Document:

Amendment No. 2 to Credit Agreement

 Exhibit 10.3 
 AMENDMENT NO. 2 TO 
 CREDIT AGREEMENT 

This AMENDMENT NO. 2 TO CREDIT AGREEMENT (this “Amendment”) is dated as of April 18, 2011 and is among OHCP
HM ACQUISITION CORP. (“OH Holdings”), THE HILLMAN COMPANIES, INC. (“Holdings”), THE HILLMAN GROUP, INC. (“HGI” and together with Holdings, the “Borrower”), the Lenders (as defined
in the Credit Agreement referred to below) party hereto, BARCLAYS BANK PLC, as Administrative Agent, and, for purposes of Sections 6 and 7 hereof, certain subsidiaries of OH Holdings as Guarantors. 

RECITALS: 

WHEREAS, the Borrower, the Lenders, and Barclays Bank PLC, as Administrative Agent, Issuing Lender and Swingline Lender, are
parties to a Credit Agreement dated as of May 28, 2010 (as amended by Amendment No. 1 to Credit Agreement dated as of December 22, 2010 and as further amended, restated, supplemented or otherwise modified from time to time, the
“Credit Agreement”); and 
 WHEREAS, as contemplated by Section 10.03 of the Credit
Agreement, the Borrower has requested that the Lenders amend certain terms of the Credit Agreement as hereinafter provided, and the Lenders party hereto have agreed to amend the Credit Agreement subject to the satisfaction of the conditions
precedent to effectiveness set forth in Sections 4(a) and 4(b) hereof, as applicable. 
 NOW, THEREFORE, in
consideration of the premises and the agreements, provisions and covenants herein contained, the parties hereto agree as follows: 
 Section 1. Defined Terms. Except as otherwise defined in this Amendment, capitalized terms defined in the Credit Agreement and used herein shall have the meanings given to them in the
Credit Agreement. As used herein, “Lead Arrangers” means Barclays Capital, the investment banking division of Barclays Bank PLC and Morgan Stanley Senior Funding, Inc., in their respective capacities as joint lead arrangers for this
Amendment and Barclays Capital, the investment banking division of Barclays Bank PLC and Morgan Stanley Senior Funding, Inc., GE Capital Markets, Inc., in their respective capacities as joint bookrunners for this Amendment. 

Section 2. Initial Amendments to the Credit Agreement. Subject to the satisfaction of the conditions set forth in
Section 4(a) hereof, effective as of the Initial Second Amendment Effective Date (as defined in Section 4(a) hereof), the Credit Agreement is hereby amended as follows: 

(a) Section 1.01 of the Credit Agreement is hereby amended as follows: 

(i) the definition of “Consolidated EBITDA” is hereby amended by: 

(A) replacing the word “and” immediately prior to clause (N) in the first paragraph thereof with
“,”; 
 (B) adding the words “and (O) fees and out-of-pocket expenses of the Borrower and
its Consolidated Subsidiaries incurred in connection with the Second Amendment” immediately after the words “Closing Date” at the end of clause (N) in the first paragraph thereof; and 

 (C) adding the word “Total” immediately after the word
“the” and prior to the words “Leverage Ratio” in the second line of the last paragraph thereof; 
 (ii) the definition of “Permitted Business Acquisition” is hereby amended as follows: 
 (A) clause (v) thereof is hereby amended and restated in its entirety to read as follows: 
 (v) (A) no Default or Event of Default shall have occurred and be continuing immediately before or immediately after giving effect to such Business Acquisition and (B) Holdings shall have delivered
to the Administrative Agent a Pro-Forma Compliance Certificate demonstrating that, after giving effect to such Business Acquisition on a Pro-Forma Basis, (a) the Secured Leverage Ratio as of the date of such Business Acquisition and as of the
last day of the most recently ended fiscal quarter of Holdings and its Consolidated Subsidiaries shall not be greater than 4.00:1.00 and (b) the Total Leverage Ratio as of the date of such Business Acquisition and as of the last day of the most
recently ended fiscal quarter of Holdings and its Consolidated Subsidiaries shall not be greater than 6.00:1.00; and 
 (B) clause (vi) thereof is amended by replacing the words “; and” at the end thereof with “.”; and 

(C) clause (vii) thereof is deleted in its entirety; 

(iii) the definition of “Pro-Forma Basis” is hereby amended by: 

(A) replacing the reference to “Section 6.01(c)” therein with a reference to “Section
6.01(d)”; 
 (B) replacing the words “second sentence” therein with the words “third
paragraph”; 
 (C) (a) replacing the word “covenants” with the word “covenant” and
(b) adding the words “or of the Interest Coverage Ratio, Secured Leverage Ratio or the Total Leverage Ratio with respect to any other provision hereof” after the reference to “Section 7.16” in the third sentence
therein; and 
 (D) adding the words “shall be taken into account” immediately after the word
“Adjustments” at the end of clause (v) therein; 
 (iv) the definition of “Pro-Forma
Compliance Certificate” is hereby amended by replacing the reference to “Section 6.01(c)” therein with a reference to “Section 6.01(d)”; and 

(v) the following defined term is added in proper alphabetical sequence: 

“Second Amendment” means Amendment No. 2 to Credit Agreement, dated as of April 18, 2011, among OH Holdings,
Holdings, HGI, the other Credit Parties party thereto, the Lenders party thereto and the Administrative Agent. 

  
 2 

 (b) Section 2.09(b)(ii) of the Credit Agreement is hereby amended by replacing
the words “, (B) and (C)” therein with the words “and (B)”; 
 (c) Section 2.10(d) of the
Credit Agreement is hereby amended by: 
 (i) adding the words “and repaying such Lender’s outstanding
Loans, such Lender’s pro-rata share (computed in accordance with its Revolving Commitment Percentage) of all non-reimbursed LC Disbursements and all accrued interest, fees and other amounts owing to such Lender hereunder, in each case,”
immediately after the word “Commitment” in clause (x) in the first sentence thereof; 

(ii) adding the words “, its outstanding Loans and its pro-rata share (computed in accordance with its Revolving
Commitment Percentage) of all non-reimbursed LC Disbursements” immediately after the word “Commitment” in clause (y) in the first sentence thereof; 

(iii) adding the words “and, in each such case, satisfying the conditions set forth below” immediately after the
reference to “Section 10.06” in the first sentence thereof; 
 (iv) replacing the words
“clause (2) above” in the second sentence thereof with the words “this Section 2.10(d)”; 
 (v) replacing the words “all LC Disbursements that have been funded by (and not reimbursed to) it under Section 2.05” in clause (i)(A) therein with the words “its
pro-rata share (computed in accordance with its Revolving Commitment Percentage) of all non-reimbursed LC Disbursements”; 
 (vi) adding the following new paragraph immediately prior to the last paragraph thereof: 
 Notwithstanding the foregoing, in the case of the replacement of a Lender pursuant to this Section 2.10(d), upon (i) payment of all amounts owing to such replaced Lender as set forth in
clauses (i) and (ii) above, such Lender shall, without any further consent or other action by it, cease to constitute a Lender hereunder; provided that the provisions of this Agreement (including the provisions of
Article III and Sections 10.04 and 10.05) shall continue to govern the rights and obligations of a replaced Lender with respect to any Loans made, any Letters of Credit issued or any other actions taken by such replaced Lender
while it was a Lender. Each Lender agrees that if the Borrower exercises its right hereunder to replace a Lender pursuant to and in accordance with this Section 2.10(d), such replaced Lender shall, promptly after receipt of written
notice from the Borrower of its election to exercise such right, execute and deliver all documentation necessary to effectuate such assignment in accordance with Section 10.06. In the event that a replaced Lender does not comply with the
requirements of the immediately preceding sentence within one Business Day after receipt of such notice, each Lender hereby authorizes and directs the Administrative Agent to execute and deliver such documentation as may be required to give effect
to an assignment in accordance with Section 10.06 on behalf of a replaced Lender and any such documentation so executed by the Administrative Agent shall be effective for purposes of documenting an assignment pursuant to
Section 10.06. 
 (vii) replacing the words “and LC Obligations held by such Lender” in
clause (i)(A) in the last paragraph thereof with the words “held by such Lender and such Lender’s pro-

  
 3 

 
rata share (computed in accordance with its Revolving Commitment Percentage) of all non-reimbursed LC Disbursements”; 

(d) Section 2.15(a) of the Credit Agreement is hereby amended by: 

(i) deleting the words “for all such New Term Loan Commitments not in excess of $100,000,000 in the aggregate
and” and the words “(or such lesser amount that shall constitute the difference between $100,000,000 and all such New Term Loan Commitment obtained prior to such date)” in the first paragraph thereof; and 

(ii) amending and restating clause (iv) in the second paragraph thereof in its entirety to read as follows:

 (iv) the Secured Leverage Ratio as of the Increased Amount Date and as of the last day of the most recently ended fiscal
quarter of Holdings and its Consolidated Subsidiaries, calculated on a Pro-Forma Basis after giving effect to any such New Term Loan Commitments (and assuming that all such New Term Loan Commitments have been fully drawn), shall not be greater than
4.00:1.00; 
 (e) Section 4.02(d) of the Credit Agreement is hereby amended and restated in its entirety to read as
follows: 
 (d) Availability; Secured Leverage Ratio. Immediately after giving effect to the making of a Revolving
Loan or Swingline Loan (and the application of the proceeds thereof) or to the issuance of a Letter of Credit, as the case may be, (i) the sum of the Revolving Loans outstanding plus the amount of all LC Obligations outstanding plus all
Swingline Loans outstanding shall not exceed the Revolving Committed Amount, (ii) the amount of all LC Obligations outstanding shall not exceed the LC Committed Amount, (iii) the sum of all Swingline Loans outstanding shall not exceed the
Swingline Committed Amount and (iv) the Secured Leverage Ratio, calculated on a Pro-Forma Basis, shall not be greater than 4.00:1.00. 
 (f) Section 6.01(d) of the Credit Agreement is hereby amended by replacing the word “covenants” therein with the word “covenant”; 

