Vonage 2009 Annual Report Download - page 85

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VONAGE HOLDINGS CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)
Restricted stock and restricted stock unit activity under our 2006 Incentive Plan was as follows:
(Shares in Thousands)
Number
of
Shares
Weighted
Average
Grant Date
Fair Value
Aggregate
Intrinsic
Value
Awards outstanding at December 31, 2006 1,912 $6.49
Granted 3,130 $2.40
Exercised (364) $6.42 $ 847
Canceled (1,574) $4.68
Awards outstanding at December 31, 2007 3,104 $3.33 $7,139
Granted 1,747 $1.91
Exercised (786) $3.28 $1,059
Canceled (960) $2.92
Awards outstanding at December 31, 2008 3,105 $2.67 $2,050
Granted 1,188 $0.51
Exercised (971) $1.58 $ 880
Canceled (536) $2.25
Awards outstanding at December 31, 2009 2,786 $1.72 $2,688
The weighted average grant date fair value of
restricted stock and restricted stock units granted was
$0.51, $1.91 and $2.40 during the year ended
December 31, 2009, 2008 and 2007, respectively.
Retirement Plan
In March 2001, we established a 401(k) Retirement
Plan (the “Retirement Plan”) available to employees who
meet the plan’s eligibility requirements. Participants may
elect to contribute a percentage of their compensation to
the Retirement Plan up to a statutory limit. We may make
a contribution to the Retirement Plan in the form of a
matching contribution. The employer matching con-
tribution is 50% of each employee’s contributions not to
exceed $6 in 2007, 2008 and 2009. Our expense related
to the Retirement Plan was $620 $1,307 and $1,695 in
2009, 2008 and 2007, respectively.
Note 11. Commitments and
Contingencies
Capital Leases
Assets financed under capital lease agreements are
included in property and equipment in the consolidated
balance sheet and related depreciation and amortization
expense is included in the consolidated statements of
operations.
On March 24, 2005, we entered into a lease for our
headquarters in Holmdel, New Jersey. We took pos-
session of a portion of the office space at the inception of
the lease, another portion on August 1, 2005 and took
over the remainder of the office space in early 2006. The
overall lease term is twelve (12) years and five (5) months.
In connection with the lease, we issued a letter of credit
which requires $7,350 of cash as collateral, which is
classified as restricted cash. The gross amount of the
building recorded under capital leases totaled $25,709 as
of December 31, 2009 and accumulated depreciation was
approximately $8,853 as of December 31, 2009.
Operating Leases
We have entered into various non-cancelable operat-
ing lease agreements for certain of our existing office and
telecommunications co-location space in the U.S. and for
international subsidiaries with original lease periods expir-
ing between 2010 and 2011. We are committed to pay a
portion of the buildings’ operating expenses as
determined under the agreements.
F-25