Document:

Form of Non-Qualified Stock Option Agreement

 EXHIBIT 10.14 
  
 ANNA’S LINENS, INC. 
  
 2005 OMNIBUS EQUITY INCENTIVE PLAN 
 NON-QUALIFIED STOCK OPTION AGREEMENT 
  
 WHEREAS, the Company has
adopted the Plan (as defined below), the terms of which are hereby incorporated by reference and made a part of this Agreement; and 
  
 WHEREAS, the Committee has determined that it would be in the best interests of the Company and its stockholders to grant the Option provided for herein to the
Participant pursuant to the Plan and the terms set forth herein. 
  
 NOW,
THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties agree as follows: 
  
 1. Definitions. Whenever the following terms are used in this Agreement, they shall have the meanings set forth below. Capitalized terms not otherwise
defined herein shall have the same meanings as in the Plan. 
  

	 	a)	“Cause” includes (and is not limited to) dishonesty with respect to the Company or any Affiliate, insubordination, substantial malfeasance or non-feasance of duty,
unauthorized disclosure of confidential information, and conduct substantially prejudicial to the business of the Company or any Subsidiary. The determination of the Committee as to the existence of “Cause” will be conclusive on the
Participant and the Company. 

  

	 	b)	“Disability” means, “Disability” as defined in an employment agreement between the Company or any of its Affiliates and the Participant or, if not defined
therein or if there shall be no such agreement, “disability” of the Participant shall have the meaning ascribed to such term in the Plan. 

  

	 	c)	“Expiration Date” means the date set forth on the Notice (as defined below). 

  

	 	d)	 “Good Reason” means (i) a breach by the Company or any Subsidiary of any employment or consulting agreement to which the Participant is a party and (ii)
following a Change in Control, (x) the failure of the Company to pay or cause to be paid the Participant’s base salary or annual bonus when due or (y) any substantial and sustained diminution in the Participant’s authority or
responsibilities materially inconsistent with the Participant’s position; provided that either of the events described in clauses (x) and (y) will constitute Good Reason only if the Company fails to cure such event within 30 days after receipt
from the Participant of written notice of the event which constitutes Good Reason; provided, further, that “Good Reason” will cease to exist for an event on the sixtieth (60th) day following the later of its occurrence or the
Participant’s 

  

	 	 
knowledge thereof, unless the Participant has given the Company written notice of his or her termination of employment for Good Reason prior to such date.

  

	 	e)	“Plan” means the Anna’s Linen, Inc. 2005 Omnibus Equity Incentive Plan, as the same may be amended, supplemented or modified from time to time.

  

	 	f)	“Retirement” means a termination of employment by the Participant (i) following the attainment of age      with ten (10) or more years of
service with the Company or any Affiliate or (ii) pursuant to a retirement plan or early retirement program of the Company or any Affiliate. 

  

	 	g)	“Vested Portion” means, at any time, the portion of an Option which has become vested, as described in Section 3 of this Agreement. 

  
 2. Grant of Option. The Company hereby grants to the Participant the right
and option (the “Option”) to purchase, on the terms and conditions hereinafter set forth, the number of Shares set forth on the Notice of Grant of Stock Option (the “Notice”), subject to adjustment as set forth in the Plan. The
purchase price of the Shares subject to the Option (the “Option Price”) shall be as set forth on the Notice. The Option is intended to be a non-qualified stock option, and as such is not intended to be treated as an option that complies
with Section 422 of the Internal Revenue Code of 1986, as amended. 
  
 3. Vesting of the Option. 
  
 (a) In
General. Subject to Sections 3(b) and 3(c), the Option shall vest and become exercisable at such times as are set forth in the Notice. 
  
 (b) Change in Control. Notwithstanding the foregoing, in the event of a Change in Control, the unvested portion of the Option, to the
extent not previously cancelled or forfeited, shall immediately become vested and exercisable upon the earlier of (i) the first anniversary of the Change in Control or (ii) the termination of the Participant’s Employment (A) by the Company
other than for Cause (unless such termination is due to death or Disability) or (B) by the Participant for Good Reason. 
  
 (c) Termination of Employment. If the Participant’s Employment with the Company and its Affiliates terminates for any reason
(including, unless otherwise determined by the Committee, a Participant’s change in status from an employee to a non-employee (other than director of the Company or any Affiliate)), the Option, to the extent not then vested, shall be
immediately canceled by the Company without consideration; provided, however, that if the Participant’s Employment terminates due to death, Disability or Retirement, the unvested portion of the Option, to the extent not previously cancelled or
forfeited, shall immediately become vested and exercisable. The Vested Portion of the Option shall remain exercisable for the period set forth in Section 4(a) of this Agreement. If the Participant is absent from work with the 

  

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Company or with an Affiliate because of a temporary disability (any disability other than a Disability), or on an approved leave of absence for any purpose,
the Participant shall not, during the period of any such absence, be deemed, by virtue of such absence alone, to have terminated Employment, except to the extent that the Committee so determines. 
  
 4. Exercise of Option. 
  
 (a) Period of Exercise. Subject to the provisions of the
Plan and this Agreement, and the terms of any employment agreement entered into by the Participant and the Company or a Subsidiary that provides for treatment of Options that is more favorable to the Participant than clauses (i) - (vii) of this
Section 4(a), the Participant may exercise all or any part of the Vested Portion of the Option at any time prior to the Expiration Date. Notwithstanding the foregoing, if the Participant’s Employment terminates prior to the Expiration Date, the
Vested Portion of the Option shall remain exercisable for the period set forth below. If the last day on which the Option may be exercised, whether the Expiration Date or due to a termination of the Optionee’s Employment prior to the Expiration
Date, is a Saturday, Sunday or other day that is not a trading day on the Nasdaq National Market (the “Nasdaq”) or, if the Company’s Shares are not then listed on Nasdaq, such other stock exchange or trading system that is the primary
exchange on which the Company’s Shares are then traded, then the last day on which the Option may be exercised shall be the preceding trading day on Nasdaq or such other stock exchange or trading system. 
  
