Document:

Form of Stock Option Agreement

 Exhibit 10.2 
 LEAPFROG ENTERPRISES, INC. 
 STOCK OPTION AGREEMENT 
 Pursuant to your Stock Option Grant Notice
(“Grant Notice”) and this Stock Option Agreement, LeapFrog Enterprises, Inc. (the “Company”) has granted you a nonstatutory stock option to purchase the number of shares of the Company’s
Class A Common Stock (“Class A Common Stock”) indicated in your Grant Notice at the exercise price indicated in your Grant Notice. 
 This option (i) is not intended to qualify as an “incentive stock option” within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”);
(ii) is not subject to, and is granted outside of, the Company’s 2002 Equity Incentive Plan; and (iii) is granted pursuant to the employment inducement award exemption from stockholder approval under NYSE Listed Company Manual
Section 303A.08. 
 The details of your option are as follows: 
 1. VESTING. Subject to the limitations contained herein, your option will vest as provided in your Grant Notice, provided
that vesting will cease upon the termination of your Continuous Service (as defined in Section 10) as an Employee of the Company. 
 2. NUMBER OF SHARES AND EXERCISE PRICE. The number of shares of Class A Common Stock subject to your option and your exercise price
per share referenced in your Grant Notice may be adjusted from time to time for certain capitalization adjustments, as provided in Section 9. 
 3. METHOD OF PAYMENT. Payment of the exercise price is due in full upon exercise of all or any part of your option. You may elect to make payment of the exercise price in cash or by
check, bank draft or money order payable to the Company or in any other manner permitted by your Grant Notice, which may include one or more of the following: 
 (a) In the Company’s sole discretion at the time your option is exercised and provided that at the time of exercise the
Class A Common Stock is publicly traded and quoted regularly in The Wall Street Journal, pursuant to a program developed under Regulation T as promulgated by the Federal Reserve Board that, prior to the issuance of Class A Common
Stock, results in either the receipt of cash (or check) by the Company or the receipt of irrevocable instructions to pay the aggregate exercise price to the Company from the sales proceeds. 
 (b) In the Company’s sole discretion at the time your option is exercised and provided that at the time of exercise the
Class A Common Stock is publicly traded and quoted regularly in The Wall Street Journal, by delivery of already-owned shares of Class A Common Stock (either by actual delivery or attestation) either that you have held for the period
required to avoid a charge to the Company’s reported earnings (generally six (6) months) or that you did not acquire, directly or indirectly from the Company, that are owned free and clear of any liens, claims, encumbrances or security
interests, and that are valued at Fair Market Value (as defined 

  

 1. 

 
in Section 10) on the date of exercise. “Delivery” for these purposes, in the sole discretion of the Company at the time you exercise your
option, shall include delivery to the Company of your attestation of ownership of such shares of Class A Common Stock in a form approved by the Company. Notwithstanding the foregoing, you may not exercise your option by tender to the Company of
Class A Common Stock to the extent such tender would violate the provisions of any law, regulation or agreement restricting the redemption of the Company’s stock. 
 4. WHOLE SHARES. You may exercise your option only for whole shares of Class A Common Stock. 

5. SECURITIES LAW COMPLIANCE. Notwithstanding anything to the contrary contained herein,
you may not exercise your option unless the shares of Class A Common Stock issuable upon such exercise are then registered under the Securities Act of 1933, as amended (the “Securities Act”) or, if such shares of
Class A Common Stock are not then so registered, the Company has determined that such exercise and issuance would be exempt from the registration requirements of the Securities Act. The exercise of your option also must comply with other
applicable laws and regulations governing your option, and you may not exercise your option if the Company determines that such exercise would not be in material compliance with such laws and regulations. 
 6. TERM. You may not exercise your option before the commencement or after the expiration of its term. The term of your
option commences on the Date of Grant (as set forth in the Grant Notice) and expires upon the day before the tenth (10th) anniversary of the Date of Grant; provided, however, that in accordance with the provisions of the Employment
Agreement (as defined in your Grant Notice), the term of your option shall expire prior to the tenth (10th) anniversary of the Date of Grant if your employment with the Company terminates prior to such date, as set forth in the Employment
Agreement. 
 7. EXERCISE. 
 (a) You may exercise the vested portion of your option during its term by delivering a notice of exercise (in a form designated by
the Company) together with the exercise price to the Secretary of the Company, or to such other person as the Company may designate, during regular business hours, together with such additional documents as the Company may then require, all in a
manner consistent with the procedures approved by the Board for exercise of stock options by other senior executives of the Company. 
 (b) By exercising your option you agree that, as a condition to any exercise of your option, the Company may require you to enter into an arrangement providing for the payment by you to the Company of any tax withholding obligation
of the Company arising by reason of (1) the exercise of your option, (2) the lapse of any substantial risk of forfeiture to which the shares of Class A Common Stock are subject at the time of exercise, or (3) the disposition of
shares of Class A Common Stock acquired upon such exercise. 
 8. TRANSFERABILITY. Your option is not
transferable, except by will or by the laws of descent and distribution, and is exercisable during your life only by you. Notwithstanding the foregoing, by delivering written notice to the Company, in a form satisfactory to the Company, 

  

