Document:

EX-4.1

FOURTH AMENDMENT

THIS FOURTH AMENDMENT, dated as of December 19, 2007(this “Amendment”), is to the
Second Amended and Restated Credit Agreement (as heretofore amended, the “Credit
Agreement”) dated as of September 8, 2004 among PENSKE AUTOMOTIVE GROUP, INC. (formerly known
as United Auto Group, Inc.; the “Company”), various financial institutions (the
“Lenders”) and DCFS USA LLC, as successor agent for the Lenders (the “Agent”).
Unless otherwise defined herein, terms defined in the Credit Agreement are used herein as defined
in the Credit Agreement.

WHEREAS, the parties hereto desire to amend the Credit Agreement in certain respects;

NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration
(the receipt and sufficiency of which are hereby acknowledged), the parties hereto agree as
follows:

SECTION 1 AMENDMENTS. Effective as of December 1, 2007 (the “Effective
Date”), the Credit Agreement is hereby amended as follows:

1.1 The definition of “Interest Rate” in Section 1.1 of the Credit Agreement shall be
amended and restated to read in its entirety as follows:

Interest Rate means, for each day, a rate per annum equal to the sum of
(a) (i) in the case of any day from and including the first day of each calendar
month through and including the 15th day of such calendar month, the LIBO Rate for
the first day of such calendar month and (ii) in the case of any day from and
including the 16th day of each calendar month through and including the last day of
such calendar month, the LIBO Rate for the 16th day of such calendar month (the rate
set forth in this clause (a) being the “Base LIBO Rate”) plus (b) a
margin of one and three-quarter percent (1.75%) per annum. Notwithstanding the
foregoing, at any time an Event of Default exists, the applicable margin shall be
increased by two percent (2.00%) per annum. For purposes of this definition,
“LIBO Rate” means, for each date of calculation, (1) the rate of interest
(rounded upwards, if necessary, to the next 1/16th of 1%) published in The Wall
Street Journal (Midwest Edition) on such day (or the immediately preceding
Business Day, if such date is not a Business Day) in its “Money Rates” column as the
one-month London Interbank Offered Rate for Dollar-denominated deposits (if The
Wall Street Journal ceases to publish such a rate or substantially changes the
methodology used to determine such rate, then the rate shall be the rate of interest
(rounded upwards, if necessary, to the next 1/16th of 1%) published by Reuters
Monitor Rates Service on such day (or the immediately preceding Business Day, if
such date is not a Business Day) as the one-month London Interbank Offered Rate for
Dollar-denominated deposits or (2) if such rate is not published or available, such
rate as shall be otherwise independently determined by the Agent on a basis
substantially similar to the methodology used by The Wall Street Journal on
the date of this Agreement.

1.2 Section 5.3(a) of the Credit Agreement shall be amended and restated to
read in its entirety as follows:

Each Lender hereto acknowledges and agrees that the Agent may deduct from
interest payments received by it from the Company an amount equal to 0.10% per annum
of the daily unpaid principal amount of such Lender’s Pro Rata Share of the
Revolving Loans for the period from and including the Effective Date to and
excluding the Termination Date, and that all payments of interest to such Lenders by
the Agent shall be net of such amount.

SECTION 2 REPRESENTATIONS AND WARRANTIES. The Company represents and warrants to the
Agent and the Lenders that: (a) the representations and warranties made in Section 8 of the Credit
Agreement are true and correct on and as of the date hereof with the same effect as if made on and
as of the date hereof (except to the extent relating solely to an earlier date, in which case they
were true and correct as of such earlier date); (b) no Event of Default or Unmatured Event of
Default exists or will result from the execution of this Amendment; (c) no event or circumstance
has occurred since the Effective Date that has resulted, or would reasonably be expected to result,
in a Material Adverse Effect; (d) the execution and delivery by the Company of this Amendment and
the performance by the Company of its obligations under the Credit Agreement as amended hereby (as
so amended, the “Amended Credit Agreement”) (i) are within the corporate powers of the
Company, (ii) have been duly authorized by all necessary corporate action, (iii) have received all
necessary approval from any governmental authority and (iv) do not and will not contravene or
conflict with any provision of any law, rule or regulation or any order, decree, judgment or award
which is binding on the Company or any of its Subsidiaries or of any provision of the certificate
of incorporation or bylaws or other organizational documents of the Company or of any agreement,
indenture, instrument or other document which is binding on the Company or any of its Subsidiaries;
and (e) the Amended Credit Agreement is the legal, valid and binding obligation of the Company,
enforceable against the Company in accordance with its terms, except as enforceability may be
limited by applicable bankruptcy, insolvency or similar laws affecting the enforcement of
creditors’ rights generally or by equitable principles relating to enforceability.

