Exhibit 10.1


 


Execution Version


 


REGISTRATION RIGHTS AGREEMENT


 


This REGISTRATION RIGHTS AGREEMENT (this
“Agreement”) is made as of August 15, 2014, by and between Sequential Brands Group, Inc., a Delaware corporation
(the “Company”), and Carlyle Equity Opportunity GP, L.P. (the “Representative”), a Delaware
limited partnership, on behalf of, and for the benefit of, the former stockholders and optionholders and each of their permitted
transferees (the “Stockholders”) of Galaxy Brand Holdings, Inc. (“Galaxy”).


 


RECITALS


 


WHEREAS, the Company, Galaxy, the Representative
and certain other parties have entered into that certain Agreement and Plan of Merger, dated as of June 24, 2014 (the “Merger
Agreement”), pursuant to which the Stockholders received, among other consideration, Parent Shares and the Warrants (each
as defined in the Merger Agreement); and


 


WHEREAS, in connection with the execution
and delivery of the Merger Agreement and the consummation of the transactions contemplated thereby, the Company has agreed to grant
the Stockholders certain registration rights as set forth below.


 


NOW, THEREFORE, in consideration of the
foregoing recitals, the mutual covenants and agreements herein contained, and intending to be legally bound hereby, the parties
agree as follows:


 


AGREEMENT


 


ARTICLE
I


DEFINITIONS


 


Section
1.1           Certain Definitions. As used in this Agreement,
capitalized terms not otherwise defined herein shall have the meanings ascribed to them below:


 


“Business Day” means any
day that is not a Saturday, a Sunday or other day on which banks are required or authorized by law to be closed in The City of
New York.


 


“Common Stock” means the
common stock, par value $.001 per share, of the Company, and any equity securities issued or issuable in exchange for or with respect
to the Common Stock by way of a stock dividend, stock split or combination of shares or in connection with a reclassification,
recapitalization, merger, consolidation or other reorganization or otherwise.


 


“Common Stock Equivalent”
means all options, warrants (including the Warrants) and other securities convertible into, or exchangeable or exercisable for
(at any time or upon the occurrence of any event or contingency and without regard to any vesting or other conditions to which
such securities may be subject) Common Stock.


 


“Exchange Act” means the
Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.


 




    	 



    	 



    

 


“FINRA” means the Financial
Industry Regulatory Authority, Inc.


 


“Holder” or “Holders”
means the Stockholders and any Person who shall acquire and hold Registrable Securities in accordance with the terms of this Agreement.


 


“Issuer Free Writing Prospectus”
means an issuer free writing prospectus, as defined in Rule 433 under the Securities Act, relating to an offer of Registrable
Securities.


 


“Person” means any individual,
corporation, partnership, limited liability company, limited liability partnership, syndicate, person, trust, association, organization
or other entity or any governmental or regulatory body or other agency or authority or political subdivision thereof, including
any successor, by merger or otherwise, of any of the foregoing.


 


“Registrable Securities”
means (i) the shares of Common Stock issued by the Company as consideration pursuant to the Merger Agreement, (ii) the Warrants
and (iii) the shares of Common Stock issuable from time to time upon the exercise of the Warrants. Any particular Registrable Securities
shall cease to be Registrable Securities (A) when a registration statement with respect to the sale of such securities shall
have been declared effective under the Securities Act and such securities shall have been disposed of in accordance with such registration
statement, (B) during the period that such securities shall be eligible to be resold to the public without any volume or manner
of sale restrictions pursuant to Rule 144 (or any successor provision) under the Securities Act or (C) when such securities
shall cease to be outstanding.


 


“Registration Expenses”
means all fees and expenses incurred in connection with the Company’s performance of or compliance with the provisions of
Article II, including: (i) all registration, listing, qualification and filing fees (including FINRA filing fees); (ii) fees
and expenses of compliance with state securities or “blue sky” laws (including counsel fees in connection with the
preparation of a blue sky and legal investment survey and FINRA filings); (iii) printing and copying expenses; (iv) messenger
and delivery expenses; (v) expenses incurred in connection with any road show; (vi) fees and disbursements of counsel
for the Company; (vii) with respect to each registration, the fees and disbursements of one counsel for the selling Holder(s)
selected by the Representative, in the case of a registration pursuant to Section 2.1, and selected by the underwriter, in
the case of a registration pursuant to Section 2.2; (viii) fees and disbursements of independent public accountants,
including the expenses of any audit or “cold comfort” letter, and fees and expenses of other persons, including special
experts, retained by the Company; (ix) underwriter fees, excluding discounts and commissions, and any other expenses which
are customarily borne by the issuer or seller of securities in a public equity offering; and (x) all internal expenses of
the Company (including all salaries and expenses of officers and employees performing legal or accounting duties).


 


“SEC” means the Securities
and Exchange Commission.


 


“Securities Act” means
the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.


 




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“Warrants” means those
certain warrants, issued in connection with the Merger Agreement, to acquire up to, in the aggregate, 3,000,000 shares of Common
Stock, upon certain terms and subject to the conditions set forth thereon.


 


ARTICLE
II


REGISTRATION
RIGHTS


 


Section
2.1           Demand Registrations.


 


(a)          (i)          Subject
to Section 2.1(c), at any time or from time to time after the first date on which the Warrants have been exercised, the Representative,
on behalf of the Holders, or a group of Holders owning at least 50% of the remaining Registrable Securities, shall have the right
to require the Company to file a registration statement under the Securities Act covering such aggregate number of Registrable
Securities that have an aggregate anticipated offering price of at least $10,000,000 (based on the market price of the Common Stock
as of the date of the Demand Registration Request), by delivering a written request therefor to the Company specifying the number
of Registrable Securities to be included in such registration by such Holders and the intended method of distribution thereof.
Any such request by the Representative pursuant to this Section 2.1(a)(i) is referred to as a “Demand Registration
Request,” the registration so requested is referred to as a “Demand Registration.” As promptly as
practicable, but no later than 10 days after receipt of a Demand Registration Request, the Company shall give written notice (a
“Demand Exercise Notice”) of such Demand Registration Request to the Representative, and the Company shall distribute
such Demand Exercise Notice to all Holders of record of Registrable Securities.


 


(ii)         The
Company, subject to Sections 2.3 and 2.6, shall include in a Demand Registration the Registrable Securities of any Holder
of Registrable Securities that shall have made a written request to the Company within the time limits specified below for inclusion
in such registration (the “Participating Holders”). Any such request from the Holders must be delivered to the
Company within 10 Business Days after the receipt of the Demand Exercise Notice and must specify the maximum number of Registrable
Securities intended to be disposed of by such Holders.


 


(iii)        The
Company, as expeditiously as possible but subject to Section 2.1(c), shall use its reasonable best efforts to effect such
registration under the Securities Act of the Registrable Securities that the Company has been so requested to register for distribution
in accordance with such intended method of distribution.


 


(b)          Registrations
under this Section 2.1 shall be on such appropriate registration form of the SEC for the disposition of such Registrable Securities
in accordance with the intended method of disposition thereof, which form shall be selected by the Company and shall be reasonably
acceptable to the Representative.


