Document:

EX-10.1

 Exhibit 10.1 
 

 
 AMENDMENT NO. 1 TO SECOND AMENDED AND RESTATED LOAN AGREEMENT 

This Amendment No. 1 (the “Amendment”) dated as of March 7, 2013, is between Bank of America, N.A. (the “Bank”)
and ANNIE’S INC., a Delaware corporation, formerly known as Homegrown Naturals, Inc., which is qualified to do business in the State of California as Homegrown Naturals, ANNIE’S ENTERPRISES, INC., a Vermont corporation, which is qualified
to do business in the State of California as Annie’s Naturals, ANNIE’S HOMEGROWN, INC., a Delaware corporation, and NAPA VALLEY KITCHENS, a California corporation (individually and collectively, the “Borrower”). 

RECITALS 

A. The Bank and the Borrower entered into a certain Second Amended and Restated Loan Agreement dated as of December 21, 2011
(together with any previous amendments, the “Agreement”). 
 B. The Bank and the Borrower desire to amend the
Agreement. 
 AGREEMENT 
 1. Definitions. Capitalized terms used but not defined in this Amendment shall have the meaning given to them in the Agreement. 

2. Amendments. The Agreement is hereby amended as follows: 

2.1 In Paragraph 1.1(a), the amount “Twenty Million U.S. Dollars ($20,000,000)” is changed to “Forty
Million U.S. Dollars ($40,000,000).” 
 2.2 In Paragraph 1.2, the date “August 1, 2014” is changed
to “August 1, 2016.” 
 2.3 In Paragraph 1.4(a), the amount “1.50 percentage point(s)” is
changed to “1.25 percentage point(s).” 
 2.4 In Paragraph 1.5(a), the amount “1.50 percentage
point(s)” is changed to “1.25 percentage point(s).” 
 2.5 In Paragraph 1.5(b), the amount
“1.50 percentage point(s)” is changed to “1.25 percentage point(s).” 
 2.6 Paragraph 3.1(a)
is hereby amended to read in its entirety as follows: 
 “Unused Commitment Fee. Beginning on March 7, 2013, and on
the last day of each following quarter until the expiration of the availability period, the Borrower agrees to pay a fee based on the difference between the Facility No. 1 Commitment and the amount of credit it actually uses, determined by the
weighted average of credit outstanding during the quarter ending on such payment date. The fee will be calculated and assessed quarterly, as follows: 
  

					
	 Utilization Rate
	  	Annual Percentage Rate	 
	 Less than 10%
	  	 	0.40	% 
	 Greater than or equal to 10% but less than 25%
	  	 	0.35	% 
	 Greater than or equal to 25% but less than 40%
	  	 	0.30	% 
	 Greater than or equal to 40% but less than or equal to 50%
	  	 	0.25	% 

  
 - 1 -

 If the amount of principal outstanding at the close of a quarter exceeds half of the
Facility No. 1 Commitment, then no fee is due.” 
 2.7 In Paragraph 7.8, the amount “Five Million
U.S. Dollars (U.S. $5,000,000)” is changed to “Ten Million U.S. Dollars (U.S. $10,000,000).” 

2.8 Paragraph 8.1 is hereby amended to read in its entirety as follows: 

“Use of Proceeds. 
 To use the proceeds of Facility No. 1 only for general business purposes, including acquisitions and share repurchases.” 

2.9 Paragraph 8.3 is hereby amended to read in its entirety as follows: 

“Funded Debt to Adjusted EBITDA Ratio. 

To maintain on a consolidated basis a ratio of Funded Debt to Adjusted EBITDA not exceeding 2.75:1.00. 

“Funded Debt” means all outstanding liabilities for borrowed money and other interest-bearing liabilities, including current and
long term debt, less the non-current portion of Subordinated Liabilities.” 
 “Adjusted EBITDA” means net income,
less income or plus loss from discontinued operations and extraordinary items, plus income taxes, plus interest expense, plus depreciation, depletion, and amortization, adjusted for non-cash expense for equity compensation recorded in accordance
with SFAS 123(R), goodwill impairment, non-cash asset write downs, and product recall expenses up to $5,000,000 associated with Borrower’s January 22, 2013 announced product recall. This ratio will be calculated at the end of each
reporting period for which the Bank requires financial statements, using the results of the twelve-month period ending with that reporting period. 
 “Subordinated Liabilities” means liabilities subordinated to the Borrower’s obligations to the Bank in a manner acceptable to the Bank in its sole discretion.” 

