LeapFrog 2003 Annual Report Download - page 131

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In March 2001, we sold 2,000,000 shares of our Series A preferred stock for aggregate consideration of $25
million to CSC LF Holdings, LLC, Publishing and Broadcasting International Ltd. and Windsor Digital Studio
LLC. In connection with this sale, we entered into an Amended and Restated Stockholders Agreement with these
purchasers, Knowledge Kids, L.L.C., an affiliate of Knowledge Universe, FrogPond, Michael C. Wood and
Explore Technologies, a holder of our Class A common stock. In May 2003, the agreement was amended and
restated to delete provisions that terminated as a result of our initial public offering and subsequent trading
results of our Class A common stock, to clarify the transfer provisions set forth in the agreement and to accept
and acknowledge the distribution of shares by certain stockholders that are a party to the agreement. Explore
Holdings LLC and FrogPond LLC are not parties to this Fourth Amended and Restated Stockholders Agreement
as neither entity held any of our common stock as of the date of the amended and restated agreement.
For the year ending December 31, 2003, we purchased software products and support services from Oracle
Corporation totaling $569,000. Lawrence J. Ellison, the Chairman and Chief Executive Officer of Oracle
Corporation, may be deemed to have or share the power to direct the voting and disposition, and therefore to
have beneficial ownership, of a majority of the voting power of our common stock. For a more complete
discussion of Mr. Ellison’s beneficial ownership of our common stock, see “Security Ownership of Certain
Beneficial Owners and Management.” Jeffrey Berg, a member of our board of directors, serves on the board of
directors of Oracle Corporation.
We believe that our board of directors will take such action as is necessary to comply with applicable
corporate law in connection with any transactions with affiliates, including in appropriate cases obtaining
approval by our independent directors.
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