SECTION 3 CONDITIONS TO EFFECTIVENESS. The amendments set forth in Section 1
above shall become effective as of the Effective Date when the Agent shall have received (a) a
counterpart of this Amendment executed by the Company and the Required Lenders (or, in the case of
any party other than the Company from which the Agent has not received a counterpart hereof,
facsimile confirmation of the execution of a counterpart hereof by such party) and (b) each of the
following documents, each in form and substance satisfactory to the Agent:

3.1 Reaffirmation. A counterpart of the Reaffirmation of Loan Documents,
substantially in the form of Exhibit A, executed by each Loan Party other than the Company.

3.2 Other Documents. Such other documents as the Agent or any Lender may reasonably
request.

SECTION 4 MISCELLANEOUS.

4.1 Continuing Effectiveness, etc. As hereby amended, the Credit Agreement shall
remain in full force and effect and is hereby ratified and confirmed in all respects. All
references in the Credit Agreement, the Notes, each other Loan Document and any similar document to
the “Credit Agreement” or similar terms shall refer to the Amended Credit Agreement.

4.2 Counterparts. This Amendment may be executed in any number of counterparts and by
the different parties on separate counterparts, and each such counterpart shall be deemed to be an
original but all such counterparts shall together constitute one and the same Amendment.

4.3 Expenses. The Company agrees to pay the reasonable costs and expenses of the
Agent (including reasonable fees and disbursements of counsel, including, without duplication, the
allocable costs of internal legal services and all disbursements of internal legal counsel) in
connection with the preparation, execution and delivery of this Amendment.

4.4 Severability of Provisions. In the event that any provision in or obligation
under this Amendment shall be invalid, illegal or unenforceable in any jurisdiction, the validity,
legality and enforceability of the remaining provisions or obligations, or of such provision or
obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.

4.5 Section Headings. The various headings of this Amendment are inserted for
convenience only and shall not affect the meaning or interpretation of this Amendment or the
Agreement or any provision hereof or thereof.

4.6 Governing Law. This Amendment shall be a contract made under and governed by the
laws of the State of New York applicable to contracts made and to be wholly performed within the
State of New York.

4.7 Successors and Assigns. This Amendment shall be binding upon the Company, the
Lenders and the Agent and their respective successors and assigns, and shall inure to the benefit
of the Company, the Lenders and the Agent and the successors and assigns of the Lenders and the
Agent.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

1

Delivered as of the day and year first above written.

PENSKE AUTOMOTIVE GROUP, INC.

By: /s/ Robert O’Shaughnessy

Title: Executive Vice President — Finance

DCFS USA LLC, as Agent, as Issuing Lender and as a

Lender

By:/s/ Michele Nowak

Title: Credit Director- National Accounts

TOYOTA MOTOR CREDIT CORPORATION,

as a Lender

By: /s/ Mark Doy

Title: National Dealer Credit Manager

2

EXHIBIT A

FORM OF REAFFIRMATION

as of December 19, 2007

DCFS USA LLC, as Agent

and the Lenders party

to the Second Amended and Restated Credit Agreement

referred to below

36455 Corporate Drive

Farmington Hills, Michigan 48331

Attn: Michele Nowak

Re: Reaffirmation of Loan Documents

Ladies and Gentlemen:

Please refer to:

(a) The Second Amended and Restated Security Agreement dated as of September 8, 2004 (the
“Security Agreement”) among Penske Automotive Group, Inc. (f/k/a United Auto Group, Inc.;
the “Company”), its subsidiaries and DCFS USA LLC in its capacity as Agent (in such
capacity, the “Agent”);

(b) The Guaranty dated as of October 8, 1999 (the “Guaranty”) executed in favor of the
Agent and various other parties by all subsidiaries of the Company; and

(c) The Pledge Agreement dated as of October 8, 1999 (the “Pledge Agreement”) executed
by the Company and certain of its subsidiaries.

Each of the undersigned acknowledges that the Company, the Lenders and the Agent have executed
the Fourth Amendment (the “Amendment”) to the Second Amended and Restated Credit Agreement
dated as of September 8, 2004 (as amended, supplemented or otherwise modified from time to time,
the “Credit Agreement”). Capitalized terms not otherwise defined herein have the meanings
given in the Credit Agreement.

Each of the undersigned hereby confirms that the Security Agreement, the Guaranty, the Pledge
Agreement and each other Loan Document to which such undersigned is a party remains in full force
and effect after giving effect to the effectiveness of the Amendment and that, upon such
effectiveness, all references in each Loan Document to the “Credit Agreement” shall be references
to the Credit Agreement, as amended by the Amendment.