(g) Section 7.01 of the Credit Agreement is hereby amended by: 

(i) amending and restating clause (iv) thereof in its entirety to read as follows: 

(iv) Debt of HGI or its Subsidiaries (A) secured by Liens permitted by clauses (xi), (xii) and
(xiii) of Section 7.02, (B) acquired or assumed in a Permitted Business Acquisition or in connection with the acquisition of assets or (C) issued to a seller of assets or a Person that is the subject of a Permitted
Business Acquisition or that is otherwise incurred to fund consideration payable in a Permitted Business Acquisition (and for no other purpose) in a transaction permitted by this Agreement; provided that (x) no Default or Event of
Default shall have occurred and be continuing immediately before or immediately after giving effect to the issuance or other incurrence of any such Debt and any related Permitted Business Acquisition (if any) and (y) Holdings shall have
delivered to the Administrative Agent a Pro-Forma Compliance Certificate demonstrating that, after giving effect to the issuance or other incurrence of any such Debt and any 

  
 4 

 
related Permitted Business Acquisition (if any) on a Pro-Forma Basis, (a) the Secured Leverage Ratio as of the date of such issuance or other incurrence and any such related Permitted
Business Acquisition (if any) shall not be greater than 4.00:1.00 and (b) the Total Leverage Ratio as of the date of such issuance or other incurrence and any such related Permitted Business Acquisition (if any) shall not be greater than
6.00:1.00; 
 (ii) replacing clause (xi) thereof with “(xi) [reserved]”; 

(iii) deleting the word “and” at the end of clause (xvii) thereof; 

(iv) amending and restating clause (xviii) thereof in its entirety to read as follows: 

(xviii) Debt of Foreign Subsidiaries of HGI in an aggregate principal amount not to exceed $1,000,000 at any time outstanding; and

 (v) adding the following new clause (xix) immediately after clause (xviii) therein:

 (xix) unsecured Debt of HGI and Guaranty Obligations of Holdings or any of its Subsidiaries in respect thereof;
provided that, immediately prior to and immediately after giving effect to the incurrence of any unsecured Debt pursuant to this clause (xix), (A) no Default or Event of Default shall have occurred and be continuing and
(B) the Total Leverage Ratio as of the date of incurrence of such unsecured Debt and as of the last day of the most recently ended fiscal quarter of Holdings and its Consolidated Subsidiaries, calculated on a Pro-Forma Basis, shall not be
greater than 6.00:1.00. 
 (h) Section 7.05(xiv) of the Credit Agreement is hereby amended by (i) replacing the
words “all of the financial covenants set forth in Section 7.16(a)” therein with the words “the financial covenant set forth in Section 7.16” and (ii) replacing the reference to “Section
6.01(c)” therein with a reference to “Section 6.01(d)”; 
 (i) Section 7.08(d)(i) of the
Credit Agreement is hereby amended by replacing the words “ending during any period described below, in each case” therein with “,” and replacing the words and the table after the words “will not be less than” therein
with “2.25:1.00.”; 
 (j) Section 7.16 of the Credit Agreement is hereby amended and restated in its
entirety to read as follows: 
 Section 7.16 Financial Covenant. The Secured Leverage Ratio as of the last
day of any fiscal quarter of Holdings and its Consolidated Subsidiaries, for the period of four consecutive fiscal quarters of Holdings and its Consolidated Subsidiaries then ended, taken as a single accounting period, will not be greater than
4.75:1.00. 
 (k) Section 8.03 of the Credit Agreement is hereby amended by replacing the words “financial
covenants” in each instance such words appear therein with the words “financial covenant”. 

  
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 Section 3. Subsequent Amendments to the Credit Agreement. Subject to the
satisfaction of the conditions set forth in Section 4(b) hereof, effective as of the Final Second Amendment Effective Date (as defined in Section 4(b) hereof), the Credit Agreement is hereby amended as follows: 

(a) Section 1.01 of the Credit Agreement is hereby amended as follows: 

(i) clause (I) of the definition of “Adjusted Eurodollar Rate” is hereby amended by replacing
“1.75% per annum” therein with the following: “(A) with respect to Revolving Loans comprised of Eurodollar Loans, 1.75% per annum and (B) with respect to Term Loans comprised of Eurodollar Loans, 1.50% per annum”;

 (ii) the definition of “Applicable Margin” is hereby amended and restated in its entirety to read as
follows: 
 “Applicable Margin” means for purposes of calculating the applicable interest rate for any day for
any Loan, (i) in the case of Revolving Loans comprised of (a) Eurodollar Loans, 3.75% per annum or (b) Base Rate Loans, 2.75% per annum and (ii) in the case of Term Loans comprised of (a) Eurodollar Loans,
3.50% per annum and (b) Base Rate Loans, 2.50% per annum. 
 (iii) clause (iii) of the
definition of “Base Rate” is hereby amended by replacing “2.75%” therein with the following: “(a) with respect to Revolving Loans comprised of Base Rate Loans, 2.75% per annum and (b) with respect to Term Loans
comprised of Base Rate Loans, 2.50% per annum”; 
 (iv) the following defined term is added in proper
alphabetical sequence: 
 “Final Second Amendment Effective Date” means April 18, 2011.

 (b) Section 2.11 of the Credit Agreement is hereby amended by adding the following new clause
(d) immediately after clause (c) therein: 
 (d) Prepayment Premium. In the
event that, at any time during the period from and after the Final Second Amendment Effective Date to and including the first anniversary of the Final Second Amendment Effective Date, all or any portion of the Term Loans is either repriced (or
effectively refinanced with senior secured loan proceeds) at a lower interest cost to the Borrower through any amendment of this Agreement or otherwise, the Borrower agrees to pay to each Term Lender, on the date of such repricing (or effective
refinancing with senior secured loan proceeds), a prepayment premium in an amount equal to 1.00% of the stated principal amount of such Term Lender’s Term Loans repriced (or effectively refinanced). 

Section 4. Effectiveness. 
 (a) The effectiveness of the amendments to the Credit Agreement set forth in Section 2 of this Amendment is subject to the satisfaction of the following conditions precedent (the date of such
satisfaction, the “Initial Second Amendment Effective Date”): 
 (i) the Borrower and the
Required Lenders shall have executed and delivered counterparts of this Amendment to the Administrative Agent; 

  
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 (ii) the Borrower shall have paid all fees and expenses due and payable
under the Finance Documents and set forth in an invoice delivered to the Borrower at least one Business Day prior to the Initial Second Amendment Effective Date; 

(iii) the Borrower shall have paid to the Lead Arrangers all fees and expenses payable to the Lead Arrangers in connection
with this Amendment; 
 (iv) each of the representations and warranties contained in Section 7 of
this Amendment shall be true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representation and warranty that is already qualified by materiality) at and as if made as of such date except
to the extent they expressly relate to an earlier date; and 
 (v) no Default or Event of Default shall have
occurred and be continuing. 
 (b) The effectiveness of the amendments to the Credit Agreement set forth in Section 3
of this Amendment is subject to the satisfaction of the following conditions precedent (the date of such satisfaction, the “Final Second Amendment Effective Date”): 

(i) the Initial Second Amendment Effective Date shall have occurred; 

(ii) each of the Lenders holding Term Loans shall have executed and delivered counterparts of this Amendment to the
Administrative Agent or if any such Lender has failed to consent to this Amendment (each such Lender, a “Non-Consenting Lender”), then (A) each Non-Consenting Lender shall have assigned (or the Administrative Agent on behalf of
such Non-Consenting Lender shall have assigned) in accordance with Section 2.10(d) of the Credit Agreement, as amended by the amendments thereto set forth in Section 2(c) hereof, its Commitment, its outstanding Loans and its
pro-rata share (computed in accordance with its Revolving Commitment Percentage) of all non-reimbursed LC Disbursements to one or more existing Lenders or Eligible Assignees pursuant to Section 10.06 of the Credit Agreement, for an
amount equal in the aggregate to the sum of (x) the principal of, and all accrued but unpaid interest on, such Non-Consenting Lender’s outstanding Loans, (y) the amount of such Non-Consenting Lender’s pro-rata share (computed in
accordance with its Revolving Commitment Percentage) of all non-reimbursed LC Disbursements, together with all accrued but unpaid interest with respect thereto and (z) all accrued but unpaid fees owing to such Non-Consenting Lender pursuant to
Section 2.11 of the Credit Agreement and (B) each of the existing Lenders or Eligible Assignees to which any such assignment shall have been made shall have executed this Amendment; 

(iii) each of the representations and warranties contained in Section 7 of this Amendment shall be true and
correct in all material respects (except that such materiality qualifier shall not be applicable to any representation and warranty that is already qualified by materiality) at and as if made as of such date except to the extent they expressly
relate to an earlier date; and 
 (iv) no Default or Event of Default shall have occurred and be continuing.

 Section 5. Costs and Expenses. Without limiting the obligations of the Borrower under the Credit
Agreement, the Borrower agrees to pay or reimburse all of the Administrative Agent’s reasonable and documented out-of-pocket costs and expenses incurred in connection with the preparation, negotiation and execution of this Amendment and the
other instruments and documents to be delivered 

  
 7 

 
hereunder in accordance with the terms of Section 10.04 of the Credit Agreement, including all reasonable and documented fees, disbursements and other charges of Latham &
Watkins LLP, counsel for the Administrative Agent. 
 Section 6. Consent and Affirmation of the Credit
Parties. 
 (a) Each Credit Party (prior to and after giving effect to this Amendment) hereby consents to the amendment
of the Credit Agreement effected hereby (the Credit Agreement as amended by this Amendment, the “Amended Credit Agreement”) and confirms and agrees that, notwithstanding the effectiveness of this Amendment, each Finance Document to
which such Credit Party is a party is, and the obligations of such Credit Party contained in the Amended Credit Agreement, this Amendment or in any other Finance Document to which it is a party are, and shall continue to be, in full force and effect
and are hereby ratified and confirmed in all respects, in each case as amended by this Amendment. For greater certainty and without limiting the foregoing, each Credit Party hereby confirms that the existing security interests granted by such Credit
Party in favor of the Collateral Agent, for the benefit of the Secured Parties (as defined in each of the Security Agreement and the Pledge Agreement), pursuant to the Finance Documents in the Collateral described therein shall continue to secure
the obligations of the Credit Parties under the Amended Credit Agreement and the other Finance Documents as and to the extent provided in the Finance Documents. Each Subsidiary Guarantor reaffirms and agrees that its guarantee of the obligations of
the Credit Parties under the Amended Credit Agreement and the Finance Documents is, and shall continue to be, in full force and effect and is hereby ratified and confirmed in all respects. 

