Document:

Form of Amended and Restated 2004 Stock Option Plan Five-Year Grant Agreement

 Exhibit 10.4 
 ANNIE’S, INC. 
 1610 Fifth Street 

Berkeley, California 94710 
  

 

                     ,
20     
 «Address» 
 Dear «Name»: 
 I am pleased to advise you that Annie’s, Inc. (the
“Company”) has awarded you, pursuant to the Annie’s, Inc. Amended and Restated 2004 Stock Option Plan (the “Plan”), a non-qualified option to purchase «Shares» shares of the common stock, $0.001 par
value per share, of the Company, at an exercise price per share of $«Exercise_price», for a total exercise price of «Words» Dollars ($«Price») (the “Stock Option”). This Stock Option is granted to
you by the Company to encourage your efforts in helping the Company grow and succeed. Regardless of your decision whether or not to exercise your Stock Option, you are requested to keep the number of shares for which this Stock Option is exercisable
strictly confidential. Terms not defined herein shall have the meanings ascribed to them in the Plan. 
 This letter confirms a
Stock Option granted to you pursuant to the terms of your employment offer letter. The exercise price is the fair market value of the Company’s Common Stock on your hire date, as determined by the Company’s Board of Directors, and the
vesting schedule relates to your hire date. You agree to accept this Stock Option in full and complete satisfaction of the stock option terms in your employment offer letter and hereby release the Company, its officers, directors and stockholders
from any and all claims, damages and liability of any kind arising from the stock option terms in your employment offer letter. 

The following terms and conditions are applicable with respect to this Stock Option, and your signature below shall constitute your
acknowledgment and acceptance of the same: 
 1. This Stock Option shall not be transferable, except pursuant to a will or the
laws of descent and distribution, or as otherwise permitted at the discretion of the Compensation Committee of the Board of Directors of the Company (the “Committee”) in accordance with the Plan. 

2. The price at which this Stock Option may be exercised shall be $«Exercise_price» per share. 

3. This Stock Option is exercisable as set forth in paragraph 10 of this grant letter and, subject thereto, may be exercised at any time
on or before                      , 20     (the “Stock Option Exercise Period”), provided, however, that:

 (a) Should your employment with the Company (or a parent or subsidiary of the Company) terminate for any reason other than
death, disability (as defined in Section 22(e)(3) of the Internal Revenue Code of 1986, as amended (the “Code”)), or termination for cause by the Company, you will have three (3) months from the effective date of your
termination to exercise the vested portion of your Stock Option, but in any event no later than the date of expiration of the Stock Option Exercise Period. 

 Stock Option Grant Letter 
                      , 20     

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 (b)
Should your employment with the Company (or a parent or subsidiary of the Company) be terminated for Cause (as defined below) by the Company before any Change in Control (as defined in Section 7 of the Plan) of the Company, any Stock Option
held by you, whether vested or unvested, shall terminate on the effective date of your termination. “Cause” means (i) failure to perform your employment-related duties, (ii) engagement in any misconduct including, without
limitation, acting or omitting to act in a way that, in the judgment of the CEO, is detrimental to the interests of the Company, (iii) failure to comply with all Company policies, (iv) commitment of any unlawful act including, without
limitation, the violation of any law, rule, regulation or standard of ethical conduct, (v) acts of personal dishonesty or breaches of fiduciary duty or (vi) breach of the terms of any written agreement or covenant with the Company or its
affiliates including, without limitation, your Proprietary Information and Confidentiality Agreement with the Company. 
 (c)
Should your service as an employee of the Company (or a parent or subsidiary of the Company) terminate on account of your death or disability (as defined in Section 22(e)(3) of the Code), the vested portion of your Stock Option shall remain
exercisable for one (1) year from the date of your death or termination due to disability, as the case may be, but in any event no later than the date of expiration of the Stock Option Exercise Period. 

4. As a condition precedent to the exercise of your Stock Option, you agree to execute and become a party to the Stockholders’
Agreement that was assumed by the Company and amended and restated as of July 1, 2004 and as it may be amended from time to time (the “Stockholders’ Agreement”), the current form of which is attached hereto as Exhibit A.
Pursuant to the Stockholders’ Agreement, among other provisions, the shares of Common Stock underlying this Stock Option shall be subject to restrictions on transfer. 
 5. The purchase price for shares of Common Stock purchased upon exercise of rights granted herein shall be paid partly or completely in cash, by check made payable to the Company, or, if approved in the
discretion of the Committee, by tendering shares of the Company’s Common Stock if those shares are valued at Fair Market Value as of the day of exercise, or in any combination thereof, as determined by the Committee. 

