LeapFrog 2009 Annual Report Download - page 126

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In July 2009, we entered into a written agreement with Mounte LLC, a privately held company over which
Michael R. Milken, Lowell J. Milken and, in 2009, Lawrence J. Ellison shared indirect control, settling a dispute
under a 2002 tax sharing agreement. Pursuant to the agreement, Mounte LLC paid us $295,000 in settlement of
all claims by either party under the agreement, including Mounte’s counter-claim for $1.4 million. Mounte LLC
was indirectly controlled by Messrs. M. Milken, L. Milken and (for a portion of 2009) Ellison, who beneficially
owned, as of March 31, 2010, shares representing, respectively, approximately 30.6%, 16.7% and 52.4% of our
voting power. (For purposes of these percentages, which are determined in accordance with SEC rules based on
information furnished by each stockholder, shares representing 14.1% of our voting power are considered
beneficially owned by both Michael R. Milken and Lowell J. Milken.) In addition, Mr. Simon served as a
director of Mounte LLC until mid-2009.
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