Document:

EX-10(y)

 Exhibit 10(y) 
 SETTLEMENT AND LICENSE AGREEMENT 
 This SETTLEMENT AND LICENSE AGREEMENT
(“Agreement”), which is made as of December 22, 2011 (the “Effective Date”), is by and between Carl Zeiss Meditec AG, a company having a place of business at Göschwitzer Str. 51-52 07745 Jena, Germany, Carl Zeiss
Meditec, Inc., 5160 Hacienda Drive, Dublin, CA 94568 (collectively, “Zeiss”) and iCAD, Inc., 98 Spit Brook Road, Suite 100, Nashua, NH 03062 and Xoft, Inc., a Delaware corporation (collectively, “iCAD”). 

RECITALS 
  

	A.	 Zeiss has accused iCAD of infringing of U.S. Patent Nos. 6,421,416; 5,566,221; 5,621,780; and 6,285,735 in an action pending in U.S. District Court
for the District of Delaware, designated C.A. No. 10-308-LPS-MPT (“the Action”). 

  

	B.	 The parties desire to dismiss the Action and completely resolve their disputes concerning the Action according to the terms and conditions and the
warranties and representations below. 

 NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows: 
 AGREEMENT 

 

	1.	 “Licensed Patents” shall mean U.S. Patent Nos. 6,421,416; 5,566,221; 5,621,780; and 6,285,735. 

 

	2.	 “Licensed Products” shall mean any iCAD product that (a) when manufactured, used, sold, offered for sale, rented,
leased or imported in or into the U.S. would infringe at least one claim of aLicensed Patent, which has not expired, and (b) either (i) had 510(k) approval in U.S. before the Effective Date, including but not limited to the Axxent X-Ray
Source, the Axxent Controller, the Axxent Balloon Applicator, the Axxent Vaginal Applicator, and the Axxent Surface Applicator, or (ii) is not sold or offered for sale in the U.S. prior to January 1, 2016. If iCAD desires to develop,
manufacture, use, sell, offer for sale, rent, lease or import in or into the U.S. a product that is not a Licensed Product and that (a) when manufactured, used, sold, offered for sale, rented, leased or imported in or into the U.S. would
infringe at least one claim of aLicensed Patent, which has not expired, and (b) either (i) requires a new 510(k) approval or (ii) is not intended for human medical use, then iCAD shall so notify Zeiss and provide Zeiss with
documentation sufficient to evaluate the structure, function, and operation of such product, and the parties will discuss whether to include such product within the scope of Licensed Products, and the terms and conditions for doing so, provided,
however, that Zeiss is not required to agree to include such product within the scope of Licensed Products. 

  

	3.	 License. Zeiss hereby grants to iCAD an irrevocable, nonexclusive, non-assignable (except as set forth in Section 8.6),
non-sublicenseable license under the Licensed Patents to make, use, sell, offer for sale, rent, lease or import, in each case only in or into the U.S., Licensed Products, and to include Licensed Products in supply and service contracts.

	4.	 Dismissal. The parties shall dismiss, with prejudice, the Action by filing on or before December 30, 2011, Stipulations of
Dismissal (With Prejudice). Each party is to bear its own costs and fees in connection with the Action. 

  

	5.	 Releases And Covenants Not To Sue. 

iCAD and its affiliated entities hereby voluntarily and irrevocably release Zeiss and its predecessors, successors,
assigns, attorneys, insurers, agents, subcontractors, officers, directors, shareholders, employees, subsidiaries, customers, licensees, distributors, end users, and affiliates of and from, and covenant not to sue such entities for, any and all
rights, claims, debts, liabilities, demands, obligations, promises, damages, causes of action and claims for relief of any kind, manner, nature and description, known or unknown, which iCAD has, may have had, might have asserted, may now have or
assert, or may hereafter have or assert against concerning the Licensed Patents and/or the Action. 
 iCAD and
its affiliated entities further hereby represent and warrant that all previous shareholders of Xoft, Inc., voluntarily and irrevocably release Zeiss and its predecessors, successors, assigns, attorneys, insurers, agents, subcontractors, officers,
directors, shareholders, employees, subsidiaries, customers, licensees, distributors, end users, and affiliates of and from, and covenant not to sue such entities for, any and all rights, claims, debts, liabilities, demands, obligations, promises,
damages, causes of action and claims for relief of any kind, manner, nature and description, known or unknown, which such shareholders have, may have had, might have asserted, may now have or assert, or may hereafter have or assert against
concerning the Licensed Patents and/or the Action, and iCAD further agrees to indemnify such entities against all such claims. 
 Upon receipt of all royalties due under this Agreement, Zeiss voluntarily and irrevocably releases iCAD and its predecessors, successors, assigns, attorneys, insurers, agents, subcontractors, officers,
directors, shareholders, employees, subsidiaries, and affiliates of and from, and covenants not to sue such entities for, any and all rights, claims, debts, liabilities, demands, obligations, promises, damages, causes of action and claims for relief
of any kind, manner, nature and description, known or unknown, which Zeiss has, may have had, might have asserted, may now have or assert, or may hereafter have or assert in connection with the Licensed Patents and/or the Action. 

