Document:

EX-10.1

Exhibit 10.1

HYPERION SOLUTIONS CORPORATION

2004 EQUITY INCENTIVE PLAN

NOTICE OF GRANT OF RESTRICTED STOCK

Recipient Name

Mailing Address

City, State Zip

Unless otherwise defined herein, the terms defined in the 2004 Equity Incentive Plan shall
have the same defined meanings in the attached Restricted Stock Purchase Agreement (the
“Agreement”).

You have been granted the right to purchase Common Stock of the Company, subject to the terms
and conditions of the Plan and this Agreement, as follows:

	 	 	 	 	 
	Grant Number
Date of Grant
Exercise Price Per Share
	 	$	0.001	 
	Total Number of Shares Subject to This Stock Purchase Right
Total Exercise Price
	 	 	 	 

YOU MUST EXERCISE THIS STOCK PURCHASE RIGHT BEFORE THE EXPIRATION DATE OR IT WILL TERMINATE
AND YOU WILL HAVE NO FURTHER RIGHT TO PURCHASE THE SHARES.

This Stock Purchase Right is granted under and subject to all of the terms, restrictions and
rights set forth in both the Plan itself and the Restricted Stock Purchase Agreement between
Hyperion and the Purchaser.

1

HYPERION SOLUTIONS CORPORATION

RESTRICTED STOCK PURCHASE AGREEMENT

This Restricted Stock Purchase Agreement (this “Agreement”) is made and entered into as of
     , 2006 by and between Recipient (“Purchaser”) and Hyperion Solutions Corporation, a Delaware
Corporation (the “Company”). All terms used herein without definition shall have the meanings
ascribed to them in the Company’s 2004 Equity Incentive Plan, as amended (the “Plan”).

WHEREAS, the Purchaser is a member of the Board of Directors, and the Purchaser’s continued
participation is considered by the Company to be important for the Company’s continued growth; and

WHEREAS, in order to give the Purchaser an opportunity to acquire an equity interest in the
Company as an incentive for the Purchaser to participate in the affairs of the Company, the
Administrator has granted to the Purchaser a Stock Purchase Right subject to the terms and
conditions of the Plan and the Notice of Grant, which are incorporated herein by reference.

NOW THEREFORE, the parties agree as follows:

1. Purchase and Sale of Stock. The Company hereby sells to the Purchaser and the
Purchaser hereby purchases from the Company      shares of the Company’s Common Stock (the
“Shares”) at a purchase price equal to $0.001 per share (the “Purchase Price”). The Company hereby
acknowledges receipt of the Purchase Price.

• Repurchase Option.

a. In the event the Purchaser ceases to be an Employee for any or no reason (including death
or disability) before all of the Shares are released from the Company’s Repurchase Option (see
Section 3), the Company shall, upon the date of such termination (as reasonably fixed and
determined by the Company) have an irrevocable, exclusive option (the “Repurchase Option”) to
repurchase at a price equal to $0.001 per share, up to that number of shares which constitute the
Unvested Shares (as defined in Section 3). The Repurchase Option shall be exercised by the Company
by delivering written notice to the Purchaser or the Purchaser’s executor (with a copy to the
Escrow Holder), together with payment therefor. Upon delivery of such notice and payment, the
Company shall become the legal and beneficial owner of the Shares being repurchased and all rights
and interests therein or relating thereto, and the Company shall have the right to retain and
transfer to its own name the number of Shares being repurchased by the Company.

b. Whenever the Company shall have the right to repurchase Shares hereunder, the Company may
designate and assign one or more employees, officers, directors or stockholders of the Company or
other persons or organizations to exercise all or a part of the Company’s acquisition rights under
this Agreement.

• Release of Shares From Repurchase Option.

The Shares shall be released from the Company’s Repurchase Option as follows:

c. Any of the Shares that have not yet been released from the Repurchase Option are referred
to herein as “Unvested Shares.”

d. The Shares that have been released from the Repurchase Option shall be delivered to the
Purchaser at the Purchaser’s request (see Section 5).

• Restriction on Transfer. Except for the escrow described in Section 5 or the
transfer of the Shares to the Company or its assignees contemplated by this Agreement, none of the
Shares or any beneficial interest therein shall be transferred, encumbered or otherwise disposed of
in any way until such Shares are released from the Company’s Repurchase Option in accordance with
the provisions of this Agreement, other than by will or the laws of descent and distribution.