 (i) Death or Disability. If the Participant’s
Employment with the Company or any Subsidiary terminates due to the Participant’s death or Disability, the Participant (or his or her representative) may exercise the Vested Portion of the Option for a period ending on the earlier of (A) one
hundred eighty (180) days following the date of such termination and (B) the Expiration Date; 
  
 (ii) Retirement. If the Participant’s Employment with the Company or any Subsidiary terminates due to the Participant’s
Retirement, the Participant may exercise the Vested Portion of the Option for a period ending on the earlier of (A)      (  ) [days/months/years] following the date of such termination and (B) the
Expiration Date; provided, that if the Company or any Subsidiary has given the Participant notice that the Participant’s Employment is being terminated for Cause prior to the Participant’s election to terminate due to the
Participant’s Retirement, then the provisions of Section 4(a)(v) shall control; 
  
 (iii) Unsatisfactory Performance; Voluntary Termination without Good Reason. If the Participant’s Employment with the Company or any
Subsidiary is terminated by the Company or the Subsidiary (other than after a Change in Control as set forth in Section 4(a)(vi)) for unsatisfactory performance, but not for Cause (as determined in its sole discretion by the Company or the
Subsidiary), or the Participant voluntarily terminates Employment at any time without Good Reason, the Participant may exercise the Vested Portion of the Option for a period ending on the earlier of (A) ninety (90) days following the date of such
termination and (B) the Expiration Date; provided, that if the Company or any Subsidiary has given the Participant notice that the Participant’s Employment is being terminated for Cause prior to the 

  

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Participant’s election to voluntarily terminate Employment without Good Reason, then the provisions of Section 4(a)(v) shall control; 
  
 (iv) Termination other than for Cause. Subject to the
provision of Section 4(a)(vi), if the Participant’s Employment with the Company or any Subsidiary is terminated by the Company or the Subsidiary for any reason other than by the Company or the Subsidiary for Cause, unsatisfactory performance or
due to the Participant’s death or Disability, the Participant may exercise the Vested Portion of the Option for a period ending on the earlier of (A) one year following the date of such termination and (B) the Expiration Date; 
  
 (v) Termination by the Company for Cause. If the
Participant’s Employment with the Company or any Subsidiary is terminated by the Company or the Subsidiary for Cause, the Vested Portion of the Option shall immediately terminate in full and cease to be exercisable; and 
  
 (vi) After a Change in Control. If the Participant’s
Employment with the Company or any Subsidiary terminates after a Change in Control due to a termination by the Company other than for Cause or due to the Participant’s resignation for Good Reason, the Participant may exercise the Vested Portion
of the Option for a period ending on the earlier of (A) one year following the date of such termination and (B) the Expiration Date. 
  
 (b) Method of Exercise. 
  
 (i) Subject to Section 4(a) of this Agreement, the Vested Portion of an Option may be exercised by delivering to the Company at its
principal office written notice of intent to so exercise; provided that the Option may be exercised with respect to whole Shares only. Such notice shall specify the number of Shares for which the Option is being exercised, shall be signed (whether
or not in electronic form) by the person exercising the Option and shall make provision for the payment of the Option Price. Payment of the aggregate Option Price shall be paid to the Company, at the election of the Committee, pursuant to one or
more of the following methods: (A) in cash, or its equivalent; (B) by transferring Shares having a Fair Market Value equal to the aggregate Option Price for the Shares being purchased to the Company and satisfying such other requirements as may be
imposed by the Committee; provided that such Shares have been held by the Participant for no less than six (6) months (or such other period as established from time to time by the Committee or generally accepted accounting principles); (C) partly in
cash and partly in Shares; or (D) if there is a public market for the Shares at such time, subject to such rules as may be established by the Committee, through delivery of irrevocable instructions to a broker to sell the Shares otherwise
deliverable upon the exercise of the Option and to deliver promptly to the Company an amount equal to the aggregate Option Price. No Participant shall have any rights to dividends or other rights of a stockholder with respect to the Shares subject
to the Option until the issuance of the Shares. 
  
 (ii) Notwithstanding any other provision of the Plan or this Agreement to the contrary, absent an available exemption to registration or qualification, the Option may not be exercised prior to the completion of any registration or
qualification of the Option or the 

  

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Shares under applicable state and federal securities or other laws, or under any ruling or regulation of any governmental body or national securities
exchange that the Committee shall in its sole reasonable discretion determine to be necessary or advisable. 
  
 (iii) Upon the Company’s determination that the Option has been validly exercised as to any of the Shares, the Company shall issue
certificates in the Participant’s name for such Shares. However, the Company shall not be liable to the Participant for damages relating to any delays in issuing the certificates to the Participant, any loss by the Participant of the
certificates, or any mistakes or errors in the issuance of the certificates or in the certificates themselves. 
  
 (iv) In the event of the Participant’s death, the Vested Portion of an Option shall remain vested and exercisable by the
Participant’s executor or administrator, or the person or persons to whom the Participant’s rights under this Agreement shall pass by will or by the laws of descent and distribution as the case may be, to the extent set forth in Section
4(a) of this Agreement. Any heir or legatee of the Participant shall take rights herein granted subject to the terms and conditions hereof. 
  
