Document:

Employment Agreement btwn Madeline Schroeder and Leapfrog

 Exhibit 10.31 
 EMPLOYMENT AGREEMENT 
  
 THIS EMPLOYMENT AGREEMENT, effective as of April 3, 2001 (“Agreement”), is made between LeapFrog Enterprises, Inc., a Delaware corporation (the “Company”), and Madeline Schroeder (the “Employee”). 

 
 AGREEMENT: 
  
 NOW, THEREFORE, in consideration of the mutual promises and subject to the
terms and conditions set forth herein, the parties hereto agree as follows: 
  
 SECTION 1. EMPLOYMENT. 
  
 1.1 Position,
Duties, Responsibilities, Authority. The Company hereby employs Employee as the Vice President of Worldwide Product Content, on the terms and conditions hereinafter set forth. In such capacity, Employee shall have such duties and authority as
are customary for, and commensurate with such position. Employee shall, to the best of Employee’s ability, carry out such responsibilities and duties in an efficient trustworthy, effective and businesslike manner. Employee shall perform
Employee’s responsibilities hereunder for the Company and/or such affiliates of the Company as the President of the Company may designate from time to time. 
  
 1.2 Exclusive Employment. While Employee is employed with the Company, Employee shall devote Employee’s full
business time to Employee’s duties and responsibilities set forth in this Section 1. Without limiting the generality of the foregoing, Employee shall not, without the prior written approval of the Company’s Board of Directors, render
services of a business, professional or commercial nature to any other person, firm or corporation, whether for compensation or otherwise, except that Employee may engage in civic, philanthropic and community service activities so long as such
activities do not interfere with Employee’s ability to comply with this Agreement and are not otherwise in conflict with the policies or interests of the Company. 
  
 SECTION 2. COMPENSATION AND OTHER BENEFITS. 
  

In consideration of Employee’s employment, and except as otherwise provided herein, Employee shall receive from the Company the compensation and
benefits described in this Section 2, in full and complete satisfaction of all of the Company’s obligations to Employee arising from Employee’s employment. The compensation and employee benefits payable to Employee pursuant to this
Agreement may be changed only by the written agreement of the parties. Employee authorizes the Company to deduct and withhold from all compensation to be paid to Employee 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. While Employee is employed with the Company, the Company shall pay to Employee, and Employee
shall be entitled to receive from the Company, as a fixed salary for the full time employment referred to in Section 1 hereof, compensation (“Compensation”) from the effective date of this Agreement through January 1, 2002 at the rate of
Sixteen Thousand, Six Hundred and Sixty Seven Dollars ($16,667) per calendar month [a rate equivalent to $200,000 per annum]. Said 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. 

 2.2 Stock Options. The Company will grant you 150,000 options to purchase class A common stock at
$5.00 per share, pursuant to the Company’s Stock Option Plan, effective with the next mass grant of stock options, which is expected to occur in September 2001. The vesting period shall be monthly over four years with 2,604 options vesting
monthly. 
  
 2.3 Performance Bonus. Employee shall be
eligible to receive an annual bonus (“Bonus”), of $60,000, based upon performance standards as established in writing by the President of LeapFrog, with consultation with Employee, provided employee is employed as of December 31 of the
year of the Bonus. 
  
 2.4 Other Benefits. Employee shall
be entitled to applicable employee benefits, such as group medical and dental for Employee, Employee’s spouse and dependent children, life and disability insurance coverage, sick leave and vacation all as granted to the Company’s employees
in accordance with the Company’s policies and guidelines, including but not limited to contribution requirements for dependent coverage, as approved by the Company’s Board of Directors from time to time. 
  
 SECTION 3. EMPLOYMENT TERM AND TERMINATION. 
  
 3.1 Term and Termination. Employee’s employment with Company is
for unspecified duration and constitutes at-will employment within the meaning of California Labor Code Section 2922. Accordingly, the employment relationship may be terminated at any time with or without cause, by Company or by Employee, by
delivery of written notice. Except as otherwise specifically provided in Section 3.2 below, upon termination of employment Employee shall not be entitled to receive any compensation or benefits other than Compensation due through the date of
termination of Employment. 
  
