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Support.com, Comcast Cable entered into termination letter agreement

In a regulatory filing, Support.com (SPRT) disclosed that previously, Support.com and Comcast Cable Communications Management (CMCSA) entered into an Amended and Restated Support Services Agreement, effective as of July 5, 2012, which included specific program descriptions attached as Exhibits, under which company provided certain technical support services to Comcast customers. Effective as of December 31 the Parties entered into a termination letter agreement, which provides, among other things, for the Parties to terminate the Signature Support Agreement, in the following manner: The Parties agree to terminate, effective December 31, Program Description Number 1 of the Signature Support Agreement, which covers the company’s provision of services to Comcast Signature Support residential customers. In connection with such termination, the Letter Agreement also provides for the waiver of certain termination fees payable by Comcast to the company, and for the referral arrangement described under Item 1.01(a) below. The Parties agree to terminate, effective March 31, 2014, Program Description Number 2 of the Signature Support Agreement, which covers the provision of services to Comcast Signature Support small business customers. In connection with such termination, the Letter Agreement also provides for the waiver of certain termination fees payable by Comcast to the Company, and for the referral of existing small business customers to the Company during the wind down of the program in the first quarter of 2014. The Parties agree to terminate, effective March 31, 2014, the remainder of the Signature Support Agreement. Associated With Exit or Disposal Activities. In connection with the Parties’ termination of the Signature Support Agreement, the company implemented a reduction in its work-from-home agent and corporate workforce on December 30. The company reduced its agent workforce by 210 employees, and its corporate workforce by 15 employees. The affected employees were terminated as of December 30, with certain corporate employees remaining with the Company for a limited time thereafter. As a result, the company anticipates incurring total severance costs for this reduction of approximately $430,000 in the fourth quarter of 2013, which are expected to be paid in cash during the first quarter of 2014.