Document:

Amended and Restated 2004 Stock Incentive Plan

 Exhibit 10.8 

 
  

 
 ORANGE 21
INC. 
 2004 STOCK INCENTIVE PLAN 

(Originally Adopted by the Board on December 8, 2004 and last 

amended and restated by the Board on September 13, 2011) 

 
  

 

 Table of Contents 

 

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

  

ORANGE 21 INC. 
 2004 STOCK INCENTIVE PLAN 

  
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	 (a)  
	  	 Committee Composition
	  	 	7	  
	 (b)
	  	 Committee for Non-Officer Grants
	  	 	7	  
	 (c)
	  	 Committee Procedures
	  	 	7	  
	 (d)
	  	 Committee Responsibilities
	  	 	7	  
		
	 SECTION 4. ELIGIBILITY
	  	 	9	  
	 (a)
	  	 General Rule
	  	 	9	  
	 (b)
	  	 Automatic Grants to Outside Directors
	  	 	9	  
	 (c)
	  	 Ten-Percent Stockholders
	  	 	10	  
	 (d)
	  	 Attribution Rules
	  	 	10	  
	 (e)
	  	 Outstanding Stock
	  	 	10	  
		
	 SECTION 5. STOCK SUBJECT TO PLAN
	  	 	10	  
	 (a)
	  	 Basic Limitation
	  	 	10	  
	 (b)
	  	 Option/SAR Limitation
	  	 	11	  
	 (c)
	  	 Additional Shares
	  	 	11	  
		
	 SECTION 6. RESTRICTED SHARES
	  	 	11	  
	 (a)
	  	 Restricted Stock Agreement
	  	 	11	  
	 (b)
	  	 Payment for Awards
	  	 	11	  
	 (c)
	  	 Vesting
	  	 	12	  
	 (d)
	  	 Voting and Dividend Rights
	  	 	12	  
	 (e)
	  	 Restrictions on Transfer of Shares
	  	 	12	  
		
	 SECTION 7. TERMS AND CONDITIONS OF OPTIONS
	  	 	12	  
	 (a)
	  	 Stock Option Agreement
	  	 	12	  
	 (b)
	  	 Number of Shares
	  	 	12	  
	 (c)
	  	 Exercise Price
	  	 	12	  
	 (d)
	  	 Withholding Taxes
	  	 	13	  
	 (e)
	  	 Exercisability and Term
	  	 	13	  
	 (f)
	  	 Exercise of Options Upon Termination of Service
	  	 	13	  
	 (g)
	  	 Effect of Change in Control
	  	 	13	  
	 (h)
	  	 Leaves of Absence
	  	 	14	  
	 (i)
	  	 No Rights as a Stockholder
	  	 	14	  
	 (j)
	  	 Modification, Extension and Renewal of Options
	  	 	14	  
	 (k)
	  	 Restrictions on Transfer of Shares
	  	 	14	  
	 (l)
	  	 Buyout Provisions
	  	 	14	  
		
	 SECTION 8. PAYMENT FOR SHARES
	  	 	15	  
	 (a)
	  	 General Rule
	  	 	15	  
	 (b)
	  	 Surrender of Stock
	  	 	15	  
	 (c)
	  	 Services Rendered
	  	 	15	  
	 (d)
	  	 Cashless Exercise
	  	 	15	  
	 (e)
	  	 Exercise/Pledge
	  	 	15	  
	 (f)
	  	 Promissory Note
	  	 	15	  

  

ORANGE 21 INC. 
 2004 STOCK INCENTIVE PLAN 

  
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	 (g)
	  	 Other Forms of Payment
	  	 	16	  
	 (h)
	  	 Limitations under Applicable Law
	  	 	16	  
		
	 SECTION 9. STOCK APPRECIATION RIGHTS
	  	 	16	  
	 (a)
	  	 SAR Agreement
	  	 	16	  
	 (b)
	  	 Number of Shares
	  	 	16	  
	 (c)
	  	 Exercise Price
	  	 	16	  
	 (d)
	  	 Exercisability and Term
	  	 	16	  
	 (e)
	  	 Effect of Change in Control
	  	 	17	  
	 (f)
	  	 Exercise of SARs
	  	 	17	  
	 (g)
	  	 Modification or Assumption of SARs
	  	 	17	  
		
	 SECTION 10. STOCK UNITS
	  	 	17	  
	 (a)
	  	 Stock Unit Agreement
	  	 	17	  
	 (b)
	  	 Payment for Awards
	  	 	17	  
	 (c)
	  	 Vesting Conditions
	  	 	18	  
	 (d)
	  	 Voting and Dividend Rights
	  	 	18	  
	 (e)
	  	 Form and Time of Settlement of Stock Units
	  	 	18	  
	 (f)
	  	 Death of Recipient
	  	 	18	  
	 (g)
	  	 Creditors’ Rights
	  	 	18	  
		
	 SECTION 11. ADJUSTMENT OF SHARES
	  	 	19	  
	 (a)
	  	 Adjustments
	  	 	19	  
	 (b)
	  	 Dissolution or Liquidation
	  	 	19	  
	 (c)
	  	 Reorganizations
	  	 	19	  
	 (d)
	  	 Reservation of Rights
	  	 	20	  
		
	 SECTION 12. DEFERRAL OF AWARDS
	  	 	20	  
		
	 SECTION 13. AWARDS UNDER OTHER PLANS
	  	 	21	  
		
	 SECTION 14. PAYMENT OF DIRECTOR’S FEES IN SECURITIES
	  	 	21	  
	 (a)
	  	 Effective Date
	  	 	21	  
	 (b)
	  	 Elections to Receive NSOs, Restricted Shares or Stock Units
	  	 	21	  
	 (c)
	  	 Number and Terms of NSOs, Restricted Shares or Stock Units
	  	 	21	  
		
	 SECTION 15. LEGAL AND REGULATORY REQUIREMENTS
	  	 	22	  
		
	 SECTION 16. WITHHOLDING TAXES
	  	 	23	  
	 (a)
	  	 General
	  	 	23	  
	 (b)
	  	 Share Withholding
	  	 	23	  
		
	 SECTION 17. TRANSFERABILITY
	  	 	23	  
		
	 SECTION 18. NO EMPLOYMENT RIGHTS
	  	 	23	  

  

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 2004 STOCK INCENTIVE PLAN 

  
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	 SECTION 19. DURATION AND AMENDMENTS
	  	 	24	  
	 (a)
	  	 Term of the Plan
	  	 	24	  
	 (b)
	  	 Right to Amend or Terminate the Plan
	  	 	24	  
	 (c)
	  	 Effect of Termination
	  	 	24	  
		
	 SECTION 20. EXECUTION
	  	 	25	  

  

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 2004 STOCK INCENTIVE PLAN 

  
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 ORANGE 21 INC. 

2004 STOCK INCENTIVE PLAN 
 SECTION 1. ESTABLISHMENT AND PURPOSE. 
 The Plan was originally
adopted by the Board of Directors on December 8, 2004, effective as of the date of the initial offering of Stock to the public pursuant to a registration statement filed by the Company with the Securities and Exchange Commission (the
“Effective Date”) and was amended and restated by the Board on April 26, 2007. The Board further amended and restated the Plan on September 13, 2011. 
 The purpose of the Plan is to promote the long-term success of the Company and the creation of stockholder value by (a) encouraging Employees, Outside Directors and Consultants to focus on critical
long-range objectives, (b) encouraging the attraction and retention of Employees, Outside Directors and Consultants with exceptional qualifications and (c) linking Employees, Outside Directors and Consultants directly to stockholder
interests through increased stock ownership. The Plan seeks to achieve this purpose by providing for Awards in the form of restricted shares, stock units, options (which may constitute incentive stock options or nonstatutory stock options) or stock
appreciation rights. 
 SECTION 2. DEFINITIONS. 
 (a) “Affiliate” shall mean any entity other than a Subsidiary, if the Company and/or one of more Subsidiaries own not less than 50% of such entity. 

(b) “Award” shall mean any award of an Option, a SAR, a Restricted Share or a Stock Unit under the Plan. 

(c) “Board of Directors” shall mean the Board of Directors of the Company, as constituted from time to time. 

(d) “California Participant” shall mean a Participant whose Award, when granted, was issued in reliance either on
section 25111, 25112 or 25113 of the California Corporations Code. Solely to the extent required to comply with the requirements of the California Corporate Securities Law of 1968 at the time of

  

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grant and thereafter, Awards to California Participants shall also be subject to the additional terms specified in Appendix A. The Committee, in its discretion, may also elect to include some or
all of the Appendix A terms in Awards to Participants who are not California Participants. Appendix A is a part of this Plan. 

(e) “Change in Control” shall mean the occurrence of any of the following events: 

(i) A change in the composition of the Board of Directors occurs, as a result of which fewer than one-half of the incumbent directors are
directors who either: 
 (A) Had been directors of the Company on the “look-back date” (as defined below) (the
“original directors”); or 
 (B) Were elected, or nominated for election, to the Board of Directors with the
affirmative votes of at least a majority of the aggregate of the original directors who were still in office at the time of the election or nomination and the directors whose election or nomination was previously so approved (the “continuing
directors”); or 
 (ii) Any “person” (as defined below) who by the acquisition or aggregation of securities, is
or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 50% or more of the combined voting power of the Company’s then outstanding
securities ordinarily (and apart from rights accruing under special circumstances) having the right to vote at elections of directors (the “Base Capital Stock”); except that any change in the relative beneficial ownership of the
Company’s securities by any person resulting solely from a reduction in the aggregate number of outstanding shares of Base Capital Stock, and any decrease thereafter in such person’s ownership of securities, shall be disregarded until such
person increases in any manner, directly or indirectly, such person’s beneficial ownership of any securities of the Company; or 
 (iii) The consummation of a merger or consolidation of the Company with or into another entity or any other corporate reorganization, if persons who were not stockholders of the Company immediately prior
to such merger, consolidation or other reorganization own immediately after such merger, consolidation or other reorganization 50% or more of the voting power of the outstanding securities of each of (A) the continuing or surviving entity and
(B) any direct or indirect parent corporation of such continuing or surviving entity; or 
 (iv) The sale, transfer or
other disposition of all or substantially all of the Company’s assets. 
 For purposes of subsection (e)(i) above, the
term “look-back” date shall mean the later of (1) the Effective Date, or (2) the date 24 months prior to the date of the event that may constitute a Change in Control. 