 (v) As a condition to the exercise of any Option evidenced by this Agreement, the Participant agrees to hold, for a period of twelve (12)
months following the date of such exercise, a number of Shares issued pursuant to such exercise, equal 75% (rounded down to the nearest whole Share) of the quotient of (A) and (B), where (A) is the product of (1) the number of Shares exercised by
the Participant multiplied by (2) fifty percent (50%) of the excess of the Fair Market Value of a Share on the date of exercise over the exercise price and (B) is the Fair Market Value of a Share on the date of exercise. The holding requirement
related to Shares that is established in this Section 4(b)(v) shall terminate with respect to the Options evidenced by this Agreement (as well as any Shares issued pursuant to exercise of such Options) on the first anniversary of the date of
termination of the Participant’s Employment with the Company or its Affiliates. 
  
 5. No Right to Continued Employment. Neither the Plan nor this Agreement shall be construed as giving the Participant the right to be retained in the Employment of the Company or any Subsidiary. Further, the Company
or a Subsidiary may at any time dismiss the Participant or discontinue any other relationship, free from any liability or any claim under the Plan or this Agreement, except as otherwise expressly provided herein. 
  
 6. Legend on Certificates. The certificates representing the Shares purchased
by exercise of an Option shall be subject to such stop transfer orders and other restrictions as the Committee may deem reasonably advisable under the Plan or the rules, regulations, and other requirements of the Securities and Exchange Commission,
Nasdaq or any stock exchange upon which such Shares are listed, any applicable federal or state laws and the Company’s Certificate of Incorporation and Bylaws, and the Committee may cause a legend or legends to be put on any such certificates
to make appropriate reference to such restrictions. 
  
 7.
Transferability. Unless otherwise determined by the Committee, an Option may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the 

  

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Participant otherwise than by will or by the laws of descent and distribution, and any such purported assignment, alienation, pledge, attachment, sale,
transfer or encumbrance shall be void and unenforceable against the Company or any Subsidiary. 
  
 8. Withholding. The Participant may be required to pay to the Company or a Subsidiary and the Company or the Subsidiary shall have the right and is hereby authorized to withhold from any payment due or transfer made
under the Option or under the Plan or from any compensation or other amount owing to a Participant the amount (in cash, Shares, other securities, other Awards or other property) of any applicable withholding taxes in respect of the Option, its
exercise, or any payment or transfer under the Option or under the Plan and to take such action as may be necessary in the option of the Company to satisfy all obligations for the payment of such taxes. 
  
 9. Securities Laws. Upon the acquisition of any Shares pursuant to the
exercise of an Option, the Participant will make or enter into such written representations, warranties and agreements as the Committee may reasonably request in order to comply with applicable securities laws or with this Agreement. 
  
 10. Notices. Any notice under this Agreement shall be addressed to the
Company in care of its Corporate Secretary at the principal executive office of the Company, with a copy to the Director, Human Resources, at the principal executive office of the Company, and to the Participant at the address appearing in the
personnel records of the Company for the Participant or to either party at such other address as either party hereto may hereafter designate in writing to the other. Any such notice shall be deemed effective upon receipt thereof by the addressee.

  
 11. Personal Data. The Company, the Participant’s local
employer and the local employer’s parent company or companies may hold, collect, use, process and transfer, in electronic or other form, certain personal information about the Participant for the exclusive purpose of implementing, administering
and managing the Participant’s participation in the Plan. Participant understands that the following personal information is required for the above named purposes: his/her name, home address and telephone number, office address (including
department and employing entity) and telephone number, e-mail address, date of birth, citizenship, country of residence at the time of grant, work location country, system employee ID, employee local ID, employment status (including international
status code), supervisor (if applicable), job code, title, salary, bonus target and bonuses paid (if applicable), termination date and reason, tax payer’s identification number, tax equalization code, US Green Card holder status, contract type
(single/dual/multi), any shares of stock or directorships held in the Company, details of all stock option grants (including number of grants, grant dates, exercise price, vesting type, vesting dates, expiration dates, and any other information
regarding options that have been granted, canceled, vested, unvested, exercisable, exercised or outstanding) with respect to the Participant, estimated tax withholding rate, brokerage account number (if applicable), and brokerage fees (the
“Data”). Participant understands that Data may be collected from the Participant directly or, on Company’s request, from Participant’s local employer. Participant understands that Data may be transferred to third parties
assisting the Company in the implementation, administration and management of the Plan, including the brokers approved by the Company, the broker selected by the Participant from among such Company-approved 

  

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brokers (if applicable), tax consultants and the Company’s software providers (the “Data Recipients”). Participant understands that some of
these Data Recipients may be located outside the Participant’s country of residence, and that the Data Recipient’s country may have different data privacy laws and protections than the Participant’s country of residence. Participant
understands that the Data Recipients will receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing the Participant’s participation in the Plan, including any
requisite transfer of such Data as may be required for the administration of the Plan and/or the subsequent holding of shares of common stock on the Participant’s behalf by a broker or other third party with whom the Participant may elect to
deposit any shares of common stock acquired pursuant to the Plan. Participant understands that Data will be held only as long as necessary to implement, administer and manage the Participant’s participation in the Plan. Participant understands
that Data may also be made available to public authorities as required by law, e.g., to the U.S. government. Participant understands that the Participant may, at any time, review Data and may provide updated Data or corrections to the Data by
written notice to the Company. Except to the extent the collection, use, processing or transfer of Data is required by law, Participant may object to the collection, use, processing or transfer of Data by contacting the Company in writing.
Participant understands that such objection may affect his/her ability to participate in the Plan. Participant understands that he/she may contact the Company’s Director of Human Resources to obtain more information on the consequences of such
objection. 
  