 3.2 Compensation and Benefits
Upon Termination Without Cause. In the event the Company terminates the Employee’s employment for any reason other than the death or disability of Employee, or Cause, the Company shall pay Employee: (i) in a lump sum within thirty (30) days
of the effective date of termination, any Compensation due through the date of termination; (ii) the balance of Employee’s Compensation, as and when otherwise payable hereunder, which Employee would have been entitled to receive through the end
of the Severance Period (as defined below), (iii) a pro rata portion of Employee’s Bonus, as and when otherwise payable hereunder, which Employee would have been entitled to receive through the effective date of termination, and (iv)
continuation of benefits upon substantially the same terms and conditions then in effect on the date of termination under all medical, dental and life insurance plans through the end of the Severance Period, provided that Employee at Employee’s
expense shall be entitled to continue appropriate benefits under any applicable Cobra program thereafter and (v) one year of accelerated stock options vesting. In no event will Employee vest in any stock options or other similar rights during the
Severance Period. As used in this Section 3.2, the Severance Period shall mean the period beginning on the date of termination of employment and ending on the earliest of: (a) the date that Employee is employed with another employer, or (b) the date
that Employee is engaged in any independent contractor or consulting relationship, or (c) the date that is three (3) months after the date of termination of Employee’s employment with the Company during the first year of employment and two (2)
months after the second year of employment. 
  
 For purposes of this Section 3.2,
the following definitions shall apply: 
  
 The term “disability” shall
mean a physical or mental disability that renders Employee unable to perform Employee’s normal duties for the Company for a period of 120 consecutive days as determined by the Board of Directors of the Company. 
  

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 The term “Cause” shall mean if the Employee 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. 
  
 SECTION 4.
BUSINESS EXPENSES 
  
 4.1 The Company shall pay for or
reimburse Employee for all reasonable business expenses incurred by Employee in the performance of Employee’s 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 Employee reasonably has been able to obtain. 
  
 SECTION 5. COVENANTS OF EMPLOYEE. 
  
 5.1 Acknowledgments. Employee acknowledges the following: 

 
 5.1.1 Access to Confidential Information. Employee’s services
to be rendered hereunder shall place him in a position of confidence and trust which shall allow him access to “Confidential Information” (as hereinafter defined). 
  
 5.1.2 Fair and Reasonable Covenant. The type and period of restrictions imposed by the covenants in this Section 5
are fair and reasonable and such restrictions will not prevent Employee from earning a livelihood. 
  
 5.2 Covenant as to Nondisclosure or Use of Confidential Information. Employee agrees as follows: 
  
 5.2.1 Employee shall not at any time during or after Employee’s
employment, disclose to anyone outside of the Company or use for any purpose that is not expressly authorized by the Company any Confidential Information. Employee shall not deliver, reproduce or in any way allow any Confidential Information to be
delivered to or used by any third parties without specific written consent of a the President of the Company. 
  
 5.2.2 The Company’s agreements with other persons or with the U.S. government, or its agencies, may include agreements that impose obligations or
restrictions regarding inventions that occur in connection with work relating to such an agreement, or regarding the confidential nature of work pursuant to such an agreement. Employee agrees to be bound by all such lawful obligations and
restrictions, and to do whatever is necessary to satisfy the obligations of the Company. 
  
 5.2.3 Employee acknowledges that the Company has received and in the future will receive from third parties confidential or proprietary information (“Third Party Information”) subject to a duty on the
Company’s part to maintain the confidentiality of such information and to use it 
  

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 only for certain limited purposes. Employee agrees that during the term of Employee’s employment with the Company
and thereafter, Employee will hold Third Party Information in the strictest confidence and will not disclose to anyone (other than Company personnel who need to know such information in connection with their work for the Company) or use, except in
connection with Employee’s work for the Company, Third Party Information unless expressly authorized by an officer of the Company in writing. 
  
 5.2.4 During Employee’s employment by the Company, Employee shall not improperly use or disclose any confidential information or trade secrets, if
any, of any former employer or any other person to whom Employee has an obligation of confidentiality, and Employee shall not bring on to the premises of the Company any unpublished documents or any property belonging to any former employer or any
other person to whom Employee has an obligation of confidentiality unless consented to in writing by that former employer or person. Employee will use in the performance of Employee’s duties only information generally known and used by persons
with training and experience comparable to Employee’s own, which is common knowledge in the industry or otherwise legally in the public domain, or which is otherwise provided or developed by the Company. 
  
 5.2.5 If this Agreement is terminated for any reason, Employee shall promptly
surrender and deliver to the Company all Confidential Information. Employee will not retain any description or other document that contains or relates to any Confidential Information that Employee may produce, obtain or otherwise learn about during
employment with the Company. 
  