  

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 2004 STOCK INCENTIVE PLAN 

  
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 For purposes of subsection (e)(ii) above, the term “person” shall have the same
meaning as when used in Sections 13(d) and 14(d) of the Exchange Act but shall exclude (1) a trustee or other fiduciary holding securities under an employee benefit plan maintained by the Company or a Parent or Subsidiary and (2) a
corporation owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of the Stock. 
 Any other provision of this Section 2(e) notwithstanding, no transaction nor series of related transactions described in (ii) through (iv) above with a Disqualified Party as the acquiring
party shall be treated as Change in Control; provided, further, that a transaction shall not constitute a Change in Control if its sole purpose is to change the state of the Company’s incorporation or to create a holding company that will be
owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction, and a Change in Control shall not be deemed to occur if the Company files a registration statement with the
Securities and Exchange Commission for the initial offering of Stock to the public. 
 (f) “Code” shall mean
the Internal Revenue Code of 1986, as amended. 
 (g) “Committee” shall mean the Compensation Committee as
designated by the Board of Directors, which is authorized to administer the Plan, as described in Section 3 hereof. 

(h) “Company” shall mean Orange 21 Inc., a Delaware corporation. 

(i) “Consultant” shall mean a consultant or advisor who provides bona fide services to the Company, a Parent, a
Subsidiary or an Affiliate as an independent contractor or a member of the board of directors of a Parent or a Subsidiary who is not an Employee. Service as a Consultant shall be considered Service for all purposes of the Plan. 

(j) “Disqualified Party” shall mean any of Costa Brava Partnership III, L.P., Roark, Rearden & Hamot, LLP, Seth
W. Hamot, an individual, and any affiliates of the foregoing entities and individual. 
 (k) “Employee” shall
mean any individual who is a common-law employee of the Company, a Parent or a Subsidiary. 

  

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 (l) “Exchange Act” shall mean the Securities Exchange Act of 1934, as
amended. 
 (m) “Exercise Price” shall mean, in the case of an Option, the amount for which one Common Share
may be purchased upon exercise of such Option, as specified in the applicable Stock Option Agreement. “Exercise Price,” in the case of a SAR, shall mean an amount, as specified in the applicable SAR Agreement, which is subtracted from the
Fair Market Value of one Common Share in determining the amount payable upon exercise of such SAR. 
 (n) “Fair Market
Value” with respect to a Share, shall mean the market price of one Share of Stock, determined by the Committee as follows: 
 (i) If the Stock was traded over-the-counter on the date in question but was not traded on The Nasdaq Stock Market, then the Fair Market Value shall be equal to the last transaction price quoted for such
date by the OTC Bulletin Board or, if not so quoted, shall be equal to the mean between the last reported representative bid and asked prices quoted for such date by the principal automated inter-dealer quotation system on which the Stock is quoted
or, if the Stock is not quoted on any such system, by the Pink Sheets LLC; 
 (ii) If the Stock was traded on The Nasdaq Stock
Market, then the Fair Market Value shall be equal to the last reported sale price quoted for such date by The Nasdaq Stock Market; 
 (iii) If the Stock was traded on a United States stock exchange on the date in question, then the Fair Market Value shall be equal to the closing price reported for such date by the applicable
composite-transactions report; and 
 (iv) If none of the foregoing provisions is applicable, then the Fair Market Value shall
be determined by the Committee in good faith on such basis as it deems appropriate. 
 In all cases, the determination of Fair Market Value by
the Committee shall be conclusive and binding on all persons. 
 (o) “ISO” shall mean an employee incentive
stock option described in Section 422 of the Code. 
 (p) “Nonstatutory Option” or “NSO”
shall mean an employee stock option that is not an ISO. 

  

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 2004 STOCK INCENTIVE PLAN 

  
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 (q) “Offeree” shall mean an individual to whom the Committee has offered
the right to acquire Shares under the Plan (other than upon exercise of an Option). 
 (r) “Option” shall mean
an ISO or Nonstatutory Option granted under the Plan and entitling the holder to purchase Shares. 
 (s)
“Optionee” shall mean an individual or estate who holds an Option or SAR. 
 (t) “Outside
Director” shall mean a member of the Board of Directors who is not a common-law employee of, or paid consultant to, the Company or a Subsidiary. Service as an Outside Director shall be considered Service for all purposes of the Plan, except
as provided in Section 4(a). 
 (u) “Parent” shall mean any corporation (other than the Company) in an
unbroken chain of corporations ending with the Company, if each of the corporations other than the Company owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. A
corporation that attains the status of a Parent on a date after the adoption of the Plan shall be a Parent commencing as of such date. 
 (v) “Participant” shall mean an individual or estate who holds an Award. 
 (w) “Plan” shall mean this 2004 Stock Incentive Plan of Orange 21 Inc., as amended from time to time. 
 (x) “Purchase Price” shall mean the consideration for which one Share may be acquired under the Plan (other than upon exercise of an Option), as specified by the Committee. 

(y) “Restricted Share” shall mean a Share awarded under the Plan. 

(z) “Restricted Stock Agreement” 

  

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 2004 STOCK INCENTIVE PLAN 

  
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shall mean the agreement between the Company and the recipient of a Restricted Share which contains the terms, conditions and restrictions pertaining to such Restricted Shares. 

(aa) “SAR” shall mean a stock appreciation right granted under the Plan. 

(bb) “SAR Agreement” shall mean the agreement between the Company and an Optionee which contains the terms, conditions
and restrictions pertaining to his or her SAR. 
 (cc) “Service” shall mean service as an Employee, Consultant
or Outside Director. 
 (dd) “Share” shall mean one share of Stock, as adjusted in accordance with
Section 8 (if applicable). 
 (ee) “Stock” shall mean the Common Stock of the Company. 

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

(jj) “Total and Permanent Disability” 

  

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 2004 STOCK INCENTIVE PLAN 

  
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shall mean that the Optionee is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death
or that has lasted, or can be expected to last, for a continuous period of not less than 12 months. 
 SECTION 3. ADMINISTRATION.

 (a) Committee Composition. The Plan shall be administered by the Committee. The Committee shall consist of two or
more directors of the Company, who shall be appointed by the Board. In addition, the composition of the Committee shall satisfy (i) such requirements as the Securities and Exchange Commission may establish for administrators acting under plans
intended to qualify for exemption under Rule 16b-3 (or its successor) under the Exchange Act; and (ii) such requirements as the Internal Revenue Service may establish for outside directors acting under plans intended to qualify for exemption
under Section 162(m)(4)(C) of the Code. 
 (b) Committee for Non-Officer Grants. The Board may also appoint one or
more separate committees of the Board, each composed of one or more directors of the Company who need not satisfy the requirements of Section 3(a), who may administer the Plan with respect to Employees who are not considered officers or
directors of the Company under Section 16 of the Exchange Act, may grant Awards under the Plan to such Employees and may determine all terms of such grants. Within the limitations of the preceding sentence, any reference in the Plan to the
Committee shall include such committee or committees appointed pursuant to the preceding sentence. The Board of Directors may also authorize one or more officers of the Company to designate Employees, other than officers under Section 16 of the
Exchange Act, to receive Awards and/or to determine the number of such Awards to be received by such persons; provided, however, that the Board of Directors shall specify the total number of Awards that such officers may so award. 

(c) Committee Procedures. The Board of Directors shall designate one of the members of the Committee as chairman. The Committee
may hold meetings at such times and places as it shall determine. The acts of a majority of the Committee members present at meetings at which a quorum exists, or acts reduced to or approved in writing by all Committee members, shall be valid acts
of the Committee. 
 (d) Committee Responsibilities. Subject to the provisions of the Plan, the Committee shall have full
authority and discretion to take the following actions: 

  

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 (i) To interpret the Plan and to apply its provisions; 

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

(iii) To authorize any person to execute, on behalf of the Company, any instrument required to carry out the purposes of the Plan;

 (iv) To determine when Shares are to be awarded or offered for sale and when Options are to be granted under the Plan;

 (v) To select the Offerees and Optionees; 
 (vi) To determine the number of Shares to be offered to each Offeree or to be made subject to each Option; 
 (vii) To prescribe the terms and conditions of each award or sale of Shares, including (without limitation) the Purchase Price, the vesting of the award (including accelerating the vesting of awards,
either at the time of the award or sale or thereafter, without the consent of the Offeree or Optionee) and to specify the provisions of the Restricted Stock Agreement relating to such award or sale; 

(viii) To prescribe the terms and conditions of each Option, including (without limitation) the Exercise Price, the vesting or duration
of the Option (including accelerating the vesting of the Option), to determine whether such Option is to be classified as an ISO or as a Nonstatutory Option, and to specify the provisions of the Stock Option Agreement relating to such Option;

 (ix) To amend any outstanding Restricted Stock Agreement or Stock Option Agreement, subject to applicable legal restrictions
and to the consent of the Offeree or Optionee who entered into such agreement if the Offeree’s or Optionee’s rights or obligations would be adversely affected; 
 (x) To prescribe the consideration for the grant of each Option or other right under the Plan and to determine the sufficiency of such consideration; 

(xi) To determine the disposition of each Option or other right under the Plan in the event of an Optionee’s or Offeree’s
divorce or dissolution of marriage; 
 (xii) To determine whether Options or other rights under the Plan will be granted in
replacement of other grants under an incentive or other compensation plan of an acquired business; 
 (xiii) To correct any
defect, supply any omission, or reconcile any inconsistency in the Plan, any Stock Option Agreement or any Restricted Stock Agreement; and 

  

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 2004 STOCK INCENTIVE PLAN 

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

SECTION 4. ELIGIBILITY. 
 (a) General Rule. Only Employees shall be eligible for the grant of ISOs. Only Employees, Consultants and Outside Directors shall be eligible for the grant of Restricted Shares, Stock Units,
Nonstatutory Options or SARs. 
 (b) Automatic Grants to Outside Directors. 

(i) Each Outside Director who first joins the Board of Directors on or after the Effective Date, and who was not previously an Employee,
shall receive a Nonstatutory Option to purchase 15,000 Shares (subject to adjustment under Section 11) on the date of his or her election to the Board of Directors. The Shares subject to each Option granted under this Section 4(b)(i) shall
vest and become exercisable on the first anniversary of the date of grant. Notwithstanding the foregoing, each such Option shall become vested in full if a Change in Control occurs with respect to the Company during the Optionee’s Service.

