Document:

EXECUTION VERSION

 

REGISTRATION RIGHTS AGREEMENT

 

THIS REGISTRATION RIGHTS AGREEMENT (this “Agreement”)
is made as of July 26, 2013 by and among Sequential Brands Group, Inc., a Delaware corporation (the “Company”),
and [    ] as the “Investor” and any Persons identified on the signature page of any joinder agreements executed
and delivered pursuant to Section 9 and Section 10 hereof (each, including the Investor, a “Holder”
and, collectively, the “Holders”). Capitalized terms used but not otherwise defined herein are defined in Section
13 hereof.

 

RECITALS:

 

WHEREAS, in connection with that certain Securities
Purchase Agreement by and between the Company and the Investor, dated July 25, 2013 (the “Purchase Agreement”),
and the offering contemplated thereby (the “PIPE Transaction”), the Company has agreed, upon the terms and subject
to the conditions set forth in the Purchase Agreement, to issue and sell to the Investor an aggregate of 1,000,000 shares of the
Company’s Common Stock;

 

WHEREAS, in accordance with the terms of the
Purchase Agreement, the Company has agreed to provide the Holders with certain registration rights;

 

NOW, THEREFORE, in accordance with the terms
of the Purchase Agreement, and in consideration of the premises and the mutual covenants contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and each of the Holders hereby agree as
follows:

 

Section
1. Shelf Registration.

 

(a)          Filing.
The Company shall, as soon as commercially reasonable, but in any event not later than 75 days after the Closing Date (as defined
below) (such date, the “Filing Deadline”), file a registration statement on any permitted form that qualifies,
and is available for, the resale of Registrable Securities, with the Commission in accordance with and pursuant to Rule 415 promulgated
under the Securities Act (or any successor rule then in effect) (the “Shelf”). The Company shall use its commercially
reasonable efforts to cause such Shelf to become effective as promptly thereafter as practicable, but in any event not later than
90 days after the Filing Deadline if the Company receives comments to the Shelf from the Commission (“SEC Comments”)
or 30 days after the Filing Deadline if the Company does not receive SEC Comments (such date, the “Effectiveness Deadline”).
The Company’s obligations to file and to cause the Shelf to become effective pursuant to this Section 1(a) may be
suspended for a period of time, upon written notice to the Holders of Registrable Securities, (each such period of time, a “Pre-Effective
Suspension Period”), if the Company determines in its reasonable good faith judgment that it is in an Acquisition Event
Period; provided, that (i) there are no more than two Pre-Effective Suspension Periods during the term of this Agreement, (ii)
the duration of any one Pre-Effective Suspension Period may not exceed 45 days and (iii) the Company shall use its reasonable good
faith efforts to terminate any Pre-Effective Suspension Period and commence filing or seek effectiveness of the Shelf, as applicable,
as promptly as reasonably practicable, unless the Company, in its sole discretion, reasonably expects such commencement of filing
or seeking effectiveness would have an adverse effect on the Company with respect to any proposal or plan of the Company to effect
a merger, acquisition, disposition, financing, reorganization, recapitalization or similar transaction or any negotiations, discussions
or pending proposals with respect thereto. Subject to any SEC Comments, such Shelf shall include a plan of distribution substantially
in the form attached hereto as Exhibit A (the “Plan of Distribution”), as may be amended in accordance
with the terms of this Agreement. Such Shelf shall not include any shares of Common Stock, other than the Piggyback Shares, or
other securities for the account of any holder other than the Holders, without the prior written consent of the Holders of a majority
of the Registrable Securities. The Company shall give written notice of the expected filing of the Shelf (the “Registration
Notice”) at least ten Business Days prior to the filing thereof to each Holder and the Company shall include in the Shelf
all Registrable Securities with respect to which the Company has received written requests for inclusion therein at least five
Business Days prior to the date of filing indicated in the Registration Notice; provided, however, that, in order to be named as
a selling securityholder in the Shelf, each Holder must furnish to the Company a duly completed questionnaire in the form attached
to this Agreement as Exhibit B or in a form mutually acceptable to the parties, and any additional information as may be
reasonably requested by the Company for the purpose of including such Holder’s Registrable Securities in the Shelf (the “Selling
Holder Information”). The Company shall include, in the Shelf, Selling Holder Information received to the extent necessary
and in a manner so that, upon effectiveness of the Shelf, any such Holder shall be named, to the extent required by the rules promulgated
under the Securities Act by the Commission, as a selling securityholder and be permitted to deliver (or be deemed to deliver) a
Prospectus relating to the Shelf to purchasers of the Registrable Securities in accordance with applicable law.

 

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(b)          Amendments;
Shelf Term. If the Company files an amended version of the Shelf, including any post-effective amendment to the Shelf (the
“Shelf Amendment”), the Company shall give written notice of such Shelf Amendment (the “Shelf Amendment
Notice”) at least ten Business Days prior to the filing thereof to each Holder and each Holder may be required, upon
the Company’s request, to provide updated Selling Holder Information, in writing, in the form included with the Company’s
Shelf Amendment Notice. The Company shall include in such Shelf Amendment, such updated Selling Holder Information, including any
Selling Holder Information that was not included in any previously filed version of the Shelf. Notwithstanding the foregoing, the
Company shall not include any Holder’s Selling Holder Information on a Shelf Amendment to the extent that such Holder, at
the time of the Shelf Amendment Notice, does not or, at the time of the Shelf Amendment filing, will not, hold Registrable Securities.
The Company shall use its commercially reasonable efforts to convert any Shelf that is on Form S-1 to a Registration Statement
on Form S-3 (the “Form S-3 Shelf”) as soon as reasonably practicable after the Company is eligible to use Form
S-3. The Company shall use its commercially reasonable efforts to maintain the effectiveness of the Shelf in accordance with the
terms hereof for a period (such period, the “Shelf Term”) ending upon the earliest to occur of: (i) the date
on which all Registrable Securities covered by the Shelf have been sold, (ii) the date on which no Holder hereunder holds Registrable
Securities, or (iii) one year from the closing date of the PIPE Transaction (the “Closing Date”).

 

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(c)          Liquidated
Damages. If a Shelf covering the Registrable Securities is not filed with the Commission on or prior to the Filing Deadline
or the Company fails to have a Registration Statement declared effective under the Securities Act prior to the applicable Effectiveness
Deadline, subject, in each case, to extension through the Company’s use of any Pre-Effective Suspension Period as provided
in Section 1(a) hereof, for more than 30 consecutive calendar days (such 30-day period, the “Grace Period”),
the Company will, subject to the conditions set forth in this Section 1(c), make pro rata payments to each
Holder, as liquidated damages and not as a penalty, in an amount equal to 1.5% of the aggregate amount invested by such Holder
pursuant to the Purchase Agreement (or the purchase price of the Registrable Securities purchased by any Holder not an original
party to the Purchase Agreement, (the “Purchase Amount”) for each 30-day period (or pro rata
for any portion thereof) following the applicable Grace Period. Such payments shall constitute the Holders’ exclusive monetary
remedy for such events, but shall not affect the right of the Holders to seek injunctive relief. Such payments shall be made to
each Holder by check mailed to the address of the registered Holder of the Registrable Securities on the books and records of
the Company as maintained by the Company’s transfer agent, no later than three Business Days after the end of each 30-day
period. Notwithstanding the forgoing, (i) the maximum aggregate liquidated damages payable to a Holder under this Agreement, including
any interest, shall be 10.0% of the aggregate Purchase Amount paid by such Holder, (ii) no liquidated damages shall accrue or
become payable in respect of any Piggyback Shares, (iii) no liquidated damages shall accrue or become payable during the Grace
Period, (iv) no liquidated damages shall accrue after the Shelf Term, (v) no liquidated damages shall accrue during any Acquisition
Event Period (as defined below) and (vi) no liquidated damages shall accrue after the date the shares of Common Stock then held
by such Holder are no longer Registrable Securities.