 5.3 Assignment of
Inventions. Employee assigns and transfers to the Company Employee’s entire right, title and interest in and to all inventions including, but not limited to, ideas, improvements, designs and discoveries (“Inventions”), whether or
not patentable and whether or not reduced to practice, made or conceived by Employee (whether made solely by Employee or jointly with others) during Employee’s employment with the Company which relate in any manner to the actual or demonstrably
anticipated business, work or research and development of the Company or its subsidiaries, or result from or are suggested by any task assigned to Employee or any work performed by Employee for or on behalf of the Company or its subsidiaries. All
Inventions are the sole property of the Company; provided, however, that this Agreement does not require assignment of an Invention which qualifies fully for protection under Section 2870 of the California Labor Code (“Section 2870”),
which provides as follows: 
  
 5.3.1 Any provision in an
employment agreement which provides that an employee shall assign or offer to assign any of Employee’s or her rights in an invention to Employee’s or her employer shall not apply to an invention that the employee developed entirely on
Employee’s or her own time and without using the employer’s equipment, suppliers, facilities or trade secrets information except for those inventions that either: 
  
 (a) relate at the time of conception or reduction to practice of the invention to the employer’s
business, or actual or demonstrably anticipated research or development of the employer; or 
  
 (b) result from any work performed by the employee for the employer. 
  
 5.3.2 To the extent a provision in an employment agreement purports to require an employee to assign an invention otherwise
excluded from being required to be assigned under Section 5.3.1, the provision is against the public policy of this state and is unenforceable. 
  

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 5.4 Disclosure Of Inventions: Patents. Copyrights and Mask Work Rights. Employee agrees that in
connection with any Invention: 
  
 5.4.1 To keep and maintain
adequate and current written records of all Inventions made by Employee (in the form of notes, sketches, drawings and other forms specified by the Company) while employed by the Company. These records shall be available to the Company and shall be
and remain the sole property of the Company at all times. Employee will disclose such Inventions promptly in writing to Employee’s immediate supervisor at the Company, with a copy to the Company President, whether or not Employee believes the
Invention is protected by Section 2870. Such disclosure shall be received in confidence by the Company. Within thirty (30) days after receipt of such disclosure, the Company shall respond to Employee specifying that the Company either (i) claims
that the Invention is an assignable invention (as defined below in Section 5.4.2), (ii) relinquishes any claim to the Invention or (iii) requires further or more detailed disclosure to assess its rights to the Invention under this Agreement. In the
case of clause (iii) above, the Company shall permit Employee time during normal business hours reasonably necessary to prepare a more detailed disclosure; and the Company shall provide an additional response as described in this Section 5.4.1
within thirty (30) days after receipt by the Company of such further or more detailed disclosure. 
  
 5.4.2 Upon request, to promptly execute a written assignment of title to the Company for any Invention required to be assigned by Section 5.3
(“assignable invention”) and Employee will preserve any such assignable invention as Confidential Information. 
  
 5.4.3 Upon request, to assist the Company or its nominee (at its expense) during and at any time subsequent to Employee’s employment in every
reasonable way to obtain for the Company’s or its nominee’s benefit, patents, copyrights, mask work rights and other statutory rights (“Statutory Rights”) for such assignable inventions in any and all countries, which inventions
shall be and remain the sole and exclusive property of the Company or its nominee whether or not patented, copyrighted or the subject of a mask work right. Employee shall execute such papers and perform such lawful acts as the Company deems
necessary to exercise all rights, title and interest in such Statutory Rights. 
  
 5.4.4 To execute and deliver to the Company or its nominee upon request and at its expense all documents, including applications for and assignments of Statutory Rights to be issued therefor, as the Company determines
are necessary or desirable to apply for and obtain Statutory Rights on such assignable inventions in any and all countries and/or to protect the interest of the Company or its nominee in Statutory Rights and to vest title thereto in the Company or
its nominee. 
  
 5.5 Return of Business Records and
Equipment. Upon termination of Employee’s employment hereunder, Employee shall promptly return to the Company (i) all documents, records, procedures, books, notebooks, notes and any other documentation or materials in any form whatsoever,
which was obtained or developed in the course of Employee’s employment with the Company including but not limited to written, audio, video or electronic, embodiment of any information pertaining to the Company including but not limited to
Confidential Information, including any and all copies of all or any portion of such documentation or material then in Employee’s possession or control regardless of whether such documentation was prepared or compiled by Employee, Company,
other employees of the Company, representatives, agents, or independent contractors and (ii) all equipment or tangible personal property entrusted to Employee by the Company. Employee acknowledges that all such documentation, copies of such
documentation, equipment, and tangible personal property are and shall at all times remain the sole and exclusive property of the Company. 
  