 (ii) On the first business day following the conclusion of each regular annual meeting of the Company’s stockholders,
commencing with the annual meeting occurring after the adoption of the Plan, each Outside Director who was not elected to the Board for the first time at such meeting and who will continue serving as a member of the Board of Directors thereafter
shall receive an Option to purchase 15,000 Shares (subject to adjustment under Section 11), provided that such Outside Director has served on the Board of Directors for at least six months. Each Option granted under the preceding sentence of
this Section 4(b)(ii) shall fully vest and become exercisable on the first anniversary of the date of grant; provided, however, that each such Option shall become exercisable in full immediately prior to the next regular annual meeting of the
Company’s stockholders following such date of grant in the event such meeting occurs prior to such first anniversary date. Notwithstanding the foregoing, each Option granted 

  

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under this Section 4(b)(ii) shall become vested in full if a Change in Control occurs with respect to the Company during the Optionee’s Service. 

(iii) The Exercise Price of all Nonstatutory Options granted to an Outside Director under this Section 4(b) shall be equal to 100%
of the Fair Market Value of a Share on the date of grant, payable in one of the forms described in Section 8(a), (b) or (d). 
 (iv) All Nonstatutory Options granted to an Outside Director under this Section 4(b) shall terminate on the earlier of (A) the day before the tenth anniversary of the date of grant of such
Options or (B) the date twelve months after the termination of such Outside Director’s Service for any reason; provided, however, that any such Options that are not vested upon the termination of the Outside Director’s Service for any
reason shall terminate immediately and may not be exercised. 
 (c) Ten-Percent Stockholders. An Employee who owns more
than 10% of the total combined voting power of all classes of outstanding stock of the Company, a Parent or Subsidiary shall not be eligible for the grant of an ISO unless such grant satisfies the requirements of Section 422(c)(5) of the Code.

 (d) Attribution Rules. For purposes of Section 4(c) above, in determining stock ownership, an Employee shall be
deemed to own the stock owned, directly or indirectly, by or for such Employee’s brothers, sisters, spouse, ancestors and lineal descendants. Stock owned, directly or indirectly, by or for a corporation, partnership, estate or trust shall be
deemed to be owned proportionately by or for its stockholders, partners or beneficiaries. 
 (e) Outstanding Stock. For
purposes of Section 4(c) above, “outstanding stock” shall include all stock actually issued and outstanding immediately after the grant. “Outstanding stock” shall not include shares authorized for issuance under outstanding
options held by the Employee or by any other person. 
 SECTION 5. STOCK SUBJECT TO PLAN. 

(a) Basic Limitation. Shares offered under the Plan shall be authorized but unissued Shares or treasury Shares. The maximum
aggregate number of Options, SARs, Stock Units and Restricted Shares awarded (and the maximum number of Shares which may be issued pursuant to the exercise of ISOs) under the Plan shall not exceed 4,325,000 Shares, plus an annual increase on the
first day of each fiscal year during the term of the Plan, with the next such annual increase occurring on January 1, 2012, in each case in an amount equal to the lesser of (i) 700,000 Shares, (ii) 10% of

  

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the outstanding Shares on the last day of the immediately preceding year, or (iii) an amount determined by the Board. The limitations of this Section 5(a) shall be subject to adjustment
pursuant to Section 11. The number of Shares that are subject to Options or other rights outstanding at any time under the Plan shall not exceed the number of Shares which then remain available for issuance under the Plan. The Company, during
the term of the Plan, shall at all times reserve and keep available sufficient Shares to satisfy the requirements of the Plan. 

(b) Option/SAR Limitation. Subject to the provisions of Section 11, no Participant may receive Options or SARs under the Plan
in any calendar year that relate to more than 250,000 Shares. 
 (c) Additional Shares. If Restricted Shares or Shares
issued upon the exercise of Options are forfeited, then such Shares shall again become available for Awards under the Plan. If Stock Units, Options or SARs are forfeited or terminate for any other reason before being exercised, then the
corresponding Shares shall again become available for Awards under the Plan. If Stock Units are settled, then only the number of Shares (if any) actually issued in settlement of such Stock Units shall reduce the number available under
Section 5(a) and the balance shall again become available for Awards under the Plan. If SARs are exercised, then only the number of Shares (if any) actually issued in settlement of such SARs shall reduce the number available in
Section 5(a) and the balance shall again become available for Awards under the Plan. 
 SECTION 6. RESTRICTED SHARES.

 (a) Restricted Stock Agreement. Each grant of Restricted Shares under the Plan shall be evidenced by a Restricted
Stock Agreement between the recipient and the Company. Such Restricted Shares shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various
Restricted Stock Agreements entered into under the Plan need not be identical. 
 (b) Payment for Awards. Subject to the
following sentence, Restricted Shares may be sold or awarded under the Plan for such consideration as the Committee may determine, including (without limitation) cash, cash equivalents, full-recourse promissory notes, past services and future
services. To the extent that an Award consists of newly issued Restricted Shares, the Award recipient shall furnish consideration with a value not less than the par value of such Restricted Shares in the form of cash, cash equivalents, or past
services rendered to the Company (or a Parent or Subsidiary), as the Committee may determine. 

  

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 (c) Vesting. Each Award of Restricted Shares may or may not be subject to vesting.
Vesting shall occur, in full or in installments, upon satisfaction of the conditions specified in the Restricted Stock Agreement. A Restricted Stock Agreement may provide for accelerated vesting in the event of the Participant’s death,
disability or retirement or other events. The Committee may determine, at the time of granting Restricted Shares of thereafter, that all or part of such Restricted Shares shall become vested in the event that a Change in Control occurs with respect
to the Company. 
 (d) Voting and Dividend Rights. The holders of Restricted Shares awarded under the Plan shall have the
same voting, dividend and other rights as the Company’s other stockholders. A Restricted Stock Agreement, however, may require that the holders of Restricted Shares invest any cash dividends received in additional Restricted Shares. Such
additional Restricted Shares shall be subject to the same conditions and restrictions as the Award with respect to which the dividends were paid. 
 (e) Restrictions on Transfer of Shares. Restricted Shares shall be subject to such rights of repurchase, rights of first refusal or other restrictions as the Committee may determine. Such
restrictions shall be set forth in the applicable Restricted Stock Agreement and shall apply in addition to any general restrictions that may apply to all holders of Shares. 
 SECTION 7. TERMS AND CONDITIONS OF OPTIONS. 
 (a) Stock
Option Agreement. Each grant of an Option under the Plan shall be evidenced by a Stock Option Agreement between the Optionee and the Company. Such Option shall be subject to all applicable terms and conditions of the Plan and may be subject to
any other terms and conditions which are not inconsistent with the Plan and which the Committee deems appropriate for inclusion in a Stock Option Agreement. The Stock Option Agreement shall specify whether the Option is an ISO or an NSO. The
provisions of the various Stock Option Agreements entered into under the Plan need not be identical. Options may be granted in consideration of a reduction in the Optionee’s other compensation. 

(b) Number of Shares. Each Stock Option Agreement shall specify the number of Shares that are subject to the Option and shall
provide for the adjustment of such number in accordance with Section 11. 
 (c) Exercise Price.

  

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Each Stock Option Agreement shall specify the Exercise Price. The Exercise Price of an ISO shall not be less than 100% of the Fair Market Value of a Share on the date of grant, except as
otherwise provided in Section 4(c). A Stock Option Agreement may specify that the exercise price of an NSO may vary in accordance with a predetermined formula. Subject to the foregoing in this Section 7(c), the Exercise Price under any
Option shall be determined by the Committee at its sole discretion. The Exercise Price shall be payable in one of the forms described in Section 8. 
 (d) Withholding Taxes. As a condition to the exercise of an Option, the Optionee shall make such arrangements as the Committee may require for the satisfaction of any federal, state, local or
foreign withholding tax obligations that may arise in connection with such exercise. The Optionee shall also make such arrangements as the Committee may require for the satisfaction of any federal, state, local or foreign withholding tax obligations
that may arise in connection with the disposition of Shares acquired by exercising an Option. 
 (e) Exercisability and
Term. Each Stock Option Agreement shall specify the date when all or any installment of the Option is to become exercisable. The Stock Option Agreement shall also specify the term of the Option; provided that the term of an ISO shall in no event
exceed 10 years from the date of grant (five years for Employees described in Section 4(c)). A Stock Option Agreement may provide for accelerated exercisability in the event of the Optionee’s death, disability, or retirement or other
events and may provide for expiration prior to the end of its term in the event of the termination of the Optionee’s Service. Options may be awarded in combination with SARs, and such an Award may provide that the Options will not be
exercisable unless the related SARs are forfeited. Subject to the foregoing in this Section 7(e), the Committee at its sole discretion shall determine when all or any installment of an Option is to become exercisable and when an Option is to
expire. 
 (f) Exercise of Options Upon Termination of Service. Each Stock Option Agreement shall set forth the extent to
which the Optionee shall have the right to exercise the Option following termination of the Optionee’s Service with the Company and its Subsidiaries, and the right to exercise the Option of any executors or administrators of the Optionee’s
estate or any person who has acquired such Option(s) directly from the Optionee by bequest or inheritance. Such provisions shall be determined in the sole discretion of the Committee, need not be uniform among all Options issued pursuant to the
Plan, and may reflect distinctions based on the reasons for termination of Service. 
 (g) Effect of Change in Control.
The Committee may determine, at the time of granting an Option or thereafter, that such Option shall become exercisable as to all or part of the Shares subject to such Option in the event that a Change in Control occurs with respect to the Company.

  

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

(i) No Rights as a Stockholder. An Optionee, or a transferee of an Optionee, shall have no rights as a stockholder with respect to
any Shares covered by his Option until the date of the issuance of a stock certificate for such Shares. No adjustments shall be made, except as provided in Section 11. 
 (j) Modification, Extension and Renewal of Options. Within the limitations of the Plan, the Committee may modify, extend or renew outstanding options or may accept the cancellation of outstanding
options (to the extent not previously exercised), whether or not granted hereunder, in return for the grant of new Options for the same or a different number of Shares and at the same or a different exercise price, or in return for the grant of the
same or a different number of Shares. The foregoing notwithstanding, no modification of an Option shall, without the consent of the Optionee, adversely affect his or her rights or obligations under such Option. 

(k) Restrictions on Transfer of Shares. Any Shares issued upon exercise of an Option shall be subject to such special forfeiture
conditions, rights of repurchase, rights of first refusal and other transfer restrictions as the Committee may determine. Such restrictions shall be set forth in the applicable Stock Option Agreement and shall apply in addition to any general
restrictions that may apply to all holders of Shares. 
 (l) Buyout Provisions. The Committee may at any time
(a) offer to buy out for a payment in cash or cash equivalents an Option previously granted or (b) authorize an Optionee to elect to cash out an Option previously granted, in either case at such time and based upon such terms and
conditions as the Committee shall establish. 