 


(c)          The
Demand Registration rights granted in Section 2.1(a) to the Holders are subject to the following limitations:


 




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(i)         the
Company shall not be required to cause a registration pursuant to Section 2.1(a) to be filed within 45 days or to be declared
effective within a period of 90 days after the effective date of any other registration statement of the Company filed pursuant
to the Securities Act for which piggyback rights were available pursuant to Section 2.2 and for which a majority of the Piggyback
Shares requested to be included in such registration have been included;


 


(ii)        if,
in the opinion of counsel to the Company, any registration of Registrable Securities would require disclosure of information not
otherwise then required by law to be publicly disclosed and, in the good faith judgment of the board of directors of the Company,
such disclosure is reasonably likely to adversely affect any material financing, acquisition, corporate reorganization or merger
or other material transaction or event involving the Company or otherwise have a material adverse effect on the Company (a “Valid
Business Reason”), the Company may postpone or withdraw a filing of a registration statement relating to a Demand Registration
Request until such Valid Business Reason no longer exists, but in no event shall the Company avail itself of such right for more
than (A) 45 days after receipt of a Demand Registration Request or (B) 90 days, in the aggregate, in any period of 365 consecutive
days (such period of postponement or withdrawal under this clause (ii), the “Postponement Period”); and
the Company shall give written notice of its determination to postpone or withdraw a registration statement and of the fact that
the Valid Business Reason for such postponement or withdrawal no longer exists, in each case, promptly after the occurrence thereof;
and


 


(iii)       the
Company shall not be obligated to effect more than three Demand Registrations under Section 2.1(a) for the Holders.


 


If the Company shall give any notice of
postponement or withdrawal of any registration statement pursuant to clause (ii) above, the Company shall not register any
equity security of the Company during the period of postponement or withdrawal. Each Holder of Registrable Securities agrees that,
upon receipt of any written notice from the Company that the Company has determined to withdraw any registration statement pursuant
to clause (ii) above, such Holder will discontinue its disposition of Registrable Securities pursuant to such registration
statement. If the Company shall have withdrawn or prematurely terminated a registration statement filed under Section 2.1(a)(i),
the Company shall not be considered to have effected an effective registration for the purposes of this Agreement until the Company
shall have filed a new registration statement covering the Registrable Securities covered by the withdrawn registration statement
and such registration statement shall have been declared effective and shall not have been withdrawn. If the Company shall give
any notice of withdrawal or postponement of a registration statement, at such time as the Valid Business Reason that caused such
withdrawal or postponement no longer exists (but in no event more than 45 days after the date of the postponement or withdrawal),
the Company shall use its reasonable best efforts to effect the registration under the Securities Act of the Registrable Securities
covered by the withdrawn or postponed registration statement in accordance with this Section 2.1.


 


(d)          The
Company, subject to Sections 2.3 and 2.6, may elect to include in any registration statement and offering made pursuant to
Section 2.1(a)(i), (i) authorized but unissued shares of Common Stock or shares of Common Stock held by the Company as
treasury shares and (ii) any other shares of Common Stock that are requested to be included in such registration pursuant
to the exercise of piggyback rights granted by the Company that are not inconsistent with or (except to the extent approved by
the board of directors of the Company, which approval includes the affirmative vote of the nominee of Carlyle Galaxy Holdings,
L.P.) superior to the rights granted in, or otherwise conflict with the terms of, this Agreement (“Additional Piggyback
Rights”); provided, however, that such inclusion shall be permitted only to the extent that it is pursuant
to and subject to the terms of the underwriting agreement or arrangements, if any, entered into by the Participating Holders and
does not materially impact the ability of the Participating Holders to sell thereunder.


 




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(e)          A
Holder may withdraw its Registrable Securities from a Demand Registration at any time. If all such Holders do so, the Company shall
cease all efforts to secure registration and such registration nonetheless shall be deemed a Demand Registration for purposes of
this Section 2.1 unless (i) the withdrawal is made following withdrawal or postponement of such registration by the Company
pursuant to a Valid Business Reason as contemplated by Section 2.1(c), (ii) the withdrawal is based on the reasonable
determination of the Holders who requested such registration that there has been, since the date of the Demand Registration Request,
a material adverse change in the business or prospects of the Company or (iii) the Holders who requested such registration
shall have paid or reimbursed the Company for all of the reasonable out-of-pocket fees and expenses incurred by the Company in
connection with the withdrawn registration.


 


(f)          A
Demand Registration shall not be deemed to have been effected and shall not count as such (i) unless a registration statement
with respect thereto has become effective and has remained effective for a period of at least 180 days or such shorter period during
which all Registrable Securities covered by such Registration Statement have been sold or withdrawn, or, if such Registration Statement
relates to an underwritten offering, such longer period as, in the opinion of counsel for the underwriter(s), is required by law
for delivery of a prospectus in connection with the sale of Registrable Securities by an underwriter or dealer, (ii) if, after
the registration statement with respect thereto has become effective, it becomes subject to any stop order, injunction or other
order or requirement of the SEC or other governmental agency or court for any reason, (iii) if it is withdrawn by the Company
pursuant to a Valid Business Reason as contemplated by Section 2.1(c) or (iv) if the conditions to closing specified
in the purchase agreement or underwriting agreement entered into in connection with such Demand Registration are not satisfied,
other than solely by reason of some act or omission of the Participating Holders.


 


(g)          In
connection with any Demand Registration, the Company may designate the lead managing underwriter in connection with such registration
and each other managing underwriter for such registration, provided, that, in each case, each such underwriter is reasonably
satisfactory to the Representative.


 




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Section
2.2           Piggyback Registrations.


 


(a)          If,
at any time, the Company proposes or is required to register any of its equity securities under the Securities Act (other than
pursuant to (i) registrations on Form S-8 or any similar form(s) solely for registration of securities in connection with
an employee benefit plan or dividend reinvestment plan, (ii) registrations on Form S-4 or any similar form(s) solely for registration
of securities in connection with any business combination transaction, or (iii) a Demand Registration under Section 2.1)
on a registration statement on Form S-1 or Form S-3 or an equivalent general registration form then in effect, whether
or not for its own account, the Company shall give prompt written notice of its intention to do so to the Representative and each
Holder. Upon the written request of any Holder, made within 10 Business Days following the receipt of any such written notice (which
request shall specify the maximum number of Registrable Securities intended to be disposed of by such Holder and the intended method
of distribution thereof), the Company, subject to Sections 2.2(b), 2.3 and 2.6, shall use reasonable best efforts to cause
all such Registrable Securities to be included in the registration statement with the securities that the Company at the time proposes
to register to permit the sale or other disposition by the Holders in accordance with the intended method of distribution thereof
of the Registrable Securities to be so registered. No registration of Registrable Securities effected under this Section 2.2(a)
shall relieve the Company of its obligations to effect Demand Registrations under Section 2.1.


 


(b)          If,
at any time after giving written notice of its intention to register any equity securities and prior to the effective date of the
registration statement filed in connection with such registration, the Company shall determine for any reason not to register or
to delay registration of such equity securities, the Company will give written notice of such determination to the Representative
and each Holder and (i) in the case of a determination not to register, shall be relieved of its obligation to register any
Registrable Securities in connection with such abandoned registration, without prejudice, however, to the rights of Holders under
Section 2.1 and (ii) in the case of a determination to delay such registration of its equity securities, shall be permitted
to delay the registration of such Registrable Securities for the same period as the delay in registering such other equity securities.


