Support.com 2008 Annual Report Download - page 77

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Table of Contents
SUPPORTSOFT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following table represents stock option activity for the years ended December 31, 2006, 2007, and 2008:
Number of
Shares
Weighted
Average
Exercise
Price
Weighted
Average
Remaining
Contractual
Term
Aggregate
Intrinsic
Value
(in ‘000’s)
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
Granted 4,100,988 $ 3.02
Exercised (2,333) $ 0.10
Forfeited (3,201,840) $ 4.88
Outstanding options at December 31, 2008 13,635,580 $ 4.41 4.54 $ 243
Options vested and expected to vest 13,562,822 $ 4.42 4.51 $ 242
Exercisable at December 31, 2008 7,114,863 $ 5.07 3.66 $ 207
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, 2008, 2007, and 2006. 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 $8,000 for the year ended December 31, 2008. The total fair value of
options vested is $4.9 million as of December 31, 2008.
At December 31, 2008, there was $14.4 million of unrecognized compensation cost related to existing options outstanding which is expected to be
recognized over a weighted average period of 2.8 years.
Employee Stock Purchase Plan
SupportSoft has approved the 2000 Employee Stock Purchase Plan (the “2000 Purchase Plan”). A total of 2,000,000 shares of common stock were initially
reserved for issuance under the 2000 Purchase Plan. On January 1 of each year, the number of shares reserved may be increased by the lesser of 2,000,000
shares, 3% of the outstanding shares, or an amount determined by the Board of Directors. In 2008, the Board of Directors elected to have zero shares added to the
2000 Purchase Plan. The 2000 Purchase Plan permits eligible employees to acquire shares of SupportSoft’s common stock through periodic payroll deductions of
up to 15% of total compensation. Purchases occur on the last day of each January and July following the end of each six-month purchase period. The price at
which the common stock may be purchased is 85% of the lesser of the fair market value of SupportSoft’s common stock at the beginning of the applicable
offering period or the end of the applicable purchase period. Beginning August 1, 2006, the offering period for all new participants in the 2000 Purchase Plan was
reduced to six months. Prior to August 1, 2006, all participants were enrolled in offering periods which could last up to 24 months and contained up to four
separate purchase periods.
74
Source: SUPPORTSOFT INC, 10-K, March 11, 2009