  

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 SECTION 8. PAYMENT FOR SHARES. 

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

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

  

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Company) a full-recourse promissory note. However, the par value of the Common Shares being purchased under the Plan, if newly issued, shall be paid in cash or cash equivalents. 

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

SECTION 9. STOCK APPRECIATION RIGHTS. 
 (a) SAR Agreement. Each grant of a SAR under the Plan shall be evidenced by a SAR Agreement between the Optionee and the Company. Such SAR shall be subject to all applicable terms of the Plan and
may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various SAR Agreements entered into under the Plan need not be identical. SARs may be granted in consideration of a reduction in the Optionee’s
other compensation. 
 (b) Number of Shares. Each SAR Agreement shall specify the number of Shares to which the SAR
pertains and shall provide for the adjustment of such number in accordance with Section 11. 
 (c) Exercise Price.
Each SAR Agreement shall specify the Exercise Price. A SAR Agreement may specify an Exercise Price that varies in accordance with a predetermined formula while the SAR is outstanding. 

(d) Exercisability and Term. Each SAR Agreement shall specify the date when all or any installment of the SAR is to become
exercisable. The SAR Agreement shall also specify the term of the SAR. A SAR Agreement may provide for accelerated exercisability in the event of the Optionee’s death, disability or retirement or other events and may provide for expiration
prior to the end of its term in the event of the termination of the Optionee’s service. SARs may be awarded in combination with Options, and such an Award may provide that the SARs will not be exercisable unless the

  

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related Options are forfeited. A SAR may be included in an ISO only at the time of grant but may be included in an NSO at the time of grant or thereafter. A SAR granted under the Plan may provide
that it will be exercisable only in the event of a Change in Control. 
 (e) Effect of Change in Control. The Committee
may determine, at the time of granting a SAR or thereafter, that such SAR shall become fully exercisable as to all Common Shares subject to such SAR in the event that a Change in Control occurs with respect to the Company. 

(f) Exercise of SARs. Upon exercise of a SAR, the Optionee (or any person having the right to exercise the SAR after his or her
death) shall receive from the Company (a) Shares, (b) cash or (c) a combination of Shares and cash, as the Committee shall determine. The amount of cash and/or the Fair Market Value of Shares received upon exercise of SARs shall, in
the aggregate, be equal to the amount by which the Fair Market Value (on the date of surrender) of the Shares subject to the SARs exceeds the Exercise Price. 
 (g) Modification or Assumption of SARs. Within the limitations of the Plan, the Committee may modify, extend or assume outstanding SARs or may accept the cancellation of outstanding SARs (whether
granted by the Company or by another issuer) in return for the grant of new SARs for the same or a different number of shares and at the same or a different exercise price. The foregoing notwithstanding, no modification of a SAR shall, without the
consent of the holder, may alter or impair his or her rights or obligations under such SAR. 
 SECTION 10. STOCK UNITS.

 (a) Stock Unit Agreement. Each grant of Stock Units under the Plan shall be evidenced by a Stock Unit Agreement
between the recipient and the Company. Such Stock Units shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various Stock Unit Agreements entered
into under the Plan need not be identical. Stock Units may be granted in consideration of a reduction in the recipient’s other compensation. 
 (b) Payment for Awards. To the extent that an Award is granted in the form of Stock Units, no cash consideration shall be required of the Award recipients. 

  

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 (c) Vesting Conditions. Each Award of Stock Units may or may not be subject to
vesting. Vesting shall occur, in full or in installments, upon satisfaction of the conditions specified in the Stock Unit Agreement. A Stock Unit Agreement may provide for accelerated vesting in the event of the Participant’s death, disability
or retirement or other events. The Committee may determine, at the time of granting Stock Units or thereafter, that all or part of such Stock Units shall become vested in the event that a Change in Control occurs with respect to the Company.

 (d) Voting and Dividend Rights. The holders of Stock Units shall have no voting rights. Prior to settlement or
forfeiture, any Stock Unit awarded under the Plan may, at the Committee’s discretion, carry with it a right to dividend equivalents. Such right entitles the holder to be credited with an amount equal to all cash dividends paid on one Share
while the Stock Unit is outstanding. Dividend equivalents may be converted into additional Stock Units. Settlement of dividend equivalents may be made in the form of cash, in the form of Shares, or in a combination of both. Prior to distribution,
any dividend equivalents which are not paid shall be subject to the same conditions and restrictions (including without limitation, any forfeiture conditions) as the Stock Units to which they attach. 

(e) Form and Time of Settlement of Stock Units. Settlement of vested Stock Units may be made in the form of (a) cash,
(b) Shares or (c) any combination of both, as determined by the Committee. The actual number of Stock Units eligible for settlement may be larger or smaller than the number included in the original Award, based on predetermined performance
factors. Methods of converting Stock Units into cash may include (without limitation) a method based on the average Fair Market Value of Shares over a series of trading days. Vested Stock Units may be settled in a lump sum or in installments. The
distribution may occur or commence when all vesting conditions applicable to the Stock Units have been satisfied or have lapsed, or it may be deferred to any later date. The amount of a deferred distribution may be increased by an interest factor or
by dividend equivalents. Until an Award of Stock Units is settled, the number of such Stock Units shall be subject to adjustment pursuant to Section 11. 
 (f) Death of Recipient. Any Stock Units Award that becomes payable after the recipient’s death shall be distributed to the recipient’s beneficiary or beneficiaries. Each recipient of a
Stock Units Award under the Plan shall designate one or more beneficiaries for this purpose by filing the prescribed form with the Company. A beneficiary designation may be changed by filing the prescribed form with the Company at any time before
the Award recipient’s death. If no beneficiary was designated or if no designated beneficiary survives the Award recipient, then any Stock Units Award that becomes payable after the recipient’s death shall be distributed to the
recipient’s estate. 
 (g) Creditors’ Rights. 

  

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A holder of Stock Units shall have no rights other than those of a general creditor of the Company. Stock Units represent an unfunded and unsecured obligation of the Company, subject to the terms
and conditions of the applicable Stock Unit Agreement. 
 SECTION 11. ADJUSTMENT OF SHARES. 

(a) Adjustments. In the event of a subdivision of the outstanding Stock, a declaration of a dividend payable in Shares, a
declaration of a dividend payable in a form other than Shares in an amount that has a material effect on the price of Shares, a combination or consolidation of the outstanding Stock (by reclassification or otherwise) into a lesser number of Shares,
a recapitalization, a spin-off or a similar occurrence, the Committee shall make such adjustments as it, in its sole discretion, deems appropriate in one or more of: 
 (i) The number of Options, SARs, Restricted Shares and Stock Units available for future Awards under Section 5; 
 (ii) The limitations set forth in Section 5(a) and (b); 
 (iii) The number of
NSOs to be granted to Outside Directors under Section 4(b); 
 (iv) The number of Shares covered by each outstanding Option
and SAR; 
 (v) The Exercise Price under each outstanding Option and SAR; or 

(vi) The number of Stock Units included in any prior Award which has not yet been settled. 

Except as provided in this Section 11, a Participant shall have no rights by reason of any issue by the Company of stock of any class or securities
convertible into stock of any class, any subdivision or consolidation of shares of stock of any class, the payment of any stock dividend or any other increase or decrease in the number of shares of stock of any class. 

(b) Dissolution or Liquidation. To the extent not previously exercised or settled, Options, SARs and Stock Units shall terminate
immediately prior to the dissolution or liquidation of the Company. 
 (c) Reorganizations.

  

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In the event that the Company is a party to a merger or other reorganization, outstanding Awards shall be subject to the agreement of merger or reorganization. Such agreement shall provide for:

 (i) The continuation of the outstanding Awards by the Company, if the Company is a surviving corporation; 

(ii) The assumption of the outstanding Awards by the surviving corporation or its parent or subsidiary; 

(iii) The substitution by the surviving corporation or its parent or subsidiary of its own awards for the outstanding Awards; 

(iv) Full exercisability or vesting and accelerated expiration of the outstanding Awards; or 

(v) Settlement of the full value of the outstanding Awards in cash or cash equivalents followed by cancellation of such Awards.

 (d) Reservation of Rights. Except as provided in this Section 11, an Optionee or Offeree shall have no rights by
reason of any subdivision or consolidation of shares of stock of any class, the payment of any dividend or any other increase or decrease in the number of shares of stock of any class. Any issue by the Company of shares of stock of any class, or
securities convertible into shares of stock of any class, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number or Exercise Price of Shares subject to an Option. The grant of an Option pursuant to the Plan
shall not affect in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or changes of its capital or business structure, to merge or consolidate or to dissolve, liquidate, sell or transfer all or any
part of its business or assets. 
 SECTION 12. DEFERRAL OF AWARDS. 

The Committee (in its sole discretion) may permit or require a Participant to: 

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

  

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 (c) Have Shares that otherwise would be delivered to such Participant as a result of the
exercise of an Option or SAR or the settlement of Stock Units converted into amounts credited to a deferred compensation account established for such Participant by the Committee as an entry on the Company’s books. Such amounts shall be
determined by reference to the Fair Market Value of such Shares as of the date when they otherwise would have been delivered to such Participant. 
 A deferred compensation account established under this Section 12 may be credited with interest or other forms of investment return, as determined by the Committee. A Participant for whom such an
account is established shall have no rights other than those of a general creditor of the Company. Such an account shall represent an unfunded and unsecured obligation of the Company and shall be subject to the terms and conditions of the applicable
agreement between such Participant and the Company. If the deferral or conversion of Awards is permitted or required, the Committee (in its sole discretion) may establish rules, procedures and forms pertaining to such Awards, including (without
limitation) the settlement of deferred compensation accounts established under this Section 12. 
 SECTION 13. AWARDS UNDER OTHER
PLANS. 
 The Company may grant awards under other plans or programs. Such awards may be settled in the form of Shares
issued under this Plan. Such Shares shall be treated for all purposes under the Plan like Shares issued in settlement of Stock Units and shall, when issued, reduce the number of Shares available under Section 5. 

SECTION 14. PAYMENT OF DIRECTOR’S FEES IN SECURITIES. 
 (a) Effective Date. No provision of this Section 14 shall be effective unless and until the Board has determined to implement such provision. 