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you may designate a third party who, in the event of your death, shall thereafter be entitled to exercise your option. 
 9. ADJUSTMENTS UPON CHANGES IN STOCK. 
 (a) Capitalization Adjustments. If any change is made in, or other event occurs with respect to, the Class A Common
Stock subject to your option without the receipt of consideration by the Company (through merger, consolidation, reorganization, recapitalization, reincorporation, stock dividend, dividend in property other than cash, stock split, liquidating
dividend, combination of shares, exchange of shares, change in corporate structure or other transaction not involving the receipt of consideration by the Company (each a “Capitalization Adjustment”), your option will be
appropriately adjusted in the class(es) and number of shares and price per share of securities subject to the option. The Board of Directors of the Company (the “Board”) shall make such adjustments, and its determination
shall be final, binding and conclusive. The conversion of any convertible securities of the Company shall not be treated as a transaction “without receipt of consideration” by the Company. 
 (b) Dissolution or Liquidation. In the event of a dissolution or liquidation of the Company, your option shall terminate
immediately prior to the completion of such event. 
 (c) Corporate Transaction. In the event of a Corporate
Transaction (as defined in Section 10), any surviving corporation or acquiring corporation may assume your outstanding option or may substitute a similar stock award for your outstanding option (it being understood that similar stock awards
include, but are not limited to, awards to acquire the same consideration paid to the stockholders or the Company, as the case may be, pursuant to the Corporate Transaction). A surviving corporation or acquiring corporation (or its parent) may
choose to assume or continue only a portion of your option or substitute a similar stock award for only a portion of your option. In the event that any surviving corporation or acquiring corporation does not assume your outstanding option or
substitute a similar stock award for your outstanding option, then unless otherwise provided by the Board, you may exercise your option (to the extent vested) prior to the effective time of the Corporate Transaction, and your option shall terminate
if not exercised prior to the effective time of the Corporate Transaction. 
 (d) Change in Control. Upon the
occurrence of a Change in Control (as defined in Section 10), the shares subject to your option shall become fully vested as of the date the Change in Control occurs, provided that your Continuous Service (as defined in Section 10) as an
Employee of the Company has not terminated prior to such date. 
 10. DEFINITIONS. For purposes of this Stock
Option Agreement, the following terms shall have the following definitions: 
 (a) “Affiliate”
means any parent corporation or subsidiary corporation of the Company, whether now or hereafter existing, as those terms are defined in Sections 424(e) and (f), respectively, of the Code. 
 (b) “Continuous Service” means that your service with the Company or an Affiliate, whether as an Employee,
Director or consultant, is not interrupted or terminated. A change in the capacity in you render service to the Company or an Affiliate as an Employee, 

  

 3. 

 
Director or consultant or a change in the entity for which you render such service, provided that there is no interruption or termination of your service
with the Company or an Affiliate, shall not terminate your Continuous Service. For example, a change in status from an Employee of the Company to a consultant of an Affiliate or a Director shall not constitute an interruption of Continuous Service.
Notwithstanding the foregoing, in the event that you terminate your service with the Company as an Employee, you shall cease vesting in your option as of such date of termination, regardless of whether you continue your service in the capacity of a
Director or consultant without interruption or termination. The Board, in its sole discretion, may determine whether Continuous Service shall be considered interrupted in the case of any leave of absence approved by the Board, including sick leave,
military leave or any other personal leave. Notwithstanding the foregoing, a leave of absence shall be treated as Continuous Service for purposes of vesting in your option only to such extent as may be provided in the Company’s leave of absence
policy or in the written terms of your leave of absence. 
 (c) “Change in Control” means the
occurrence, in a single transaction or in a series of related transactions, of any one or more of the following events: 
 (i) any Exchange Act Person becomes the Owner, directly or indirectly, of securities of the Company representing more than fifty percent (50%) of the combined voting power of the Company’s then outstanding securities other
than by virtue of a merger, consolidation or similar transaction; 
 (ii) there is consummated a merger, consolidation
or similar transaction involving (directly or indirectly) the Company and, immediately after the consummation of such merger, consolidation or similar transaction, the stockholders of the Company immediately prior thereto do not Own, directly or
indirectly, outstanding voting securities representing more than fifty percent (50%) of the combined outstanding voting power of the surviving Entity in such merger, consolidation or similar transaction or more than fifty percent (50%) of
the combined outstanding voting power of the parent of the surviving Entity in such merger, consolidation or similar transaction; 
 (iii) the stockholders of the Company approve or the Board approves a plan of complete dissolution or liquidation of the Company, or a complete dissolution or liquidation of the Company shall otherwise occur, and as a result of which
the operations of the Company are no longer being conducted; or 
 (iv) there is consummated a sale, lease, license or
other disposition of all or substantially all of the consolidated assets of the Company and its Subsidiaries, other than a sale, lease, license or other disposition of all or substantially all of the consolidated assets of the Company and its
Subsidiaries to an Entity, more than fifty percent (50%) of the combined voting power of the voting securities of which are Owned by stockholders of the Company in substantially the same proportions as their Ownership of the Company immediately
prior to such sale, lease, license or other disposition. 
  

 4. 

 (d) “Corporate Transaction” means the occurrence, in a single transaction
or in a series of related transactions, of any one or more of the following events: 
 (i) a sale or other disposition
of all or substantially all, as determined by the Board in its discretion, of the consolidated assets of the Company and its Subsidiaries; 
 (ii) a sale or other disposition of at least ninety percent (90%) of the outstanding securities of the Company; 
 (iii) a merger, consolidation or similar transaction following which the Company is not the surviving corporation; or 
 (iv) a merger, consolidation or similar transaction following which the Company is the surviving corporation but the shares of
Class A Common Stock outstanding immediately preceding the merger, consolidation or similar transaction are converted or exchanged by virtue of the merger, consolidation or similar transaction into other property, whether in the form of
securities, cash or otherwise. 
 (e) “Director” means a member of the Board of Directors of
the Company. 
 (f) “Employee” means any person employed by the Company or an Affiliate.
Service as a Director or payment of a director’s fee by the Company or an Affiliate shall not be sufficient to constitute “employment” by the Company or an Affiliate. 
 (g) “Entity” means a corporation, partnership or other entity. 
 (h) “Exchange Act Person” means any natural person, Entity or “group” (within the meaning of
Section 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended), except that “Exchange Act Person” shall not include (A) the Company or any Subsidiary of the Company, (B) any employee benefit plan of the Company
or any Subsidiary of the Company or any trustee or other fiduciary holding securities under an employee benefit plan of the Company or any Subsidiary of the Company, (C) an underwriter temporarily holding securities pursuant to an offering of
such securities, or (D) an Entity Owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their Ownership of stock of the Company. 
 (i) “Fair Market Value” means, as of any date, the value of the Class A Common Stock determined as
follows: 
 (i) If the Class A Common Stock is listed on any established stock exchange or traded on the Nasdaq
National Market or the Nasdaq SmallCap Market, the Fair Market Value of a share of Class A Common Stock shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or market (or the
exchange or market with the greatest volume of trading in the Class A Common Stock) on the last market trading day prior to the day of determination, as reported in The Wall Street Journal or such other source as the Board deems
reliable. 
 (ii) In the absence of such markets for the Class A Common Stock, the Fair Market Value shall be
determined by the Board based upon an independent appraisal in compliance with Section 409A of the Code. 
  