 


(c)          Any
Holder shall have the right to withdraw its request for inclusion of its Registrable Securities in any registration statement pursuant
to this Section 2.2 by giving written notice to the Company of its request to withdraw. Such request must be made in writing
prior to the earlier of the execution of the underwriting agreement or the execution of the custody agreement with respect to such
registration. Such withdrawal shall be irrevocable and, after making such withdrawal, a Holder shall no longer have any right to
include Registrable Securities in the registration as to which such withdrawal was made.


 


Section
2.3           Priority in Registrations.


 


(a)          If
any requested registration made pursuant to Section 2.1 involves an underwritten offering and the lead managing underwriter
of such offering (the “Manager”) shall advise the Company that, in its view, the number of securities requested
to be included in such registration by the Holders of Registrable Securities or any other persons, including those shares of Common
Stock requested by the Company to be included in such registration, exceeds the largest number (the “Section 2.3(a)
Sale Number”) that can be sold in an orderly manner in such offering within a price range acceptable to the Representative,
the Company shall use reasonable best efforts to include in such registration:


 


(i)          first,
all Registrable Securities requested to be included in such registration by the Holders thereof; provided, however,
that, if the number of such Registrable Securities exceeds the Section 2.3(a) Sale Number, the number of such Registrable
Securities (not to exceed the Section 2.3(a) Sale Number) to be included in such registration shall be allocated on a pro
rata basis among all Holders requesting that Registrable Securities be included in such registration, based on the number of Registrable
Securities then owned by each such Holder requesting inclusion in relation to the number of Registrable Securities owned by all
Holders requesting inclusion;


 




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(ii)         second,
to the extent that the number of securities to be included pursuant to clause (i) of this Section 2.3(a) is less than
the Section 2.3(a) Sale Number, the remaining shares to be included in such registration shall be allocated on a pro rata
basis among all Holders requesting that securities be included in such registration pursuant to the exercise of Additional Piggyback
Rights (“Piggyback Shares”), based on the aggregate number of Piggyback Shares then owned by each Holder requesting
inclusion in relation to the aggregate number of Piggyback Shares owned by all Holders requesting inclusion, up to the Section 2.3(a)
Sale Number; and


 


(iii)        third,
to the extent that the number of securities to be included pursuant to clauses (i) and (ii) of this Section 2.3(a) is
less than the Section 2.3(a) Sale Number, any securities that the Company proposes to register, up to the Section 2.3(a)
Sale Number.


 


If, as a result of the proration provisions
of this Section 2.3(a), any Holder shall not be entitled to include all Registrable Securities in a registration that such
Holder has requested be included, such Holder may elect to withdraw its request to include Registrable Securities in such registration
or may reduce the number requested to be included; provided, however, that (A) such request must be made in
writing prior to the earlier of the execution of the underwriting agreement or the execution of the custody agreement with respect
to such registration and (B) such withdrawal shall be irrevocable and, after making such withdrawal, such Holder shall no
longer have any right to include Registrable Securities in the registration as to which such withdrawal was made.


 


(b)          If
any registration pursuant to Section 2.2 involves an underwritten offering that was proposed by the Company and the Manager
shall advise the Company that, in its view, the number of securities requested to be included in such registration exceeds the
number (the “Section 2.3(b) Sale Number”) that can be sold in an orderly manner in such registration within
a price range acceptable to the Company, the Company shall include in such registration:


 


(i)          first,
all Common Stock that the Company proposes to register for its own account; and


 


(ii)         second,
to the extent that the number of securities to be included pursuant to clause (i) of this Section 2.3(b) is less than
the Section 2.3(b) Sale Number, the remaining shares to be included in such registration shall be allocated on a pro rata
basis among all Holders requesting that Registrable Securities or Piggyback Shares be included in such registration pursuant to
the exercise of piggyback rights pursuant to Section 2.2 of this Agreement or Additional Piggyback Rights, based on the aggregate
number of Registrable Securities and Piggyback Shares then owned by each Holder requesting inclusion in relation to the aggregate
number of Registrable Securities and Piggyback Shares owned by all Holders requesting inclusion, up to the Section 2.3(b)
Sale Number.


 




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(c)          If
any registration pursuant to Section 2.2 involves an underwritten offering that was proposed by holders of securities of the
Company that have the right to require such registration pursuant to an agreement entered into by the Company (“Additional
Demand Rights”) and the Manager shall advise the Company that, in its view, the number of securities requested to be
included in such registration exceeds the number (the “Section 2.3(c) Sale Number”) that can be sold in
an orderly manner in such registration within a price range acceptable to the Company, the Company shall include in such registration:


 


(i)          first,
all securities requested to be included in such registration by the holders of Additional Demand Rights (“Additional Registrable
Securities”); provided, however, that, if the number of such Additional Registrable Securities exceeds
the Section 2.3(c) Sale Number, the number of such Additional Registrable Securities (not to exceed the Section 2.3(c)
Sale Number) to be included in such registration shall be allocated on a pro rata basis among all holders of Additional Registrable
Securities requesting that Additional Registrable Securities be included in such registration, based on the number of Additional
Registrable Securities then owned by each such holder requesting inclusion in relation to the number of Additional Registrable
Securities owned by all of such holders requesting inclusion;


 


(ii)         second,
to the extent that the number of securities to be included pursuant to clause (i) of this Section 2.3(c) is less than
the Section 2.3(c) Sale Number, any Common Stock that the Company proposes to register for its own account, up to the Section 2.3(c)
Sale Number; and


 


(iii)        third,
to the extent that the number of securities to be included pursuant to clauses (i) and (ii) of this Section 2.3(c) is
less than the Section 2.3(c) Sale Number, the remaining shares to be included in such registration shall be allocated on a
pro rata basis among all Holders requesting that Registrable Securities or Piggyback Shares be included in such registration pursuant
to the exercise of piggyback rights pursuant to Section 2.2 or Additional Piggyback Rights, based on the aggregate number
of Registrable Securities and Piggyback Shares then owned by each Holder requesting inclusion in relation to the aggregate number
of Registrable Securities and Piggyback Shares owned by all Holders requesting inclusion, up to the Section 2.3(c) Sale Number.


 


Section
2.4           Registration Procedures. Whenever the Company
is required by the provisions of this Agreement to use reasonable best efforts to effect or cause the registration of any Registrable
Securities under the Securities Act as provided in this Agreement, the Company as expeditiously as possible, at the Company’s
reasonable expense:


 


(a)          shall
prepare and file with the SEC the requisite registration statement, which shall comply as to form in all material respects with
the requirements of the applicable form and shall include all financial statements required by the SEC to be filed therewith, and
use reasonable best efforts to cause such registration statement to become and remain effective (provided, however,
that before filing a registration statement or prospectus or any amendments or supplements thereto, or comparable statements under
securities or blue sky laws of any jurisdiction, or any Issuer Free Writing Prospectus related thereto, the Company will furnish
to counsel for the Representative and the lead managing underwriter, if any, copies of all such documents proposed to be filed
(including all exhibits thereto), which documents will be subject to the reasonable review and reasonable comment of such counsel,
and the Company shall not file any registration statement or amendment thereto, any prospectus or supplement thereto or any Issuer
Free Writing Prospectus related thereto to which the holders of a majority of the Registrable Securities covered by such registration,
the Representative or the underwriters, if any, shall reasonably object);


 




