Document:

Warrant Agreement with Regent Pacific

 Exhibit 4.1 
 ORANGE 21 INC. 
 WARRANT 

NEITHER THIS WARRANT NOR THE SHARES OF STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE BEEN: (A) REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION (“SEC”) UNDER SECTION 5 OF THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) IN RELIANCE UPON ONE OR MORE EXEMPTIONS FROM REGISTRATION OR QUALIFICATION AFFORDED BY THE SECURITIES ACT AND/OR RULES
PROMULGATED BY THE SEC PURSUANT THERETO; OR (B) REGISTERED OR QUALIFIED (AS THE CASE MAY BE) UNDER THE SECURITIES LAWS OF ANY STATE OR TERRITORY OF THE UNITED STATES, IN RELIANCE UPON ONE OR MORE EXEMPTIONS FROM REGISTRATION OR QUALIFICATION
(AS THE CASE MAY BE) AFFORDED UNDER SUCH SECURITIES LAWS. THIS WARRANT HAS BEEN ACQUIRED FOR HOLDER’S OWN ACCOUNT FOR INVESTMENT PURPOSES ONLY AND NOT WITH A VIEW FOR RESALE OR DISTRIBUTION. 

 

							
	 Warrant Shares: 244,163
	  	Effective Date:	  	 	April 12, 2011	  

 THIS CERTIFIES THAT, for value received, Regent Pacific Management Corporation (“Holder”) is entitled,
subject to the terms and conditions of this Warrant, to purchase from Orange 21 Inc., a Delaware corporation (“Company”), up to 244,163 shares of common stock of the Company (the “Common Stock” and such shares and
all other shares issued or issuable pursuant to this Warrant, “Warrant Shares”) at a purchase price of $1.85 per share (the “Exercise Price”). 
 1. Definitions: For the purposes hereof, in addition to the terms defined elsewhere in this Warrant, the following terms shall have the following meanings: 

“Change in Control” means any of the following transactions: 

 

	 	(a)	a merger or consolidation of the Company with or into another Person where the Company is not the surviving corporation or a merger or consolidation in which the
Company’s stockholders prior to such merger or consolidation hold less than 50% of the voting power of the Company immediately after the merger or consolidation; 

 

	 	(b)	a reverse triangular merger in which the Company is the surviving entity but the shares of the Company’s capital stock outstanding immediately prior to the merger
are converted by virtue of the merger into other property, whether in the form of securities, cash, or otherwise; or 

  

	 	(c)	the sale or other disposition of all or substantially all of the assets of the Company, unless the Company’s stockholders prior to such sale hold at least 50% of
the voting power of the acquiring Person immediately after the sale or other disposition. 

 Notwithstanding the
foregoing, a transaction shall not constitute a Change in Control if its sole purpose is to change the state of the Company’s incorporation. 
 “Effective Date” means the date first set forth above. 

  
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 “Exchange Act” means the Securities Exchange Act of 1934, as amended.

 “Exercise Date” means, in the case of an exercise pursuant to Section 3.1, the date on which the
aggregate Exercise Price is received by the Company, together with delivery of the Notice of Exercise and this Warrant, in accordance with Section 3.1. 
 “Fair Market Value” of a share of Common Stock as of a particular date means: 
  

	 	(d)	If the Common Stock is then listed or quoted on a Trading Market, the Fair Market Value shall be deemed to be the average of the closing price of the Common Stock on
such Trading Market over the 10 Trading Days ending on the Trading Day immediately prior to the Exercise Date; 

  

	 	(e)	If the Common Stock is not then quoted or listed on a Trading Market and if prices for the Common Stock are then reported in the “Pink Sheets” published by
Pink Sheets, LLC (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported; and 

 

	 	(f)	If the Common Stock is not then quoted or listed on a Trading Market and if prices for the Common Stock are not then reported in the “Pink Sheets,” the Fair
Market Value shall be the value thereof, as agreed upon by the Company and Holder; provided, however, that if the Company and Holder cannot agree on such value, such value shall be determined by an independent valuation firm experienced in valuing
businesses such as the Company and jointly selected in good faith by the Company and Holder. Fees and expenses of the valuation firms shall be paid equally by the Company and Holder. 

“Person” means any individual, sole proprietorship, partnership, joint venture, trust, unincorporated association,
corporation, limited liability company, entity, including any governmental authority or political subdivision thereof. 

“Notice of Exercise” means the form of notice of exercise attached hereto as Exhibit A. 

“Trading Day” means a day on which the principal Trading Market on which the Common Stock is then listed or quoted is
open for trading. 
 “Trading Market” means any of the following markets or exchanges on which the Common Stock
is listed or quoted for trading on the date in question: the NYSE Amex, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange or the OTC Bulletin Board (or any successors to any of the
foregoing); provided that if on the date in question the Common Stock is not listed or quoted for trading on any of the foregoing markets or exchanges, “Trading Market” shall mean the New York Stock Exchange. 

“Transfer” means any sale, assignment, transfer, conveyance, pledge, hypothecation or other disposition, voluntarily or
involuntarily, by operation of law, with or without consideration, or otherwise (including by way of intestacy, will, gift, bankruptcy, receivership, levy, execution, charging order or other similar sale or seizure by legal process). 

“Warrant” means this Warrant and any warrant delivered in substitution or exchange therefor as provided herein.