 

(d)          Restrictions
on Use of the Registration Statement. Upon written notice to the Holders of Registrable Securities, the Company shall be entitled
to suspend, for a period of time (each, a “Suspension Period”), the use of any Registration Statement or Prospectus
and shall not be required to amend or supplement the Registration Statement, any related Prospectus or any document incorporated
therein by reference if the Company determines in its reasonable good faith judgment that the Registration Statement or any Prospectus
may contain an untrue statement of a material fact or may omit any fact necessary to make the statements in the Registration Statement
or Prospectus not misleading, including, but not limited to, situations in which financial statements may be required for recent
or probable acquisitions by the Company; provided, that (i) there are no more than four Suspension Periods during the Shelf Term,
(ii) the duration of any one Suspension Period may not exceed 30 days, (iii) the duration of all Suspension Periods during the
Shelf Term may not exceed 90 days and (iv) the Company shall use its reasonable good faith efforts to amend the Registration Statement
and/or Prospectus to correct such untrue statement or omission as promptly as reasonably practicable, unless the Company, in its
sole discretion, reasonably expects such amendment would have an adverse effect on the Company with respect to any proposal or
plan of the Company to effect a merger, acquisition, disposition, financing, reorganization, recapitalization or similar transaction
or any negotiations, discussions or pending proposals with respect thereto.

 

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(e)          Rule
415; Cutback. If at any time the Commission takes the position that the offering of some or all of the Registrable Securities
in a Registration Statement is not eligible to be made on a delayed or continuous basis under the provisions of Rule 415 under
the Securities Act or requires any Holder to be named as an “underwriter,” the Company shall use its commercially reasonable
efforts to persuade the Commission that the offering contemplated by the Registration Statement is a valid secondary offering and
not an offering “by or on behalf of the issuer” as defined in Rule 415 and that the Investor is not an “underwriter.”
The Holders shall have the right to comment or have their counsel comment on any written submission made to the Commission with
respect thereto. No such written submission shall be made to the Commission to which the Holders’ counsel reasonably objects.
In the event that, despite the Company’s commercially reasonable efforts and compliance with the terms of this Section
1(e), the Commission refuses to alter its position, the Company shall (i) remove from the Registration Statement such portion
of the Registrable Securities, which for the avoidance of doubt shall include the Piggyback Shares (the “Cut Back Shares”)
and/or (ii) agree to such restrictions and limitations on the registration and resale of the Registrable Securities as the Commission
may require to assure the Company’s compliance with the requirements of Rule 415 (collectively, the “SEC Restrictions”);
provided, however, that the Company shall not agree to name any Holder as an “underwriter” in such Registration Statement
without the prior written consent of such Holder. Any cut-back imposed on the Investor pursuant to this Section 1(e) shall
be allocated among the Holders and each of the other parties named as selling stockholders on the Shelf, including the other investors
in the PIPE Transaction and holders of the Piggyback Shares (collectively, the “Shelf Selling Stockholders”),
on a pro rata basis, unless the SEC Restrictions otherwise require or provide or the Shelf Selling Stockholders otherwise agree.

 

Section
2. Holdback Agreements. In connection with any underwritten public
offering of equity securities by the Company (a “Company Underwritten Offering”),
if requested by the managing underwriter for such offering, each Holder agrees to enter into a lock-up agreement containing customary
restrictions on transfers of equity securities of the Company or any securities convertible into or exchangeable or exercisable
for such securities, without prior written consent from the Company, during the seven day period prior to and the 90 day period
after (or such shorter period as requested) beginning on the date of pricing of such underwritten offering (subject to extension
in connection with any earnings release or other release of material information pursuant to FINRA Rule 2711(f) to the extent applicable)
(the “Lock-Up Period”); provided, that nothing herein will prevent
(i)(a) any Holder that is a partnership, limited liability company or corporation from making a distribution of Registrable Securities
to the partners, members or stockholders thereof, (b) the transfer by a Holder that is an investment advisor managing a separately
managed account to the owner of the separately managed account, or (c) a transfer to an Affiliate that is otherwise in compliance
with the applicable securities laws, so long as such distributees or transferees agree to be bound by the restrictions set forth
in this Section 2, (ii) the exercise, exchange or conversion of any security exercisable or exchangeable for, or convertible into,
Common Stock, provided the Common Stock issued upon such exercise or conversion shall be subject to the restrictions set forth
in this Section 2, or (iii) any Holder from continuing market-making or other trading activities as a broker-dealer in the ordinary
course of business; provided, further, that there shall be a period of at least 30 days between the end of any Lock-Up Period and
the pricing date of any subsequent Company Underwritten Offering. If requested by the managing underwriter, each Holder agrees
to execute a lock-up agreement in favor of the Company’s underwriters to such effect and, in any event, that the Company’s
underwriters in any relevant underwritten offering shall be third party beneficiaries of this Section 2. The provisions of this
Section 2 will no longer apply to a Holder once such Holder ceases to hold Registrable Securities.

 

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Section
3. Company Undertakings.

 

In connection with the Company’s registration
obligations hereunder, the Company shall, as expeditiously as possible:

 

(a)          before
filing a Registration Statement or Prospectus, any amendments or supplements thereto or any Issuer Free Writing Prospectus, at
the Company’s expense, furnish to Counsel to the Holders, if any, copies of all such documents, other than documents that
are incorporated by reference, proposed to be filed and such other documents reasonably requested by the Holders and provide a
reasonable opportunity for review and comment on such documents by Counsel to the Holders;

 

(b)          notify
each Holder of Registrable Securities of the effectiveness of the Registration Statement and prepare and file with the Commission
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 until the date on which all Registrable Securities have been sold pursuant to the
Registration Statement or have otherwise ceased to be Registrable Securities, and comply with the provisions of the Securities
Act with respect to the disposition of all securities covered by such Registration Statement during such period in accordance with
the intended methods of disposition by the sellers thereof set forth in such Registration Statement; provided, however in no event
shall the Company be obligated to maintain the effectiveness of the Registration Statement beyond the Shelf Term and further provided,
that the Company’s obligations under this Section 3(b) shall not apply during any Suspension Period;

 

(c)          furnish
to each Holder of Registrable Securities, without charge, such number of copies of the applicable Registration Statement, each
amendment and supplement thereto, the Prospectus included in such Registration Statement (including any Prospectus (including any
Prospectus filed under Rule 424 and any Issuer Free Writing Prospectus)), all exhibits and other documents filed therewith and
such other documents as such seller may reasonably request including in order to facilitate the disposition of the Registrable
Securities owned by such seller, and upon request, a copy of any and all transmittal letters or other correspondence to or received
from, the Commission or any other governmental authority relating to such offer;

 

(d)          (i)
register or qualify such Registrable Securities under such other securities or blue sky laws of such jurisdictions as any Holder
reasonably requests, (ii) keep such registration or qualification in effect for so long as the applicable Registration Statement
remains in effect and (iii) use its commercially reasonable efforts to do any and all other acts and things which may be reasonably
necessary or advisable to enable such Holder to consummate the disposition in such jurisdictions of the Registrable Securities
owned by such seller in a manner substantially similar to those set forth in the Plan of Distribution (provided, that nothing
contained herein or in the Plan of Distribution shall require the Company to (w) qualify generally to do business in any jurisdiction
where it would not otherwise be required to qualify but for this subsection, (x) subject itself to taxation in any such jurisdiction,
(y) consent to general service of process in any such jurisdiction or (z) participate in or effect any underwritten offering on
behalf of or for the Holders of Registrable Securities;

 