 5. 

 (j) “Subsidiary” means, with respect to the Company,
(i) any corporation of which more than fifty percent (50%) of the outstanding capital stock having ordinary voting power to elect a majority of the board of directors of such corporation (irrespective of whether, at the time, stock of any
other class or classes of such corporation shall have or might have voting power by reason of the happening of any contingency) is at the time, directly or indirectly, Owned by the Company, and (ii) any partnership in which the Company has a
direct or indirect interest (whether in the form of voting or participation in profits or capital contribution) of more than fifty percent (50%). 
 11. OPTION NOT A SERVICE CONTRACT. Your option is not an employment or service contract, and nothing in your option shall be deemed to create in any
way whatsoever any obligation on your part to continue in the employ of the Company or an Affiliate, or of the Company or an Affiliate to continue your employment. In addition, nothing in your option shall obligate the Company or an Affiliate, their
respective stockholders, boards of directors, officers or employees to continue any relationship that you might have as a Director or consultant for the Company or an Affiliate. 
 12. WITHHOLDING OBLIGATIONS. 
 (a) At the time you exercise your option, in whole or in part, or at any time thereafter as requested by the Company, you hereby
authorize withholding from payroll and any other amounts payable to you, and otherwise agree to make adequate provision for (including by means of a “cashless exercise” pursuant to a program developed under Regulation T as promulgated by
the Federal Reserve Board to the extent permitted by the Company), any sums required to satisfy the federal, state, local and foreign tax withholding obligations of the Company or an Affiliate, if any, which arise in connection with the exercise of
your option. 
 (b) Upon your request and subject to approval by the Company, in its sole discretion, and compliance
with any applicable legal conditions or restrictions, the Company may withhold from fully vested shares of Class A Common Stock otherwise issuable to you upon the exercise of your option a number of whole shares of Class A Common Stock
having a Fair Market Value, determined by the Company as of the date of exercise, not in excess of the minimum amount of tax required to be withheld by law (or such lower amount as may be necessary to avoid variable award accounting). If the date of
determination of any tax withholding obligation is deferred to a date later than the date of exercise of your option, share withholding pursuant to the preceding sentence shall not be permitted unless you make a proper and timely election under
Section 83(b) of the Code, covering the aggregate number of shares of Class A Common Stock acquired upon such exercise with respect to which such determination is otherwise deferred, to accelerate the determination of such tax withholding
obligation to the date of exercise of your option. Notwithstanding the filing of such election, shares of Class A Common Stock shall be withheld solely from fully vested shares of Class A Common Stock determined as of the date of exercise
of your option that are otherwise issuable to you upon such exercise. Any adverse consequences to you arising in connection with such share withholding procedure shall be your sole responsibility. 
 (c) You may not exercise your option unless the tax withholding obligations of the Company and/or any Affiliate are satisfied.
Accordingly, you may not be able to exercise 

  

 6. 

 
your option when desired even though your option is vested, and the Company shall have no obligation to issue a certificate for such shares of Class A
Common Stock or release such shares of Class A Common Stock from any escrow provided for herein unless such obligations are satisfied. 
 13. NOTICES. Any notices provided for in your option shall be given in writing and shall be deemed effectively given upon receipt or, in the case of notices delivered by mail 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. 
 14. CHOICE OF LAW. Your option shall be governed by, and construed in accordance with the laws of the State of California, as such laws are applied to contracts
entered into and performed in such State. 
 15. AMENDMENT OF
OPTION. The Board, at any time, and from time to time, may amend the terms of your option; provided, however, that the rights under your option shall not be impaired by any such amendment unless you consent
in writing. 
 16. COVENANTS OF THE COMPANY.

 (a) Availability of Shares. During the term of your option, the Company shall keep available at all times the
number of shares of Class A Common Stock required to satisfy your Option. 
 (b) Securities Law Compliance.
The Company shall seek to obtain from each regulatory commission or agency having jurisdiction over your option such authority as may be required to grant your option and to issue and sell shares of Class A Common Stock upon exercise of your
option; provided, however, that this undertaking shall not require the Company to register under the Securities Act the option or any Class A Common Stock issued or issuable pursuant to the option. If, after reasonable efforts, the
Company is unable to obtain from any such regulatory commission or agency the authority which counsel for the Company deems necessary for the lawful issuance and sale of Class A Common Stock under the option, the Company shall be relieved from
any liability for failure to issue and sell Class A Common Stock upon exercise of the option unless and until such authority is obtained. 
 17. GOVERNING DOCUMENT. Your option is subject to all the provisions of the Employment Agreement (as defined in the Grant Notice). In the event of any conflict or inconsistency between the
provisions of your option and those of the Employment Agreement, the Employment Agreement shall govern. In the event of any conflict or inconsistency between the Stock Option Agreement and the Grant Notice, the provisions of the Grant Notice shall
govern. 
  

 7.Employment Agreement

 Exhibit 10.3 
 EMPLOYMENT AGREEMENT 
 THIS EMPLOYMENT AGREEMENT, entered into as of July 3, 2006
(“Agreement”), is made between LeapFrog Enterprises, Inc., a Delaware corporation (the “Company”), and Thomas J. Kalinske (“Executive”) (collectively with the Company, the “Parties”). 
 RECITALS: 
 WHEREAS, the
Parties entered into that certain Employment Agreement dated April 1, 2002 (the “2002 Employment Agreement”); and 
 WHEREAS, the Parties entered into that certain Employment Agreement dated April 20, 2004 (the “2004 Employment Agreement”), which replaced the 2002 Employment Agreement; and 
 WHEREAS, the Parties mutually wish to replace the 2004 Employment Agreement with this Agreement and to continue Executive’s employment with
the Company under the terms and conditions hereinafter set forth. 
 AGREEMENT: 
 NOW, THEREFORE, in consideration of the mutual promises and subject to the terms and conditions set forth herein, the Parties agree as follows:

 SECTION 1. EMPLOYMENT 
 1.1 Position, Duties, Responsibilities, Authority. Executive hereby resigns as Chief Executive Officer of the Company effective as of the date of this Agreement, and the Company hereby employs Executive as Vice Chairman of the
Company for the Employment Term (as defined below) and on the terms and conditions hereinafter set forth. In such capacity, Executive shall have such duties and authority as may be prescribed by the Company’s Chief Executive Officer (the
“CEO”) or, with respect to Executive’s participation as a director in the affairs of the Company’s Board of Directors (the “Board”), by the Board. Executive shall not be assigned any responsibilities that are
unreasonable for a Vice Chairman position. Executive shall, to the best of Executive’s ability, carry out such responsibilities and duties in an efficient, trustworthy, ethical, effective and businesslike manner. Executive’s performance of
services under this Agreement shall be rendered in the San Francisco/Oakland Bay Area or at any other location or locations as Executive and the Company shall agree from time to time. Executive shall perform Executive’s responsibilities
hereunder for the Company and/or such affiliates of the Company as the CEO or the Board, as appropriate, may designate from time to time. 
 1.2 Exclusive Employment. During the Employment Term, Executive shall devote all of his business time to his duties and responsibilities set forth in this Section 1. Without limiting the generality of the foregoing, during the
Employment Term, Executive shall not, without the prior written approval of the Company, render services of a business, professional or commercial nature to any other person, firm or corporation, whether for compensation or otherwise, except 

  

 1. 

 
that Executive may engage in civic, philanthropic and community service activities so long as such activities do not interfere with Executive’s ability
to comply with this Agreement and are not otherwise in conflict with the policies or interest of the Company, and Executive may serve on the Board of Directors of any or all of the companies on which he held a seat prior to the date of this
agreement and any other company approved by the Company. 
 SECTION 2. COMPENSATION AND OTHER BENEFITS. 
 In consideration of Executive’s employment, and except as otherwise provided herein, Executive shall receive from the Company the compensation and
benefits described in this Section 2. Except as otherwise specified in this Agreement, the compensation and employee benefits payable to Executive pursuant to this Agreement may be changed only by the written agreement of the parties. Executive
authorizes the Company to deduct and withhold from all compensation to be paid to him any and all sums required to be deducted or withheld by the Company pursuant to the provisions of any federal, state, or local law, regulation, ruling, or
ordinance, including, but not limited to, income tax withholding and payroll taxes. 
 2.1 Base Compensation and Bonus. During the
Employment Term, the Company shall pay to Executive, and Executive shall be entitled to receive from the Company, as a base salary for the full-time employment referred to in Section 1 hereof, compensation (“Base Compensation”) at the
rate of Forty-One Thousand Two Hundred and Fifty Dollars ($41,250) per calendar month (a rate equivalent to $495,000 per annum), less standard payroll deductions and tax withholdings. Said Base Compensation shall be payable in intervals not less
than twice a month in accordance with Company payment policy for executives in effect from time to time. Executive’s Base Compensation will be subject to adjustment from time to time as determined by the Board. 
 2.2 Bonuses. 
 2.2.1 Guaranteed
Bonus. Executive shall receive an annual guaranteed bonus in the amount of Sixty-Seven Thousand Five Hundred Dollars ($67,500) (the “Guaranteed Bonus”), less standard payroll deductions and tax withholdings, so long as he is an active
employee of the Company as of December 31 of the bonus year. Except as provided in Sections 3.6 and 3.7 below, if Executive is not employed by the Company, for any reason whatsoever, as of December 31 of the bonus year, he will not have
earned the Guaranteed Bonus, or any pro-rata portion of the Guaranteed Bonus for that year. The Company shall pay the Guaranteed Bonus to Executive on or before February 15 of the year following the year in which the Guaranteed Bonus was
earned. 
 2.2.2 Incentive Bonus. Executive is eligible to receive an annual discretionary bonus of up to 100% of Executive’s
then-current annual Base Compensation (the “Incentive Bonus”) less $67,500, based on the Company’s performance and Executive’s achievement of performance objectives established in writing by the Board in consultation with
Executive, which achievement shall be determined by the Board in its sole good faith discretion. Except as provided in Sections 3.6 and 3.7 below, if Executive is not employed by the Company, for any reason whatsoever, as of December 31 of the
bonus year, he will not have earned the Incentive 

  

 2. 

 
Bonus, or any pro-rata portion of the Incentive Bonus for that year. Payment of the Incentive Bonus shall be subject to standard payroll deductions and tax
withholdings. The Company shall pay the Incentive Bonus to Executive within ten (10) days after the date the amount of the Incentive Bonus is calculated, but in any case, not later than February 15 of the year following the year in which
the Incentive Bonus was earned. 
 2.3 Other Benefits. Executive shall be entitled to standard Company employee benefits for senior
management, including group medical and dental insurance coverage for Executive, Executive’s spouse and dependent children, disability insurance coverage and sick leave, pursuant to the Company’s benefits plans, policies and guidelines,
including but not limited to contribution requirements for dependent coverage, as approved by the Board from time to time. In addition, Executive shall be entitled to receive: 
 (i) Automobile Allowance. During the Employment Term, Executive shall be entitled to receive an automobile allowance of $600 per
month, less standard payroll deductions and tax withholdings. 
 (ii) Vacation. Executive shall be entitled to four
(4) weeks paid vacation per calendar year, accrued in equal semi-monthly increments of 6.67 hours, with the total accrued and unused vacation balance (including accrued vacation carried over from previous years) capped at seven (7) weeks.
Vacation accrual will cease when the maximum seven (7) week vacation balance is reached and will resume when the balance falls below the maximum amount. Executive shall plan and take vacation consistent with Executive’s duties and
obligations hereunder and in accordance with Company vacation and leave policies. 
 (iii) Life Insurance. The Company
shall contribute up to twenty thousand dollars ($20,000) each year during Executive’s employment for the cost of premiums to obtain and maintain during the Employment Term one or more policies of term life insurance providing an aggregate
benefit in the amount of $2,000,000. Executive shall have the right to designate the beneficiary or beneficiaries of the benefit payable upon death pursuant to such policy or policies and may transfer ownership of such policy or policies to any life
insurance trust, family trust or other trust. 
 (iv) Home Office. In the event that the Company requests Executive to
utilize an office in his personal residence as his principal office in lieu of Company-provided facilities, the Company will reimburse Executive for mutually agreed and reasonable home office expenses. 
 2.4 Stock Options. The Parties acknowledge that the Company has previously granted Executive various stock options, the vesting and other terms of
which will be governed by the instruments evidencing such options and any plans under which they were issued and, except as expressly provided herein, are not affected by the replacement of the 2004 Employment Agreement with this Agreement.