  
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 2. Term. This Warrant is exercisable at the option of Holder, at any time or from time to time, in
whole or in part (but not for a fraction of a share), at any time following the Effective Date and before 4:30 P.M. San Diego, California time on the earliest to occur of (a) April 11, 2021 or (b) the consummation of a Change in
Control (the earlier to occur of (a) or (b), the “Expiration Time”). At least 10 days prior to the occurrence of a Change in Control, the Company shall send to Holder notice of such Change in Control and that Holder’s
rights under this Warrant shall terminate upon the occurrence of such Change in Control; provided that if the Company sends such notice less than 10 days prior to the occurrence of such Change in Control, Holder’s right to exercise this
Warrant shall be extended for a period of 10 days after the date the notice is sent by the Company, after which time Holder’s rights under this Warrant shall terminate. 
 3. Exercise. 
 3.1 Payment. Subject to compliance with the terms and
conditions of this Warrant and applicable securities laws, this Warrant may be exercised, in whole or in part at any time or from time to time, from and after the Effective Date and on or before the Expiration Time by delivery of: 

 

	 	(a)	a Notice of Exercise duly executed by Holder to the Company at its principal office, 

 

	 	(b)	this Warrant to the Company at its principal office, and 

  

	 	(c)	payment by cashier’s check or by wire transfer of an amount equal to the product of (i) the number of Warrant Shares being acquired upon such exercise
multiplied by (ii) the then effective Exercise Price. 

 3.2 Stock Certificates; Fractional Shares. As
soon as practicable on or after any Exercise Date, the Company shall cause to be issued and delivered to Holder a certificate or certificates for the number of whole Warrant Shares issuable upon such exercise, together with cash in lieu of any
fraction of a share equal to such fraction of the current Fair Market Value of one whole Warrant Share as of the Exercise Date. No fractional shares or scrip representing fractional shares shall be issued upon an exercise of this Warrant.

 3.3 Partial Exercise; Effective Date of Exercise. In case of any partial exercise of this Warrant, the Company shall
cancel this Warrant upon surrender hereof and shall execute and deliver a new Warrant of like tenor and date for the balance of the Warrant Shares purchasable hereunder. This Warrant shall be deemed to have been exercised immediately prior to the
close of business on the Exercise Date. Holder shall be treated for all purposes as Holder of record of the Warrant Shares to which it is entitled upon exercise of this Warrant as of the Trading Day immediately following the Exercise Date.

 3.4 Exercise Price Adjustment. 
 (a) Stock Dividend, Subdivision and Combination. The Exercise Price in effect at any time and the number of Warrant Shares subject to this Warrant shall be adjusted from time to time if the Company
(i) declares a dividend or makes a distribution on its outstanding shares of Common Stock in shares of Common Stock, (ii) subdivides or reclassifies its outstanding shares of Common Stock into a greater number of shares, or (iii) combines or
reclassifies its outstanding shares of Common Stock into a smaller number of shares. If any of the foregoing occurs, the Exercise Price in effect at the time of the record date for such dividend or distribution or of the effective date of such
subdivision, combination or reclassification shall be adjusted so that it equals the product of (a) the Exercise Price multiplied by (b) a 

  
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fraction, the numerator of which shall be the number of shares of Common Stock outstanding immediately prior to such action and the denominator of which shall be the number of shares of Common
Stock outstanding after giving effect to such action. Such adjustment shall be made successively whenever any event listed above occurs. 
 (b) Adjustment in Number of Securities. Upon each adjustment of the Exercise Price pursuant to Section 3.4(a), the number of Warrant Shares issuable upon exercise of this Warrant at the
Exercise Price as adjusted shall be adjusted to the nearest number of whole shares of Common Stock determined by dividing (i) the product of the Exercise Price in effect immediately prior to such adjustment multiplied by the number of Warrant
Shares issuable upon exercise of this Warrant immediately prior to such adjustment by (ii) the Exercise Price as adjusted. 

(c) Notice of Adjustment. Whenever the Exercise Price is adjusted pursuant to this Section 3.4, the Company shall provide
notice of such adjustment to Holder together with a statement, certified by an officer of the Company, stating the facts requiring such adjustment and the Exercise Price in effect after such adjustment. Notwithstanding anything to the contrary
herein, no adjustment in the Exercise Price shall be required unless such adjustment would require a change in the Exercise Price of at least one cent ($0.01); provided that any adjustments which by reason of this Section 3.4(c) are not
required to be made shall be carried forward and taken into account in any subsequent adjustment. 
 (d) Calculations.
All calculations made pursuant to this Section 3.4 shall be made to the nearest cent ($0.01) and/or the nearest 1/100th of a share, as the case may be. For purposes of this Section 3.4, the number of shares of Common Stock deemed to be
issued and outstanding as of a given date shall be the number of shares of Common Stock (excluding any treasury shares of the Company) issued and outstanding. 
 4. Valid Issuance; Taxes. All Warrant Shares issued upon the exercise of this Warrant shall be validly issued, fully paid and non-assessable; provided that Holder shall pay all taxes and
other governmental charges that may be imposed in respect of the issue or delivery thereof. The Company shall not be required to pay any tax or other charge imposed in connection with any transfer involved in the issuance of any certificate
representing any Warrant Shares in any name other than that of Holder, and in such case the Company shall not be required to issue or deliver any stock certificate or security until such tax or other charge has been paid, or it has been established
to the Company’s satisfaction that no tax or other charge is due. 
 5. Representations; Restrictions On Transfer. 

5.1 Holder represents that (i) it is an “Accredited Investor” (within the meaning of Rule 501 of Regulation D of the
Securities Act of 1933, as amended) (“Accredited Investor”) and (ii) it has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of the prospective investment.
Holder acknowledges that the Company is relying on its representation in connection with the issuance of this Warrant pursuant to applicable securities laws, including the Securities Act of 1933, as amended (the “Securities Act”).