(b) Elections to Receive NSOs, Restricted Shares or Stock Units. An Outside Director may elect to receive his or her annual
retainer payments and/or meeting fees from the Company in the form of cash, NSOs, Restricted Shares or Stock Units, or a combination thereof, as determined by the Board. Such NSOs, Restricted Shares and Stock Units shall be issued under the Plan. An
election under this Section 14 shall be filed with the Company on the prescribed form. 
 (c) Number and Terms of NSOs,
Restricted Shares or Stock Units. 

  

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The number of NSOs, Restricted Shares or Stock Units to be granted to Outside Directors in lieu of annual retainers and meeting fees that would otherwise be paid in cash shall be calculated in a
manner determined by the Board. The terms of such NSOs, Restricted Shares or Stock Units shall also be determined by the Board. 

SECTION 15. LEGAL AND REGULATORY REQUIREMENTS. 
 Shares shall not be issued under the Plan unless the issuance and delivery of such Shares complies with (or is exempt from) all applicable requirements of law, including (without limitation) the
Securities Act of 1933, as amended, the rules and regulations promulgated thereunder, state securities laws and regulations and the regulations of any stock exchange on which the Company’s securities may then be listed, and the Company has
obtained the approval or favorable ruling from any governmental agency which the Company determines is necessary or advisable. 

The Plan and Awards granted hereunder are intended to comply with the requirements of Code Section 409A and shall be interpreted in
a manner consistent with such intention. In the event that any provision of the Plan or an Award agreement is determined by the Committee to not comply with the applicable requirements of Code Section 409A or the Treasury Regulations or other
guidance issued thereunder, the Committee shall have the authority to take such actions and to make such changes to the Plan or an Award agreement as the Committee deems necessary to comply with such requirements. Each payment to a Participant made
pursuant to this Plan shall be considered a separate payment and not one of a series of payments for purposes of Code Section 409A. If upon a Participant’s “separation from service” (as defined in Code Section 409A), he/she
is then a “specified employee” (as defined in Code Section 409A), then solely to the extent necessary to comply with Code Section 409A and avoid the imposition of taxes under Code Section 409A, the Company shall defer
payment of “nonqualified deferred compensation” subject to Code Section 409A payable as a result of and within six (6) months following such separation from service under this Plan until the earlier of (i) the first business
day of the seventh month following the Participant’s separation from service, or (ii) ten (10) days after the Company receives written confirmation of the Participant’s death. Any such delayed payments shall be made without
interest. In no event whatsoever shall the Company be liable for any additional tax, interest or penalties that may be imposed on a Participant by Code Section 409A or any damages for failing to comply with Code Section 409A. 

This Plan, and (unless otherwise provided in the Award agreement) all Awards, shall be construed in accordance with and governed by the
laws of the State of Delaware, but without regard to its conflict of law provisions. The Committee may provide that any dispute as to any Award shall be presented and determined in such forum as the Committee may specify, including through binding
arbitration. Unless otherwise provided in the Award agreement, recipients of an Award under the Plan are deemed to submit to the exclusive jurisdiction and venue of the federal or state courts of California to resolve any and all issues that may
arise out of or relate to the Plan or any related Award agreement. 

  

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 SECTION 16. WITHHOLDING TAXES. 

(a) General. To the extent required by applicable federal, state, local or foreign law, a Participant or his or her successor shall
make arrangements satisfactory to the Company for the satisfaction of any withholding tax obligations that arise in connection with the Plan. The Company shall not be required to issue any Shares or make any cash payment under the Plan until such
obligations are satisfied. 
 (b) Share Withholding. The Committee may permit a Participant to satisfy all or part of his
or her withholding or income tax obligations by having the Company withhold all or a portion of any Shares that otherwise would be issued to him or her or by surrendering all or a portion of any Shares that he or she previously acquired. Such Shares
shall be valued at their Fair Market Value on the date when taxes otherwise would be withheld in cash. In no event may a Participant have Shares withheld that would otherwise be issued to him or her in excess of the number necessary to satisfy the
legally required minimum tax withholding. 
 SECTION 17. TRANSFERABILITY. 

Unless the agreement evidencing an Award (or an amendment thereto authorized by the Committee) expressly provides otherwise, no Award
granted under this Plan, nor any interest in such Award, may be sold, assigned, conveyed, gifted, pledged, hypothecated or otherwise transferred in any manner (prior to the vesting and lapse of any and all restrictions applicable to Shares issued
under such Award), other than by will or the laws of descent and distribution; provided, however, that an ISO may be transferred or assigned only to the extent consistent with Section 422 of the Code. Any purported assignment, transfer or
encumbrance in violation of this Section 17 shall be void and unenforceable against the Company. 
 SECTION 18. NO EMPLOYMENT
RIGHTS. 
 No provision of the Plan, nor any right or Option granted under the Plan, shall be construed to give any
person any right to become, to be treated as, or to remain an Employee. The Company and its Subsidiaries reserve the right to terminate any person’s Service at any time and for any reason, with or without notice. 

  

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 SECTION 19. DURATION AND AMENDMENTS. 

(a) Term of the Plan. The Plan, as set forth herein, shall terminate automatically at the close of business on December 7,
2014. The Plan may be terminated on any earlier date pursuant to Subsection (b) below. 
 (b) Right to Amend or
Terminate the Plan. The Board of Directors may amend the Plan at any time and from time to time. Rights and obligations under any Award granted before amendment of the Plan shall not be materially impaired by such amendment, except with consent
of the Participant. An amendment of the Plan shall be subject to the approval of the Company’s stockholders only to the extent required by applicable laws, regulations or rules. 

(c) Effect of Termination. No Awards shall be granted under the Plan after the termination thereof. The termination of the Plan
shall not affect any Award previously granted under the Plan. 
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 SECTION 20. EXECUTION. 

To record the amendment and restatement of the Plan by the Board of Directors on September 13, 2011, the Company has caused its
authorized officer to execute the same. 
  

			
	ORANGE 21 INC.
		
	By	 	 /s/ Carol A. Montgomery

		
	Name	 	 Carol A. Montgomery

		
	Title	 	 CEO

  

ORANGE 21 INC. 
 2004 STOCK INCENTIVE PLAN 

  
 -25-

 APPENDIX A 

Additional Terms of Awards to California Participants 

To the extent necessary to comply with the California Corporate Securities Law of 1968 as amended, the following additional
terms listed under items 1 through 6 below shall apply to any Award that is granted to a California Participant with a grant date that is on or after March 25, 2010 (“California Award”): 

1. With respect to a California Award issued to any California Participant who is not an officer, director, Outside Director or Consultant, such
California Award shall become exercisable, or any repurchase right in favor of the Company shall lapse, at the rate of at least 20% per year over five years from the date of grant subject to continuous Service status. 

2. The following rules shall apply to any California Award in the event of termination of the California Participant’s Service: 

 

	 	(a)	If such termination was for reasons other than death or Total and Permanent Disability or cause, the California Participant shall have at least 30 days after the date
of such termination to exercise any of his/her vested outstanding Options or SARs (but in no event later than the expiration of the term of such Option or SAR established by the Committee as of the grant date). 

 

	 	(b)	If such termination was due to death or Total and Permanent Disability, the California Participant shall have at least six months after the date of such termination to
exercise any of his/her vested outstanding Options or SARs (but in no event later than the expiration of the term of such Option or SAR established by the Committee as of the grant date). 

 

	 	(c)	Post-termination, the Company’s right to repurchase from the California Participant any vested Shares that the California Participant has acquired from a
California Award shall include the following terms: (A) the Company’s right to repurchase must be exercised within the later of six months after (i) termination of the California Participant’s Service or (ii) the date that
such Shares were purchased pursuant to an Option or SAR exercise, (B) the repurchase price shall not be less than the Fair Market Value of the Shares as of the date of termination, and (C) consideration for the repurchase shall consist of
cash or cancellation of purchase money indebtedness, and (D) such repurchase right shall lapse when no longer required under California state securities laws. 

 

	 	(d)	 Post-termination, the Company’s right to repurchase from the California Participant any unvested Shares that the California Participant has
acquired from a California Award shall include the following terms: (A) the Company’s right to repurchase must be exercised within the later of six months after: (i) termination of the California Participant’s Service or
(ii) the date that such Shares were 

  

ORANGE 21 INC. 
 2004 STOCK INCENTIVE PLAN 

  
 -1-

	 	
purchased pursuant to an Option or SAR exercise, (B) the repurchase price shall not be less than the original purchase price of the Shares, (C) consideration for the repurchase shall
consist of cash or cancellation of purchase money indebtedness and (D) such repurchase right shall lapse at the rate of at least 20% of the total Shares subject to the Award over the five year period following the date of grant subject to the
California Participant’s continuous Service status. 

 3. In the event of a stock split, reverse stock split,
stock dividend, recapitalization, combination, reclassification or other distribution of the Company’s securities without the receipt of consideration by the Company, then there shall be a proportionate adjustment of (i) the number of
Shares purchasable under each outstanding Option or SAR, (ii) the Exercise Price of each outstanding Option and SAR and (iii) the number of outstanding Shares issued under the Plan. 
 4. Shares acquired under a California Award shall carry equal voting rights as similar equity securities on all matters where such vote is permitted by applicable law. 

5. The Company shall furnish summary financial information of the Company’s financial condition and results of operations, consistent with the
requirements of applicable California regulations, at least annually to each California Participant during the period such California Participant has one or more California Awards outstanding, and in the case of a California Participant who acquired
Shares from a California Award, during the period such California Participant owns such Shares. The Company shall not be required to provide such information to those California Participants whose duties in connection with the Company assure their
access to equivalent information. The information provided does not need to be audited financial information. 
 6. Except if the requisite
super-majority approval of at least two-thirds of outstanding Company securities entitled to vote as provided in section 260.140.45(a) of Title 10 of the California Code of Regulations is obtained, at no time shall the total number of securities
issuable under this Plan exceed 30% of the Company’s then outstanding securities (measured on an as if converted basis with respect to securities convertible into Shares) as calculated under section 260.140.45 of Title 10 of the California Code
of Regulations. 
 In addition to the above items in this Appendix A, with respect to any California Participant who at one time was holding one
or more California Awards but no longer has any such outstanding California Awards, such California Participant shall be required to promptly provide the Company with written notice as soon as such California Participant no longer is holding any
Shares that were issued under a California Award. For avoidance of doubt, the obligation to provide this notice to the Company shall apply even if the California Participant is no longer providing Service and/or is no longer holding outstanding
California Awards (but is holding Shares that were issued under a California Award). The requirements of this paragraph shall no longer be applicable once the Company’s obligations under item 5 in this Appendix A are no longer applicable.

