Document:

Fifth Amendment to Net Lease

 Exhibit 10.03 
  
 FIFTH AMENDMENT TO LEASE 
  
 THIS FIFTH AMENDMENT TO LEASE (“Agreement”) dated this 7th day of March, 2005, is made and entered into by and between HOLLIS STREET INVESTORS, L.L.C., a Delaware limited liability company
(“Landlord”) and LEAPFROG ENTERPRISES, INC., a Delaware corporation (“Tenant”). 
  
 BACKGROUND 
  
 A. Landlord and Tenant entered into that certain Lease Agreement dated November 14, 2000, for approximately 40,060 rentable square feet of space (the “Premises”) located at 6401 Hollis Street, Suite
150, Emeryville, California, as more fully described in the Lease; and 
  
 B. The Lease has been amended by a First Amendment to Lease dated April 30, 2001. 
  
 C. The Lease has been amended by a Second Amendment to Lease dated February 22, 2002, whereby the Premises were expanded by an additional 30,770 rentable square feet and Tenant’s Pro Rata Share was increased to
Fifty-One and Sixty-Two Hundredths Percent (51.62%). 
  
 D. The
Lease has been amended by a Third Amendment to Lease dated March 27, 2003. 
  
 E. The Lease has been amended by a Fourth Amendment to Lease dated March 27, 2003, whereby the Premises were expanded by an additional 31,980 rentable square feet and Tenant’s Pro Rata Share was increased to
Seventy-Four and Ninety-Three Hundredths Percent (74.93%). 
  
 F.
The Lease Agreement, as amended from time to time, is referred to as the “Lease”. 
  
 G. The Premises currently contain 102,810 rentable square feet. 
  
 H. The current term of the Lease expires on January 31, 2006; 
  
 I. Tenant desires to extend the term of the Lease until March 31, 2016 and to amend the terms and conditions of the Lease as set forth in this Agreement.

  
 J. Capitalized terms used but not otherwise defined herein
shall have the meanings ascribed to them in the Lease. 

 AGREEMENT 
  
 NOW, THEREFORE, in consideration of the covenants and agreements contained herein, the parties hereby mutually agree as
follows: 
  
 1. COMMENCEMENT DATE: The effective
date of this Agreement shall be January 1, 2005 (the “Effective Commencement Date”). 
  
 2. TERMINATION DATE: The term of the Lease shall be extended until March 31, 2016. 
  
 3. PERMITTED USES: Permitted uses of the Premises shall include
general office, customer training and support incidental thereto and prototype design workshops and functions related thereto. 
  
 4. RENT: As of the Effective Commencement Date, Section 4 of the Lease is amended to reflect that the Base Rent for the Premises shall be as
set forth below, payable in equal monthly installments, in advance, on the first (1st) business day of each and
every month of the Term. Rent adjustments shall occur on the anniversary dates of the Effective Commencement Date. 
  

				
	 Months

	  	Base Rent/Month

	 Commencement –December 31, 2005
	  	$	115,764.30
	 January 1, 2006 – December 31, 2006
	  	$	119,876.70
	 January 1, 2007 – December 31, 2007
	  	$	131,586.00
	 January 1, 2008 – December 31, 2008
	  	$	134,413.28
	 January 1, 2009 – December 31, 2009
	  	$	137,311.23
	 January 1, 2010 – December 31, 2010
	  	$	140,281.64
	 January 1, 2011 – December 31, 2011
	  	$	161,398.50
	 January 1, 2012 – December 31, 2012
	  	$	164,868.34
	 January 1, 2013 – December 31, 2013
	  	$	168,424.92
	 January 1, 2014 – December 31, 2014
	  	$	172,070.42
	 January 1, 2015 – December 31, 2015
	  	$	175,807.05
	 January 1, 2016 – March 31, 2016
	  	$	179,637.11

  
 The above-referenced rent figures
include the costs of all parking spaces. The Base Rent shall remain payable in equal monthly installments, in advance, on the first (1st) business day of each and every month of the Term. 
  
 5. PARKING: 
  
 (a)
Commencing on the Effective Commencement Date, Tenant shall have the right to use four (4) spaces per 1,000 rentable square feet of leased area (411 parking stalls as of the Effective Commencement Date). In order to achieve the above-stated parking
ratio, some parking may be tandem parking requiring an attendant. Tenant agrees that in that event the cost of the parking attendant shall be an Operating Expense and Tenant will be liable for its pro rata share. 
  