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(e)          notify
each Holder of such Registrable Securities (i) at any time when a Prospectus relating to the applicable Registration Statement
is required to be delivered under the Securities Act, (A) promptly upon discovery that, or upon the happening of any event as a
result of which, such Registration Statement, or the Prospectus or Free Writing Prospectus relating to such Registration Statement,
or any document incorporated or deemed to be incorporated therein by reference contains an untrue statement of a material fact
or omits any fact necessary to make the statements in the Registration Statement or the Prospectus or Free Writing Prospectus relating
thereto not misleading or otherwise requires the making of any changes in such Registration Statement, Prospectus, Free Writing
Prospectus or document, and, at the request of any such seller and, the Company shall promptly prepare a supplement or amendment
to such Prospectus or Free Writing Prospectus, furnish a reasonable number of copies of such supplement or amendment to each seller
of such Registrable Securities and file such supplement or amendment with the Commission so that, as thereafter delivered to the
purchasers of such Registrable Securities, such Prospectus or Free Writing Prospectus as so amended or supplemented shall not contain
an untrue statement of a material fact or omit to state any fact necessary to make the statements therein not misleading, (B) promptly
if the Company becomes aware of any request by the Commission or any federal or state governmental authority for amendments or
supplements to a Registration Statement or related Prospectus or Free Writing Prospectus covering Registrable Securities or for
additional information relating thereto, (C) promptly if the Company becomes aware of the issuance or threatened issuance by the
Commission of any stop order or other order suspending or threatening to suspend the effectiveness or preventing the use of a Registration
Statement covering the Registrable Securities or suspending the qualification of any Registrable Securities included in such Registration
Statement (and use its commercially reasonable efforts to prevent the issuance of or obtain the lifting of any such stop order
or obtain the withdrawal of any order suspending or preventing the use of any related Prospectus or Free Writing Prospectus or
suspending qualification of any Registrable Securities included in the Registration Statement as soon as reasonably practicable)
or (D) promptly upon the receipt by the Company of any notification with respect to the suspension of the qualification or exemption
from qualification of any Registrable Securities for sale in any jurisdiction, or the initiation or threatening of any proceeding
for such purpose; and (ii) when each such Registration Statement or any amendment thereto has been filed with the Commission and
when each Registration Statement or the related Prospectus or Free Writing Prospectus or any Prospectus supplement or any post-effective
amendment thereto has become effective;

 

(f)          use
its commercially reasonable efforts to cause all Registrable Securities covered by a Shelf to be listed on each securities exchange,
interdealer quotation system or other market on which similar securities issued by the Company are then listed;

 

(g)          provide
and cause to be maintained a transfer agent and registrar for all such Registrable Securities no later than the effective date
of the applicable Registration Statement;

 

(h)          permit
any Holder of Registrable Securities, to participate (including, but not limited to, reviewing and commenting) in the preparation
of such Registration Statement;

 

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(i)          with
respect to each Free Writing Prospectus or other materials to be included in the Disclosure Package, ensure that no Registrable
Securities be sold “by means of” (as defined in Rule 159A(b) promulgated under the Securities Act) such Free Writing
Prospectus or other materials without the prior written consent of the Holders of a majority of the Registrable Securities that
are being sold pursuant to such Free Writing Prospectus, which Free Writing Prospectuses or other materials shall be subject to
the review of Counsel to the Holders; provided, however, the Company shall not be responsible or liable for any breach
by a Holder that has not obtained the prior written consent of the Company pursuant to Section 12(o);

 

(j)          promptly
notify in writing the Holders and the sales or placement agent, if any, therefor, (i) when such Registration Statement or related
Prospectus or Free Writing Prospectus or any Prospectus amendment or supplement or post-effective amendment has been filed, and,
with respect to any such Registration Statement or any post-effective amendment, when the same has become effective and (ii) of
any written comments by the Commission and by the blue sky or securities commissioner or regulator of any state with respect thereto;

 

(k)          (i)
prepare and file with the Commission such amendments and supplements to each Registration Statement as may be necessary to comply
with the provisions of the Securities Act, including post-effective amendments to each Registration Statement as may be necessary
to keep such Registration Statement continuously effective for the applicable time period required hereunder; (ii) cause the related
Prospectus to be supplemented by any required Prospectus supplement, and as so supplemented to be filed pursuant to Rule 424 (or
any similar provisions then in force) promulgated under the Securities Act; (iii) comply with the provisions of the Securities
Act and the Exchange Act and any applicable securities exchange or other recognized trading market with respect to the disposition
of all securities covered by such Registration Statement during such period in accordance with the intended methods of disposition
by the sellers thereof set forth in such Registration Statement as so amended or in such Prospectus as so supplemented; and (iv)
provide additional information related to each Registration Statement as requested by, and obtain any required approval necessary
from, the Commission or any federal or state governmental authority;

 

(l)          within
the deadlines specified by the Securities Act, make all required filing fee payments in respect of any Registration Statement or
Prospectus used under this Agreement (and any offering covered thereby);

 

(m)          use
its commercially reasonable efforts to take all other actions necessary or customarily taken by issuers to effect the registration
of and its commercially reasonable efforts to take all other actions necessary to effect the sale of, the Registrable Securities
contemplated hereby.

 

Section
4. Registration Expenses.All Registration Expenses shall be borne by the Company. All Selling Expenses relating
to Registrable Securities registered shall be borne by the Holders of such Registrable Securities pro rata on the
basis of the number of Registrable Securities sold.

 

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Section
5. Indemnification; Responsibility; Contribution.    The
Company agrees to indemnify and hold harmless each Holder of Registrable Securities, its officers, directors, members, partners,
agents and employees and each Person who controls any such Holder within the meaning of either the Securities Act or the Exchange
Act, to the fullest extent permitted by applicable law, from and against any and all losses, claims, damages, liabilities, expenses
and actions to which they or any of them may become subject insofar as such losses, claims, damages, liabilities and expenses (or
actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of a material fact
contained in a Registration Statement, the Disclosure Package, or any preliminary, final or summary Prospectus or Free Writing
Prospectus included in any such Registration Statement, or in any amendment thereof or supplement thereto, or arise out of or are
based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make
the statements therein (in the case of the Disclosure Package, or any preliminary, final or summary Prospectus or Free Writing
Prospectus included in any such Registration Statement (in light of the circumstances under which they were made) not misleading,
and agrees to reimburse each such indemnified party, as incurred, for any legal or other expenses reasonably incurred by them in
connection with investigating or defending any such loss, claim, damage, liability, expense or action (whether or not the indemnified
party is a party to any proceeding); provided, however, that the Company will not be liable in any case to the extent
that any such loss, claim, damage, liability or expense arises (i) out of or is based upon any such untrue statement or alleged
untrue statement or omission or alleged omission made therein in reliance upon and in conformity with written information furnished
to the Company by or on behalf of any such Holder specifically for inclusion therein including, without limitation, any notice
and questionnaire (including, for the avoidance of doubt, Exhibit B hereto), or (ii) out of sales of Registrable Securities
made during a Pre-Effective Suspension Period or a Suspension Period after notice is given pursuant to Section 1(a) and
Section 1(d) hereof, respectively. This indemnity clause will be in addition to any liability which the Company may otherwise
have.