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(b)          shall
prepare and file with the SEC such amendments and supplements to such registration statement and the prospectus used in connection
therewith as may be necessary to keep such registration statement effective for such period as any seller of Registrable Securities
pursuant to such registration statement shall request and to comply with the provisions of the Securities Act with respect to the
sale or other disposition of all Registrable Securities covered by such registration statement in accordance with the intended
methods of disposition by the seller or sellers thereof set forth in such registration statement;


 


(c)          shall
furnish, without charge, to each seller of such Registrable Securities and each underwriter, if any, of the securities covered
by such registration statement such number of copies of such registration statement, each amendment thereto, the prospectus included
in such registration statement, each preliminary prospectus and each Issuer Free Writing Prospectus utilized in connection therewith,
all in conformity with the requirements of the Securities Act, and such other documents as such seller and underwriter reasonably
may request in order to facilitate the public sale or other disposition of the Registrable Securities owned by such seller, and
shall consent to the use in accordance with all applicable law of each such registration statement, each amendment thereto, each
such prospectus, preliminary prospectus or Issuer Free Writing Prospectus by each such seller of Registrable Securities and the
underwriters, if any, in connection with the offering and sale of the Registrable Securities covered by such registration statement
or prospectus;


 


(d)          shall
use reasonable best efforts to register or qualify the Registrable Securities covered by such registration statement under such
other securities or “blue sky” laws of such jurisdictions as any sellers of Registrable Securities or any managing
underwriter, if any, reasonably shall request, and do any and all other acts and things that may be reasonably necessary or advisable
to enable such sellers or underwriter, if any, to consummate the disposition of the Registrable Securities in such jurisdictions,
except that in no event shall the Company be required to qualify to do business as a foreign corporation in any jurisdiction where,
but for the requirements of this Section 2.4(d), it would not be required to be so qualified, to subject itself to taxation
in any such jurisdiction or to consent to general service of process in any such jurisdiction;


 


(e)          shall
promptly notify each Holder selling Registrable Securities covered by such registration statement and each managing underwriter,
if any:


 


(i)          when
the registration statement, any pre-effective amendment, the prospectus or any prospectus supplement related thereto, any post-effective
amendment to the registration statement or any Issuer Free Writing Prospectus has been filed and, with respect to the registration
statement or any post-effective amendment, when the same has become effective;


 




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(ii)         of
any request by the SEC or state securities authority for amendments or supplements to the registration statement or the prospectus
related thereto or for additional information;


 


(iii)        of
the issuance by the SEC of any stop order suspending the effectiveness of the registration statement or the initiation of any proceedings
for that purpose;


 


(iv)        of
the receipt by the Company or its legal counsel of any notification with respect to the suspension of the qualification of any
Registrable Securities for sale under the securities or blue sky laws of any jurisdiction or the initiation of any proceeding for
such purpose;


 


(v)         of
the existence of any fact of which the Company becomes aware which results in the registration statement, the prospectus related
thereto, any document incorporated therein by reference, any Issuer Free Writing Prospectus or the information conveyed to any
purchaser at the time of sale to such purchaser containing an untrue statement of a material fact or omitting to state a material
fact required to be stated therein or necessary to make any statement therein not misleading; and


 


(vi)        if
at any time the representations and warranties contemplated by any underwriting agreement, securities sale agreement, or other
similar agreement, relating to the offering shall cease to be true and correct in all material respects; and, if the notification
relates to an event described in clause (v), the Company, subject to the provisions of Section 2.1(c), promptly shall
prepare and file with the SEC, and furnish to each seller and each underwriter, if any, a reasonable number of copies of, a prospectus
supplemented or amended so that, as thereafter delivered to the purchasers of such Registrable Securities, such prospectus shall
not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary
to make the statements therein in the light of the circumstances under which they were made not misleading;


 


(f)          shall
comply with all applicable rules and regulations of the SEC, and make generally available to its security holders, as soon as reasonably
practicable after the effective date of the registration statement (and in any event within 90 days after the end of such 12 month
period described hereafter), an earnings statement, which need not be audited, covering the period of at least 12 consecutive months
beginning with the first day of the Company’s first calendar quarter after the effective date of the registration statement,
which earnings statement shall satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder;


 


(g)          shall
use reasonable best efforts to cause all Registrable Securities covered by such registration statement to be authorized to be listed
on a national securities exchange if shares of the particular class of Registrable Securities are at that time, or will be immediately
following the offering, listed on such exchange;


 


(h)          shall
provide and cause to be maintained a transfer agent and registrar for all such Registrable Securities covered by such registration
statement not later than the effective date of such registration statement;


 




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(i)          shall
enter into such customary agreements (including, if applicable, an underwriting agreement), deliver such certificates and take
such other actions as the Representative shall reasonably request in order to expedite or facilitate the disposition of such Registrable
Securities (it being understood that the Holders of the Registrable Securities that are to be distributed by any underwriters shall
be parties to any such underwriting agreement and may, at their option, require that the Company make to and for the benefit of
such Holders the representations, warranties and covenants of the Company which are being made to and for the benefit of such underwriters);


 


(j)          shall
use reasonable best efforts to obtain an opinion from the Company’s counsel and a “cold comfort” letter from
the Company’s independent public accountants in customary form and covering such matters as are customarily covered by such
opinions and “cold comfort” letters delivered to underwriters in underwritten public offerings, which opinion and letter
shall be reasonably satisfactory to the underwriter, if any;


 


(k)          shall
use reasonable best efforts to prevent the issuance of or obtain the withdrawal of any order suspending the effectiveness of the
registration statement;


 


(l)           shall
provide a CUSIP number for all Registrable Securities, not later than the effective date of the registration statement and use
reasonable best efforts to cause all Registrable Securities covered by the applicable registration statement (other than the Warrants)
to be listed on The NASDAQ Stock Market;


 


(m)         shall
make reasonably available its employees and personnel for participation in “road shows” and other marketing efforts
and otherwise provide reasonable assistance to the underwriters (including participating in and making all relevant financial and
other records and pertinent corporate documents and information of the Company available for the due diligence review of the Representative
and underwriters, if any, and their legal counsel and accountants), taking into account the needs of the Company’s businesses
and the requirements of the marketing process so as not to unreasonably interfere with the conduct of the Company’s business,
in the marketing of Registrable Securities in any underwritten offering;


 


(n)          shall
promptly prior to the filing of any document that is to be incorporated by reference into the registration statement or the prospectus,
and prior to the filing of any Issuer Free Writing Prospectus, provide copies of such document to counsel for the selling holders
of Registrable Securities and to each managing underwriter, if any, and make the Company’s representatives reasonably available
for discussion of such document and make such changes in such document concerning the selling holders prior to the filing thereof
as counsel for such selling holders or underwriters may reasonably request;


 


(o)          shall
cooperate with the sellers of Registrable Securities and the managing underwriter, if any, to facilitate the timely preparation
and delivery of certificates not bearing any restrictive legends representing the Registrable Securities to be sold, and cause
such Registrable Securities to be issued in such denominations and registered in such names in accordance with the underwriting
agreement prior to any sale of Registrable Securities to the underwriters or, if not an underwritten offering, in accordance with
the instructions of the sellers of Registrable Securities at least three Business Days prior to any sale of Registrable Securities
and instruct any transfer agent and registrar of Registrable Securities to release any stop transfer orders in respect thereof;


 




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(p)          shall
take all such other commercially reasonable actions as are necessary or advisable in order to expedite or facilitate the disposition
of such Registrable Securities;


 


(q)          shall
not take any direct or indirect action prohibited by Regulation M under the Exchange Act; provided, however,
that to the extent that any prohibition is applicable to the Company, the Company will take such action as is necessary to make
any such prohibition inapplicable;


 


(r)          shall
cooperate with each seller of Registrable Securities and each underwriter or agent participating in the disposition of such Registrable
Securities and their respective counsel in connection with any filings required to be made with FINRA; and


 


(s)          shall
take all reasonable action to ensure that any Issuer Free Writing Prospectus utilized in connection with any registration covered
by Section 2.1 or 2.2 complies in all material respects with the Securities Act, is filed in accordance with the Securities
Act to the extent required thereby, is retained in accordance with the Securities Act to the extent required thereby and, when
taken together with the related prospectus, will not contain any untrue statement of a material fact or omit to state a material
fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.