 5.2 Holder, by acceptance hereof, agrees that, absent an effective registration statement filed with the SEC under the
Securities Act covering the disposition or sale of this Warrant or the Warrant Shares, as the case may be, and registration or qualification under applicable state securities laws, Holder shall not Transfer any or all of this Warrant or Warrant
Shares, as the case may be, unless the Company has received a written opinion of counsel, in form and substance satisfactory to the Company, that no such registration is required and that the transfer will not otherwise violate the Securities Act,
the Exchange Act or applicable state securities laws. Holder agrees and acknowledges that the Company may 

  
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cause a legend to be placed on any certificates representing Warrant Shares or placing a notation to its transfer books similar to the legend on the face of this Warrant. 

5.3 Notwithstanding Section 5.2 above, Holder may transfer or assign this Warrant or the Warrant Shares, or a portion thereof, to
Regent Pacific Management, LLC (“RP LLC”) in 2011 (which entity Holder represents will engage in a similar business to that of Holder) and Holder and RP LLC may transfer or assign this Warrant for no cash consideration (i) to
officers, employees or members of RP LLC or to the primary consultant involved in the project related to which this Warrant was received (collectively the “RP Affiliates”) or (ii) to an entity wholly owned by any of the RP
Affiliates (“RP Affiliate Entity”) provided, in each case, that (a) RP LLC and each such RP Affiliate shall respectively represent, acknowledge and certify to the Company that (A) it/he has such knowledge and experience in
financial and business matters that it/he is capable of evaluating the merits and risks of the prospective investment, (B) it/he is an Accredited Investor (as defined in Section 5.1), (C) the Company has not provided any advice to
Holder, RP LLC or any RP Affiliates (as applicable) with respect to the tax effects or tax treatment of any transfer, assignment or exercise of this Warrant, and (D) each of Holder, RP LLC and any RP Affiliates have received independent legal
and tax advice regarding the transfer, assignment and exercise of this Warrant, (b) RP LLC and such RP Affiliate or RP Affiliate Entity shall agree in writing to be bound by the terms of this Warrant, and (c) no such transfer or assignment
shall be made to more than five (5) RP Affiliates or related entities in the aggregate. 
 5.4 In the event the Company
grants piggyback registration rights to Costa Brava or its affiliate in the future, the Company will use its best efforts to grant similar piggyback registration rights to Holder. 
 6. Miscellaneous. 
 6.1 Notices. Any and all notices or other
communications or deliveries to be provided by Holder hereunder shall be in writing and delivered personally, by facsimile to the facsimile number of the Company set forth on the signature page hereof, or sent by a nationally recognized overnight
courier service addressed to the Company at the address set forth on the signature page hereof, by email to the email address set fort on the signature page hereof, provided email receipt is acknowledged, or such other facsimile number or address as
the Company may specify for such purposes by notice to Holder delivered in accordance with this Section 6.1. Any and all notices or other communications or deliveries to be provided by the Company hereunder shall be in writing and delivered
personally, by facsimile, or sent by a nationally recognized overnight courier service addressed to Holder at the facsimile number or address of Holder appearing on the books of the Company, or if no such facsimile number or address appears on the
books of the Company, at the principal place of business of Holder as set forth on the signature page hereof. Any notice or other communication or deliveries hereunder shall be deemed given and effective on the earliest of (i) the date of
transmission, if such notice or communication is delivered via facsimile at the facsimile number set forth on the signature pages hereof on or prior to 4:30 p.m. (Pacific time) on any date, (ii) the next Trading Day after the date of
transmission, if such notice or communication is delivered via facsimile at the facsimile number set forth on the signature pages hereof on a day that is not a Trading Day or after 4:30 p.m. (Pacific time) on any Trading Day, (iii) the second
Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service or (iv) upon actual receipt by the party to whom such notice is required to be given. 

6.2 Lost or Mutilated Warrant. If this Warrant is mutilated, lost, stolen or destroyed, the Company shall execute and deliver, in
exchange and substitution for and upon cancellation of a mutilated Warrant, or in lieu of or in substitution for a lost, stolen or destroyed Warrant, a new Warrant of like tenor as the lost, stolen, destroyed or mutilated Warrant, but only upon
receipt of an affidavit and indemnity 

  
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agreement from Holder and evidence of such loss, theft or destruction of this Warrant, and of the ownership hereof, in each case, reasonably satisfactory to the Company. 

6.3 Waiver. Any waiver by the Company or Holder of a breach of any provision of this Warrant shall not operate as or be construed
to be a waiver of any other breach of such provision or of any breach of any other provision of this Warrant. The failure of the Company or Holder to insist upon strict adherence to any term of this Warrant on one or more occasions shall not be
considered a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Warrant on any other occasion. Any waiver by the Company or Holder must be in writing. 

6.4 Headings. The headings contained herein are for convenience only, do not constitute a part of this Warrant and shall not be
deemed to limit or affect any of the provisions hereof. 
 6.5 Amendments. This Warrant may be modified or amended or the
provisions hereof waived with the prior written consent of the Company and Holder. 
 6.6 Saturdays, Sundays and
Holidays. If the Expiration Time falls on any day that is not a Trading Day, the Expiration Time shall automatically be extended until 4:30 P.M. the next Trading Day. 
 6.7 Governing Law. This Warrant shall be governed by and construed in accordance with the laws of the State of California without regard to the conflict of laws provisions. The parties agree that
the California Superior Court located in the County of San Diego, State of California shall have exclusive jurisdiction in connection with any dispute concerning or arising out of this Warrant, or otherwise relating to the parties relationship. In
any action, lawsuit or proceeding brought to enforce or interpret the provisions of this Warrant and/or arising out of or relating to any dispute between the parties, the prevailing party with respect to each specific issue in a matter shall be
entitled to recover all of his or its costs and expenses relating to such issue (including without limitation, reasonable attorney’s fees and disbursements) in addition to any other relief to which such party may be entitled. 