  

ORANGE 21 INC. 
 2004 STOCK INCENTIVE PLAN 

  
 -2-Amended and Restated License Agreement

 Exhibit 10.9 
 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 glasses
(“Entertainment Glasses”) used specifically in connection with entertainment media (e.g., video games, three dimensional movies and/or television, etc.) shall be excluded from the definition of “Licensed Articles” hereunder.

  

	 	•	 	 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.), prestige glasses brands such as Oliver Peoples, Giorgio Armani, Marc Jacobs and Christian Dior, 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 

  

	 	(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 [***] Licensed
Articles held in inventory by Licensee (+/- 10%) (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. 

  

	 	•	 	 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”). 

  

	 	(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). 

  

	 	•	 	 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. 

 

	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). 

  

	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 
 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 
 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). 

  

	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. 

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

											
	AGREED AND ACCEPTED:	 		 	AGREED AND ACCEPTED:
			
	ORANGE 21, INC.	 		 	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
	 		 		 		 	

 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. Oh Jackie! 
 12. Bonus 

13. Essence 
 Samples at Manufacturer:

 14. Bright Lights 
 15. Factory
Girl 
 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 : 
  

									
	ItemNumber	    	ItemDescription	  	UPC	  	Quantity	 
				
	 MJB00001
	    	 MELODIES SHOWTIME BONEW/SILVER GRAD MIR
	  	882754001539	  	 	[***]	  
	 MJB00002
	    	 MELODIES SHOWTIME- GUNMETAL/MATTE BLACK W/BLACK FADE
	  	882754001546	  	 	[***]	  
	 MJB00003
	    	 MELODIES SHOWTIME MATTE BLACK - GREY W/BLACK MIR
	  	882754001553	  	 	[***]	  
	 MJB00004
	    	 MELODIES SHOWTIME GOLD - BZ FD W/ GOLD MIR
	  	882754001560	  	 	[***]	  
	 MJB00005
	    	 MELODIES RED CARPET BLACK - BLACK FADE
	  	882754001577	  	 	[***]	  
	 MJB00006
	    	 MELODIES RED CARPET- TORTOISE - BRONZE FADE
	  	882754001584	  	 	[***]	  

									
	 MJB00007
	    	 MELODIES RED CARPET BROWN HORN - BRONZE FADE
	  	882754001591	  	 	[***]	  
	 MJB00008
	    	 MELODIES RED CARPET BONE - BRONZE FADE
	  	882754001607	  	 	[***]	  
	 MJB00009
	    	 MELODIES RED CARPET BRN/WHT HORN - BRONZE FADE
	  	882754001614	  	 	[***]	  
	 MJB00010
	    	 MELODIES RED CARPET EGGPLANT - BLACK FADE
	  	882754001621	  	 	[***]	  
	 MJB00011
	    	 MELODIES THE MJ’S BLACK - BLACK FADE
	  	882754001638	  	 	[***]	  
	 MJB00012
	    	 MELODIES THE MJ’S TORTOISE - BRONZE FADE
	  	882754001645	  	 	[***]	  
	 MJB00013
	    	 MELODIES THE MJ’S EGGPLANT - BLACK FADE
	  	882754001652	  	 	[***]	  
	 MJB00014
	    	 MELODIES THE MJ’S BROWN TORT- BRONZE FADE
	  	882754001669	  	 	[***]	  
	 MJB00015
	    	 MELODIES INCOGNITO GOLD w/ WHT- BRONZE FADE
	  	882754001676	  	 	[***]	  
	 MJB00016
	    	 MELODIES INCOGNITO SILVER- BLACK FADE
	  	882754001683	  	 	[***]	  
	 MJB00017
	    	 MELODIES INCOGNITO SHINY BLACK- GY w/ BLK MIRROR
	  	882754001690	  	 	[***]	  
	 MJB00018
	    	 MELODIES INCOGNITO TORTOISE - BRONZE w/ GLD MIR
	  	882754001706	  	 	[***]	  
	 MJB00019
	    	 MELODIES INCOGNITO OFF WHITE - BZ w/ GLD MIR
	  	882754001713	  	 	[***]	  
	 MJB00020
	    	 MELODIES INCOGNITO GOLD w/ PURPLE - PURPLE FD
	  	882754001911	  	 	[***]	  
	 MJB00021
	    	 MELODIES THE MJ’S WHITE- BRONZE FADE
	  	882754001737	  	 	[***]	  
	 MJB00022
	    	 MELODIES THE MJ’S RED - BRONZE FADE
	  	882754001744	  	 	[***]	  
	 MJB00023
	    	 MELODIES UPTOWN DARK TORT/BLACK - BLACK FADE
	  	882754002154	  	 	[***]	  
	 MJB00024
	    	 MELODIES UPTOWN SAFARI/BROWN - BRONZE FADE
	  	882754002161	  	 	[***]	  
	 MJB00025
	    	 MELODIES UPTOWN WHITE/BLACK - BLACK FADE
	  	882754002178	  	 	[***]	  
	 MJB00026
	    	 MELODIES UPTOWN RED/CHESNUT - BLACK FADE
	  	882754002185	  	 	[***]	  
	 MJB00027
	    	 MELODIES UPTOWN BLACK - BLACK FADE
	  	882754002192	  	 	[***]	  
	 MJB00028
	    	 MELODIES AKA TORTOISE/GOLD - BZw/GOLD MIR
	  	882754002208	  	 	[***]	  
	 MJB00029
	    	 MELODIES AKA GOLD/BLONDE TORT - BRONZE FADE
	  	882754002215	  	 	[***]	  
	 MJB00030
	    	 MELODIES AKA GOLD/AQUA - BLUE FADE
	  	882754002222	  	 	[***]	  
	 MJB00031
	    	 MELODIES AKA RED/GOLD - BRONZE FADE
	  	882754002239	  	 	[***]	  
	 MJB00032
	    	 MELODIES AKA BLACK/GOLD - BLACK FADE
	  	882754002246	  	 	[***]	  
	 MJB00033
	    	 MELODIES PAPARAZZI BLACK - BLACK FADE
	  	882754002253	  	 	[***]	  
	 MJB00034
	    	 MELODIES PAPARAZZI SUNRISE GRAD - BRONZE FADE
	  	882754002260	  	 	[***]	  
	 MJB00035
	    	 MELODIES PAPARAZZI SAFARI - AMBER FADE
	  	882754002277	  	 	[***]	  
	 MJB00036
	    	 MELODIES PAPARAZZI - ROSE GRADIENT - BRONZE FADE
	  	882754002284	  	 	[***]	  
	 MJB00037
	    	 MELODIES PAPARAZZI CRYSTAL - BLACK FADE
	  	882754002291	  	 	[***]	  
	 MJB00038
	    	 MELODIES ENCORE ROSE GOLD - BRONZEw/GOLD MIRROR
	  	882754003373	  	 	[***]	  
	 MJB00039
	    	 MELODIES ENCORE SILVER - GREY w/BLK MIRROR
	  	882754003380	  	 	[***]	  
	 MJB00040
	    	 MELODIES BACKSTAGE BLACK - BLACK FADE
	  	882754002307	  	 	[***]	  
	 MJB00041
	    	 MELODIES BACKSTAGE WHITE - BRONZE FADE
	  	882754002314	  	 	[***]	  
	 MJB00042
	    	 MELODIES BACKSTAGE RED - BRONZE FADE
	  	882754002321	  	 	[***]	  
	 MJB00043
	    	 MELODIES BACKSTAGE DARK TORT - BRONZE FD
	  	882754002338	  	 	[***]	  
	 MJB00044
	    	 MELODIES BACKSTAGE CHOCOLATE FADE - BRONZE FADE
	  	882754002345	  	 	[***]	  
	 MJB00045
	    	 MELODIES BROADWAY BLACK - BLACK FADE
	  	882754002352	  	 	[***]	  
	 MJB00046
	    	 MELODIES BROADWAY CHESTNUT - BRONZE FADE
	  	882754002369	  	 	[***]	  
	 MJB00047
	    	 MELODIES BROADWAY CRYSTAL - BLACK FADE
	  	882754002376	  	 	[***]	  
	 MJB00048
	    	 MELODIES BROADWAY PURPLE GRADIENT - BLACK FD
	  	882754002383	  	 	[***]	  
	 MJB00049
	    	 MELODIES BROADWAY BRONZE GRADIENT - BRONZE FADE
	  	882754002390	  	 	[***]	  
	 MJB00050
	    	 MELODIES RED CARPET RED W/TORT-BZ FADE
	  	882754003922	  	 	[***]	  
	 MJB00051
	    	 MELODIES BROADWAY BROWN W/TORT-BZ FADE
	  	882754003939	  	 	[***]	  
	 MJB00052
	    	 MELODIES OH JACKIE! OBSIDIAN - BLACK FADE
	  	882754003618	  	 	[***]	  
	 MJB00053
	    	 MELODIES OH JACKIE! DARK TORT - BRONZE FADE
	  	882754003625	  	 	[***]	  
	 MJB00054
	    	 MELODIES OH JACKIE! CHARCOAL FADE - BLACK FADE
	  	882754003632	  	 	[***]	  
	 MJB00055
	    	 MELODIES OH JACKIE! CRIMSON FADE - BRONZE FADE
	  	882754003649	  	 	[***]	  
	 MJB00056
	    	 MELODIES OH JACKIE! HONEY - BRONZE FADE
	  	882754003656	  	 	[***]	  

