Support.com 2007 Annual Report Download - page 75

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SUPPORTSOFT, INC
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 5. Restructuring Obligations and Other Charges (Continued)
The following table summarizes activity associated with the restructuring and related expenses incurred for the years ended December 31, 2007, 2006 and
2005 (in thousands):
Severance(1)
Facilities(2)
Total
Restructuring costs incurred in 2005 $ 456 $ 189 $ 645
Cash payments (346) (34) (380)
Restructuring obligations, December 31, 2005 $ 110 $ 155 $ 265
Restructuring costs incurred in 2006 817 — 817
Cash payments (799) (155) (954)
Restructuring obligations, December 31, 2006 $ 128 $ — $ 128
Restructuring costs incurred in 2007 1,179 11 1,190
Cash payments (731) (10) (741)
Restructuring obligations, December 31, 2007 $ 576 $ 1 $ 577
(1)
Severance costs include those expenses related to severance pay and related employee benefit obligations.
(2)
Facilities costs include obligations under non-cancelable leases for facilities that we will no longer occupy, as well as penalties
associated with early terminations of leases and disposal of fixed assets. The related leases are short term in nature expiring in
less than one year. No sublease income has been included.
Note 6. Stockholders' Equity
Common Stock
At December 31, 2007, SupportSoft has reserved 15,630,016 and 1,776,728 shares of common stock for issuance pursuant to stock option and employee
stock purchase plans, respectively.
On April 27, 2005, the Company's board of directors authorized the repurchase of up to 2,000,000 outstanding shares of the Company's common stock. In
the second quarter of 2005, the Company repurchased 192,598 shares of outstanding common stock at a cost of $922,294 or an average cost of $4.76 per share.
There were no repurchases in 2006 or 2007. Therefore, as of December 31, 2007, the maximum number of shares remaining that can be repurchased under this
program was 1,807,402.
Stock Option Plans
During fiscal 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.
71
Source: SUPPORTSOFT INC, 10-K, March 13, 2008