Document:

License Agreement

 Exhibit 10.53 

CONFIDENTIAL MATERIALS OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
 EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE
SECURITIES ACT OF 1934.
 ASTERISKS IN BRACKETS (I.E. [**]) DENOTE OMISSIONS. CONFIDENTIAL TREATMENT HAS
 BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 

LICENSE AGREEMENT 

TERM SHEET 

As of May 12, 2010 (the “Effective Date”) 
  

 
 Set forth below are certain material terms of a
license agreement (the “Agreement”) by and between Orange 21 Inc. (“Licensee”) and Rose Colored Glasses LLC (“Licensor”). 
  

	1.	Term – Four (4) Contract Years as follows, subject to paragraphs 1A, 1B, 1C and/or 2 below: 

 

	 	•	 	 First Contract Year: Effective Date through December 31, 2010 

 

	 	•	 	 Second Contract Year: January 1, 2011 through December 31, 2011 

 

	 	•	 	 Third Contract Year: January 1, 2012 through December 31, 2012 

 

	 	•	 	 Fourth Contract Year: January 1, 2013 through December 31, 2013 

 

	1A.	Termination by Licensor – 

  

	 	•	 	 Licensor may terminate the Term of this Agreement on or after any of the following events: 

 

	 	(i)	Licensee is in material breach of its obligations and fails to cure such breach within 30 days of notice thereof; or 

 

	 	(ii)	Licensee files for bankruptcy and/or sells all or substantially all of its assets. 

 

	1B.	Termination by Licensee – 

  

	 	•	 	 In the event that Mary J. Blige (“Artist”) is unable to continue supporting and/or promoting the Licensed Articles solely as and to the
extent set forth in paragraph 10A below as a result of either (A) Artist becoming physically or mentally incapable of engaging in such activities with reasonable accommodation for a period of over [**] consecutive days or (B) Artist’s
death (each a “Termination Event”), Licensee shall have the right to terminate the Term of this Agreement by delivering written notice to Licensor on or after such Termination Event. 

 

	1C.	Sell-Off Period – Solely upon the expiration of the Term or earlier termination of the Term pursuant to paragraph 1B above, Licensee shall have the
right to continue to sell any existing inventory of Licensed Articles on a non-exclusive basis for a period of [**] consecutive days immediately following the date of such expiration or termination of the Term (the “Sell-Off Period”);
provided that such sales are otherwise made in accordance with and subject to the terms and conditions of this Agreement (including without limitation, accounting and paying for Net Profits related to such sales during the Sell-Off Period).

  

	2.	Renewal Option – Licensee shall have the right to extend the Term of this Agreement for [**] additional, consecutive years (the “Extension
Period”), each year of which shall also be referred to as a “Contract Year” hereunder, solely in the event that: 

  

	 	•	 	 Licensee is not in material breach of this Agreement; 

  

 1 

	 	•	 	 Licensee has sold at least [**] units of Licensed Articles at their customary top-line retail or wholesale price (i.e., not including any discounts,
promotions or Closeouts) during the Term; and 

  

	 	•	 	 Licensee agrees to pay a Guarantee against sales during the Extension Period equal to the greater of (i) an amount equal to [**]% of the sum of
the actual Net Profits for both the Third Contract Year and Fourth Contract Year hereunder or (ii) $[**], which Guarantee shall be payable in [**] installments (on the last day of [**]). 

 

 2 

	3.	Territory – United States, Canada and Mexico and their respective territories and possessions. Solely during the First and Second Contract Years of
the Term, 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 which consent shall not be unreasonably withheld or delayed. 

  

	4.	Licensed Articles – 

  

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

  

	 	•	 	 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.

  

	5.	Grant of Rights –  

  

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

  

	 	(i)	the right to use Artist’s 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 

  

	 	(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, in and in connection
with the manufacture, exploitation and promotion of the Licensed Articles hereunder (such approved trademark referred to as the “Licensed Property”). 

 

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

  

	6.	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. Any logo approved by Licensor for use in connection with the Licensed Articles hereunder shall
hereinafter be 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,
including without limitation, all tooling, molds, inventory (but only after the later of the last date of the Term or the Sell-Off Period, as applicable) and related materials. All such materials shall be delivered to Licensor promptly following the
last date of the Term of this Agreement (or the Sell-Off Period, if applicable). 

  

	7.	Clearance / Registration of Property 

  

	 	•	 	 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.

  

 3 

	 	•	 	 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. For the avoidance of doubt, all IP Clearance Costs shall be deducted in calculating Net Profits pursuant to paragraph 9 below. 

  

	 	•	 	 For the avoidance of doubt, 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. 

  

	8.	Guarantees – Licensee shall pay Licensor Guarantees as follows: (i) a $[**] aggregate Guarantee in respect of the First and Second Contract
Years, which Guarantee shall be payable in [**] installments (on the last day of [**]), the first payment of which shall be due no later than [**] and the last payment of which shall be due no later than[**] and (ii) an aggregate Guarantee in
respect of the Third and Fourth Contract Years equal to the greater of (A) an amount equal to [**]% of [**] for the Second Contract Year or (B) $[**], payable in [**] installments (on the last day of [**]). (See Renewal Option section
above regarding the Guarantee payable for the Extension Period of the Term, if applicable.) 

  

	9.	Net Profits – 

  

	 	•	 	 Licensee shall pay Licensor [**]% of Net Profits for all sales of Licensed Articles or the applicable Guarantee, whichever is greater.

  

	 	•	 	 “Net Profits” shall be defined as gross revenues invoiced or charged from all sources from the exploitation of Licensed Articles by or on
behalf of Licensee less (i) the actual third party, out of pocket cost of goods to manufacture and ship such Licensed Articles (provided that the average cost of goods deducted to calculate Net Profits for all Licensed Articles invoiced or
charged during a particular accounting period hereunder shall in no event exceed [**]% of the average wholesale list price for all Licensed Articles invoiced or charged during the same period without Licensor’s prior written consent),
(ii) any sales commissions charged by unaffiliated third parties solely related to sales of Licensed Articles hereunder to the extent paid and incurred by Licensee, which in no event shall exceed [**]% of the wholesale list price of the
applicable Licensed Article sold, (iii) all mutually approved costs and expenses incurred by or on behalf of Licensor and/or Artist in connection with this Agreement to the extent not included in clause (v) hereinafter (which costs and
expenses shall be reimbursed by Licensee to Licensor and/or Artist, as applicable, promptly following Licensee’s receipt of documentation thereof or, subject to Licensor’s approval in its sole discretion, may offset costs and expenses
otherwise deductible from Net Profits by Licensee hereunder), (iv) any IP Clearance Costs actually paid by Licensee (whether paid directly or reimbursed to Licensor and/or Artist hereunder) and (v) all Approved Marketing Costs which are
actually incurred and paid for by Licensee and which are not captured in clauses (i) – (iii) hereinabove. For the avoidance of doubt, it is expressly agreed that (i) Licensee shall not deduct any so-called “overhead
costs” or other costs from the calculation of Net Profits (including without limitation, salaries, travel costs to the extent not expressly permitted to be deducted above, design fees, sampling costs to create prototypes, etc.) and
(ii) Licensee may account for Net Profits on an accrual accounting basis hereunder, provided that any expenses or other charges deducted to calculate Net Profits hereunder are actually paid by Licensee within a reasonable period of time after
accounting for the same. 