6.8 Severability. If any term, provision, covenant or restriction of this Warrant is held by a court of competent jurisdiction to
be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Warrant shall remain in full force and effect and shall in no way be affected, impaired or invalidated. 

6.9 Counterparts. This Warrant may be executed in any number of counterparts and each such executed counterpart shall be, and
shall be deemed to be, an original instrument. 
 [Signature Page Follows] 

  
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 IN WITNESS WHEREOF, the undersigned duly authorized has executed this Warrant as of the day
and date first written above. 
  

							
		 		 	ORANGE 21 INC., a Delaware corporation
				
		 		 	By:	 	/s/     Carol Montgomery
		 		 		 	 Carol Montgomery, Chief Executive Officer

		 		 	
		 		 	Address:
		 		 		 	        2070 Las Palmas Drive
		 		 		 	        Carlsbad CA 92009
		 		 		 	        Attn: Chief Executive Officer
				
		 		 	Fax:	 	 
			
		 		 	Agreed and Accepted:
			
		 		 	Holder:
			
		 		 	REGENT PACIFIC MANAGEMENT
		 		 	CORPORATION, a California corporation
				
		 		 	By:	 	/s/     Stephen M. Race
		 		 		 	Stephen M. Race, Chief Executive Officer

							
		 		 	
		 		 	Address:
		 		 		 	        433 California Street, Suite 210
		 		 		 	        San Francisco. CA 94104
		 		 		 	        Attn: Chief Executive Officer
				
		 		 	Fax:	 	 

  
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 EXHIBIT A 
 NOTICE OF EXERCISE 
 (To be executed upon exercise of Warrant)

 TO: ORANGE 21 INC. 
  

	1.	The undersigned hereby elects to purchase
                     Warrant Shares pursuant to the terms of the attached Warrant, and tenders herewith payment of the exercise price in full,
together with all applicable transfer taxes, if any. If said number of Warrant Shares is not all the Warrant Shares purchasable under the attached Warrant, a new Warrant is to be issued in the name of the undersigned for the balance remaining of the
shares purchasable thereunder. 

  

	2.	Payment shall take the form of (check applicable box): 

  

	 	 ̈	cashier’s check; or 

  

	 	 ̈	wire transfer. 

  

							
		 		 	
	 Date:
                                         
                       
	 		 		 	Holder
				
		 		 		 	REGENT PACIFIC MANAGEMENT
		 		 		 	CORPORATION, a California corporation

							
				
		 		 		 	 
		 		 	By:	 	
		 		 	Its:Amended and Restated License Agreement

 Exhibit 10.5 
 *** Confidential treatment has been requested with respect to certain portions of this exhibit. Omitted portions have been filed separate with the Securities and Exchange Commission. 

AMENDED AND RESTATED LICENSE AGREEMENT 
 July 18, 2011 
  
  

This Amended and Restated License Agreement (the “Agreement”) by and between Orange 21 Inc. (“Licensee”) and Rose Colored Glasses LLC
(“Licensor”) is effective as of the Effective Date and completely amends and restates that certain License Agreement between Licensee and Licensor dated May 12, 2010 (“Original Agreement”). 

 

	1.	Term – The term of this Agreement shall automatically terminate on March 31, 2012 (the “Term”). Upon expiration of the Term, neither
party shall have any further obligations to the other party under this Agreement, provided that any provision of this Agreement that must survive such termination in order to give full effect to the intended application of such provision shall
continue for such period of time as may reasonably be required. 

  

	2.	Territory – United States, Canada and Mexico and their respective territories and possessions. The Territory hereunder shall also include the
European Union and China (referred to herein as the “Limited Territory”), provided that Licensee must get Licensor’s prior written consent to distribute Licensed Articles in the Limited Territory (except for the Approved Channels
specified on “Exhibit C” which are hereby consented to), which consent shall not be unreasonably withheld, conditioned or delayed. 

  

	3.	Licensed Articles – 

  

	 	•	 	 Glasses which are branded by, use and/or exploit the Licensed Property (as hereinafter defined), it being expressly understood and agreed that [***].

  

	 	•	 	 Except as provided in Section 12 below, all Licensed Articles shall be positioned and sold as competitive with and similar to, in all material
respects (including quality, detail, workmanship [including construction techniques], pricing, type of retail outlets used for distribution, etc.), [***] glasses brands [***], and this shall be deemed to be part of the definition of “Licensed
Article” hereunder. 

  

	4.	Grant of Rights – 

  

	 	•	 	 Subject to the terms and conditions of this Agreement (including without limitation the approval provision herein below) and solely during the Term and
in the Territory, Licensor grants Licensee: 

  

	 	(i)	the right to use Mary J. Blige’s (the “Artist”) name and approved likeness, image and other identifying characteristics (the “Artist
Materials”) solely for approved uses in connection with the marketing and promotion of the Licensed Articles exploited hereunder; and 

  
 [***] - Confidential portions
of this document denoted by [***] have been redacted and filed separately with the Securities and Exchange Commission. 

	 	(ii)	the right to use the trademark “Melodies by MJB”, or such other name and/or mark furnished and approved by Licensor for use hereunder, solely in and in
connection with the manufacture, exploitation and promotion of the Licensed Articles hereunder (such approved trademark referred to as the “Licensed Property”). 

 

	 	•	 	 The rights granted herein shall extend only to Licensed Articles manufactured and held in inventory by Licensee, or its sublicensees, distributors and
retailers as of the Effective Date, and to Licensed Articles manufactured after the Effective Date as a result of warranty claims and repairs. Licensee represents and warrants that as of the Effective Date, there are approximately [***] (not
including Licensed Articles on order or in possession of its sublicensees, distributors and retailers), which have not yet been sold. 