Zeiss and iCAD each expressly waive any statute, legal doctrine, or other similar limitation upon the effect of general
releases, including without limitation, California Civil Code Section § 1542, which states as follows: 

“A GENERAL RELEASE DOES NOT EXTEND TO THE CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR
AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.” 
  

	6.	 Royalties. In full settlement of all claims of Zeiss against ICAD in the Action, and in consideration of the licenses, releases, and
waivers in this Agreement, iCAD agrees to pay Zeiss the total sum of two million five hundred thousand U.S. dollars ($2,500,000), on the following payment schedule: 

January 31, 2012: Two hundred fifty thousand U.S. dollars ($250,000) 

April 30, 2012: Two hundred fifty thousand U.S. dollars ($250,000) 

July 30, 2012: Two hundred fifty thousand U.S. dollars ($250,000) 

September 30, 2012: Two hundred fifty thousand U.S. dollars ($250,000) 

June 30, 2013: Five hundred thousand U.S. dollars ($500,000) 

June 30, 2015: Five hundred thousand U.S. dollars ($500,000) 

June 30, 2017: Five hundred thousand U.S. dollars ($500,000) 

 Payments shall be by wire transfer into the following account: 

Carl Zeiss Meditec AG 
 Deutsche Bank Jena 
 Bank Identification Code: 82070000 

Account No.: 624536900 
 IBAN: DE 90 8207 0000 0624 5369 00 
 SWIFT: DEUTDE8EXXX 

 

	7.	 Term. This Agreement shall terminate (a) immediately if iCAD materially breaches the Agreement; (b) immediately if iCAD or
affiliated company or person or previous stockholder of Xoft, Inc. either (i) challenges or assists or abets the challenge to patentability, validity, or enforceability of any Licensed Patent or (ii) files any suit against Zeiss or any
affiliated Zeiss entity related to any Licensed Patent; (c) upon expiration of a thirty (30) day cure period following written notice by Zeiss to Xoft of any non-material breach of the Agreement, including non-payment of any money due
under this Agreement; or (d) upon expiration of the last to expire of the Licensed Patents. 

  

	8.	 Miscellaneous. 

  

	 	8.1	 Confidentiality. The mere existence of this Agreement (including the identification of the parties and the Licensed Patents) is not
confidential. However, neither party may issue a press release or otherwise affirmatively attempt to publicize the terms or existence of this settlement. The parties agree not to disclose the terms and conditions of this Agreement except (a) as
may be required by law (including without limitation documents for SEC reporting requirements), (b) during the course of litigation so long as the disclosure of such terms and conditions are restricted in the same manner as is the confidential
information of the litigating party; (c) in confidence to the professional legal and financial counsel representing such party; (d) in confidence to any party covered by the releases, licenses, or covenants granted herein; or (e) as
agreed by the parties. 

  

	 	8.2.	 Mutual Representations and Warranties. Each party and each person signing this Agreement on behalf of a party represents and warrants to the
other that: 

  

	 	(a)	 Such party has not entered this Agreement in reliance upon any promise, inducement, agreement, statement, or representation other than those
contained in this Agreement. 

  

	 	(b)	 Such party has the full right and power to enter into this Agreement, and the person executing this Agreement has the full right and authority to
enter into this Agreement on behalf of such party and the full right and authority to bind such party to the terms and obligations of this Agreement. 