• Escrow of Shares.

e. To ensure the availability for delivery of the Purchaser’s Unvested Shares upon repurchase
by the Company pursuant to the Repurchase Option, the Company shall, upon execution of this
Agreement, deliver and deposit with the Secretary of the Corporation as an escrow holder designated
by the Company (the “Escrow Holder”) the share certificates representing the Unvested Shares,
together with the stock assignment duly endorsed by the Purchaser in blank, attached hereto as
Exhibit 1. The Unvested Shares and stock assignment shall be held by the Escrow Holder, pursuant
to the Joint Escrow Instructions of the Company and Purchaser attached hereto as Exhibit 2, until
such time as the Company’s Repurchase Option expires. As a further condition to the Company’s
obligations under this Agreement, the Company may require the spouse of Purchaser, if any, to
execute and deliver to the Company the Consent of Spouse attached hereto as Exhibit 3.

f. The Escrow Holder shall not be liable for any act it may do or omit to do with respect to
holding the Unvested Shares in escrow while acting in good faith and in the exercise of its
judgment.

g. If the Company or any assignee exercises the Repurchase Option hereunder, the Escrow
Holder, upon receipt of written notice of such exercise from the proposed transferee, shall take
all steps necessary to accomplish such transfer.

h. When the Repurchase Option has been exercised or expires unexercised or a portion of the
Shares has been released from the Repurchase Option, upon request the Escrow Holder shall promptly
cause a new certificate to be issued for the released Shares and shall deliver the certificate to
the Company or the Purchaser, as the case may be.

i. Subject to the terms hereof, the Purchaser shall have all the rights of a stockholder with
respect to the Shares while they are held in escrow, including without limitation, the right to
vote the Shares and to receive any cash dividends declared thereon. If, from time to time during
the term of the Repurchase Option, there is (i) any stock dividend, stock split or other change in
the Shares, or (ii) any merger or sale of all or substantially all of the assets or other
acquisition of the Company, any and all new, substituted or additional securities to which the
Purchaser is entitled by reason of the Purchaser’s ownership of the Shares shall be immediately
subject to this escrow, deposited with the Escrow Holder and included thereafter as “Shares” for
purposes of this Agreement and the Repurchase Option.

• Legends. The share certificate evidencing the Shares, if any, issued
hereunder shall be endorsed with the following legend (in addition to any legend required under
applicable state securities laws):

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS UPON
TRANSFER AND RIGHTS OF REPURCHASE AS SET FORTH IN AN AGREEMENT BETWEEN THE COMPANY
AND THE STOCKHOLDER, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY.

• Adjustment for Stock Split. All references to the number of Shares in this
Agreement shall be appropriately adjusted to reflect any stock split, stock dividend or other
change in the Shares that may be made by the Company after the date of this Agreement.

• Tax Consequences. The Purchaser has reviewed with the Purchaser’s own tax
advisors the federal, state, local and foreign tax consequences of this investment and the
transactions contemplated by this Agreement. The Purchaser is relying solely on such advisors and
not on any statements or representations of the Company or any of its agents. The Purchaser
understands that the Purchaser (and not the Company) shall be responsible for the Purchaser’s own
tax liability that may arise as a result of the transactions contemplated by this Agreement. The
Purchaser understands that Section 83 of the Internal Revenue Code of 1986, as amended (the
“Code”), taxes as ordinary income the difference between the purchase price of the Shares and
the Fair Market Value of the Shares as of the date any restrictions on the Shares lapse. In
this context, “restriction” includes the right of the Company to repurchase the Shares pursuant to
the Repurchase Option. The Purchaser understands that the Purchaser may elect to be taxed at the
time the Shares are acquired rather than when and as the Repurchase Option expires by filing an
election under Section 83(b) of the Code with the IRS within 30 days from the date of purchase.

THE PURCHASER ACKNOWLEDGES THAT (i) MULTIPLE PROTECTIVE ELECTIONS MAY BE FILED UNDER SECTION 83(b)
AND (ii) IT IS THE PURCHASER’S SOLE RESPONSIBILITY AND NOT THE COMPANY’S TO FILE TIMELY THE
ELECTION UNDER SECTION 83(b) WITHIN 30 DAYS AFTER THE DATE OF THIS AGREEMENT.