(b) Each Subsidiary Guarantor acknowledges and agrees that (i) notwithstanding the conditions to effectiveness set forth in this
Amendment, such Subsidiary Guarantor is not required by the terms of the Credit Agreement, the Amended Credit Agreement or any other Finance Document to consent to the amendments to the Credit Agreement effected pursuant to this Amendment and
(ii) nothing in the Credit Agreement, the Amended Credit Agreement, this Amendment or any other Finance Document shall be deemed to require the consent of such Subsidiary Guarantor to any future amendments to the Amended Credit Agreement.

 Section 7. Representations and Warranties. Each Credit Party hereby represents and warrants, on and as of
the date hereof, the Initial Second Amendment Effective Date and the Final Second Amendment Effective Date, that: 
 (a) All of
the representations and warranties made by the Credit Parties in the Finance Documents are true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representation and warranty that is already
qualified by materiality) at and as if made as of such date except to the extent they expressly relate to an earlier date. 

(b) Each Credit Party has the corporate, partnership, limited liability company or other necessary power and authority, and the legal
right, to execute, deliver and perform this Amendment and the Amended Credit Agreement and, in the case of the Borrower, to obtain extensions of credit hereunder, and has taken all necessary action to authorize the borrowings and other extensions of
credit on the terms and conditions of this Amendment and the consummation of the transactions contemplated hereby and to authorize the execution, delivery and performance of this Amendment and the Amended Credit Agreement. 

(c) No consent or authorization of, filing with, notice to or other similar act by or in respect of, any Governmental Authority or any
other Person is required to be obtained or made by or on behalf of any Credit Party in connection with the borrowings or other extensions of credit hereunder or 

  
 8 

 
with the execution, delivery, performance, validity or enforceability of this Amendment or the Amended Credit Agreement, except for consents, authorizations, notices and filings which have been
obtained or made. 
 (d) This Amendment and the Amended Credit Agreement have been duly executed and delivered on behalf of such
Person. This Amendment and the Amended Credit Agreement constitute a legal, valid and binding obligation of such Credit Party enforceable against each such Person in accordance with its terms, except (i) as such enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and (ii) that rights of acceleration and the availability of equitable remedies may be limited by
equitable principles of general applicability (regardless of whether enforcement is sought by proceedings in equity or at law). 

(e) Neither the execution and delivery by any Credit Party of this Amendment or the Amended Credit Agreement, nor the consummation of the
transactions contemplated herein, nor performance of and compliance with the terms and provisions of the Amended Credit Agreement by such Credit Party, nor the exercise of remedies by the Agents and the Lenders hereunder or thereunder, will
(i) violate or conflict with any provision of the articles or certificate of incorporation, bylaws, partnership agreement, operating agreement or other organizational or governing documents of such Credit Party, (ii) violate, contravene or
conflict with any Law applicable to it or its properties, (iii) violate, contravene or conflict with contractual provisions of, cause an event of default under, or give rise to material increased, additional, accelerated or guaranteed, rights
of any Person under, any indenture, loan agreement, mortgage, deed of trust or other instrument, material contract or material lease to which it is a party or by which it may be bound or (iv) result in or require the creation of any Lien (other
than the Lien of the Collateral Documents) upon or with respect to its properties, except in the case of clause (iii) for such violations as could not reasonably be expected, individually or in the aggregate, to result in a Material
Adverse Effect. 
 Section 8. Reference to and Effect on the Credit Agreement. 

(a) On and after the effectiveness of this Amendment, each reference in the Credit Agreement to “this Agreement,”
“hereunder,” “hereof” or words of like import referring to the Credit Agreement shall mean and be a reference to the Amended Credit Agreement. 
 (b) The Credit Agreement as specifically amended by this Amendment is and shall continue to be in full force and effect and is hereby in all respects ratified and confirmed. This Amendment shall be a
“Finance Document” for purposes of the definition thereof in the Credit Agreement. 
 (c) The execution, delivery and
effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of any Lender or the Agent under any of the Finance Documents, nor constitute a waiver of any provision of any of the Finance Documents. 

Section 9. Execution in Counterparts. This Amendment may be executed in any number of counterparts, each of which when
so executed and delivered shall be an original, but all of which shall constitute one and the same instrument. It shall not be necessary in making proof of this Amendment to produce or account for more than one such counterpart. Delivery by
facsimile or other electronic means of an executed counterpart of a signature page to this Amendment shall be effective as delivery of an original executed counterpart of this Amendment. 

  
 9 

 Section 10. Governing Law. THIS AMENDMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS THAT WOULD RESULT IN THE APPLICATION OF ANY LAW OTHER THAN
THE LAW OF THE STATE OF NEW YORK. 
 Section 11. Headings. The headings of the sections and subsections
hereof are provided for convenience only and shall not in any way affect the meaning or construction of any provision of this Amendment. 
 Section 12. Severability. Any provision of this Amendment that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining provisions thereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 [Signature Pages Follow] 

  
 10 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and
delivered by their respective proper and duly authorized officers as of the day and year first above written. 
  

					
	 OHCP HM ACQUISITION CORP.,
 as OH Holdings and a Guarantor

		
	By:	 	 /s/    Kevin Mailender

		 	Name:	 	Kevin Mailender
		 	Title:	 	Authorized Signatory
	
	 THE HILLMAN COMPANIES, INC.,
 as Borrower and a Guarantor

		
	By:	 	 /s/    James P. Waters

		 	Name:	 	James P. Waters
		 	Title:	 	Chief Financial Officer
	
	 THE HILLMAN GROUP, INC. ,
 as Borrower and a Guarantor

		
	By:	 	 /s/    James P. Waters

		 	Name:	 	James P. Waters
		 	Title:	 	Chief Financial Officer
	
	 HILLMAN INVESTMENT COMPANY,
 as a Guarantor

		
	By:	 	 /s/    James P. Waters

		 	Name:	 	James P. Waters
		 	Title:	 	Chief Financial Officer

 Signature Page
to Amendment No. 2 

 
					
	 ALL POINTS INDUSTRIES, INC.,

as a Guarantor

		
	 By:
	 	 /s/    James P. Waters

		 	Name:	 	James P. Waters
		 	Title:	 	Chief Financial Officer
	
	 SUNSUB C INC.,
 as a Guarantor

		
	By:	 	 /s/    James P. Waters

		 	Name:	 	James P. Waters
		 	Title:	 	Chief Financial Officer
	
	 TAGWORKS, L.L.C.,
 as a Guarantor

		
	By:	 	 /s/    James P. Waters

		 	Name:	 	James P. Waters
		 	Title:	 	Chief Financial Officer

 Signature
Page to Amendment No. 2 

 
					
	 BARCLAYS BANK PLC,

as Administrative Agent and a Lender

		
	By:	 	 /s/    Noam Azachi

		 	Name:	 	Noam Azachi
		 	Title:	 	Assistant Vice President

 Signature Page
to Amendment No. 2 

 
							
	By signing below you have indicated your consent to this Amendment	 	
		
	  
	 	,
	as a Lender	 	

					
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	

 For Lenders requiring a second signature block: 

 

					
	By:	 	  

		 	Name:	 	
		 	Title:	 	

 Signature Page to First AmendmentAmended and Restated 2004 Stock Incentive Plan

 Exhibit 10.9 
 ORANGE 21 INC. 
 2004 STOCK
INCENTIVE PLAN 
 (Adopted by the Board on December 8, 2004 and 

amended and restated by the Board on April 26, 2007) 

 Table of Contents 

 

							
	  	 	 	  	Page	 
	 SECTION 1. ESTABLISHMENT AND PURPOSE
	  	 	1	  
		
	 SECTION 2. DEFINITIONS
	  	 	1	  
		 	 (a)       “Affiliate”
	  	 	1	  
		 	 (b)      “Award”
	  	 	1	  
		 	 (c)       “Board of Directors”
	  	 	1	  
		 	 (d)      “Change in Control”
	  	 	1	  
		 	 (e)       “Code”
	  	 	2	  
		 	 (f)       “Committee”
	  	 	2	  
		 	 (g)      “Company”
	  	 	2	  
		 	 (h)      “Consultant”
	  	 	2	  
		 	 (i)       “Employee”
	  	 	2	  
		 	 (j)       “Exchange Act”
	  	 	2	  
		 	 (k)      “Exercise Price”
	  	 	2	  
		 	 (l)       “Fair Market Value”
	  	 	3	  
		 	 (m)     “ISO”
	  	 	3	  
		 	 (n)      “Nonstatutory Option” or “NSO”
	  	 	3	  
		 	 (o)      “Offeree”
	  	 	3	  
		 	 (p)      “Option”
	  	 	3	  
		 	 (q)      “Optionee”
	  	 	3	  
		 	 (r)       “Outside Director”
	  	 	3	  
		 	 (s)       “Parent”
	  	 	3	  
		 	 (t)       “Participant”
	  	 	3	  
		 	 (u)      “Plan”
	  	 	3	  
		 	 (v)      “Purchase Price”
	  	 	4	  
		 	 (w)     “Restricted Share”
	  	 	4	  
		 	 (x)      “Restricted Share Agreement”
	  	 	4	  
		 	 (y)      “SAR”
	  	 	4	  
		 	 (z)       “SAR Agreement”
	  	 	4	  
		 	 (aa)    “Service”
	  	 	4	  
		 	 (bb)    “Share”
	  	 	4	  
		 	 (cc)    “Stock”
	  	 	4	  
		 	 (dd)    “Stock Option Agreement”
	  	 	4	  
		 	 (ee)    “Stock Unit”
	  	 	4	  
		 	 (ff)      “Stock Unit Agreement”
	  	 	4	  
		 	 (gg)    “Subsidiary”
	  	 	4	  
		 	 (hh)    “Total and Permanent Disability”
	  	 	4	  
		