  

	 	•	 	 To the extent that any distributors or retailers continue to hold inventory of Licensed Articles as of the expiration of the Term, such distributors or
retailers shall have the right to continue to promote and sell such existing inventory on a non-exclusive basis until such inventory is sold. 

  

	 	•	 	 To the extent that Licensee continues to hold inventory of Licensed Articles as of the expiration of the Term, all right, title and interest in respect
of such inventory shall automatically be transferred without charge to Licensor effective as of such date. 

  

	 	•	 	 Any and all rights not expressly granted to Licensee hereunder are reserved by Licensor without limitation or further obligation (financial or
otherwise) to Licensee. 

  

	5.	Ownership of Property – As between Licensor and Licensee, Licensor shall own all right, title and interest of any kind or nature in and to the
following: 

  

	 	•	 	 All Artist Materials and Licensed Property. 

  

	 	•	 	 All creative aspects of the Licensed Articles and materials related thereto that are furnished and/or created by or on behalf of Licensee hereunder
(the “LA Materials”), including without limitation, the logos, eyewear designs and/or promotional and marketing materials created hereunder. Licensor confirms that all logos currently used by Licensee have been approved by Licensor for use
in connection with the Licensed Articles hereunder, which logos are referred to as an “Approved Logo”. 

  

	 	•	 	 All other materials created and/or controlled by or on behalf of Licensee that are used to manufacture and/or produce the Licensed Articles hereunder;
provided, however, [***]. Licensee will use commercially reasonable efforts to introduce Licensor to its manufacturer. 

  
 [***] - Confidential portions
of this document denoted by [***] have been redacted and filed separately with the Securities and Exchange Commission. 
 - 2 -

	 	•	 	 All such materials, including, without limitation, those set forth on “Exhibit A” hereto, shall be delivered to Licensor promptly
following the last date of the Term of this Agreement. 

  

	6.	Clearance / Registration of Property 

 During the period ending on the earlier of (i) the date that Licensee sells all of its inventory of Licensed Articles, or (ii) the end of the Term (the “Sell-Off Period”): 

 

	 	•	 	 Intellectual property counsel designated by Licensor (“Designated IP Counsel”), but engaged by Licensor and Licensee, shall be exclusively
responsible for undertaking and obtaining any trademark and other required clearances and registrations for the Artist Materials and Licensed Property furnished by Licensor for use by Licensee hereunder, as well as any Approved Logo hereunder, in
connection with the manufacture, distribution, exploitation and/or promotion of the Licensed Articles in the Territory hereunder (the “Initial IP Clearances”). Licensee shall advise Licensor in writing in the event any additional trademark
or other clearances and/or registrations (i.e., other than the Initial IP Clearances) are required, if applicable, in connection with the manufacture, distribution, exploitation and/or promotion of the Licensed Articles in the Territory hereunder
(collectively, the “Additional IP Clearances”), and Designated IP Counsel shall be exclusively responsible for undertaking and obtaining any such Additional IP Clearances promptly following receipt of notice requesting the same.

  

	 	•	 	 Licensee shall be responsible for the costs and expenses associated with all trademark and other clearances and registrations described in the
paragraph above (the “IP Clearance Costs”), including (for the avoidance of doubt) any IP Clearance Costs incurred prior to the Effective Date of this Agreement. Accordingly, Licensee shall either (i) pay for such IP Clearance Costs
directly or (ii) in the event Licensor and/or Artist pays for any IP Clearance Costs, reimburse Licensor and/or Artist (as applicable) for such IP Clearance Costs within thirty (30) days following receipt of documentation evidencing the
same. 

  

	 	•	 	 Notwithstanding the foregoing, at all times during and after the Term, all trademark and other required clearances and registrations undertaken
pursuant to this Agreement shall be solely owned by, and cleared and/or registered in the name of, Licensor, Artist and/or their respective designee(s), as applicable. 

 

	7.	Payments – 

  

	 	•	 	 Licensee shall pay Licensor the amount of $1,500,000, payable as follows: 

 

	 	(i)	Licensee shall pay to Licensor the nonreturnable amount of $1,000,000 in cash immediately following execution of this Agreement by wire transfer to an account
designated in writing by Licensor (the “Initial Payment”). 

  
 [***] - Confidential portions
of this document denoted by [***] have been redacted and filed separately with the Securities and Exchange Commission. 
 - 3 -

	 	(ii)	Upon execution of this Agreement Licensee shall cause Orange 21 North America, Inc.(“Orange”) to deliver to Licensor a promissory note in the form attached
hereto as “Exhibit B” in the principal amount of $500,000, due and payable on March 31, 2012 (the “Note”). 

  

	 	•	 	 Notwithstanding any provision to contrary contained herein, this Agreement shall not be effective until Licensee has delivered the Initial Payment and
the Note to Licensor. The date that such condition is fulfilled is referred to herein as the “Effective Date.” 

  

	8.	Release – 

  

	 	•	 	 Licensor, on behalf of itself and Artist, acknowledges that the amounts set forth in Section 7 are in full and complete satisfaction of any and
all amounts due or to become due and payable to Licensor under the Original Agreement and for all rights and licenses granted to Licensee in connection with this Agreement. 

 

	 	•	 	 Except for the obligations set forth in this Agreement, each of the parties (including Artist) is fully released from any and all obligations that
either of them had or might have had by virtue of having entered into the Original Agreement, and neither of them shall be obligated in any way further to the other by virtue of having entered into the Original Agreement. The parties acknowledge
that, other than the Original Agreement, no other agreement, written or oral existed between the parties prior to entering into this Agreement. No provision of the Original Agreement shall survive beyond the Effective Date.

