Document:

Exhibit 10.03

 

LeapFrog
Enterprises, Inc.

Non-Employee Director Restricted Stock Unit Grant Notice

(2011 Equity and Incentive Plan)

 

LeapFrog Enterprises, Inc. (the “Company”),
pursuant to its 2011 Equity and Incentive Plan (the “Plan”), hereby awards to Participant a Restricted
Stock Unit Award for the number of stock units set forth below (the “Award”). The Award is subject to
all of the terms and conditions as set forth herein and in the Plan and the Restricted Stock Unit Agreement, both of which are
attached hereto and incorporated herein in their entirety. Capitalized terms not otherwise defined herein shall have the meanings
set forth in the Plan or the Restricted Stock Unit Agreement. Except as explicitly provided herein, in the event of any conflict
between the terms in the Award and the Plan, the terms of the Plan shall control.

 

	Participant:	 	 
	Date of Grant:	 	 
	Grant Number:	 	 
	Vesting Commencement Date:	 	 
	Number of Stock Units Subject to Award:	 	 
	Consideration:	Participant’s Services	 

 

	Vesting Schedule: 	__________________________________________________________________.   

Notwithstanding the foregoing, vesting shall terminate upon the Participant’s termination of Continuous Service.   
	 	 
	Issuance Schedule:	The shares of Common Stock to be issued in respect of the Award will be issued in accordance with the issuance schedule set forth in Section 7 of the Restricted Stock Unit Agreement.
	 	 
	Taxes: 	The Participant understands and agrees that the Participant is solely responsible for any and all income, excise or other taxes imposed on the Participant with respect to the Award.

 

Additional Terms/Acknowledgements:
The undersigned Participant acknowledges receipt of, and understands and agrees to, this Restricted Stock Unit Grant Notice, the
Restricted Stock Unit Agreement and the Plan. Participant further acknowledges that as of the Date of Grant, this Restricted Stock
Unit Grant Notice, the Restricted Stock Unit Agreement and the Plan set forth the entire understanding between Participant and
the Company regarding the Award and supersedes all prior oral and written agreements on that subject, with the exception of any
employment or severance arrangement that would provide for vesting acceleration of the Award upon the terms and conditions set
forth therein.

 

	LeapFrog Enterprises, Inc.	 	Participant:
	 	 	 	 	 
	By: 	 	 	 	 
	Signature	 	Signature
	 	 	 	 	 
	Title: 	 	 	Date: 	 
	 	 	 	 	 
	Date:	 	 	 	 

 

	Attachments: 	 	Restricted Stock Unit Agreement, 2011 Equity and Incentive Plan

 

    	 

    	 

    

 

LeapFrog
Enterprises, Inc.

2011
Equity and Incentive Plan

 

Non-Employee
Director Restricted Stock Unit Agreement

 

Pursuant to the Restricted
Stock Unit Grant Notice (“Grant Notice”) and this Restricted Stock Unit Agreement and in consideration
of your services, LeapFrog Enterprises, Inc. (the “Company”) has awarded you a Restricted Stock Unit
Award (the “Award”) under its 2011 Equity and Incentive Plan (the “Plan”).
Your Award is granted to you effective as of the Date of Grant set forth in the Grant Notice for this Award. This Restricted Stock
Unit Award Agreement shall be deemed to be agreed to by the Company and you upon the electronic acceptance or signing by you of
the Restricted Stock Unit Grant Notice to which it is attached. Capitalized terms not explicitly defined in this Restricted Stock
Unit Agreement shall have the same meanings given to them in the Plan or the Grant Notice, as applicable. Except as otherwise explicitly
provided herein, in the event of any conflict between the terms in this Restricted Stock Unit Agreement and the Plan, the terms
of the Plan shall control. The details of your Award, in addition to those set forth in the Grant Notice and the Plan, are as follows.

 

1.           Grant
of the Award. This Award represents the right to be issued on a future date the number
of shares of the Company’s Class A Common Stock that is equal to the number of stock units indicated in the Grant Notice
(the “Stock Units”). This Award was granted in consideration of your services to the Company. Except
as otherwise provided herein, you will not be required to make any payment to the Company (other than past and future services
to the Company) with respect to your receipt of the Award, the vesting of the Stock Units or the delivery of the Common Stock to
be issued in respect of the Award. 