  

 4 

	 	•	 	 Licensee shall account to Licensor on a quarterly basis and shall pay any Net Profits due and payable to Licensor to the extent actual Net Profits for
the relevant quarter exceed the Guarantee payment due for that quarter. Licensee will not be required to continue to make Guarantee payments for a particular Contract Year once the amount of the Guarantee payments already made for such Contract Year
plus the applicable Net Profits “overage” paid in such Contract Year equals the annual Guarantee amount payable during such Contract Year. 

  

	 	•	 	 Licensor shall have the right, at its sole cost and expense, to audit Licensee’s books, records, agreements and other documents relating to this
Agreement and/or the exercise of any rights or performance of any obligations hereunder. If the auditor concludes that additional amounts were owed during the audited period, Licensee shall pay such additional amounts within [**] days after the date
Licensor delivers to Licensee such auditor’s written report regarding the same. The costs for such audit shall be paid by Licensor; provided, however, if the audit discloses that the payments payable by Licensee for such period are more than
[**] percent ([**]%) of the payments actually paid for such period, then Licensee shall pay the reasonable fees and expenses charged by auditor in connection with such audit. 

 

	10.	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). 

  

	 	•	 	 Licensee shall design, manufacture and distribute an initial collection of Licensed Articles with no less than [**] styles and a total of [**] SKUs (a
“Collection”) for launch no later than [**]. 

  

	 	•	 	 Licensee shall design, manufacture and distribute no less than [**] Collections during each Contract Year of the Term (including the Extension Period,
if applicable), it being understood that only [**] shall be launched during the First Contract Year. 

  

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

 

	10A.	Licensor’s Other Obligations 

  

	 	•	 	 Licensor shall cause Artist to continue to promote the Licensed Articles in the same manner as Artist has been doing to date (i.e., wearing and
endorsing the Licensed Articles from time to time), it being expressly understood that (i) neither Licensor nor Artist shall be required to incur any costs or expenses in connection with Artist’s promotion of Licensed Articles hereunder;
and (ii) Licensee shall pay, or reimburse Licensor and/or Artist, for the reasonable costs and expenses (if any) incurred for Artist to promote the Licensed Articles hereunder if the promotion of the Licensed Articles is a primary purpose of
the applicable Artist activity (each an “LA Promotion”) and not merely incidental to an activity of Artist unrelated to the promotion of the Licensed Articles (each an “Other Artist Activity”). Notwithstanding the foregoing, in
the event that one or more LA Promotions occurs in conjunction with one or more Other Artist Activities so that there are joint costs and expenses for such activities (“Joint Expenses”), Licensee shall only be required to pay and/or make
reimbursements for (A) those costs and expenses solely and directly related to the LA Promotions and (B) its proportionate share of the Joint Expenses except to the extent paid for (without direct or indirect charges of any kind or nature
to Licensor and/or Artist) by a third party in connection with the applicable Other Artist Activities. For the avoidance of doubt, all costs and expenses paid and/or reimbursed by Licensee pursuant to clause (ii) of this paragraph shall be
deemed to be included in clause (iii) of the definition of Net Profits in Section 9 above. 

  

 5 

	11.	Approvals – 

  

	 	•	 	 Licensor shall approve (i) 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 (ii) all advertising, marketing, promotion and publicity plans (which will be prepared at least annually) and materials
(including, brand website/microsite [if any], proposed uses and placement of ads, etc.). Licensee shall not use and/or exploit any materials that have not been approved by Licensor hereunder, such approval not to be unreasonably withheld. All
marketing costs approved by Licensor pursuant to this paragraph shall be referred to herein as the “Approved Marketing Costs”. 

  

	 	•	 	 Licensor shall have reasonable approval over the business plans for the exploitation of the Licensed Articles, including without limitation, the
proposed distribution channels to sell the Licensed Articles, marketing expenditures, etc. 

  

	 	•	 	 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. 

  

	12.	Inventory / Closeouts. Without limiting the foregoing, the parties acknowledge that during any given Contract Year, there may be quantities of the
Licensed Articles that Licensee is unable to sell after the exercise of such commercially reasonable efforts to do so which remain in inventory past the shipping window for which such Licensed Articles were initially manufactured, and Licensee may
desire to sell such inventory at a discount equal to or greater than [**] percent ([**]%) of the customary top-line price (whether wholesale or retail) of such Licensed Article (such discounted Licensed Articles, “Closeouts”).
Notwithstanding anything to the contrary contained herein, in no event shall the number of units of Closeouts sold or otherwise distributed during any Contract Year exceed [**] percent ([**]%) of the aggregate number of units of Licensed Articles
sold during such Contract Year. 

  

	13.	Minimum Marketing Expenditure by Licensee – Without limitation of the approval rights above regarding all advertising, publicity and marketing plans
related to the Licensed Articles, the following shall apply and shall be incorporated as part of any such proposed marketing plan submitted to Licensor for approval unless otherwise agreed by Licensor in writing: 

 

	 	•	 	 First and Second Contract Years: [**]% of projected wholesale sales during the aggregate of the First and Second Contract Years.

  

	 	•	 	 Each Contract Year after the Second Contract Year (including, for the avoidance of doubt, during the Extension Period if applicable): [**]% of actual
wholesale sales during the prior Contract Year. 

  

	 	•	 	 $[**]/month for at least [**] consecutive months, commencing during the First Contract Year, for an independent fashion publicist approved by Licensor
(the “Publicist Period”), which amounts shall be deemed Approved Marketing Costs hereunder. The commencement date of the Publicist Period shall be mutually approved by Licensor and Licensee hereunder. 

 

	14.	Product Allowance – Reasonable mutually-determined product allowance for each Contract Year for Licensor to use as gifts to promote the Collections.

