LeapFrog 2004 Annual Report Download - page 102

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LEAPFROG ENTERPRISES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except per share and percent data)
approved by stockholders. Under the NED Plan 750 shares of Class A Common Stock have been reserved for
issuance. and the 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 30 shares of Class A common stock upon
their initial appointment or election to the Board (2) an option to purchase 15 shares of Class A common stock
shall be granted annually on July 1, commencing in 2003, to all existing Non-Employee Directors (3) an option
to purchase 25 shares of Class A common stock shall be granted annually, in lieu of an annual grant of 15 shares,
to an Non-Employee Director who holds the position of Chairman of the Board of 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.
A summary 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, 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
Increase in options reserved ........................... 2,500 —
Stock awards granted, net ............................. (364) —
Options granted ..................................... (2,690) 2,690 12.05-29.74 22.21
Options exercised ................................... — (1,638) 2.37-24.69 6.50
Options canceled .................................... 694 (694) 5.00-44.60 16.07
Balances, December 31, 2004 ......................... 4,216 6,827 $ 2.37-44.60 $16.77
F-23