Classmates.com 2007 Annual Report Download - page 126

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UNITED ONLINE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
13. COMMITMENTS AND CONTINGENCIES (Continued)
consolidated balance sheets at December 31, 2007 and 2006, respectively. Commitments under standby letters of credit at December 31, 2007
are scheduled to expire as follows (in thousands):
Purchase Obligations
Purchase obligations include agreements to purchase goods or services that are enforceable, legally binding and specify all significant
terms. Purchase obligations exclude agreements that are cancelable without penalty. At December 31, 2007, the Company had the following
purchase obligations (in thousands):
Other Commitments
In the ordinary course of business, the Company may provide indemnifications of varying scope and terms to customers, vendors, lessors,
business partners, and other parties with respect to certain matters, including, but not limited to, losses arising out of the Company's breach of
such agreements, services to be provided by the Company, or from intellectual property infringement claims made by third-parties. In addition,
the Company has entered into indemnification agreements with its directors and certain of its officers and employees that will require the
Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors,
officers or employees. The Company has also agreed to indemnify certain former officers, directors and employees of acquired companies in
connection with the acquisition of such companies. The Company maintains director and officer insurance, which may cover certain liabilities
arising from its obligation to indemnify its directors and certain of its officers and employees, and former officers, directors and employees of
acquired companies, in certain circumstances.
It is not possible to determine the maximum potential amount of exposure under these indemnification agreements due to the limited history
of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. Such indemnification agreements
may not be subject to maximum loss clauses.
Legal Contingencies
In April 2001 and in May 2001, lawsuits were filed in the United States District Court for the Southern District of New York against
NetZero, Inc. ("NetZero"), certain officers and directors of
F-44
Total
Less than
1 Year
1 Year to Less
than 3 Years
3 Years to
Less than 5
Years
More
than 5
Years
Standby letters of credit
$
2,098
$
331
$
1,387
$
300
$
80
Total
Less than 1
Year
1 Year to Less
than 3 Years
3 Years to
Less than 5
Years
More
than 5
Years
Telecommunications purchases
$
8,835
$
6,824
$
2,011
$
—
$
—
Media purchases
3,463
3,296
167
—
—
Total
$
12,298
$
10,120
$
2,178
$
—
$
—