 

(b)          Each
Holder (except the Investor), severally (and not jointly) agrees to indemnify and hold harmless the Company and each of its officers,
directors, members, partners, agents and employees and each Person who controls the Company within the meaning of either the Securities
Act or the Exchange Act, to the fullest extent permitted by applicable law, from and against any and all losses, claims, damages
or liabilities to which they or any of them may become subject insofar as such losses, claims, damages or liabilities arise out
of or are based upon any untrue statement or alleged untrue statement of a material fact contained in a Registration Statement,
in the Disclosure Package or any Holder Free Writing Prospectus, preliminary, final or summary Prospectus included in any such
Registration Statement, or in any amendment thereof or supplement thereto, or arise out of or are based upon the omission or alleged
omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case
of the Disclosure Package, or any preliminary, final or summary Prospectus or Free Writing Prospectus included in any such Registration
Statement, in light of the circumstances under which they were made) not misleading, to the extent, but only to the extent, that
any such untrue statement or alleged untrue statement or omission or alleged omission is contained in any written information relating
to such Holder furnished to the Company by or on behalf of such Holder specifically for inclusion therein; provided, however,
that the total amount to be indemnified by such Holder pursuant to this Section 5(b) shall be limited to the net proceeds
received by such Holder in the offering to which such Registration Statement, Disclosure Package, Prospectus or Holder Free Writing
Prospectus relates. This indemnity clause will be in addition to any liability which any such Holder may otherwise have. For the
avoidance of doubt, the Investor shall not be subject to the terms of this Section 5(b).

 

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(c)          The
Investor agrees that it shall be responsible for any and all written information relating to itself furnished to the Company by
or on behalf of itself specifically for inclusion in the Shelf and that such information will be true and correct in all material
respects.

 

(d)          Promptly
after receipt by an indemnified party under this Section 5 of notice of the commencement of any action, such indemnified
party will, if a claim in respect thereof is to be made against the indemnifying party under this Section 5, notify the
indemnifying party in writing of the commencement thereof; but the failure so to notify the indemnifying party (i) will not relieve
it from liability under paragraphs (a) or (b) above unless and to the extent such action and such failure results in material prejudice
to the indemnifying party and forfeiture by the indemnifying party of substantial rights and defenses; and (ii) will not, in any
event, relieve the indemnifying party from any obligations to any indemnified party other than the indemnification obligation provided
in paragraphs (a) or (b) above. The indemnifying party shall be entitled to participate therein and, to the extent that it shall
wish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory
to such indemnified party, and, except as provided in the next sentence, after notice from the indemnifying party to such indemnified
party of its election to so assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for
any legal expenses of other counsel or any other expenses subsequently incurred by such indemnified party in connection with the
defense thereof. Notwithstanding the indemnifying party’s rights in the prior sentence, the indemnified party shall have
the right to employ its own counsel (and one local counsel), but the indemnified party shall bear the reasonable fees, costs and
expenses of such separate counsel. No indemnifying party shall, in connection with any one action or separate but substantially
similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for
the fees and expenses of more than one separate firm of attorneys (in addition to any local counsel) for all indemnified parties
unless the use of only one firm of attorneys would be inappropriate due to a conflict of interest in the reasonable judgment of
the indemnified party. An indemnifying party shall not be liable under this Section 5 to any indemnified party regarding
any settlement or compromise or consent to the entry of any judgment with respect to any pending or threatened claim, action, suit
or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified parties
are actual or potential parties to such claim or action) unless such settlement, compromise or consent is consented to in writing
by such indemnifying party. No indemnifying party, in the defense of any such claim or litigation, shall, except with the consent
of each indemnified party, consent to entry of any judgment or enter into any settlement or compromise if any pending or threatened
proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder
by such indemnified party, unless such settlement or compromise includes an unconditional release of such indemnified party from
all liability on claims that are the subject matter of such proceeding.

 

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(e)          In
the event that the indemnity provided in Section 5(a) or Section 5(b) above is held by a court of competent jurisdiction
to be unavailable to or insufficient to hold harmless an indemnified party with respect to any loss, claim, damage, liability,
expense or action referred to herein, then each applicable indemnifying party agrees to contribute to the aggregate losses, claims,
damages and liabilities (including, without limitation, legal or other expenses reasonably incurred in connection with investigating
or defending same) (collectively, “Losses”) to which such indemnifying party may be subject in such proportion
as is appropriate to reflect the relative benefits received from the offering of the Common Stock, as applicable, and relative
fault of the indemnifying party on the one hand and the indemnified party on the other in connection with the statements or omissions
which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant 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 on the one hand or the indemnified party on the other and the parties’ relative intent, knowledge, access
to information and opportunity to correct or prevent such statement or omission. The parties agree that it would not be just and
equitable if contribution pursuant to this Section 5(e) were determined by pro rata allocation (even if the
Holders of Registrable Securities or any agents or all of them were treated as one entity for such purpose) or by any other method
of allocation which does not take account of the equitable considerations referred to above in this Section 5(e). The amount
paid or payable by an indemnified party as a result of the losses, claims, damages or liabilities (or actions in respect thereof)
referred to above in this Section 5(e) shall be deemed to include any legal or other expenses reasonably incurred by such
indemnified party in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this
Section 5(e), no Person guilty of fraud or 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 fraud or fraudulent misrepresentation. For purposes
of this Section 5, each Person who controls any Holder of Registrable Securities, agent or underwriter within the meaning
of either the Securities Act or the Exchange Act and each director, officer, employee and agent of any such Holder, agent or underwriter
shall have the same rights to contribution as such Holder, agent or underwriter, and each Person who controls the Company within
the meaning of either the Securities Act or the Exchange Act and each officer and director of the Company shall have the same
rights to contribution as the Company, subject in each case to the applicable terms and conditions of this Section 5(e).

 

(f)          The
provisions of this Section 5 will remain in full force and effect, regardless of any investigation made by or on behalf
of any Holder of Registrable Securities or the Company or any of the officers, directors, members, partners, agents and employees
or controlling Persons referred to in this Section 5, and will survive the transfer of Registrable Securities.

 

Section
6. Sale of Registrable Securities. It shall be a condition
precedent to the obligations of the Company to include Registrable Securities of any Holder in any Registration Statement or Prospectus,
as the case may be, that such Holder shall timely furnish to the Company (as a condition precedent to such Holder’s participation
in such registration) its Selling Holder Information in accordance with the terms hereof. Each selling Holder shall timely provide
the Company with such information as may be reasonably requested to enable the Company to prepare a supplement or post-effective
amendment to any Shelf Registration or a supplement to any Prospectus relating to such Shelf Registration.

 

    	10

    	 

    

 

Section
7. Private Sale and Legends. 

 

(a)          Except
as provided in Section 2 hereof, the Company agrees that nothing in this Agreement shall prohibit the Holders, at any time
and from time to time, from selling or otherwise transferring Registrable Securities pursuant to a private sale or other transaction
which is compliant with and not registered pursuant to the Securities Act.

 

(b)          The
Holders acknowledge that the certificate, general statement or other such instruments representing the Registrable Securities shall
bear any legend as required by the “blue sky” laws of any state and a restrictive legend in substantially the following
form (and a stop-transfer order may be placed against transfer of such stock certificates or general statements):

 

THE SECURITIES REPRESENTED HEREBY HAVE NOT
BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES
LAWS. THE HOLDER HEREOF, BY PURCHASING SUCH SECURITIES, AGREES FOR THE BENEFIT OF THE ISSUER THAT THESE SECURITIES MAY BE OFFERED,
SOLD OR OTHERWISE TRANSFERRED ONLY (A) TO THE ISSUER, (B) PURSUANT TO REGISTRATION UNDER THE SECURITIES ACT, (C) OUTSIDE THE UNITED
STATES PURSUANT TO REGULATION S UNDER THE SECURITIES ACT, (D) INSIDE THE UNITED STATES PURSUANT TO THE EXEMPTION FROM REGISTRATION
UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER, IF AVAILABLE, OR (E) IN A TRANSACTION THAT IS OTHERWISE EXEMPT FROM
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, AND IN EACH CASE IN COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS AND THE
APPLICABLE LAWS OF ANY OTHER JURISDICTION, PROVIDED THAT IN THE CASE OF (C), (D) or (E) ABOVE, THE HOLDER HAS, PRIOR TO
SUCH SALE, FURNISHED TO THE ISSUER A LEGAL OPINION OF COUNSEL OF RECOGNIZED STANDING, REASONABLY SATISFACTORY TO THE ISSUER. HEDGING
TRANSACTIONS INVOLVING THESE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES ACT.”