2.10 Paragraph 8.4 is hereby amended to read in its entirety as follows: 

“Net Worth. 
 To maintain net worth equal to at least Fifty Million Dollars ($50,000,000), plus thirty percent (30%) of earnings after taxes earned each quarter (if positive), beginning with the quarter ending
June 30, 2013. 
 “Net Worth” means the gross fair market value of total assets, including goodwill but excluding
all other intangibles, less total liabilities, excluding product recall expenses up to $5,000,000 associated with Borrower’s January 22, 2013 announced product recall.” 

2.11 Paragraph 8.5 is hereby amended to read in its entirety as follows: 

“Capital Expenditures. 
 Not to spend or incur obligations (including the total amount of any capital leases) to acquire fixed assets for more than Fifteen Million Dollars ($15,000,000) during the period commencing on
April 1, 2013 and ending on March 31, 2016 on a consolidated basis.” 
 2.12 Paragraph 8.6 is
hereby amended to read in its entirety as follows: 
 “Dividends and Distributions. 

  
 - 2 -

 Not to declare or pay any dividends (except dividends paid in capital stock), redemptions of
stock or membership interests, distributions and withdrawals (as applicable) to its owners. Notwithstanding the forgoing, the Borrower may declare and pay a dividend, redeem stock of membership interests, make distributions and withdrawals (as
applicable) to its owners if the Borrower is in compliance with this Loan Agreement when such dividend, redemption, distribution or withdrawal if effected and the Borrower will remain in compliance with this Loan Agreement after giving full effect
to such dividend, redemption, distribution or withdrawal.” 
 2.13 In Paragraph 8.8(e), the amount
“Five Million U.S. Dollars (U.S. $5,000,000)” is changed to “Ten Million U.S. Dollars (U.S. $10,000,000).” 
 2.14 In Paragraph 8.8(f), the amount “Five Million U.S. Dollars (U.S. $5,000,000)” is changed to “Ten Million U.S. Dollars (U.S. $10,000,000).” 

2.15 Paragraph 8.8(g) is hereby deleted in its entirety. 

2.16 In Paragraph 8.14(b), the amount “Fifteen Million U.S. Dollars (U.S. $15,000,000)” is changed to
“Thirty Million U.S. Dollars (U.S. $30,000,000).” 
 3. Representations and Warranties. When the Borrower signs
this Amendment, the Borrower represents and warrants to the Bank that: (a) there is no event which is, or with notice or lapse of time or both would be, a default under the Agreement except those events, if any, that have been disclosed in
writing to the Bank or waived in writing by the Bank, (b) the representations and warranties in the Agreement are true as of the date of this Amendment as if made on the date of this Amendment, (c) this Amendment does not conflict with any
law, agreement, or obligation by which the Borrower is bound, and (d) if the Borrower is a business entity or a trust, this Amendment is within the Borrower’s powers, has been duly authorized, and does not conflict with any of the
Borrower’s organizational papers. 
 4. Conditions. This Amendment will be effective when the Bank
receives the following items, in form and content acceptable to the Bank: 
 4.1 If the Borrower or any guarantor
is anything other than a natural person, evidence that the execution, delivery and performance by the Borrower and/or such guarantor of this Amendment and any instrument or agreement required under this Amendment have been duly authorized.

 4.2 Payment by the Borrower of all costs, expenses and attorneys’ fees (including allocated costs for
in-house legal services) incurred by the Bank in connection with this Amendment. 
 4.4 Reaffirmation of the
Amended and Restated Security Agreement. 
 5. Effect of Amendment. Except as provided in this Amendment, all of the
terms and conditions of the Agreement, including but not limited to the Dispute Resolution Provision, shall remain in full force and effect. 
 6. Counterparts. This Amendment may be executed in counterparts, each of which when so executed shall be deemed an original, but all such counterparts together shall constitute but one and the same
instrument. 
 7. FINAL AGREEMENT. BY SIGNING THIS DOCUMENT EACH PARTY REPRESENTS AND AGREES THAT:
(A) THIS DOCUMENT REPRESENTS THE FINAL AGREEMENT BETWEEN PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF, (B) THIS DOCUMENT SUPERSEDES ANY COMMITMENT LETTER, TERM SHEET OR OTHER WRITTEN OUTLINE OF TERMS AND CONDITIONS RELATING TO THE
SUBJECT MATTER HEREOF, UNLESS SUCH COMMITMENT LETTER, TERM SHEET OR OTHER WRITTEN OUTLINE OF TERMS AND CONDITIONS EXPRESSLY PROVIDES TO THE CONTRARY, (C) THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES, AND (D) THIS DOCUMENT MAY
NOT BE CONTRADICTED BY EVIDENCE OF ANY PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL 

  
 - 3 -

 
AGREEMENTS OR UNDERSTANDINGS OF THE PARTIES. 