	 SECTION 3. ADMINISTRATION
	  	 	4	  
		 	 (a)       Committee Composition
	  	 	4	  
		 	 (b)      Committee for Non-Officer Grants
	  	 	4	  
		 	 (c)       Committee Procedures
	  	 	5	  
		 	 (d)      Committee Responsibilities
	  	 	5	  
		
	 SECTION 4. ELIGIBILITY
	  	 	6	  
		 	 (a)       General Rule
	  	 	6	  
		 	 (b)      Automatic Grants to Outside Directors
	  	 	6	  
		 	 (c)       Ten-Percent Stockholders
	  	 	7	  

  

  

ORANGE 21 INC. 
 2004 STOCK INCENTIVE PLAN 
 i

							
	 	 	 	  	Page	 
		 	 (d)      Attribution Rules
	  	 	7	  
		 	 (e)       Outstanding Stock
	  	 	7	  
		
	 SECTION 5. STOCK SUBJECT TO PLAN
	  	 	7	  
		 	 (a)       Basic Limitation
	  	 	7	  
		 	 (b)      Option/SAR Limitation
	  	 	7	  
		 	 (c)       Additional Shares
	  	 	7	  
		
	 SECTION 6. RESTRICTED SHARES
	  	 	8	  
		 	 (a)       Restricted Stock Agreement
	  	 	8	  
		 	 (b)      Payment for Awards
	  	 	8	  
		 	 (c)       Vesting
	  	 	8	  
		 	 (d)      Voting and Dividend Rights
	  	 	8	  
		 	 (e)       Restrictions on Transfer of Shares
	  	 	8	  
		
	 SECTION 7. TERMS AND CONDITIONS OF OPTIONS
	  	 	8	  
		 	 (a)       Stock Option Agreement
	  	 	8	  
		 	 (b)      Number of Shares
	  	 	8	  
		 	 (c)       Exercise Price
	  	 	8	  
		 	 (d)      Withholding Taxes
	  	 	9	  
		 	 (e)       Exercisability and Term
	  	 	9	  
		 	 (f)       Exercise of Options Upon Termination of Service
	  	 	9	  
		 	 (g)      Effect of Change in Control
	  	 	9	  
		 	 (h)      Leaves of Absence
	  	 	9	  
		 	 (i)       No Rights as a Stockholder
	  	 	9	  
		 	 (j)       Modification, Extension and Renewal of Options
	  	 	9	  
		 	 (k)      Restrictions on Transfer of Shares
	  	 	10	  
		 	 (l)       Buyout Provisions
	  	 	10	  
		
	 SECTION 8. PAYMENT FOR SHARES
	  	 	10	  
		 	 (a)       General Rule
	  	 	10	  
		 	 (b)      Surrender of Stock
	  	 	10	  
		 	 (c)       Services Rendered
	  	 	10	  
		 	 (d)      Cashless Exercise
	  	 	10	  
		 	 (e)       Exercise/Pledge
	  	 	10	  
		 	 (f)       Promissory Note
	  	 	10	  
		 	 (g)      Other Forms of Payment
	  	 	11	  
		 	 (h)      Limitations under Applicable Law
	  	 	11	  
		
	 SECTION 9. STOCK APPRECIATION RIGHTS
	  	 	11	  
		 	 (a)       SAR Agreement
	  	 	11	  
		 	 (b)      Number of Shares
	  	 	11	  
		 	 (c)       Exercise Price
	  	 	11	  
		 	 (d)      Exercisability and Term
	  	 	11	  
		 	 (e)       Effect of Change in Control
	  	 	11	  
		 	 (f)       Exercise of SARs
	  	 	11	  
		 	 (g)      Modification or Assumption of SARs
	  	 	11	  
		
	 SECTION 10. STOCK UNITS
	  	 	12	  
		 	 (a)       Stock Unit Agreement
	  	 	12	  
		 	 (b)      Payment for Awards
	  	 	12	  

  

ORANGE 21 INC. 
 2004 STOCK INCENTIVE PLAN 
 ii

							
	  	 	  	  	Page	 
		 	 (c)       Vesting Conditions
	  	 	12	  
		 	 (d)      Voting and Dividend Rights
	  	 	12	  
		 	 (e)       Form and Time of Settlement of Stock Units
	  	 	12	  
		 	 (f)       Death of Recipient
	  	 	12	  
		 	 (g)      Creditors’ Rights
	  	 	12	  
		
	 SECTION 11. ADJUSTMENT OF SHARES
	  	 	13	  
		 	 (a)       Adjustments
	  	 	13	  
		 	 (b)      Dissolution or Liquidation
	  	 	13	  
		 	 (c)       Reorganizations
	  	 	13	  
		 	 (d)      Reservation of Rights
	  	 	13	  
		
	 SECTION 12. DEFERRAL OF AWARDS
	  	 	14	  
		
	 SECTION 13. AWARDS UNDER OTHER PLANS
	  	 	14	  
		
	 SECTION 14. PAYMENT OF DIRECTOR’S FEES IN SECURITIES
	  	 	14	  
		 	 (a)       Effective Date
	  	 	14	  
		 	 (b)      Elections to Receive NSOs, Restricted Shares or Stock Units
	  	 	14	  
		 	 (c)       Number and Terms of NSOs, Restricted Shares or Stock Units
	  	 	15	  
		
	 SECTION 15. LEGAL AND REGULATORY REQUIREMENTS
	  	 	15	  
		
	 SECTION 16. WITHHOLDING TAXES
	  	 	15	  
		 	 (a)       General
	  	 	15	  
		 	 (b)      Share Withholding
	  	 	15	  
		
	 SECTION 17. TRANSFERABILITY
	  	 	15	  
		
	 SECTION 18. NO EMPLOYMENT RIGHTS
	  	 	15	  
		
	 SECTION 19. DURATION AND AMENDMENTS
	  	 	16	  
		 	 (a)       Term of the Plan
	  	 	16	  
		 	 (b)      Right to Amend or Terminate the Plan
	  	 	16	  
		 	 (c)       Effect of Award or Termination
	  	 	16	  
		
	 SECTION 20. EXECUTION
	  	 	16	  

  

ORANGE 21 INC. 
 2004 STOCK INCENTIVE PLAN 
 iii

 ORANGE 21 INC. 

2004 STOCK INCENTIVE PLAN 
 SECTION 1. ESTABLISHMENT AND PURPOSE. 
 The Plan was adopted by the Board of
Directors on December 8, 2004, effective as of the date of the initial offering of Stock to the public pursuant to a registration statement filed by the Company with the Securities and Exchange Commission (the “Effective Date”) and
amended and restated by the Board on April 26, 2007. The purpose of the Plan is to promote the long-term success of the Company and the creation of stockholder value by (a) encouraging Employees, Outside Directors and Consultants to focus
on critical long-range objectives, (b) encouraging the attraction and retention of Employees, Outside Directors and Consultants with exceptional qualifications and (c) linking Employees, Outside Directors and Consultants directly to
stockholder interests through increased stock ownership. The Plan seeks to achieve this purpose by providing for Awards in the form of restricted shares, stock units, options (which may constitute incentive stock options or nonstatutory stock
options) or stock appreciation rights. 
 SECTION 2. DEFINITIONS. 

(a) “Affiliate” shall mean any entity other than a Subsidiary, if the Company and/or one of more Subsidiaries own not
less than 50% of such entity. 
 (b) “Award” shall mean any award of an Option, a SAR, a Restricted Share or a
Stock Unit under the Plan. 
 (c) “Board of Directors” shall mean the Board of Directors of the Company, as
constituted from time to time. 
 (d) “Change in Control” shall mean the occurrence of any of the following
events: 
 (i) A change in the composition of the Board of Directors occurs, as a result of which fewer than
one-half of the incumbent directors are directors who either: 
 (A) Had been directors of the Company on the
“look-back date” (as defined below) (the “original directors”); or 
 (B) Were elected, or
nominated for election, to the Board of Directors with the affirmative votes of at least a majority of the aggregate of the original directors who were still in office at the time of the election or nomination and the directors whose election or
nomination was previously so approved (the “continuing directors”); or 
 (ii) Any “person”
(as defined below) who by the acquisition or aggregation of securities, is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 50% or more
of the combined voting power of the Company’s then outstanding securities ordinarily (and apart from rights accruing under special circumstances) having the right to vote at elections of directors (the “Base Capital Stock”); except
that any change in the relative beneficial ownership of the Company’s securities by any person resulting solely from a reduction in the aggregate number of outstanding shares of Base Capital Stock, and any decrease thereafter in such
person’s ownership of securities, shall be disregarded until such person increases in any manner, directly or indirectly, such person’s beneficial ownership of any securities of the Company; or 

  

ORANGE 21 INC. 
 2004 STOCK INCENTIVE PLAN 
 1

 (iii) The consummation of a merger or consolidation of the Company with or
into another entity or any other corporate reorganization, if persons who were not stockholders of the Company immediately prior to such merger, consolidation or other reorganization own immediately after such merger, consolidation or other
reorganization 50% or more of the voting power of the outstanding securities of each of (A) the continuing or surviving entity and (B) any direct or indirect parent corporation of such continuing or surviving entity; or 

(iv) The sale, transfer or other disposition of all or substantially all of the Company’s assets. 

For purposes of subsection (d)(i) above, the term “look-back” date shall mean the later of (1) the Effective Date, or
(2) the date 24 months prior to the date of the event that may constitute a Change in Control. 
 For purposes of
subsection (d)(ii) above, the term “person” shall have the same meaning as when used in Sections 13(d) and 14(d) of the Exchange Act but shall exclude (1) a trustee or other fiduciary holding securities under an employee benefit plan
maintained by the Company or a Parent or Subsidiary and (2) a corporation owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of the Stock. 