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 5.6 Additional Covenants Protecting the Interests of the Company. Employee agrees that at all
times during Employee’s employment hereunder, Employee shall comply with the Company’s employee manual and other policies and procedures reasonably established by the Company from time to time concerning matters such as management,
supervision, recruiting, equal employment opportunity, and sexual harassment. 
  
 5.7 Post-Employment Cooperation. 
  
 5.7.1 Employee agrees that during the period of Employee’s employment by the Company, Employee will not, without the Company’s express written consent, engage in any employment or business activity which is
competitive with, or would otherwise conflict with Employee’s employment by the Company. Employee agrees further that for the period of Employee’s employment by the Company, and for eighteen (18) months after the date of termination of
Employee’s employment by the Company, Employee will not either directly or indirectly solicit or attempt to solicit any employee, consultant or independent contractor of the Company to terminate his or her relation ship with the company to
become an employee, consultant or independent contractor to or for any other person or entity. 
  
 5.7.2 Employee agrees that, for a period of three years following Employee’s termination of employment under this Agreement, Employee shall, upon Company’s reasonable request and in good faith and with
Employee’s best efforts, subject to Employee’s reasonable availability, cooperate and assist Company in any dispute, controversy, or litigation in which Company may be involved and with respect to which Employee obtained knowledge while
employed by the Company or any of its affiliates, successors, or assigns, including, but not limited to, Employee’s participation in any court or arbitration proceedings, giving of testimony, signing of 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 Employee’s business and personal obligations at the time. The Company shall pay Employee’s
reasonable travel and incidental out-of-pocket expenses incurred in connection with any such cooperation. 
  
 5.8 Certain Definitions. For purposes of this Section 5, “Confidential Information” shall mean information and compilations of
information relating to the business and the owners of the Company and/or their affiliates provided to Employee in connection with Employee’s employment with the Company and/or any affiliate of the Company or to which Employee had access or
which Employee compiled while an Employee of the Company and/or an affiliate of the Company, including, but not limited to, information regarding any trade secrets, proprietary knowledge, operating procedures, finances, financial condition,
organization, employees, customers, clients, agents, other personnel, business activities, budgets, strategic or financial plans, objectives, marketing plans, prices and price lists, operating and training materials, data bases and analyses,
designs, formulae, test data and all other documents relating thereto or strategies of the Company; provided, however, the term “Confidential Information” as used herein shall not include information (i) which has become public, published
or is otherwise in the public domain through no fault of Employee prior to any disclosure thereof by Employee, (ii) which was known to Employee prior to Employee’s employment or affiliation with the Company, (iii) which is required to be
disclosed by statute, regulation or court order, or (iv) which is known generally to the public. As used throughout this Section 5, the term “Company” shall be deemed to include and refer to any company or person affiliated with the
Company. 
  

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 5.9 Remedies. In view of the position of confidence which Employee will enjoy with the Company and
the anticipated relationship with the clients, customers, and employees of the Company and its affiliates pursuant to Employee’s employment hereunder, and recognizing both the access to confidential financial and other information which
Employee will have pursuant to Employee’s employment, Employee expressly acknowledges that the restrictive covenants set forth in this Section 5 are reasonable and necessary in order to protect and maintain the proprietary interests and other
legitimate business interests of the Company and its affiliates. Employee further acknowledges that (i) it would be difficult to calculate damages to the Company and its affiliates from any breach of Employee’s obligations under this Section 5,
(ii) that injury to the Company and its affiliates from any such breach would be irreparable and impossible to measure, and (iii) that the remedy at law for any breach or threatened breach of this Section 5 would therefore be an inadequate remedy
and, accordingly, the Company shall, in addition to all other available remedies (including without limitation seeking such damages as it can show it and its affiliates has sustained by reason of such breach and/or the exercise of all other rights
it has under this Agreement), be entitled to injunctive and other similar equitable remedies without the necessity of showing actual damages or posting bond. 
  
 SECTION 6. REPRESENTATIONS BY EMPLOYEE. 
  
 Employee represents and warrants that Employee is free to enter into and perform each of the terms and conditions of this Agreement; and that
Employee’s execution and/or performance of all Employee’s obligations under this Agreement does not and will not violate or breach any other agreement between Employee and any other person or entity. Employee acknowledges that but for this
representation and warranty, the Company would not agree to enter into this Agreement. 
  
