Classmates.com 2006 Annual Report Download - page 96

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The following table summarizes activity for RSUs during the years ended December 31, 2005 and 2006:
At December 31, 2006, the intrinsic value of outstanding restricted stock and RSUs was approximately $44.0 million. Total unrecognized
compensation cost related to unvested restricted stock and RSUs at December 31, 2006 prior to the consideration of expected forfeitures is
approximately $23.8 million and is expected to be recognized over a weighted-average period of 1.4 years. The fair value of RSUs that vested
during the year ended December 31, 2006 was approximately $7.6 million.
Recent Awards
On February 15, 2007, the Compensation Committee of the Board of Directors approved grants of 0.6 million RSUs with a fair value equal
to $8.2 million to the Company’s executive officers. Each RSU entitles the officers to receive one share of the Company’s common stock upon
vesting. The units vest one third annually over the three-year period beginning February 15, 2007.
On February 15, 2007, the Company approved grants of 1.3 million RSUs with a fair value equal to $18.0 million to the Company’s
employees. The units vest twenty-five percent on February 15, 2008 and quarterly thereafter for three years.
Employee Stock Purchase Plan
The Company has a 2001 Employee Stock Purchase Plan (“ESPP”), which expires in the year 2011, and under which approximately
5.8 million shares of the Company’s common stock were reserved under the plan at December 31, 2006. At December 31, 2006, 2.6 million
shares were available for issuance. Under the ESPP, each eligible employee may authorize payroll deductions of up to 15% of their
compensation to purchase shares of common stock on two “purchase dates” each year at a purchase price per share equal to 85% of the lower of
(i) the closing selling price per share of common stock on the employee’s entry date into the two-year offering period in which the purchase date
occurs or (ii) the closing selling price per share on the purchase date. Each offering period has a twenty-four month duration and purchase
intervals of six months.
The fair value of ESPP shares was estimated using the Black-Scholes option pricing model with the following weighted-average
assumptions:
F- 34
RSUs
Outstanding
Weighted
-
Average Grant
Date Fair Value
(in thousands)
Outstanding at January 1, 2005
—
$
—
Granted
1,674
10.77
Vested
—
—
Cancelled
(32
)
10.55
Outstanding at December 31, 2005
1,642
10.78
Granted
2,208
10.36
Vested
(629
)
8.74
Cancelled
(381
)
9.46
Outstanding at December 31, 2006
2,840
$
11.08
Year Ended
December 31, 2006
Risk-free interest rate
3.8
%
Expected life (in years)
0.5
-
2.0
Dividend yield
8.3
%
Volatility
52.1
%