Opinion ID: 621509
Heading Depth: 4
Heading Rank: 1

Heading: The LeapFrog Contract

Text: In May 2004, Hornsby suggested that PGCS establish a summer program for kindergarten students and use LeapFrog products for the program. PGCS's instructional technology chief contacted LeapFrog's Maryland sales representative, Debora Adam, and requested a proposal for the summer program. Adam sent PGCS a written proposal for LeapFrog products worth approximately $67,994. PGCS did not act on the proposal. On June 2, 2004, Hornsby held an executive council meeting to discuss using one million dollars of unspent funds toward purchasing LeapFrog products for the school district. The estimated cost of installing LeapFrog products in 216 classrooms was $938,746.80. Wesley Watts, the chief information officer for PGCS, forwarded the estimate to Hornsby and told Hornsby that he preferred to have Eugene Thornton, the director of purchasing for PGCS, speak with LeapFrog regarding the purchase. Hornsby e-mailed Watts indicating that he could get the same result for far less money. The following day, Hornsby met with his then-girlfriend Sienna Owens, who was a LeapFrog sales representative, and discussed PGCS's interest in purchasing LeapFrog products. Although Owens's sales territory was exclusively in the state of Virginia, she agreed to inquire about the purchase of the LeapFrog products for PGCS's 216 classrooms for a cost of around $500,000. On June 8, Owens e-mailed Hornsby with a proposal of the costs for the products. In turn, Hornsby provided Thornton with the substance of Owens's e-mails but deleted all references to Owens. The next day, Owens e-mailed Bill Davis, LeapFrog's director of sales for the northeast region, a final copy of the PGCS proposal. Because Adam was the Maryland sales representative and typically would receive the commission for the PGCS sale, Owens asked Davis for Adam's most recent total in sales so that she could compute a commission share structure between herself and Adam. On June 10, 2004, Owens e-mailed Hornsby, requesting that he call Davis to discuss the purchase order. That same day, Hornsby spoke with Davis and agreed to the purchase order; he further told Davis that Owens had done a good job in positioning and selling LeapFrog products to PGCS. Later, PGCS issued a purchase order to LeapFrog and paid the company $956,280 for the products. During this time, Adam and Owens agreed to split the commission from the PGCS contract. Owens's share of the commission amounted to $20,000. Having received her share, Owens testified that she gave Hornsby $10,000 [a]s a thank you for helping me with this deal and for helping me. It was the first time I had received a significant commission in connection with the help that he had given me, so it was a thank you gesture. J.A. 1691.