9. General Provisions.

j. This Agreement shall be governed by the internal substantive laws, but not the choice of
law rules of California. This Agreement, subject to the terms and conditions of the Plan and the
Notice of Grant, represents the entire agreement between the parties with respect to the
acquisition of the Shares by the Purchaser. In the event of a conflict between the terms and
conditions of the Plan and the terms and conditions of this Agreement, the terms and conditions of
the Plan shall prevail. In the event of a conflict between the terms and conditions of this
Agreement and the terms and conditions of the Notice of Grant, including without limitations the
purchase price and escrow provisions contained herein, the terms and conditions of this Agreement
shall prevail.

k. Any notice, demand or request required or permitted to be given by either the Company or
the Purchaser pursuant to the terms of this Agreement shall be in writing and shall be deemed given
when delivered personally or deposited in the U.S. mail, First Class with postage prepaid, and
addressed to the parties at the addresses of the parties set forth at the end of this Agreement or
such other address as a party may request by notifying the other in writing. Any notice to the
Escrow Holder shall be sent to the Company’s address with a copy to the other party hereto.

l. The rights of the Company under this Agreement shall be transferable to any one or more
persons or entities, and all covenants and agreements hereunder shall inure to the benefit of, and
be enforceable by the Company’s successors and assigns. The rights and obligations of the Purchaser
under this Agreement may only be assigned with the prior written consent of the Company.

m. Either party’s failure to enforce any provision of this Agreement shall not in any way be
construed as a waiver of any such provision, nor prevent that party from thereafter enforcing any
other provision of this Agreement. The rights granted both parties hereunder are cumulative and
shall not constitute a waiver of either party’s right to assert any other legal remedy available to
it.

n. The Purchaser agrees upon request to execute any further documents or instruments necessary
or desirable to carry out the purposes or intent of this Agreement.

o. PURCHASER ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT TO SECTION 3 HEREOF
IS EARNED ONLY BY CONTINUING SERVICE AS AN EMPLOYEE AT THE WILL OF THE COMPANY (AND NOT THROUGH THE
ACT OF BEING HIRED OR ACQUIRING SHARES HEREUNDER). PURCHASER FURTHER ACKNOWLEDGES AND AGREES THAT
THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN
DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS AN EMPLOYEE FOR THE
VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND SHALL NOT INTERFERE WITH PURCHASER’S RIGHT OR THE
COMPANY’S RIGHT TO TERMINATE PURCHASER’S RELATIONSHIP AS AN EMPLOYEE AT ANY TIME, WITH OR WITHOUT
CAUSE.

By Purchaser’s signature below, Purchaser represents that he or she is familiar with the terms
and provisions of the Plan, and hereby accepts this Agreement subject to all of the terms and
provisions thereof. Purchaser has reviewed the Plan and this Agreement in their entirety, has had
an opportunity to obtain the advice of counsel prior to executing this Agreement and fully
understands all provisions of this Agreement. Purchaser agrees to accept as binding, conclusive
and final all decisions or interpretations of the Administrator upon any questions arising under
the Plan or this Agreement. Purchaser further agrees to notify the Company upon any change in the
residence indicated in the Notice of Grant.

	 	 	 	 	 
	Send Notices to the following addresses:
	 	To Hyperion At:

	 
	 	General Counsel

	 
	 	Hyperion Solutions Corporation

	 
	 	5450 Great America Parkway
	 
	 	Santa Clara, CA   95054

	Recipient
Address
City, State Zip
	 	 	 	 
	With a copy of the notice sent to:
	 	Stock Administration

	 
	 	Hyperion Solutions Corporation

	 
	 	5450 Great America Parkway
	 
	 	Santa Clara, CA   95054

DATED: June 26, 2006

PURCHASER HYPERION SOLUTIONS CORPORATION

	 	 	 	 	 
	
 
	 	By:
	 	

	 

	 	 	 	 
	Recipient

	 	 	 	Godfrey Sullivan

President & Chief Executive Officer

2

EXHIBIT 1

ASSIGNMENT SEPARATE FROM CERTIFICATE

FOR VALUE RECEIVED I, Recipient, hereby sell, assign and transfer unto [Number of shares
spelled out (Number of shares)] shares of the Common Stock of Hyperion Solutions Corporation
standing in my name of the books of said corporation represented by Certificate No. herewith and do
hereby irrevocably constitute and appoint to transfer the said stock on the books of the within
named corporation with full power of substitution in the premises.

This Stock Assignment may be used only in accordance with the Restricted Stock Purchase Agreement
(the “Agreement”) between Hyperion Solutions Corporation and the undersigned dated , 20     .

	 	 	 
	Dated:

	 	, 20     
	 

	 	

	Signature:

	 	

	
 
	 	 

INSTRUCTIONS: Please do not fill in any blanks other than the signature line. The purpose of this
assignment is to enable the Company to exercise the Repurchase Option, as set forth in the
Agreement, without requiring additional signatures on the part of the Purchaser.