3

This letter agreement may be signed in counterparts and by the various parties on separate
counterparts. This letter agreement shall be governed by the laws of the State of New York
applicable to contracts made and to be performed entirely within such State.

	 
	ATLANTIC AUTO FUNDING CORPORATION

	ATLANTIC AUTO SECOND FUNDING CORPORATION

	ATLANTIC AUTO THIRD FUNDING CORPORATION

	AUTO MALL PAYROLL SERVICES, INC.

	BRETT MORGAN CHEVROLET-GEO, INC.

	CJNS, LLC

	CLASSIC AUTO GROUP, INC.

	CLASSIC IMPORTS, INC.

	CLASSIC MANAGEMENT COMPANY, INC.

	CLASSIC TURNERSVILLE, INC.

	COVINGTON PIKE DODGE, INC.

	DAN YOUNG CHEVROLET, INC.

	DIFEO PARTNERSHIP, LLC

	EUROPA AUTO IMPORTS, INC.

	FLORIDA CHRYSLER-PLYMOUTH, INC.

	FRN of TULSA, LLC

	GENE REED CHEVROLET, INC.

	GMG MOTORS, INC.

	GOODSON NORTH, LLC

	GOODSON PONTIAC GMC, LLC

	GOODSON SPRING BRANCH, LLC

	HBL, LLC

	HT AUTOMOTIVE, LLC

	JS IMPORTS, LLC

	KMPB, LLC

	KMT/UAG, INC.

	LANDERS AUTO SALES, LLC

	LANDERS BUICK-PONTIAC, INC.

	LANDERS FORD NORTH, INC.

	LANDERS UNITED AUTO GROUP NO. 2, INC.

	LATE ACQUISITION I, LLC

	LATE ACQUISITION II, LLC

	LMNS, LLC

	LRP, LTD.

	MICHAEL CHEVROLET-OLDSMOBILE, INC.

	MOTORCARS ACQUISITION II, LLC

	MOTORCARS ACQUISITION III, LLC

	MOTORCARS ACQUISITION IV, LLC

	MOTORCARS ACQUISITION V, LLC

	MOTORCARS ACQUISITION VI, LLC

	MOTORCARS ACQUISITION, LLC

	NISSAN OF NORTH OLMSTED, LLC

	PAG ACQUISITION 13, LLC

	PAG ACQUISITION 14, LLC

	PAG ACQUISITION 15, LLC

	PAG AUSTIN S1, LLC

	PAG LONG ISLAND A1, LLC

	PAG LONG ISLAND B1, LLC

	PAG LONG ISLAND L1, LLC

	PAG LONG ISLAND M1, LLC

	PAG MICHIGAN S1, LLC

	PAG NORTH SCOTTSDALE BE, LLC

	PAG WEST, LLC

	PALM AUTO PLAZA, LLC

	PEACHTREE NISSAN, INC.

	PENSKE DIRECT, LLC

	PMRC, LLC

	RELENTLESS PURSUIT ENTERPRISES, INC.

	SA AUTOMOTIVE, LTD.

	SAU AUTOMOTIVE, LTD.

	SCOTTSDALE 101 MANAGEMENT, LLC

	SCOTTSDALE FERRARI, LLC

	SCOTTSDALE JAGUAR, LTD.

	SCOTTSDALE MANAGEMENT GROUP, LTD.

	SCOTTSDALE PAINT & BODY, LLC

	SIGMA MOTORS INC.

	SK MOTORS, LLC

	SL AUTOMOTIVE, LLC

	SL AUTOMOTIVE, LTD.

	SMART USA DISTRIBUTOR, LLC

	SOMERSET MOTORS, INC.

	SUN MOTORS, LLC

	TRI-CITY LEASING, INC.

	TURNERSVILLE AUTO OUTLET, LLC

	UAG ATLANTA H1, LLC

	UAG ATLANTA IV MOTORS, INC.

	UAG ARKANSAS FLM, LLV

	UAG CAPITOL, INC.

	UAG CAROLINA, INC.

	UAG CENTRAL FLORIDA MOTORS, LLC

	UAG CENTRAL NJ, LLC

	UAG CENTRAL REGION MANAGEMENT, LLC

	UAG CERRITOS, LLC

	UAG CHANTILLY AU, LLC

	UAG CHCC, INC.

	UAG CHEVROLET, INC.

	UAG CLASSIC, INC.

	UAG CLOVIS, INC.

	UAG CONNECTICUT I, LLC

	UAG CONNECTICUT, LLC

	UAG DULUTH, INC.

	UAG EAST, LLC

	UAG ESCONDIDO A1, INC.