  

	15.	Exclusivity – During the Term and in the Territory, Licensor and Artist shall not license Artist Materials and/or the Licensed Property in connection
with the design, creation, manufacturing, distribution, marketing and/or promotion of glasses (except for Entertainment Glasses, which are expressly excluded from this exclusivity provision). Licensor and Artist expressly reserve all other rights.
For the avoidance of doubt, (i) this exclusivity provision shall solely apply in the Limited Territory during the First and Second Contract Years during the Term (it being expressly understood that Licensee may not distribute Licensed Articles
in the Limited Territory during the First and Second Contract Years without Licensor’s prior written consent, which consent shall not be unreasonably withheld or delayed) and (ii) this exclusivity provision shall no longer apply in the
Limited Territory at any time following the First and Second Contract Years, it being understood and agreed that Licensor shall obtain Licensee’s prior written consent to distribute glasses incorporating and/or otherwise using the Artist
Materials and/or Licensed Property in the Limited Territory solely during the Third and Fourth Contract Years (which consent shall not be unreasonably withheld or delayed). 

 

 6 

	16.	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. Licensee shall, within ten (10) days following the execution and delivery of this Agreement, deliver to Licensor a certificate of such insurance from the
insurance carrier which sets forth the scope of coverage, the limits of liability stated above and the additional insureds and further provides that the policy may not be materially changed or canceled upon less than ten (10) days prior notice
to Licensor. 

  

	17.	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 (A) Licensee shall pay for all reasonable costs and expenses (including without limitation, reasonable attorney’s fees and expenses) incurred in
connection with defending any such third party LP Claims, which costs and expenses shall be deducted calculating Net Profits hereunder and (B) 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). 

  

 7 

	18.	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 19 BELOW. 

  

	19.	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. 

  

	20.	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. 

  

	21.	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 this Agreement to Orange (as defined in paragraph 25 below). 

  

	22.	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:                    	  	 Orange 21 Inc.
 2070 Las Palmas
Drive
 Carlsbad, CA 92011
 Attn: A.
Stone Douglass
 Facsimile: (760) 804-8442

 

 8 

			
		
	If to Licensor:                    	    	 Rose Colored Glasses LLC
 c/o
Main Street Advisors
 3110 Main Street, Suite 300

Santa Monica, CA 90405
 Attn: Paul
Wachter
 Facsimile: (310) 392-3541

		
	With a copy to each of:	    	 Rose Colored Glasses LLC
 c/o
Gelfand Rennert & Feldman
 360 Hamilton Ave., Suite 100

White Plains, NY 10601
 Attn: Ron Nash

Facsimile: (212) 307-8082
  

And
  

Grubman Indursky & Shire, P.C.
 152 West
57th St., 31st Floor
 New York, NY 10019

Attn: Kenneth R. Meislelas, Esq.
 Facsimile:
(212) 554-0444

		
	 If to Orange (as defined in and
pursuant to paragraph 25 below):
	    	 Same as for Licensee above.

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):

  

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

  

	24.	Affiliated Transactions. Notwithstanding anything to the contrary contained 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.

  

	25.	Guarantee of Orange 21 North America Inc.  

  

	 	•	 	 Licensee’s subsidiary, Orange 21 North America Inc. (“Orange”), hereby irrevocably and unconditionally guarantees to Licensor and agrees
to be liable for the full and prompt payment, performance and observance when due of all amounts, covenants, conditions, agreements, liabilities and obligations to be performed, paid or observed by Licensee (which, for purposes of this Paragraph 25
shall include any permitted successor or assign thereof) pursuant to this Agreement (collectively, the “Guaranteed Obligations”). Orange agrees that if Licensee defaults in the payment or performance of any of the Guaranteed Obligations
and such default is not cured by Licensee within any applicable grace period under this Agreement, Orange shall pay and perform such Guaranteed Obligations to Licensor within [**] days after receipt of written notice from Licensor of such default.
Licensor shall not be required to pursue or exhaust any remedies it may have against Licensee or any other party before or after enforcing its rights and remedies against Orange under this guarantee in accordance with the terms of this paragraph 25.
This guarantee is a guarantee of payment and performance and not of collection, and is a primary obligation of Orange and not merely a contract of surety. 

 

 9 

	 	•	 	 The liability of Orange with respect to the Guaranteed Obligations shall be primary, direct, independent and unconditional, and shall not be affected
by any event, condition or circumstances. The obligations of Orange under this guarantee are absolute and unconditional and shall not be impaired by any modification, supplement, extension, waiver, partial performance or amendment of any provision
of this Agreement, nor by any modification, release, partial performance or other alteration of the Guaranteed Obligations, and the liability of Orange shall apply to the Guaranteed Obligations as so altered, modified, supplemented, extended or
amended. 

  

	 	•	 	 The obligations of Orange under this guarantee shall continue until the full and final payment and performance of all of the Guaranteed Obligations by
Licensee. No invalidity, irregularity or unenforceability of all or any part of the Guaranteed Obligations or any security therefor, including, without limitation, as a result of the bankruptcy, reorganization or insolvency of Licensee, or pursuant
to any assignment for the benefit of creditors, receivership or similar proceeding shall affect, impair or be a defense to the obligations of Orange under this guarantee, which are primary obligations of Orange, and nothing shall discharge or
satisfy the liability of Orange hereunder except the full payment and performance of the Guaranteed Obligations. No delay or omission by Licensee in exercising any right or remedy hereunder shall operate as a waiver thereof. Orange hereby expressly
waives and releases the right to interpose any defense, offset or counterclaim of any nature or description in any action or proceeding (other than with respect to any defense or offset permitted by this Agreement, and waives all rights and remedies
accorded by law to guarantors or sureties, including, without limitation, the waiver of any requirement that Licensor pursue or exhaust any remedies Licensor may have against Licensee or any other party before or after enforcing Licensor’s
rights and remedies against Orange under this guarantee. This guarantee shall inure to the benefit of Licensor and its successors and assigns and shall be binding upon Orange and its successors and assigns; provided, that the obligations of Orange
under this guarantee shall not be assigned by Orange other than to a successor to substantially all of Orange’s stock or assets. The rights, powers, privileges and remedies given to Licensor under this guarantee are cumulative and shall be in
addition to and independent of any other rights, powers, privileges and remedies of Licensor at law or otherwise. 

  

	26.	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).

  

	27.	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. 