									
	 MJB00057
	    	 MELODIES BONUS OBSIDIAN - BLACK FADE
	  	882754003663	  	 	[***]	  
	 MJB00058
	    	 MELODIES BONUS ROUGE - BLACK FADE
	  	882754003670	  	 	[***]	  
	 MJB00059
	    	 MELODIES BONUS DARK TORT - BRONZE FADE
	  	882754003687	  	 	[***]	  
	 MJB00060
	    	 MELODIES BONUS VIOLET - BLACK FADE
	  	882754003694	  	 	[***]	  
	 MJB00061
	    	 MELODIES BONUS PEACH - ROSE FADE
	  	882754003700	  	 	[***]	  
	 MJB00071
	    	 MELODIES ESSENCE OBSIDIAN - BLACK FADE
	  	882754003809	  	 	[***]	  
	 MJB00072
	    	 MELODIES ESSENCE CHOCOLATE SHIMMER - BRONZE FADE
	  	882754003816	  	 	[***]	  
	 MJB00073
	    	 MELODIES ESSENCE SMOKEY SHIMMER - BLACK FADE
	  	882754003823	  	 	[***]	  
	 MJB00074
	    	 MELODIES ESSENCE BROWN FADE - MOCHA FADE
	  	882754003830	  	 	[***]	  
	 MJB00075
	    	 MELODIES ESSENCE ROSE FADE - VIOLET FADE
	  	882754003847	  	 	[***]	  
	 MJB00081
	    	 MELODIES PAPARAZZI MIDNIGHT FADE - BLACK FADE
	  	882754003908	  	 	[***]	  
	 MJB00082
	    	 MELODIES PAPARAZZI SPRINGTIME FADE - BRONZE FADE
	  	882754003915	  	 	[***]	  
	 MJB00057
	    	 BONUS OBSIDIAN - BLACK FADE
	  		  	 	[***]	  
	 MJB00058
	    	 BONUS ROUGE - BLACK FADE
	  		  	 	[***]	  
	 MJB00059
	    	 BONUS DARK TORT - BRONZE FADE
	  		  	 	[***]	  
	 MJB00060
	    	 BONUS VIOLET - BLACK FADE
	  		  	 	[***]	  
	 MJB00061
	    	 BONUS PEACH - ROSE FADE
	  		  	 	[***]	  
	 MJB00066
	    	 BRIGHTLIGHTS SILVER - BLACK FADE
	  		  	 	[***]	  
	 MJB00067
	    	 BRIGHTLIGHTS SILVER - BLUE FADE W/SILVER MIRROR
	  		  	 	[***]	  
	 MJB00068
	    	 BRIGHTLIGHTS SILVER - RED FADE W/SILVER MIRROR
	  		  	 	[***]	  
	 MJB00069
	    	 BRIGHTLIGHTS GOLD - BRONZE FADE
	  		  	 	[***]	  
	 MJB00070
	    	 BRIGHTLIGHTS GOLD - PURPLE FADE
	  		  	 	[***]	  
	 MJB00071
	    	 ESSENCE OBSIDIAN - BLACK FADE
	  		  	 	[***]	  
	 MJB00072
	    	 ESSENCE CHOCOLATE SHIMMER - BRONZE FADE
	  		  	 	[***]	  
	 MJB00073
	    	 ESSENCE SMOKEY SHIMMER - BLACK FADE
	  		  	 	[***]	  
	 MJB00074
	    	 ESSENCE BROWN FADE - MOCHA FADE
	  		  	 	[***]	  
	 MJB00075
	    	 ESSENCE ROSE FADE - VIOLET FADE
	  		  	 	[***]	  
	 MJB00076
	    	 FACTORY GIRL SILVER/LAVENDER - PURPLE FADE
	  		  	 	[***]	  
	 MJB00077
	    	 FACTORY GIRL SILVER/TEAL - BLACK FADE
	  		  	 	[***]	  
	 MJB00078
	    	 FACTORY GIRL GOLD/IVORY - BRONZE FADE
	  		  	 	[***]	  
	 MJB00079
	    	 FACTORY GIRL GOLD/ORANGE - BRONZE FADE
	  		  	 	[***]	  
	 MJB00080
	    	 FACTORY GIRL BLACK/GOLD - BLACK FADE
	  		  	 	[***]	  
	 MJB00081
	    	 PAPARAZZI MIDNIGHT FADE - BLACK FADE
	  		  	 	[***]	  
	 MJB00082
	    	 PAPARAZZI SPRINGTIME FADE - BRONZE FADE
	  		  	 	[***]	  
		    		  		  	 	[***]	  

 Exhibit B 
 THIS PROMISSORY NOTE IS SUBORDINATE TO CERTAIN OBLIGATIONS OF THE COMPANY AS DESCRIBED IN THE BFI LOAN DOCUMENTS (DEFINED HEREIN) AND SUBJECT TO THAT CERTAIN DEBT SUBORDINATION AGREEMENT DATED JULY
18, 2011 AMONG BFI BUSINESS FINANCE AND THE HOLDER. 
 THIS PROMISSORY NOTE HAS BEEN ACQUIRED FOR INVESTMENT AND HAS NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, OR QUALIFIED UNDER ANY STATE SECURITIES LAWS. THIS NOTE MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR QUALIFICATION OR AN EXEMPTION THEREFROM UNDER SAID ACT AND ANY APPLICABLE
STATE SECURITIES LAWS. 
 PROMISSORY NOTE 

 

			
	$500,000	  	July 18, 2011
		  	San Diego, California

 FOR VALUE RECEIVED, Orange 21 North America Inc., a California corporation (the
“Company”), promises to pay to the order of Rose Colored Glasses LLC, or its registered assigns (“Holder”), the principal sum of Five Hundred Thousand Dollars ($500,000) on March 31, 2012. The Company shall
have the right to prepay all amounts owed under this Note in whole or in part at any time without any prepayment premium or fee. 
 26. Definitions. For purposes of this Promissory Note (this “Note”), the following terms shall have the following meanings: 

“BFI Loan Documents” shall mean the Loan and Security Agreement, dated as of February 26, 2007, between the Company
and BFI Business Finance, as modified by the First Modification to Loan and Security Agreement, dated as of December 7, 2007, as further modified by the Second Modification to Loan and Security Agreement dated as of February 12, 2008, and
as further modified by the Third Modification to Loan and Security Agreement dated as of June 23, 2008, and the other Loan Documents as defined therein, in each case as amended, restated, supplemented, refinanced, replaced, or otherwise
modified from time to time. 
 “Business Day” means any day which is not a Saturday or Sunday or a legal
holiday on which national banks are authorized or required to be closed. 
 “Control” shall mean the
possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a person, whether through the ownership of voting securities, by contract or otherwise, and the terms “Controlling” and
“Controlled” (and the lower-case versions of the same) shall have meanings correlative thereto. 
 “Costa
Brava” means Costa Brava Partnership III, L.P., a Delaware limited partnership. 

  
 -14-

 “Costa Brava Debt” means the indebtedness of the Company under (a) the
Promissory Note, dated as of December 20, 2010, by the Company in favor of Costa Brava in the original principal amount of $7,000,000 and (b) the Promissory Note, dated as of June 21, 2011, by the Company in favor of Costa Brava in
the original principal amount of $6,000,000. 
 “Governmental Authority” shall mean any federal, state, local
or other governmental department, commission, board, bureau, agency or other instrumentality or authority, domestic or foreign, exercising executive, legislative, judicial, regulatory or administrative authority or functions of or pertaining to
government. 
 “Material Adverse Effect” shall mean any event, matter, condition or circumstance which
(i) has or would reasonably be expected to have a material adverse effect on the business, properties, operations, condition (financial or otherwise) or prospects of the Company and its Subsidiaries, taken as a whole; (ii) would materially
impair the ability of the Company or any other Person to perform or observe their respective obligations under or in respect of this Note; (iii) would materially impair the rights and remedies of Holder under this Note, or (iv) affects the
legality, validity, binding effect or enforceability of this Note. 
 “Organic Document” means, relative to any
Person, its articles or certificate of incorporation, or certificate of limited partnership or formation, its bylaws, partnership or operating agreement or other organizational documents, and all stockholders agreements, voting trusts and similar
arrangements applicable to any of its capital stock, partnership interests or other ownership interests. 

“Person” shall mean an individual, a partnership, a corporation, a limited liability company, an association, a joint
stock company, a trust, a joint venture, an unincorporated organization and a governmental entity or any department, agency or political subdivision thereof. 
 “Subsidiary” shall mean, with respect to any Person (herein referred to as the “parent”), any corporation, limited liability company, partnership, association or other business
entity (i) of which securities or other ownership interests representing more than 50% of the equity or more than 50% of the ordinary voting power or more than 50% of the general partnership interests are, at the time any determination is being
made, owned, controlled or held by the parent, or (ii) that is, at any time any determination is made, otherwise Controlled by, the parent or one or more Subsidiaries of the parent and one or more Subsidiaries of the parent. 

27. Payments. 
 a. Form of Payment. All payments shall be in lawful money of the United States of America and shall be sent to the address provided for Holder as set forth in this Note; provided that Holder
may elect to receive a payment of cash via wire transfer of immediately available funds by providing the Company with prior written notice setting out such request and Holder’s wire transfer instructions. Whenever any payment to be made shall
otherwise be due on a day which is not a Business Day, such payment shall be made on the immediately succeeding Business Day. 

  
 -15-

 b. No Set-Off. The Company agrees to make all payments under this Note without
set-off or deduction and regardless of any counterclaim or defense. 
 28. Representations and Warranties. The Company
hereby makes the following representations and warranties to Holder: 
 a. Organization, Good Standing and Qualification.
The Company is duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation, and has all requisite power and authority to execute, deliver and perform its obligations under this Note. Each of the
Company and its Subsidiaries is qualified to do business and is in good standing in each jurisdiction in which the failure so to qualify or be in good standing would have a Material Adverse Effect, and has all requisite power and authority to own
its assets and carry on its business. 
 b. Corporate Power and Authorization; Consents. The execution, delivery and
performance by the Company of this Note have been duly authorized by all necessary action of the Company and do not and will not (i) contravene the terms of the Company’s Organic Documents; (ii) result in a breach of, or constitute a
default (or an event that with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any lease,
instrument, contract or other agreement to which the Company or any of its Subsidiaries are party or by which they or their properties may be bound or affected; (iii) necessitate the consent, approval, order or authorization of, or
registration, qualification, designation, declaration or filing with, any Governmental Authority or any third party; or (iv) violate any provision of any law, rule, regulation, order, judgment, decree or the like binding on or affecting the
Company, except in the case of each of clauses (ii), (iii) and (iv), such as would not result in a Material Adverse Effect. 
 c. Enforceability. This Note constitutes the legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms. 

d. Litigation. Except as set forth in the public filings of the Company or its affiliates, including, without limitation, all
facts disclosed in Orange 21 Inc.’s Form 10-K for the period ending December 31, 2010 (filed March 25, 2011), Form 10-Q for the period ending March 31, 2011 (filed May 13, 2011), and Forms 8-K filed subsequent to the
aforementioned Form 10-K, (i) there is no action, suit, proceeding or investigation pending or, to the knowledge of Company and its Subsidiaries, currently threatened against the Company and its Subsidiaries which questions the validity of this
Note or any related document or the right of the Company and its Subsidiaries to enter into such agreements, or to consummate the transactions contemplated hereby or thereby, or which would reasonably be expected to result, either individually or in
the aggregate, in any material adverse effect on the business, properties, operations, condition (financial or otherwise) or prospects of the Company and its Subsidiaries, taken as a whole, nor, to the knowledge of the Company, is there any
reasonable basis for the foregoing, (ii) the Company and its Subsidiaries are not parties or subject to the provisions of any order, writ, injunction, judgment or decree of any court or government agency or instrumentality which would
reasonably be expected to have a material adverse effect on the business, properties, operations, condition (financial or otherwise) or prospects of the Company 