Any other provision of this Section 2(d) notwithstanding, a transaction shall not constitute a Change in Control if its sole purpose
is to change the state of the Company’s incorporation or to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction, and a
Change in Control shall not be deemed to occur if the Company files a registration statement with the Securities and Exchange Commission for the initial offering of Stock to the public. 

(e) “Code” shall mean the Internal Revenue Code of 1986, as amended. 

(f) “Committee” shall mean the Compensation Committee as designated by the Board of Directors, which is authorized to
administer the Plan, as described in Section 3 hereof. 
 (g) “Company” shall mean Orange 21 Inc., a
Delaware corporation. 
 (h) “Consultant” shall mean a consultant or advisor who provides bona fide services to
the Company, a Parent, a Subsidiary or an Affiliate as an independent contractor or a member of the board of directors of a Parent or a Subsidiary who is not an Employee. Service as a Consultant shall be considered Service for all purposes of the
Plan. 
 (i) “Employee” shall mean any individual who is a common-law employee of the Company, a Parent or a
Subsidiary. 
 (j) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 

(k) “Exercise Price” shall mean, in the case of an Option, the amount for which one Common Share may be purchased upon
exercise of such Option, as specified in the applicable Stock Option Agreement. “Exercise Price,” in the case of a SAR, shall mean an amount, as specified in the applicable SAR Agreement, which is subtracted from the Fair Market Value of
one Common Share in determining the amount payable upon exercise of such SAR. 

  

ORANGE 21 INC. 
 2004 STOCK INCENTIVE PLAN 
 2

 (l) “Fair Market Value” with respect to a Share, shall mean the market
price of one Share of Stock, determined by the Committee as follows: 
 (i) If the Stock was traded
over-the-counter on the date in question but was not traded on The Nasdaq Stock Market, then the Fair Market Value shall be equal to the last transaction price quoted for such date by the OTC Bulletin Board or, if not so quoted, shall be equal to
the mean between the last reported representative bid and asked prices quoted for such date by the principal automated inter-dealer quotation system on which the Stock is quoted or, if the Stock is not quoted on any such system, by the Pink Sheets
LLC; 
 (ii) If the Stock was traded on The Nasdaq Stock Market, then the Fair Market Value shall be equal to the
last reported sale price quoted for such date by The Nasdaq Stock Market; 
 (iii) If the Stock was traded on a
United States stock exchange on the date in question, then the Fair Market Value shall be equal to the closing price reported for such date by the applicable composite-transactions report; and 

(iv) If none of the foregoing provisions is applicable, then the Fair Market Value shall be determined by the Committee in
good faith on such basis as it deems appropriate. 
 In all cases, the determination of Fair Market Value by the Committee shall be conclusive
and binding on all persons. 
 (m) “ISO” shall mean an employee incentive stock option described in
Section 422 of the Code. 
 (n) “Nonstatutory Option” or “NSO” shall mean an employee
stock option that is not an ISO. 
 (o) “Offeree” shall mean an individual to whom the Committee has offered
the right to acquire Shares under the Plan (other than upon exercise of an Option). 
 (p) “Option” shall mean
an ISO or Nonstatutory Option granted under the Plan and entitling the holder to purchase Shares. 
 (q)
“Optionee” shall mean an individual or estate who holds an Option or SAR. 
 (r) “Outside
Director” shall mean a member of the Board of Directors who is not a common-law employee of, or paid consultant to, the Company or a Subsidiary. Service as an Outside Director shall be considered Service for all purposes of the Plan, except
as provided in Section 4(a). 
 (s) “Parent” shall mean any corporation (other than the Company) in an
unbroken chain of corporations ending with the Company, if each of the corporations other than the Company owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. A
corporation that attains the status of a Parent on a date after the adoption of the Plan shall be a Parent commencing as of such date. 
 (t) “Participant” shall mean an individual or estate who holds an Award. 
 (u) “Plan” shall mean this 2004 Stock Incentive Plan of Orange 21 Inc., as amended from time to time. 

  

ORANGE 21 INC. 
 2004 STOCK INCENTIVE PLAN 
 3

 (v) “Purchase Price” shall mean the consideration for which one Share may
be acquired under the Plan (other than upon exercise of an Option), as specified by the Committee. 
 (w) “Restricted
Share” shall mean a Share awarded under the Plan. 
 (x) “Restricted Share Agreement” shall mean the
agreement between the Company and the recipient of a Restricted Share which contains the terms, conditions and restrictions pertaining to such Restricted Shares. 
 (y) “SAR” shall mean a stock appreciation right granted under the Plan. 
 (z) “SAR Agreement” shall mean the agreement between the Company and an Optionee which contains the terms, conditions and restrictions pertaining to his or her SAR. 

(aa) “Service” shall mean service as an Employee, Consultant or Outside Director. 

(bb) “Share” shall mean one share of Stock, as adjusted in accordance with Section 8 (if applicable). 

(cc) “Stock” shall mean the Common Stock of the Company. 

(dd) “Stock Option Agreement” shall mean the agreement between the Company and an Optionee that contains the terms,
conditions and restrictions pertaining to his Option. 
 (ee) “Stock Unit” shall mean a bookkeeping entry
representing the equivalent of one Share, as awarded under the Plan. 
 (ff) “Stock Unit Agreement” shall mean
the agreement between the Company and the recipient of a Stock Unit which contains the terms, conditions and restrictions pertaining to such Stock Unit. 
 (gg) “Subsidiary” shall mean any corporation, if the Company and/or one or more other Subsidiaries own not less than 50% of the total combined voting power of all classes of outstanding
stock of such corporation. A corporation that attains the status of a Subsidiary on a date after the adoption of the Plan shall be considered a Subsidiary commencing as of such date. 

(hh) “Total and Permanent Disability” shall mean that the Optionee is unable to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or that has lasted, or can be expected to last, for a continuous period of not less than 12 months. 

SECTION 3. ADMINISTRATION. 
 (a) Committee Composition. The Plan shall be administered by the Committee. The Committee shall consist of two or more directors of the Company, who shall be appointed by the Board. In addition, the
composition of the Committee shall satisfy (i) such requirements as the Securities and Exchange Commission may establish for administrators acting under plans intended to qualify for exemption under Rule 16b-3 (or its successor) under the
Exchange Act; and (ii) such requirements as the Internal Revenue Service may establish for outside directors acting under plans intended to qualify for exemption under Section 162(m)(4)(C) of the Code. 

(b) Committee for Non-Officer Grants. The Board may also appoint one or more separate committees of the Board, each composed of
one or more directors of the Company who need not satisfy the requirements of 

  

ORANGE 21 INC. 
 2004 STOCK INCENTIVE PLAN 
 4

 
Section 3(a), who may administer the Plan with respect to Employees who are not considered officers or directors of the Company under Section 16 of the Exchange Act, may grant Awards
under the Plan to such Employees and may determine all terms of such grants. Within the limitations of the preceding sentence, any reference in the Plan to the Committee shall include such committee or committees appointed pursuant to the preceding
sentence. The Board of Directors may also authorize one or more officers of the Company to designate Employees, other than officers under Section 16 of the Exchange Act, to receive Awards and/or to determine the number of such Awards to be
received by such persons; provided, however, that the Board of Directors shall specify the total number of Awards that such officers may so award. 
 (c) Committee Procedures. The Board of Directors shall designate one of the members of the Committee as chairman. The Committee may hold meetings at such times and places as it shall determine. The
acts of a majority of the Committee members present at meetings at which a quorum exists, or acts reduced to or approved in writing by all Committee members, shall be valid acts of the Committee. 

(d) Committee Responsibilities. Subject to the provisions of the Plan, the Committee shall have full authority and discretion to
take the following actions: 
 (i) To interpret the Plan and to apply its provisions; 

(ii) To adopt, amend or rescind rules, procedures and forms relating to the Plan; 

(iii) To authorize any person to execute, on behalf of the Company, any instrument required to carry out the purposes of
the Plan; 
 (iv) To determine when Shares are to be awarded or offered for sale and when Options are to be
granted under the Plan; 
 (v) To select the Offerees and Optionees; 

(vi) To determine the number of Shares to be offered to each Offeree or to be made subject to each Option; 

(vii) To prescribe the terms and conditions of each award or sale of Shares, including (without limitation) the Purchase
Price, the vesting of the award (including accelerating the vesting of awards, either at the time of the award or sale or thereafter, without the consent of the Offeree or Optionee) and to specify the provisions of the Restricted Stock Agreement
relating to such award or sale; 
 (viii) To prescribe the terms and conditions of each Option, including
(without limitation) the Exercise Price, the vesting or duration of the Option (including accelerating the vesting of the Option), to determine whether such Option is to be classified as an ISO or as a Nonstatutory Option, and to specify the
provisions of the Stock Option Agreement relating to such Option; 
 (ix) To amend any outstanding Restricted
Stock Agreement or Stock Option Agreement, subject to applicable legal restrictions and to the consent of the Offeree or Optionee who entered into such agreement if the Offeree’s or Optionee’s rights or obligations would be adversely
affected; 
 (x) To prescribe the consideration for the grant of each Option or other right under the Plan and to
determine the sufficiency of such consideration; 

  

ORANGE 21 INC. 
 2004 STOCK INCENTIVE PLAN 
 5

 (xi) To determine the disposition of each Option or other right under the
Plan in the event of an Optionee’s or Offeree’s divorce or dissolution of marriage; 
 (xii) To
determine whether Options or other rights under the Plan will be granted in replacement of other grants under an incentive or other compensation plan of an acquired business; 

(xiii) To correct any defect, supply any omission, or reconcile any inconsistency in the Plan, any Stock Option Agreement
or any Restricted Stock Agreement; and 
 (xiv) To take any other actions deemed necessary or advisable for the
administration of the Plan. Subject to the requirements of applicable law, the Committee may designate persons other than members of the Committee to carry out its responsibilities and may prescribe such conditions and limitations as it may deem
appropriate, except that the Committee may not delegate its authority with regard to the selection for participation of or the granting of Options or other rights under the Plan to persons subject to Section 16 of the Exchange Act. All
decisions, interpretations and other actions of the Committee shall be final and binding on all Offerees, all Optionees, and all persons deriving their rights from an Offeree or Optionee. No member of the Committee shall be liable for any action
that he has taken or has failed to take in good faith with respect to the Plan, any Option, or any right to acquire Shares under the Plan. 