  

 10 

 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:	 	 	 		 	By:	 	 
	Name:	 	 	 		 		 	Name: Mary J. Blige
	Title:	 	 	 		 		 	Title: Member
					
		 		 		 	By:	 	 
		 		 		 		 	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:	 	 	 		 		 	
	Name:	 	 	 		 		 	
	Title:	 	 	 		 		 	
		 		 		 		 	

  

 11Strategic Alliance Agreement

 EXHIBIT 10.1 

STRATEGIC ALLIANCE AGREEMENT 

This Strategic Alliance Agreement (this “Agreement”) is entered into as of May 24, 2010 (hereinafter, the “Effective Date”) by
and among (i) AMPER, S.A. (“Amper”), and (ii) ELANDIA INTERNATIONAL, INC. (hereinafter, “Elandia”) and; ELANDIA/DESCA HOLDINGS LLC (hereinafter, “Desca Holdings”) (Elandia and Desca Holdings, collectively, the
“Elandia Parties”). 
 RECITALS: 

I. Amper and Elandia Parties desire to enter into a regional alliance that will leverage both groups of companies’ strengths and aim at expanding
into new markets and providing customers with a better support service in Latin America. By means of their respective Subsidiaries, this Agreement will allow the Parties to compete with an integrated product offering and award-winning technology,
services and solutions. The alliance will allow both groups of companies to compete across Latin America as one of the largest regional providers of integration, education and managed services, as well as providing information and telecommunications
products. 
 II. The regional alliance will allow Amper to extend its reach to 13 additional local markets in the Caribbean and Latin American
region, providing them with capabilities and operations in all countries in which Elandia, by means of Desca Holdings’ Subsidiaries, currently operates, and will allow Elandia to give seamless support to regional customers in Brazil, the
largest of the Latin American markets. Elandia and Amper will align their technology integration and managed services solutions to better serve customers across the Latin American region. They will also develop a joint dedicated sales and marketing
effort aimed at regional and multinational customers in Latin America. The alliance also supports sales efforts of Amper’s full product portfolio in its three business divisions (Defense, Homeland Security and Telecom) across the Latin American
region. For Elandia, the alliance will also give support to the expansion of its education business conducted through CTT in Brazil. 
 III.
Elandia and its Subsidiaries deliver an array of information and communications technology products and services to over 3,000 business customers located in countries throughout the Caribbean and Latin American markets that are experiencing rapid
development. Elandia assists its customers in implementing world-class integrated infrastructure solutions and cutting-edge networking technologies, and building highly qualified local workforces to enable their businesses to transform and integrate
into the global economy. Desca Holdings is wholly owned by Elandia (OTC BB: ELAN.OB) and is headquartered in Miami, Florida. Desca Holdings, through its Subsidiaries, is a leading provider of network infrastructure and systems integration products
and services in Latin America and the Caribbean. Desca Holdings delivers world-class business information and telecommunications solutions to Customers in Argentina, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, México,
Nicaragua, Panama, Peru, Trinidad & Tobago, Venezuela and USA. 
 IV. Amper, a multinational company based in Madrid, Spain, is a
leader in the design and implementation of integrated solutions and information systems for civilian and military communications. With more than 50 years of experience in the information technology and telecommunications sector, it offers its
clients cutting-edge products and services. Amper, through its subsidiary, Medidata Informática, S.A. (“Medidata”), has offered integrated communications solutions to telecommunications operators, corporations, financial clients and
governments in Brazil since 1976. It is a leader in integration of networks and systems, IP networks and unified communications in Brazil. 

 V. The Parties desire to establish a relationship to commercialize each other’s Products and Services,
and those of their respective Subsidiaries, in the Territory. 
 VI. The Parties also desire to contemplate, without any obligation whatsoever
to consummate, a potential equity transaction among Amper and the Elandia Parties (an “Equity Transaction”). 
 NOW THEREFORE, in
consideration of the foregoing and the mutual representations, covenants and agreements contained herein, the Parties agree as follows: 
  

	1.	Definitions. 

 Capitalized terms used in
this Agreement shall have the meanings ascribed to them in this Agreement. 
 A. “Customers” shall mean any entity or government
located in the Territory which the Parties identify as a potential user of the Products and Services. 
 B. “Party” and
“Parties” shall mean Amper and the Elandia Parties. 
 C. “Person” shall mean any individual, corporation, general or
limited partnership, limited liability company, trust, joint venture, estate, association, organization or other entity or governmental entity. 

D. “Products and Services” shall mean the products and services of the Parties and their Subsidiaries in the Territory. 

E. “Representatives” shall mean a Party’s affiliates, directors, officers, employees, agents, investment bankers, attorneys, accountants,
consultants, advisors and other representatives. 
 F. “Subsidiary” shall mean, with respect to any Party, any corporation,
association, general or limited partnership, limited liability company, trust, joint venture, organization or other entity of which more than 50% of the total voting power of shares of capital stock or other interests (including partnership
interests) entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by (i) such Party, (ii) such Party and
one or more Subsidiaries of such Person or (iii) one or more Subsidiaries of such Person. 
 G. “Territory” shall mean all the
countries in Latin America where the Parties and their Subsidiaries operate. 
  

	2.	Appointment as Agent/Distributor. 

 A. The
Parties agree to act reciprocally as each other’s non-exclusive agent and/or distributor, as applicable, for the Products and Services throughout the Territory. 

B. The Parties shall identify the potential Customers in the Territory that could be interested in acquiring the Products and Services. The Parties shall
operate on a case by case basis to determine whether the other Party shall act as agent and/or distributor. 
  

 2 

	3.	Parties’ Obligations. 

 A. The
Parties each agree to use their respective reasonable best efforts to promote the sale of the Products and Services in the Territory in accordance with each other’s reasonable instructions and shall protect the other Party’s interests with
the diligence of a responsible businessman. 
 B. Unless otherwise specifically agreed, the Parties have no authority to make contracts on
behalf of, or in any way to bind the other Party with third parties. When acting as agent, the Parties and their respective Subsidiaries shall only solicit orders from Customers for the other Party, which is free to accept or to reject them.

 C. When negotiating with Customers, the Parties shall offer Products and Services strictly in accordance with the terms and conditions of the
contract of sale which the other Party has communicated to it. 
 D. When acting as distributor in accordance with the Parties’ agreement
described in Section 2 hereof, the Parties and their respective Subsidiaries shall be subject to the terms and conditions to be set forth by the Parties. 

E. The Parties hereby commit to appoint the other Parties’ Subsidiaries as its sub-agents and sub-distributors of the Products and Services in the
Territory. 
  

	4.	Consideration. 

 In consideration of the
sales and promotional efforts to be made by the respective Parties and their Subsidiaries, the selling Party shall be entitled to a commission, when acting as agent, or a product discount, when acting as distributor, upon terms to be negotiated by
the Parties on a case by case basis. 
  

	5.	Equity Transaction: Due Diligence and Exclusivity. 

A. To further enhance the cooperation between the Parties, the Parties have agreed to contemplate, without any obligation to consummate, a potential
Equity Transaction. The Equity Transaction that is being considered is the contribution of all or part of the share capital of Medidata in exchange for a majority participation in the capital of Elandia. To this end, the Parties agree to enter into
a mutual due diligence process. 
 B. At the times and upon the conditions set forth in Section 6.A, Amper shall promptly pay to Elandia
the Exclusivity Advance (as defined in Section 6.A). Upon Elandia’s receipt of the Exclusivity Advance, Elandia shall suspend negotiations with any third party with respect to an Alternative Transaction (as defined in Section 5.G(v)),
and in particular the negotiation with the third party that made to Elandia an offer similar to Amper’s offer. 
 C. The exclusivity right
granted by Elandia to Amper in exchange for the Exclusivity Advance shall last until 5:00 p.m. (Madrid time) on June 26, 2010. 
 D. The
Exclusivity Advance shall be provided to Desca Holdings on the dates stated in Section 6.A. 
 E. In the event, and only in the event, that
Amper and Elandia consummate an Equity Transaction, the Exclusivity Advance may be applied as purchase price for the acquisition of common stock of Elandia by Amper, in Amper’s sole discretion. 