 


To the extent the Company is a well-known
seasoned issuer as defined in Rule 405 under the Securities Act (a “WKSI”) at the time any Demand Registration
Request is submitted to the Company, and such Demand Registration Request requests that the Company file an automatic shelf registration
statement as defined in Rule 405 under the Securities Act (an “automatic shelf registration statement”)
on Form S-3, the Company shall file an automatic shelf registration statement that covers those Registrable Securities that
are requested to be registered. The Company shall use reasonable best efforts to remain a WKSI and not become an ineligible issuer
(as defined in Rule 405 under the Securities Act) during the period during which such automatic shelf registration statement
is required to remain effective. If the Company does not pay the filing fee covering the Registrable Securities at the time the
automatic shelf registration statement is filed, the Company shall pay such fee at such time or times as the Registrable Securities
are to be sold. If the automatic shelf registration statement has been outstanding for at least three years, at the end of the
third year the Company shall refile a new automatic shelf registration statement covering the Registrable Securities. If at any
time when the Company is required to re-evaluate its WKSI status, the Company determines that it is not a WKSI, the Company shall
use reasonable best efforts to refile the shelf registration statement on Form S-3 and, if such form is not available, Form S-1
and keep such registration statement effective during the period during which such registration statement is required to be kept
effective.


 


If the Company files any shelf registration
statement for the benefit of the holders of any of its securities other than the Holders, the Company shall include in such registration
statement such disclosures as may be required by Rule 430B under the Securities Act, referring to the unnamed selling security
holders in a generic manner by identifying the initial offering of the securities to the Holders, in order to ensure that the Holders
may be added to such shelf registration statement at a later time through the filing of a prospectus supplement rather than a post-effective
amendment.


 




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The Company may require as a condition precedent
to the Company’s obligations under this Section 2.4 that each seller of Registrable Securities as to which any registration
is being effected furnish the Company such information in writing regarding such seller and the distribution of such Registrable
Securities as the Company from time to time reasonably may request; provided, that such information is necessary for the
Company to consummate such registration and shall be used only in connection with such registration.


 


Each seller of Registrable Securities agrees
that upon receipt of any notice from the Company under Section 2.4(e)(v), such seller will discontinue such seller’s
disposition of Registrable Securities pursuant to the registration statement covering such Registrable Securities until such seller’s
receipt of the copies of the supplemented or amended prospectus. In the event the Company shall give any such notice, the applicable
period set forth in Section 2.4(b) shall be extended by the number of days during such period from and including the date
of the giving of such notice to and including the date when each seller of any Registrable Securities covered by such registration
statement shall have received the copies of the supplemented or amended prospectus. No such discontinuation may be in effect in
any twelve-month period for a total number of days greater than ninety.


 


If any such registration statement or comparable
statement under “blue sky” laws refers to any Holder by name or otherwise as the Holder of any securities of the Company,
such Holder shall have the right to require (i) the insertion therein of language, in form and substance reasonably satisfactory
to such Holder and the Company, to the effect that the holding by such Holder of such securities is not to be construed as a recommendation
by such Holder of the investment quality of the Company’s securities covered thereby and that such holding does not imply
that such Holder will assist in meeting any future financial requirements of the Company or (ii) in the event that such reference
to such Holder by name or otherwise is not in the judgment of the Company, as advised by counsel, required by the Securities Act
or any similar federal statute or any state “blue sky” or securities law then in force, the deletion of the reference
to such Holder.


 


Section
2.5           Registration Expenses.


 


(a)          The
Company shall pay (i) all reasonable Registration Expenses with respect to any Demand Registration whether or not it becomes effective
or remains effective for the period contemplated by Section 2.4(b) and (ii) all Registration Expenses with respect to any
registration effected under Section 2.2.


 


(b)          Notwithstanding
the foregoing, (i) the provisions of this Section 2.5 shall be deemed amended to the extent necessary to cause these
expense provisions to comply with “blue sky” laws of each state in which the offering is made, (ii) in connection
with any registration hereunder, each Holder of Registrable Securities being registered shall pay all underwriting discounts and
commissions and any transfer taxes, if any, attributable to the sale of such Registrable Securities, pro rata with respect to payments
of discounts and commissions in accordance with the number of shares sold in the offering by such Holder and (iii) the Company
shall, in the case of all registrations under this Article II, be responsible for all its internal expenses.


 




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Section
2.6           Underwritten Offerings.


 


(a)          If
requested by the underwriters for any underwritten offering by the Holders pursuant to a registration requested under Section 2.1,
the Company shall enter into a customary underwriting agreement with the underwriters. Such underwriting agreement shall be satisfactory
in form and substance to the Representative and shall contain such representations and warranties by, and such other agreements
on the part of, the Company and such other terms as are generally prevailing in agreements of that type. Any Holder participating
in the offering shall be a party to such underwriting agreement and, at its option, may require that any or all of the representations
and warranties by, and the other agreements on the part of, the Company to and for the benefit of such underwriters also shall
be made to and for the benefit of such Holder and that any or all of the conditions precedent to the obligations of such underwriters
under such underwriting agreement be conditions precedent to the obligations of such Holder; provided, however, that
the Company shall not be required to make any representations or warranties with respect to written information specifically provided
by a selling Holder for inclusion in the registration statement. No Holder shall be required to make any representations or warranties
to or agreements with the Company or the underwriters other than representations, warranties or agreements regarding such Holder,
its ownership of and title to the Registrable Securities and its intended method of distribution; and any liability of such Holder
to any underwriter or other Person under such underwriting agreement shall be limited to liability arising from breach of its representations
and warranties and shall be limited to an amount equal to the proceeds (net of expenses and underwriting discounts and commissions)
that it derives from such registration.


 


(b)          In
the case of a registration pursuant to Section 2.2, if the Company shall have determined to enter into an underwriting agreement
in connection therewith, any Registrable Securities to be included in such registration shall be subject to such underwriting agreement.
Any Holder participating in such registration may, at its option, require that any or all of the representations and warranties
by, and the other agreements on the part of, the Company to and for the benefit of such underwriters shall also be made to and
for the benefit of such Holder and that any or all of the conditions precedent to the obligations of such underwriters under such
underwriting agreement be conditions precedent to the obligations of such Holder. No Holder shall be required to make any representations
or warranties to or agreements with the Company or the underwriters other than representations, warranties or agreements regarding
such Holder, its ownership of and title to the Registrable Securities and its intended method of distribution; and any liability
of such Holder to any underwriter or other Person under such underwriting agreement shall be limited to liability arising from
breach of its representations and warranties and shall be limited to an amount equal to the proceeds (net of expenses and underwriting
discounts and commissions) that it derives from such registration.


