Juno 2013 Annual Report Download - page 132

Table of Contents
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On March 6, 2014, the Compensation Committee of the Board of Directors of United Online, Inc. approved stock option grants to the Company's
executive officers totaling 0.4 million shares. Each stock option entitles the recipient to receive one share of common stock upon exercise of the vested
award and payment of the exercise price. The stock options will vest as to one-third of the total number of options awarded on the first anniversary of
February 15, 2014 and monthly thereafter for 24 consecutive months.
On March 6, 2014, the Secondary Compensation Committee of the Board of Directors of United Online, Inc. approved stock option grants to
certain non-executive officer employees totaling 0.2 million shares. Each stock option entitles the recipient to receive one share of common stock upon
exercise of the vested award and payment of the exercise price. The stock options will vest as to one-third of the total number of options awarded on the
first anniversary of February 15, 2014 and monthly thereafter for 24 consecutive months.
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In 2010, the Company adopted the 2010 Employee Stock Purchase Plan to replace the 2001 Employee Stock Purchase Plan. The Company's 2001
Employee Stock Purchase Plan expired in 2011 following the completion of the final purchase thereunder. In November 2013, the Company adopted a
revised 2010 Employee Stock Purchase Plan. This plan had 1.3 million shares of the common stock reserved and available for issuance at December 31,
2013.
Under the employee stock purchase plans, each eligible employee may authorize payroll deductions of up to 15% of his or her compensation to
purchase shares of United Online, Inc.'s common stock on two purchase dates each year at a purchase price per share equal to 85% of the lower of
(i) the closing market price per share of United Online, Inc.'s common stock on the employee's entry date into the two-year offering period in which the
purchase date occurs or (ii) the closing market price per share of United Online, Inc.'s common stock on the purchase date. Each offering period has a
24-month duration and purchase intervals of six months.
The fair value of employee stock purchase plan shares was estimated using the Black-Scholes option pricing model with the following weighted-
average assumptions:
The assumptions presented in the table above represent the weighted average of the applicable assumptions used to value employee stock purchase
plan shares. The Company calculates expected volatility based on historical volatility of United Online, Inc.'s common stock. The expected term
represents the amount of time remaining in the 24-month offering period. The risk-free interest rate assumed in valuing the employee stock purchase
plan shares is based on the U.S. Treasury yield curve in effect at the time of grant for the expected term. The Company determines the expected dividend
F-38
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     
Risk-free interest rate 0.2% 0.2% 0.4%
Expected term (in years) 0.5 – 2.0 0.5 – 2.0 0.5 – 2.0
Dividend yield 8.1% 7.6% 6.7%
Volatility 40.4% 37.4% 46.6%