  

 3. 

 SECTION 3. EMPLOYMENT TERM AND TERMINATION. 
 3.1 Term. Executive’s term of employment under this Employment Agreement shall commence as of the date hereof and shall terminate on
April 20, 2008, unless terminated earlier pursuant to Sections 3.2, 3.3, 3.4 or 3.5 hereof (“ Employment Term “). 
 3.2
Termination by Death. Executive’s term of employment will terminate upon the death of Executive; provided that the Company shall pay to the estate of the Executive any unpaid Base Compensation or Bonus to the extent earned at the date of
death, and any amounts payable pursuant to the Company’s employee benefit plans in accordance with such plans. 
 3.3 Termination
Upon Permanent Disability. Executive’s term of employment shall terminate upon the “permanent disability” of Executive. As used herein, the term “ permanent disability “ shall mean a physical or mental disability that
renders Executive unable to perform his normal duties for the Company for a period of 120 consecutive days as determined by a licensed physician. The Company and Executive or his legal representative shall use their best efforts to agree on the
physician to determine permanent disability. If they cannot agree within ten (10) days after the first party makes a written proposal stating the name of a physician, then the other party shall select a physician within ten (10) days and
within ten (10) days thereafter the two physicians shall select a third physician. All such physicians must be board certified in the medical area giving rise to the alleged disability. The determination of the third physician shall be final
and binding. If one party fails to select a physician within said ten (10) day period, the physician named by the other party shall make the determination of permanent disability. Upon termination of Executive for permanent disability, the
Company shall pay to Executive any unpaid Base Compensation or Bonus to the extent earned at the date of termination for permanent disability, any amounts payable by the Company at the date of termination for permanent disability under the
Company’s disability policies, and any amounts payable by the Company pursuant to the Company’s other employee benefit plans in accordance with such plans. 
 3.4 Termination By Executive. Executive shall have the right to terminate his employment with the Company, with or without Good Reason, at any time by providing notice to the Company. 
 3.5 Termination By the Company for Cause. The Company shall have the right to terminate the employment of Executive with or without Cause. Before
terminating Executive’s employment for Cause, it must first deliver to him a written notice specifying such Cause. Executive shall be entitled to at least ten (10) days’ prior written notice of the Company’s intention to
terminate his employment for any Cause, specifying the grounds for such termination. If the Company exercises such right, its obligation under this Agreement to make any further payments to Executive, other than as set forth in Section 3.6
below, shall thereupon cease and terminate. For purposes of this Agreement, a termination shall be for “ Cause “ if the Executive shall: (i) commit an act of fraud, embezzlement or misappropriation involving the Company; (ii) be
convicted by a court of competent jurisdiction of, or enter a plea of guilty or no contest to, any felony involving moral turpitude or dishonesty; (iii) commit an act, or fail to commit an act, involving the Company which amounts to, or with
the passage of time would amount to, willful misconduct, wanton misconduct, gross negligence or a breach of this Agreement and which results or will result in significant harm to the Company; or (iv) willfully fail to perform the
responsibilities and duties specified herein for a period of ten (10) days 

  

 4. 

 
following receipt of written notice from the Company which specifically describes past instances of willful failure of performance; provided that in the case
of (iv) above, during the ten (10) day period following receipt of such notice, Executive shall be given the opportunity to take reasonable steps to cure any such claimed past failure of performance. 
 3.6 Compensation and Benefits Upon Termination. In the event that Executive’s employment with the Company terminates for any reason, the
Company shall pay to Executive: (1) all of his accrued and unused vacation and unpaid Base Compensation earned through the last day of employment (the “Separation Date”), and (2) any bonus earned but unpaid as of the Separation
Date (i.e., in the event that Executive has worked through December 31 of the previous year and earned a bonus, but such bonus has not been paid as of the Separation Date). 
 If the Company terminates Executive’s employment for any reason other than the death or permanent disability of Executive, or Cause, or if Executive
resigns for Good Reason, and Section 3.7 hereof is not applicable to such termination or resignation, and Executive provides the Company with an effective general release of claims against the Company and its officers, directors, employees,
shareholders, agents, and affiliated entities, in a form reasonably required by the Company (the “Release”), the Company shall provide Executive with the following severance benefits: 
 (i) Cash Severance. The Company shall pay Executive, in a lump sum within thirty (30) days after the Separation Date, an
amount equivalent to (a) his annual Base Compensation in effect on the Separation Date, (b) his annual Guaranteed Bonus and (c) a pro rata portion of the Incentive Bonus Executive would, but for the termination, otherwise have been
entitled to receive in the year of the Separation Date (the “Severance Payment”). The Severance Payment shall be subject to required payroll deductions and withholdings. 
 (ii) COBRA Premiums. If Executive timely elects to continue his Company-provided group health insurance coverage pursuant to
federal COBRA law and, if applicable, state insurance laws, the Company shall also reimburse Executive for the cost of the COBRA premiums for him and his dependents (if applicable) to continue health insurance coverage at the same level of coverage
for him and his dependents (if applicable) in effect as of the Separation Date for a period of twelve (12) months after the Separation Date. Executive’s entitlement to such reimbursement shall cease before the end of the twelve-month
post-employment period if and when Executive becomes eligible for group health insurance with a subsequent employer. Executive shall notify the Company’s vice president of Human Resources in writing immediately upon becoming eligible for health
insurance coverage with a subsequent employer. 
 (iii) Stock Option Acceleration. All unvested stock options held by
Executive shall accelerate vesting such that the number of shares that would otherwise vest within a twelve-month period under each option grant shall become fully exercisable as of the Separation Date and shall be exercisable for that specific
period following the end of the Severance Period as provided under the applicable stock option agreements in the case of termination of employment. 
 In addition, if Executive’s employment with the Company under this Agreement is terminated for any reason other than the death or permanent disability of Executive, or Cause, 