 


(c)          In
the case of any registration under Section 2.1 pursuant to an underwritten offering, or, in the case of a registration under
Section 2.2, if the Company has determined to enter into an underwriting agreement in connection therewith, all securities
to be included in such registration shall be subject to an underwriting agreement and no Person may participate in such registration
unless such Person agrees to sell such Person’s securities on the basis provided therein and, subject to the provisions of
this Section 2.6, completes and executes all reasonable questionnaires, and other documents, including custody agreements
and powers of attorney, that must be executed in connection therewith, and provides such other information to the Company or the
underwriter as may be necessary to register such Person’s securities.


 




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Section
2.7           No Required Sale. Nothing in this Agreement
shall be deemed to create an independent obligation on the part of any Holder to sell any Registrable Securities pursuant to any
effective registration statement.


 


Section
2.8           Indemnification.


 


(a)          In
the event of any registration of any securities of the Company under the Securities Act pursuant to this Article II, the Company
will, and hereby agrees to, indemnify and hold harmless, to the fullest extent permitted by law, each Holder of Registrable Securities,
its directors, officers, fiduciaries, employees, agents, affiliates, consultants, representatives, general and limited partners,
stockholders, successors, assigns (and the directors, officers, employees and stockholders thereof), and each other Person, if
any, who controls such Holder within the meaning of the Securities Act, from and against any and all losses, claims, damages or
liabilities, joint or several, actions or proceedings (whether commenced or threatened) and expenses (including reasonable fees
of counsel and, with respect to any settlement, any amounts paid in such settlement effected with the Company’s consent,
which consent shall not be unreasonably denied, withheld, conditioned or delayed; provided, that no such consent shall be required
(and the indemnifying party shall be liable) for any settlement effected or directed by the Company) to which each such indemnified
party may become subject under the Securities Act or otherwise (collectively, “Losses”), insofar as such Losses
arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in any registration
statement under which such securities were registered under the Securities Act or the omission or alleged omission to state therein
a material fact required to be stated therein or necessary to make the statements therein not misleading or (ii) any untrue
statement or alleged untrue statement of a material fact contained in any preliminary, final or summary prospectus or any amendment
or supplement thereto, in each case, together with the documents incorporated by reference therein, or any Issuer Free Writing
Prospectus utilized in connection therewith, or the omission or alleged omission to state therein a material fact necessary in
order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and the Company
will reimburse any such indemnified party for any legal or other expenses reasonably incurred by such indemnified party in connection
with investigating or defending any such Loss as such expenses are incurred; provided, however, that the Company
shall not be liable to any such indemnified party in any such case to the extent such Loss arises out of or is based upon any untrue
statement or alleged untrue statement of a material fact or omission or alleged omission of a material fact made in such registration
statement or amendment thereof or supplement thereto or in any such prospectus or any preliminary, final or summary prospectus
or Issuer Free Writing Prospectus in reliance upon and in conformity with written information prepared and furnished to the Company
by or on behalf of such indemnified party expressly for use therein. Such indemnity and reimbursement of expenses shall remain
in full force and effect regardless of any investigation made by or on behalf of such indemnified party and shall survive the transfer
of such securities by such Holder.


 




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(b)          Each
Holder of Registrable Securities that are included in the securities as to which any registration under Section 2.1 or 2.2
is being effected shall, severally and not jointly, indemnify and hold harmless (in the same manner and to the same extent as set
forth in paragraph (a) of this Section 2.8) to the extent permitted by law the Company, its officers and directors, each
Person controlling the Company within the meaning of the Securities Act and all other prospective sellers and their respective
directors, officers, fiduciaries, employees, agents, affiliates, consultants, representatives, general and limited partners, stockholders,
successors, assigns and respective controlling Persons from and against any Loss with respect to any untrue statement or alleged
untrue statement of any material fact in, or omission or alleged omission of any material fact from, such registration statement,
any preliminary, final or summary prospectus contained therein, or any amendment or supplement thereto, or any Issuer Free Writing
Prospectus utilized in connection therewith, but only to the extent that such untrue statement or alleged untrue statement or omission
or alleged omission was made in reliance upon and in conformity with written information prepared and furnished to the Company
or its representatives by or on behalf of such Holder specifically and expressly for use therein, and reimburse such indemnified
party for any legal or other expenses reasonably incurred in connection with investigating, defending any such Loss as such expenses
are incurred; provided, however, that the aggregate amount that any such Holder shall be required to pay pursuant
to this Section 2.8(b) and Sections 2.8(c), (e) and (f) shall in no case be greater than the amount of the net proceeds
received by such Holder upon the sale of the Registrable Securities pursuant to the registration statement giving rise to such
claim. Such indemnity and reimbursement of expenses shall remain in full force and effect regardless of any investigation made
by or on behalf of such indemnified party and shall survive the transfer of such securities by such Holder.


 


(c)          Any
Person entitled to indemnification under this Agreement promptly shall notify the indemnifying party in writing of the commencement
of any action or proceeding with respect to which a claim for indemnification may be made pursuant to this Section 2.8, but
the failure of any such Person to provide such notice shall not relieve the indemnifying party of its obligations under the preceding
paragraphs of this Section 2.8, except to the extent the indemnifying party is actually and materially prejudiced thereby
and shall not relieve the indemnifying party from any liability that it may have to any such Person otherwise than under this Article II.
In case any action or proceeding is brought against an indemnified party and it shall notify the indemnifying party of the commencement
thereof, the indemnifying party shall be entitled to participate therein and, unless in the reasonable opinion of outside counsel
to the indemnified party a conflict of interest between such indemnified and indemnifying parties may exist in respect of such
claim, to assume the defense thereof jointly with any other indemnifying party similarly notified, to the extent that it chooses,
with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified
party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for
any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable
costs of investigation; provided, however, that (i) if the indemnifying party fails to take reasonable steps
necessary to defend diligently the action or proceeding within 20 days after receiving notice from such indemnified party, (ii) if
such indemnified party who is a defendant in any action or proceeding that is also brought against the indemnifying party reasonably
shall have concluded that there may be one or more legal defenses available to such indemnified party that are not available to
the indemnifying party or (iii) if representation of both parties by the same counsel is otherwise inappropriate under applicable
standards of professional conduct, then, in any such case, the indemnified party shall have the right to assume or continue its
own defense as set forth above (but with no more than one firm of counsel for all indemnified parties in each jurisdiction, except
to the extent any indemnified party or parties reasonably shall have concluded that there may be legal defenses available to such
party or parties that are not available to the other indemnified parties or to the extent representation of all indemnified parties
by the same counsel is otherwise inappropriate under applicable standards of professional conduct) and the indemnifying party shall
be liable for any expenses therefor. Without the written consent of the indemnified party, which consent shall not be unreasonably
withheld, no indemnifying party shall effect the settlement or compromise of, or consent to the entry of any judgment with respect
to, any pending or threatened action or claim in respect of which indemnification or contribution may be sought hereunder, whether
or not the indemnified party is an actual or potential party to such action or claim, unless such settlement, compromise or judgment
(A) includes an unconditional release of the indemnified party from all liability arising out of such action or claim and
(B) does not include a statement as to or an admission of fault, culpability or a failure to act, by or on behalf of any indemnified
party.


