LeapFrog 2003 Annual Report Download - page 151

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(d) Effect of Board’s Decision. All determinations, interpretations and constructions made by the Board
in good faith shall not be subject to review by any person and shall be final, binding and conclusive on all
persons.
4. Shares Subject to the Plan.
(a) Share Reserve. Subject to the provisions of Section 11(a) relating to Capitalization Adjustments, the
shares of Class A Common Stock that may be issued pursuant to Stock Awards shall not exceed in the aggregate
Nineteen Million (19,000,000) shares of Class A Common Stock; provided that no more than Four Million Seven
Hundred Fifty Thousand (4,750,000) shares of Class A Common Stock may be issued pursuant to Stock Awards
other than Options.
(b) Reversion of Shares to the Share Reserve. If any Stock Award shall for any reason expire or
otherwise terminate, in whole or in part, without having been exercised in full, or if any shares of Class A
Common Stock issued to a Participant pursuant to a Stock Award are forfeited back to or repurchased by the
Company because of or in connection with the failure to meet a contingency or condition required to vest such
shares in the Participant, the shares of Class A Common Stock not acquired, forfeited or repurchased under such
Stock Award shall revert to and again become available for issuance under the Plan; provided, however, that
subject to the provisions of Section 11(a) relating to Capitalization Adjustments, the aggregate maximum number
of shares of Class A Common Stock that may be issued as Incentive Stock Options shall be Nineteen Million
(19,000,000) shares of Class A Common Stock.
(c) Source of Shares. The shares of Class A Common Stock subject to the Plan may be unissued shares or
reacquired shares, bought on the market or otherwise.
5. Eligibility.
(a) Eligibility for Specific Stock Awards.Incentive Stock Options may be granted only to Employees.
Stock Awards other than Incentive Stock Options may be granted to Employees, Directors and Consultants.
Notwithstanding the foregoing or any provision in the Plan to the contrary, Employees, Directors and Consultants
of a Parent shall not be eligible to receive any Stock Awards under the Plan.
(b) Ten Percent Stockholders. ATen Percent Stockholder shall not be granted an Incentive Stock Option
unless the exercise price of such Option is at least one hundred ten percent (110%) of the Fair Market Value of
the Class A Common Stock on the date of grant and the Option is not exercisable after the expiration of five (5)
years from the date of grant.
(c) Section 162(m) Limitation on Annual Grants. Subject to the provisions of Section 11(a) relating to
Capitalization Adjustments, no Employee shall be eligible to be granted Stock Awards covering more than Two
Million (2,000,000) shares of Class A Common Stock during any calendar year.
(d) Consultants. AConsultant shall not be eligible for the grant of a Stock Award if, at the time of grant,
aForm S-8 Registration Statement under the Securities Act (“Form S-8”) is not available to register either the
offer or the sale of the Company’s securities to such Consultant because of the nature of the services that the
Consultant is providing to the Company, because the Consultant is not a natural person, or because of any other
rule governing the use of Form S-8.
6. Option Provisions.
Each Option shall be in such form and shall contain such terms and conditions as the Board shall deem
appropriate. All Options shall be separately designated Incentive Stock Options or Nonstatutory Stock Options at
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