  

 5. 

 
and if the Executive has satisfactorily performed his duties and responsibilities under this Agreement, the Company will negotiate in good faith with
Executive regarding a subsequent consulting or other relationship with the Company, which, if mutually agreed upon, would allow Executive to continue to vest under the terms of the stock options described above. 
 3.7 Compensation Payable in the Event of a Change of Control. If, in connection with a Change of Control transaction as defined below, either the
employment of Executive is terminated by the Company for any reason other than the death or permanent disability of Executive or Cause during the Employment Term and either within ninety (90) days prior to or within twelve (12) months
after a Change of Control transaction or Executive resigns for Good Reason within such period, and Executive provides the Company with the Release described in Section 3.6 above, the Company shall pay to Executive, within five (5) business
days following the consummation of a Change of Control transaction, an amount equal to 1.5 times Executive’s Base Compensation and Guaranteed and Incentive Bonuses paid for the immediately preceding fiscal year of the Company. Executive also
shall receive COBRA premiums as provided in Section 3.6(ii). In addition, notwithstanding anything to the contrary contained herein or in any stock option or similar agreement to which Executive is a party, upon the occurrence of a Change of
Control, regardless of whether Executive’s employment is terminated, all of Executive’s unvested stock options shall immediately vest and become exercisable in full (or, if applicable, all repurchase obligations of the Company shall
immediately lapse) and such options shall remain exercisable for the period specified in the applicable option agreement. For purposes of this Agreement, a “Change of Control” of the Company shall mean (i) any “person” (as
such term is used in Section 13(d) of the Securities Exchange Act of 1934, as amended, the “ Exchange Act “) other than an Affiliated Purchaser becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act)
after the date of this Agreement of securities of the Company representing at least a majority of the combined voting power of the Company’s outstanding securities ordinarily having the right to vote at elections of directors; (ii) the
Company is merged or consolidated with any person other than an Affiliated Purchaser and as a result of such merger or consolidation the beneficial owners of securities of the Company before such merger or consolidation hold immediately after such
merger or consolidation less than a majority of the combined voting power of the outstanding securities of the surviving or resulting company ordinarily having the right to vote at elections of directors, or (iii) the Company sells or transfers
all or substantially all of its assets to a person other than an Affiliated Purchaser. For purposes of the foregoing, an “Affiliated Purchaser” means (i) any person that is a beneficial owner of securities of the Company on or before
the date of this Agreement and/or any affiliate thereof (including, without limitation, the members of Frogpond, LLC), and/or (ii) any employee benefit plan, sponsored or maintained by the Company or any affiliate, or any group of persons which
includes such a plan. 
 3.8 Definition of Good Reason. For purposes of this Agreement, Executive’s termination of employment
with the Company shall be deemed for “Good Reason” if any of the following events occur without Executive’s express written consent and Executive resigns within six months after such event occurring, but only if Executive provides the
Company with written notice of his belief that any one of the following specific events has occurred and during the thirty (30) day period following receipt of such notice, the Company fails to cure any such event: 
 (a) The assignment to Executive by the Company of duties inconsistent with, or a substantial alteration in the nature or status of,
Executive’s responsibilities as provided in Section 1.1, other than the assignment of more senior duties, or the failure to elect or re-elect Executive as a director of the Company or the removal of him from any such positions; 

 

 6. 

 (b) A reduction by the Company in Executive’s cash compensation pursuant to
Section 2.1 or as such compensation may have been increased during the Employment Term; 
 (c) Any failure by the Company
to continue in effect without substantial adverse change any compensation, incentive, welfare or benefit plan or arrangement, in which Executive is participating at the time of a Change of Control (or any other plans providing Executive with
substantially similar benefits) (hereinafter referred to as “ Benefit Plans “), or the taking of any action by the Company which would adversely affect, either as to the past or prospectively, Executive’s participation in or
materially reduce or deprive Executive of his benefits that were provided under any such Benefit Plan at the time of a Change of Control; unless an equitable substitute arrangement (embodied in an ongoing substitute or alternative Benefit Plan) has
been made for the benefit of Executive with respect to the Benefit Plan in question; 
 (d) Relocation to any place more than
25 miles from the office regularly occupied by Executive, except for required travel by Executive on the Company’s business to an extent substantially consistent with past practice; 
 (e) Any material breach by the Company of any provision of this Agreement or the failure by the Company or by any successor or assign of
the Company (whether by operation of law or otherwise, including any surviving company in a merger or similar transaction involving the Company), within ten (10) business days after written request to the Company or any successor or assign of
the Company by Executive following a Change of Control to deliver to Executive an agreement expressly reaffirming its obligations under or agreeing to assume and comply with the obligations of the Company under this Agreement. 
 For the avoidance of doubt, the Parties agree that neither their replacement of the 2004 Employment Agreement with this Agreement nor the continuation of
Executive’s employment with the Company under the terms and conditions of this Agreement constitutes Good Reason. 
 3.9 Limitation
on Payments. If any payment or benefit Executive would receive pursuant to this Agreement (“Payment”) would (i) constitute a “parachute payment” within the meaning of Section 280G of the Internal Revenue Code of
1986, as amended (the “Code”), and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then such Payment shall be reduced to the Reduced Amount. The
“Reduced Amount” shall be either (x) the largest portion of the Payment that would result in no portion of the Payment being subject to the Excise Tax or (y) the largest portion, up to and including the total, of the Payment,
whichever amount, after taking into account all applicable federal, state and local employment taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate), results in the Executive’s receipt, on an after-tax
basis, of the greater amount of the Payment. If a reduction in payments or benefits constituting “parachute payments” is necessary so that the Payment equals the Reduced Amount, reduction shall occur in the 

  

 7. 