 




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(d)          If
for any reason the foregoing indemnity is held by a court of competent jurisdiction to be unavailable with respect to any Loss
hereunder, then each indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or
payable by such indemnified party as a result of any Loss in such proportion as is appropriate to reflect the relative fault of
the indemnifying party, on the one hand, and the indemnified party, on the other hand, with respect to the statement or omissions
that resulted in such Loss as well as any other equitable considerations. The relative fault shall be determined by reference to,
among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state
a material fact relates to information supplied by the indemnifying party or the indemnified party and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent such untrue statement or omission. If, however,
the allocation provided in the second preceding sentence is not permitted by applicable law, then each indemnifying party shall
contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such
relative faults but also the relative benefits of the indemnifying party and the indemnified party as well as any other relevant
equitable considerations. The parties hereto agree that it would not be just and equitable if contributions pursuant to this Section
2.8(d) were to be determined by pro rata allocation or by any other method of allocation which does not take account of the equitable
considerations referred to in the preceding sentences of this Section 2.8(d). The amount paid or payable in respect of any Loss
shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in connection with investigating
or defending any such Loss. No Person guilty of fraudulent misrepresentation within the meaning of Section 11(f) of the Securities
Act shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. Notwithstanding
anything in this Section 2.8(d) to the contrary, no indemnifying party other than the Company shall be required pursuant to this
section 2.8(d) to contribute any amount in excess of the net proceeds received by such indemnifying party from the sale of Registrable
Securities in the offering to which the Losses of the indemnified parties relate, less the amount of any indemnification payment
made by such indemnifying party pursuant to Sections 2.8(b) and (c). No Person guilty of or liable for fraudulent misrepresentation
shall be entitled to contribution from any other Person.


 




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(e)          The
indemnity and contribution agreements contained herein shall be in addition to any other rights to indemnification or contribution
which any indemnified party may have pursuant to law or contract and shall remain operative and in full force and effect regardless
of any investigation made or omitted by or on behalf of any indemnified party and shall survive the transfer of the Registrable
Securities by any such party.


 


(f)          The
indemnification and contribution required by this Section 2.8 shall be made by periodic payments of the amount thereof during
the course of the investigation or defense, as and when bills are received or expense, loss, damage or liability is incurred.


 


ARTICLE
III


GENERAL


 


Section
3.1           Adjustments Affecting Registrable Securities.
The Company shall not effect or permit to occur any combination or subdivision of shares of Common Stock that would adversely affect
the ability of any Holder of any Registrable Securities to include such Registrable Securities in any registration contemplated
by this Agreement or the marketability of such Registrable Securities in any such registration. The Company will take all reasonable
steps necessary to effect a subdivision of shares if in the reasonable judgment of (a) the Representative or (b) the
managing underwriter for the offering in respect of such Demand Registration Request, such subdivision would enhance the marketability
of the Registrable Securities.


 


Section
3.2           Rule 144. The Company covenants that (a) upon
such time as it becomes, and so long as it remains, subject to the reporting provisions of the Exchange Act, it will timely file
the reports required to be filed by it under the Securities Act or the Exchange Act or, if it is not required to file such reports,
upon the request of any Holder it shall make publicly available other information so long as necessary to permit sales of such
Registrable Securities in compliance with Rule 144 under the Securities Act and (b) it will take such further action
as any Holder of Registrable Securities reasonably may request, all to the extent required from time to time to enable such Holder
to sell Registrable Securities without registration under the Securities Act within the limitation of the exemptions provided by
(i) Rule 144 under the Securities Act, as such Rule may be amended from time to time, or (ii) any similar rule or
regulation hereafter adopted by the SEC. Upon the request of any Holder of Registrable Securities, the Company will deliver to
such Holder a written statement as to whether it has complied with such requirements.


 


Section
3.3           Nominees for Beneficial Owners. If Registrable
Securities are held by a nominee for the beneficial owner thereof, the beneficial owner thereof may, at its option, be treated
as the Holder of such Registrable Securities for purposes of any request or other action by any Holder or Holders of Registrable
Securities pursuant to this Agreement or any determination of any number or percentage of shares constituting Registrable Securities
held by any Holder or Holders of Registrable Securities contemplated by this Agreement; provided, that the Company shall
have received assurances reasonably satisfactory to it of such beneficial ownership.


 


Section
3.4           No Inconsistent Agreements. The Company shall
not hereafter enter into or permit to continue in effect any agreement with respect to its securities that conflicts with or violates
the rights granted to the holders of Registrable Securities in this Agreement.


 




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ARTICLE
IV


MISCELLANEOUS


 


Section
4.1           Amendment and Waiver.


 


(a)          Any
provision of this Agreement may be amended or waived if, and only if, such amendment or waiver is in writing and is signed, in
the case of an amendment, by the Company and the Representative or, in the case of a waiver, by the party or parties against whom
the waiver is to be effective, in an instrument specifically designated as an amendment or waiver hereto.


 


(b)          No
failure or delay of any party in exercising any right or remedy hereunder shall operate as a waiver thereof, nor shall any single
or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such right or power, or
any course of conduct, preclude any other or further exercise thereof or the exercise of any other right or power. The rights and
remedies of the parties hereunder are cumulative and are not exclusive of any rights or remedies which they would otherwise have
hereunder.


 


Section
4.2           Notices. All notices and other communications
hereunder shall be in writing and shall be deemed duly given (a) on the date of delivery if delivered personally, or if by
facsimile or e-mail, upon written confirmation of receipt by facsimile, e-mail or otherwise, (b) on the first Business Day
following the date of dispatch if delivered utilizing a next-day service by a recognized next-day courier or (c) on the earlier
of confirmed receipt or the fifth Business Day following the date of mailing if delivered by registered or certified mail, return
receipt requested, postage prepaid. All notices hereunder shall be delivered to the addresses set forth below, or pursuant to such
other instructions as may be designated in writing by the party to receive such notice:


 


(a)          if
to the Representative, to:


 


The Carlyle Group


520 Madison Avenue, 39th Floor


New York, NY 10022


Phone: (212) 813-4702


Facsimile: (212) 813-4702


Email: David.Stonehill@carlyle.com


Attention: David A. Stonehill


 


with a copy (which shall not constitute notice) to:


 


Latham & Watkins LLP


555 Eleventh Street, NW, Suite 1000


Washington, D.C. 20004


Phone: (202) 637-2200


Facsimile: (202) 637-2201


Email: paul.sheridan@lw.com


Attention: Paul F. Sheridan, Jr.


 




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(b)          if
to the Company, to:


 


Sequential Brands Group, Inc.


1065 Avenue of the Americas, 30th Floor


New York, NY 10018


Phone: (646) 564-2577


Facsimile: (212) 354-8113


Email: yshmidman@sbg-ny.com


Attention: Yehuda Shmidman


 


with a copy (which shall not constitute notice) to:


 


Tengram Capital Management, L.P.