  

	 	8.3.	 Notices. All notices and requests which are required or permitted to be given in connection with this Agreement shall be deemed given as of
the day they are received either by messenger, delivery service, or in the United States of America mails, postage prepaid, certified or registered, return receipt requested, and addressed as follows, or to such other address as the party to receive
the notice or request so designates by written notice to the other: 

 To Carl Zeiss Meditec AG: 

Carl Zeiss Meditec AG 
 c/o Carl Zeiss AG 
 Stefan Brandstetter 

Carl-Zeiss-Strasse 22 
 73447 Oberkochen 
 Germany 

To Carl Zeiss Meditec, Inc: 
 Carl Zeiss Meditec, Inc., 
 Ralf Kuschnereit 

5160 Hacienda Drive 
 Dublin, CA 94568 
 USA 

To ICAD: 
 iCAD, Inc. 
 Kevin Burns 

98 Spit Brook Road, Suite 100 
 Nashua, NH 03062 
 USA 

 

	 	8.4.	 Governing Law. This Agreement shall be construed and controlled by the internal laws of the State of Delaware (excluding conflict of laws
principles) and applicable federal laws, and each party consents to exclusive jurisdiction and venue in the federal courts sitting in the state of Delaware, unless no federal subject matter jurisdiction exists, in which case each party consents to
exclusive jurisdiction and venue in Delaware Chancery Court. Each party waives all defenses of lack of personal jurisdiction and forum non conveniens. Process may be served on either party in the manner authorized by applicable law or court rule.

  

	 	8.5.	 Costs. Each party shall bear his or its own costs, expenses and attorneys’ fees incurred in connection with the Action, the making of
this Agreement, and his or its performance under this Agreement. Each party expressly waives any claim of costs and attorneys’ fees from or against the other party, including, without limitation, any attorneys’ fees or costs that may
already have been awarded in the Action. 

  

	 	8.6.	 Assignment. iCAD may not assign this Agreement except in case of sale or transfer of substantially all of iCAD’s assets applicable to
the Licensed Products, and the acquiring entity assumes all of iCAD’s rights and obligations under this Agreement, and iCAD retains all applicable obligations under the Agreement. 

 

	 	8.7.	 Successors and Assigns. The terms, covenants, conditions, provisions and benefits of this Agreement shall be binding upon and inure to the
benefit of the parties and their respective successors and assigns. 

  

	 	8.8.	 No Construction Against Drafter. This Agreement results from negotiations between the parties and their respective legal counsel, and each
party acknowledges that he or it has had the opportunity to negotiate modifications to the language of this Agreement. Accordingly, each party agrees that in any dispute regarding the interpretation or construction of this Agreement, no statutory,
common law or other presumption shall operate in favor of or against any party hereto by virtue of his or its role in drafting or not drafting the terms and conditions set forth herein. 

	 	8.9.	 Captions. Captions or headings used in this Agreement are for the convenience of the parties only, and shall not be considered part of this
Agreement or used to construe the terms of this Agreement. 

  

	 	8.10.	 Construction. If any provision of this Agreement shall be held by a court of competent jurisdiction to be illegal, invalid or unenforceable
or otherwise in conflict with law, and the remaining provisions shall remain in full force and effect. If any provisions of this Agreement are deemed not enforceable, they shall be deemed modified to the extent necessary to make them enforceable.

  

	 	8.11.	 Counterparts. This Agreement may be executed in any number of counterparts and by the different parties on separate counterparts and each
such counterpart shall be deemed to be an original, but all such counterparts shall together constitute but one and the same Agreement. Execution of this Agreement may be accomplished by signing this Agreement and transmitting the signature page to
opposing counsel by facsimile or email. 

  

	 	8.12.	 Waiver. No waiver of any provision of this Agreement shall be deemed or shall constitute a waiver of any other provision, whether or not
similar, nor shall any waiver constitute a continuing waiver unless expressly stated in writing by the party making the waiver. No waiver of any provision shall be binding in any event unless executed in writing by the party making the waiver.

