Document:

Eighth Modification to Loan and Security Agreement

 EXHIBIT 10.12 
 

 
 EIGHTH MODIFICATION TO LOAN AND SECURITY AGREEMENT 
 This Eighth Modification to Loan and Security Agreement (this “Modification”) is entered into by and between ORANGE 21, INC.
(“Borrower”) and COMERICA BANK (“Bank”) as of this 27th day of January 2005, at San Jose, California. 
 RECITALS

 This Modification is entered into upon the basis of the following facts and understandings of the parties, which facts and
understandings are acknowledged by the parties to be true and accurate: 
 Bank and Borrower previously entered into a Loan and Security
Agreement (Accounts and Inventory) dated October 5, 2001, which was subsequently modified pursuant to those certain modification agreements dated July 17, 2002, March 21, 2003, August 14, 2003, November 26, 2003, December 16, 2003, August 5, 2004,
and December 2, 2004. The Loan and Security Agreement as so modified, and as such may be otherwise modified, amended, restated, supplemented, revised or replaced from time to time prior to the date hereof shall collectively be referred to herein as
the “Agreement.” 
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as set forth below. 
 AGREEMENT 
 1. Incorporation by Reference. The Recitals and the documents referred to therein are incorporated herein by this reference. Except as otherwise
noted, the terms not defined herein shall have the meaning set forth in the Agreement. 
 2. Modification to the Agreement. Subject to
the satisfaction of the conditions precedent as set forth in Section 3 hereof, the Agreement is hereby modified as set forth below. 
 A. Section 2.3(a) of the Agreement is hereby amended by deleting it in its entirety and replacing it with the following: 
 “(a) Interest Rates 
  

	 	(i)	Advances. Except as set forth in Section 2.3(b), the Advances shall bear interest on the outstanding daily balance thereof at a variable rate equal to the Prime rate.

  

	 	(ii)	Term Loan. Except as set forth in Section 2.3(b), the Term Loan shall bear interest on the outstanding daily balance thereof at a variable rate equal to the Prime rate.

  

	 	(iii)	Facility C Advances. Except as set forth in Section 2.3(b), the Facility C Advances shall bear interest on the outstanding daily balance thereof at a variable rate equal to
five percent (5.00%) above the Prime rate. 

 3. Legal Effect. 
 a. Except as specifically set forth in this Modification, all of the terms and conditions of the Agreement remain in full force and effect. Except as
expressly set forth herein, the execution, delivery, and performance of this Modification shall not operate as a waiver of, or as an amendment of, any right, power, or remedy of Bank under the Agreement, as in effect prior to the date hereof.
Borrower ratifies and reaffirms the continuing effectiveness of all promissory notes, guaranties, security agreements, mortgages, deeds of trust, environmental agreements, and all other instruments, documents and agreements entered into in
connection with the Agreement. 
 b. Borrower represents and warrants that each of the representations and warranties contained in the
Agreement are true and correct as of the date of this Modification, and that no Event of Default has occurred and is continuing. 
 c. The
effectiveness of this Modification and each of the documents, instruments and agreements entered into in connection with this Modification is conditioned upon receipt by Bank of this Modification and any other documents which Bank may require to
carry out the terms. 

 4. Miscellaneous Provisions. 
 a. This is an integrated Modification and supersedes all prior negotiations and agreements regarding the subject matter hereof. All amendments hereto
must be in writing and signed by the parties. 
 b. This Modification may be executed in two or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one instrument. 
 IN WITNESS WHEREOF, the parties have agreed as of the date
first set forth above. 
  

									
	ORANGE 21, INC.	 		 	COMERICA BANK
					
	By:	 	 /s/ Barry Buchholtz
	 		 	 By:
	 	 /s/ R.C. Boyce

	 Title:
	 	 CEO
	 		 	 Title:
	 	 Richmond Boyce
 Vice President – Western DivisionAddendum to Commercial Lease Agreement

 EXHIBIT 10.29 
 ADDENDUM TO COMMERCIAL LEASE AGREEMENT DATED MAY 31, 2005 BY AND BETWEEN THE LEVINE FAMILY TRUST AS LESSOR AND ORANGE 21, INC., A DELAWARE CORPORATION, AS LESSEE FOR THE PROPERTY LOCATED AT 2070 LAS PALMAS DRIVE,
CARLSBAD, CALIFORNIA (LEASED PREMISES). 
 Lessor and Lessee mutually agree to amend the aforementioned lease as follows:  
 ARTICLE II- LEASE TERM: 
 Section 3. Expiration Date:

 The expiration date shall be extended to March 31, 2007 
 ARTICLE III- RENT: 
 Section 1. Base Rent: 
 Base rent for the extension period of April 1, 2006 to March 31, 2007 shall be twenty six thousand eight hundred dollars ($26,800.00) per month 
 ARTICLE IV- SECURITY DEPOSIT: 
 Section 1 shall be replaced with the following: 
 Security Deposit. Lessee shall deposit with Lessor upon execution of this amendment a Security Deposit of $25,000, as security for Lessee’s faithful
performance of its obligations under this Lease. If Lessee fails to pay Rent, or otherwise Defaults under this Lease, Lessor may use apply or retain all or any portion of said Security Deposit for the payment of any amount due Lessor or to reimburse
or compensate Lessor for any liability, expense, loss or damage which Lessor may suffer or incur by reason thereof. If Lessor uses or applies all or any portion of the Security Deposit, Lessee shall within 10 days after written request thereof
deposit monies with Lessor sufficient to restore said Security Deposit to the full amount required by this Lease. If the Base Rent increases during the term of this Lease, Lessee shall, upon written request from Lessor, deposit additional monies
with Lessor so that the total amount of the Security Deposit shall at all times bear the same proportion to the increased Base Rent as the initial Security Deposit bore to the initial Base Rent. Should the Agreed Use be amended to accommodate a
material change in the business of Lessee or to accommodate a sublease or assignee, Lessor shall have the right to increase the Security Deposit to the extent necessary, in Lessor’s reasonable judgment, to account for any increased wear and
tear that the Premises may suffer as a result thereof. If a change in control of Lessee occurs during the Lease and following such change the financial condition of Lessee is, in Lessor’s reasonable judgment, significantly reduced, Lessee shall
deposit such additional monies with Lessor as shall be sufficient to cause the Security Deposit to be at a commercially reasonable level based on such change in financial condition. Lessor shall not be required to keep the Security Deposit separate
from its general accounts. Within 14 days after the expiration or termination of this Lease, if Lessor elects to apply the Security Deposit only to unpaid Rent and otherwise within 30 days after the Premises have been vacated, Lessor shall return
that portion of the Security Deposit not used or applied by Lessor. No part of the Security Deposit shall be considered to be held in trust, to bear interest or to be prepayment for any monies to be paid by Lessee under this Lease. 
 Expiration: 
 If this addendum is not executed by Lessor and
Lessee by Monday, January 30, 2006 at 5:00 pm, it shall become null and void. 
 All other terms and conditions of the existing lease shall remain in full
force and effect. 
 AGREED AND ACCEPTED: 
  

									
	LESSOR:	 		 	LESSEE:
			
	The Levine Family Trust	 		 	Orange 21, Inc. a Delaware Corporation.
					
	 BY:
	 	 /s/ Sidney H. Levine, Trustee
	 		 	 BY:
	 	 /s/ Michael Brower

	 TITLE:
	 	 Sidney H. Levine,
 Trustee
	 		 	 TITLE:
	 	 CFO

	 DATE:
	 	 1/30/06
	 		 	 DATE:
	 	 1/24/06Letter from Comerica Bank to Orange 21 Inc. dated March 27, 2006

 Exhibit 10.30 
 [COMERICA BANK LETTERHEAD] 
 March 27, 2006 
  

	Re:	LOAN EXTENSION 

	    	Borrower Name: Orange 21, Inc 

	    	Customer Number/Obligor Number: 7433804894 

	    	Loan Number/Note Number: 18/26/34/42/59 

 Dear Borrower: 
 Comerica Bank has approved an extension of the above-referenced credit facility to July 5, 2006 from its current maturity of April 5, 2006 as evidenced by that certain
Note/Agreement dated October 5, 2001, as may be or have been modified from time to time. 
 Except as modified and extended hereby, the existing loan
documentation as amended concerning your obligation remains in full force and effect. 
 Very truly yours, 
 /s/    TOMAS SCHMIDT 
 Tomas Schmidt 
 Vice President – Western Market 
 Acknowledged and accepted on     March 30    , 2006 
  

									
					
	By:	 	/s/    MICHAEL BROWER	 		 	 By:
	 	  
		 		 		 		 	
					
	By:	 	  	 		 	 By:Amendment No. 8 to Master Repurchase Agreement

 EXHIBIT 10.1 
 EXECUTION VERSION 
 AMENDMENT NO. 8 
 TO MASTER REPURCHASE AGREEMENT 
 Amendment No. 8 dated as of April 11,
2006 (this “Amendment”), by and between CREDIT SUISSE FIRST BOSTON MORTGAGE CAPITAL LLC (the “Buyer”), ENCORE CREDIT CORP., (“ECC” and a “Seller”), ECC CAPITAL CORPORATION
(“ECC Capital” and a “Seller”), BRAVO CREDIT CORPORATION (“Bravo” and a “Seller”, and together with ECC, ECC Capital and Bravo, the “Sellers”). 
 RECITALS 
 The Buyer, ECC, ECC Capital
and Bravo are parties to that certain Master Repurchase Agreement, dated as of February 18, 2005, as amended by Amendment No. 1, dated as of July 21, 2005, Amendment No. 2, dated as of August 15, 2005, Amendment No. 3,
dated as of August 19, 2005, Amendment No. 4, dated as of September 6, 2005, Amendment No. 5, dated as of September 30, 2005, Amendment No. 6, dated as of November 29, 2005 and Amendment No. 7, dated as of
January 12, 2006 (the “Existing Repurchase Agreement”; as amended by this Amendment, the “Repurchase Agreement”). Capitalized terms used but not otherwise defined herein shall have the meanings given to them in
the Existing Repurchase Agreement. 
 The Buyer, ECC, ECC Capital and Bravo have agreed, subject to the terms and conditions of this
Amendment, that the Existing Repurchase Agreement be amended to reflect certain agreed upon revisions to the terms of the Existing Repurchase Agreement. 
 Accordingly, the Buyer, ECC, ECC Capital and Bravo hereby agree, in consideration of the mutual premises and mutual obligations set forth herein, that the Existing Repurchase Agreement is hereby amended as follows:

