Classmates.com 2007 Annual Report Download - page 112

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UNITED ONLINE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
5. STOCK-BASED COMPENSATION PLANS
The Company has three active equity plans under which it is authorized to grant stock options, stock awards and restricted stock units.
Stock options granted to employees generally vest over a three- or four-year period under a variety of vesting schedules. Stock options
granted to non-employee directors generally vest over a nine-month to three-year period, either monthly or annually. Stock option grants expire
after ten years unless canceled earlier due to termination of employment or Board of Directors service. Certain stock option grants are
immediately exercisable for unvested shares of common stock, with the unvested portion of the shares remaining subject to repurchase by the
Company at the exercise price until the vesting period is complete.
Restricted stock units granted to employees generally vest over a two- to four-year period under a variety of vesting schedules. Restricted
stock units granted to non-employee directors generally vest annually over a one-year period.
Upon the exercise of a stock option award, the vesting of a restricted stock unit or the award of common stock, shares of common stock are
issued from authorized but unissued shares.
The following table summarizes the aggregate shares reserved for issuance and the shares available for grant under the Company's equity
plans at December 31, 2007 (in thousands):
The Company cannot grant restricted stock units from the Classmates Online, Inc. 2004 Stock Plan.
Stock-Based Compensation
The following table summarizes the stock-based compensation that has been included in the following captions within the consolidated
statements of operations for each of the periods presented (in thousands):
F-30
Aggregate
Shares
Reserved for
Issuance
Shares
Available
for Grant
2001 Stock Incentive Plan
23,776
2,832
2001 Supplemental Stock Incentive Plan
4,825
522
Classmates Online, Inc. 2004 Stock Plan
1,128
493
Total
29,729
3,847
Year Ended December 31,
2007
2006
2005
Operating expenses:
Cost of revenues
$
884
$
817
$
183
Sales and marketing
4,031
3,457
954
Product development
4,941
5,367
1,069
General and administrative
9,693
9,527
7,746
Total stock
-
based compensation
$
19,549
$
19,168
$
9,952
Tax benefit recognized
$
4,529
$
3,962
$
1,688