 

2.           Vesting.
Subject to the limitations contained herein, your Award will vest, if at all, in accordance with the vesting schedule provided
in the Grant Notice, provided that vesting will cease upon the termination of your Continuous Service. Upon such termination of
your Continuous Service, the unvested Stock Units as of the date of such termination will be forfeited at no cost to the Company
and you will have no further right, title or interest in the Stock Units or the shares of Common Stock to be issued in respect
of the Award. 

 

3.           Change
in Control. If a Change in Control (as defined in the Plan) occurs and as of, or within
twelve (12) months after, the effective time of such Change in Control, your Continuous Service is involuntarily terminated by
the Company or you are required to resign by the terms of the Change in Control, the Company or the acquiring entity pursuant to
the Change in Control, then any unvested Stock Units will accelerate and become fully vested on the date of your termination.

 

4.           Number
of Shares. 

 

(a)          The
number of Stock Units subject to your Award may be adjusted from time to time for Capitalization Adjustments, as provided in the
Plan.

 

(b)          Any
additional Stock Units that become subject to the Award pursuant to this Section 3 and Section 7, if any, shall be subject, in
a manner determined by the Board, to the same forfeiture restrictions, restrictions on transferability, and time and manner of
delivery as applicable to the other Stock Units covered by your Award.

 

(c)          Notwithstanding
the provisions of this Section 3, no fractional shares or rights for fractional shares of Common Stock shall be created pursuant
to this Section 3. The Board shall, in its discretion, determine an equivalent benefit for any fractional shares or fractional
shares that might be created by the adjustments referred to in this Section 3.

 

    	1.

    	 

    

 

5.           Securities
Law Compliance. You may not be issued any
shares in respect of your Award unless either (i) the shares are registered under the Securities Act; or (ii) the Company has determined
that such issuance would be exempt from the registration requirements of the Securities Act. Your Award also must comply with other
applicable laws and regulations governing the Award, and you will not receive such shares if the Company determines that such receipt
would not be in material compliance with such laws and regulations.

 

6.           Transfer
Restrictions. Your Award is not transferable, except by will or by the laws of descent
and distribution. In addition to any other limitation on transfer created by applicable securities laws, you agree not to assign,
hypothecate, donate, encumber or otherwise dispose of any interest in any of the shares of Common Stock subject to the Award until
the shares are issued to you in accordance with Section 7 of this Agreement. After the shares have been issued to you, you are
free to assign, hypothecate, donate, encumber or otherwise dispose of any interest in such shares provided that any such actions
are in compliance with the provisions herein and applicable securities laws. Notwithstanding the foregoing, by delivering written
notice to the Company, in a form satisfactory to the Company, you may designate a third party who, in the event of your death,
shall thereafter be entitled to receive any distribution of Common Stock to which you were entitled at the time of your death pursuant
to this Agreement.

 

7.           Date
of Issuance. 

 

(a)          If
the Award is exempt from application of Section 409A of the Code and any state law of similar effect (collectively “Section
409A”), the Company will deliver to you a number of shares of the Company’s Common Stock equal to the
number of vested Stock Units subject to your Award, including any additional Stock Units received pursuant to Section 3 above that
relate to those vested Stock Units on the applicable vesting date(s). 

 

(b)          The
provisions of this Section 7(b) are intended to apply if the Award is subject to Section 409A because of the acceleration of vesting
of the Award upon your separation from service (as such term is defined in Section 409A(a)(2)(A)(i) of the Code (“Separation
from Service”) and does not satisfy the requirements for an exemption from application of Section 409A provided under
Treasury Regulations Section 1.409A-1(b)(4) or 1.409A-1(b)(9) (“Non-Exempt Severance Arrangement”). If
the Award is subject to and not exempt from application of Section 409A due to application of a Non-Exempt Severance Arrangement,
the following provisions in this Section 7(b) shall supersede anything to the contrary in Section 7(a). 

