Support.com 2007 Annual Report Download - page 76

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SUPPORTSOFT, INC
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 6. Stockholders' Equity (Continued)
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, 2007, 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, 2007, we had approximately 2.9 million shares of common stock reserved for future issuance under both of these stock option plans.
The following table represents stock option activity for the years ended December 31, 2005, 2006, and 2007:
Number of
Shares
Weighted
Average
Exercise Price
Weighted
Average
Remaining
Contractual
Term
Aggregate
Intrinsic Value
(in '000's)
Outstanding options at December 31, 2004 10,472,689 $ 6.65 8.04 $ 16,675
Granted 2,209,385 $ 4.90
Exercised (959,016) $ 2.25
Forfeited (1,598,920) $ 8.05
Outstanding options at December 31, 2005 10,124,138 $ 6.46 7.37 $ 3,573
Granted 7,102,965 $ 4.44
Exercised (807,967) $ 4.71
Forfeited (2,838,262) $ 7.64
Outstanding options at December 31, 2006 13,580,874 $ 5.33 6.44 $ 13,048
Granted 3,291,254 $ 4.89
Exercised (1,292,953) $ 3.33
Forfeited (2,840,410) $ 7.36
Outstanding options at December 31, 2007 12,738,765 $ 4.98 5.82 $ 3,377
Options vested and expected to vest 12,710,315 $ 4.98 5.82 $ 3,371
Exercisable December 31, 2007 5,920,921 $ 5.46 5.60 $ 1,954
The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value that would have been received by the option holders had they all
exercised their options on December 31, 2007, 2006, and 2005. This amount will change based on the fair market value of the Company's stock. The total
aggregate intrinsic value of options exercised under the Company's stock options plans was $7.4 million for the year ended December 31, 2007. The total fair
value of options vested is $4.7 million as of December 31, 2007.
72
Source: SUPPORTSOFT INC, 10-K, March 13, 2008