3

EXHIBIT 2

JOINT ESCROW INSTRUCTIONS

Corporate Secretary

Hyperion Solutions Corporation

5450 Great America Parkway

Santa Clara, CA 95054

Dear Corporate Secretary:

As Escrow Agent for both Hyperion Solutions Corporation, a Delaware corporation (the
“Company”), and the undersigned purchaser (the “Purchaser”), you are hereby authorized and directed
to hold the documents delivered to you pursuant to the terms of that certain Restricted Stock
Purchase Agreement (“Agreement”) between the Company and the undersigned, in accordance with the
following instructions:

1. In the event the Company and/or any assignee of the Company (referred to collectively as
the “Company”) exercises the Company’s Repurchase Option set forth in the Agreement, the Company
shall give to Purchaser and you a written notice specifying the number of shares of stock to be
repurchased and the time for a closing hereunder at the principal office of the Company. Purchaser
and the Company hereby irrevocably authorize and direct you to close the transaction contemplated
by such notice in accordance with the terms of said notice.

2. At the closing, you are directed (a) to date the stock assignments necessary for the
transfer in question, (b) to fill in the number of shares being transferred, and (c) to deliver
same, together with the certificate evidencing the shares of stock to be transferred, to the
Company or its assignee pursuant to the exercise of the Company’s Repurchase Option.

3. Purchaser irrevocably authorizes the Company to deposit with you any certificates
evidencing shares of stock to be held by you hereunder and any additions and substitutions to said
shares as defined in the Agreement. Purchaser does hereby irrevocably constitute and appoint you
as Purchaser’s attorney-in-fact and agent for the term of this escrow to execute with respect to
such securities all documents necessary or appropriate to make such securities negotiable and to
complete any transaction herein contemplated, including but not limited to the filing with any
applicable state blue sky authority of any required applications for consent to, or notice of
transfer of, the securities. Subject to the provisions of this paragraph 3, Purchaser shall
exercise all rights and privileges of a stockholder of the Company while the stock is held by you.

4. Upon written request of the Purchaser, but no more than once per calendar year, unless the
Company’s Repurchase Option has been exercised, you shall deliver to Purchaser a certificate or
certificates representing so many shares of stock as are not then subject to the Company’s
Repurchase Option. Within 90 days after Purchaser ceases to be an Employee, you shall deliver to
Purchaser a certificate or certificates representing the aggregate number of shares held or issued
pursuant to the Agreement and not acquired by the Company or its assignees pursuant to exercise of
the Company’s Repurchase Option.

5. If at the time of termination of this escrow you should have in your possession any
documents, securities, or other property belonging to Purchaser, you shall deliver all of the same
to Purchaser and shall be discharged of all further obligations hereunder.

6. Your duties hereunder may be altered, amended, modified or revoked only by a writing signed
by all of the parties hereto.

7. You shall be obligated only for the performance of such duties as are specifically set
forth herein and may rely and shall be protected in relying or refraining from acting on any
instrument reasonably believed by you to be genuine and to have been signed or presented by the
proper party or parties. You shall not be personally liable for any act you may do or omit to do
hereunder as Escrow Agent or as attorney-in-fact for Purchaser while acting in good faith, and any
act done or omitted by you pursuant to the advice of your own attorneys shall be conclusive
evidence of such good faith.

8. You are hereby expressly authorized to disregard any and all warnings given by any of the
parties hereto or by any other person or corporation, excepting only orders or process of courts of
law, and are hereby expressly authorized to comply with and obey orders, judgments or decrees of
any court. In case you obey or comply with any such order, judgment or decree, you shall not be
liable to any of the parties hereto or to any other person, firm or corporation by reason of such
compliance, notwithstanding any such order, judgment or decree being subsequently reversed,
modified, annulled, set aside, vacated or found to have been entered without jurisdiction.

9. You shall not be liable in any respect on account of the identity, authorities or rights of
the parties executing or delivering or purporting to execute or deliver the Agreement or any
documents or papers deposited or called for hereunder.

10. You shall not be liable for the outlawing of any rights under the statute of limitations
with respect to these Joint Escrow Instructions or any documents deposited with you.

11. You shall be entitled to employ such legal counsel and other experts as you may deem
necessary properly to advise you in connection with your obligations hereunder, may rely upon the
advice of such counsel, and may pay such counsel reasonable compensation therefore.

12. Your responsibilities as Escrow Agent hereunder shall terminate if you shall cease to be
an officer or agent of the Company or if you shall resign by written notice to each party. In the
event of any such termination, the Company shall appoint a successor Escrow Agent.