 SECTION 7. 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 Employee to perform services and the covenants provided by Employee hereunder are personal to Employee and have been a material consideration for the Company to enter
into this Agreement. Accordingly, Employee may not assign any of Employee’s rights or delegate any of Employee’s 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 8. NOTICES. 
  
 Notices under this
Agreement shall be sufficient only if mailed by certified or registered United States mail, return receipt requested, or personally delivered, to the parties at their addresses set forth on the signature page hereof or as amended by notice pursuant
to this subsection. Notice by mail shall be deemed received two (2) days after deposit. 
  
 SECTION 9. MISCELLANEOUS. 
  
 9.1 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 proposals, oral or written, all negotiations, conversations or
discussions between or among the parties relating to this Agreement and all past course of dealing or industry custom. Employee has not entered 
  

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 into this Agreement or employment relationship in reliance on any representations, written or oral, other than those
contained herein. This Agreement may be modified only by a writing signed by Employee and the President of Company. 
  
 9.2 Amendment. This Agreement may not be amended except by an instrument in writing duly executed by the parties hereto. 
  
 9.3 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. 
  
 9.4 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 arbitrator or the court in which the action or proceeding is brought. 
  
 9.5 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 void or unenforceable, in whole or in part, the remaining provisions will remain in full force and effect, unless the remaining
provisions are so eviscerated by such holding that they do not reflect the intent of the parties in entering into this Agreement. If any provision of this Agreement is held to be unreasonable or excessive in scope or duration, that provision will be
enforced to the maximum extent permitted by law or modified so as to render it enforceable consistent with the intent of the parties insofar as possible. 
  
 9.6 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 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. 
  
 9.7 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. 
  
 9.8 Headings. The headings of the Sections and Paragraphs of this Agreement are inserted for ease of reference only, and will have no effect in the construction or interpretation of this Agreement. 

 
 9.9 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. 
  
 9.10 Arbitration. To provide a rapid and cost effective means of dispute resolution, 
  

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 any and all disputes or controversies whether at law or in equity arising from or in connection with this Agreement or
the employment of Employee hereunder, shall, at the option of the Company or Employee, be resolved to the fullest extent permitted by law, bring to final binding and confidential arbitration in San Francisco, California, conducted by the American
Arbitration Association (“AAA”). Such arbitration shall comply with and be governed by the provisions of the Commercial Arbitration Rules of the AAA, and judgment upon the award tendered by the arbitrator(s) may be entered in any court
having jurisdiction thereof. In addition to any other remedies, including injuncture relief, which may be awarded by the arbitrator(s), attorneys’ fees shall be borne by the losing party in such proportion as the arbitrator(s) shall determine.

  

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

			
	 EMPLOYEE:
  
 /s/ Madeline Schroeder

	
	Address:
	
	[Address omitted]
	
	 
	 
	
	LeapFrog Enterprises Incorporated
		
	By:	 	 /s/ Paul Rioux

	Name:	 	 Paul Rioux

	Title:	 	  

	
	Address:
	
	 6401 Hollis Street, Suite 150
 Emeryville, CA
94608

  

 10Form of Stock Bonus Agreement

 Exhibit 10.32 
  
 LEAPFROG ENTERPRISES, INC. 
 2002 EQUITY INCENTIVE PLAN 
  
 STOCK BONUS AGREEMENT 
  
 Pursuant to the Stock Bonus Grant Notice (“Grant Notice”) and this
Stock Bonus Agreement (collectively, the “Award”), LeapFrog Enterprises, Inc. (the “Company”) has awarded you a stock bonus pursuant Section 7(a) of its 2002 Equity Incentive Plan (the “Plan”) for the number of shares
of the Company’s Class A Common Stock subject to the Award as indicated in the Grant Notice. Defined terms not explicitly defined in this Stock Bonus Agreement but defined in the Plan shall have the same definitions as in the Plan. 

 
 The details of your Award are as follows: 
  
 1. VESTING. Subject to the limitations contained
herein, your Award will vest as provided in the Grant Notice, provided that vesting will cease upon the termination of your Continuous Service. 
  
 2. NUMBER OF SHARES. The number of shares subject to your Award may be adjusted from time to time for
Capitalization Adjustments, as provided in the Plan. 
  
 3.
SECURITIES LAW COMPLIANCE. You may not be issued any shares under your Award unless the shares are either (i) then registered under the Securities Act or (ii) the Company has determined that such
issuance would be exempt from the registration requirements of the Securities Act. Your Award must also comply with other applicable laws and regulations governing the Award, and you will not receive such shares if the Company determines that such
receipt would not be in material compliance with such laws and regulations. 
  