 

 3 

 F. Following the date hereof and until June 26, 2010 each of Amper and the Elandia Parties will give to
the other Party and its Representatives access to any personnel and properties, documents, contracts, books, records and operations of the Parties relating to its business as necessary to conduct a due diligence process with respect to an Equity
Transaction, and each Party will furnish the other Party with copies of documents and with such other information, all through a virtual data room or at any offices of the Party proprietary of the information. 

G. Elandia in consideration of the Advance Payment and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged,
hereby agrees that commencing on the date hereof until, 5:00 p.m. (Madrid time) on June 26, 2010 (the “Exclusivity Period”), Elandia shall not, and shall not authorize or permit any of its Representatives to, directly or indirectly:

 (i) solicit, initiate or take any action to facilitate or encourage any inquiries or the making of any proposal from a Person
or group of Persons other than Amper and its affiliates that may constitute, or could reasonably be expected to lead to, an Alternative Transaction; 

(ii) subject to Section 5 I, enter into or participate in any discussions or negotiations with any Person or group of Persons other
than Amper and its affiliates regarding an Alternative Transaction; 
 (iii) subject to Section 5 I, furnish any non-public
information relating to Elandia or any of its Subsidiaries, assets or businesses, or afford access to the assets, business, properties, books or records of the Elandia or any of its subsidiaries to any Person or group of Persons other than Amper and
its Representatives, in all cases for the purpose of assisting with or facilitating an Alternative Transaction; or 
 (iv) grant
any waiver or release of any standstill or similar agreement with respect to any class of equity securities of Elandia or any of Elandia’s Subsidiaries; or 

(v) subject to Section 5 I, enter into an Alternative Transaction or any agreement, arrangement or understanding, including, without
limitation, any letter of intent, term sheet or other similar document, relating to an Alternative Transaction. 
 Immediately
upon execution of this Agreement, Elandia shall, and shall cause its Representatives to, terminate any and all existing discussions or negotiations with any Person or group of Persons other than Amper and its affiliates regarding an Alternative
Transaction. For the purposes of this Agreement, “Alternative Transaction” shall mean any (i) direct or indirect acquisition of assets of Elandia or any of its subsidiaries (including any voting equity interests of Elandia’s
subsidiaries) equal to 15% or more of the fair market value of Elandia’s consolidated assets or to which 15% or more of Elandia’s net revenues or net income on a consolidated basis are attributable (provided that sales of assets in the
ordinary course, sales of assets classified as “held for sale” on the most recent balance sheet, or the discounting of invoices and contracts for working capital purposes shall be unrestricted by this Agreement, and not count against such
15% threshold, so long as the proceeds of any such transaction exceed the amount of the Exclusivity Advance and interest thereon and are immediately paid to Amper as necessary to satisfy the amounts due under the Exclusivity Advance and interest),
(ii) direct or indirect acquisition of 15% or more of the voting equity interests of Elandia, (iii) tender offer or exchange offer that if consummated would result in any Person beneficially owning 15% or more of the voting equity
interests of Elandia, (iv) merger, consolidation, other business combination or similar transaction involving Elandia or any of its subsidiaries, pursuant to which such Person would own 15% or more of the consolidated assets, net revenues or
net income of Elandia and its subsidiaries, taken as a whole, or (v) liquidation or dissolution (or the adoption of a plan of liquidation or dissolution) of Elandia or the declaration or payment of an extraordinary dividend (whether in cash or
other property) by Elandia; in all cases of clauses (i)-(iv) where such transaction is to be entered into with any Person or group of Persons other than Amper or its affiliates. 

 

 4 

 H. During the Exclusivity Period, Amper will not transfer or permit to be transferred, directly or
indirectly, any ownership in Medidata or enter into any discussions with any Person other than Elandia to do so, except to a wholly owned subsidiary of Amper that becomes bound by the terms hereof. 

I. Amper acknowledges the duties of Elandia’s Board of Directors to consider unsolicited superior Alternative Transactions. As such, notwithstanding
anything to the contrary contained herein, Elandia shall not be deemed to be in breach of this Section 5 with respect to its consideration of an unsolicited offer for an Alternative Transaction in Elandia which it determines in good faith is a
superior offer to any proposal being discussed by the Parties. 
 J. During the Exclusivity Period, Elandia shall promptly notify Amper of the
receipt of any oral or written offer, indication of interest, proposal or inquiry relating to an Alternative Transaction or any transaction of the type described in Section 5.G(v) that does not reach the thresholds for the defined term
“Alternative Transaction,” such notice to include the material terms thereof, including the identity of the Person or group of Persons involved. Elandia shall promptly furnish Amper with a copy of any written offer or other information
that it receives relating to an Alternative Transaction or any transaction of the type described in Section 5.G(v) that does not reach the thresholds for the defined term “Alternative Transaction” and shall keep Amper fully informed
on a current basis of any modifications to such offer or information. 
 K. Until the end of the Exclusivity Period, Elandia shall use
commercially reasonable efforts to preserve intact the business organization and employees and other business relationships of Elandia; shall continue to operate its business and maintain its books, records and accounts in accordance with generally
accepted accounting principles in the jurisdictions where the Parties operate, consistent with past practice; and shall use its commercially reasonable efforts to maintain Elandia’s current financial condition, including working capital levels.