 

Section
8. Rule 144 and Rule 144A.With a view to making available to the Holders of Registrable Securities the benefits
of Rule 144 and Rule 144A promulgated under the Securities Act (“Rule 144” and “Rule 144A”)
and other rules and regulations of the Commission that may at any time permit a Holder of Registrable Securities to sell securities
of the Company to the public without registration, the Company covenants that it will (i) use its commercially reasonable efforts
to file in a timely manner all reports and other documents required, if any, to be filed by it under the Securities Act and the
Exchange Act and the rules and regulations adopted thereunder and (ii) make available information necessary to comply with Rule
144 and Rule 144A, if available with respect to resales of the Registrable Securities under the Securities Act, at all times, 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 (x) Rule 144 and Rule 144A promulgated under the Securities Act (if available
with respect to resales of the Registrable Securities), as such rules may be amended from time to time or (y) any other rules or
regulations now existing or hereafter adopted by the Commission.

 

    	11

    	 

    

 

Section
9. Transfer of Registration Rights.The rights of a Holder hereunder may be transferred, assigned, or otherwise
conveyed on a pro rata basis in connection with any transfer, assignment, or other conveyance of Registrable Securities
(other than the Piggyback Shares) to any transferee or assignee; provided that all of the following additional conditions
are satisfied: (a) such transfer or assignment is effected in accordance with applicable securities laws; (b) such transferee
or assignee agrees in writing to become subject to the terms of this Agreement by delivering to the
Company a duly executed joinder agreement; and (c) the Company is given written notice by such Holder of such transfer
or assignment, stating the name and address of the transferee or assignee and identifying the Registrable Securities with respect
to which such rights are being transferred or assigned. For the avoidance of doubt, the rights of a Holder of Piggyback Shares
shall not be transferable with respect to any transfer of Piggyback Shares.

 

Section
10. Joinder. 

 

Any Person who demonstrates that it is a Holder
of Registrable Securities as of the date of the Registration Notice may acquire the rights of a Holder hereunder if it agrees in
writing to become subject to the terms of this Agreement as a Holder by delivering to the Company a duly executed joinder agreement
in form attached hereto as Exhibit C.

 

Section
11. Amendment, Modification and Waivers.

 

(a)          Amendment.
The provisions of this Agreement, including the provisions of this sentence, may not be amended, modified or supplemented, and
waivers or consents to or departures from the provisions hereof may not be given, without the written consent of the Company and
the Holder or Holders of a majority of the Registrable Securities. In the event of such amendment, modification or waiver, the
Company shall use its commercially reasonable efforts to provide prompt written notice to the Investor of such amendment, modification
or waiver. Notwithstanding the foregoing, Section 5 and Section 12(g) as relates to the Investor and Sections 12(a), 12(j) and
12(s) may not be amended, modified or supplemented, and waivers or consents to or departures from the provisions thereof may not
be given, without the written consent of the Investor.

 

(b)          Effect
of Waiver. No waiver of any terms or conditions of this Agreement shall operate as a waiver of any other breach of such terms
and conditions or any other term or condition, nor shall any failure of any party to enforce any provision hereof operate or be
construed as a waiver of such provision or of any other provision hereof and shall not affect the right of such party thereafter
to enforce each provision of this Agreement in accordance with its terms. No written waiver hereunder, unless it by its own terms
explicitly provides to the contrary, shall be construed to effect a continuing waiver of the provisions being waived and no such
waiver in any instance shall constitute a waiver in any other instance or for any other purpose or impair the right of the party
against whom such waiver is claimed in all other instances or for all other purposes to require full compliance with such provision.

 

    	12

    	 

    

 

Section
12. Miscellaneous; Remedies; Specific Performance. 

 

(a)          Specific
Performance. Any Person having rights under any provision of this Agreement shall be entitled to seek to enforce such rights
specifically, to recover damages caused by reason of any breach of any provision of this Agreement and to exercise all other rights
existing in their favor. The parties hereto agree and acknowledge that money damages may not be an adequate remedy for any breach
of the provisions of this Agreement and that any party may in its sole discretion apply to any court of law or equity of competent
jurisdiction for specific performance and/or injunctive relief (without posting any bond or other security) in order to enforce
or prevent violation of the provisions of this Agreement. The parties hereto further agree and acknowledge that each and every
obligation applicable to it contained in this Agreement may be specifically enforceable against it. All rights and remedies existing
under this Agreement are cumulative to, and not exclusive of, any rights or remedies available under this Agreement or otherwise.

 

(b)          Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors
and assigns; provided, that no party shall assign any of its rights or obligations hereunder without the prior written consent
of the other party, except that the right to cause the Company to register Registrable Securities hereunder may be assigned (but
only with all related obligations) by a Holder, in compliance with all applicable securities laws, to a transferee who acquires
all or any part of such Holder’s Registrable Securities from the Holder, as long as such transferee agrees in writing to
be bound by the provisions of this Agreement.

 

(c)          Severability.
Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this Agreement is held to be prohibited by or invalid under applicable law, such provision shall be
ineffective only to the extent of such prohibition or invalidity, without prohibiting or invalidating the remainder of this Agreement.

 

(d)          Counterparts.
This Agreement may be executed simultaneously in two or more counterparts, any one of which need not contain the signatures of
more than one party, but all such counterparts taken together shall constitute one and the same Agreement.

 

(e)          Descriptive
Headings; Interpretation; No Strict Construction. The descriptive headings of this Agreement are inserted for convenience only
and do not constitute a substantive part of this Agreement. Whenever required by the context, any pronoun used in this Agreement
shall include the corresponding masculine, feminine or neuter forms, and the singular forms of nouns, pronouns, and verbs shall
include the plural and vice versa. Reference to any agreement, document, or instrument means such agreement, document, or instrument
as amended or otherwise modified from time to time in accordance with the terms thereof, and, if applicable, hereof. The words
“include,” “includes” or “including” in this Agreement shall be deemed to be followed by “without
limitation.” The use of the words “or,” “either” or “any” shall not be exclusive. The
parties hereto have participated jointly in the negotiation and drafting of this Agreement. If an ambiguity or question of intent
or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties hereto, and no presumption or
burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement.
All references to laws, rules, regulations and forms in this Agreement shall be deemed to be references to such laws, rules, regulations
and forms, as amended from time to time or, to the extent replaced, the comparable successor thereto in effect at the time. All
references to agencies, self-regulatory organizations or governmental entities in this Agreement shall be deemed to be references
to the comparable successors thereto from time to time.

 

    	13

    	 

    

 

(f)          Governing
Law. This Agreement and the exhibits and schedules hereto shall be governed by, and construed in accordance with, the laws
of the State of New Jersey, without giving effect to any choice of law or conflict of law rules or provisions (whether of the State
of New Jersey or any other jurisdiction) to the extent such rules or provisions would cause the application of the laws of any
jurisdiction other than the State of New Jersey.

 

(g)          Notices.
All notices, demands or other communications to be given or delivered under or by reason of the provisions of this Agreement shall
be in writing and shall be deemed to have been given when (a) delivered personally to the recipient, (b) telecopied or sent by
facsimile or e-mail to the recipient, or (c) one Business Day after being sent to the recipient by reputable overnight courier
service (charges prepaid). Such notices, demands and other communications shall be sent to the Company at the address set forth
below and to any Holder of Registrable Securities at the address set forth on the signature page hereto, or at such address or
to the attention of such other Person as the recipient party has specified by prior written notice to the sending party. Notwithstanding
anything to the contrary contained herein, including without limitation Section 12(h) hereof, facsimile shall not be deemed an
effective method of delivery of notices and communications to the Investor.