 
following order unless Executive elects in writing a different order (provided, however, that such election shall be subject to Company approval if made on
or after the date on which the event that triggers the Payment occurs): reduction of cash payments; cancellation of accelerated vesting of stock options; reduction of employee benefits. In the event that acceleration of vesting of stock option
compensation is to be reduced, such acceleration of vesting shall be cancelled in the reverse order of the date of grant of Executive’s stock options unless Executive elects in writing a different order for cancellation 
 The accounting firm engaged by the Company for general audit purposes as of the day prior to the Separation Date shall perform the foregoing
calculations. The Company shall bear all expenses with respect to the determinations by such accounting firm required to be made hereunder. 
 The accounting firm engaged to make the determinations hereunder shall provide its calculations, together with detailed supporting documentation, to the Company and Executive within fifteen (15) calendar days after the date on which
Executive’s right to a Payment is triggered (if requested at that time by the Company or Executive) or such other time as requested by the Company or Executive. If the accounting firm determines that no Excise Tax is payable with respect to a
Payment, either before or after the application of the Reduced Amount, it shall furnish the Company and Executive with an opinion reasonably acceptable to Executive that no Excise Tax will be imposed with respect to such Payment. Any good faith
determinations of the accounting firm made hereunder shall be final, binding and conclusive upon the Company and Executive. 
 SECTION 4.
BUSINESS EXPENSES. 
 The Company shall pay for or reimburse Executive for all reasonable business expenses incurred by Executive in the
performance of his duties hereunder, upon submission to the Company in accordance with Company policy of a written accounting of such expenses, which accounting shall include an itemized list of all expenses incurred, the business purposes for which
such expenses were incurred, and such receipts as Executive reasonably has been able to obtain. 
 SECTION 5. PROPRIETARY INFORMATION AND
INVENTIONS AGREEMENT. 
 Executive shall execute and abide by the Company’s Proprietary Information and Inventions Agreement in the
form already executed by Executive (“Proprietary Information Agreement”). Executive acknowledges that his obligations under the Proprietary Information Agreement shall survive the termination of his employment with the Company. 

 

 8. 

 SECTION 6. COVENANTS OF EXECUTIVE. 
 Executive agrees as follows: 
 6.1 Company
Policies. That at all times during his employment hereunder, he shall comply with the Company’s employee manual and other policies and procedures reasonably established by the Company from time to time concerning various matters, including
but not limited to management, supervision, recruiting, diversity, and sexual harassment. 
 6.2 Non-competition. That during his
employment hereunder, he shall not directly or indirectly, individually or together or through any affiliate or other person, firm, corporation or entity engage in any other business activity which would materially interfere with the performance of
his duties hereunder including, but not limited to, engaging in any Competitive Business with that conducted by Company. For purposes of this Section 6.2, “ Competitive Business “ shall mean the toy/game and children’s
educational and entertainment products business as conducted or contemplated to be conducted by the Company during the Employment Term. 
 6.3 Non-solicitation. That for a period of one year following a termination of employment other than following a Change of Control, he shall not, directly or indirectly, individually, or together through any other person, firm,
corporation or entity, (i) approach, counsel, solicit or attempt to induce any member of senior management of the Company (defined as an officer with a title of vice president or higher) who is then in the employ of the Company, to leave their
employ, or employ or attempt to employ any such person, or (ii) aid or counsel any other person, firm, corporation or entity to do any of the above. And that for a period of one year following a termination of employment other than following a
Change of Control, he shall not, directly or indirectly, individually, or together through any other person, firm, corporation or entity, (i) enter into a business relationship with any material customer of the Company relating to the
children’s educational and entertainment products business in which the Company is engaged at the time of termination of employment or (ii) discourage any person or entity which is a customer of the Company from continuing its business
relationship with the Company. 
 6.4 Cooperation. That, for a period of three years following his termination of employment under
this Agreement, he shall, upon Company’s reasonable request and in good faith and with his best efforts, subject to his reasonable availability, cooperate with and voluntarily (without subpoena or other legal compulsion) provide complete and
accurate information to the Company in any dispute, controversy, or litigation in which Company may be involved and with respect to which Executive obtained knowledge while employed by the Company or any of its affiliates, successors, or assigns,
including, but not limited to, his participation in any court or arbitration proceedings, giving of testimony, signing of truthful affidavits, or such other personal cooperation as counsel for the Company shall request. Any such activities shall be
scheduled, to the extent reasonably possible, to accommodate Executive’s business and personal obligations at the time. The Company shall pay Executive’s reasonable travel and incidental out-of-pocket expenses incurred in connection with
any such cooperation, as well as the reasonable costs of an attorney Executive engages to advise him in connection with the foregoing. 
 6.5 Remedies. Executive agrees that the Company would be irreparably harmed in the event that Subsections 6.2 or 6.3 of the Agreement are violated and, therefore, in the event of any actual or threatened violation of either of these
Subsections, the Company will be entitled in addition to any other remedies to which it may be entitled, at law or in equity, to a temporary 

  

 9. 

 
restraining order and preliminary and permanent injunctive relief and to specifically enforce the terms and provisions hereof without the necessity of
posting bond or proving damages. 
 SECTION 7. REPRESENTATIONS BY EXECUTIVE. 
 Executive represents and warrants that he is free to enter into and perform each of the terms and conditions of this Agreement; and that his execution
and/or performance of all his obligations under this Agreement does not and will not violate or breach any other agreement between Executive and any other person or entity. Executive acknowledges that but for this representation and warranty, the
Company would not agree to enter into this Agreement. 
 SECTION 8. ASSIGNABILITY. 
 This Agreement is binding upon and inures to the benefit of the parties and their respective heirs, executors, administrators, personal representatives,
successors and assigns. The Company may assign its rights or delegate its duties under this Agreement at any time and from time to time. However, the parties acknowledge that the availability of Executive to perform services and the covenants
provided by Executive hereunder have been a material consideration for the Company to enter into this Agreement. Accordingly, Executive may not assign any of his rights or delegate any of his duties under this Agreement, either voluntarily or by
operation of law, without the prior written consent of the Company, which may be given or withheld by the Company in its sole and absolute discretion. 
 SECTION 9. NOTICES. 
 All notices, requests, demands or other communications hereunder shall be deemed
to have been duly given when delivered, addressed as follows (or at such other address is the addressed party may have substituted by notice pursuant to this Section 9): 
  

			
	If to Executive:	  	Thomas J. Kalinske
		  	[Address omitted.]
		