  

	6.	Exclusivity Advance. 

 A. As additional
consideration for the covenants contained in this Agreement, Amper shall advance to Elandia the sum of U.S. $5,000,000 (the “Exclusivity Advance”) as follows: 

(i) US$ 2,700,000 upon the delivery of the guarantees, pledges and other collateral stated in Section 7; provided, however, that if
Amper does not fully fund the initial portion of the Exclusivity Advance within seven (7) days of its receipt of the documentation required under Section 7 and listed on Annex A hereto, all Security Documents (as defined in
Section 7.A), and the security interests represented thereby, shall be immediately terminated and cancelled with no further force or effect and, in this regard, Amper shall immediately take all actions requested by the Elandia Parties in order
to effectuate such termination and cancellation; such termination and cancellation shall be without penalty to the Elandia Parties and Amper shall be solely responsible for the costs, fees and expenses (including attorneys’ fees) associated
therewith, not to exceed U.S. $50,000; and 
  

 5 

 (ii) the remaining US$ 2,300,000, will be released following the payment specified in clause
(i) above and upon Descaserv Ecuador, S.A. (“Descaserv”) providing to Amper full evidence that the net cash position (including all issued checks and other current financial obligations) of its bank accounts is positive; provided that
at the time of the release of the balance of the Exclusivity Advance there has not occurred any of the following: (1) a breach of this Agreement by the Elandia Parties; (2) Amper has been notified hereunder of an Alternative Transaction;
or (3) the Exclusivity Period has elapsed. 
 B. Until the outstanding portion of the Exclusivity Advance and any accrued interest thereon
is fully repaid, the outstanding portion of the Exclusivity Advance shall bear interest at the rate twelve percent (12%) per annum. Such interest shall be payable by the Elandia Parties, jointly and severally, to Amper at the time the
outstanding portion of the Exclusivity Advance is payable. 
 C. To secure the repayment of the Exclusivity Advance, Elandia, Desca Holdings and
Descaserv shall provide the guarantees, pledges and other collateral stated in Section 7 of this Agreement. 
 D. The outstanding portion
of the Exclusivity Advance and any accrued and unpaid interest thereon shall be refundable and payable by the Elandia Parties, jointly and severally, to Amper at the time(s) set forth below: 

(i) on the earlier of (a) November 30, 2010 or (b) the date that payments are received by Descaserv (to the extent of any
such payments) in respect of the Descaserv Contract (as “Descaserv Contract” is defined in Section 7.B of this Agreement); provided, however, that such date shall be extended by up to 30 days if the customer is late making payments
under the Descaserv Contract; 
 (ii) immediately in the event of a material breach of this Agreement or any of the Security
Documents by any of the Elandia Parties or their subsidiaries; 
 (iii) immediately upon the completion of an Alternative
Transaction; and/or 
 (iv) immediately upon the occurrence of any of the events stated in Section 7.C of this Agreement.

 E. Upon any occurrence set forth in clauses (ii) or (iii) of Section 6.D above or Section 7.C(i) or (iv) below, the
Elandia Parties, jointly and severally, shall be liable to pay Amper at the time that repayment of the Exclusivity Advance and interest thereon is due an additional sum equal to (a) 700,000 Euros and (b) the reasonable out of pocket due
diligence costs incurred by Amper in evaluating the Elandia Parties, not to exceed 700,000 Euros; provided that the payments described in (a) and (b) of the preceding clause shall be payable only if the events described in this
Section 6.E. occur prior to June 26, 2010. Upon any occurrence set forth in clauses (ii) or (iii) of Section 7.C below, the Elandia Parties, jointly and severally, shall be liable to pay Amper at the time that repayment of
the Exclusivity Advance and interest thereon is due an additional sum equal to the reasonable out of pocket due diligence costs incurred by Amper in evaluating the Elandia Parties, not to exceed 700,000 Euros; provided that this additional sum shall
be payable only if the events described in this Section 6.E. occur prior to June 26, 2010. 
  

	7.	Guarantees, Pledges and Other Collateral. 

A. Promptly following the execution of this Agreement, the Elandia Parties shall enter into the guarantees and security agreements and interests referred
to in Annex A (as the same may be amended, restated, modified or supplemented from time to time, the “Security Documents”). 
  

 6 

 B. For the purposes of this Agreement (i) “Descaserv Contract” shall mean that certain
agreement signed on November 9, 2009 by Descaserv regarding the supply and installation of hardware and software for the extension of the national backbone of the IP/MPLS and Internet network, and (ii) “Desca Holdings’
Interests” shall mean the limited liability company membership interests of Desca Holdings. 
 C. The outstanding portion of the
Exclusivity Advance and any accrued and unpaid interest thereon shall be refundable and payable by the Elandia Parties, jointly and severally, to Amper immediately upon the occurrence of any of the following events: 

(i) upon the sale, transfer or issuance of any shares of stock of Descaserv held directly or indirectly by Elandia, or the entering into
of any merger or other business combination by, Descaserv or transfer of any interest in any material asset by Descaserv (including, but not limited to, the Descaserv Contract, defined above); provided however, that any actions by Descaserv to
obtain advance payments or transactions which discount future payments under the Descaserv Contract or transfer payments thereunder shall not, in and of themselves, be deemed to be a breach hereunder, and shall not cause the Exclusivity Advance to
become immediately due and payable so long as the proceeds of such transaction exceed the amount of the Exclusivity Advance and interest thereon and such payments made as a result of such transactions are immediately paid to Amper as needed to
satisfy the amounts due under the Exclusivity Advance and interest; 
 (ii) upon failure of Descaserv to pay when due any
principal, interest or other amount of material indebtedness, or the occurrence of any material breach, default, condition or event with respect to any material indebtedness (which breach has remained uncured following the expiration of any
applicable grace period); 
 (iii) in the event Elandia or any of its material Subsidiaries (representing 15% or more of the
fair market value of the Elandia’s consolidated assets or to which 15% or more of Elandia’s net revenues or net income on a consolidated basis are attributable) shall commence a voluntary case or other proceeding (or an involuntary case
shall be commenced against Elandia or any such Subsidiaries and not dismissed within 60 days) seeking liquidation, reorganization or other relief with respect to itself or its debts under any bankruptcy, insolvency or other similar law now or
hereafter in effect or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of it or any substantial part of its property, or shall consent to any such relief or to the appointment of or taking possession
by any such official in an involuntary case or other proceeding commenced against it, or shall make a general assignment for the benefit of creditors, or shall fail generally to pay its debts as they become due, or shall take any corporate action to
authorize any of the foregoing; or 
 (iv) immediately, upon a default by Descaserv under the Descaserv Contract. 

 

	8.	Representations and Warranties 

 Each
Party, jointly and severally, represents and warrants to the other Party as follows: 
 A. Organization, Standing and Power. Each of the
Parties is duly organized, validly existing and in good standing under the laws of the jurisdiction in which it is organized and has all requisite power and authority to own, lease or otherwise hold its properties and assets and to conduct its
business as it is currently conducted. Each Party is duly qualified to do business in each jurisdiction in which the nature of its business or its ownership of its properties make such qualification necessary. 