  

	 	•	 	 Any and all claims either of the parties had or might have had against the other by virtue of having entered into the Original Agreement shall be, and
hereby are, released, relinquished and satisfied in full. As of the Effective Date, each party hereto fully and unconditionally waives, releases and forever discharges the other party and its respective successors, assigns, affiliates, officers,
directors, shareholders, employees, members, partners, representatives and agents (including Artist) from all of their respective duties, obligations and liabilities arising from or connected in any way with the Original Agreement, and the
parties’ acts or omissions with respect thereto. 

  

	 	•	 	 Each party expressly understands and acknowledges that the foregoing release is intended to be a mutual general release and that it is possible that
unknown losses or claims exist and each party represents and warrants that this uncertainty was taken into account in the execution of this Agreement. 

  

	9.	Licensee’s Other Obligations – 

  

	 	•	 	 Subject to the terms and conditions of this Agreement, Licensee shall be solely responsible for the design, manufacture, distribution, exploitation,
promotion and sale of the Licensed Articles hereunder, which shall be completed (whether directly or through a third party) in each instance in accordance with all applicable federal, state, provincial, local and municipal laws, orders and
regulations (including without limitation, with respect to human rights and labor standards). 

  
 [***] - Confidential portions
of this document denoted by [***] have been redacted and filed separately with the Securities and Exchange Commission. 
 - 4 -

	 	•	 	 Licensee shall be [***] responsible for [***] costs and expenses associated with the [***] of the Licensed Articles [***].

  

	10.	Intentionally deleted. 

  

	11.	Approvals – Licensee represents, to the best of its knowledge, that all aspects of the Licensed Articles and the packaging thereof (including without
limitation, the glasses designs, logo design and placement, product selection, prototypes, pre-production samples, packaging, labels, tags, colorways, etc.) and all advertising, marketing, promotion and publicity plans and materials (including,
brand website/microsite [if any], proposed uses and placement of ads, etc.) used to date or in existence as of the Effective Date have been approved by Licensor; provided, however, that the parties hereto acknowledge and agree that the foregoing
shall not be in limitation of Licensor’s approval rights as set forth in this Agreement including without limitation pursuant to the next two (2) sentences. Licensee shall not use and/or exploit any materials that have not been approved by
Licensor hereunder, such approval not to be unreasonably withheld. Licensor and Artist shall have complete and final approval over any and all proposed uses of Artist’s name, image, voice, likeness and/or other identifying characteristic. For
sake of clarity, Licensor acknowledges that it has previously approved (i) the Licensed Articles depicted at www.melodiesbymjb.com as of the Effective Date (including the ten sunglass styles depicted therein and also listed on
“Exhibit A”), and (ii) the five Licensed Articles listed on “Exhibit A” representing additional sunglass styles and samples (“Approved Materials”). 

 

	12.	Inventory / Closeouts. The parties acknowledge that (i) there are or may be quantities of the Licensed Articles that Licensee has been or will be
unable to sell in accordance with Section 3 above after the exercise of commercially reasonable efforts to do so which remain in inventory, and (ii) Licensee may sell such inventory at a discount (such discounted Licensed Articles,
“Closeouts”) solely through the approved distribution channels listed on “Exhibit C” attached hereto (“Approved Channels”). Licensee may also sell through channels similar to those listed on “Exhibit C” with
Licensor’s prior written consent (such consent not to be unreasonably withheld, conditioned, or delayed) and such channels once approved in writing by Licensor shall be deemed to be added to the list of Approved Channels. Notwithstanding the
foregoing, Licensee shall not distribute Licensed Articles through the distribution channels listed on “Exhibit D” attached hereto (“Non-Approved Channels”). In the event that Licensee sells Closeouts at a wholesale price of
$[***] per unit or less, Licensee shall not, directly or indirectly, [***]. 

  

	13.	Exclusivity – During the period ending on the earlier of (i) December 31, 2011 or (ii) the date that Licensee sells all of its
inventory of Licensed Articles (the “Exclusivity Period”), Licensor and Artist may enter into an agreement with a third party for the license of Artist Materials and/or the Licensed Property in connection with the design, creation,
manufacturing, distribution, marketing and/or promotion of glasses; provided, however, that such glasses (other than Entertainment Glasses) may not be marketed, promoted, or sold during the Sell-Off Period in the Territory. 

  
 [***] - Confidential portions
of this document denoted by [***] have been redacted and filed separately with the Securities and Exchange Commission. 
 - 5 -

	14.	Insurance – Licensee agrees to carry and maintain throughout the Term and for two years thereafter (the “Insurance Term”), with an
insurance carrier having a rating of A or better according to Best’s Insurance Reports, a broad form Comprehensive General Liability Insurance Policy written on an occurrence basis covering its activities with respect to the Licensed Articles
which includes but is not limited to coverage for contractual liability, premises operations, products liability, personal injury and advertising injury liability and broad form property damage liability, with limits of liability of at least two
million dollars ($2,000,000) per occurrence and five million dollars ($5,000,000) in the annual aggregate. Licensee shall cause such policies throughout the Insurance Term to name Licensor and its officers, directors, members and affiliates
(including Artist, Tinted, Jimmy Iovine and Paul Wachter) as additional insureds. 

  

	15.	Indemnity – 

  

	 	•	 	 Licensor shall indemnify, defend and hold harmless Licensee and its parent, subsidiary, affiliated and related entities and their respective officers,
directors, members, managers and shareholders from and against any and all losses, liabilities, damages, costs and/or expenses (including without limitation, reasonable outside attorney’s fees and expenses) in connection with any third party
claims solely to the extent arising out of or relating to (i) a breach by Licensor of its representations, warranties, covenants or agreements contained in this Agreement or (ii) the use and/or exploitation by Licensee, to the extent
approved by Licensor hereunder, of the Artist Materials furnished by Licensor for use by Licensee hereunder. For the avoidance of doubt, Licensor’s indemnity pursuant to this paragraph shall not apply to any claims related to the Licensed
Property (“LP Claims”). Accordingly, it is expressly understood and agreed that both during and after the Term, Licensee agrees that neither Licensee, nor any person and/or entity deriving rights through Licensee, shall commence, institute
or prosecute any lawsuits, actions or other proceedings against any Licensor Indemnitee(s) (as defined below) related to the use and/or exploitation of the Licensed Property as permitted hereunder. 