 12. Governing Law. This Agreement shall be governed
by and construed in accordance with the laws of the State of Delaware, without regard to conflicts of laws, and any and all disputes between the Participant and the Company or any Subsidiary relating to the Option shall be brought only in a state or
federal court of competent jurisdiction sitting in either Los Angeles County or Orange County, California and the Participant and the Company and any Affiliate hereby irrevocably submit to the jurisdiction of any such court and irrevocably agree
that venue for any such action shall be only in any such court. 
  
 13. Entire Agreement. This Agreement, together with the Notice and the Plan, embodies the entire agreement and understanding between the parties hereto with respect to the subject matter hereof and supersedes all prior oral or written
agreements and understandings relating to the subject matter hereof. No statement, representation, warranty, covenant or agreement not expressly set forth in this Agreement or the Notice shall affect or be used to interpret, change or restrict, the
express terms and provisions of this Agreement or the Notice; provided, that this Agreement and the Notice shall be subject to and governed by the Plan, and in the event of any inconsistency between the provisions of this Agreement or the Notice and
the provisions of the Plan, the provisions of the Plan shall govern. 
  
 14. Modifications And Amendments. The terms and provisions of this Agreement and the Notice may be modified or amended as provided in the Plan. 
  
 15. Waivers And Consents. Except as provided in the Plan, the terms and provisions of this Agreement and the Notice may be waived, or consent for the
departure therefrom granted, only by a written document executed by the party entitled to the benefits of such terms or provisions. No such waiver or consent shall be deemed to be or shall constitute a waiver or 

  

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consent with respect to any other terms or provisions of this Agreement or the Notice, whether or not similar. Each such waiver or consent shall be effective
only in the specific instance and for the purpose for which it was given, and shall not constitute a continuing waiver or consent. 
  
 16. Reformation; Severability. If any provision of this Agreement or the Notice (including any provision of the Plan that is incorporated herein by
reference) shall hereafter be held to be invalid, unenforceable or illegal, in whole or in part, in any jurisdiction under any circumstances for any reason, (i) such provision shall be reformed to the minimum extent necessary to cause such provision
to be valid, enforceable and legal while preserving the intent of the parties as expressed in, and the benefits of the parties provided by, this Agreement, the Notice and the Plan or (ii) if such provision cannot be so reformed, such provision shall
be severed from this Agreement or the Notice and an equitable adjustment shall be made to this Agreement or the Notice (including, without limitation, addition of necessary further provisions) so as to give effect to the intent as so expressed and
the benefits so provided. Such holding shall not affect or impair the validity, enforceability or legality of such provision in any other jurisdiction or under any other circumstances. Neither such holding nor such reformation or severance shall
affect the legality, validity or enforceability of any other provision of this Agreement, the Notice or the Plan. 
  
 17. Receipt of Documents. By entering into this Agreement, the Participant agrees and acknowledges that (i) the Participant has received and read a copy
of the Plan and (ii) the Option is granted pursuant to the Plan and is therefore subject to all of the terms of the Plan. 
  
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the      day of
                    , 200_ at
                                        .

  

					
	COMPANY
	
	ANNA’S LINENS, INC.
		
	By:	 	 
	 	 	 Its:
	 	 

					
	
	PARTICIPANT
	
	 
	 Name:
	 	 

  

 8Form of Restricted Stock Award Agreement

 EXHIBIT 10.15 
  
 Anna’s Linens, Inc. 
 Restricted Stock Award Agreement 
  
 General Terms and Conditions 
  
 WHEREAS, the
Company has adopted the Plan (as defined below), the terms of which are hereby incorporated by reference and made a part of this Agreement; and 
  
 WHEREAS, the Committee has determined that it would be in the best interests of the Company and its stockholders to grant the Shares of Restricted Stock
provided for herein to the Participant pursuant to the Plan and the terms set forth herein. 
  
 NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties agree as follows: 
  

	1.	Definitions. Whenever the following terms are used in this Agreement, they shall have the meanings set forth below. Capitalized terms not otherwise defined herein shall have the
same meanings as in the Plan. 

  

	 	a)	“Cause” includes (and is not limited to) dishonesty with respect to the Company or any Affiliate, insubordination, substantial malfeasance or non-feasance of duty,
unauthorized disclosure of confidential information, and conduct substantially prejudicial to the business of the Company or any Subsidiary. The determination of the Committee as to the existence of “Cause” will be conclusive on the
Participant and the Company. 

  

	 	b)	“Disability” means, “Disability” as defined in an employment agreement between the Company or any of its Affiliates and the Participant or, if not defined
therein or if there shall be no such agreement, “disability” of the Participant shall have the meaning ascribed to such term in the Plan. 

  

	 	c)	 “Good Reason” means (i) a breach by the Company or any Subsidiary of any employment or consulting agreement to which the Participant is a party and (ii)
following a Change in Control, (x) the failure of the Company to pay or cause to be paid the Participant’s base salary or annual bonus when due or (y) any substantial and sustained diminution in the Participant’s authority or
responsibilities materially inconsistent with the Participant’s position; provided that either of the events described in clauses (x) and (y) will constitute Good Reason only if the Company fails to cure such event within 30 days after receipt
from the Participant of written notice of the event which constitutes Good Reason; provided, further, that “Good Reason” will cease to exist for an event on the sixtieth (60th) day following the later of its occurrence or the
Participant’s 

  

	 	 
knowledge thereof, unless the Participant has given the Company written notice of his or her termination of employment for Good Reason prior to such date.

  

	 	d)	“Plan” means the Anna’s Linens, Inc. 2005 Omnibus Equity Incentive Plan, as the same may be amended, supplemented or modified from time to time.

  

	 	e)	“Restriction Period” means the period set forth in the Notice (as defined below). 

  

	 	f)	“Vesting Date” means each vesting date set forth in the Notice. 

