Employee Benefit Plan

12 Months Ended

Dec. 31, 2011

Employee Benefit Plan

12. Employee Benefit Plan

LeapFrog sponsors a defined contribution plan under Section 401(k) of the Internal Revenue Code. The 401(k) plan provides that employees may defer up to 100% of their annual compensation, not to exceed the Internal Revenue Service (“IRS”) maximum contribution limit. In 2009, LeapFrog matched 50% of employee contributions up to the lesser of $2 or 6% of the participant’s compensation per plan year, which vests over three years. During 2009, the Company recorded total compensation expense of $578, related to the defined contribution plan. The Company discontinued its matching program in 2010 and therefore did not incur any related compensation expense in 2010 and 2011.