15 Riverside Avenue


Westport, Connecticut 06880


Facsimile: (203) 629-4901


Email: atarshis@tengramcapital.com


Attention: Andrew Tarshis


 


or such other address as the Company or the Representative shall
have specified to the other party in writing in accordance with this Section 4.2. Any notice or other document required or
permitted to be given or delivered to a Holder shall be delivered to the last address shown on the books of the Company or at any
more recent address of which the Holder shall have notified the Company in writing.


 


Section
4.3           Interpretation. When a reference is made in
this Agreement to a Section, Article, Exhibit or Schedule such reference shall be to a Section, Article, Exhibit or Schedule of
this Agreement unless otherwise indicated. The headings contained in this Agreement or in any Exhibit or Schedule are for convenience
of reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. All words used in this
Agreement will be construed to be of such gender or number as the circumstances require. Any capitalized terms used in any Exhibit
or Schedule but not otherwise defined therein shall have the meaning as defined in this Agreement. All Exhibits and Schedules annexed
hereto or referred to herein are hereby incorporated in and made a part of this Agreement as if set forth herein. The word “including”
and words of similar import when used in this Agreement will mean “including, without limitation,” unless otherwise
specified. The words “hereof,” “herein” and “hereunder” and words of similar import when used
in this Agreement shall refer to the Agreement as a whole and not to any particular provision in this Agreement. The term “or”
is not exclusive. The word “will” shall be construed to have the same meaning and effect as the word “shall.”
References to days mean calendar days unless otherwise specified.


 


Section
4.4           Entire Agreement. This Agreement, the Warrants
and the Merger Agreement constitute the entire agreement, and supersede all prior written agreements, arrangements, communications
and understandings and all prior and contemporaneous oral agreements, arrangements, communications and understandings between the
parties with respect to the subject matter hereof and thereof.


 




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Section
4.5           No Third-Party Beneficiaries. Except as provided
in Section 2.8, nothing in this Agreement, express or implied, is intended to or shall confer upon any Person other than the
parties and their respective successors and permitted assigns any legal or equitable right, benefit or remedy of any nature under
or by reason of this Agreement.


 


Section
4.6           Governing Law. This Agreement and all disputes
or controversies arising out of or relating to this Agreement or the transactions contemplated hereby shall be governed by, and
construed in accordance with, the internal laws of the State of Delaware, without regard to the laws of any other jurisdiction
that might be applied because of the conflicts of laws principles of the State of Delaware.


 


Section
4.7           Submission to Jurisdiction. Each of the parties
irrevocably agrees that any legal action or proceeding arising out of or relating to this Agreement brought by any other party
or its successors or assigns shall be brought and determined in the Court of Chancery of the State of Delaware, provided,
that if jurisdiction is not then available in the Court of Chancery of the State of Delaware, then any such legal action or proceeding
may be brought in any federal court located in the State of Delaware and each of the parties hereby irrevocably submits to the
exclusive jurisdiction of the aforesaid courts for itself and with respect to its property, generally and unconditionally, with
regard to any such action or proceeding arising out of or relating to this Agreement and the transactions contemplated hereby.
Each of the parties agrees not to commence any action, suit or proceeding relating thereto except in the courts described above
in Delaware, other than actions in any court of competent jurisdiction to enforce any judgment, decree or award rendered by any
such court in Delaware as described herein. Each of the parties further agrees that notice as provided herein shall constitute
sufficient service of process and the parties further waive any argument that such service is insufficient. Each of the parties
hereby irrevocably and unconditionally waives, and agrees not to assert, by way of motion or as a defense, counterclaim or otherwise,
in any action or proceeding arising out of or relating to this Agreement or the transactions contemplated hereby, (a) any
claim that it is not personally subject to the jurisdiction of the courts in Delaware as described herein for any reason, (b) that
it or its property is exempt or immune from jurisdiction of any such court or from any legal process commenced in such courts (whether
through service of notice, attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment or otherwise)
and (c) that (i) the suit, action or proceeding in any such court is brought in an inconvenient forum, (ii) the
venue of such suit, action or proceeding is improper or (iii) this Agreement, or the subject matter hereof, may not be enforced
in or by such courts.


 


Section
4.8           Assignment; Successors. This Agreement will
be binding upon, inure to the benefit of, and be enforceable by, the parties and their respective successors and assigns. If any
Person shall acquire Registrable Securities from any Holder in any manner, whether by operation of law or otherwise, such Person
shall promptly notify the Company and such Registrable Securities acquired from such Holder shall be held subject to all of the
terms of this Agreement, and by taking and holding such Registrable Securities such Person shall be entitled to receive the benefits
of and be conclusively deemed to have agreed to be bound by and to perform all of the terms and provisions of this Agreement. Any
such successor or assign shall agree in writing to acquire and hold the Registrable Securities acquired from such Holder subject
to all of the terms hereof. If any Holder shall acquire additional Registrable Securities, such Registrable Securities shall be
subject to all of the terms, and entitled to all of the benefits, of this Agreement.


 




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Section
4.9           Enforcement. The parties agree that irreparable
damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific
terms or were otherwise breached. Accordingly, each of the parties shall be entitled to specific performance of the terms hereof,
including an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions
of this Agreement in the Court of Chancery of the State of Delaware, provided, that if jurisdiction is not then available
in the Court of Chancery of the State of Delaware, then any such legal action or proceeding may be brought in any federal court
located in the State of Delaware, this being in addition to any other remedy to which such party is entitled at law or in equity.
Each of the parties hereby further waives (a) any defense in any action for specific performance that a remedy at law would
be adequate and (b) any requirement under any law to post security as a prerequisite to obtaining equitable relief.


 


Section
4.10         Severability. Whenever possible, each provision or portion
of any provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if
any provision or portion of any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under
any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision
or portion of any provision in such jurisdiction, and this Agreement shall be reformed, construed and enforced in such jurisdiction
as if such invalid, illegal or unenforceable provision or portion of any provision had never been contained herein.


 


Section
4.11         Waiver of Jury Trial. EACH OF THE PARTIES TO THIS AGREEMENT
HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO
THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.


 


Section
4.12         Counterparts. This Agreement may be executed in two or
more counterparts, all of which shall be considered one and the same instrument and shall become effective when one or more counterparts
have been signed by each of the parties and delivered to the other parties. This Agreement may be executed by facsimile or .pdf
signature and a facsimile or .pdf signature shall constitute an original for all purposes.


 


Section
4.13         Time of Essence. Time is of the essence with regard to
all dates and time periods set forth or referred to in this Agreement.


 


Section
4.14         No Presumption Against Drafting Party. Each of the parties
hereto acknowledges that it has been represented by counsel in connection with this Agreement and the transactions contemplated
by this Agreement. Accordingly, any rule of law or any legal decision that would require interpretation of any claimed ambiguities
in this Agreement against the drafting party has no application and is expressly waived.


 


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IN WITNESS WHEREOF, the parties hereto have
executed this Agreement as of the date first above written.


  


	 	SEQUENTIAL BRANDS GROUP, INC.
	 	 
	 	By:	/s/ Yehuda Shmidman
	 	Name:	Yehuda Shmidman




	 	Title:	Chief Executive Officer




	 	 
	 	CARLYLE EQUITY OPPORTUNITY GP, L.P.
	 	By: Carlyle Equity Opportunity GP, L.L.C., its general partner




	 	 
	 	By:	/s/ David Stonehill
	 	Name:	David Stonehill




	 	Title:	


 


Signature
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