 

(i)          If
the Award vests in the ordinary course during your Continuous Service in accordance with the vesting schedule set forth in the
Grant Notice, without accelerating vesting under the terms of a Non-Exempt Severance Arrangement, in no event will the shares to
be issued in respect of your Award be issued any later than the later of: (i) December 31st of the calendar year that
includes the applicable vesting date and (ii) the 60th day that follows the applicable vesting date. 

 

(ii)          If
vesting of the Award accelerates under the terms of a Non-Exempt Severance Arrangement in connection with your Separation from
Service, and such vesting acceleration provisions were in effect as of the date of grant of the Award and, therefore, are part
of the terms of the Award as of the date of grant, then the shares will be earlier issued in respect of your Award upon your Separation
from Service in accordance with the terms of the Non-Exempt Severance Arrangement, but in no event later than the 60th
day that follows the date of your Separation from Service. However, if at the time the shares would otherwise be issued you are
subject to the distribution limitations contained in Section 409A applicable to “specified employees,” as defined in
Section 409A(a)(2)(B)(i) of the Code, such shares shall not be issued before the date that is six (6) months following the date
of your Separation from Service, or, if earlier, the date of your death that occurs within such six month period.

 

    	2.

    	 

    

 

(iii)          If
vesting of the Award accelerates under the terms of a Non-Exempt Severance Arrangement in connection with your Separation from
Service, and such vesting acceleration provisions were not in effect as of the date of grant of the Award and, therefore, are not
a part of the terms of the Award on the date of grant, then such acceleration of vesting of the Award shall not accelerate the
issuance date of the shares, but the shares shall instead be issued on the same schedule as set forth in the Grant Notice as if
they had vested in the ordinary course during your Continuous Service, notwithstanding the vesting acceleration of the Award. Such
issuance schedule is intended to satisfy the requirements of payment on a specified date or pursuant to a fixed schedule, as provided
under Treasury Regulations Section 1.409A-3(a)(4).

 

(c)          If
the Award is subject to Section 409A because of application of a Non-Exempt Severance Arrangement or a provision for deferral of
the delivery of shares in respect of the Award (a “Non-Exempt Award”), then the following provisions
in this Section shall apply and shall supersede anything to the contrary that may be set forth in the Plan that would provide for
accelerated issuance of the shares in respect of your Award in connection with a Corporate Transaction that is not also a 409A
Change of Control (a “Non-Qualifying Transaction”). For such purposes, a “409A Change in
Control” is a change in the ownership or effective control of the Company, or in the ownership of a substantial portion
of the Company’s assets, as provided in Section 409A(a)(2)(A)(v) of the Code. In the event of a Non-Qualifying Transaction,
then with respect to a Non-Exempt Award, the surviving or acquiring corporation (or its parent company) (the “Acquiring
Entity”) must either assume, continue or substitute your Non-Exempt Award, and shares to be issued in respect of
your Non-Exempt Award, to the extent vested, shall be issued to you by the Acquiring Entity on the same schedule that the shares
would have been issued to you if the Non-Qualifying Transaction had not occurred. 

 

(d)          Notwithstanding
anything to the contrary set forth herein, the Company explicitly reserves the right to earlier issue the shares in respect of
any Non-Exempt Award to the extent permitted and in compliance with the requirements of Section 409A, including pursuant to any
of the exemptions available in Treasury Regulations Section 1.409A-3(j)(4)(ix).

 

(e)          The
provisions in this Agreement for delivery of the shares in respect of the Award are intended either to comply with the requirements
of Section 409A or to provide a basis for exemption from such requirements so that the delivery of the shares will not trigger
the additional tax imposed under Section 409A, and any ambiguities herein will be so interpreted.

 

8.           Dividends.
You may become entitled to receive payments equal to any cash dividends and other distributions
paid with respect to a corresponding number of shares to be issued in respect of the Stock Units covered by your Award, which cash
payments shall be subject to the same forfeiture restrictions as apply to the Stock Units and shall be paid at the same time that
the corresponding shares are issued in respect of your vested Stock Units, provided that if any such dividends or distributions
are paid in shares, then you will automatically be granted a corresponding number of additional Stock Units subject to the Award
(the “Dividend Units”), and further provided that such Dividend Units shall be subject to the same forfeiture
restrictions and restrictions on transferability, and same timing requirements for issuance of shares, as apply to the Stock Units
subject to the Award with respect to which the Dividend Units relate.