6. The shares of Common Stock underlying this Stock Option and the exercise price therefor shall be appropriately adjusted by the
Committee from time to time for declaration of stock dividends, recapitalizations, stock splits, combinations or exchanges of such shares, mergers, reorganizations or consolidations of the Company and other corporate events as set forth in the Plan.

 7. In the event of a Change in Control of the Company, as defined in Section 7 of the Plan, the Committee may, in its
discretion, make certain determinations with respect to, or adjustments to, your Stock Option as set forth in Section 8 of the Plan. 
 8. Upon a Change in Control of the Company as defined in Section 7 of the Plan, the unvested portions of this Stock Option that would otherwise vest on the 4th and 5th anniversaries of the grant, shall immediately vest. 

9. In consideration for the grant of this Stock Option and the accelerated vesting provision in Section 8, you hereby agree in the
event of such Change in Control, the payment of consideration for stock issuable upon exercise of the portion of this Stock Option accelerated by 

 Stock Option Grant Letter 
                      , 20     

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virtue of Section 8, or consideration paid in repurchase of such vested portion of this Stock Option, shall be placed in an escrow account and shall be released to you six (6) months
following such Change in Control provided you remain continuously employed by the Company until then. If during such six-month period, your employment is terminated by the Company for any reason or no reason (other than for Cause), or if you die,
your escrowed consideration shall be released to you. If during such six-month period you terminate your employment, your escrowed consideration shall not be released to you, but shall instead be released pro rata to the stockholders of the Company
immediately prior to the Change in Control. 
 10. Unless vesting is accelerated pursuant to the provisions of Section 8
hereof, this Stock Option shall cumulatively vest as follows, so long as you continuously provide your services to the Company in accordance with the personnel or other applicable policies of the Company: 

 

			
	Date	  	Cumulative Number of
Shares Issuable Upon
Exercise
	
    /    /     –     
/    /    
	  	
	
    /    /     –     
/    /    
	  	
	
    /    /     –     
/    /    
	  	
	
    /    /     –     
/    /    
	  	
	
    /    /     –     
/    /    
	  	
	
    /    /     –     
/    /    
	  	

 11. By your acceptance of this Stock Option, you acknowledge and agree that you are acquiring the Stock
Option and any shares upon exercise of the Stock Option for your own account and not with a view to or for sale in connection with any distribution of the securities. 
 It is expressly acknowledged that the Company’s intention is that this Stock Option qualifies for fixed accounting treatment. In the event of any ambiguity in the provisions of this Stock Option
grant, they shall be construed and interpreted in a manner that will afford fixed accounting treatment. If any provision is found to be inconsistent with such accounting treatment, to the maximum extent permissible in the applicable jurisdiction,
such provision shall be deemed amended to qualify for fixed accounting treatment or, if it cannot be so amended without materially altering the intention of the parties, it shall be stricken and the remainder of this Stock Option grant shall remain
in full force and effect. 
 This opportunity to purchase Common Stock in the Company is being offered because of the
Company’s desire to reward continuing loyal service to the Company. Exercising this Stock Option may not be a prudent decision for you. Therefore, we urge you to review this opportunity carefully with your tax and financial advisors and make a
decision to exercise this Stock Option only if your personal financial situation makes this a wise choice. 

 Stock Option Grant Letter 
                      , 20     

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When you wish to exercise this Stock Option, please refer to the provisions of this grant letter and the Plan and then correspond in
writing with the Chief Financial Officer of the Company, as designee of the Committee. Further, please indicate your acknowledgment and acceptance of this Stock Option by signing the enclosed copy of this grant letter and returning it to the
undersigned. 
 Very truly yours, 

ANNIE’S, INC. 
 John Foraker 
 Chief Executive Officer 

 

	
	Acknowledged and Agreed:
	
	  
	«Signature»Stock Option Purchase Agreement, dated as of 4/27/2011

 Exhibit 10.7 
 STOCK OPTION PURCHASE AGREEMENT 
 This STOCK OPTION PURCHASE AGREEMENT
(this “Agreement”), dated as of April 27, 2011, is by and between Annie’s, Inc., a Delaware corporation (the “Company”), and John Foraker, an individual residing at 854 A Street, Davis, CA 95616 (the
“Seller”). The Company and the Seller are referred to collectively as the “Parties.” 

