Support.com 2006 Annual Report Download - page 69

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SUPPORTSOFT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Note 7. Stockholders’ Equity (Continued)
2006, the maximum number of shares remaining that can be repurchased under this program was 1,807,402.
Stock Option Plans
In 1998, SupportSoft adopted the 1998 Stock Option Plan (the “Plan”). Under this Plan, up to 9,424,434 shares of SupportSoft’s
common stock may be granted as options or sold to eligible participants. Under the Plan, options to purchase common stock may be
granted at no less than 85% of the fair value on the date of the grant (110% of fair value in certain instances), as determined by the
Board of Directors. Options under the Plan can be immediately exercisable at the Board of Directors’ discretion; however, shares
issued are subject to SupportSoft’s right to repurchase such shares at the original issuance price, which lapses in a series of
installments measured from the vesting commencement date of the option.
In February 2000, the Board of Directors approved SupportSoft’s 2000 Omnibus Equity Incentive Plan (the “2000 Incentive
Plan”). A total of 4,000,000 shares of common stock were initially reserved for issuance to eligible participants under the 2000
Incentive Plan. On January 1 of each year, the number of shares reserved automatically increases by the lesser of 2,000,000 shares, 5%
of outstanding shares, or an amount determined by the board of directors. On January 1, 2006, the shares reserved under the 2000
Incentive Plan were automatically increased by 2,000,000 shares. Under both of SupportSoft’s option plans, options generally vest
over a 48−month period from the date of grant and have a maximum term of 10 years. In the fourth quarter of 2005, SupportSoft
began issuing only non−statutory options with a contractual term of 7 years.
As of December 31, 2006, we had approximately 1.3 million shares of common stock reserved for future issuance under both of
these stock option plans.
65
Source: SUPPORTSOFT INC, 10−K, March 16, 2007