 

9.           Restrictive
Legends. The shares issued in respect of your Award shall be endorsed with appropriate
legends determined by the Company.

 

    	3.

    	 

    

 

10.         Award
not a Service Contract. Your Continuous Service
with the Company or an Affiliate is not for any specified term and may be terminated by you or by the Company or an Affiliate at
any time, for any reason, with or without cause and with or without notice.  Nothing in this Restricted Stock Unit Agreement
(including, but not limited to, the vesting of your Award pursuant to the schedule set forth in Section 2 herein or the issuance
of the shares in respect of your Award), the Plan or any covenant of good faith and fair dealing that may be found implicit in
this Restricted Stock Unit Agreement or the Plan shall:  (i) confer upon you any right to continue in affiliation with, the
Company or an Affiliate; (ii) constitute any promise or commitment by the Company or an Affiliate regarding the fact or nature
of future positions, future work assignments, future compensation or any other term or condition of employment or affiliation;
or (iii) confer any right or benefit under this Restricted Stock Unit Agreement or the Plan unless such right or benefit has specifically
accrued under the terms of this Agreement or Plan.

 

11.         Taxes.
 The Participant understands and agrees that the Participant is solely responsible for
any and all income, excise or other taxes imposed on the Participant with respect to the Award.

 

12.         Unsecured
Obligation. Your Award is unfunded, and as a holder of a vested Award, you shall be considered
an unsecured creditor of the Company with respect to the Company’s obligation, if any, to issue shares pursuant to this Agreement.
You shall not have voting or any other rights as a stockholder of the Company with respect to the shares to be issued pursuant
to this Agreement until such shares are issued to you pursuant to Section 7 of this Agreement. Upon such issuance, you will obtain
full voting and other rights as a stockholder of the Company. Nothing contained in this Agreement, and no action taken pursuant
to its provisions, shall create or be construed to create a trust of any kind or a fiduciary relationship between you and the Company
or any other person.

 

13.         Other
Documents. You hereby acknowledge
receipt or the right to receive a document providing the information required by Rule 428(b)(1) promulgated under the Securities
Act, which includes the Plan prospectus. In addition, you acknowledge receipt of the Company’s policy permitting officers
and directors to sell shares only during certain “window” periods and the Company’s insider trading policy, in
effect from time to time. 

 

14.         Notices.
Any notices provided for in your Award or the Plan shall be given in writing and shall be deemed effectively given upon receipt
or, in the case of notices delivered by the Company to you, five (5) days after deposit in the United States mail, postage prepaid,
addressed to you at the last address you provided to the Company. Notwithstanding the foregoing, the Company may, in its sole discretion,
decide to deliver any documents related to participation in the Plan and this Award by electronic means or to request your consent
to participate in the Plan by electronic means. You hereby consent to receive such documents by electronic delivery and, if requested,
to agree to participate in the Plan through an on-line or electronic system established and maintained by the Company or another
third party designated by the Company.

 

15.         Miscellaneous.

 

(a)          The
rights and obligations of the Company under your Award shall be transferable to any one or more persons or entities, and all covenants
and agreements hereunder shall inure to the benefit of, and be enforceable by the Company’s successors and assigns. Your
rights and obligations under your Award may only be assigned with the prior written consent of the Company. 

 

(b)          You
agree upon request to execute any further documents or instruments necessary or desirable in the sole determination of the Company
to carry out the purposes or intent of your Award.

 

(c)          You
acknowledge and agree that you have reviewed your Award in its entirety, have had an opportunity to obtain the advice of counsel
prior to executing and accepting your Award, and fully understand all provisions of your Award.

 

    	4.

    	 

    

 

(d)          This
Agreement shall be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or
national securities exchanges as may be required.

 

(e)          All
obligations of the Company under the Plan and this Agreement shall be binding on any successor to the Company, whether the existence
of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially
all of the business and/or assets of the Company.

 

16.         Governing
Plan Document. Your Award is subject to all
the provisions of the Plan, the provisions of which are hereby made a part of your Award, and is further subject to all interpretations,
amendments, rules and regulations which may from time to time be promulgated and adopted pursuant to the Plan. Except as expressly
provided herein, in the event of any conflict between the provisions of your Award and those of the Plan, the provisions of the
Plan shall control. 