	UAG ESCONDIDO H1, INC.

	UAG ESCONDIDO M1, INC.

	UAG FAIRFIELD CA, LLC

	UAG FAIRFIELD CM, LLC

	UAG FAIRFIELD CP, LLC

	UAG FAYETTEVILLE I, LLC

	UAG FAYETTEVILLE II, LLC

	UAG FAYETTEVILLE III, LLC

	UAG FINANCE COMPANY, INC.

	UAG GD, LTD.

	UAG GN, LTD.

	UAG GP, LTD

	UAG GRACELAND II, INC.

	UAG GW, LTD.

	UAG HOUSTON ACQUISITION, LTD.

	UAG HUDSON, INC.

	UAG HUDSON CJD, LLC

	UAG INTERNATIONAL HOLDINGS, INC.

	UAG KISSIMMEE MOTORS, INC.

	UAG LANDERS SPRINGDALE, LLC

	UAG LOS GATOS, INC.

	UAG MARIN, INC.

	UAG MEMPHIS II, INC.

	UAG MEMPHIS IV, INC.

	UAG MEMPHIS MANAGEMENT, LLC

	UAG MENTOR ACQUISITION, LLC

	UAG MICHIGAN CADILLAC, LLC

	UAG MICHIGAN H1, LLC

	UAG MICHIGAN H2, LLC

	UAG MICHIGAN HOLDINGS, INC.

	UAG MICHIGAN PONTIAC-GMC, LLC

	UAG MICHIGAN T1, LLC

	UAG MICHIGAN TMV, LLC

	UAG MINNEAPOLIS B1, LLC

	UAG NANUET I, LLC

	UAG NANUET II, LLC

	UAG NEVADA LAND, LLC

	UAG NORTHEAST BODY SHOP, INC.

	UAG NORTHEAST, LLC

	UAG OLDSMOBILE OF INDIANA, LLC

	UAG/PFS, INC.

	UAG PHOENIX VC, LLC

	UAG REALTY, LLC

	UAG ROYAL PALM, LLC

	UAG ROYAL PALM M1, LLC

	UAG SAN DIEGO A1, INC.

	UAG SAN DIEGO H1, INC.

	UAG SAN DIEGO JA, INC.

	UAG SOUTHEAST, INC.

	UAG SPRING, LLC

	UAGE STEVENS CREEK II, INC.

	UAG SUNNYVALE, INC.

	UAG TEXAS II, INC.

	UAG TEXAS, LLC

	UAG TORRANCE, INC.

	UAG TULSA HOLDINGS, LLC

	UAG TULSA VC, LLC

	UAG TURNERSVILLE MOTORS, LLC

	UAG TURNERSVILLE REALTY, LLC

	UAG VC II, LLC

	UAG VK, LLC

	UAG WEST BAY AM, LLC

	UAG WEST BAY FM, LLC

	UAG WEST BAY IA, LLC

	UAG WEST BAY IAU, LLC

	UAG WEST BAY IB, LLC

	UAG WEST BAY II, LLC

	UAG WEST BAY IL, LLC

	UAG WEST BAY IM, LLC

	UAG WEST BAY IP, LLC

	UAG WEST BAY IV, LLC

	UAG WEST BAY IW, LLC

	UAG YOUNG II, INC.

	UAG-CARIBBEAN, INC.

	PENSKE AUTOMOTIVE GROUP, INC.

	UNITED AUTO LICENSING, LLC

	UNITEDAUTO SCOTTSDALE PROPERTY HOLDINGS, LLC

	UNITED AUTOCARE PRODUCTS, LLC

	UNITED NISSAN, INC., A GEORGIA CORPORATION

	UNITED NISSAN, INC., A TENNESSEE CORPORATION

	UNITED RANCH AUTOMOTIVE, LLC

	UNITEDAUTO DODGE OF SHREVEPORT, INC.

	UNITEDAUTO FIFTH FUNDING INC.

	UNITEDAUTO FINANCE INC.

	UNITEDAUTO FOURTH FUNDING INC.

	WEST PALM AUTO MALL, INC.

	WEST PALM NISSAN, LLC

	WEST PALM S1, LLC

	WESTBURY SUPERSTORE, LTD.

	WTA MOTORS, LTD.

	YOUNG MANAGEMENT GROUP, INC.

	UAG TULSA JLM, LLC

	UNITED FORD SOUTH, LLC

	UNITED FORD NORTH, LLC

	UNITED FORD BROKEN ARROW, LLC

	DEALER ACCESSORIES, LLC

	UAG WEST BAY IN, LLC

	UAG SAN DIEGO AU, INC.