WHEREAS, on April 27, 2011, the Company’s Compensation Committee and Board of Directors, with John Foraker abstaining,
authorized the Company to purchase certain options to purchase common stock of the Company, $.001 par value per share (“Common Stock”), from the Seller pursuant to Section 5(j) of the Company’s Amended and Restated 2004
Stock Option Plan (the “Plan”) pursuant to the terms of this Agreement; and 
 WHEREAS, the Seller is
the holder of an certain option to purchase up to 47,562 shares of Common Stock at an exercise price per share of $6.11 (the “2002 Option”), pursuant to a grant letter executed by the Company and dated November 20, 2002, and
desires to transfer to the Company pursuant to Section 5(j) of the Plan the right to purchase 33,562 shares of the 2002 Option (the “Tendered Option”), in lieu of the exercise of such Tendered Option, in exchange for the
Purchase Price, as set forth below. 
 NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the Parties agree as follows. 
 Section 1. Purchase and Sale. 

(a) Seller agrees to tender, transfer and sell to the Company as of the Closing Date, pursuant to Section 5(j) of the Plan,
the Tendered Option for the aggregate purchase price of $499,738.18 (the “Purchase Price”), which Purchase Price represents the product of (i) the difference between $21.00 (“Current Value”), which the
Company’s Board of Directors has determined to be the fair market value of a share of Common Stock as of the date of this Agreement, and the applicable 2002 Option exercise price of $6.11, and (ii) 33,562, and the Company agrees to
purchase such Tendered Option. The Purchase Price, less applicable tax withholdings, shall be payable by wire transfer or by check, at the Company’s discretion. 
 (b) The closing (the “Closing”) of the transaction contemplated by this Agreement shall occur no later than Monday, May 2, 2011 (the “Closing Date”), unless
the Parties otherwise agree. 
 (c) Seller and the Company shall execute an amendment to the grant letter for the 2002
Option reflecting the cancellation of the Tendered Option. 
 (d) Seller hereby irrevocably waives, releases and
discharges the Company and its affiliates from any and all liabilities and obligations to Seller of any kind or nature whatsoever that have arisen or may arise out of Seller’s beneficial ownership of the Tendered Option, in each case whether
absolute or contingent, liquidated or unliquidated, known or unknown, and whether arising under any agreement or understanding (other than this Agreement) or otherwise at law or equity, and Seller agrees that it shall not seek to recover any amounts
in connection therewith or thereunder from the Company or any of the Company’s affiliates. 
 Section 2. Representations and
Warranties of the Seller. The Seller makes the following representations and warranties as of the Closing Date. 

(a) Authorization of Transaction. The Seller has full power and authority to execute and deliver this Agreement and to perform its
obligations hereunder. This Agreement 

 
constitutes the valid and legally binding obligation of the Seller, enforceable in accordance with its terms and conditions. 

(b) Tendered Option Free of Encumbrances. The Seller holds of record and owns beneficially the Tendered Option, free and clear of
any restrictions on transfer (other than any restrictions under the Securities Act of 1933, as amended, and state securities laws), Taxes, Security Interests, options, warrants, purchase rights, contracts, commitments, equities, claims, and demands.
For the purpose of this Section 2(c), (i) the term “Taxes” means any federal, state, local, or foreign income, gross receipts, license, payroll, employment, excise, severance, stamp, occupation, premium, windfall profits,
customs duties, capital stock, franchise, profits, withholding, social security (or similar), unemployment, disability, real property, personal property, sales, use, transfer, registration, value added, alternative or add-on minimum, estimated, or
other tax of any kind whatsoever, including any interest, penalty, or addition thereto, whether disputed or not; and (ii) “Security Interests” means any mortgage, pledge, lien, encumbrance, charge, or other security interest.