  

	 	8.13.	 Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof, and
supersedes all prior and contemporaneous written or oral agreements or communications as to such subject matter, all of which are merged and fully integrated into this Agreement. It shall not be modified except by a written agreement dated
subsequent to the date of this Agreement and signed on behalf of Zeiss and ICAD by their respective duly authorized representatives. 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be made and executed by duly authorized representatives as of the Effective Date. 

 

					
	 Carl Zeiss Meditec AG
	  	 Carl Zeiss Meditec, Inc
	  	 iCAD, Inc.

			
	 By______________________
	  	 By______________________
	  	 By______________________

			
	 Name (print): _____________
	  	 Name (print): _____________
	  	 Name (print): _____________

			
	 Title: ____________________
	  	 Title: ____________________
	  	 Title: ____________________

			
		  		  	
			
	 By________________________
	  		  	
			
	 Name (print):_________________
	  		  	
			
	 Title:________________________Annual Cash Incentive Plan for Fiscal Year 2010

 Exhibit 10.5 
 Annie’s Inc. 
 2010 Cash Bonus Plan 

(April 2009 – March 2010) 
 Sales Team, Non-Executives, Executive Team 
  

 
 Annie’s Inc. cash annual incentive bonus pool
for FY2010 will be allocated across five groups: Sales Team, Tier II, Tier III, Goal Based, and Executive Team (including the CEO). The bonus payout metrics for each group are based on a combination of Company financial targets for FY 2010 and
discretionary individual performance goals as determined by executive management and the Compensation Committee. 
 Payout of the cash
annual incentive bonus is subject to: 
  

	 	1.	Issuance of Annie’s, Inc. audited financial statements for FY 2010. Bonuses are anticipated to be paid on or before July 31, 2010 (within 150 days following
Fiscal Year End). 

  

	 	2.	Must be employed as an Annie’s employee at the time of pay-out. Those on continuation payments or acting as consultants are not eligible. 

 

	 	3.	Eligible compensation for the bonus calculation is base wages paid between April 1, 2009 and March 31, 2010. Employment started subsequent to April 1,
2009 (new employees) will be pro-rated based upon base wages paid from the start day until March 31, 2010. Employees in a probationary period as determined in their employment letter are not eligible until successful completion of the
probationary period. When the probationary period is successfully completed the bonus will be pro-rated back to the hire date. 

  

	 	4.	Disability or other unpaid leave will NOT be included as base wages nor will credit be provided for FY 2010 bonus calculations. 

 

	 	5.	Individuals under the direction of a Performance Improvement Plan (“PIP”) are ineligible to participate unless otherwise determined by the Human Resources
department and executive management. 

  

	 	6.	Income from operations (“EBIT”) of 6.4% or better as a percentage of Net Sales. 

  
  

1 

	 	7.	Net Sales of $21.0 million or better on the Annie’s Natural’s Brand. 

 

	 	8.	The Compensation Committee shall administer the Plan and has the sole authority and discretion to determine eligibility, achievements of targets, amounts of awards
(including discretionary awards), and the interpretation of Plan provisions. The determinations of the Compensation Committee shall be final. 

  

	 	9.	Eligibility to participate in the plan does not assure that any employee will actually receive an award. The Compensation Committee may award discretionary bonuses in
excess of targeted amounts or to individuals otherwise ineligible on such terms and conditions as it may specify. 

  

	 	10.	The Bonus Plan is subject to modification at any time by the Compensation Committee without notice. 

Other terms and conditions may be included in individual notices to employees and amended only in writing by the CEO or COO with the prior approval of
the Compensation Committee. 

  
  

2 

 Annie’s Inc 
 FY 2010 Annual Cash Incentive Plan 
  

Summary Schedule: Consolidated 2010 Cash Bonus Plan 

 

																													
	FY2010 Plan	  	 	Approved June 8, 2009	  
								
	 Financial Metrics
	  	AH	 	  	YOY	 	 	AN	 	  	YOY	 	 	Total	 	  	FY09	 	  	YOY incr	 
	 	  	  	incr.	 	 	  	incr.	 	 	  	 	 	  	 	 
	 Gross Sales
	  	$	91.9	  	  	 	7.6	% 	 	$	28.3	  	  	 	0.1	% 	 	$	120.2	  	  	$	113.8	  	  	 	5.7	% 
	 Net Sales
	  	$	76.9	  	  	 	10.0	% 	 	$	23.8	  	  	 	4.1	% 	 	$	100.7	  	  	$	92.8	  	  	 	8.6	% 
	 Operating Income
	  				  				 				  				 	$	8.0	  	  	$	2.8	  	  			
	 Net Income
	  				  				 				  				 	$	6.4	  	  	$	1.1	  	  			
								
