LeapFrog 2009 Annual Report Download - page 131

remaining shares subject to the new award would vest in accordance with the original vesting schedule. The
exercise price of all the options issued to our non-employee directors in the option exchange program was
$6.25 per share. The assumptions made in the valuation of the option awards are discussed in Note 11,
“Stock-Based Compensation,” of Notes to Financial Statements included in our Annual Report on Form
10-K for the year ended December 31, 2009. However, as required, amounts shown in the director
compensation table reflect the incremental fair value of replacement options, computed as of the grant date
in accordance with FASB ASC Topic 718. The following table shows the incremental grant date fair value
of the new options issued in the exchange to non-employee directors who participated in the option
exchange program:
Name
Option Shares
Canceled
Option Shares
Granted
Total Incremental Grant
Date Fair Value ($)
Thomas J. Kalinske ..................... 245,727 129,494 —
Stanley E. Maron ....................... 68,943 39,313 —
E. Stanton McKee, Jr. ................... 56,100 34,514 —
David C. Nagel ......................... 56,218 34,778 —
Caden Wang ........................... 65,892 39,899 —
The above incremental grant date fair values for these grants reflect the total incremental fair value of
options granted to the relevant individual in the option exchange program (net of options canceled in the
exchange) rounded to the nearest dollar.
(6) In March 2009, Mr. Simon and Mr. Marinelli each received an initial grant of a non-statutory stock option
award under our 2002 Non-Employee Directors’ Stock Award Plan, or NEDSAP, upon joining our board of
directors. In May 2009, each of our continuing non-employee directors received an interim grant of a
non-statutory stock option award under the NEDSAP. In July 2009, each of our non-employee directors was
automatically granted an annual non-statutory stock option award pursuant to the NEDSAP. The grant date
fair value of each of these option awards, as calculated under FASB ASC Topic 718 for financial statement
reporting purposes, was as follows:
Name
Stock Option
Awards
(number of shares,
prior to exchange)
Grant Date
Fair Value
($)
Thomas J. Kalinske ........................................ 35,000 52,996
15,000 18,946
Paul T. Marinelli .......................................... 30,000 22,188
35,000 52,996
5,000 6,315
Stanley E. Maron .......................................... 35,000 52,996
15,000 18,946
E. Stanton McKee, Jr. ...................................... 35,000 52,996
15,000 18,946
David C. Nagel ............................................ 35,000 52,996
15,000 18,946
Philip B. Simon ........................................... 30,000 22,188
35,000 52,996
5,000 6,315
Caden Wang .............................................. 35,000 52,996
15,000 18,946
(7) Messrs. Fink and Smith resigned from the board of directors in March 2009 and did not receive any equity
awards in 2009.
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