13. If you reasonably require other or further instruments in connection with these Joint
Escrow Instructions or obligations in respect hereto, the necessary parties hereto shall join in
furnishing such instruments.

14. It is understood and agreed that should any dispute arise with respect to the delivery
and/or ownership or right of possession of the securities held by you hereunder, you are authorized
and directed to retain in your possession without liability to anyone all or any part of said
securities until such disputes shall have been settled either by mutual written agreement of the
parties concerned or by a final order, decree or judgment of a court of competent jurisdiction
after the time for appeal has expired and no appeal has been perfected, but you shall be under no
duty whatsoever to institute or defend any such proceedings.

15. Any notice required or permitted hereunder shall be given in writing and shall be deemed
effectively given upon personal delivery or upon deposit in the United States Post Office, by
registered or certified mail with postage and fees prepaid, addressed to each of the other parties
thereunto entitled at the following addresses or at such other addresses as a party may designate
by ten days’ advance written notice to each of the other parties hereto.

COMPANY: Hyperion Solutions Corporation

	 	 	 
	5450 Great America Parkway

	 
	 	 
	ESCROW AGENT:

	 	Santa Clara, CA 95054

Corporate Secretary

Hyperion Solutions Corporation

5450 Great America Parkway

Santa Clara, CA 95054

16. By signing these Joint Escrow Instructions, you become a party hereto only for the purpose
of said Joint Escrow Instructions; you do not become a party to the Agreement.

17. This instrument shall be binding upon and inure to the benefit of the parties hereto, and
their respective successors and permitted assigns.

18. These Joint Escrow Instructions shall be governed by, and construed and enforced in
accordance with, the internal substantive laws, but not the choice of law rules, of California.

Very truly yours,

HYPERION SOLUTIONS CORPORATION

By:

Godfrey Sullivan

President & Chief Executive Officer

PURCHASER

Recipient

4

5

EXHIBIT 3

CONSENT OF SPOUSE

I, , spouse of Recipient, have read and approve the foregoing Restricted Stock Purchase
Agreement (the “Agreement”). In consideration of the Company’s grant to my spouse of the right to
acquire shares of Hyperion Solutions Corporation, as set forth in the Agreement, I hereby appoint
my spouse as my attorney-in-fact in respect to the exercise of any rights under the Agreement and
agree to be bound by the provisions of the Agreement insofar as I may have any rights in said
Agreement or any shares issued pursuant thereto under the community property laws or similar laws
relating to marital property in effect in the state of our residence as of the date of the signing
of the foregoing Agreement.

Dated: , 2006

Spouse Signature

6Filing

Class "A" Warrants

EX-4.1

Class “A” Warrants

No. of Shares: ________                

THIS WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER ANY STATE SECURITIES LAWS.  THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED, SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THESE SECURITIES UNDER THE ACT OR APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER THAT ANY PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS.  HOLDERS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME.

TOOTIE PIE COMPANY, INC.

COMMON SHARE PURCHASE WARRANT

FOR VALUE RECEIVED, _________________ (the “Holder”), is entitled to purchase from Tootie Pie Company, Inc., a Nevada corporation (the “Company”), subject to the terms and conditions herein set forth, at any time before 5:00 p.m. Central Standard Time (CST) time on December 31, 2007, such date being referred to herein as the “Expiration Day”, _________ shares of duly authorized, validly issued, fully paid and nonassessable shares of Common Stock of the Company, par value $0.001 per share (the “Warrant Shares”), subject to adjustment of the number or kind of shares constituting the Warrant Shares as hereinafter provided.  The Holder is entitled to purchase the Warrant Shares for $0.50 per share, subject to adjustment as hereinafter provided (the “Exercise Price”), and is entitled also to exercise the other appurtenant rights, powers, and privileges hereinafter set forth.  The Company may lower the Exercise Price or extend the Expiration Day at its sole discretion.

ARTICLE 1

DEFINITIONS

For all purposes of this Warrant, unless the context otherwise requires, the following terms have the following meanings:

1.1

“Affiliate” shall mean, with respect to any Person, any other Person that directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with the Person specified, and, in the case of a Person who is a natural person, shall include any member of the immediate family of such Person or any trust for the benefit of said family members.

1.2   “Call Notice” means a written demand by the Company for the exercise of this Warrant in accordance with Section 5.1

1.3

“Common Stock” means the Company’s authorized common stock, par value $0.001 per share.

1.4

“Company” means Tootie Pie Company, Inc., a corporation organized and existing under the laws of the State of Nevada, and any successor corporation.