SECTION 4. ELIGIBILITY. 

(a) General Rule. Only Employees shall be eligible for the grant of ISOs. Only Employees, Consultants and Outside Directors shall be
eligible for the grant of Restricted Shares, Stock Units, Nonstatutory Options or SARs. 
 (b) Automatic Grants to Outside
Directors. 
 (i) Each Outside Director who first joins the Board of Directors on or after the Effective Date,
and who was not previously an Employee, shall receive a Nonstatutory Option, subject to approval of the Plan by the Company’s stockholders, to purchase 15,000 Shares (subject to adjustment under Section 11) on the date of his or her
election to the Board of Directors. The Shares subject to each Option granted under this Section 4(b)(i) shall vest and become exercisable on the first anniversary of the date of grant. Notwithstanding the foregoing, each such Option shall
become vested in full if a Change in Control occurs with respect to the Company during the Optionee’s Service. 
 (ii) On the first business day following the conclusion of each regular annual meeting of the Company’s stockholders, commencing with the annual meeting occurring after the adoption of the Plan, each
Outside Director who was not elected to the Board for the first time at such meeting and who will continue serving as a member of the Board of Directors thereafter shall receive an Option to purchase 15,000 Shares (subject to adjustment under
Section 11), provided that such Outside Director has served on the Board of Directors for at least six months. Each Option granted under the preceding sentence of this Section 4(b)(ii) shall fully vest and become exercisable on the first
anniversary of the date of grant; provided, however, that each such Option shall become exercisable in full immediately prior to the next regular annual meeting of the Company’s stockholders following such date of grant in the event such
meeting occurs prior to such first anniversary date. Notwithstanding the foregoing, each Option granted under this Section 4(b)(ii) shall become vested in full if a Change in Control occurs with respect to the Company during the Optionee’s
Service. 

  

ORANGE 21 INC. 
 2004 STOCK INCENTIVE PLAN 
 6

 (iii) The Exercise Price of all Nonstatutory Options granted to an Outside
Director under this Section 4(b) shall be equal to 100% of the Fair Market Value of a Share on the date of grant, payable in one of the forms described in Section 8(a), (b) or (d). 

(iv) All Nonstatutory Options granted to an Outside Director under this Section 4(b) shall terminate on the earlier
of (A) the day before the tenth anniversary of the date of grant of such Options or (B) the date twelve months after the termination of such Outside Director’s Service for any reason; provided, however, that any such Options that are
not vested upon the termination of the Outside Director’s Service for any reason shall terminate immediately and may not be exercised. 
 (c) Ten-Percent Stockholders. An Employee who owns more than 10% of the total combined voting power of all classes of outstanding stock of the Company, a Parent or Subsidiary shall not be eligible
for the grant of an ISO unless such grant satisfies the requirements of Section 422(c)(5) of the Code. 
 (d)
Attribution Rules. For purposes of Section 4(c) above, in determining stock ownership, an Employee shall be deemed to own the stock owned, directly or indirectly, by or for such Employee’s brothers, sisters, spouse, ancestors and
lineal descendants. Stock owned, directly or indirectly, by or for a corporation, partnership, estate or trust shall be deemed to be owned proportionately by or for its stockholders, partners or beneficiaries. 

(e) Outstanding Stock. For purposes of Section 4(c) above, “outstanding stock” shall include all stock actually
issued and outstanding immediately after the grant. “Outstanding stock” shall not include shares authorized for issuance under outstanding options held by the Employee or by any other person. 

SECTION 5. STOCK SUBJECT TO PLAN. 
 (a) Basic Limitation. Shares offered under the Plan shall be authorized but unissued Shares or treasury Shares. The maximum aggregate number of Options, SARs, Stock Units and Restricted Shares
awarded under the Plan shall not exceed 825,000 Shares, plus an annual increase on the first day of each fiscal year during the term of the Plan, with the first such increase occurring on January 1, 2005, in each case in an amount equal to the
lesser of (i) 700,000 Shares, (ii) 10% of the outstanding Shares on the last day of the immediately preceding year, or (iii) an amount determined by the Board. The limitations of this Section 5(a) shall be subject to adjustment
pursuant to Section 11. The number of Shares that are subject to Options or other rights outstanding at any time under the Plan shall not exceed the number of Shares which then remain available for issuance under the Plan. The Company, during
the term of the Plan, shall at all times reserve and keep available sufficient Shares to satisfy the requirements of the Plan. 

(b) Option/SAR Limitation. Subject to the provisions of Section 11, no Participant may receive Options or SARs under the Plan
in any calendar year that relate to more than 250,000 Shares. 
 (c) Additional Shares. If Restricted Shares or Shares
issued upon the exercise of Options are forfeited, then such Shares shall again become available for Awards under the Plan. If Stock Units, Options or SARs are forfeited or terminate for any other reason before being exercised, then the
corresponding Shares shall again become available for Awards under the Plan. If Stock Units are settled, then only the number of Shares (if any) actually issued in settlement of such Stock Units shall reduce the number available under
Section 5(a) and the balance shall again become available for Awards under the Plan. If SARs are exercised, then only the number of Shares (if any) actually issued in settlement of such SARs shall reduce the number available in
Section 5(a) and the balance shall again become available for Awards under the Plan. 

  

ORANGE 21 INC. 
 2004 STOCK INCENTIVE PLAN 
 7

 SECTION 6. RESTRICTED SHARES. 

(a) Restricted Stock Agreement. Each grant of Restricted Shares under the Plan shall be evidenced by a Restricted Stock Agreement
between the recipient and the Company. Such Restricted Shares shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various Restricted Stock
Agreements entered into under the Plan need not be identical. 
 (b) Payment for Awards. Subject to the following
sentence, Restricted Shares may be sold or awarded under the Plan for such consideration as the Committee may determine, including (without limitation) cash, cash equivalents, full-recourse promissory notes, past services and future services. To the
extent that an Award consists of newly issued Restricted Shares, the Award recipient shall furnish consideration with a value not less than the par value of such Restricted Shares in the form of cash, cash equivalents, or past services rendered to
the Company (or a Parent or Subsidiary), as the Committee may determine. 
 (c) Vesting. Each Award of Restricted Shares
may or may not be subject to vesting. Vesting shall occur, in full or in installments, upon satisfaction of the conditions specified in the Restricted Stock Agreement. A Restricted Stock Agreement may provide for accelerated vesting in the event of
the Participant’s death, disability or retirement or other events. The Committee may determine, at the time of granting Restricted Shares of thereafter, that all or part of such Restricted Shares shall become vested in the event that a Change
in Control occurs with respect to the Company. 
 (d) Voting and Dividend Rights. The holders of Restricted Shares
awarded under the Plan shall have the same voting, dividend and other rights as the Company’s other stockholders. A Restricted Stock Agreement, however, may require that the holders of Restricted Shares invest any cash dividends received in
additional Restricted Shares. Such additional Restricted Shares shall be subject to the same conditions and restrictions as the Award with respect to which the dividends were paid. 

(e) Restrictions on Transfer of Shares. Restricted Shares shall be subject to such rights of repurchase, rights of first refusal
or other restrictions as the Committee may determine. Such restrictions shall be set forth in the applicable Restricted Stock Agreement and shall apply in addition to any general restrictions that may apply to all holders of Shares. 

SECTION 7. TERMS AND CONDITIONS OF OPTIONS. 
 (a) Stock Option Agreement. Each grant of an Option under the Plan shall be evidenced by a Stock Option Agreement between the Optionee and the Company. Such Option shall be subject to all
applicable terms and conditions of the Plan and may be subject to any other terms and conditions which are not inconsistent with the Plan and which the Committee deems appropriate for inclusion in a Stock Option Agreement. The Stock Option Agreement
shall specify whether the Option is an ISO or an NSO. The provisions of the various Stock Option Agreements entered into under the Plan need not be identical. Options may be granted in consideration of a reduction in the Optionee’s other
compensation. 
 (b) Number of Shares. Each Stock Option Agreement shall specify the number of Shares that are subject to
the Option and shall provide for the adjustment of such number in accordance with Section 11. 
 (c) Exercise Price.
Each Stock Option Agreement shall specify the Exercise Price. The Exercise Price of an ISO shall not be less than 100% of the Fair Market Value of a Share on the date of grant, except as otherwise provided in Section 4(c), and the Exercise
Price of an NSO shall not be less 85% of the Fair Market Value of a Share on the date of grant. Notwithstanding the foregoing, a Stock Option Agreement may specify that the 

  

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exercise price of an NSO may vary in accordance with a predetermined formula. Subject to the foregoing in this Section 7(c), the Exercise Price under any Option shall be determined by the
Committee at its sole discretion. The Exercise Price shall be payable in one of the forms described in Section 8. 
 (d)
Withholding Taxes. As a condition to the exercise of an Option, the Optionee shall make such arrangements as the Committee may require for the satisfaction of any federal, state, local or foreign withholding tax obligations that may arise in
connection with such exercise. The Optionee shall also make such arrangements as the Committee may require for the satisfaction of any federal, state, local or foreign withholding tax obligations that may arise in connection with the disposition of
Shares acquired by exercising an Option. 
 (e) Exercisability and Term. Each Stock Option Agreement shall specify the
date when all or any installment of the Option is to become exercisable. The Stock Option Agreement shall also specify the term of the Option; provided that the term of an ISO shall in no event exceed 10 years from the date of grant (five years for
Employees described in Section 4(c)). A Stock Option Agreement may provide for accelerated exercisability in the event of the Optionee’s death, disability, or retirement or other events and may provide for expiration prior to the end of
its term in the event of the termination of the Optionee’s Service. Options may be awarded in combination with SARs, and such an Award may provide that the Options will not be exercisable unless the related SARs are forfeited. Subject to the
foregoing in this Section 7(e), the Committee at its sole discretion shall determine when all or any installment of an Option is to become exercisable and when an Option is to expire. 