	UAG SAN DIEGO MANAGEMENT, INC.

By: /s/ Robert O’Shaughnessy

Title: Assistant Treasurer

4

CLASSIC MOTOR SALES, LLC

CLASSIC ENTERPRISES, LLC

By: Penske Automotive Group, Inc.

Member

By: /s/ Robert O’Shaughnessy

Title: Executive Vice President – Finance

CLASSIC NISSAN OF TURNERSVILLE, LLC

By: Classic Management Company, Inc.

Member

By: /s/ Robert O’Shaughnessy

Title: Assistant Treasurer

DAN YOUNG MOTORS, LLC

By: DAN YOUNG CHEVROLET, INC.

Member

By: /s/ Robert O’Shaughnessy

Title: Assistant Treasurer

SHANNON AUTOMOTIVE, LTD.

By: UAG TEXAS, LLC

a general partner

By: /s/ Robert O’Shaughnessy

Title: Treasurer

UAG CITRUS MOTORS, LLC

By: Penske Automotive Group, Inc.

Member

By: /s/ Robert O’Shaughnessy

Title: Executive Vice President — Finance

PAG EAST, LLC

D. YOUNG CHEVROLET, LLC

By: Penske Automotive Group, Inc., Member

By: /s/ Robert O’Shaughnessy

Title: Executive Vice President — Finance

NATIONAL CITY FORD, INC.

CENTRAL FORD CENTER, INC.

By: /s/ Robert O’Shaughnessy

Title:  Assistant Treasurer

COUNTY AUTO GROUP PARTNERSHIP

DANBURY AUTO PARTNERSHIP

DIFEO CHRYSLER PLYMOUTH JEEP

EAGLE PARTNERSHIP

DIFEO HYUNDAI PARTNERSHIP

DIFEO LEASING PARTNERSHIP

DIFEO NISSAN PARTNERSHIP

DIFEO TENAFLY PARTNERSHIP

HUDSON MOTOR PARTNERSHIP

5

OCT PARTNERSHIP

SOMERSET MOTORS PARTNERSHIP

By: DIFEO PARTNERSHIP, INC.

a general partner

By: /s/ Robert O’Shaughnessy

Title:  Assistant Treasurer

TAMBURRO ENTERPRISES, INC.

CLASSIC SPECIAL ADVERTISING, INC.

CLASSIC SPECIAL AUTOMOTIVE GP, LLC

CLASSIC SPECIAL, LLC

By: /s/ Robert O’Shaughnessy

Title:  Assistant Treasurer

CLASSIC SPECIAL AUTOMOTIVE, LTD.

By: Classic Special Automotive GP, LLC

General Partner

By: /s/ Robert O’Shaughnessy

Title:  Assistant Treasurer

CLASSIC SPECIAL HYUNDAI, LTD.

HILL COUNTRY IMPORTS, LTD.

CLASSIC OLDSMOBILE PONTIAC-GMC, LTD.

By: Classic Special, LLC

By: /s/ Robert O’Shaughnessy

Title:  Assistant Treasurer

PAG ORLANDO LIMITED, INC.

PAG ORLANDO GENERAL, INC.

By: /s/ Robert O’Shaughnessy

Title:  Assistant Treasurer

6

PAG ORLANDO PARTNERSHIP, LTD.

By: PAG Orlando General, Inc.

General Partner

By: /s/ Robert O’Shaughnessy

Title:  Assistant Treasurer

7

ACKNOWLEDGED AND AGREED

as of the date first written above

DCFS USA LLC, as Agent

By: /s/ Michele Nowak

Title:  Credit Director – National Accounts

8EX-10.1

RESTRICTED STOCK AWARD (#) ____

JOE’S JEANS, INC.

2004 STOCK INCENTIVE PLAN

RESTRICTED STOCK AWARD CERTIFICATE

THIS RESTRICTED STOCK AWARD CERTIFICATE (THIS “CERTIFICATE”), is to certify that Joe’s Jeans,
Inc., a Delaware corporation (the “Company”), has offered you (“Grantee”) the right to receive
Common Stock (the “Stock” or “Shares”) of the Company under its 2004 Stock Incentive Plan (the
“Plan”), as follows:

Name of Grantee:

Address of Grantee:

Number of Shares:

Grant Date:

Vesting

Commencement Date:

Vesting Schedule:

	 	 	 	 	 
	Anniversary of the Grant Date
	 	Percentage of the Award Vested
	1 month
	 	 	8.334	%
	2 month
	 	 	16.668	%
	3 month
	 	 	25.002	%
	4 month
	 	 	33.336	%
	5 month
	 	 	41.670	%
	6 month
	 	 	50.004	%
	7 month
	 	 	58.338	%
	8 month
	 	 	66.672	%
	9 month
	 	 	75.006	%
	10 month
	 	 	83.340	%
	11 month
	 	 	91.674	%
	12 month
	 	 	100.000	%