 

	 	•	 	 Licensee shall indemnify, defend and hold harmless Licensor and its parent, subsidiary, affiliated and related entities and their respective officers,
directors, members, managers and shareholders [***] (“Licensor Indemnitees”) from and against any and all losses, liabilities, damages, costs and/or expenses (including without limitation, reasonable attorney’s fees and expenses) in
connection with any third party claims arising out of or related to (i) any breach by Licensee of any representation, warranty, obligation or agreement contained in this Agreement and/or (ii) any use and/or exploitation by Licensee of any
of the rights granted herein, including without limitation, the design, development, manufacture, distribution, exploitation, promotion, use and/or sale of the Licensed Articles (except to the extent covered by the indemnity provided by Licensor
hereinabove). 

  
 [***] - Confidential portions
of this document denoted by [***] have been redacted and filed separately with the Securities and Exchange Commission. 
 - 6 -

	16.	Limitation of Liability. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS AGREEMENT AND TO THE EXTENT ALLOWED BY APPLICABLE LAW, IN NO
EVENT SHALL EITHER PARTY (OR ITS OFFICERS, DIRECTORS, SHAREHOLDERS, MANAGERS, MEMBERS, EMPLOYEES, AGENTS OR REPRESENTATIVES) BE LIABLE TO THE OTHER PARTY (OR ITS OFFICERS, DIRECTORS, SHAREHOLDERS, MANAGERS, MEMBERS, EMPLOYEES, AGENTS OR
REPRESENTATIVES) FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, EXEMPLARY OR PUNITIVE DAMAGES, INCLUDING, BUT NOT LIMITED TO, LOSS OF PROFITS. THE FOREGOING LIMITATIONS WILL NOT APPLY TO DAMAGES RESULTING FROM A PARTY’S BREACH OF ITS
CONFIDENTIALITY OBLIGATIONS PURSUANT TO PARAGRAPH 17 BELOW. 

  

	17.	Confidentiality – Licensee shall maintain in confidence any information contained in this Agreement and/or any non-public information learned
about Artist and/or Licensor, whether personal or business related information, except as required by law (including, without limitation, U.S. securities laws or rules of any securities exchange). 

 

	18.	Choice of Law – This Agreement shall be construed and enforced in accordance with the laws of the State of New York without reference to
conflict of law principles. 

  

	19.	Assignment – This Agreement shall inure to the benefit of and shall be binding upon the parties hereto, and their respective successors and
assigns. Notwithstanding the foregoing, Licensee may not assign or sublicense any of its rights or obligations hereunder to any person and/or entity without Licensor’s prior written consent, whether directly or indirectly pursuant to a merger,
consolidation, asset sale, stock sale or otherwise, except that Licensee may assign or sublicense this Agreement to Orange. 

  

	20.	Notices – Any notice, payment or other form of communication will be duly made when personally delivered to the party to be notified, or when
sent by facsimile, overnight courier (e.g., FedEx or UPS), or sent via certified mail (return receipt requested), to the address set forth below or to such other addresses a party may designate by notice pursuant hereto. Notices, payments and other
forms of communication shall be sent to: 

 If to Licensee or Orange: 

Orange 21 Inc. 

2070 Las Palmas Drive 
 Carlsbad, CA 92011 
 Attn: Chief Executive Officer, 

with a copy to: Chief Financial Officer 
 Facsimile: (760) 804-8442 

  
 [***] - Confidential portions
of this document denoted by [***] have been redacted and filed separately with the Securities and Exchange Commission. 
 - 7 -

 If to Licensor: 
 Rose Colored Glasses LLC 
 c/o [***] 

[***] 
 [***]

 Attn: [***] 
 Facsimile: [***] 
 With a copy to each of: 

Rose Colored Glasses LLC 
 c/o [***] 
 [***] 

[***] 
 Attn:
[***] 
 Facsimile: [***] 
 And 
 [***] 

[***] 
 [***]

 Attn: [***] 
 Facsimile: [***] 
 All notices, submissions for approval, demands and other
communications required to be given to a party hereunder in writing shall be deemed to have been duly given if personally delivered, sent by a nationally recognized overnight courier, transmitted by facsimile or e-mail, or mailed by registered or
certified mail (postage prepaid, return receipt requested) to such party at the relevant street address, facsimile number or email address set forth below (or at such other street address, facsimile number or e-mail address as such party may
designate from time to time by written notice in accordance with this provision): 
  

	21.	No Joint Venture – Neither party shall be deemed to be an agent, employee, partner, joint employer or joint venture of the other party.

  

	22.	Affiliated Transactions. Expect as provided herein, Licensee agrees that it shall not sell and/or distribute Licensed Articles hereunder to any
person and/or entity that controls, is controlled by or is under common control with Licensee and/or its principals, officers, directors or employees without obtaining Licensor’s prior written consent in each instance. 

 

	23.	Publicity. Licensee shall consult with Licensor prior to issuing any official press release or other public announcement regarding the signing of
this Agreement or the transactions contemplated thereby, and shall not issue any such press release or make any such public statement without the prior consent of Licensor (which consent shall not be unreasonably withheld or delayed), except as
required by law (including, without limitation, U.S. securities laws or rules of any securities exchange). 

