Sohu.com (SOHU)

1) Sohu.com Inc. Share Awards

The Company’s 2000 Stock Incentive Plan, including stock options and restricted stock units, provides for the issuance of up to 9,500,000 shares of common stock. The maximum term of any issued stock right is ten years from the grant date.

The Company has reserved 9,500,000 shares of new common stock for issuance. As of March 31, 2009, 1,055,677 shares were available for grant under the plan.

A summary of option activity under the 2000 Stock Incentive Plan as of March 31, 2009, and changes during the three month period then ended, is presented below:

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The aggregate intrinsic value in the preceding table represents the difference between the Company’s closing stock price of $41.31 on March 31, 2009 and the exercise price.

The total intrinsic value of options exercised during the three month period ended March 31, 2009 was $3.2 million.

A summary of restricted stock unit activity under the 2000 Stock Incentive Plan as of March 31, 2009, and changes during the three month period ended, is presented below:

As of March 31, 2009, there was $84,000 of unrecognized compensation cost related to options for which services had not been provided. The cost is expected to be recognized over a weighted average period of 0.34 years. Total fair value of options expensed during the three months ended March 31, 2009 and 2008 was $0.5 million and $0.6 million, respectively.

As of March 31, 2009, there was $3.9 million of unrecognized compensation cost related to unvested restricted stock units. The cost is expected to be recognized over a weighted average period of 0.92 years. Total fair value of restricted stock units expensed during the three months ended March 31, 2009 and 2008 was $1.1 million for both periods.

There were no capitalized share-based compensation costs during the three months ended March 31, 2009 and 2008.

During the three months ended March 31, 2009 and 2008, total cash received from the exercise of stock options amounted to $1.8 million and $0.5 million, respectively.

1) Sohu.com Inc. Share Awards

The total share-based compensation expenses related to Sohu.com Inc. share awards recognized in the consolidated income statements during the three months ended March 31, 2009 and 2008 were $2.3 million and $3.5 million, respectively. As of March 31, 2009, there was $4.0 million of unrecognized compensation expense related to unvested options and restricted stock units.