 

17.         Severability.
If all or any part of this Agreement or the Plan is declared by any court or governmental authority to be unlawful or invalid,
such unlawfulness or invalidity shall not invalidate any portion of this Agreement or the Plan not declared to be unlawful or invalid.
Any Section of this Agreement (or part of such a Section) so declared to be unlawful or invalid shall, if possible, be construed
in a manner which will give effect to the terms of such Section or part of a Section to the fullest extent possible while remaining
lawful and valid.

 

18.         Amendment.
This Agreement may not be modified, amended or terminated except by an instrument in writing, signed by you and by a duly authorized
representative of the Company. Notwithstanding the foregoing, this Agreement may be amended solely by the Board by a writing which
specifically states that it is amending this Agreement, so long as a copy of such amendment is delivered to you, and provided that
no such amendment adversely affecting your rights hereunder may be made without your written consent. Without limiting the foregoing,
the Board reserves the right to change, by written notice to you, the provisions of this Agreement in any way it may deem necessary
or advisable to carry out the purpose of the grant as a result of any change in applicable laws or regulations or any future law,
regulation, ruling, or judicial decision, provided that any such change shall be applicable only to rights relating to that portion
of the Award which is then subject to restrictions as provided herein.

 

    	5.Exhibit 10.04

 

Amendment
No. 1 to Employment Agreement

 

This Amendment
No. 1 to Employment Agreement (“Amendment”),
is entered into by and between Leapfrog Enterprises, Inc., a Delaware corporation
(the “Company”), and John Barbour (“Executive”)
as of May 21, 2013 (the “Amendment Effective Date”). The Company and Executive are each separately referred
to as a “Party” and collectively as the “Parties.”

RECITALS:

 

WHEREAS, the
Company and Executive are parties to that certain employment agreement (the “Employment Agreement”),
effective as of March 7, 2011, which sets forth the terms of Executive’s employment as the Company’s Chief Executive
Officer; and

 

WHEREAS, The
Company and Executive desire to amend the Employment Agreement to extend the term of certain relocation benefits, as described
in this Amendment.

 

AGREEMENT:

 

NOW, THEREFORE,
in consideration of the mutual promises and subject to the terms and conditions set forth herein, the Parties agree as follows:

 

1.      Amendment to Section
 2.3.4.  Effective as of the Amendment Effective Date, Section 2.3.4 of the Employment Agreement is hereby replaced in its entirety
with the following:

 

2.3.4          Relocation
Benefits. In addition to the Travel/Housing Subsidy, Executive shall be entitled to a relocation package that includes the
following:

 

2.3.4.1           Travel:
The Company will reimburse Executive for the reasonable hotel expenses, coach airfare from New York, New York, meals and transportation
incurred by his wife for purposes of making three (3) house-hunting trips to the San Francisco Bay Area.

 

2.3.4.2           Shipment
of Goods: Executive’s household goods in Rye, New York plus three cars will be packed, loaded and transported to the
San Francisco Bay Area via the Company’s standard carrier. Executive will also be provided with up to ninety (90) days of
storage of the shipped goods, if needed. The Company will be billed directly for the foregoing services.

 

2.3.4.3           Closing
Costs: If Executive sells his home in Rye, New York within three (3) years following the Effective Date, the Company will
pay standard closing costs on the sale of such home, including any real estate transfer taxes, title fees and customary real estate
broker commissions. The Company will also pay the standard closing costs, including any real estate transfer taxes, title fees,
customary real estate broker commissions and up to two (2) mortgage rate discount points, on the purchase of a residence (apartment
or house) in the San Francisco Bay Area. The amount paid by the Company under this Section 2.3.4.3 shall not exceed $150,000.

 

    	1.

    	 

    

 

2.3.4.4           Tax
Gross Up: To the extent that any Company reimbursement of or payment for the relocation benefits described in Sections 2.3.4.1
and 2.3.4.2 above is taxable to Executive, the Company shall pay to him an additional amount that is intended to offset such taxes,
which amount shall be equal to forty-five percent (45%) of such reimbursement or payment.