 2 

 (b) Notwithstanding the above, Tenant shall continue to have the right to use unlimited parking spaces
beyond Tenant’s allocation (the “Additional Parking Spaces”) until such time as all parking spaces in the Project have been allocated to tenants on a four (4) spaces per 1,000 rentable square feet of leased area basis;
provided that Landlord may notify Tenant from time to time as Landlord leases additional space in the Project of the number of Additional Parking Spaces that Tenant must relinquish so that Landlord can provide parking spaces for other tenants
in the Project (which parking for other tenants shall not exceed four (4) spaces per 1,000 rentable square feet of leased area) without implementing tandem parking. After Tenant has relinquished its right to use all of the Additional Parking Spaces,
Landlord may need to implement tandem parking for all tenants. 
  
 6. BASE BUILDING ALLOWANCE: 
  
 a. Landlord
shall provide Tenant with an allowance of Five Hundred Thousand and No/100 Dollars ($500,000.00) (“Landlord’s Base Building Allowance”). Using the Landlord’s Base Building Allowance, Landlord shall complete certain base
building repairs and improvements to the Building as mutually agreed by Landlord and Tenant (“Landlord’s Building Improvements”). Upon the parties agreement as to the Landlord Building Improvements, a list of such improvements
shall be attached to this Amendment as Exhibit A, provided that failure to do so shall not relieve Landlord of its obligation to make the agreed-upon Landlord’s Building Improvements. 
  
 b. The Landlord’s Base Building Allowance may be used for one or more of
the following purposes, at Tenant’s election: (i) Landlord’s Building Improvements; (ii) cosmetic or other improvements to the Premises (“Tenant Improvements”); or (iii) the cost of the back-up generator described in
Section 6(c) below. If some or all of the Landlord’s Base Building Allowance is applied toward the cost of Landlord’s Building Improvements which are Landlord’s responsibility under Section 10(a) of the Lease, that portion of
Landlord’s Base Building Allowance applied to such costs shall be computed in accordance with Section 5 of the Lease based on Tenant’s Percentage Share of Operating Expenses and not on the full cost of such repair or improvement. (By way
of example, if Landlord’s Base Building Allowance is used to repair the roof at the cost of $100,000, the cost allocated toward the Landlord’s Base Building Allowance would be $74,930, based on Tenant’s Percentage Share of Operating
Expenses of 74.93%.) If some or all of Landlord’s Base Building Allowance is applied toward Tenant Improvements, such amount will be deemed a “Tenant Improvement Allowance” for purposes of calculating the termination fee with respect
to Tenant’s termination right described in Paragraph 10 below. Landlord’s Base Building Allowance allocated toward Landlord’s Building Improvements or the cost of the back-up generator shall not constitute a Tenant Improvement
Allowance for purposes of Paragraph 10 below. 
  
 c.
Landlord’s Base Building Allowance will be available to Tenant until December 31, 2006 and, if not used by such date, any unused portion of Landlord’s Base Building Allowance shall no longer be available. 
  

 3 

 d. If requested by Tenant, Landlord shall provide an additional improvement allowance (the
“Additional Improvement Allowance”) of up to Three Hundred Thousand and No/100 Dollars ($300,000.00) for Tenant’s purchase and installation of a “back-up” generator. The amount of the Additional Improvement Allowance
actually used by Tenant shall be amortized over the term of the Lease at eight percent (8%) per annum, payable monthly as Additional Rent. If the Additional Improvement Allowance or Tenant’s own capital is used to purchase and install the
back-up generator, the back-up generator shall be the property of Tenant and Tenant shall have the option to remove or leave the back-up generator with the Premises upon the expiration or earlier termination of the Lease. If, however, Tenant elects
to utilize any portion of Landlord’s Base Building Allowance to purchase and install the back-up generator, the back-up generator shall be the property of Landlord and shall remain with the Premises upon the expiration or earlier termination of
the Lease. 
  