  
 - 4 -

 This Amendment is executed as of the date stated at the beginning of this Amendment. 

 

							
		 		 	BANK OF AMERICA, N.A.
				
		 		 	By:	 	 /s/ Thomas K. McComas

		 		 	Name:	 	Thomas K. McComas
		 		 	Title:	 	Senior Vice President

							
			
		 		 	Address where notices to the Bank are to be sent:
			
		 		 	Farmington-Notice Desk
		 		 	CT2-515-BB-03
		 		 	70 Batterson Park Road
		 		 	Farmington, CT 06032
				
		 		 	Telephone:	 	  

		 		 	Facsimile:	 	  

							
			
	Address where notices to the Borrower are to be sent:	 		 	 ANNIE’S, INC.,
 a Delaware corporation

	ANNIE’S, INC.	 		 		 	
	1610 Fifth Street	 		 		 	
	Berkeley, CA 94710	 		 	By:	 	 /s/ Kelly J. Kennedy

	Phone:510-558-7500	 		 	Name:	 	 Kelly J. Kennedy

	Fax:    510-558-6072	 		 	Title:	 	 Chief Financial Officer

			
	Address where notices to the Borrower are to be sent:	 		 	 ANNIE’S ENTERPRISES, INC.,
 a Vermont corporation

				
	ANNIE’S ENTERPRISES, INC.,	 		 		 	
	c/o ANNIE’S, INC.	 		 		 	
	1610 Fifth Street	 		 	By:	 	 /s/ Kelly J. Kennedy

	Berkeley, CA 94710	 		 	Name:	 	 Kelly J. Kennedy

	Phone: 510-558-7500	 		 	Title:	 	 Treasurer

	Fax:     510-558-6072	 		 		 	
			
	Address where notices to the Borrower are to be sent:	 		 	 ANNIE’S HOMEGROWN, INC.,
 a Delaware corporation

				
	ANNIE’S HOMEGROWN, INC.	 		 		 	
	c/o ANNIE’S, INC.	 		 		 	
	1610 Fifth Street	 		 		 	
	Berkeley, CA 94710	 		 	By:	 	 /s/ Kelly J. Kennedy

	Phone: 510-558-7500	 		 	Name:	 	 Kelly J. Kennedy

	Fax:     510-558-6072	 		 	Title:	 	 Treasurer

 [SIGNATURES CONTINUE ON FOLLOWING PAGE] 

  
 - 5 -

							
	Address where notices to the Borrower are to be sent:	 		 	 NAPA VALLEY KITCHENS,
 a California corporation

				
	NAPA VALLEY KITCHENS	 		 		 	
	c/o ANNIE’S, INC.	 		 		 	
	1610 Fifth Street	 		 		 	
	Berkeley, CA 94710	 		 	By:	 	 /s/ Kelly J. Kennedy

	Phone: 510-558-7500	 		 	Name:	 	 Kelly J. Kennedy

	Fax:     510-558-6072	 		 	Title:	 	 Treasurer

  
 - 6 -EX-10.2

 Exhibit 10.2 
 REAFFIRMATION 
 OF 

AMENDED AND RESTATED SECURITY AGREEMENT 
 In order to induce Bank of America, N.A. (the “Bank”) to enter into that certain Amendment No. 1 to the Second Amended and Restated Loan Agreement between the Bank and ANNIE’S, INC., a
Delaware corporation, formerly known as Homegrown Naturals, Inc., which is qualified to do business in the State of California as Homegrown Naturals, ANNIE’S ENTERPRISES, INC., a Vermont corporation, ANNIE’S HOMEGROWN, INC., a Delaware
corporation, and NAPA VALLEY KITCHENS, a California corporation (individually and collectively, the “Borrower”) dated as of March 7, 2013 (the “Agreement”), each of the undersigned (i) agrees that nothing contained in the
Agreement shall diminish, alter, amend or effect the obligations of the undersigned under that certain Amended and Restated Security Agreement, dated August 25, 2010 (the “Security Agreement”) granting to the Bank a security interest
in certain assets of the Borrower to secure all Indebtedness (as defined in the Security Agreement), or the Bank’s security interest in certain Collateral (as defined in the Security Agreement); (ii) agrees that the Security Agreement and
the Bank’s security interest in such Collateral secures the Borrower’s obligations under the Agreement; and (iii) confirms that the Security Agreement and the security interest in such Collateral remains in full force and effect and
reaffirms the same. 
 [SIGNATURE PAGES FOLLOW] 

 IN WITNESS WHEREOF, the undersigned have executed this Reaffirmation of Amended and Restated
Security Agreement effective as of the date first set forth above. 
  