1.5

“Exercise Price” means the exercise price for the Warrant Shares established in accordance with Article 4.

1.6

“Expiration Date” means the earlier of a) December 31, 2007, or b) 10 days after a Call Notice is issued by the Company in accordance with Section 5.1.

1.7

“Market Price” (referred to in Section 4.3) in reference to the Common Stock means, in the event such stock is traded on a national securities exchange or in the over-the-counter market as reported by the National Association of Securities Dealers Automated Quotation System (stock being so traded or reported being referred to herein as “Publicly Traded”), the average closing bid and asked price of such stock on the five (5) trading days immediately preceding the date as of which such value is to be determined, and in the event the Common Stock is not Publicly Traded, the value of such stock on a going-concern basis, as determined by the Board of Directors of the Company in good faith or, in the Company’s discretion, by an appraiser mutually agreeable to the Holder and to the Company, the determination of such appraiser to be final in the absence of fraud or bad faith.  As applicable to Warrants, Market Price shall mean the Market Price of the Common Stock subject to such Warrants minus the Exercise Price of such Warrants established in accordance with Article 4.

1.8

“Holder” means the holder of record of this Warrant as shown in the Company’s register for such purpose as described in Section 2.7 hereof.

1.9

“Person” means any natural person, sole proprietorship, general partnership, limited partnership, joint venture, trust, unincorporated organization, association, corporation, limited liability company, institution, private or governmental entity, or other party.

1.10

“Publicly Traded” has the meaning ascribed in Section 1.7.

1.11

“Trading Price” means the price at which the Company’s Common Shares trade, in any single transaction, subsequent to the execution of and prior to the Expiration Date of this Warrant, on a national securities exchange or in the over-the-counter market as reported by the National Association of Securities Dealers Automated Quotation System.

1.11

“Warrant” means this Warrant and any warrants issued on or in substitution for this Warrant, including warrants issued in exchange for this Warrant pursuant to Article 2 hereof.

1.12

“Warrant Shares” means the shares of Common Stock or other securities acquired or to be acquired upon the exercise of the Warrant.

2

ARTICLE 2

EXERCISE OF WARRANT

2.1

Partial Exercise.  This Warrant may be exercised in whole or in part.  In the event of a partial exercise, the Company shall execute and deliver to the Holder (or to such other Person as shall be designated in the Subscription Notice) a new Warrant covering the unexercised portion of the Warrant Shares.

2.2

Procedure.  To exercise this Warrant, the Holder shall deliver to the Company at its principal office:

(a)

a written notice, in substantially the form of the Subscription Notice appearing at the end of this Warrant, of the Holder’s election to exercise this Warrant;

(b)

a check payable to the Company in the amount of the Exercise Price; and

(c)

this Warrant.

The Company shall as promptly as practicable, and in any event within twenty (20) days after receipt of such notice, execute and deliver or cause to be executed and delivered one or more certificates representing the aggregate number of shares of Warrant Shares to which the Holder is entitled and, if this Warrant is exercised in part, a new Warrant as set forth in Section 2.1.

2.3

Name and Effective Date.  The stock certificate(s) so delivered shall be issued in the name of the Holder or such other name as shall be designated in the notice specified in Section 2.2.  Such certificate(s) shall be deemed to have been issued and such Holder or any other Person so designated to be named therein shall be deemed for all purposes to have become a Holder of record of such shares as of the date the Company actually receives the notice and payment as specified in Section 2.2, subject to Article 3 hereof.

2.4

Expenses. The Company shall pay all expenses payable in connection with the preparation, issuance, and delivery of such stock certificate(s), except that the Holder shall pay any applicable stock transfer taxes.

2.5

Legal Requirements.  The Warrant Shares issued upon the exercise of this Warrant shall be validly issued, fully paid, and nonassessable.

2.6

No Fractional Shares.  The Company shall not issue a stock certificate representing any fraction of a share upon partial exercise by a Holder of such Holder’s rights hereunder.

2.7

Registration.  The Company will keep at its principal office a register that will provide for the registration and transfer of this Warrant.

ARTICLE 3

TRANSFER

3.1

Permitted Transfers.  This Warrant shall not be transferable to any other Person except with the written consent of the Company and subject to the limitations set forth in Section 3.2 hereof. 

3.2.

Securities Laws.  Notwithstanding anything to the contrary in this Article 3, neither this Warrant nor the Warrant Shares shall be transferable unless:

(a)

either a registration statement under the Securities Act of 1933, as amended (the “Act”), is in effect covering this Warrant or the Warrant Shares, as the case may be, or the Company has 

3

received an opinion from Company counsel to the effect that such registration is not required; and

(b)

the transfer complies with any applicable state securities laws.