 

 7 

 B. Elandia Subsidiaries. Annex B.1 and B.2 sets forth each of the Amper Brazilian Subsidiaries
and all of Elandia Subsidiaries, respectively, as of the date hereof. Amper owns indirectly 88.96% of the outstanding share capital stock of Medidata, free and clear of all liens or encumbrances. Except as indicated in Annex B.2 Elandia owns,
directly or indirectly, each of the outstanding shares of capital stock of or a 100% ownership interest in, as applicable, each of the Elandia Subsidiaries, free and clear of all liens or encumbrances. Each of the outstanding shares of capital stock
of Medidata owned by Amper are duly authorized, validly issued, fully paid and non assessable. Each of the outstanding shares of capital stock of each of Elandia Subsidiaries having corporate form is duly authorized, validly issued, fully paid and
non assessable. 
 C. Authorization; Validity of Agreement; Necessary Action. The Parties and each of their subsidiaries that are parties
to the Security Documents have all requisite corporate or limited liability power and authority to execute and deliver this Agreement. The execution, delivery and performance by the Parties of this Agreement and each of their Subsidiaries that are
parties to the Security Documents have been duly authorized by all necessary corporate or limited liability action on the part of the Parties and each of their Subsidiaries that are parties to the Security Documents. This Agreement and the Security
Documents have been duly executed and delivered by the Parties and each of their Subsidiaries that are parties to the Security Documents and constitute the valid and binding obligation of the Parties and each of their subsidiaries that are parties
to the Security Documents, enforceable against each Party and each of their Subsidiaries that are parties to the Security Documents in accordance with their respective terms, except to the extent that enforceability may be limited by applicable
bankruptcy, insolvency, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and subject to general principles of equity. 

D. No Brokers. No brokerage or finder’s fees are payable by the Parties in connection with this Agreement. 

E. Disclosure. The Elandia Parties, jointly and severally, represent to Amper that no representation or statement of information contained in this
Agreement (including the attachments hereto) or any agreement executed in connection herewith or in any certificate delivered pursuant hereto or thereto or in Elandia’s filings with the Securities and Exchange Commission or made or
furnished to Amper or its Representatives by the Elandia Parties contains or shall contain any untrue statement of fact or omits or shall omit any material fact necessary to make the information contained herein or therein not materially
misleading. 
  

	9.	Term and Termination. 

 A. This Agreement
shall commence on the date hereof and continue for six (6) months thereafter, and shall be automatically renewed for additional periods of six (6) months, unless terminated by either Party by notice given not less than fifteen
(15) days before the scheduled date of expiry, or earlier terminated in accordance with the terms herein. 
 B. This Agreement will
automatically terminate: 
 (i) upon mutual agreement in writing by the Parties; 

(ii) in the event of a breach of any representation, warranty, covenant or agreement of this Agreement by a Party following written
notice of such breach to the breaching Party to the non-breaching Party; or 
  

 8 

 (iii) if it becomes apparent that any Party has become insolvent or has a receiver appointed
or applied for, has called a meeting of creditors, makes/make a proposal for a voluntary arrangement, has resolved to go into bankruptcy or liquidation (except for bona fide amalgamation or reconstruction while solvent), enters into any form of
general arrangement with its creditors, has a petition for winding up or an administration order lodged against it in relation to any potential insolvency which is not successfully opposed within sixty (60) days of being lodged, or undergoes
any analogous procedure. 
  

	10.	Consequences of expiration or termination. 

A. Upon expiration or termination of this Agreement for any reason whatsoever the Parties and their Subsidiaries shall immediately cease to distribute the
Products and Services, and cease any activity in connection with the selling, promotion and marketing of the Products and Services upon terms and conditions specified by the other Party. 

B. No termination of this Agreement shall relieve any Party from any liabilities arising from a breach hereof. 

C. Sections 5, 6 and 7 including but not limited to all obligations to repay the Exclusivity Advance and any accrued interest thereon, and any costs and
liquidated damages shall survive any termination of this Agreement. 
 D. The Parties shall not be entitled to an indemnity for goodwill or
similar compensation in the event of a termination of the Agreement. 
  

	11.	Miscellaneous. 

 A. Amper and Elandia
signed two Confidentiality Agreements each of which shall survive the execution of this Agreement. Except as may be required by law, no Party shall issue any press release or make any other public announcement relating to the subject matter of this
Agreement without the prior written consent of the other Party. 
 B. Nothing contained herein shall be deemed to be a binding commitment of the
Parties to enter into an Equity Transaction and any such binding commitment shall only be evidenced by the Parties’ entering into a definitive agreement setting forth the terms of any such Equity Transaction. 

C. This Agreement shall not imply any employment, joint venture, partnership or franchise relationship among the Parties. 

D. In carrying out their obligations under this Agreement the Parties will act in accordance with good faith and fair dealing. The provisions of this
Agreement, as well as any statements made by the Parties in connection with this Agreement shall be interpreted in good faith. 
 E. Except as
otherwise provided in Sections 6.A(i) and 6.E of this Agreement, each party shall bear all costs and expenses incurred by such party in connection with the negotiation and execution of this Agreement. 

F. All disputes arising out of or in connection with this Agreement, or the validity, enforceability or scope of this arbitration provision, shall be
finally settled under the Rules of Arbitration of the International Chamber of Commerce. Within 10 days after the commencement of arbitration, Amper on the one hand, and the Elandia Parties on the other hand, shall select one person to act as
arbitrator and the two selected shall select a third arbitrator within 5 days of their appointment. If the arbitrators selected by the Parties are unable or fail to agree upon the third arbitrator, the third arbitrator shall be selected by the
International Chamber of Commerce (“ICC”). 
  

 9 

 This Agreement shall be governed by the laws of the State of New York. The Parties agree that the United
States Federal Arbitration Act shall govern the interpretation, enforcement, and proceedings pursuant to the arbitration clause in this agreement. The place of the arbitration shall be in New York, New York. The language of the arbitration shall be
English. The arbitrators shall award to the prevailing party, if any, as determined by the arbitrators, all of its costs and fees. “Costs and fees” mean all reasonable pre-award expenses of the arbitration, including the
arbitrators’ fees, administrative expenses, travel expenses, out of pocket expenses such as copying and telephone, court costs, witness fees, and attorney’s fees. 

The taking of evidence in the arbitration shall be governed by the International Bar Association Rules on the Taking of Evidence in International
Commercial Arbitration (the “IBA Rules”). 
 G. This Agreement (including the schedules and exhibits hereto) represents the entire
understanding and agreement between the Parties with respect to the subject matter hereof and can be amended, supplemented or changed, and any provision hereof can be waived, only by written instrument making specific reference to this Agreement
signed by the Parties, in the case of an amendment, supplement, modification or waiver sought to be enforced against the other Party. No action taken pursuant to this Agreement, including without limitation, any investigation by or on behalf of any
Party, shall be deemed to constitute a waiver by the Party taking such action of compliance with any representation, warranty, covenant or agreement contained herein. The waiver by any Party of a breach of any provision of this Agreement shall not
operate or be construed as a further or continuing waiver of such breach or as a waiver of any other or subsequent breach. No failure on the part of any Party to exercise, and no delay in exercising, any right, power or remedy hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise of such right, power or remedy by such Party preclude any other or further exercise thereof or the exercise of any other right, power or remedy. All remedies hereunder are
cumulative and are not exclusive of any other remedies provided by law. 
 H. [Reserved]. 