 4. RIGHT OF REACQUISITION. 
  
 (a) To the extent provided in the Company’s bylaws, as amended from time to time, the Company shall have the right to reacquire all or any
part of the shares received pursuant to your Award (a “Reacquisition Right”). 
  
 (b) To the extent a Reacquisition Right is not provided in the Company’s bylaws, as amended from time to time, the Company shall have a Reacquisition Right as to the shares you received pursuant to your
Award that have not as yet vested in accordance with the Vesting Schedule on the Grant Notice (“Unvested Shares”) on the following terms and conditions: 
  
 (i) The Company, shall simultaneously with termination of your Continuous Service automatically reacquire for no
consideration all of the Unvested Shares, unless the Company agrees to waive its Reacquisition Right as to some or all of the Unvested Shares. Any such waiver shall be exercised by the Company by written notice to you or your representative (with a
copy to the Escrow Holder as defined below) within ninety (90) days after the termination of your Continuous Service, and the Escrow Holder may then release to you the 
  

 1. 

 number of Unvested Shares not being reacquired by the Company. If the Company does not waive its Reacquisition Right as
to all of the Unvested Shares, then upon such termination of your Continuous Service, the Escrow Holder shall transfer to the Company the number of shares the Company is reacquiring. 
  
 (ii) The shares issued under your Award shall be held in escrow pursuant to the terms of the Joint Escrow
Instructions attached to the Grant Notice as Attachment IV. You agree to execute two (2) Assignment Separate From Certificate forms (with date and number of shares blank) substantially in the form attached to the Grant Notice as Attachment III and
deliver the same, along with the certificate or certificates evidencing the shares, for use by the escrow agent pursuant to the terms of the Joint Escrow Instructions. 
  
 (iii) Subject to the provisions of your Award, you shall, during the term of your Award, exercise all rights and
privileges of a shareholder of the Company with respect to the shares deposited in escrow. You shall be deemed to be the holder of the shares for purposes of receiving any dividends which may be paid with respect to such shares and for purposes of
exercising any voting rights relating to such shares, even if some or all of such shares have not yet vested and been released from the Company’s Reacquisition Right. 
  
 (iv) If, from time to time, there is any stock dividend, stock split or other change in the character or amount of
any of the outstanding stock of the corporation the stock of which is subject to the provisions of your Award, then in such event any and all new, substituted or additional securities to which you is entitled by reason of your ownership of the
shares acquired under your Award shall be immediately subject to the Reacquisition Right with the same force and effect as the shares subject to this Reacquisition Right immediately before such event. 
  
 5. RESTRICTIVE LEGENDS. The shares
issued under your Award shall be endorsed with appropriate legends determined by the Company. 
  
 6. AWARD NOT A SERVICE CONTRACT. Your Award is not an employment or service contract, and nothing in your Award 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 on the part of the Company or an Affiliate to continue your employment. In addition, nothing in your Award shall obligate the Company or an
Affiliate, their respective shareholders, 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. 
  
 7. WITHHOLDING OBLIGATIONS. 

 
 (a) At the time your Award is made, 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 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 your Award. You hereby acknowledge that the Company may require you to reimburse it for your share of any tax liability due, and that such reimbursement obligation
shall arise immediately upon the Company’s request. 
  

 2. 

 (b) Unless the tax withholding obligations of the Company and/or any Affiliate are satisfied, the
Company shall have no obligation to issue a certificate for such shares or release such shares from any escrow provided for herein. 
  
 8. TAX CONSEQUENCES. The acquisition and vesting of the shares may have adverse tax consequences to you that may
avoided or mitigated by filing an election under Section 83(b) of the Internal Revenue Code, as amended (the “Code”). Such election must be filed within thirty (30) days after the date of your Award. YOU ACKNOWLEDGE THAT IT IS YOUR OWN
RESPONSIBILITY, AND NOT THE COMPANY’S, TO FILE A TIMELY ELECTION UNDER CODE SECTION 83(B), EVEN IF YOU REQUEST THE COMPANY TO MAKE THE FILING ON YOUR BEHALF. 
  
 9. NOTICES. Any notices provided for in your Award or the Plan shall be given in writing and shall be
deemed effectively given upon receipt or, in the case of notices delivered by the Company to you, five (5) days after deposit in the United States mail, postage prepaid, addressed to you at the last address you provided to the Company. 