	 Assumes Bonus Accrual of $1.301 = Target
	  				  				 				  				 				  				  			

 Compensation Plan 
 All Bonus Awards subject to EBIT of not less than 6.4 % of Net Sales 
  

																																			
	  
	 Net Sales Target
	   
	 	$	100.7 MM	  	 				 				 				 			
	  
	 Bonus subject to min. Net Sales for AN
	   
	 	$	21.00 MM	  	 				 				 				 			
				 				 				 				 				 	 	Assumed $ pool	  	 				 	$	499,579	  	 			
	  
  
	  
 Net Sales
	  
   
	 				 				 				 				 				 				 				 			
	YOY Grwth	 	 	 	 	 	 	 	 	 	 	 	Incr Sales	 	 	 	 
	Achievement (MM)	 	 	Payout	 	 	 	 	 	$ Payout	 	 	Increment	 	 	at CM = 18%	 	 	 	 
	 	110%	  	 	$	110.77	  	 	 	19.4	% 	 	 	175.0	% 	 				 	$	874,263	  	 	$	124,895	  	 	$	906,300	  	 	 	13.8	% 
	 	105%	  	 	$	105.74	  	 	 	14.0	% 	 	 	150.0	% 	 				 	$	749,368	  	 	$	99,916	  	 	$	362,520	  	 	 	27.6	% 
	 	103%	  	 	$	103.72	  	 	 	11.8	% 	 	 	130.0	% 	 				 	$	649,453	  	 	$	149,874	  	 	$	543,780	  	 	 	27.6	% 
	 	100%	  	 	$	100.7	  	 	 	8.6	% 	 	 	100.0	% 	 				 	$	499,579	  	 	$	99,916	  	 	$	181,260	  	 	 	55.1	% 
	 	99%	  	 	$	99.69	  	 	 	7.5	% 	 	 	80.0	% 	 				 	$	399,663	  	 	$	99,916	  	 	$	181,260	  	 	 	55.1	% 
	 	98%	  	 	$	98.69	  	 	 	6.4	% 	 	 	60.0	% 	 				 	$	299,747	  	 	$	99,916	  	 	$	181,260	  	 	 	55.1	% 
	 	97%	  	 	$	97.68	  	 	 	5.3	% 	 	 	40.0	% 	 				 	$	199,832	  	 	$	99,916	  	 	$	181,260	  	 	 	55.1	% 
	 	96%	  	 	$	96.67	  	 	 	4.2	% 	 	 	20.0	% 	 				 	$	99,916	  	 	$	49,958	  	 	$	181,260	  	 	 	27.6	% 
	 	95%	  	 	$	95.67	  	 	 	3.1	% 	 	 	10.0	% 	 				 	$	49,958	  	 	$	49,958	  	 				 			
						
	  
	 EBIT target
	   
	 	$	8.0 MM	  	 				 				 				 			
	  
	 EBIT is net of Bonus Actually Earned
	   
	 				 	 	Assumed $ Pool	  	 				 	$	797,470	  	 			
							
	Achievement EBIT	 	 	Payout	 	 	 	 	 	$ Payout	 	 	EBIT Payout
Increment	 	 	EBIT
Increase	 	 	 	 
	 	120%	  	 	$	9.60	  	 	 	160.0	% 	 				 				 	$	1,275,951	  	 	$	239,241	  	 	$	800,000	  	 	 	29.9	% 
	 	110%	  	 	$	8.80	  	 	 	130.0	% 	 				 				 	$	1,036,711	  	 	$	239,241	  	 	$	800,000	  	 	 	29.9	% 
	 	100%	  	 	$	8.0	  	 	 	100.0	% 	 				 				 	$	797,470	  	 	$	119,620	  	 	$	320,000	  	 	 	37.4	% 
	 	96%	  	 	$	7.68	  	 	 	85.0	% 	 				 				 	$	677,849	  	 	$	119,620	  	 	$	320,000	  	 	 	37.4	% 
	 	92%	  	 	$	7.36	  	 	 	70.0	% 	 				 				 	$	558,229	  	 	$	119,620	  	 	$	320,000	  	 	 	37.4	% 
	 	88%	  	 	$	7.04	  	 	 	55.0	% 	 				 				 	$	438,608	  	 	$	119,620	  	 	$	320,000	  	 	 	37.4	% 
	 	84%	  	 	$	6.72	  	 	 	40.0	% 	 				 				 	$	318,988	  	 	$	119,620	  	 	$	320,000	  	 	 	37.4	% 
	 	80%	  	 	$	6.40	  	 	 	25.0	% 	 				 				 	$	199,367	  	 	$	199,367	  	 				 			