(f) Exercise of Options Upon Termination of Service. Each Stock Option Agreement shall set forth the extent to which the Optionee
shall have the right to exercise the Option following termination of the Optionee’s Service with the Company and its Subsidiaries, and the right to exercise the Option of any executors or administrators of the Optionee’s estate or any
person who has acquired such Option(s) directly from the Optionee by bequest or inheritance. Such provisions shall be determined in the sole discretion of the Committee, need not be uniform among all Options issued pursuant to the Plan, and may
reflect distinctions based on the reasons for termination of Service. 
 (g) Effect of Change in Control. The Committee
may determine, at the time of granting an Option or thereafter, that such Option shall become exercisable as to all or part of the Shares subject to such Option in the event that a Change in Control occurs with respect to the Company. 

(h) Leaves of Absence. An Employee’s Service shall cease when such Employee ceases to be actively employed by, or a
Consultant to, the Company (or any subsidiary) as determined in the sole discretion of the Board of Directors. For purposes of Options, Service does not terminate when an Employee goes on a bona fide leave of absence, that was approved by the
Company in writing, if the terms of the leave provide for continued service crediting, or when continued service crediting is required by applicable law. However, for purposes of determining whether an Option is entitled to ISO status, an
Employee’s Service will be treated as terminating 90 days after such Employee went on leave, unless such Employee’s right to return to active work is guaranteed by law or by a contract. Service terminates in any event when the approved
leave ends, unless such Employee immediately returns to active work. The Company determines which leaves count toward Service, and when Service terminates for all purposes under the Plan. 

(i) No Rights as a Stockholder. An Optionee, or a transferee of an Optionee, shall have no rights as a stockholder with respect to
any Shares covered by his Option until the date of the issuance of a stock certificate for such Shares. No adjustments shall be made, except as provided in Section 11. 
 (j) Modification, Extension and Renewal of Options. Within the limitations of the Plan, the Committee may modify, extend or renew outstanding options or may accept the cancellation of outstanding
options (to the 

  

ORANGE 21 INC. 
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extent not previously exercised), whether or not granted hereunder, in return for the grant of new Options for the same or a different number of Shares and at the same or a different exercise
price, or in return for the grant of the same or a different number of Shares. The foregoing notwithstanding, no modification of an Option shall, without the consent of the Optionee, adversely affect his or her rights or obligations under such
Option. 
 (k) Restrictions on Transfer of Shares. Any Shares issued upon exercise of an Option shall be subject to such
special forfeiture conditions, rights of repurchase, rights of first refusal and other transfer restrictions as the Committee may determine. Such restrictions shall be set forth in the applicable Stock Option Agreement and shall apply in addition to
any general restrictions that may apply to all holders of Shares. 
 (l) Buyout Provisions. The Committee may at any time
(a) offer to buy out for a payment in cash or cash equivalents an Option previously granted or (b) authorize an Optionee to elect to cash out an Option previously granted, in either case at such time and based upon such terms and
conditions as the Committee shall establish. 
 SECTION 8. PAYMENT FOR SHARES. 

(a) General Rule. The entire Exercise Price or Purchase Price of Shares issued under the Plan shall be payable in lawful money of
the United States of America at the time when such Shares are purchased, except as provided in Section 8(b) through Section 8(g) below. 
 (b) Surrender of Stock. To the extent that a Stock Option Agreement so provides, payment may be made all or in part by surrendering, or attesting to the ownership of, Shares which have already been
owned by the Optionee or his representative. Such Shares shall be valued at their Fair Market Value on the date when the new Shares are purchased under the Plan. The Optionee shall not surrender, or attest to the ownership of, Shares in payment of
the Exercise Price if such action would cause the Company to recognize compensation expense (or additional compensation expense) with respect to the Option for financial reporting purposes. 

(c) Services Rendered. At the discretion of the Committee, Shares may be awarded under the Plan in consideration of services
rendered to the Company or a Subsidiary prior to the award. If Shares are awarded without the payment of a Purchase Price in cash, the Committee shall make a determination (at the time of the award) of the value of the services rendered by the
Offeree and the sufficiency of the consideration to meet the requirements of Section 6(b). 
 (d) Cashless Exercise.
To the extent that a Stock Option Agreement so provides, payment may be made all or in part by delivery (on a form prescribed by the Committee) of an irrevocable direction to a securities broker to sell Shares and to deliver all or part of the sale
proceeds to the Company in payment of the aggregate Exercise Price. 
 (e) Exercise/Pledge. To the extent that a Stock
Option Agreement so provides, payment may be made all or in part by delivery (on a form prescribed by the Committee) of an irrevocable direction to a securities broker or lender to pledge Shares, as security for a loan, and to deliver all or part of
the loan proceeds to the Company in payment of the aggregate Exercise Price. 
 (f) Promissory Note. To the extent that a
Stock Option Agreement or Restricted Stock Agreement so provides, payment may be made all or in part by delivering (on a form prescribed by the Company) a full-recourse promissory note. However, the par value of the Common Shares being purchased
under the Plan, if newly issued, shall be paid in cash or cash equivalents. 

  

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 (g) Other Forms of Payment. To the extent that a Stock Option Agreement or Restricted
Stock Agreement so provides, payment may be made in any other form that is consistent with applicable laws, regulations and rules. 
 (h) Limitations under Applicable Law. Notwithstanding anything herein or in a Stock Option Agreement or Restricted Stock Agreement to the contrary, payment may not be made in any form that is
unlawful, as determined by the Committee in its sole discretion. 
 SECTION 9. STOCK APPRECIATION RIGHTS. 

(a) SAR Agreement. Each grant of a SAR under the Plan shall be evidenced by a SAR Agreement between the Optionee and the Company.
Such SAR shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various SAR Agreements entered into under the Plan need not be identical. SARs may be
granted in consideration of a reduction in the Optionee’s other compensation. 
 (b) Number of Shares. Each SAR
Agreement shall specify the number of Shares to which the SAR pertains and shall provide for the adjustment of such number in accordance with Section 11. 
 (c) Exercise Price. Each SAR Agreement shall specify the Exercise Price. A SAR Agreement may specify an Exercise Price that varies in accordance with a predetermined formula while the SAR is
outstanding. 
 (d) Exercisability and Term. Each SAR Agreement shall specify the date when all or any installment of the
SAR is to become exercisable. The SAR Agreement shall also specify the term of the SAR. A SAR Agreement may provide for accelerated exercisability in the event of the Optionee’s death, disability or retirement or other events and may provide
for expiration prior to the end of its term in the event of the termination of the Optionee’s service. SARs may be awarded in combination with Options, and such an Award may provide that the SARs will not be exercisable unless the related
Options are forfeited. A SAR may be included in an ISO only at the time of grant but may be included in an NSO at the time of grant or thereafter. A SAR granted under the Plan may provide that it will be exercisable only in the event of a Change in
Control. 
 (e) Effect of Change in Control. The Committee may determine, at the time of granting a SAR or thereafter,
that such SAR shall become fully exercisable as to all Common Shares subject to such SAR in the event that a Change in Control occurs with respect to the Company. 
 (f) Exercise of SARs. Upon exercise of a SAR, the Optionee (or any person having the right to exercise the SAR after his or her death) shall receive from the Company (a) Shares, (b) cash
or (c) a combination of Shares and cash, as the Committee shall determine. The amount of cash and/or the Fair Market Value of Shares received upon exercise of SARs shall, in the aggregate, be equal to the amount by which the Fair Market Value
(on the date of surrender) of the Shares subject to the SARs exceeds the Exercise Price. 
 (g) Modification or Assumption of
SARs. Within the limitations of the Plan, the Committee may modify, extend or assume outstanding SARs or may accept the cancellation of outstanding SARs (whether granted by the Company or by another issuer) in return for the grant of new SARs
for the same or a different number of shares and at the same or a different exercise price. The foregoing notwithstanding, no modification of a SAR shall, without the consent of the holder, may alter or impair his or her rights or obligations under
such SAR. 

  

ORANGE 21 INC. 
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 SECTION 10. STOCK UNITS. 
 (a) Stock Unit Agreement. Each grant of Stock Units under the Plan shall be evidenced by a Stock Unit Agreement between the recipient and the Company. Such Stock Units shall be subject to all
applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various Stock Unit Agreements entered into under the Plan need not be identical. Stock Units may be granted in
consideration of a reduction in the recipient’s other compensation. 
 (b) Payment for Awards. To the extent that an
Award is granted in the form of Stock Units, no cash consideration shall be required of the Award recipients. 
 (c) Vesting
Conditions. Each Award of Stock Units may or may not be subject to vesting. Vesting shall occur, in full or in installments, upon satisfaction of the conditions specified in the Stock Unit Agreement. A Stock Unit Agreement may provide for
accelerated vesting in the event of the Participant’s death, disability or retirement or other events. The Committee may determine, at the time of granting Stock Units or thereafter, that all or part of such Stock Units shall become vested in
the event that a Change in Control occurs with respect to the Company. 
 (d) Voting and Dividend Rights. The holders of
Stock Units shall have no voting rights. Prior to settlement or forfeiture, any Stock Unit awarded under the Plan may, at the Committee’s discretion, carry with it a right to dividend equivalents. Such right entitles the holder to be credited
with an amount equal to all cash dividends paid on one Share while the Stock Unit is outstanding. Dividend equivalents may be converted into additional Stock Units. Settlement of dividend equivalents may be made in the form of cash, in the form of
Shares, or in a combination of both. Prior to distribution, any dividend equivalents which are not paid shall be subject to the same conditions and restrictions (including without limitation, any forfeiture conditions) as the Stock Units to which
they attach. 
 (e) Form and Time of Settlement of Stock Units. Settlement of vested Stock Units may be made in the form of
(a) cash, (b) Shares or (c) any combination of both, as determined by the Committee. The actual number of Stock Units eligible for settlement may be larger or smaller than the number included in the original Award, based on
predetermined performance factors. Methods of converting Stock Units into cash may include (without limitation) a method based on the average Fair Market Value of Shares over a series of trading days. Vested Stock Units may be settled in a lump sum
or in installments. The distribution may occur or commence when all vesting conditions applicable to the Stock Units have been satisfied or have lapsed, or it may be deferred to any later date. The amount of a deferred distribution may be increased
by an interest factor or by dividend equivalents. Until an Award of Stock Units is settled, the number of such Stock Units shall be subject to adjustment pursuant to Section 11. 