							
		 		 	BANK OF AMERICA, N.A.
				
		 		 	By:	 	 /s/ Thomas K. McComas

				
		 		 	Name:	 	Thomas K. McComas
				
		 		 	Title:	 	Senior Vice President
			
		 		 	Farmington-Notice Desk
			
		 		 	CT2-515-BB-03
			
		 		 	70 Batterson Park Road
			
		 		 	Farmington, CT 06032
		
	Borrower’s Location and address for notices (principal residence, if the Borrower is an individual; chief executive office, if the Borrower is not an
individual):	 	ANNIES, INC., a Delaware corporation formerly known as Homegrown Naturals, Inc., which is qualified to do business in the State of California as Homegrown
Naturals
				
	ANNIE’S, INC.	 		 		 	
				
	1610 Fifth Street	 		 		 	
				
	Berkeley, CA 94710	 		 		 	

  
 2 

							
		 		 	By:	 	 /s/ Kelly J. Kennedy

	Borrower’s state of incorporation or organization (if Borrower is a corporation, partnership, limited liability company or other registered entity):	 	Name:	 	 Kelly J. Kennedy

				
	Delaware	 		 	Title:	 	 Chief Financial Officer

			
	Borrower’s Location and address for notices (principal residence, if the Borrower is an individual; chief executive office, if the Borrower is not an
individual):	 		 	 ANNIE’S ENTERPRISES, INC.,

a Vermont corporation

				
	ANNIE’S ENTERPRISES, INC.	 		 		 	
				
	c/o ANNIE’S, INC.	 		 		 	
				
	1610 Fifth Street	 		 		 	
				
	Berkeley, CA 94710	 		 	By:	 	 /s/ Kelly J. Kennedy

				
		 		 	Name:	 	 Kelly J. Kennedy

			
	Borrower’s state of incorporation or organization (if Borrower is a corporation, partnership, limited liability company or other registered entity):	 	Title:	 	 Treasurer

				
	Vermont	 		 		 	

 [SIGNATURES CONTINUE ON FOLLOWING PAGE] 

IN WITNESS WHEREOF, the undersigned have executed this Reaffirmation of Amended and Restated Security Agreement effective as of the date
first set forth above. 

  
 3 

							
		 		 	 ANNIE’S HOMEGROWN, INC.,
 a Delaware corporation

			
	Borrower’s Location and address for notices (principal residence, if the Borrower is an individual; chief executive office, if the Borrower is not an
individual):	 		 	
				
	ANNIE’S HOMEGROWN, INC.	 		 		 	
				
	c/o ANNIE’S, INC.	 		 	By:	 	 /s/ Kelly J. Kennedy

				
	1610 Fifth Street	 		 		 	
				
	Berkeley, CA 94710	 		 	Name:	 	 Kelly J. Kennedy

		 		 		 	
	Borrower’s state of incorporation or organization (if Borrower is a corporation, partnership, limited liability company or other registered entity):	 	Title:	 	 Treasurer

				
	Delaware	 		 		 	

  
 4 

							
	Borrower’s Location and address for notices (principal residence, if the Borrower is an individual; chief executive office, if the Borrower is not an
individual):	 	 NAPA VALLEY KITCHENS,
 a California corporation

				
	NAPA VALLEY KITCHENS	 		 		 	
				
	c/o ANNIE’S, INC.	 		 		 	
				
	1610 Fifth Street	 		 		 	
				
	Berkeley, CA 94710	 		 	By:	 	 /s/ Kelly J. Kennedy

				
		 		 	Name:	 	 Kelly J. Kennedy

				
	Borrower’s state of incorporation or organization (if Borrower is a corporation, partnership, limited liability company or other registered entity):	 		 	Title:	 	 Treasurer

				
	California	 		 		 	

  
 5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00214-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00214-of-00352.parquet"}]]