  

																																					
	 	  	Approx
Target
% Salary	 	 	Planned
Salary
FY 2010	 	  	Proposed
Bonus Pool
FY 2010	 	  	Factor Weights	 
	 	  	 	  	  	 	 	 	 	 	  	 	 	 	 	 	  	Of 
which:
Discretionary	 
	 	  	 	  	  	Net Sales	 	  	EBIT	 	  
	 Exec Team
	  	 	35.0	% 	 	$	940,000	  	  	$	329,000	  	  	 	33.3	% 	 	$	109,557	  	  	 	66.7	% 	 	$	219,443	  	  	 	20.0	% 	 	$	65,800	  
	 Tier II
	  	 	23.6	% 	 	$	1,514,000	  	  	$	357,065	  	  	 	33.3	% 	 	$	118,903	  	  	 	66.7	% 	 	$	238,162	  	  	 	30.0	% 	 	$	107,120	  
	 Tier III
	  	 	11.7	% 	 	$	583,975	  	  	$	68,221	  	  	 	33.3	% 	 	$	22,718	  	  	 	66.7	% 	 	$	45,504	  	  	 	40.0	% 	 	$	27,289	  
	 Sales
	  	 	21.7	% 	 	$	1,864,670	  	  	$	404,912	  	  	 	50.0	% 	 	$	202,456	  	  	 	50.0	% 	 	$	202,456	  	  	 	10.0	% 	 	$	40,491	  
	 Goal Based
	  	 	9.0	% 	 	$	1,532,711	  	  	$	137,850	  	  	 	33.3	% 	 	$	45,945	  	  	 	66.7	% 	 	$	91,904	  	  	 	40.0	% 	 	$	55,140	  
		  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	 	  
	  
	 
		  				 	$	6,435,356	  	  	$	1,297,049	  	  				 	$	499,579	  	  				 	$	797,470	  	  				 	$	295,839	  

 Note: The above schedule for “EBIT” includes an annual bonus accrual of $1.3MM at the $8.0MM target. Actual
results will be measured against the EBIT target using actual bonus amounts achieved. Income from operation / “EBIT” is defined as [Net Income + interest expense + income taxes]. 

  
  

3 

 Annie’s Inc 
 FY 2010 Annual Cash Incentive Plan 
  
 5. Executive Team Cash Bonus Plan 
 For FY 2010, the Executive Team Bonus Pool, based upon
current staffing, totals $329,000. 
 The Executive Team consists of John Foraker, Steven Jackson, Mark Mortimer, and Sarah Bird. 

An Executive Team member’s cash bonus will be determined based upon achievement of Company performance measures of Consolidated
Net Sales and Income from Operations (“EBIT”) and individual performance. For each Executive Team member, Company achievement of each performance goal will be weighted 1/3rd and 2/3rd, respectively, in calculating the maximum available cash bonus. For all Executive Team members other than the CEO,
twenty percent (20%) of this maximum will be payable solely based upon the CEO’s evaluation of an Executive Team member’s individual performance. For the CEO, twenty percent (20%) of this maximum will be payable solely based upon
the Compensation Committee’s evaluation of the CEO’s individual performance. 
  