 (c) No Representations. The Seller has received, carefully read and is familiar with this Agreement. The Seller has
received no representations or warranties from the Company, its employees, agents or attorneys in making its decision to enter into this Agreement. 
 (d) Business Knowledge. The Seller understands the business in which the Company is engaged and has such knowledge and experience in business and financial matters that the Seller is capable of
evaluating the merits and risks of tendering the Tendered Option. By tendering the Tendered Option, the Seller understands and agrees that it shall forego any future appreciation in the value of the Tendered Option that would have occurred on or
after the Closing Date if the Seller had retained, and not tendered, such option to purchase Common Stock. The Seller understands that the transfer and sale of the Tendered Option may affect the value of Common Stock. 

Section 3. Seller Acknowledgements. The Seller, for himself and his heirs, personal representatives, successors and assigns,
acknowledges and is aware of the following: 
 (a) No federal or state agency has approved, disapproved or made any
finding or determination as to the fairness, nor any recommendation or endorsement of the merits of the transactions contemplated herein. 
 (b) There is no public market for the Company’s securities. The fair market value of the Common Stock has been determined by the Company’s Board of Directors. The Company has not obtained
an independent appraisal of the value of the Company’s Common Stock or Tendered Option or obtained an opinion on the fairness of the Purchase Price for the Tendered Option. 

(c) The Company has not provided any investment, accounting, legal, or tax advice to the Seller. The Seller, in tendering the
Tendered Option, is relying, if at all, solely upon the advice of the Seller’s personal legal, financial or tax advisers with respect to the sale of the Tendered Option. Neither the Company nor any of its officers, directors or employees has
made any representation regarding the legal, accounting or tax consequences of selling the Tendered Option to the Company nor has the Company or any of its representatives encouraged or discouraged the Seller from doing so. 

(d) The Seller acknowledges that the fair market value of the Company’s Common Stock may change. The Company may engage in a
transaction at any time that may affect the value of the Company’s Common Stock. The Seller bears the sole risk that a future transaction 

  
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could increase the value of the Company’s Common Stock and therefore the value of the Tendered Option. 
 (e) The Seller is not entitled to cancel, terminate or revoke this Agreement. 
 (f) The Seller recognizes that the offer by the Company to purchase the Tendered Option was based upon the Seller’s representations, warranties, and acknowledgments set forth in this
Agreement, understands the meaning of the representations made by the Seller in this Agreement, and hereby agrees to indemnify the Company and all of its officers, directors, employees, and agents and all persons deemed to be in control of the
foregoing, and to hold such persons harmless, from and against any and all loss, damage, liability or expense (including costs and reasonable attorney’s fees) to which they may be put or which they may incur by reason of, or in connection with:
(i) any misstatement, misrepresentation, or omission made by or on behalf of the Seller with respect to the matters about which representations and warranties are made or required by the terms of this Agreement; or (ii) any breach of any
such representations or warranties or any failure to fulfill any covenants or agreements set forth herein. 
 (g) The
Company’s Compensation Committee will determine, in its sole discretion, all questions as to the validity, form, eligibility and acceptance for transfer of any Tendered Option, and its determination will be final and binding to the fullest
extent permitted by law. 
 Section 4. Representations and Warranties of the Company. The Company makes the following
representations and warranties as of the Closing Date. 
 (a) Organization of the Company. The Company is a corporation
duly organized, validly existing, and in good standing under the laws of State of Delaware. 
 (b) Authorization of
Transaction. The Company has full power and authority to execute and deliver this Agreement and to perform its obligations hereunder. This Agreement constitutes the valid and legally binding obligation of the Company, enforceable in accordance
with its terms and conditions. The Company need not give any further notice to, make any filing with, or obtain any further authorization, consent, or approval of any government or governmental agency in order to consummate the transactions
contemplated by this Agreement. 
 Section 5. Entire Agreement. This Agreement constitutes the entire agreement among the
Parties and supersedes any prior understandings, agreements, or representations by or among the Parties, written or oral, to the extent they relate in any way to the subject matter hereof. 
 Section 6. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together will constitute one and the same
instrument. 
 Section 7. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the
State of Delaware without giving effect to any choice or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of
Delaware. 

  
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 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written
above. 
  

							
	COMPANY:	 		 	SELLER:
			
	ANNIE’S, INC.	 		 	
				
	By:	 	     /s/ Brian T. Murphy
	 		 	             /s/ John
Foraker

		 	 Brian Murphy, Chairman

Compensation Committee
	 		 	John Foraker

  
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