The Warrant Shares will bear a legend describing the restrictions on transfer set forth in this Section 3.2.  By acceptance of this Warrant, the Holder represents and warrants to the Company that this Warrant is acquired for the Holder’s own account, for investment and not with a view to distribution within the meaning of the Act and the Holder agrees that the Holder will not offer, distribute, sell, transfer or otherwise dispose of this Warrant or the Warrant Shares except as set forth herein.

3.3

Procedure.  

The Holder may, subject to the limitations set forth in Section 3.1 and Section 3.2, in person or by duly authorized attorney, surrender the same for exchange at the principal office of the Company and, within a reasonable time thereafter receive in exchange therefor one or more duly executed Warrants each evidencing the right to receive one share of Common Stock of the Company or such other number of shares as may be designated by the Holder at the time of surrender.

The Company and any agent of the Company may treat the Person in whose name a Warrant is registered as the owner of the Warrant for all purposes hereunder, and neither the Company nor such agent shall be affected by notice to the contrary.  The Company covenants and agrees to take and cause to be taken all action necessary to effect such registrations, transfers and exchanges.

ARTICLE 4

EXERCISE PRICE AND ADJUSTMENTS

4.1

Exercise Price.  The Exercise Price for the Warrant Shares shall be $0.50 per share, subject to adjustment as described in this Article 4.

4.2

Stock Splits, Stock Dividends and Reverse Stock Splits.  If at any time the Company shall subdivide (by reclassification, by the issuance of a Common Stock dividend on Common Stock, or otherwise) its outstanding shares of Common Stock into a greater number, the number of shares of Common Stock that may be purchased hereunder shall be increased proportionately and the Exercise Price per share of Common Stock shall be decreased proportionately as of the effective date of such action.  The effective date of a stock dividend shall be the record date for such dividend.  Issuance of a Common Stock dividend shall be treated as a subdivision of the whole number of shares of Common Stock outstanding immediately before the record date for such dividend into a number of shares equal to such whole number of shares so outstanding plus the number of shares issued as a stock dividend.  If at any time the Company shall combine (by reclassification or otherwise) its outstanding number of shares of Common Stock into a lesser number, the number of shares of Common Stock that may be purchased hereunder shall be reduced proportionately and the Exercise Price per share of Common Stock shall be increased proportionately as of the effective date of such action.

4.3

Reorganization and Reclassification.  In case of any capital reorganization or any reclassification of the capital stock of the Company while this Warrant remains outstanding, the Holder of this Warrant shall thereafter be entitled to purchase pursuant to this Warrant (in lieu of the kind and number of shares of Common Stock comprising Warrant Shares that such Holder would have been entitled to purchase or acquire immediately before such reorganization or reclassification) the kind and number of shares of stock of any class or classes or other securities or property for or into which such shares of Common Stock would have been exchanged, converted or reclassified if the Warrant Shares had been purchased by the Holder immediately before such reorganization or reclassification.  In case of any such reorganization or reclassification, appropriate provision (as determined by resolution of the Board of Directors of the Company) shall be made with respect to the rights and interest thereafter of the Holder of this Warrant, to the end that all the provisions of this Warrant (including adjustment provisions) 

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shall thereafter be applicable, as nearly as reasonably practicable, in relation to such stock or other securities or property.

ARTICLE 5

CALL  FEATURE OF WARRANTS

5.1

Call Rights of the Company.   If at any time prior to the expiration of this warrant the Company’s common stock reaches a Trading Price equal to or greater than 1.5x the Exercise Price ($0.50 per share) for the Warrant Shares, or $0.75 per share, the Company has the right, until the Expiration Date, to demand in writing the exercise of this warrant by issuing a Call Notice.  Upon delivery of a Call Notice to the Holder in written form, the Holder will have 10 days in which to exercise all or a portion of this warrant in accordance with Section 2.2.  Should the Holder not exercise in accordance with Section 2.2 within 10 days of receipt of the written Call Notice, then any unexercised portion of this warrant and all of its terms and provisions will be deemed to have expired immediately.

ARTICLE 6

COVENANTS OF THE COMPANY

The Company covenants and agrees that:

6.1

Reservation of Shares.  At all times, the Company will reserve and set apart and have, free from preemptive rights, a sufficient number of shares of authorized but unissued Common Stock or other securities, if applicable, to enable it at any time to fulfill all its obligations hereunder.