 e. Pursuant to the provisions of paragraph 9(a) of
the Lease, Tenant shall comply with all Legal Requirements applicable to each Alteration, including the installation of the generator referred to in this paragraph, and shall deliver to Landlord a complete set of “as built” plans and
specifications for each Alteration. Landlord hereby represents and warrants that, to Landlord’s actual knowledge, as of the Effective Commencement Date, the Project is in compliance with the American With Disabilities Act (“ADA”) and
that notwithstanding the provisions of this Section 6(e) or Sections 9(c) or 5 (b) of the Lease, Tenant shall not be responsible for any ADA compliance arising from Landlord’s Building Improvements, the Tenant Improvements or the installation
of the back-up generator to the extent the Premises, Building or Project was not in compliance with ADA, as enacted and implemented as of the Effective Commencement Date. 
  
 7. OPTION TO EXTEND: As of the Effective Commencement Date, the provisions of Section 39 of the Lease,
Renewal Option shall be revised to provide for one additional option to renew the Lease Term for five (5) years, subject to the other terms and conditions set forth in Section 39. 
  
 8. EXPANSION OPTION: Tenant shall have a right of first offer (“Expansion Option”) to lease
Suite 125, 6401 Hollis Street, Emeryville, California, containing approximately 34,393 rentable square feet (the “Expansion Premises”) by giving written notice to Landlord no later than June 30, 2005. As a condition to Tenant’s
Expansion Option, as of the date that Tenant notifies Landlord of Tenant’s intention to exercise its Expansion Option, there shall be no continuing Event of Default (beyond applicable notice and cure periods) by Tenant under this Lease.
Landlord shall provide a tenant improvement allowance (“Expansion Allowance”) of Forty-Five and No/100 Dollars ($45.00) per rentable square foot for improvements to the Expansion Premises in accordance with a mutually agreeable
space plan. The term of the Lease for the Expansion Premises will commence upon the earlier of (i) thirty (30) days after delivery of the Expansion Premises, or (ii) January 1, 2006, but in no event prior to September 1, 2005. The monthly Base Rent
for the Expansion Premises will be the same as the then scheduled Base Rent for the existing Premises, as set forth in Paragraph 4 above, throughout the term of the Lease. 
  

 4 

 9. RIGHT OF FIRST OFFER: 
  
 (a) If Tenant does not exercise the Expansion Option outlined in Paragraph 8 above, Tenant shall have the first right to
negotiate to lease the Expansion Premises. Prior to the leasing any additional space to any prospective third parties, Landlord shall notify Tenant in writing (“Landlord’s Notice”) of the general terms and conditions, including
without limitation, the size and location of the available space (the “Available Space”), the rent, tenant allowance and parking ratio, under which Landlord would be willing to rent such space. Tenant shall have an option,
exercisable by notice to Landlord within seven (7) Business Days after receipt of Landlord’s Notice, to lease all or a portion of the Available Space in accordance with the provisions contained in Landlord’s Notice. As a condition to
Tenant’s right of first offer, as of the date that Tenant notifies Landlord of Tenant’s intention to exercise its option, there shall be no continuing Event of Default (beyond applicable notice and cure periods) by Tenant under this Lease.
Promptly after Tenant exercises this option, the parties shall enter into an amendment to the Lease that incorporates the Available Space as part of the Premises. 
  
 (b) If Tenant elects not to lease all of the Available Space specified in Landlord’s notice, the right of first offer
shall terminate as to such Available Space and Landlord shall be free to lease the Available Space to any third party; provided however, if the terms and conditions of any lease with the third party are substantially in accordance with the
terms offered to Tenant and the rent is not within ninety percent (90%) of the rent offered to Tenant, then Tenant shall have a right of first refusal to lease the Available Space at the price and terms offered to such third party. 
  
 10. TERMINATION RIGHT: Tenant shall have the right to terminate
the Lease and associated parking as to a portion of the Premises at any time after January 1, 2011 (the “Effective Termination Date”); provided that Tenant satisfies all of the following requirements: 
  
 (a) Tenant’s right to terminate shall be limited to “full
quadrants” of the Building based on the following schedule: (i) if Tenant has expanded into Suite 125, the quadrants shall be terminated in the following order: Suite 150, 100, 175 and 125; or (ii) if Tenant has not expanded into Suite 125, the
quadrants shall be terminated in the following order: Suite 175, 150 and 100. If Tenant exercises its right to terminate a “quadrant”, Tenant may not terminate an additional “quadrant” until twelve (12) months after the Effective
Termination Date of the previously terminated quadrant. 
  