 
 10. MISCELLANEOUS. 
  
 (a) The rights and obligations of the Company under your Award shall
be transferable to any one or more persons or entities, and all covenants and agreements hereunder shall inure to the benefit of, and be enforceable by the Company’s successors and assigns. Your rights and obligations under your Award may only
be assigned with the prior written consent of the Company. 
  
 (b) You agree upon request to execute any further documents or instruments necessary or desirable in the sole determination of the Company to carry out the purposes or intent of your Award. 
  
 (c) You acknowledge and agree that you have reviewed your Award in its
entirety, have had an opportunity to obtain the advice of counsel prior to executing and accepting your Award and fully understand all provisions of your Award. 
  

11. GOVERNING PLAN DOCUMENT. Your Award is subject to all the provisions of the Plan, the
provisions of which are hereby made a part of your Award, and is further subject to all interpretations, amendments, rules and regulations which may from time to time be promulgated and adopted pursuant to the Plan. In the event of any conflict
between the provisions of your Award and those of the Plan, the provisions of the Plan shall control. 
  

 3. 

 JOINT ESCROW INSTRUCTIONS 
  
 [Date] 
  
 Corporate Secretary 
 LeapFrog Enterprises, Inc.

 6401 Hollis Street, Suite 150 
 Emeryville, CA 94608-1071

  
 Dear Sir/Madam: 
  
 As Escrow Agent for both LeapFrog Enterprises, Inc., a Delaware corporation (the “Company”), and the undersigned
recipient of stock of the Company (“Recipient”), you are hereby authorized and directed to hold the documents delivered to you pursuant to the terms of that certain Stock Bonus Grant Notice (the “Grant Notice”), dated
             to which a copy of these Joint Escrow Instructions is attached as Attachment IV, and pursuant to the terms of that certain Stock Bonus Agreement (“Agreement”),
which is Attachment I to the Grant Notice, in accordance with the following instructions: 
  
 1. In the event Recipient ceases to render services to the Company or an affiliate of the Company during the vesting period set forth in the Grant Notice, the Company or its assignee will give to Recipient and
you a written notice specifying that the shares of stock shall be transferred to the Company. Recipient and the Company hereby irrevocably authorize and direct you to close the transaction contemplated by such notice in accordance with the terms of
said notice. 
  
 2. At the closing you are directed (a) to
date any stock assignments necessary for the transfer in question, (b) to fill in the number of shares being transferred, and (c) to deliver same, together with the certificate evidencing the shares of stock to be transferred, to the Company.

  
 3. Recipient irrevocably authorizes the Company to
deposit with you any certificates evidencing shares of stock to be held by you hereunder and any additions and substitutions to said shares as specified in the Grant Notice. Recipient does hereby irrevocably constitute and appoint you as
Recipient’s attorney-in-fact and agent for the term of this escrow to execute with respect to such securities and other property all documents of assignment and/or transfer and all stock certificates necessary or appropriate to make all
securities negotiable and complete any transaction herein contemplated. 
  
 4. This escrow shall terminate upon vesting of the shares or upon the earlier return of the shares to the Company. 
  
 5. If at the time of termination of this escrow you should have in your possession any documents, securities, or other property belonging to
Recipient, you shall deliver all of same to any pledgee entitled thereto or, if none, to Recipient and shall be discharged of all further obligations hereunder. 
  

 1. 

 6. Your duties hereunder may be altered, amended, modified or revoked only by a writing signed by
all of the parties hereto. 
  
 7. You shall be obligated
only for the performance of such duties as are specifically set forth herein and may rely and shall be protected in relying or refraining from acting on any instrument reasonably believed by you to be genuine and to have been signed or presented by
the proper party or parties or their assignees. You shall not be personally liable for any act you may do or omit to do hereunder as Escrow Agent or as attorney-in-fact for Recipient while acting in good faith and any act done or omitted by you
pursuant to the advice of your own attorneys shall be conclusive evidence of such good faith. 
  
 8. You are hereby expressly authorized to disregard any and all warnings given by any of the parties hereto or by any other person or corporation, excepting only orders or process of courts of law, and are
hereby expressly authorized to comply with and obey orders, judgments or decrees of any court. In case you obey or comply with any such order, judgment or decree of any court, you shall not be liable to any of the parties hereto or to any other
person, firm or corporation by reason of such compliance, notwithstanding any such order, judgment or decree being subsequently reversed, modified, annulled, set aside, vacated or found to have been entered without jurisdiction. 
  
 9. You shall not be liable in any respect on account of the identity,
authority or rights of the parties executing or delivering or purporting to execute or deliver the Grant Notice or any documents or papers deposited or called for hereunder. 
  