  

	2.	Grant of Shares. The Company hereby grants to the Participant (the “Award”), on the terms and conditions hereinafter set forth, the number of Shares (the “Restricted
Shares”) set forth on the Notice of Grant of Restricted Stock (the “Notice”). 

  

	3.	Restricted Shares. The Restricted Shares will be represented by a Share certificate, or other evidence of ownership (a “stock certificate”), registered in the name of the
Participant and will constitute issued and outstanding Shares for all corporate purposes. Each stock certificate will be issued bearing a restrictive legend in substantially the form as follows: 

  
 “The shares represented by this certificate are subject to the
restrictions, terms and conditions (including forfeiture, a call option and restrictions against transfer) contained in the Plan and the Agreement) between the registered holder hereof and Anna’s Linens, Inc. Copies of the Plan and Agreement
are on file in the Office of the Secretary of Anna’s Linens, Inc.” 
  

	4.	Restriction Period; Rights of Participant; Custody of Stock Certificates and Retained Distributions. During the Restriction Period with respect to each portion of the Award, the
Participant will generally exercise all the rights, powers, and privileges of a holder of a Share, including the right to vote the Restricted Shares registered in his or her name and to receive all regular cash dividends and such other distributions
as the Board of Directors of the Company (the “Board”) or any Committee (the “Committee”) to which the Board or any Committee of the Board has delegated such authority may in its sole discretion designate that are paid or
distributed on such Restricted Shares. [The right to vote the Restricted Shares and to receive dividends can be limited to vested Shares only – See (c) below.] 

  
 However, until the end of the Restriction Period with respect to each portion of the Award, the Participant: 
  

	 	a)	will not be entitled to take possession of the stock certificate(s) representing the Restricted Shares covered by that portion of the Award; 

  

	 	b)	may not sell, transfer, encumber or otherwise dispose of the Restricted Shares covered by that portion of the Award; and 

  

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	 	c)	will not receive distributions made or declared with respect to the Restricted Shares covered by that portion of the Award which the Board or the Committee shall in its sole
discretion designate as retained distributions (“Retained Distributions”). Retained Distributions will not bear interest or be segregated in a separate account and will be subject to the same restrictions as the Restricted Shares to which
they relate. 

  

	5.	Vesting and Delivery of Vested Securities. Subject to the terms and provisions of the Plan and this Agreement (and any Performance Vesting Terms set forth in Attachment A hereto),
on each Vesting Date with respect to the Award, all of the Restricted Shares and the Retained Distributions, if any, covered by the portion of the Award related to such Vesting Date shall become unconditionally vested. Except as otherwise provided
in paragraphs 7 and 8, the vesting of such Restricted Shares and any Retained Distributions relating thereto shall occur only if the Performance Vesting Terms have been met and the Participant has continued in Employment of the Company or any of its
Affiliates on the Vesting Date and has continuously been so employed since the Date of Grant (as defined in the Notice). 

  
 Reasonably promptly following the Participant’s satisfaction of all requirements under paragraph 10 hereof, after Restricted Shares and Retained
Distributions vest, the Company will issue and deliver to the Participant new Share certificates or other evidence of ownership of the vested securities, registered in the name of the Participant or, if deceased, his or her legatees, personal
representatives or distributees without the legend set forth in paragraph 3 of this Agreement. 
  

	6.	Power of Attorney. The Company, its successors and assigns, is hereby appointed the attorney-in-fact, with full power of substitution, of the Participant for the sole purpose of
carrying out the provisions of this Agreement and taking any action and executing any instruments which such attorney-in-fact may deem necessary or advisable to accomplish the purposes hereof, which appointment as attorney-in-fact is irrevocable and
coupled with an interest. The Company as attorney-in-fact for the Participant may in the name and stead of the Participant, make and execute all conveyances, assignments and transfers (including to the Company) of the Restricted Shares and Retained
Distributions relating thereto held by the Company during the Restriction Period and the Participant hereby ratifies and confirms all that the Company, as said attorney-in-fact, shall do by virtue hereof, provided that the foregoing shall be solely
for the purpose of carrying out the provisions of this Agreement. Nevertheless, the Participant shall, if so requested by the Company, execute and deliver to the Company all such instruments as may, in the reasonable judgment of the Company, be
advisable for the purpose. 

  

	7.	Termination of Employment. 

  

	 	a)	 If the Participant’s Employment with the Company and its Affiliates is (i) terminated by the Participant for any reason other than those described in clauses
(b) and (c) below prior to the Vesting Date with respect to any portion of the 

  

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Award, then the Restricted Shares covered by any such portion of the Award and all Retained Distributions relating thereto shall be completely forfeited on
the date of any such termination, unless otherwise provided in an employment agreement between the Participant and the Company or a Subsidiary. 

  

	 	b)	If the Participant’s Employment terminates as a result of his or her (i) death or (ii) Disability, then the Restricted Shares for which a Vesting Date has not yet occurred and
all Retained Distributions relating `thereto shall fully vest on the date of any such termination. [An alternative is not to accelerate vesting of Shares that were unvested as of the date of death or Disability.] 

  

	 	c)	If the Participant’s Employment is terminated by the Company and its Affiliates for any reason other than for Cause (unless such termination is due to death or Disability),
then a pro rata portion of the Restricted Shares that would vest on the next Vesting Date, and any Retained Distributions relating thereto, shall become vested determined as follows: 

  

	 	(x)	the number of Restricted Shares covered by the portion of the Award that would vest on the next Vesting Date multiplied by; 

  

	 	(y)	a fraction, the numerator of which shall be the number of days from the last Vesting Date (or the Date of Grant if there has not yet occurred a Vesting Date) preceding the date of
such termination of Employment through the date of such termination, and the denominator of which shall be the number of days from the last Vesting Date (or the Date of Grant if there has not yet occurred a Vesting Date) through the next succeeding
Vesting Date. 

