LeapFrog 2003 Annual Report Download - page 89

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LEAPFROG ENTERPRISES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except per share and percent data)
granted to any owner of 10% or more of the total combined voting power of the Company shall be 110% of such
fair market value. The aggregate fair market value of Class A common stock with respect to which incentive
stock options are exercisable by an optionee during any calendar year shall not exceed $100.
In July 2002, the Board of Directors adopted, and the Company’s stockholders approved, the 2002 Non-
Employee Directors’ Stock Option Plan (“NED Plan”), under which 750 shares of Class A Common Stock have
been reserved. The NED Plan provides for the following grants to be made to Non- Employee Directors without
further action of the Company’s Board of Directors: (1) an option to purchase 25 shares of Class A common
stock upon their initial appointment or election to the Board (2) an option to purchase 10 shares of Class A
common stock shall be granted annually on July 1, commencing in 2003, to all existing Non-Employee Directors.
Shares will be prorated based on annual service time. Each stock option is exercisable for a period of ten years
from the date of grant, no stock option shall be exercisable after the expiration of its option term, the exercise
price of the option shall be 100% of the fair market value of a share of Class A common stock on the date the
stock option is granted, and options shall vest ratably over a thirty six month period.
Asummary of the activity under the stock option plans is as follows.
Optioned Class A Shares
Reserved but
Unoptioned
Shares
Number
of Shares
Price
per Share
Weighted-
Average
Exercise
Price
Balances, December 31, 2000 ......................... 4,038 4,581 2.37-7.50 4.51
Options granted ..................................... (3,723) 3,723 5.00-7.50 5.00
Options exercised ................................... — (174) 2.37-5.00 4.72
Options canceled .................................... 862 (862) 2.37-5.00 4.99
Balances, December 31, 2001 ......................... 1,177 7,268 2.37-7.50 4.72
Increase in options reserved ........................... 7,250 —
Options granted ..................................... (4,041) 4,041 5.00-19.71 10.41
Options exercised ................................... — (529) 2.37-10.00 3.99
Options canceled .................................... 583 (583) 2.37-19.71 5.32
Balances, December 31, 2002 ......................... 4,969 10,197 2.37-19.71 6.96
Options granted ..................................... (1,170) 1,170 20.60-44.60 29.56
Options exercised ................................... — (4,621) 2.37-24.69 5.59
Options canceled .................................... 277 (277) 5.00-24.69 9.30
Balances, December 31, 2003 ......................... 4,076 6,469 $ 2.37-44.60 $11.84
F-21
FINANCIALS