		  	George Short
		  	Hatch & Parent, A Law Corporation
		  	21 East Carrillo Street
		  	Santa Barbara, CA 93101
		
	If to the Company:	  	Leapfrog Enterprises, Inc.
		  	6401 Hollis Street, Suite 150
		  	Emeryville, CA 94608
		  	Attn: Legal Department

  

 10. 

 SECTION 10. ARBITRATION. 
 To ensure the timely and economical resolution of disputes that arise in connection with Executive’s employment with the Company, Executive and the
Company agree that any and all disputes, claims, or causes of action arising from or relating to the enforcement, breach, performance, negotiation, execution, or interpretation of this Agreement, Executive’s employment, or the termination of
Executive’s employment, shall be resolved to the fullest extent permitted by law by final, binding and confidential arbitration, by a single arbitrator, in San Francisco, California, conducted by Judicial Arbitration and Mediation Services,
Inc. (“JAMS”) under the then applicable JAMS employment rules. By agreeing to this arbitration procedure, both Executive and the Company waive the right to resolve any such dispute through a trial by jury or judge or administrative
proceeding. The arbitrator shall: (a) have the authority to compel adequate discovery for the resolution of the dispute and to award such relief as would otherwise be permitted by law; and (b) issue a written arbitration decision, to
include the arbitrator’s essential findings and conclusions and a statement of the award. The arbitrator shall be authorized to award any or all remedies that Executive or the Company would be entitled to seek in a court of law. The Company
shall pay all JAMS’ arbitration fees in excess of the amount of court fees that would be required if the dispute were decided in a court of law. Nothing in this Agreement is intended to prevent either Executive or the Company from obtaining
injunctive relief in court to prevent irreparable harm pending the conclusion of any such arbitration. Notwithstanding the foregoing, Executive and the Company shall each have the right to resolve any issue or dispute involving Company trade secrets
or proprietary information or the Company’s or Executive’s intellectual property rights by court action instead of arbitration. 
 SECTION 11. MISCELLANEOUS. 
 11.1 Entire Agreement. This Agreement contains the full, complete, and exclusive
embodiment of the entire agreement of the parties with regard to the subject matter hereof and supersedes all prior communications, representations, or agreements, oral or written, including (without limitation) the 2002 Employment Agreement, the
2004 Employment Agreement and all negotiations, conversations or discussions between or among the Parties relating to this Agreement and all past course of dealing or industry custom. Executive has not entered into this Agreement or employment
relationship in reliance on any representations, written or oral, other than those contained herein. 
 11.2 Amendment. This Agreement
may not be amended except by an instrument in writing duly executed by the parties hereto. 
 11.3 Applicable Law; Choice of Forum.
This Agreement has been made and executed under, and will be construed and interpreted in accordance with, the laws of the State of California. 
 11.4 Attorneys’ Fees. In any action or proceeding to enforce or interpret this Agreement, or arising out of this Agreement, the prevailing party or parties are entitled to recover a reasonable allowance for fees and
disbursements of counsel and costs of arbitration or suit, to be determined by the court in which the action or proceeding is brought. 
  

 11. 

 11.5 Provisions Severable. Every provision of this Agreement is intended to be severable from
every other provision of this Agreement. If any provision of this Agreement is held to be invalid, illegal or unenforceable, in whole or in part, such invalidity, illegality or unenforceability shall not affect the other provisions of this
Agreement; and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein except to the extent that such provision may be construed and modified so as to render it valid, lawful, and
enforceable in a manner consistent with the intent of the parties to the extent compatible with the applicable law as it shall then appear. 
 11.6 Non-Waiver of Rights and Breaches. Any waiver by a party of any breach of any provision of this Agreement will not be deemed to be a waiver unless it is in writing, and it shall not be deemed to be a waiver of any subsequent
breach of that provision. or of any breach of any other provision of this Agreement. No failure or delay in exercising any right, power, or privilege granted to a party under any provision of this Agreement will be deemed a waiver of that or any,
other right, power or privilege. No single or partial exercise of any right, power or privilege granted to a party under any provision of this Agreement will preclude any other or further exercise of that or any other right, power or privilege.

 11.7 Gender and Number. Concerning the words used in this Agreement, the singular form shall include the plural form, the masculine
gender shall include the feminine or neuter gender, and vice versa, as the context requires, and the word ‘person’ shall include any natural person partnership, corporation, association, trust, estate or other legal entity. 
 11.8 Headings. The headings of the Sections and Paragraphs of this Agreement am inserted for ease of reference only, and will have no effect in
the construction or interpretation of this Agreement. 
 11.9 Counterparts. This Agreement and any amendment or supplement to this
Agreement may be executed in two or more counterparts, each of which will constitute an original but all of which will together constitute a single instrument. Transmission by facsimile of an executed counterpart signature page hereof by a party
hereto shall constitute due execution and delivery of this Agreement by such party. 
 11.10 No Mitigation; Payment Obligations
Absolute. Executive shall not be required to mitigate damages or the amount of any payment provided for under this Agreement by seeking other employment or otherwise, nor shall the amount of any payment provided for under this Agreement be
reduced by any compensation earned by Executive as a result of employment by another employer. The Company’s obligations to pay Executive the amounts provided hereunder shall be absolute and unconditional and shall not be affected by any
circumstances, including, without limitation, any set-off, counterclaim, recoupment, defense or other right the Company may have against Executive, any of which may be asserted against Executive in a separate proceeding. 
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BLANK] 
  

 12. 

 11.11 Publicity. Except as required by applicable law or regulation, neither of the Parties shall
make a public announcement regarding their entry into this Agreement without first obtaining the approval of the other Party of the contents of such announcement, such approval not to be unreasonably withheld. 
 IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the date first above written. 
  

	
	 EXECUTIVE:

	
	 /s/ Thomas J. Kalniske

	 Thomas J. Kalinske

  

			
	 COMPANY:
  
 LEAPFROG ENTERPRISES, INC.

		
	By:	 	 /s/ Steven B. Fink

	 Name:
	 	 Steven B. Fink

	 Title
	 	 Chairman

  

 13.

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