 

If to the Company:

 

Sequential Brands Group, Inc.

1065 Avenue of the Americas

30th Floor

New York, NY 10018

Attention:   Gary Klein, CFO

 

with copies (which shall not constitute notice) to:

 

White & Case LLP

1155 Avenue of the Americas

New York,  New York
10036

Attention:   Nazim Zilkha

                   David
Johansen

 

if to the Transfer Agent:

 

Computershare Trust Company, N.A.

250 Royall Street

Canton, MA 02021

Attention:   General Counsel

 

    	14

    	 

    

 

with copies (which shall not constitute notice) to:

 

Computershare

480 Washington Blvd. 29th Floor

Jersey City, NJ 07310

Attention: David Cruz, Relationship Manager

 

If any time period for giving notice or taking
action hereunder expires on a day that is not a Business Day, the time period shall automatically be extended to the Business Day
immediately following such Saturday, Sunday or legal holiday.

 

(h)          Delivery
by Facsimile. This Agreement, the agreements referred to herein, and each other agreement or instrument entered into in connection
herewith or therewith or contemplated hereby or thereby, and any amendments hereto or thereto, to the extent signed and delivered
by means of a facsimile machine or other electronic means, shall be treated in all manner and respects as an original agreement
or instrument and shall be considered to have the same binding legal effect as if it were the original signed version thereof delivered
in person. At the request of any party hereto or to any such agreement or instrument, each other party hereto or, thereto shall
reexecute original forms thereof and deliver them to all other parties. No party hereto or to any such agreement or instrument
shall raise the use of a facsimile machine or other electronic means to deliver a signature or the fact that any signature or agreement
or instrument was transmitted or communicated through the use of a facsimile machine or other electronic means as a defense to
the formation or enforceability of a contract and each such party forever waives any such defense.

 

(i)          Jury
Trial. Each of the parties to this Agreement hereby agrees not to assert its respective right to a jury trial of any claim
or cause of action based upon or arising out of this Agreement. The scope of this Section 12(i) is intended to be all-encompassing
of any and all disputes that may be filed in any court and that relate to the subject matter of this Agreement, including contract
claims, tort claims and all other common law and statutory claims. Each party hereto acknowledges that this Section 12(i)
is a material inducement to enter into this Agreement, that each has already relied on this Section 12(i) in entering into
this Agreement, and that each will continue to rely on this Section 12(i) in their related future dealings. Each party hereto
further warrants and represents that it has reviewed this Section 12(i) with its legal counsel and that it knowingly and
voluntarily agrees not to assert its jury trial rights following consultation with legal counsel. THIS SECTION 12(i) IS
IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING (OTHER THAN BY A MUTUAL WRITTEN WAIVER SPECIFICALLY
REFERRING TO THIS SECTION 12(i) AND EXECUTED BY EACH OF THE PARTIES HERETO), AND THIS SECTION 12(i) SHALL APPLY TO
ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT. In the event of litigation, this Agreement
may be filed as a written consent to a trial by the court.

 

    	15

    	 

    

 

(j)          Submission
to Jurisdiction. With respect to any suit, action or proceeding relating to any offers, purchases or sales of the Securities
by the undersigned (“Proceedings”), the undersigned irrevocably submits to the exclusive jurisdiction of the
trial division of the Superior Court of the State of New Jersey, and such Proceedings shall be governed by the procedural rules
and laws of the State of New Jersey, without regard to principles of conflicts of law. The Investor shall not be deemed to have
waived any objection it may now or hereafter have to the laying of jurisdiction or venue or any such Proceedings in any courts
other than the courts of the State of New Jersey, nor deemed to waive any claim that any such Proceedings brought in any such court
has been brought in a court without jurisdiction or an inconvenient or improper forum.

 

(k)          Arm’s
Length Agreement. Each of the parties to this Agreement agrees and acknowledges that this Agreement has been negotiated in
good faith, at arm’s length, and not by any means prohibited by law.

 

(l)          Sophisticated
Parties; Advice of Counsel. Each of the parties to this Agreement specifically acknowledges that (i) it is a knowledgeable,
informed, sophisticated Person capable of understanding and evaluating the provisions set forth in this Agreement and (ii) it has
been fully advised and represented by legal counsel of its own independent selection and has relied wholly upon its independent
judgment and the advice of such counsel in negotiating and entering into this Agreement.

 

(m)          Entire
Agreement. This Agreement, together with the schedules and exhibits attached hereto, and any certificates, documents, instruments
and writings that are delivered pursuant hereto, constitutes the entire agreement and understanding of the parties in respect of
the subject matter hereof and supersedes all prior understandings, agreements or representations by or among the parties, written
or oral, to the extent they relate in any way to the subject matter hereof.

 

(n)          Certification.
Within 10 Business Days following receipt of a written request from the Company by any Holder (which request shall not be made
more than twice in any calendar year), such Holder shall certify to the Company that such Holder continues to hold Registrable
Securities (the “Certification”). If a Holder fails to provide the Certification within the 10 Business Day
period referred to in the immediately preceding sentence, the Company reserves the right, in its sole discretion, to remove such
Holder’s Registrable Securities from a Registration Statement.

 

(o)          Free
Writing Prospectus Consent. No Holder shall use a Holder Free Writing Prospectus without the prior written consent of the Company,
which consent shall not be unreasonably withheld, conditioned or delayed.

 

(p)          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.

 

(q)          Termination.
The obligations of the Company and of any Holder, other than those obligations contained in Section 5, shall terminate with
respect to the Company and such Holder as soon as such Holder no longer holds any Registrable Securities.

 

    	16

    	 

    

 

(r)          No
Third-Party Beneficiaries or Other Right. Nothing herein shall grant to or create in any person not a party hereto, or any
such person’s dependents or heirs, any right to any benefits hereunder or any remedies hereunder, and no such party shall
be entitled to sue any party to this Agreement with respect thereto; provided, however, that the officers, directors,
members, partners, agents and employees of each indemnified party and each Person who controls any such indemnified party within
the meaning of either the Securities Act or the Exchange Act are intended third-party beneficiaries of Section 5 and shall
have the right, power, and authority to enforce the provisions thereof as though they were a party hereto.

 

(s)          Sovereign
Immunity. The Investor reserves all immunities, defenses, rights or actions arising out of the Investor’s sovereign and
governmental status or under the Eleventh Amendment to the United States Constitution and the laws and Constitution of the State
of New Jersey, except to the extent waived by statute. No waiver of any such immunities, defenses, rights or actions shall be implied
or otherwise deemed to exist by reason of the Investor’s entry into this Agreement, the Purchase Agreement and any other
documents or agreements executed in connection with the transactions contemplated under the Purchase Agreement, by any express
or implied provision hereof, or by any actions or omissions to act by the Investor. Any claims asserted against the Investor shall
be subject to the New Jersey Contractual Liability Act and the New Jersey Tort Claims Act.

 

Section
13. Definitions.“Affiliate” of any particular Person means any other Person directly
or indirectly controlling, controlled by or under common control with such particular Person.

 

“Acquisition Event Period”
means any period prior to the effective date of the Shelf during which the Company is pursuing and has not yet completed any announced
or unannounced merger or acquisition transaction in respect to which the Company has entered into a binding or non-binding letter
of intent, exclusivity letter or other documentation in anticipation of definitive documentation.

 

“Agreement” has the meaning
specified in the first paragraph hereof.

 

“Beneficial Ownership”
and terms of similar import shall be as defined under and determined pursuant to Rule 13d-3 promulgated under the Exchange Act.

 

“Business Day” means each
Monday, Tuesday, Wednesday, Thursday and Friday that is not a day on which banking institutions in New York City are generally
authorized or obligated by law or executive order to close.

