On May 1, 2006, 4Kids Entertainment, Inc. (4Kids) filed a proxy statement with the Securities and Exchange Commission relating to
its 2006 Annual Meeting of Stockholders to be held on May 25, 2006. The proxy statement included a proposal to approve the
4Kids 2006 Long-Term Incentive Compensation Plan (the Plan).
In awarding stock-based compensation, 4Kids supports appropriate steps to control its equity burn rate. To calculate 4Kids equity
burn rate percentage, the sum of the total number of shares represented by stock options granted in a fiscal year, plus two times the
total number of shares of restricted stock or other stock awards awarded in that year, is divided by the gross number of shares
outstanding at the end of that year.
In connection with the Plan, 4Kids commits to maintain an average annual equity burn rate over the next three fiscal years
(2006-2008) not exceeding 3.38% per year.
to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused
this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: May 18, 2006
4 KIDS ENTERTAINMENT, INC.
BY: /s/ Bruce R. Foster
Bruce R. Foster Executive Vice President and Chief Financial Officer
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