eFax 2013 Annual Report Download - page 83

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Restricted stock unit activity for the year ended December 31, 2013 is set forth below:
Ziff Davis, Inc. Equity Incentive Plan
directors, officers, employees and consultants. The Ziff Davis Plan provides for the granting of incentive stock options, nonqualified stock options, stock appreciation rights,
restricted stock, restricted stock units and other share-
based awards. The number of authorized shares of common stock that may be used for the Ziff Davis Plan purposes is
15,000,000
. In addition, certain stockholders have put rights under certain circumstances in which the stockholder may elect to cause ZD, Inc. to purchase any or all of the
shares of common stock (to the extent vested pursuant to the terms of the Ziff Davis Plan) and preferred stock owned by such stockholder. ZD, Inc. also has the option to call
under certain circumstances the common stock issued pursuant to the Ziff Davis Plan (to the extent vested pursuant to the terms of the Ziff Davis Plan) and shares of preferred
stock. Management has determined that the circumstances in which the put right held by the stockholder is exercisable are within the control of the Company. Accordingly,
management determined that liability classification is not required.
ZD, Inc. granted 13,035,000 shares of re stricted stock during the year ended December 31, 2012
to its senior staff pursuant to the Ziff Davis Plan, which shares vest
evenly over a 5 year period. Based upon the terms of the Ziff Davis Series A Stock discussed in Note 9 - Mandatorily Redeemable Financial Instrument, th
e Company
determined at the relevant grant date that the fair value o f the ZD, Inc. restricted stock was zero
. Accordingly, no compensation expense was recorded for the ZD, Inc. restricted
stock for the year ended December 31, 2012 .
In con
nection with the December 31, 2013 reorganization of ZD, Inc. into Ziff Davis, LLC, the Company acquired all of the minority holders' equity interests in ZD,
Inc. As a result, on December 31, 2013, Ziff Davis LLC became a wholly-owned subsidiary of j2 Global, Inc. No further securities are issuable under the Ziff Davis Plan.
Employee Stock Purchase Plan
In May of 2001, j2 Global established the j2 Global, Inc. 2001 Employee Stock Purchase Plan, as amended (the “Purchase Plan”),
which provides for the issuance of a
maximum of 2,000,000 shares of common stock. Under the Purchase Plan, eligible employees can have up to 15%
of their earnings withheld, up to certain maximums, to be
used to purchase shares of j2 Global’s common stock at certain plan-
defined dates. The price of the common stock purchased under the Purchase Plan for the offering periods is
equal to 95% of the fair market value of the common stock at the end of the offering period. During 2013 , 2012 and 2011 , 5,402 , 5,797 and 5,235
shares, respectively were
purchased under the Purchase Plan at price ranging from $52.23 to $30.23 per share. As of December 31, 2013 , 1,640,199
shares were available under the Purchase Plan for
future issuance.
j2 Global has two significant 401(k) Savings Plans covering the employees of j2 Global, Inc. and its consolidated subsidiary Ziff Davis, Inc. Eligible employees may
contribute through payroll deductions. The Company may make annual contributions to the j2 Global 401(k) Savings Plan at the discretion of j2 Global's Board of Directors and
employees within the Ziff Davis, Inc. 401(k) Savings Plan receive 50% of the first 4% of eligible compensation with a maximum of 2% of salary. For the years ended
- 81 -
Number of
Shares
Weighted-Average
Remaining
Contractual
Life (in Years)
Aggregate
Intrinsic
Value
Outstanding at January 1, 2012
32,750
Granted
91,166
Vested
(1,700
)
Canceled
(6,750
)
Outstanding at December 31, 2012
115,466
Granted
38,375
Vested
(11,116
)
Canceled
(33,000
)
Outstanding at December 31, 2013
109,725
2.2
$
5,487,347
Vested and expected to vest at December 31, 2013
74,509
1.9
$
3,726,174
14.
Defined Contribution 401(k) Savings Plan