 SECTION 1. Temporary Amendments. For purposes of this Amendment, this Section 1 will be effective only for the period
beginning on October 1, 2005 through and including March 31, 2006 (the “Waiver Period”). 
 1.1 Covenants.
Section 14 of the Existing Repurchase Agreement is hereby temporarily amended by deleting subsection (e) in its entirety and replacing it with the following language: 
 “(e) Maintenance of Profitability. Sellers shall not permit (i) for any Test Period, Net Income, on a consolidated basis, for such Test
Period, before income taxes for such Test Period and distributions made during such Test Period, to be a loss greater than $78 million.” 
 SECTION 2. Conditions Precedent. This Amendment shall become effective on October 1, 2005, (the “Amendment Effective Date”), subject to the satisfaction of the following conditions precedent: 
 (a) Delivered Documents. On the Amendment Effective Date, the Buyer shall have received the following documents, each of which shall be
satisfactory to the Buyer in form and substance: 
 (i) this Amendment, executed and delivered by a duly authorized officer of
the Buyer and Seller; and 

 (ii) such other documents as the Buyer or counsel to the Buyer may reasonably request.

 SECTION 3. Representations and Warranties. Each Seller hereby represents and warrants to the Buyer that it is in compliance with
all the terms and provisions set forth in the Existing Repurchase Agreement on its part to be observed or performed, and that no Event of Default has occurred or is continuing, and hereby confirms and reaffirms the representations and warranties
contained in Section 13 of the Existing Repurchase Agreement (except to the extent that such representation or warranty expressly relates to an earlier date). 
 SECTION 4. Limited Effect. Except as expressly amended and modified by this Amendment, the Existing Repurchase Agreement shall continue to be, and shall remain, in full force and effect in accordance with its
terms. Section 1 of this Amendment shall expire upon the expiration of the Waiver Period at which time the terms of the Existing Repurchase Agreement shall revert to that set forth in the Existing Repurchase Agreement. Other than as expressly
set forth herein, the execution of this Amendment by the Buyer shall not operate as a waiver of any of its rights, powers or privileges under the Repurchase Agreement or any other Program Agreement, including without limitation, any rights, powers
or privileges relating to other existing or future breaches of, or Defaults or Events of Default under, the Repurchase Agreement or any other Program Agreement (whether the same or of a similar nature as the breaches identified herein or otherwise)
except as expressly set forth herein. 
 SECTION 5. Counterparts. This Amendment may be executed by each of the parties hereto on any
number of separate counterparts, each of which shall be an original and all of which taken together shall constitute one and the same instrument. 
 SECTION 6. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO THE CHOICE OF LAW PROVISIONS THEREOF. 
 [SIGNATURE PAGE FOLLOWS] 

 IN WITNESS WHEREOF, the parties have caused their names to be signed hereto by their authorized
representatives thereunto duly authorized as of the day and year first above written. 
  

									
	 Buyer:
	 		 	 CREDIT SUISSE FIRST BOSTON
 MORTGAGE CAPITAL LLC,
 as Buyer

					
		 		 		 	 By:
	 	 /s/ Bruce S. Kaiserman

		 		 		 	 Name:
	 	 Bruce S. Kaiserman

		 		 		 	 Title:
	 	 Vice President

			
	 Sellers:
	 		 	ENCORE CREDIT CORP.
					
		 		 		 	 By:
	 	 /s/ Shabi Asghar

		 		 		 	 Name:
	 	 Shabi Asghar

		 		 		 	 Title:
	 	 Executive Vice President

			
		 		 	ECC CAPITAL CORPORATION
					
		 		 		 	 By:
	 	 /s/ Shabi Asghar

		 		 		 	 Name:
	 	 Shabi Asghar

		 		 		 	 Title:
	 	 Co-CEO, President

			
		 		 	BRAVO CREDIT CORPORATION
					
		 		 		 	 By:
	 	 /s/ Shabi Asghar

		 		 		 	 Name:
	 	 Shabi Asghar

		 		 		 	 Title:
	 	 Co-CEO, President

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