6.2

Adjustment of Par Value.  Before taking any action that would cause an adjustment reducing the Exercise Price per share below the then par value of the shares of Warrant Shares issuable upon exercise of this Warrant, the Company will take any corporate action that may be necessary in order that the Company may validly and legally issue fully paid and nonassessable shares of such Warrant Shares at such adjusted price.

ARTICLE 7

LIMITATION OF LIABILITY

No provision of this Warrant shall be construed as conferring upon the Holder the right to vote or to consent or to receive dividends or to receive notice as a stockholder in respect of meetings of stockholders for the election of directors of the Company or any other matter whatsoever as stockholders of the Company.  In the absence of affirmative action by the Holder to purchase shares of Common Stock in accordance with the terms of this Warrant, no provision hereof shall give rise to any liability of such Holder for the Exercise Price or as a stockholder of the Company, whether such liability is asserted by the Company or by creditors of the Company.

ARTICLE 8

MISCELLANEOUS

9.1

Governing Law.  The rights of the parties arising under this Warrant shall be construed and enforced under the laws of the State of Texas without giving effect to any choice of law or conflict of law rules.

9.2

Notices.  Any notice or other communication required or permitted to be given or delivered pursuant to this Warrant shall be in writing and shall be deemed effective as of the date of receipt if delivered personally or by facsimile transmission (if receipt is confirmed by the facsimile operator of the recipient), or delivered by overnight courier service or mailed by registered or certified mail (return receipt requested), postage prepaid, to the parties at the following addresses (or at such other address in the United States of America for a party as shall be specified by like notice; provided, however, that notices of 

5

change of address shall be effective only upon receipt thereof):

(i)

to the Holder at the address set forth immediately below the Holder’s name on the signature pages to that certain Subscription Agreement dated as of _______, 2005 by and among the Company and the Buyers named therein.

(ii)

to the Company as follows:

Tootie Pie Company, Inc.

129 Industrial Dr.

Boerne, TX  78006

Facsimile Number:  830-816-6611

Attention:  Chief Executive Officer

9.3

Severability.  If any provision of this Warrant shall be held invalid, such invalidity shall not affect any other provision of this Warrant that can be given effect without the invalid provision, and to this end, the provisions hereof are separable.

9.4

Headings.  The headings in this Warrant are for reference purposes only and shall not affect in any way the meaning of interpretation of this Warrant.

9.5

Amendment.  This Warrant cannot be amended or modified except by a written agreement executed by the Company and the Holder.

9.6

Assignment.  This Warrant shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, personal representatives, successors and assigns, except that no party may assign or transfer its rights or obligations under this Warrant except to the extent explicitly permitted herein.

9.7

Entire Agreement.  This Warrant, together with its attachments, contains the entire understanding among the parties hereto with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements and understandings, inducements or conditions, express or implied, oral or written, except as herein contained.

IN WITNESS WHEREOF, the Company has caused this Warrant to be signed in its name by the officer named below.

Dated:  ______________, 2005.

TOOTIE PIE COMPANY, INC.

By:

Chief Executive Officer

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SUBSCRIPTION NOTICE

The undersigned, the Holder of a Common Stock Purchase Warrant issued by Tootie Pie Company, Inc., hereby elects to exercise purchase rights represented by such Warrant for, and to purchase thereunder, _______________ shares of the Common Stock covered by such Warrant and herewith makes payment in full therefor of ________________________ and requests that certificates for such shares (and any securities or the property issuable upon such exercise) be issued in the name of and delivered to _______________________________ whose address is ____________________________.

If said number of shares of Common Stock is less than the number of shares of Warrant Shares purchasable hereunder, the undersigned requests that a new Warrant representing the balance of the Warrant Shares be registered in the name of and issued and delivered to _________________whose address is_______________________________________________.

The undersigned hereby agrees to pay any transfer taxes on the transfer of all or any portion of the Warrant or Warrant Shares requested herein if the undersigned has requested stock certificate(s) to be registered in a name or names other than the name of the undersigned.

The undersigned agrees that, in the absence of an effective registration statement with respect to Common Stock issued upon this exercise, the undersigned is acquiring such Common Stock for investment and not with a view to distribution thereof and the certificate or certificates representing such Common Stock may bear a legend substantially as follows:  “The shares represented by this certificate have not been registered under the Securities Act of 1933, as amended, and may not be transferred except as provided in Article 3 of the Warrant to purchase Common Stock of Tootie Pie Company, Inc., a copy of which is on file at the principal office of Tootie Pie Company, Inc.”

Signature guaranteed:

Dated:  _________________

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