 10. You shall not be liable for the outlawing of any rights under any statute of limitations with respect to these
Joint Escrow Instructions or any documents deposited with you. 
  
 11. You shall be entitled to employ such legal counsel, including but not limited to Cooley Godward LLP, and other experts as you may deem necessary properly to advise you in connection with your obligations hereunder, may rely upon
the advice of such counsel, and may pay such counsel reasonable compensation therefor. 
  
 12. Your responsibilities as Escrow Agent hereunder shall terminate if you shall cease to be Secretary of the Company or if you shall resign by written notice to each party. In the event of any such
termination, the Company may appoint any officer or assistant officer of the Company as successor Escrow Agent and Recipient hereby confirms the appointment of such successor or successors as his attorney-in-fact and agent to the full extent of your
appointment. 
  
 13. If you reasonably require other or
further instruments in connection with these Joint Escrow Instructions or obligations in respect hereto, the necessary parties hereto shall join in furnishing such instruments. 
  
 14. It is understood and agreed that should any dispute arise with respect to the delivery and/or ownership or right
of possession of the securities, you may (but are not obligated to) retain in your possession without liability to anyone all or any part of said securities until such dispute shall have been settled either by mutual written agreement of the parties
concerned or by a final order, decree or judgment of a court of competent jurisdiction after the time for appeal has expired and no appeal has been perfected, but you shall be under no duty whatsoever to institute or defend any such proceedings.

  

 2. 

 15. Any notice required or permitted hereunder shall be given in writing and shall be deemed
effectively given upon personal delivery or upon deposit in any United States Post Box, by registered or certified mail with postage and fees prepaid, addressed to each of the other parties hereunto entitled at the following addresses, or at such
other addresses as a party may designate by ten (10) days’ written notice to each of the other parties hereto: 
  

			
	COMPANY:	  	LeapFrog Enterprises, Inc.
	 	  	6401 Hollis Street, Suite 150
	 	  	Emeryville, CA 94608-1071
	 	  	Attn: Vice President, Legal Affairs
		
	RECIPIENT:	  	  

  

  

  

		
	ESCROW AGENT:	  	LeapFrog Enterprises, Inc.
	 	  	6401 Hollis Street, Suite 150
	 	  	Emeryville, CA 94608-1071
	 	  	Attn: Corporate Secretary

  
 16. By signing
these Joint Escrow Instructions you become a party hereto only for the purpose of said Joint Escrow Instructions; you do not become a party to the Grant Notice. 
  

17. This instrument shall be binding upon and inure to the benefit of the parties hereto, and their respective successors and permitted assigns.
It is understood and agreed that references to “you” or “your” herein refer to the original Escrow Agent and to any and all successor Escrow Agents. It is understood and agreed that the Company may at any time or from time to
time assign its rights under the Grant Notice and these Joint Escrow Instructions in whole or in part. 
  

			
	 Very truly yours,

	
	 LEAPFROG ENTERPRISES, INC.

		
	 By:
	 	  

  

 3. 

			
	 RECIPIENT

	
	  

	 Name:
	 	  

  

	
	ESCROW AGENT:
	
	  

  

 4. 

 ASSIGNMENT SEPARATE FROM CERTIFICATE

  
 FOR VALUE
RECEIVED and pursuant to that certain Stock Bonus Grant Notice and Stock Bonus Agreement (the “Award”),
                     [Participant’s Name] hereby sells, assigns and transfers unto LeapFrog Enterprises, Inc., a Delaware corporation
(“Assignee”)                      (            ) shares of the
Class A Common Stock of the Assignee, standing in the undersigned’s name on the books of said corporation represented by Certificate No.              herewith and do hereby
irrevocably constitute and appoint                      as attorney-in-fact to transfer the said stock on the books of the within named
Company with full power of substitution in the premises. This Assignment may be used only in accordance with and subject to the terms and conditions of the Award, in connection with the reacquisition of shares of Class A Common Stock of the
Corporation issued to the undersigned pursuant to the Award, and only to the extent that such shares remain subject to the Corporation’s Reacquisition Right under the Award. 
  
 Dated:                     
  

	
	 Signature:                                     
                                        
      

	                            [Participant’s
Name], Recipient

  
 [INSTRUCTION: Please do not fill in any blanks other than the signature line. The purpose of this Assignment is to enable the Company to exercise its Reacquisition Right set forth in the Award without requiring
additional signatures on your part.]

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