(f) Death of Recipient. Any Stock Units Award that becomes payable after the recipient’s death shall be distributed to the
recipient’s beneficiary or beneficiaries. Each recipient of a Stock Units Award under the Plan shall designate one or more beneficiaries for this purpose by filing the prescribed form with the Company. A beneficiary designation may be changed
by filing the prescribed form with the Company at any time before the Award recipient’s death. If no beneficiary was designated or if no designated beneficiary survives the Award recipient, then any Stock Units Award that becomes payable after
the recipient’s death shall be distributed to the recipient’s estate. 
 (g) Creditors’ Rights. A holder of Stock
Units shall have no rights other than those of a general creditor of the Company. Stock Units represent an unfunded and unsecured obligation of the Company, subject to the terms and conditions of the applicable Stock Unit Agreement. 

  

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 SECTION 11. ADJUSTMENT OF SHARES. 

(a) Adjustments. In the event of a subdivision of the outstanding Stock, a declaration of a dividend payable in Shares, a declaration of a
dividend payable in a form other than Shares in an amount that has a material effect on the price of Shares, a combination or consolidation of the outstanding Stock (by reclassification or otherwise) into a lesser number of Shares, a
recapitalization, a spin-off or a similar occurrence, the Committee shall make such adjustments as it, in its sole discretion, deems appropriate in one or more of: 

(i) The number of Options, SARs, Restricted Shares and Stock Units available for future Awards under Section 5;

 (ii) The limitations set forth in Section 5(a) and (b); 

(iii) The number of NSOs to be granted to Outside Directors under Section 4(b); 

(iv) The number of Shares covered by each outstanding Option and SAR; 

(v) The Exercise Price under each outstanding Option and SAR; or 

(vi) The number of Stock Units included in any prior Award which has not yet been settled. Except as provided in this
Section 11, a Participant shall have no rights by reason of any issue by the Company of stock of any class or securities convertible into stock of any class, any subdivision or consolidation of shares of stock of any class, the payment of any
stock dividend or any other increase or decrease in the number of shares of stock of any class. 
 (b) Dissolution or
Liquidation. To the extent not previously exercised or settled, Options, SARs and Stock Units shall terminate immediately prior to the dissolution or liquidation of the Company. 

(c) Reorganizations. In the event that the Company is a party to a merger or other reorganization, outstanding Awards shall be
subject to the agreement of merger or reorganization. Such agreement shall provide for: 
 (i) The continuation
of the outstanding Awards by the Company, if the Company is a surviving corporation; 
 (ii) The assumption of
the outstanding Awards by the surviving corporation or its parent or subsidiary; 
 (iii) The substitution by the
surviving corporation or its parent or subsidiary of its own awards for the outstanding Awards; 
 (iv) Full
exercisability or vesting and accelerated expiration of the outstanding Awards; or 
 (v) Settlement of the full
value of the outstanding Awards in cash or cash equivalents followed by cancellation of such Awards. 
 (d) Reservation of
Rights. Except as provided in this Section 11, an Optionee or Offeree shall have no rights by reason of any subdivision or consolidation of shares of stock of any class, the payment of any dividend or any other increase or decrease in the
number of shares of stock of any class. Any issue by the Company of 

  

ORANGE 21 INC. 
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shares of stock of any class, or securities convertible into shares of stock of any class, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number or
Exercise Price of Shares subject to an Option. The grant of an Option pursuant to the Plan shall not affect in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or changes of its capital or business
structure, to merge or consolidate or to dissolve, liquidate, sell or transfer all or any part of its business or assets. 
 SECTION 12.
DEFERRAL OF AWARDS. 
 The Committee (in its sole discretion) may permit or require a Participant to: 

(a) Have cash that otherwise would be paid to such Participant as a result of the exercise of a SAR or the settlement of Stock Units
credited to a deferred compensation account established for such Participant by the Committee as an entry on the Company’s books; 
 (b) Have Shares that otherwise would be delivered to such Participant as a result of the exercise of an Option or SAR converted into an equal number of Stock Units; or 

(c) Have Shares that otherwise would be delivered to such Participant as a result of the exercise of an Option or SAR or the settlement
of Stock Units converted into amounts credited to a deferred compensation account established for such Participant by the Committee as an entry on the Company’s books. Such amounts shall be determined by reference to the Fair Market Value of
such Shares as of the date when they otherwise would have been delivered to such Participant. 
 A deferred compensation account
established under this Section 12 may be credited with interest or other forms of investment return, as determined by the Committee. A Participant for whom such an account is established shall have no rights other than those of a general
creditor of the Company. Such an account shall represent an unfunded and unsecured obligation of the Company and shall be subject to the terms and conditions of the applicable agreement between such Participant and the Company. If the deferral or
conversion of Awards is permitted or required, the Committee (in its sole discretion) may establish rules, procedures and forms pertaining to such Awards, including (without limitation) the settlement of deferred compensation accounts established
under this Section 12. 
 SECTION 13. AWARDS UNDER OTHER PLANS. 

The Company may grant awards under other plans or programs. Such awards may be settled in the form of Shares issued under this Plan. Such
Shares shall be treated for all purposes under the Plan like Shares issued in settlement of Stock Units and shall, when issued, reduce the number of Shares available under Section 5. 
 SECTION 14. PAYMENT OF DIRECTOR’S FEES IN SECURITIES. 
 (a)
Effective Date. No provision of this Section 14 shall be effective unless and until the Board has determined to implement such provision. 
 (b) Elections to Receive NSOs, Restricted Shares or Stock Units. An Outside Director may elect to receive his or her annual retainer payments and/or meeting fees from the Company in the form of
cash, NSOs, Restricted Shares or Stock Units, or a combination thereof, as determined by the Board. Such NSOs, Restricted Shares and Stock Units shall be issued under the Plan. An election under this Section 14 shall be filed with the Company
on the prescribed form. 

  

ORANGE 21 INC. 
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 (c) Number and Terms of NSOs, Restricted Shares or Stock Units. The number of NSOs,
Restricted Shares or Stock Units to be granted to Outside Directors in lieu of annual retainers and meeting fees that would otherwise be paid in cash shall be calculated in a manner determined by the Board. The terms of such NSOs, Restricted Shares
or Stock Units shall also be determined by the Board. 
 SECTION 15. LEGAL AND REGULATORY REQUIREMENT. 

Shares shall not be issued under the Plan unless the issuance and delivery of such Shares complies with (or is exempt from) all applicable
requirements of law, including (without limitation) the Securities Act of 1933, as amended, the rules and regulations promulgated thereunder, state securities laws and regulations and the regulations of any stock exchange on which the Company’s
securities may then be listed, and the Company has obtained the approval or favorable ruling from any governmental agency which the Company determines is necessary or advisable. 
 SECTION 16. WITHHOLDING TAXES. 
 (a) General. To the extent required
by applicable federal, state, local or foreign law, a Participant or his or her successor shall make arrangements satisfactory to the Company for the satisfaction of any withholding tax obligations that arise in connection with the Plan. The Company
shall not be required to issue any Shares or make any cash payment under the Plan until such obligations are satisfied. 

(b) Share Withholding. The Committee may permit a Participant to satisfy all or part of his or her withholding or income tax
obligations by having the Company withhold all or a portion of any Shares that otherwise would be issued to him or her or by surrendering all or a portion of any Shares that he or she previously acquired. Such Shares shall be valued at their Fair
Market Value on the date when taxes otherwise would be withheld in cash. In no event may a Participant have Shares withheld that would otherwise be issued to him or her in excess of the number necessary to satisfy the legally required minimum tax
withholding. 
 SECTION 17. TRANSFERABILITY. 
 Unless the agreement evidencing an Award (or an amendment thereto authorized by the Committee) expressly provides otherwise, no Award granted under this Plan, nor any interest in such Award, may be sold,
assigned, conveyed, gifted, pledged, hypothecated or otherwise transferred in any manner (prior to the vesting and lapse of any and all restrictions applicable to Shares issued under such Award), other than by will or the laws of descent and
distribution; provided, however, that an ISO may be transferred or assigned only to the extent consistent with Section 422 of the Code. Any purported assignment, transfer or encumbrance in violation of this Section 17 shall be void and
unenforceable against the Company. 
 SECTION 18. NO EMPLOYMENT RIGHTS. 

No provision of the Plan, nor any right or Option granted under the Plan, shall be construed to give any person any right to become, to be
treated as, or to remain an Employee. The Company and its Subsidiaries reserve the right to terminate any person’s Service at any time and for any reason, with or without notice. 

  

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 SECTION 19. DURATION AND AMENDMENTS. 

(a) Term of the Plan. The Plan, as set forth herein, shall terminate automatically ten (10) years after its adoption by the
Board. The Plan may be terminated on any earlier date pursuant to Subsection (b) below. 
 (b) Right to Amend or
Terminate the Plan. The Board of Directors may amend the Plan at any time and from time to time. Rights and obligations under any Award granted before amendment of the Plan shall not be materially impaired by such amendment, except with consent
of the Participant. An amendment of the Plan shall be subject to the approval of the Company’s stockholders only to the extent required by applicable laws, regulations or rules. 

(c) Effect of Termination. No Awards shall be granted under the Plan after the termination thereof. The termination of the Plan
shall not affect any Award previously granted under the Plan. 
 [Remainder of this page intentionally left blank] 

SECTION 20. EXECUTION. 

To record the amendment and restatement of the Plan by the Board of Directors on April 26, 2007, the Company has caused its
authorized officer to execute the same. 
  

			
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ORANGE 21 INC. 
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