  
 [***] - Confidential portions
of this document denoted by [***] have been redacted and filed separately with the Securities and Exchange Commission. 
 - 8 -

	24.	Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which taken
together shall constitute one and the same instrument. Facsimile or other electronic transmissions or photocopies of any signed original counterpart of this Agreement shall be deemed the same as the delivery of a manually executed counterpart of
this Agreement. 

  

	25.	Entire Agreement. The terms and provisions contained in this Agreement and the exhibits hereto constitute the entire agreement between the parties
on the subject matter hereof and supersede and revoke all previous communications, negotiations, representations, agreements or understandings (including, without limitation, the Original Agreement), either oral or written between the parties hereto
or any predecessors in interest thereof with respect to the subject matter hereof. No agreement or understanding varying or extending this Agreement will be binding upon either party hereto, unless in a writing which specifically refers to this
Agreement, and signed by duly authorized officers or representatives of the respective parties. 

  
 [***] - Confidential portions
of this document denoted by [***] have been redacted and filed separately with the Securities and Exchange Commission. 
 - 9 -

 The parties hereto agree that the provisions of this Agreement shall be legally binding on the parties
hereto. 
  

									
	 AGREED AND ACCEPTED:
  

ORANGE 21, INC.
	 		 	 AGREED AND ACCEPTED:
  

ROSE COLORED GLASSES LLC

					
	By:	 	/s/ Carol A. Montgomery	 		 	By:	 	/s/ Mary J. Blige
	Name:	 	Carol A. Montgomery	 		 		 	Name: Mary J. Blige
	Title:	 	Chief Executive Officer	 		 		 	Title: Member
					
		 		 		 	By:	 	/s/ Tinted Partners LLC
		 		 		 		 	Name: Tinted Partners LLC
		 		 		 		 	Title: Member
			
	 AGREED AND ACCEPTED to the extent the foregoing Agreement applies to the undersigned:

 
 ORANGE 21 NORTH AMERICA, INC.
	 		 	
					
	By:	 	/s/ Carol A. Montgomery	 		 		 	
	Name:	 	Carol A. Montgomery	 		 		 	
	Title:	 	Chief Executive Officer	 		 		 	

  
 [***] - Confidential portions
of this document denoted by [***] have been redacted and filed separately with the Securities and Exchange Commission. 
 - 10 -

 Exhibit A 
 Licensor Owned Property and Approval Materials 
 Domain name and website located at
www.melodiesbymjb.com (which shall be transferred to Licensor in accordance with Section 5) 
 Currently on website at
www.melodiesbymjb.com: 
 1. Showtime 
 2. Red Carpet 
 3. MJ’s 
 4. Incognito 
 5. Uptown 
 6. AKA 
 7. Paparazzi 
 8. Encore 
 9. Backstage 
 10. Broadway 
 Not currently on website: 

11. [***] 
 12. [***] 

13. [***] 
 Samples at Manufacturer:

 14. [***] 
 15. [***] 

Photos of above Licensed Articles are attached. 

The following are rough estimates of the quantities of Licensed Articles by SKU in inventory as provided in Section 4 and are not a representation
of the quantities that will be returned to Licensor at the end of the Term : 
  

							
	Item Number	  	Item Description	  	UPC	  	Quantity
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]

  
 [***] - Confidential portions
of this document denoted by [***] have been redacted and filed separately with the Securities and Exchange Commission. 
 - 11 -

							
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]

  
 [***] - Confidential portions
of this document denoted by [***] have been redacted and filed separately with the Securities and Exchange Commission. 
 - 12 -

							
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  		  	[***]
	[***]	  	[***]	  		  	[***]
	[***]	  	[***]	  		  	[***]
	[***]	  	[***]	  		  	[***]
	[***]	  	[***]	  		  	[***]
	[***]	  	[***]	  		  	[***]
	[***]	  	[***]	  		  	[***]
	[***]	  	[***]	  		  	[***]
	[***]	  	[***]	  		  	[***]
	[***]	  	[***]	  		  	[***]
	[***]	  	[***]	  		  	[***]
	[***]	  	[***]	  		  	[***]
	[***]	  	[***]	  		  	[***]
	[***]	  	[***]	  		  	[***]
	[***]	  	[***]	  		  	[***]
	[***]	  	[***]	  		  	[***]
	[***]	  	[***]	  		  	[***]
	[***]	  	[***]	  		  	[***]
	[***]	  	[***]	  		  	[***]
	[***]	  	[***]	  		  	[***]
	[***]	  	[***]	  		  	[***]
	[***]	  	[***]	  		  	[***]
		  		  		  	[***]

  
 [***] - Confidential portions
of this document denoted by [***] have been redacted and filed separately with the Securities and Exchange Commission. 
 - 13 -

 Exhibit B 
 Promissory Note 

  
 [***] - Confidential portions
of this document denoted by [***] have been redacted and filed separately with the Securities and Exchange Commission. 
 - 14 -

 Exhibit C 
 Approved Distribution Channels 
 Brick and Mortar – Approved 

[***] 
 [***] 

[***] 
 [***] 

[***] 
 [***] 

[***] 
 On-Line Member Only – Approved

 [***] 
 [***] 

[***] 
 Multimedia – Approved

 [***] 
 [***] 

  
 [***] - Confidential portions
of this document denoted by [***] have been redacted and filed separately with the Securities and Exchange Commission. 
 - 15 -

 Exhibit D 
 Non-Approved Distribution Channels 
 Brick and Mortar – Non Approved 

[***] 
 [***] 

[***] 
 [***] 

[***] 
 [***] 

[***] 
 [***] 

On-Line – Non Approved 
 [***]

 [***] 
 [***] 

  
 - 16 -

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