 (b)
Tenant shall have provided Landlord with written notice of Tenant’s intention to exercise the option to terminate a portion of the Lease, which notice must be received by Landlord no later than twelve (12) months prior to the Effective
Termination Date; 
  
 (c) As of the date that Tenant notifies
Landlord of Tenant’s intention to terminate the Lease as to a particular quadrant and as of the Effective Termination Date, there shall be no continuing Event of Default (beyond applicable notice and cure periods) by Tenant under this Lease;
and 
  
 (d) Tenant shall pay to Landlord at the time Tenant gives
written notice to Landlord as provided for in Subparagraph 10(b), above a termination fee, prorated as to that portion of the Premises for which the Lease is terminated. The termination fee shall equal the sum of the unamortized portion of (i) all
brokerage commissions incurred by Landlord in 

  

 5 

 
relationship to the execution of this Lease, and (ii) the Tenant Improvement Allowance and the Additional Improvement Allowance; provided that, the
Tenant Improvement Allowance, the Additional Improvement Allowance, and the brokerage commissions shall be amortized on a straight-line basis over the Lease Term bearing interest at a rate of eight percent (8%) per annum. 
  
 (e) Upon the Effective Termination Date pursuant to this paragraph, Tenant
shall vacate and surrender the terminated quadrant to Landlord as provided for in the Lease. All rights and obligations of Tenant under the Lease with respect to the terminated quadrant shall cease to exist as of the Effective Termination Date.
Notwithstanding the foregoing, Tenant’s audit rights under Section 5(i) shall survive the termination of a quadrant. 
  
 11. SECURITY: Landlord agrees to provide security guard service for the Project based on the following schedule: Monday through Friday
– 6:00 p.m. to 8:00 a.m.; Saturday, Sunday and holidays – 10:00 a.m. to 6:00 p.m. The cost of said guard service shall be a Project-related Operating Expense for which Tenant shall be responsible for Tenant’s Percentage Share
allocated to the Building. 
  
 12. AUTHORITY: Tenant
represents and warrants that all necessary corporate actions have been duly taken to permit Tenant to enter into this Agreement and that the person signing this Agreement on behalf of Tenant has been duly authorized and instructed to execute this
Agreement. Landlord represents and warrants that all necessary company actions have been duly taken to permit Landlord to enter into this Agreement and that the person signing this Agreement on behalf of Landlord has been duly authorized and
instructed to sign this Agreement. 
  
 13. BROKERS:
Each of Landlord and Tenant warrants and represents that it has dealt with no real estate broker in connection with this Agreement other than Colliers International and BT Commercial (collectively, “Broker”), and that no other
broker is entitled to any commission on account of this Agreement. The party who breaches this warranty shall defend, hold harmless and indemnify the other from any loss, cost, damage or expense, including reasonable attorneys’ fees, arising
from the breach; Landlord’s indemnity of Tenant shall include claims by the Broker. Landlord is solely responsible for paying the commission of the Broker in accordance with a separate agreement. 
  
 14. FULL FORCE AND EFFECT: Except as expressly modified above,
all terms and conditions of the Lease remain in full force and effect and are hereby ratified and confirmed. Landlord and Tenant hereby acknowledge and agree that, except as provided in this Agreement, the Lease has not been modified, amended,
canceled, terminated, released, superseded or otherwise rendered of no force or effect. 
  

 6 

			
	 LANDLORD:
  
 Hollis Street Investors, L.L.C., a
 Delaware limited liability
company
  
	 	 TENANT:
  
 LeapFrog Enterprises, Inc., a Delaware
 corporation
  

  

											
	By:	 	 Multi-Employer Property Trust, its
 Manager
	 	 	 	 
					
	 	 	By:	 	 Kennedy Associates Real Estate
 Counsel,
Inc., its Authorized
 Signatory
	 	 By:
 Name:
 Its:
	 	 /s/ William B. Chiasson
 /s/ William B.
Chiasson
 Chief Financial Officer

						
	 	 	 	 	By:	 	 /s/ Scott M. Matthews

	 	 	 	 
	 	 	 	 	Name:	 	Scott M. Matthews	 	 	 	 
	 	 	 	 	Its:	 	Vice President	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 

