LeapFrog 2005 Annual Report Download - page 141

shares restricted stock awarded (40,000). As of December 31, 2005, Mr. Perez held an aggregate of 26,667
shares of restricted stock valued at $310,671, calculated by multiplying the closing market price of
LeapFrog’s unrestricted common stock on December 31, 2005 ($11.65) by the number of shares of
restricted stock held by Mr. Perez. LeapFrog’s right to repurchase lapses with respect to one-third of the
shares subject to the award on each of the first, second and third anniversary dates of the date of grant of the
restricted stock award. LeapFrog does not intend to pay dividends on our common stock in the foreseeable
future. However, if we were to pay common stock dividends, they would be paid on the shares of restricted
stock held by Mr. Perez.
(8) Bonus awarded to Mr. Bender in February 2006 for performance in 2005.
(9) Mr. Bender receives an annual automobile allowance of $7,800.
(10) The value of this restricted stock unit award was calculated by multiplying the closing market price of
LeapFrog’s unrestricted common stock on the date of grant, August 1, 2005 ($12.24), by the number of
shares of restricted stock units awarded (15,000). As of December 31, 2005, Mr. Bender held an aggregate
of 15,000 shares of restricted stock units valued at $174,750, calculated by multiplying the closing market
price of LeapFrog’s unrestricted common stock on December 31, 2005 ($11.65) by the number of shares of
restricted stock held by Mr. Bender.LeapFrog’s right of repurchase lapses with respect to one third of the
shares subject to the award on each of the second, third and fourth anniversary dates of the grant of the
restricted stock unit award. LeapFrog does not intend to pay dividends on our common stock in the
foreseeable future. However, if we were to pay common stock dividends, they would be paid on the shares
of restricted stock held by Mr. Bender.
(11) Mr. Bender received $2,100, $2,917 and $3,000 in matching grants made to his 401(k) savings plan by
LeapFrog in 2005, 2004 and 2003, respectively.
(12) Ms. Olson joined LeapFrog in October 2004, and received a $150,000 signing bonus upon joining LeapFrog
in October 2004.
(13) Ms. Olson received $2,156 and $12,000 in automobile allowances in 2004 and 2005, respectively. Pursuant
to the terms set forth in Ms. Olson’s employment agreement LeapFrog paid: (a) $11,004 and $60,019 in
relocation expenses and tax gross-ups related to such expenses incurred by Ms. Olson in 2004 and 2005,
respectively and (b) $3,327 and $23,746 in annual financial planning expenses and tax gross-ups related to
such expenses in 2004 and 2005, respectively.
(14) Ms. Olson received $2,000 in matching grants made to her 401(k) savings plan by LeapFrog in 2005.
(15) The value of this award was calculated by multiplying the closing market price of LeapFrog’s unrestricted
common stock on the date of grant, November 10, 2004 ($13.50), by the number of shares awarded
(25,000). As of December 31, 2005, Ms. Olson held an aggregate of 15,000 shares of restricted stock units
valued at $174,750, calculated by multiplying the closing market price of LeapFrog’s unrestricted common
stock on December 31, 2005 ($11.65) by the number of shares of restricted stock held by Ms Olson.
LeapFrog’s right of repurchase lapses with respect to forty percent of the shares subject to the award on the
first anniversary date of the grant of the restricted stock award and thirty percent of the shares subject to the
award on the second and third anniversary dates of the grant of the restricted stock award. LeapFrog does
not intend to pay dividends on our common stock in the foreseeable future. However, if we were to pay
common stock dividends, they would be paid on the shares of restricted stock held by Ms. Olson.
(16) Mr. Chiasson joined LeapFrog in November 2004.
(17) Bonus awarded to Mr. Chiasson in February 2006 for performance in 2005.
(18) Mr. Chiasson receives an annual automobile allowance of $7,800.
(19) Mr. Chiasson received $2,000 in matching grants made to his 401(k) savings plan by LeapFrog in 2005.
(20) In 2004 and 2005, LeapFrog did not meet its threshold goals for the three annual measures of net income,
net sales and operating cash flow (adjusted for current accounts receivable), and thus the portion of
performance shares attributable to calendar years 2004 and 2005 were not earned under either the 2004 –
2006 plan cycle or the 2005 – 2007 plan cycle, as applicable.
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