I. The section headings of this Agreement are for reference purposes only and are to be given no effect in the construction or interpretation of this
Agreement. 
 J. All notices and other communications under this Agreement shall be in writing and shall be deemed given when delivered at the
following addresses (or to such other address as a Party may have specified by notice given to the other Party pursuant to this provision): 
  

			
	If to any Elandia Party, to:	    	 Elandia International, Inc.

8200 N.W. 52nd Terrace, Suite 102
 Miami, FL
33166
 Attn: Pete Pizarro, CEO

Telecopier: 786-413-1913
  

Elandia International, Inc.
 8200 N.W. 52nd
Terrace, Suite 102
 Miami, FL 33166

Attn: Diana Abril, Esq.
 Telecopier: 786-413-1913

  

 10 

			
		
	 With a copy (which shall

not constitute notice) to:
	    	 Carlton Fields
 100 SE 2
nd Street, Suite 4200

Miami, FL 33131
 Attn: Seth Joseph,
Esq.
 Telecopier: 305-530-0055

		
	If to Amper, to:	    	 Amper S.A.
 Marconi
3
 28760 Tres Cantos
 Madrid, Spain

 Attn: Manuel Marquez, CEO

Telecopier: +34918061799
  

Amper S.A.
 Marconi 3

28760 Tres Cantos
 Madrid, Spain

Attn: José Martos Martínez, General Counsel

Telecopier: +34918061799

		
	With a copy (which shall not constitute notice) to:	    	 Akerman Senterfitt
 One
Southeast Third Avenue, 25th Floor
 Miami, Florida 33131

Attn: Scott A. Wasserman, Esq.
 Telecopier: (305)
374-5095

 Any such notice or communication shall be deemed to have been delivered (i) when delivered, if
personally delivered, (ii) when sent, if sent by facsimile on a business day during normal business hours (or, if not sent on a business day during normal business hours, on the next business day after the date sent by facsimile), or
(iii) on the next business day after dispatch, if sent by nationally recognized, overnight courier guaranteeing next business day delivery. 

K. If any provision of this Agreement is invalid or unenforceable, the balance of this Agreement shall remain in effect. 

L. This Agreement shall not be assigned by any Party, and no Party’s obligations hereunder, or any of them, shall be delegated, without the written
consent of the other Party. Subject to the preceding sentence, this Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and assigns. Nothing in this Agreement shall create or be deemed to create
any third party beneficiary rights in any Person. 
 M. This Agreement may be executed in one or more counterparts, each of which shall be
deemed an original but all of which together will constitute one and the same instrument. Delivery of an executed counterpart of a signature page to this Agreement by facsimile or PDF shall be effective as delivery of a mutually executed counterpart
to the Agreement. The section headings contained in this Agreement are inserted for convenience only and shall not affect in any way the interpretation of this Agreement. 
  

 11 

 N. Each of the Parties hereto acknowledges that a breach of this Agreement would cause irreparable harm for
which monetary damages would be an inadequate remedy. Accordingly, the Parties hereby agree that the other Party may seek equitable relief in the event of any breach or threatened breach of this Agreement, including injunctive relief against any
breach thereof and specific performance of any provision thereof, in addition to any other remedy to which the other Party may be entitled. 

[Signatures Begin on Following Page] 
  

 12 

 IN WITNESS WHEREOF, this Agreement has been executed by or on behalf of each of the Parties as of the day
first written above. 
  

			
	AMPER, S.A.
		
	By:	 	 /s/ Manuel Marquez

	Name:	 	 Manuel Marquez

	Title:	 	 CEO

	
	AMPER, S.A.
		
	By:	 	 /s/ José Martos

	Name:	 	 José Martos

	Title:	 	 General Counsel

	
	ELANDIA INTERNATIONAL, INC.
		
	By:	 	 /s/ Pete R. Pizarro

	Name:	 	 Pete R. Pizarro

	Title:	 	 CEO

	
	ELANDIA/DESCA HOLDINGS LLC
		
	By:	 	 /s/ Pete R. Pizarro

	Name:	 	 Pete R. Pizarro

	Title:	 	 CEO

 

 13 

 ANNEX A 

Description of Security 

The Exclusivity Advance shall be delivered by Amper once the guarantees, pledges and other collateral stated in Section 7 of this Agreement are
delivered in the form approved prior hereto by the Parties. 
 For this purpose, the main terms and conditions of: 

(i) The Commercial trust previously approved by the Parties. In connection with the Commercial trust, the following documents are being
delivered to Amper: 
 (1) powers of attorney 

(2) written consent of the shareholders regarding powers of attorney 

(3) Pledge Agreement 

(4) Amendment to the current trust agreement 

(ii) The pledge on Descaserv Ecuador, S.A. shares shall be on 80% of the shares issued by Descaserv Ecuador, S.A. 

(iii) The pledge on Desca Holding LLC’s interests shall be as set forth in a Guaranty and Pledge Agreement in a form previously
approved by the Parties. 
  

 14 

 ANNEX B.1. 

AMPER BRAZIL ORGANIZATIONAL CHART 
  

	•	 	 One hundred percent (100%) of the shares of Spanish company “Hemisferio Norte, S.A.” (CIF: A-82-434.929), with address at Marconi
3, Tres Cantos, Madrid (Spain), and subsequently 

  

	•	 	 One hundred percent (100%) of its Brazilian first tier subsidiary “Hemisferio Sul Participaçoes Ltda.” (CNPJ no
04.148.647/0001-16 and NIRE no 33.2.0660212-7), with address at Rua da Assembléia n° 58 -10°, Rio de Janeiro (Brazil); and subsequently 

 

	•	 	 Eighty eight with ninety six percent (88.96%) of its Brazilian second tier subsidiary “Medidata Informática, S.A.” (CNPJ
No 15.109.770/0001-44 and NIRE No 33 3 0001638-4), with address at Rodrigo Brito 12, Rio de Janeiro (Brazil); and 

  

	•	 	 One hundred percent (100%) of its Brazilian third tier subsidiary “XC Comercial e Exportadora Ltda.” (CNPJ no
32.164.725/0001-01 and NIRE no 322.005.676-47), with address at Avenida 100, Mod. 12 e 16 – quadra 01 – sala 42 – Setor Industrial do TIMS (Terminal Intermodal do Município de Serra), Município de Serra, Estado do
Espírito Santo (Brazil). 

 

 

 ANNEX B.2 

ELANDIA ORGANIZATIONAL CHART 

Elandia organizational charts begin on following page. 
  

 16 

 

 

  

	*	Post 5-19-2010 Capitalization & Agreements 

  

 17 

 

 

  

 18 

 

 

  

 19 

 ELANDIA PACIFIC GROUP CORPORATE STRUCTURE

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}]]