					
	 Consolidated Net Sales
	 	  	  	 Income from Operations (“EBIT”)

	 33.3%
	 		  	66.7%

 The payouts of each of the performance measures are described more fully below: 

 

																													
	 Last
	  	First	  	 Business Title
	  	 Department
	  	 Bonus Tier
	  	Bonus
Target %	 	 	Net Sales
Metric ($$)	 	  	EBIT Metirc
(Inc. from
Ops.) ($$)	 	  	Of 
which...$$
discretionary	 	  	 Total Target
 Bonus $$
	 
	 Bird
	  	Sarah	  	Sr. Vice President of Marketing	  	G & A	  	Exec Team	  	 	35	% 	 	$	20,979	  	  	$	42,021	  	  	$	12,600	  	  	$	63,000	  
	 Foraker
	  	John	  	CEO	  	G & A	  	Exec Team	  	 	35	% 	 	$	32,634	  	  	$	65,366	  	  	$	19,600	  	  	$	98,000	  
	 Jackson
	  	Steven	  	COO	  	G & A	  	Exec Team	  	 	35	% 	 	$	27,389	  	  	$	54,861	  	  	$	16,450	  	  	$	82,250	  
	 Mortimer
	  	Mark	  	Senior Vice President - Sales	  	G & A	  	Exec Team	  	 	35	% 	 	$	28,555	  	  	$	57,195	  	  	$	17,150	  	  	$	85,750	  
										
		  		  	Subtotal	  		  	Exec Team	  				 	$	109,557	  	  	$	219,443	  	  	$	65,800	  	  	$	329,000	  

  
  

4 

 Annie’s Inc 
 FY 2010 Annual Cash Incentive Plan 
  
 Sliding performance scale for Net Sales and Income from Operations is located in the Summary 
 Consolidated Bonus Pool Amount (will be adjusted for eligible participants at time of payment): 
  

																																					
	 	  	Approx
Target
% Salary	 	 	Planned
Salary FY
2010	 	  	Proposed
Bonus Pool
FY 2010	 	  	Net Sales	 	  	Factor Weights
EBIT	 	  	Of which:
Discretionary	 
	 Exec Team
	  	 	35.0	% 	 	$	940,000	  	  	$	329,000	  	  	 	33.3	% 	 	$	109,557	  	  	 	66.7	% 	 	$	219,443	  	  	 	20.0	% 	 	$	65,800	  
	 Tier II
	  	 	23.6	% 	 	$	1,514,000	  	  	$	357,065	  	  	 	33.3	% 	 	$	118,903	  	  	 	66.7	% 	 	$	238,162	  	  	 	30.0	% 	 	$	107,120	  
	 Tier III
	  	 	11.7	% 	 	$	583,975	  	  	$	68,221	  	  	 	33.3	% 	 	$	22,718	  	  	 	66.7	% 	 	$	45,504	  	  	 	40.0	% 	 	$	27,289	  
	 Sales
	  	 	21.7	% 	 	$	1,864,670	  	  	$	404,912	  	  	 	50.0	% 	 	$	202,456	  	  	 	50.0	% 	 	$	202,456	  	  	 	10.0	% 	 	$	40,491	  
	 Goal Based
	  	 	9.0	% 	 	$	1,532,711	  	  	$	137,850	  	  	 	33.3	% 	 	$	45,945	  	  	 	66.7	% 	 	$	91,904	  	  	 	40.0	% 	 	$	55,140	  
		  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	 	  
	  
	 
		  				 	$	6,435,356	  	  	$	1,297,049	  	  				 	$	499,579	  	  				 	$	797,470	  	  				 	$	295,839	  

 7. Effect of Acquisitions on Bonus Targets 
 If the Company acquires a business during the year, the bonus targets and payouts will be modified, as approved by the Compensation Committee, to appropriately reflect the expectations for the financial
performance of the business acquired. 
 8. Final Plan Administration 
 The Compensation Committee shall administer the Plan and has the sole authority and discretion to determine eligibility, achievements of targets, amounts of awards (including discretionary awards), and
the interpretation of Plan provisions. The determinations of the Compensation Committee shall be final. 
 9. Participant Eligibility

 Eligibility to participate in the plan does not assure that any employee will actually receive an award. The Compensation Committee may
award discretionary bonuses in excess of targeted amounts or to individuals otherwise ineligible on such terms and conditions as it may specify. 
  

	
	Approved: June 8, 2009
	
	 /s/ Brian T. Murphy

	Brian T. Murphy
	On behalf of the Compensation Committee

  
  

5

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