  
 If the product of (x) and (y)
results in a fractional share, such fractional share shall be rounded to the next higher whole share. 
  
 The Restricted Shares and any Retained Distributions related thereto that have not vested shall be completely forfeited on the date of any such
termination. 
  
 For purposes of this paragraph 7, a temporary
leave of absence shall not constitute a termination of Employment or a failure to be continuously employed by the Company or any Affiliate regardless of the Participant’s payroll status during such leave of absence if such leave of absence is
approved in writing by the Company or any Affiliate, subject to the other terms and conditions of the Agreement and the Plan. 
  
 In the event the Participant’s Employment with the Company or any of its Affiliates is terminated, the Participant shall have no claim against the
Company with respect to the Restricted Shares and related Retained Distributions, if any, other than as set forth in this paragraph 7, the provisions of this paragraph 7 being the sole remedy of the Participant with respect thereto. 
  

 4 

	8.	Acceleration of Vesting Date. In the event a Change in Control, subject to paragraph 9, has occurred, the Award will vest in full upon the earlier of (i) the expiration of the
one-year period immediately following the Change in Control, provided the Participant’s Employment with the Company and its Affiliates has not terminated, (ii) the original Vesting Date with respect to each portion of the Award, or (iii) the
termination of the Participant’s Employment by the Company or any of its Affiliates (A) by the Company other than for Cause (unless such termination is due to death or Disability) or (B) by the Participant for Good Reason. In the event of any
such vesting as described in clauses (i) and (iii) of the preceding sentence, the date described in such clauses shall be treated as the Vesting Date. 

  

	9.	Limitation on Acceleration. Notwithstanding any provision to the contrary in the Plan or this Agreement, if the Payment (as hereinafter defined) due to the Participant hereunder as
a result of the acceleration of vesting of the Restricted Shares pursuant to paragraph 8 of this Agreement, either alone or together with all other Payments received or to be received by the Participant from the Company or any of its Affiliates
(collectively, the “Aggregate Payments”), or any portion thereof, would be subject to the excise tax imposed by Section 4999 of the Code (or any successor thereto), the following provisions shall apply: 

  

	 	a)	If the net amount that would be retained by the Participant after all taxes on the Aggregate Payments are paid would be greater than the net amount that would be retained by the
Participant after all taxes are paid if the Aggregate Payments were limited to the largest amount that would result in no portion of the Aggregate Payments being subject to such excise tax, the Participant shall be entitled to receive the Aggregate
Payments. 

  

	 	b)	If, however, the net amount that would be retained by the Participant after all taxes were paid would be greater if the Aggregate Payments were limited to the largest amount that
would result in no portion of the Aggregate Payments being subject to such excise tax, the Aggregate Payments to which the Participant is entitled shall be reduced to such largest amount. 

  
 The term “Payment” shall mean any transfer of property within the
meaning of Section 280G of the Code. 
  
 The determination of
whether any reduction of Aggregate Payments is required and the timing and method of any such required reduction in Payments under this Agreement or in any such other Payments otherwise payable by the Company or any of its Affiliates consistent with
any such required reduction, shall be made by the Participant, including whether any portion of such reduction shall be applied against any cash or any shares of stock of the Company or any other securities or property to which the Participant would
otherwise have been entitled under this Agreement or under any such other Payments, and whether to waive the right to the acceleration of the Payment due under this Agreement or any portion thereof or under any such other Payments or portions
thereof, and all such determinations shall be conclusive and binding on the Company and its 

  

 5 

 
Affiliates. To the extent that Payments hereunder or any such other Payments are not paid as a consequence of the limitation contained in this paragraph 9,
then the Restricted Shares and Retained Distributions related thereto (to the extent not so accelerated) and such other Payments (to the extent not vested) shall be deemed to remain outstanding and shall be subject to the provisions hereof and of
the Plan as if no acceleration or vesting had occurred. Under such circumstances, if the Participant terminates Employment for Good Reason or is terminated by the Company or any of its Affiliates without Cause, the Restricted Shares and Retained
Distributions related thereto (to the extent that they have not already become vested) shall become immediately vested in their entirety upon such termination subject to the provisions relating to Section 4999 of the Code set forth herein.

  
 The Company shall promptly pay, upon demand by the
Participant, all legal fees, court costs, fees of experts and other costs and expenses which the Participant incurred in any actual, threatened or contemplated contest of the Participant’s interpretation of, or determination under, the
provisions of this paragraph 9. 
  

	10.	Withholding Taxes. The Participant agrees that, subject to paragraph 11 hereof, 

  

	 	a)	Obligation to Pay Withholding Taxes. Upon the vesting of any portion of the Award of Restricted Shares and the Retained Distributions relating thereto, the Participant will be
required to pay to the Company any applicable Federal, state, local or foreign withholding tax due as a result of such vesting. The Company’s obligation to deliver the Restricted Shares or Retained Distributions shall be subject to such
payment. The Company and its Affiliates shall, to the extent permitted by law, have the right to deduct from any payment of any kind otherwise due to the Participant any Federal, state, local or foreign withholding taxes due with respect to such
vesting. 

  

	 	b)	Payment of Taxes with Stock. Subject to the Committee’s right to disapprove any such election and require the Participant to pay the required withholding tax in cash and
subject to paragraph 11 hereof, the Participant shall have the right to elect to pay the required withholding tax with Shares to be received upon vesting or which are otherwise owned by the Participant. Unless the Company shall permit another
valuation method to be elected by the Participant, Shares used to pay any required withholding taxes shall be valued at the mean between the high and low sales price of a Share as reported on the Nasdaq National Market on the date the withholding
tax becomes due (hereinafter called the “Tax Date”). 