By your signature and the signature of the Company’s representative below, you and the Company
agree to be bound by all of the terms and conditions of the Restricted Stock Award Agreement, which
is attached hereto as Annex I, and the Plan (both incorporated herein by this reference as if set
forth in full in this document). By executing this Certificate, you hereby irrevocably elect to
accept the Restricted Stock Award rights granted pursuant to this Certificate and the related
Restricted Stock Award Agreement and to receive the shares of Restricted Stock of Joe’s Jeans, Inc.
designated above subject to the terms of the Plan, this Certificate and the Award Agreement.

	 	 	 
	GRANTEE:

	 	JOE’S JEANS, INC.

[ ]
	 

	 	 
	Dated:

	 	Dated:

1

ANNEX I

JOE’S JEANS, INC.

2004 STOCK INCENTIVE PLAN

RESTRICTED STOCK AWARD AGREEMENT

This Restricted Stock Award Agreement (this “Agreement”), is made and entered into on the
Grant Date of the Restricted Stock Award Certificate to which it is attached (the “Certificate”),
by and between Joe’s Jeans, Inc., a Delaware corporation (the “Company”), and the member of the
Company’s Board of Directors (“Grantee”) named in the Certificate.

Pursuant to the Joe’s Jeans, Inc. 2004 Stock Incentive Plan (the “Plan”), the Committee has
authorized the grant to Grantee of the right to receive shares of the Company’s Common Stock (the
“Award”), upon the terms and subject to the conditions set forth in this Agreement and in the Plan.
Except as otherwise provided herein, or unless the context clearly indicates otherwise, capitalized
terms not otherwise defined herein shall have the same definitions as provided in the Plan.

NOW, THEREFORE, in consideration of the premises and the benefits to be derived from the
mutual observance of the covenants and promises contained herein and other good and valuable
consideration, the sufficiency of which is hereby acknowledged, the parties hereto agree as
follows:

1. Basis for Award. This Award is made pursuant to the Plan for valid consideration
provided to the Company by Grantee. By your execution of the Certificate, you agree to accept the
Restricted Stock Award rights granted pursuant to the Certificate and this Agreement and to receive
the shares of Restricted Stock of Joe’s Jeans, Inc. designated in the Certificate subject to the
terms of the Plan, the Certificate and this Agreement.

2. Restricted Stock Award. The Company hereby awards and grants to Grantee, for valid
consideration with a value in excess of the aggregate par value of the Common Stock awarded to
Grantee, the number of shares of Common Stock of the Company set forth in the Certificate, which
shall be subject to the restrictions and conditions set forth in the Plan, the Certificate and in
this Agreement (the “Restricted Stock”). One or more stock certificates representing the number of
Shares specified in the Certificate shall hereby be registered in Grantee’s name (the “Stock
Certificate”), but shall be deposited and held in the custody of the Company for Grantee’s account
as provided in Section 8 hereof until such Restricted Stock becomes vested.

3. Vesting and Termination of Continuous Service. The Restricted Stock shall vest and
restrictions on transfer shall lapse subject to the Vesting Schedule set forth in the Certificate;
provided, that, Grantee is in Continuous Service on the applicable vesting date.
Upon the occurrence of a Change in Control, the Restricted Stock shall become 100% vested on such
event and the restrictions on transfer shall lapse. The shares of Restricted Stock which have not
vested in accordance with the Certificate (the “Unvested Shares”) shall become vested and the
restrictions on transfer shall lapse upon the earlier to occur of Grantee’s death or Disability.
Upon termination of Grantee’s Continuous Service for any other reason (including, without
limitation, Grantee’s resignation from the Company’s Board of Directors) prior to the date that
Grantee becomes 100% vested in the Award, the Unvested Shares shall be forfeited immediately and
Grantee shall have no right with respect to the Unvested Shares. Prior to vesting, all Unvested
Shares shall be subject to the restrictions set forth in this Agreement.

4. Compliance with Laws and Regulations. The issuance, transfer, vesting, and
ownership of Common Stock shall be subject to compliance by the Company and Grantee with all
applicable requirements of federal and state securities laws and with all applicable requirements
of any stock exchange on which the Company’s Common Stock may be listed at the time of such
issuance or transfer. Grantee agrees to cooperate with the Company to ensure compliance with such
laws and requirements. Prior to issuance or transfer of Common Stock, the Company may require
Grantee to execute and deliver a letter of investment intent in such form and containing such
provisions as requested by the Committee.

