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Table of Contents
SUPPORTSOFT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The estimated future amortization expense of intangible assets, with the exception of the indefinite-life intangible assets as of December 31, 2008 is as
follows (in thousands):
Fiscal Year Amount
2009 $ 143
2010 18
2011 6
Total $ 167
The following table summarizes the components of purchased technology as of December 31, 2008 The Company did not acquire any purchased
technology in 2007. (in thousands):
As of
December 31,
2008
Purchased technology $ 1,375
Accumulated amortization (57)
Total purchased technology, net $ 1,318
Note 6. Commitments and Contingencies
Headquarters office lease. In November 2006, the Company entered into a noncancelable lease agreement for its new headquarters office facility located
in Redwood City, California. The lease commenced on January 1, 2007 and ends on July 31, 2012. The annual fixed rents are $783,000, $783,000, $805,000 and
$483,000 for the years ended 2009, 2010, 2011 and 2012, respectively, as long as the Company is not in default under the term of the lease. In addition to base
rent, commencing on the first anniversary of the lease and for each year thereafter, the Company will pay as additional rent, with an amount equal to its
proportionate share, or 27% initially, of the amount exceeding the landlord’s operating expenses incurred in calendar 2007. The Company issued an unsecured
irrevocable standby letter of credit of $400,000 to the landlord as a security deposit under the lease. If the Company is not then in default under the lease, the
deposit amount may be reduced to $300,000 on February 1, 2009, $200,000 on February 1, 2010, and $100,000 on February 1, 2011.
Other facility leases. The Company leases its facilities under noncancelable operating lease agreements, which expire at various dates through 2012.
Total facility rent expense pursuant to all operating lease agreements was approximately $1.8 million, $2.1 million, and $1.5 million for the years ended
December 31, 2008, 2007, and 2006, respectively.
As of December 31, 2008, minimum payments due under all noncancelable lease agreements (including for offices that have been impaired) were as
follows (in thousands):
Years ending December 31,
Operating
Leases
2009 $ 1,624
2010 1,564
2011 1,042
2012 496
Total minimum lease and principal payments $ 4,726
70
Source: SUPPORTSOFT INC, 10-K, March 11, 2009