.0 million in deferred stock-based compensation.
In January 2004, the Compensation Committee of the Board of Directors approved stock option grants of 1.2 million shares to the
Company's executive officers. The shares are immediately exercisable, vest over a three-year period from the date of grant and have an exercise
price of $18.70.
In January 2004, the Compensation Committee of the Board of Directors approved stock option grants of 0.1 million shares to the members
of the Board. The shares are immediately exercisable, vest monthly over a one-year period from the date of grant and have an exercise price of
$18.70.
10. COMMITMENTS AND CONTINGENCIES
Capital Lease Commitments
The Company has entered into certain noncancelable lease obligations for computer and office equipment. The future minimum lease
payments are discounted using varying rates over the lease terms. Future minimum lease payments at December 31, 2004 are as follows (in
thousands):
F-36
Year Ending
December 31,
2005
$
669
2006
399
2007
332
Total minimum obligations
1,400
Less amount representing interest
(81
)
Present value of minimum obligations
1,319
Less current portion
(621
)
Non
-
current portion
$
698