 

“Certification” has the
meaning specified in Section 12(n).

 

“Closing Date” has the
meaning specified in Section 1(b).

 

“Commission” means the
United States Securities and Exchange Commission or any successor governmental agency.

 

“Company” has the meaning
specified in the first paragraph hereof.

 

“Company Underwritten Offering”
has the meaning specified in Section 2.

 

    	17

    	 

    

 

“Common Stock” means the
shares of common stock, par value $0.001 per share, and any additional shares of such common stock paid, issued or distributed
in respect of any such shares by way of a stock dividend, stock split or distribution, or in connection with a combination of shares,
and any such security into which such Common Stock shall have been converted or exchanged in connection with a recapitalization,
reorganization, reclassification, merger, consolidation, exchange, distribution or otherwise.

 

“control” (including the
terms “controlling,” “controlled by” and “under common control with”) means, unless otherwise
noted, the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of
a Person, whether through the ownership of voting shares, by contract, or otherwise.

 

“Counsel to the Holders”
means, one counsel (and one local counsel) selected from time to time by the Holders of a majority of the Registrable Securities.

 

“Cut Back Shares” has the
meaning specified in Section 1(e).

 

“Disclosure Package” means,
with respect to any offering of securities, (i) the preliminary prospectus, (ii) each Free Writing Prospectus and (iii) all other
information, in each case, that is deemed, under Rule 159 promulgated under the Securities Act, to have been conveyed to purchasers
of securities at the time of sale of such securities (including a contract of sale).

 

“Effectiveness Deadline”
has the meaning specified in Section 1(a).

 

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

 

“Filing Deadline” has the
meaning specified in Section 1(a).

 

“FINRA” means the Financial
Industry Regulatory Authority.

 

“Form S-1” means such form
under the Securities Act, as amended from time to time by the Commission.

 

“Form S-3” means such form
under the Securities Act, as amended from time to time by the Commission.

 

“Form S-3 Shelf” has the
meaning specified in Section 1(b).

 

“Free Writing Prospectus”
means any “free writing prospectus” as defined in Rule 405 promulgated under the Securities Act.

 

“Grace Period” has the
meaning specified in Section 1(c).

 

“Holder” and “Holders”
have the meanings specified in the first paragraph hereof.

 

    	18

    	 

    

 

“Holder Free Writing Prospectus”
means each Free Writing Prospectus prepared by or on behalf of the relevant Holder or used or referred to by such Holder in connection
with the offering of Registrable Securities.

 

“Investor” has the meaning
specified in the first paragraph hereof.

 

“Issuer Free Writing Prospectus”
means an “issuer free writing prospectus” under Rule 433 promulgated under the Securities Act.

 

“Lock-Up Period” has the
meaning specified in Section 2.

 

“Losses” has the meaning
specified in Section 5(e).

 

“Person” means an individual,
a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, an
unincorporated organization, a governmental entity or any department, agency or political subdivision thereof or any other entity.

 

“Piggyback Shares” means
the shares of common stock of the Company: (i) held by TCP WR Acquisition, LLC (“TCP”) and issued pursuant to
the purchase agreement by and between the Company and TCP, dated February 2, 2012 and (ii) acquired in the private placement transaction
conducted by the Company and closed January 9, 2013, by certain Affiliates of the Company, as of the date hereof.

 

“PIPE Transaction” has
the meaning specified in the recitals.

 

“Plan of Distribution”
has the meaning specified in Section 1(a).

 

“Pre-Effective Suspension Period”
has the meaning specified in Section 1(a).

 

“Prospectus” means the
prospectus used in connection with a Registration Statement and any amendments or supplements thereto.

 

“Purchase Agreement” has
the meaning specified in the recitals.

 

“Purchase Amount” has the
meaning specified in Section 1(c).

 

“Registrable Securities”
means, at any time, any shares of Common Stock acquired in the PIPE Transaction and any Piggyback Shares; provided, however,
that, as to any Registrable Securities, such securities shall cease to constitute Registrable Securities upon the earliest to occur
of: (i) the date that is six months from the Closing Date, unless at the time of the date that is six months from the Closing Date
at least 25% of the shares of Common Stock issued pursuant to the PIPE Transaction are held by Affiliates of the Company, in which
case the date shall be the earlier of the date that is one year from the Closing Date or the date as of when at least 25% of the
shares of Common Stock issued pursuant to the PIPE Transaction shall cease to be held by Affiliates of the Company; (ii) the date
on which such securities are disposed of pursuant to an effective registration statement under the Securities Act; (iii) the date
on which such securities are disposed of pursuant to Rule 144 (or any successor provision) promulgated under the Securities Act
(or by similar provision under the Securities Act); (iv) the date on which such securities may no longer be deemed “restricted
securities” as defined in Rule 144(a)(3) under the Securities Act; (v) with respect to the Registrable Securities held by
any Holder, any time that such Holder is permitted sell such Registrable Securities under Rule 144(b)(1) (or by similar provision
under the Securities Act); and (vi) the date on which such securities cease to be outstanding. For the purposes of this Agreement,
a Person shall be deemed to be a holder of Registrable Securities whenever such Person has the right to acquire such Registrable
Securities (upon conversion or exercise in connection with a transfer of securities or otherwise, but disregarding any restrictions
or limitation upon the exercise of such right), whether or not such acquisition has been effected.

 

    	19

    	 

    

 

“Registration Expenses”
means all expenses arising from or incident to the registration of Registrable Securities in compliance with this Agreement, including,
without limitation, (i) Commission, stock exchange, FINRA and other registration and filing fees, (ii) all fees and expenses incurred
in connection with complying with any securities or “blue sky” laws (including, without limitation, fees, charges and
disbursements of counsel in connection with “blue sky” qualifications of the Registrable Securities), (iii) all printing,
messenger and delivery expenses, (iv) the fees, charges and disbursements of counsel to the Company and of its independent public
accountants and any other accounting and legal fees, charges and expenses incurred by the Company, (v) the fees and expenses incurred
in connection with the quotation of Registrable Securities on any inter-dealer quotation system and (vi) the reasonable fees, charges
and disbursements of Counsel to the Holders, including, for the avoidance of doubt, any expenses of Counsel to the Holders in connection
with the filing or amendment of any Registration Statement, Prospectus or Free Writing Prospectus hereunder.

 

“Registration Notice” has
the meaning specified in Section 1(a).

 

“Registration Statement”
means any registration statement filed hereunder.

 

“Rule 144A” has the meaning
specified in Section 8.

 

“Securities Act” means
the Securities Act of 1933, as amended from time to time.

 

“SEC Comments” has the
meaning specified in Section 1(a).

 

“SEC Restrictions” has
the meaning specified in Section 1(e).

 

“Selling Expenses” means
the underwriting fees, discounts, selling commissions and stock transfer taxes applicable to all Registrable Securities registered
by the Holders and legal expenses, expect as otherwise provided in the Purchase Agreement or other documents regarding the PIPE
Transaction.

 

“Selling Holder Information”
has the meaning specified in Section 1(a).

 

“Shelf” has the meaning
specified in Section 1(a).

 

“Shelf Amendment” has the
meaning specified in Section 1(b).

 

    	20

    	 

    

 

“Shelf Amendment Notice”
has the meaning specified in Section 1(b).

 

“Shelf Registration” means
a registration of securities pursuant to a registration statement filed with the Commission in accordance with and pursuant to
Rule 415 promulgated under the Securities Act (or any successor rule then in effect).

 

“Shelf Selling Stockholder”
has the meaning specified in Section 1(e).

 

“Shelf Term” has the meaning
specified in Section 1(b).

 

“Suspension Period” has
the meaning specified in Section 1(d).