 Exhibit A 
  

Base Building Work 
  
 [Omitted]Employment Agreement between William B. Chiasson and LeapFrog

 Exhibit 10.33 
  
 November 11, 2004 
  
 William Chiasson 
 [address omitted] 
  
 Dear Bill: 
  
 We are pleased to offer you a full-time exempt position as Chief Financial Officer for LeapFrog Enterprises Inc. (“LeapFrog” or
the “Company”), effective November 11, 2004. You will be based out of our Emeryville office at 6401 Hollis Street, Suite 150, and you will report to Tom Kalinske, Chief Executive Officer. 
  
 LeapFrog offers an exciting challenge for professional and personal growth in a company with
a demonstrated commitment to market leadership and excellence. LeapFrog offers a compensation package to reflect our belief in rewarding performance appropriately. Your base compensation will be $290,000 on an annualized basis, less standard
deductions and withholdings. 
  
 In addition, you will become eligible for the
following benefits in accordance with Company policy as in effect from time to time: 
  

	 	•	 	Bonus: As per the Executive Bonus Plan, your annual bonus potential at the target bonus opportunity level is 50% of annual base compensation and up to a maximum 83.5% of base
compensation, based on the Company’s attainment of established financial goals and your achievement of individual goals and objectives. You will be eligible to participate in the 2005 Executive Bonus Plan 

  

	 	•	 	Car Allowance: You will receive a monthly car allowance of $650, less standard payroll deductions and tax withholdings, paid in semi-monthly installments through the normal
payroll process. 

  

	 	•	 	Group Health and 401(k) Benefits: You will be eligible for medical, dental, life, disability and AD&D insurance, and participation in the 401(k) Plan, on the first day of
the month following your first 30 days of service. 

  

	 	•	 	Vacation Time: You will accrue four weeks of vacation per year. 

  

	 	•	 	 Severance: If we terminate your employment without Cause, or if you terminate your employment for Good Reason (as such terms are defined below), you will be
entitled to receive all of your accrued and unused vacation and unpaid base compensation earned through your last day of employment (the “Separation Date”), and any bonus earned but unpaid as of the Separation Date (i.e., in the event that
you have worked through December 31 of the previous year and earned a bonus, but such bonus has not been paid 

  

 LeapFrog is proud to be an Equal Opportunity Employer. 

 
as of the Separation Date). If the termination does not occur during the Change in Control Period (defined below), you will also be entitled to receive the
following severance benefits (collectively, the “Severance Benefits”), provided that you comply with the Release obligation described below: 
  
 (i) Cash Severance. The Company will pay you: (a) a lump-sum payment equal to nine (9) months of your then current base salary,
less all required payroll deductions and withholdings, and (b) a pro rata portion of any bonus that you would, but for the termination, otherwise have earned in the year of the Separation Date, subject to required payroll deductions and
withholdings, as and when otherwise payable under the applicable bonus plan. For purpose of further clarification of this benefit, to the extent that the earning of such bonus is based on your achievement of objectives and/or Company performance
during a certain bonus period (the “Bonus Period”), your right to receive a bonus pursuant to this section shall be based on the results from the entire Bonus Period, and you shall be entitled to receive a pro-rata portion of such bonus
based on the percentage of the Bonus Period during which you were employed. 
  
 (ii) COBRA Premiums. If you timely elect to continue your Company-provided group health insurance coverage pursuant to federal COBRA law and, if applicable, state insurance laws, the Company shall also
reimburse you for the cost of the COBRA premiums for you and your dependents (if applicable) in effect as of the Separation Date for a period of nine (9) months after the Separation Date. Your entitlement to such reimbursement shall cease before the
end of such period if and when you become eligible for group health insurance with a subsequent employer. You shall notify the Company’s Vice President of Human Resources in writing immediately upon becoming eligible for health insurance with a
subsequent employer. 
  
 (iii) Stock Option
Acceleration. All unvested options held by you 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 Separation Date as provided under the applicable stock option agreements in the case of termination of employment. 
  
 As a precondition of giving you the Severance Benefits or the Change in Control Severance Benefits (described below), the
Company must first receive from you a signed general release of claims in the form required by the Company (the “Release”) and you must allow the Release to become effective. 
  