  

	 	c)	Conditions to Payment of Taxes with Stock. Any election to pay withholding taxes with stock must be made on or prior to the Tax Date and will be irrevocable once made. Any such
election must be made in conformity with conditions established by the Committee from time to time. 

  

	11.	 Section 83(b) Election. If the Participant properly elects (which, apart from any other notice required by law, shall require that the Participant notify the
Company of such election at the time it is made) within 30 days after the Date of Grant or, in certain 

  

 6 

	 	 
circumstances, within 30 days after the date any condition precedent to the Award is satisfied, to include in gross income for Federal income tax purposes an
amount equal to the fair market value of such Restricted Shares on the Date of Grant, the holder shall promptly pay to the Company any Federal, state, local or foreign withholding taxes due with respect to such Restricted Shares. If the Participant
fails to make such payment, the Company and its Affiliates shall, to the extent permitted by law, have the right to deduct from any payment of any kind otherwise due to the Participant any Federal, state, local or foreign withholding taxes due with
respect to such Restricted Shares. Participants may use Shares otherwise owned by them to pay such withholding taxes provided such Participants comply with the provisions of paragraph 10 hereof, including paragraph 10(c).

  

	12.	Changes in Capitalization and Government and Other Regulations. The Award shall be subject to all of the terms and provisions as provided in this Agreement and in the Plan, which
are incorporated by reference herein and made a part hereof, including, without limitation, the provisions of Section 10 of the Plan (generally relating to adjustments to the number of Shares subject to the Award, upon certain changes in
capitalization and certain reorganizations and other transactions). 

  

	13.	Forfeiture and Call Option. The Company and the Participant agree as follows: 

  

	 	a)	Forfeiture. A breach of any of the foregoing restrictions or a breach of any of the other restrictions, terms and conditions of the Plan or this Agreement, with respect to any of
the Restricted Shares or any Retained Distributions relating thereto, except as waived by the Board or the Committee, will cause a forfeiture of such Restricted Shares and any Retained Distributions relating thereto. 

  

	 	b)	Call Option. If Participant’s Employment with the Company is terminated by Participant or the Company other than (i) death, (ii) Disability, (iii) by the Participant for Good
Reason or (iv) by the Company without Cause, within three years after the last Vesting Date, the Company will have an option to repurchase the Restricted Shares for the Purchase Price that is set forth in the Notice which may be exercised by
delivery of written notice of exercise to the Participant not later than 30 days after termination of Participant’s Employment. Payment of the Purchase Price will be made by check within 15 days after the date the Company notifies the
Participant of the exercise of the Call Option. 

  

	14.	Right of Company to Terminate Employment. Nothing contained in the Plan or this Agreement shall confer on any Participant any right to continue in the employ of the Company or any
of its Affiliates and the Company and any such Affiliate shall have the right to terminate the Employment of the Participant at any such time, with or without cause, notwithstanding the fact that some or all of the Restricted Shares and Retained
Distributions covered by this Agreement may be forfeited as a result of such termination. 

  

	15.	 Notices. Any notice which either party hereto may be required or permitted to give the other shall be in writing and may be delivered personally or by mail, postage
prepaid, 

  

 7 

	 	 
addressed to Anna’s Linens, Inc. at 3550 Hyland Avenue, Costa Mesa, California 92626 , attention Director, Human Resources, and to the Participant at
his or her address, as it is shown on the records of the Company or its Affiliate, or in either case to such other address as the Company or the Participant, as the case may be, by notice to the other may designate in writing from time to time.

  

	16.	Interpretation and Amendments. The Board and the Committee (to the extent delegated by the Board) have plenary authority to interpret this Agreement and the Plan, to prescribe,
amend and rescind rules relating thereto and to make all other determinations in connection with the administration of the Plan. The Board or the Committee may from time to time modify or amend this Agreement in accordance with the provisions of the
Plan, provided that no such amendment shall adversely affect the rights of the Participant under this Agreement without his or her consent. 

  

	17.	Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Company and its successors and assigns, and shall be binding upon and inure to the
benefit of the Participant and his or her legatees, distributees and personal representatives. 

  

	18.	Copy of the Plan. By entering into the Agreement, the Participant agrees and acknowledges that he or she has received and read a copy of the Plan. 

  

	19.	Governing Law. The Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware without regard to any choice of law rules thereof which might
apply the laws of any other jurisdiction. 

  

	20.	Waiver of Jury Trial. To the extent not prohibited by applicable law which cannot be waived, each party hereto hereby waives, and covenants that it will not assert (whether as
plaintiff, defendant or otherwise), any right to trial by jury in any forum in respect of any suit, action, or other proceeding arising out of or based upon this Agreement. 

  

	21.	Submission to jurisdiction; Service of Process. Each of the parties hereto hereby irrevocably submits to the jurisdiction of the state courts of the State of
                         and the jurisdiction of the United States District Court for the District of
                             for the purposes of any suit, action or other proceeding arising out of
or based upon this Agreement. Each of the parties hereto to the extent permitted by applicable law hereby waives, and agrees not to assert, by way of motion, as a defense, or otherwise, in any such suit, action or proceeding brought in such courts,
any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution, that such suit, action or proceeding in the above-referenced courts is brought in an
inconvenient forum, that the venue of such suit, action or proceedings, is improper or that this Agreement may not be enforced in or by such court. Each of the parties hereto hereby consents to service of process by mail at its address to which
notices are to be given pursuant to paragraph 15 hereof. 