5. Section 83(b) Election. Grantee may elect, within thirty (30) days of the Grant
Date, to include in gross income for federal income tax purposes an amount equal to the Fair Market
Value of the Restricted Stock less the amount, if any, paid by Grantee (other than by prior
services) for the Restricted Stock granted hereunder pursuant to Section 83(b) of the Internal
Revenue Code of 1986, as amended.

6. No Right to Continued Service. Nothing in this Agreement shall be deemed by
implication or otherwise to impose any limitation on any right of the Company to terminate
Grantee’s service as a director at any time and for any reason.

7. Representations and Warranties of Grantee. Grantee represents and warrants to the
Company that:

(a) Agrees to Terms of the Plan and the Agreement. Grantee has received a copy of the
Plan, the Certificate, and the Agreement and has read and understands the terms thereof. Grantee
acknowledges that there may be adverse tax consequences upon the vesting of Restricted Stock or
disposition of the shares of Common Stock once vested, and that Grantee should consult a tax
advisor prior to such time.

(b) Stock Ownership. Grantee is the record and beneficial owner of the shares of
Restricted Stock with full right and power to vote and receive dividends on such shares;
provided, that, Grantee understands that the stock certificates evidencing the
Restricted Stock will bear a legend referencing this Agreement. Any dividends which are paid in
cash shall be distributed to Grantee as soon as practicable. If any dividends are paid in Common
Stock during an applicable period of restriction, Grantee shall receive such shares subject to the
same restrictions as the Restricted Stock with respect to which they were issued.

8. Restrictions on Unvested Shares.

(a) Deposit of the Unvested Shares. Grantee shall deposit all of the Unvested Shares
with the Company to hold until the Unvested Shares become vested, at which time such vested shares
shall no longer constitute Unvested Shares. Grantee shall execute and deliver to the Company,
concurrently with the execution of this Agreement, blank stock powers for use in connection with
the transfer to the Company or its designee of Unvested Shares. The Company will deliver to
Grantee the Stock certificate for the shares of Common Stock that become vested upon vesting of
such shares.

(b) Restriction on Transfer of Unvested Shares. Grantee shall not sell, transfer,
assign, grant a lien or security interest in, pledge, hypothecate as collateral for a loan or as
security for the performance of any obligation or for any other purpose, encumber or otherwise
dispose of any of the Unvested Shares, except as permitted by this Agreement.

9. Adjustments. This Award is subject to the adjustment provisions set forth in the
Plan.

10. Restrictive Legends and Stop-Transfer Orders.

(a) Legends. Grantee understands and agrees that the Company will place the legends
set forth below or similar legends on any stock certificate(s) evidencing the Common Stock,
together with any other legends that may be required by state or U.S. Federal securities laws, the
Company’s Certificate of Incorporation or Bylaws, any other agreement between Grantee and the
Company or any agreement between Grantee and any third party:

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON PUBLIC RESALE AND
TRANSFER, AS SET FORTH IN A RESTRICTED STOCK AWARD AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL
HOLDER OF THESE SHARES. SUCH PUBLIC SALE AND TRANSFER RESTRICTIONS ARE BINDING ON TRANSFEREES OF
THESE SHARES.

(b) Stop-Transfer Instructions. Grantee agrees that, to ensure compliance with the
restrictions imposed by this Agreement, the Company may issue appropriate “stop-transfer”
instructions to its transfer agent, if any, and if the Company transfers its own securities, it may
make appropriate notations to the same effect in its own records.

(c) Refusal to Transfer. The Company will not be required (i) to transfer on its books
any shares of Common Stock that have been sold or otherwise transferred in violation of any of the
provisions of this Agreement or (ii) to treat as owner of such shares, or to accord the right to
vote or pay dividends to any purchaser or other transferee to whom such shares have been so
transferred.

11. Modification. Except as specifically provided in the Plan, the Agreement may not
be modified except in writing signed by both parties.

12. Interpretation. Any dispute regarding the interpretation of this Agreement shall
be submitted by Grantee or the Company to the Committee for review. The resolution of such a
dispute by the Committee shall be final and binding on the Company and Grantee.

13. Entire Agreement. The terms and provisions of the Plan are incorporated herein by
reference. In the event of a conflict or inconsistency between the terms and provisions of the
Plan, the Certificate, and this Agreement, the Plan shall govern and control. This Agreement, the
Certificate and the Plan constitute the entire agreement of the parties and supersede all prior
undertakings and agreements with respect to the subject matter hereof.