	 	•	 	Severance for Termination in Connection with a Change in Control. If the Company terminates your employment without Cause within ninety (90) days prior to or within twelve
(12) months following a Change in Control (as such term is defined below) of the Company (the “Change in Control Period”), or if you resign for Good Reason during the Change in Control Period, and you provide the Company with the Release
described above and you allow the Release to become effective, the Company will pay you the following Change in Control Severance Benefits: 

  

 LeapFrog is proud to be an Equal Opportunity Employer. 

 (i) Cash Severance. The Company will pay you (a) a lump-sum payment equal to
twelve (12) months of your then current base salary, less all required payroll deductions and withholdings, and (b) any bonus that you would, but for the termination, otherwise have earned in the year of the Separation Date, subject to required
payroll deductions and withholdings, as and when otherwise payable under the applicable bonus plan. 
  
 (ii) COBRA Premiums. If you timely elect to continue your Company-provided group health insurance coverage pursuant to federal
COBRA law and, if applicable, state insurance laws, the Company shall also reimburse you for the cost of the COBRA premiums for you and your dependents (if applicable) in effect as of the Separation Date for a period of twelve (12) months after the
Separation Date. Your entitlement to such reimbursement shall cease before the end of such period if and when you become eligible for group health insurance with a subsequent employer. You shall notify the Company’s Vice President of Human
Resources in writing immediately upon becoming eligible for health insurance with a subsequent employer. 
  
 For purposes of this agreement, a termination shall be for “Cause” if you 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 of your position for a
period of ten (10) days 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, you shall be given the opportunity to take reasonable steps to cure any such claimed past failure of performance. 
  
 For purposes of this agreement, you shall have “Good Reason” for termination of your employment if you resign within sixty (60) days after the occurrence of one
of the following events without your consent: (i) a removal of you from your position as Chief Financial Officer of the Company unless the removal occurs solely as a result of a merger into a larger entity such that you retain the same authority for
divisional operations that are substantially identical to the Company’s previous operations as an independent entity including, for example, Treasury, Investor Relations, and External/Public Reporting; (ii) any material diminution of your role,
responsibilities and authority except to the extent that your authority is reduced solely as a result of a merger into a larger entity such that you retain the same authority for divisional operations that are substantially identical to the
Company’s previous operations as an independent entity; (iii) reduction of your then current base salary in an amount greater than ten percent (10%) of your initial base salary, unless the base salary of other senior level executive officers of
the Company is accordingly reduced; (iv) any material reduction in the aggregate level of benefits to which you are entitled under this agreement or the taking of any action which would adversely affect your accrued benefits under any such employee
benefit plans, unless a similar reduction is made for other senior level executive officers of the Company; or (v) a demand by the Company that you relocate to any place that exceeds a twenty-five (25) mile radius beyond the primary location of the
Company as of the date of this agreement. In the event you intend to assert that you have 

  

 LeapFrog is proud to be an Equal Opportunity Employer. 

 
grounds for terminating your employment for Good Reason, you shall give the Company at least thirty (30) days’ notice. The Company shall have the
opportunity during the notice period to cure the event which you assert constitutes Good Reason (provided that this event is not a reoccurrence of the same or substantially similar event that occurred during the prior six (6) months) and, if the
Company cures the event, then you shall not be entitled to terminate your employment for Good Reason. 
  
 For purposes of this Agreement, “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: 
  
 (a) any person (within the meaning of Section 13(d) or 14(d) of the
Securities Exchange Act of 1934, as amended) other than Lawrence Ellison, Michael Milken, Lowell Milken, or any combination of the foregoing, 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; 
  
 (b) 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; 
  
 (c) the
stockholders of the Company approve or the Company’s Board of Directors approves a plan of complete dissolution or liquidation of the Company; or 
  
 (d) 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. 
  

	 	•	 	Stock Option: The Compensation Committee of the Board of Directors of the Company has approved granting an option to you for the purchase of 150,000 shares of the
Company’s Class A Common Stock (the “Option”). All stock options are subject to the terms and conditions of the applicable equity plan and the corresponding stock option grant notice and stock option agreement. The Option shall have
an exercise price equal to the closing fair market value of the Common Stock on the date of the grant. The Option shall vest over a four year period, or until your employment with the Company ends, as follows: 

  

 LeapFrog is proud to be an Equal Opportunity Employer. 