  
 -16-

 
and its Subsidiaries, taken as a whole, and (iii) there is no material action, suit, proceeding or investigation by Company and its Subsidiaries currently pending or which Company and its
Subsidiaries intend to initiate. 
 29. Covenants. 

a. Notice of Defaults and Events of Defaults. The Company shall provide to Holder, as soon as possible and in any event within
three (3) days after the occurrence thereof, written notice of any acceleration the Costa Brava Debt prior to its stated maturity. 
 b. Distributions. The Company shall not declare or pay any dividends or make any distribution to Costa Brava of any kind on the Company’s capital stock, or purchase, redeem or otherwise
acquire, directly or indirectly, any shares of the Company’s capital stock from Costa Brava, or any rights to acquire shares of capital stock of the Company from Costa Brava. 

c. Transactions with Affiliates. The Company shall not directly or indirectly enter into or permit to exist any material
transaction with any of its affiliates except for transactions that are in the ordinary course of the business of the Company or are on terms no less favorable to the Company than would be obtained in arm’s length transaction with a
non-affiliate; provided, however, this Section 4(c) shall not prohibit the Company from incurring any indebtedness from and in favor of Costa Brava or any other affiliate of the Company, so long as such indebtedness is incurred on a pari passu
(or lesser priority) basis in substantially the form of the Costa Brava Debt in effect on the date hereof. 
 30.
Default. 
 a. Events of Default. For purposes of this Note, any of the following events which shall occur shall
constitute an “Event of Default”: 
 (i) any indebtedness under this Note is not paid when and as the same
shall become due and payable, whether at maturity, by acceleration, five (5) days following notice of prepayment or otherwise; 
 (ii) default shall occur in the observance or performance of (A) any covenant, obligation or agreement of the Company contained in Section 4, or (B) any other provision of this Note, and,
in the case of this clause (B), such default shall continue uncured for a period of ten (10) days; 
 (iii) any
representation, warranty or certification made herein by or on behalf of the Company or any of its Subsidiaries shall prove to have been false or incorrect in any material respect on the date or dates as of which made; 

(iv) the Company shall (A) apply for or consent to the appointment of a receiver, trustee, custodian or liquidator of itself or any
part of its property, (B) become subject to the appointment of a receiver, trustee, custodian or liquidator for itself or any part of its 

  
 -17-

 
property, (C) make an assignment for the benefit of creditors, (D) fail generally, become unable or admit in writing to its inability to pay its debts as they become due,
(E) institute any proceedings under the United States Bankruptcy Code or any other federal or state bankruptcy, reorganization, receivership, insolvency or other similar law affecting the rights of creditors generally, or file a petition or
answer seeking reorganization or an arrangement with creditors to take advantage of any insolvency law, or file an answer admitting the material allegations of a bankruptcy, reorganization or insolvency petition filed against it, or (F) become
subject to any involuntary proceedings under the United States Bankruptcy Code or any other federal or state bankruptcy, reorganization, receivership, insolvency or other similar law affecting the rights of creditors generally; 

(v) The Company shall default in the observance or performance of any agreement or condition relating to any Costa Brava Debt or
contained in any instrument or agreement evidencing or relating thereto, the effect of which default or other event or condition is to cause, with the giving of notice, if required, the Costa Brava Debt to become due prior to its stated maturity; or
any Costa Brava Debt shall be declared to be due and payable prior to its stated maturity. 
 b. Consequences of Events of
Default. If any Event of Default shall occur for any reason, whether voluntary or involuntary, and be continuing, Holder may, upon notice or demand, declare the outstanding obligations under this Note to be due and payable, whereupon the
outstanding obligations under this Note shall be and become immediately due and payable, and the Company shall immediately pay to Holder all such obligations. Upon the occurrence of (A) an Event of Default under Section 5(a)(v) or
(B) an actual or deemed entry of an order for relief with respect to the Company under the United States Bankruptcy Code, then all obligations under this Note shall automatically be due immediately without notice of any kind. Holder shall also
have any other rights which Holder may have been afforded under any contract or agreement at any time and any other rights which Holder may have pursuant to applicable law. 
 31. Default 
 a. For purposes of this Note, a “Default”
shall have occurred if any indebtedness under this Note is not paid when and as the same shall become due and payable. If any Default shall occur for any reason, Holder shall have all rights which Holder may have been afforded under any contract or
agreement at any time and any other rights which Holder may have pursuant to applicable law. 
 32. Waiver of Jury Trial.
TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW WHICH CANNOT BE WAIVED, THE COMPANY (BY ITS EXECUTION HEREOF) AND HOLDER (BY ITS ACCEPTANCE OF THIS NOTE) WAIVES AND COVENANTS THAT IT WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT OR OTHERWISE) ANY
RIGHT TO TRIAL BY JURY IN ANY FORUM IN RESPECT OF ANY ISSUE OR ACTION ARISING OUT OF OR BASED UPON OR RELATING TO THIS NOTE OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE TRANSACTIONS

  
 -18-

 
CONTEMPLATED HEREBY, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING. 
 33. Governing Law. This Note shall be deemed to be a contract made under the laws of the State of New York and for all purposes shall be governed by, construed under, and enforced in accordance
with the laws of the State of New York. 
 34. Amendment and Waiver. Any term of this Note may be amended and the
observance of any term of this Note may be waived (either generally or in a particular instance and either retroactively or prospectively), only with the written consent of the Company and Holder. 

35. Notices. Any notice or other communication or payment in connection with this Note may be made and is deemed to be given as
follows: (i) if delivered in person or by courier, on the date when it is delivered; (ii) if by facsimile, when received at the correct number (proof of which shall be an original facsimile transmission confirmation slip or equivalent); or
(iii) if sent by certified or registered mail or the equivalent (return receipt requested), on the date such mail is delivered, unless the date of that delivery is not a Business Day or that communication is delivered on a Business Day but
after the close of business on such Business Day in which case such communication shall be deemed given and effective on the first following Business Day. Any such notice or communication given pursuant to this Note shall be addressed to the
intended recipient at its address or number (which may be changed by either party at any time) specified as follows: 
  

			
	If to the Company:	  	 Orange 21 North America, Inc.

2070 Las Palmas Drive
 Carlsbad, CA
92011
 Facsimile No.: (760) 804-8420

Attention: Chief Executive Officer

		
	With a copy to:	  	 Sheppard, Mullin, Richter & Hampton LLP
 12275 El Camino Real, Suite 200
 San Diego, CA 92130-2006

Facsimile No.: (858) 509-3691
 Attention: John
Hentrich, Esq.

		
	If to Holder:	  	 Rose Colored Glasses LLC
 c/o
Gelfand Rennert & Feldman
 360 Hamilton Ave., Suite 100
 White Plains, NY 10601
 Facsimile No.: (212) 307-8082

Attention: Ron Nash

  
 -19-

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

Facsimile No.: (212) 554-0444
 Attention: Kenneth
R. Meiselas, Esq.

 36. Assignment. The provisions of this Note shall be binding upon and inure to the benefit of each
of the Company and Holder and their respective successors and assigns, provided that (a) the Company shall not have the right to assign its rights and obligations hereunder or any interest herein and (b) Holder shall have the right
to assign, endorse or transfer this Note and/or its rights and obligations hereunder or any interest herein in whole, but not in part. 
 37. Registered Obligation. The Company shall establish and maintain a record of ownership (the “Register”) in which it will register by book entry the interest of the initial
Holder and of each subsequent assignee in this Note, and in the right to receive any payments hereunder, and any assignment of any such interest. The Company shall make appropriate entries in the Register to reflect any assignment promptly following
receipt of written notice from the assignor of such assignment. Notwithstanding anything herein to the contrary, this Note is intended to be treated as a registered obligation for federal income tax purposes and the right, title, and interest of
Holder and its assignees in and to payments under this Note shall be transferable only upon notation of such transfer in the Register. This Section shall be construed so that this Note is at all times maintained in “registered form”
within the meaning of Sections 163(f), 871(h)(2) and 881(c)(2) of the Internal Revenue Code and any related regulations (or any successor provisions of the Code or such regulations). 

38. Entire Agreement. This Note contains the entire understanding of the parties with respect to the subject matter hereof and
supersedes all prior agreements, understandings, discussions and representations, oral or written, with respect to such matters, which the parties acknowledge have been merged into this Note. 

39. Subordination. This Note and each of Holder’s rights and privileges hereunder is expressly subject to the terms of that
certain Debt Subordination Agreement by and between BFI Business Finance and Holder dated as of July 18, 2011 (the “BFI Subordination Agreement”), as amended or modified from time to time. To the extent the BFI Loan Documents
are at any time refinanced or replaced with any financing from BFI Business Finance or any other lender, this Note and each of Holder’s rights and privileges shall be subordinated to the obligations owed by the Company to such lender in the
manner provided for in the BFI Subordination Agreement, mutatis mutandi, and such lender shall be an intended third party beneficiary of the provisions of this Section 14. 

  
 -20-

 [Remainder of Page Intentionally Left Blank] 

  
 -21-

 IN WITNESS WHEREOF, the each of the undersigned has caused this Note to be duly executed by
its officers, thereunto duly authorized as of the date first above written. 
  

			
	THE COMPANY:
	
	ORANGE 21 NORTH AMERICA INC.
		
	By:	 	 /s/ Carol Mongtomery

	Name:	 	 Carol Montgomery

	Title:	 	 Chief Executive Officer

	
	HOLDER:
	
	ROSE COLORED GLASSES LLC
		
	By:	 	 /s/ Mary J. Blige

	Name:	 	 Mary J. Blige

	Title:	 	 Member

		
	By:	 	 /s/ Tinted Partners LLC

	Name:	 	 Tinted Partners LLC

	Title:	 	 Member

  
 -22-

 Exhibit C 
 Approved Distribution Channels 
 Brick and Mortar – Approved 

[***] 
 [***] 

[***] 
 [***] 

[***] 
 [***] 

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

 [***] 
 [***] 

[***] 
 Multimedia – Approved

 [***] 
 [***] 

  
 -23-

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

[***] 
 [***] 

[***] 
 [***] 

[***] 
 [***] 

[***] 
 [***] 

On-Line – Non Approved 
 [***]

 [***] 
 [***] 

  
 -24-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00196-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00196-of-00352.parquet"}]]