14. Notices. Any notice required to be given or delivered to the Company under the
terms of this Agreement shall be in writing and addressed to the Corporate Secretary of the Company
at its principal corporate offices. Any notice required to be given or delivered to Grantee shall
be in writing and addressed to Grantee at the address indicated on the signature page hereof or to
such other address as such party may designate in writing from time to time to the Company. All
notices shall be deemed to have been given or delivered upon: (a) personal delivery; (b) five (5)
days after deposit in the United States mail by certified or registered mail (return receipt
requested); (c) two (2) business days after deposit with any return receipt express courier
(prepaid); or (d) one (1) business day after transmission by facsimile.

15. Successors and Assigns. The Company may assign any of its rights under this
Agreement. This Agreement shall be binding upon and inure to the benefit of the successors and
assigns of the Company. Subject to the restrictions on transfer set forth herein, this Agreement
shall be binding upon Grantee and Grantee’s heirs, executors, administrators, legal
representatives, successors and assigns.

16. Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Delaware without giving effect to its conflict of law principles. If
any provision of this Agreement is determined by a court of law to be illegal or unenforceable,
then such provision will be enforced to the maximum extent possible and the other provisions will
remain fully effective and enforceable.

2

EXHIBIT A

JOE’S JEANS, INC. 2004 STOCK INCENTIVE PLAN

3

EXHIBIT B

STOCK POWER

(To be left blank except for signature)

For value received, the undersigned does hereby sell, assign and transfer unto Joe’s Jeans, Inc.
     shares of Common Stock of Joe’s Jeans, Inc. represented by

(#)

certificate number      

standing in the name of the undersigned.

The undersigned does hereby irrevocably constitute and appoint      

     

attorney to transfer the foregoing on the books of the within named company, with full power of
substitution in the premises.

This stock power may only be used in accordance with the Restricted Stock Award Agreement by and
between Joe’s Jeans, Inc. and the undersigned dated as of [     ], and any amendments
thereto.

Dated:      

Signature:      

Signature must correspond EXACTLY to the name shown in the certificate.

4

EXHIBIT C

Section 83(b) Election Form

Attached is an Internal Revenue Code Section 83(b) Election Form. IF YOU WISH TO MAKE A SECTION
83(B) ELECTION, YOU MUST DO SO WITHIN 30 DAYS AFTER THE GRANT DATE. In order to make the election,
you must completely fill out the attached form and file one copy with the Internal Revenue Service
office where you file your tax return. In addition, one copy of the statement also must be
submitted with your income tax return for the taxable year in which you make this election.
Finally, you also must submit a copy of the election form to the Company within ten (10) days after
filing that election with the Internal Revenue Service. A Section 83(b) election normally cannot
be revoked. 

5

JOE’S JEANS, INC. 2004 STOCK INCENTIVE PLAN

Election to Include Value of Restricted Stock in Gross Income

in Year of Transfer Under Internal Revenue Code Section 83(b)

Pursuant to Section 83(b) of the Internal Revenue Code, I hereby elect within 30 days after
receiving the property described herein to be taxed immediately on its value specified in item 5
below.

	1.	 	My General Information:

	 	 	 	 	 
	Name:
	 	 	—	 
	Address:
	 	 	—	 

	 	 	 	     

	 	 	 	 	 
	S.S.N.
or T.I.N.:
	 	 	—	 

	2.	 	Description of the property with respect to which I am making this election:

     shares of Restricted Stock of Joe’s Jeans, Inc.

	3.	 	The shares of Restricted Stock were transferred to me on      , 20     . This
election relates to the 20     calendar taxable year.

	4.	 	The shares of Restricted Stock are subject to the following restrictions:

The shares of Restricted Stock are forfeitable until they are vested in accordance
with Section 8 of the Joe’s Jeans, Inc. 2004 Stock Incentive Plan (the “Plan”) and
the Restricted Stock Award Agreement (the “Award Agreement”) entered into between me
and Joe’s Jeans, Inc. on      , 20     . The shares of Restricted Stock
are not transferable until my interest becomes vested and nonforfeitable, pursuant
to the Award Agreement and the Plan.

5. Fair market value:

The fair market value at the time of transfer (determined without regard to any
restrictions other than restrictions which by their terms will never lapse) of the
            shares of Restricted Stock with respect to which I am making this election is $     
per share.

6. Amount paid for Restricted Stock:

The amount I paid for the Restricted Stock is $    per share.

7. Furnishing statement to the transferor:

I serve as a director on the board of directors of the transferor, Joe’s Jeans,
Inc., and a copy of this statement has been furnished to the transferor.

8. Award Agreement or Plan not affected:

Nothing contained herein shall be held to change any of the terms or conditions of
the Award Agreement or the Plan.

Dated:      , 200_.

     

6

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