	 	•	 	Twenty-five (25%) of the shares subject to the Option shall vest on the first anniversary of the date you became employed by the Company (the “Employment Date”), and

  

	 	•	 	1/36 of the remaining shares subject to the Option shall vest each month thereafter, for thirty-six (36) consecutive months. 

  

	 	•	 	Change in Control Benefit: In the event of a Change in Control (as defined above), you shall be entitled to receive the following: 

  

	 	(i)	Within First Year. If the Change in Control occurs within one (1) year after the Employment Date, all unvested options held by you shall accelerate vesting such that a total of
one-half (1/2) of the shares subject to the options shall be fully exercisable immediately upon the effective date of the Change Control. The remaining one-half (1/2) of the shares subject to the options shall continue to vest pursuant to the terms
of the Plan and corresponding stock option grant notices and stock option agreements. 

  

	 	(ii)	After First Year. If the Change in Control occurs more than one (1) year after the Employment Date, one-half (1/2) of the unvested shares subject to the options held by you shall
accelerate vesting and become fully exercisable immediately upon the effective date of the Change in Control. The remaining unvested shares subject to the options shall continue to vest pursuant to the terms of the Plan and corresponding stock
option grant notices and stock option agreements. 

  

	 	•	 	Annual Stock Option Program: You will be eligible to participate in the annual stock option program beginning April 2005, at the executive officer level. The current
guideline at target is 21,000 shares. 

  

	 	•	 	Executive Performance Share Program: You will be eligible to participate in the annual Executive Performance Share Program starting with the January 2005 – December 2007
plan. The current guideline at target is 10,600 shares. 

  
 Acceptance of this offer does not create a contractual obligation to continue your employment in the future. You will be employed “at will” by the Company and are subject to termination at any time, with or without cause or
advance notice. You will also retain the right to terminate your employment at any time for any reason, with or without advance notice. Your employment will be subject to all of the Company policies as in effect from time to time. The at-will
employment relationship may not be modified except in a writing signed by the CEO of the Company. The Company may change your position, duties, work location, compensation and benefits from time to time, as it deems necessary. 
  
 As a LeapFrog employee, you will be expected to abide by all Company rules and procedures
and, as a condition of employment, you will be required to read and sign an Employee Acknowledgement when you begin your employment with the Company. This offer of employment is contingent upon your submission and completion of I-9 documentation and
the enclosed Employee Proprietary Information and Inventions Agreement, along with the successful completion of any background and reference checks. On your first day, please bring with you two forms of I-9 acceptable documentation and the Employee
Proprietary Information and Inventions Agreement signed by you. Please also bring a voided check if you would like direct deposit for your paycheck. 
  

 LeapFrog is proud to be an Equal Opportunity Employer. 

 This offer is valid through November 11, 2004, and a signed copy of this offer letter must be returned to my office by
such date. The additional copy should be retained for your records. This letter agreement, together with your Employee Proprietary Information and Inventions Agreement, forms the complete and exclusive statement of your employment agreement with the
Company. The employment terms in this letter agreement supersede any other agreements or promises made to you by anyone, whether oral or written. Changes in your employment terms described in this agreement, other than those changes expressly
reserved to the Company’s discretion, require a written modification signed by you and the CEO of LeapFrog. If you have any questions regarding our offer, please contact me directly at 510/596-5435. Confidential Fax: 510/420-5005. 

 
 We are looking forward to establishing a mutually rewarding relationship with you and
welcome your contribution to our Company. 
  
 Sincerely, 
  
 /s/ Laura Dillard 
  
 Laura Dillard 
 Vice President, Human Resources

  
 By signing below, you represent that you have read and agree to the terms of
the above offer and agree to start your employment with LeapFrog on November 11, 2004. In addition, you represent that you are not subject to any agreement, judgment, order, or restriction that would be violated by your being employed with the
Company, or that in any way restricts your ability to perform services for the Company. 
  

			
	Signature:	 	 /s/ William B. Chiasson

		
	Print Name:	 	 William B. Chiasson

		
	Date:	 	 November 11, 2004

  
  
  

 LeapFrog is proud to be an Equal Opportunity Employer.

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