 

2.3.4.5           Mortgage
Interest Differential: Upon Executive’s purchase of a primary residence in the Bay Area within three (3) years following
the Effective Date, the Company shall pay to Executive a monthly reimbursement equal to the Mortgage Interest Payments (as hereinafter
defined) until the Company’s obligation to make such payments terminates as provided below. As used herein, the term “Mortgage
Interest Payments” shall mean the lower of: (a) the amount of Executive’s monthly interest portion of the Stipulated
Mortgage Amount after offsetting the value of any tax deduction that Executive would receive for such interest payments, and (b)
the amount resulting from the calculation in clause (a) above, assuming that Executive’s mortgage interest rate is 4.25%
per annum. The Mortgage Interest Payments shall continue until and then terminate on the earliest to occur of (A) the termination
of Executive’s employment with the Company, (B) Executive ceasing to make payments on a mortgage on his primary residence
in the San Francisco Bay Area, and (C) the second anniversary of the date of Executive’s purchase of a residence in the
San Francisco Bay Area. If Executive refinances or sells one San Francisco Bay Area residence and purchases another in the San
Francisco Bay Area, the amount of the Mortgage Interest Payments shall not be recalculated and shall continue unaffected by such
transaction. Executive will also receive an amount that is intended to offset his tax on any reimbursement of Mortgage Interest
Payments pursuant to this Section 2.3.4.5, which amount shall be equal to forty-five percent (45%) of such reimbursement of Mortgage
Interest Payments. Notwithstanding the foregoing, the Company’s reimbursement of Mortgage Interest Payments, including any
related tax gross-up payments, under this Section 2.3.4.5 shall not exceed $20,000 per year.

 

As used herein, the following
terms shall have the following meanings: “Stipulated Mortgage Amount” shall mean a mortgage principal amount equal
to the lesser of: (a) difference between the Purchase Price and the Net Sales Proceeds and (b) $750,000. “Purchase Price”
shall mean the purchase price of Executive’s San Francisco Bay Area residence and “Net Sales Proceeds” shall
mean (i) the net sales proceeds from the sale of Executive’s primary residence in Rye, New York if Executive’s residence
in Rye, New York is sold prior to the purchase of a primary residence in the San Francisco Bay Area or (ii) if Executive’s
Rye, New York residence is not sold prior to the purchase of a primary residence in the San Francisco Bay Area, the appraised value
of Executive’s residence in Rye, New York less the mortgage principle amount owed at the time of the San Francisco Bay Area
purchase; with such appraisal to be performed by a professional appraiser reasonably acceptable to the Company within a reasonable
period of time from the purchase of a primary residence in the San Francisco Bay Area.

 

    	2.

    	 

    

 

If Executive receives any of
the relocation benefits set forth in this Section 2.3.4, including tax gross-up amounts, and resigns without Good Reason prior
to the third anniversary of the Effective Date, he will be required to reimburse the Company for all such prior reimbursements
on a pro rata basis determined by multiplying the amount of such prior reimbursements by a fraction, the numerator of which is
thirty-six (36) minus the number of months worked prior to Executive’s resignation and the denominator of which is thirty-six
(36).

 

2.     Effect of Amendment.
Except as specifically amended by this Amendment, the Employment Agreement remains in full force and effect according to its terms.
Except as specifically provided in this Amendment, nothing contained in this Amendment is intended to affect the Parties’
existing or continuing rights or obligations under the Employment Agreement, as modified hereby.

 

3.    Counterparts.
This Amendment may be executed in counterparts, each of which will be deemed an original, but all of which together will constitute
one and the same instrument.

 

IN WITNESS WHEREOF,
the Parties hereto have caused this Amendment to be duly executed and delivered as of the date first above written.

 

	EXECUTIVE:	 	 	 
	 	 	 	 
	/s/ John Barbour	 	Date:	5/21/13
	John Barbour	 	 	 

 

	COMPANY:	 	 	 
	 	 	 	 
	LEAPFROG ENTERPRISES, INC.	 	 	 
	 	 	 	 
	/s/ Randall O. Rissman	 	Date:	5-15-2013
	By:	 	Randall O. Rissman	 	 	 
	 	 	Chairman, Compensation Committee	 	 	 

  

    	3.

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