  

 8 

	22.	Personal Data. The Company, the Participant’s local employer and the local employer’s parent company or companies may hold, collect, use, process and transfer, in
electronic or other form, certain personal information about the Participant for the exclusive purpose of implementing, administering and managing the Participant’s participation in the Plan. Participant understands that the following personal
information is required for the above named purposes: his/her name, home address and telephone number, office address (including department and employing entity) and telephone number, e-mail address, date of birth, citizenship, country of residence
at the time of grant, work location country, system employee ID, employee local ID, employment status (including international status code), supervisor (if applicable), job code, title, salary, bonus target and bonuses paid (if applicable),
termination date and reason, tax payer’s identification number, tax equalization code, US Green Card holder status, contract type (single/dual/multi), any shares of stock or directorships held in the Company, details of all awards of Restricted
Shares (including number of grants, grant dates, price, vesting type, vesting dates, and any other information regarding Restricted Shares that have been granted, canceled, vested, or forfeited) with respect to the Participant, estimated tax
withholding rate, brokerage account number (if applicable), and brokerage fees (the “Data”). Participant understands that Data may be collected from the Participant directly or, on Company’s request, from Participant’s local
employer. Participant understands that Data may be transferred to third parties assisting the Company in the implementation, administration and management of the Plan, including the brokers approved by the Company, the broker selected by the
Participant from among such Company-approved brokers (if applicable), tax consultants and the Company’s software providers (the “Data Recipients”). Participant understands that some of these Data Recipients may be located outside the
Participant’s country of residence, and that the Data Recipient’s country may have different data privacy laws and protections than the Participant’s country of residence. Participant understands that the Data Recipients will receive,
possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing the Participant’s participation in the Plan, including any requisite transfer of such Data as may be required
for the administration of the Plan and/or the subsequent holding of shares of common stock on the Participant’s behalf by a broker or other third party with whom the Participant may elect to deposit any shares of common stock acquired pursuant
to the Plan. Participant understands that Data will be held only as long as necessary to implement, administer and manage the Participant’s participation in the Plan. Participant understands that Data may also be made available to public
authorities as required by law, e.g., to the U.S. government. Participant understands that the Participant may, at any time, review Data and may provide updated Data or corrections to the Data by written notice to the Company. Except to the extent
the collection, use, processing or transfer of Data is required by law, Participant may object to the collection, use, processing or transfer of Data by contacting the Company in writing. Participant understands that such objection may affect
his/her ability to participate in the Plan. Participant understands that he/she may contact the Company’s Human Resources Director to obtain more information on the consequences of such objection. 

  

 9 

	23.	Consent of Spouse. If the Participant is married as of the date of this Agreement, the Participant’s spouse shall execute a Consent of Spouse in the form of Exhibit A hereto,
effective as of the date hereof. Such consent shall not be deemed to confer or convey to the spouse any rights in the Restricted Shares that do not otherwise exist by operation of law or the agreement of the parties. If the Participant marries or
remarries subsequent to the date hereof, the Participant shall, not later than 60 days thereafter, obtain the new spouse’s acknowledgement of and consent to the existence and binding effect of all restrictions contained in this Agreement by
such spouse’s executing and delivering a Consent of Spouse in the form of Exhibit A. 

  
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the      day of
                        , 200_ at
                                        .

  

					
	COMPANY
	
	ANNA’S LINENS, INC.
		
	By:	 	 
	 	 	 Its:
	 	 

					
	
	PARTICIPANT
	
	 
	 Name:
	 	 

  

 10 

  
 Exhibit A 

 
 CONSENT OF SPOUSE 
  
 I,
                                        
             spouse of
                                        
            , acknowledge that I have read the RESTRICTED STOCK AWARD AGREEMENT dated as of
                                 (the “Agreement”) to which this Consent
is attached as Exhibit A and that I know its contents. Capitalized terms used and not defined herein shall have the meaning assigned to such terms in the Agreement. I am aware that by its provisions the Restricted Shares granted to my spouse
pursuant to the Agreement are subject to forfeiture and a call option in favor of Anna’s Linens, Inc. (the “Company”) and that, accordingly, the Company has the right to cause the forfeiture of and to repurchase up to all of the
Restricted Shares of which I may become possessed as a result of a gift from my spouse or a court decree and/or any property settlement in any domestic litigation. 
  
 I hereby agree that my interest, if any, in the Restricted Shares subject to the Agreement shall be irrevocably bound by the
Agreement and further understand and agree that any community property interest I may have in the Restricted Shares shall be similarly bound by the Agreement. 
  

I agree to the forfeiture provisions described in the Agreement and I hereby consent to the forfeiture or repurchase of the Restricted Shares by the
Company in the Agreement, I agree that at my death, if I have not disposed of any interest of mine in the Restricted Shares by an outright bequest of the Restricted Shares to my spouse, then the Company shall have the same rights against my legal
representative to exercise its rights of repurchase with respect to any interest of mine in the Restricted Shares as it would have had pursuant to the Agreement if I had acquired the Restricted Shares pursuant to a court decree in domestic
litigation. 
  
 I AM AWARE THAT THE LEGAL, FINANCIAL AND RELATED
MATTERS CONTAINED IN THE AGREEMENT ARE COMPLEX AND THAT I AM FREE TO SEEK INDEPENDENT PROFESSIONAL GUIDANCE OR COUNSEL WITH RESPECT TO THIS CONSENT. I HAVE EITHER SOUGHT SUCH GUIDANCE OR COUNSEL OR DETERMINED AFTER REVIEWING THE AGREEMENT CAREFULLY
THAT I WILL WAIVE SUCH RIGHT. 
  
 Dated as of the
         day of                 ,             .

  

	
	
	 
	 Signature

	
	 
	 Printed name

  

 11 

  
 Attachment A

 To 
 Notice of
Grant of Restricted Stock 
  
 (If Performance Vesting Terms are
Set Forth Below, a copy of this Attachment must be 
 attached to the Restricted Stock Agreement) 
  

 12

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