 

* * *

 

    	21

    	 

    

 

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

 

	 	SEQUENTIAL BRANDS GROUP, INC.
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

 

    	 

    	 

    

 

	 	Holder Name:	 	 

 

	 	By:	 	 
	 	 	Name:	 
	 	 	Title:	 

 

	 	Address for Notices:	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	Facsimile:	 	 
	 	Attention:	 	 

  

 

    	 

    	 

    

 

EXHIBIT A

 

PLAN OF DISTRIBUTION

 

The selling stockholders,
which as used herein includes donees, pledgees, transferees or other successors-in-interest selling shares of common stock or interests
in shares of common stock received after the date of this prospectus from a selling stockholder as a gift, pledge, partnership
distribution or other transfer, may, from time to time, sell, transfer or otherwise dispose of any or all of their shares of common
stock or interests in shares of common stock on any stock exchange, market or trading facility on which the shares are traded or
in private transactions. These dispositions may be at fixed prices, at prevailing market prices at the time of sale, at prices
related to the prevailing market price, at varying prices determined at the time of sale, or at negotiated prices.

 

The selling stockholders
may use any one or more of the following methods when disposing of shares or interests therein:

 

·          ordinary
brokerage transactions and transactions in which the broker-dealer solicits purchasers;

 

·          block
trades in which the broker-dealer will attempt to sell the shares as agent, but may position and resell a portion of the block
as principal to facilitate the transaction;

 

·          purchases
by a broker-dealer as principal and resale by the broker-dealer for its account;

 

·          an
exchange distribution in accordance with the rules of the applicable exchange;

 

·          privately
negotiated transactions;

 

·          short
sales effected after the date the registration statement of which this Prospectus is a part is declared effective by the Commission;

 

·          through
the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise;

 

·          broker-dealers
may agree with the selling stockholders to sell a specified number of such shares at a stipulated price per share;

 

·          a
combination of any such methods of sale; and

 

·          any
other method permitted by applicable law.

 

    	 

    	 

    

 

The selling stockholders
may, from time to time, pledge or grant a security interest in some or all of the shares of common stock owned by them and, if
they default in the performance of their secured obligations, the pledgees or secured parties may offer and sell the shares of
common stock, from time to time, under this prospectus, or under an amendment to this prospectus under Rule 424(b)(3) or other
applicable provision of the Securities Act amending the list of selling stockholders to include the pledgee, transferee or other
successors in interest as selling stockholders under this prospectus. The selling stockholders also may transfer the shares of
common stock in other circumstances, in which case the transferees, pledgees or other successors in interest will be the selling
beneficial owners for purposes of this prospectus.

 

In connection with the
sale of our common stock or interests therein, the selling stockholders may enter into hedging transactions with broker-dealers
or other financial institutions, which may in turn engage in short sales of the common stock in the course of hedging the positions
they assume. The selling stockholders may also sell shares of our common stock short and deliver these securities to close out
their short positions, or loan or pledge the common stock to broker-dealers that in turn may sell these securities. The selling
stockholders may also enter into option or other transactions with broker-dealers or other financial institutions or the creation
of one or more derivative securities which require the delivery to such broker-dealer or other financial institution of shares
offered by this prospectus, which shares such broker-dealer or other financial institution may resell pursuant to this prospectus
(as supplemented or amended to reflect such transaction).

 

The aggregate proceeds
to the selling stockholders from the sale of the common stock offered by them will be the purchase price of the common stock less
discounts or commissions, if any. Each of the selling stockholders reserves the right to accept and, together with their agents
from time to time, to reject, in whole or in part, any proposed purchase of common stock to be made directly or through agents.
We will not receive any of the proceeds from this offering.

 

The selling stockholders
also may resell all or a portion of the shares in open market transactions in reliance upon Rule 144 under the Securities
Act of 1933, provided that they meet the criteria and conform to the requirements of that rule.

 

The selling stockholders
and any underwriters, broker-dealers or agents that participate in the sale of the common stock or interests therein may be “underwriters”
within the meaning of Section 2(11) of the Securities Act. Any discounts, commissions, concessions or profit they earn on
any resale of the shares may be underwriting discounts and commissions under the Securities Act. Selling stockholders who are “underwriters”
within the meaning of Section 2(11) of the Securities Act will be subject to the prospectus delivery requirements of the Securities
Act.

 

To the extent required,
the shares of our common stock to be sold, the names of the selling stockholders, the respective purchase prices and public offering
prices, the names of any agents, dealer or underwriter, any applicable commissions or discounts with respect to a particular offer
will be set forth in an accompanying prospectus supplement or, if appropriate, a post-effective amendment to the registration statement
that includes this prospectus.

 

In order to comply with
the securities laws of some states, if applicable, the common stock may be sold in these jurisdictions only through registered
or licensed brokers or dealers. In addition, in some states the common stock may not be sold unless it has been registered or qualified
for sale or an exemption from registration or qualification requirements is available and is complied with.

 

 

    	 

    	 

    

 

We have advised the selling
stockholders that the anti-manipulation rules of Regulation M under the Exchange Act may apply to sales of shares in the market
and to the activities of the selling stockholders and their affiliates. In addition, to the extent applicable we will make copies
of this prospectus (as it may be supplemented or amended from time to time) available to the selling stockholders for the purpose
of satisfying the prospectus delivery requirements of the Securities Act. The selling stockholders may indemnify any broker-dealer
that participates in transactions involving the sale of the shares against certain liabilities, including liabilities arising under
the Securities Act.

 

We have agreed to indemnify
the selling stockholders against certain liabilities, including liabilities under the Securities Act and state securities laws,
relating to the registration of the shares offered by this prospectus.

 

We have agreed with the
selling stockholders to keep the registration statement of which this prospectus constitutes a part effective until the earlier
of (1) such time as all of the shares covered by this prospectus have been disposed of pursuant to and in accordance with the registration
statement or (2) the date on which all of the shares may be sold without restriction pursuant to Rule 144 of the Securities
Act.

 

 

    	 

    	 

    

 

EXHIBIT B

 

SEQUENTIAL
BRANDS GROUP, INC

 

Notice and Eligible Holder Information
Questionnaire

 

The undersigned beneficial
owner of capital stock of Sequential Brands Group, Inc., a Delaware corporation (the “Company”), understands
that the Company has filed or intends to file with the Securities and Exchange Commission (the “SEC”) one or
more registration statements (collectively, the “Registration Statement”) for the registration and resale under
Rule 415 of the Securities Act of 1933, as amended (the “Securities Act”), of the Registrable Securities in
accordance with the terms of the Registration Rights Agreement of which this questionnaire is a part (the “Registration
Rights Agreement”), dated as of July 26, 2013 (the “Closing Date”), by and among the Company and the
parties identified as the “Holders” on the signature page thereto. All capitalized terms not otherwise defined herein
shall have the meaning ascribed thereto in the Registration Rights Agreement.

 

Certain legal consequences
arise from being named as a selling securityholder in the Registration Statement and the related prospectus, as the case may be.
Accordingly, holders and beneficial owners of Registrable Securities are advised to consult their own securities law counsel regarding
the consequences of being named or not being named as an Eligible Holder in the Registration Statement and the related prospectus.

 

NOTICE

 

The undersigned beneficial
owner (the “Eligible Holder”) of Registrable Securities hereby elects to include some or all of the Registrable
Securities owned by it in the Registration Statement. In order to sell or otherwise dispose of any Registrable Securities pursuant
to the Registration Statement, a beneficial owner of Registrable Securities generally will be required to be named as a selling
securityholder in the related prospectus and deliver a prospectus to each purchaser of Registrable Securities.

 

If you wish to include
the Registrable Securities beneficially owned by you in the Registration Statement (or a supplement or amendment thereto), you
must complete, sign and deliver this Notice of Registration Statement and Eligible Holder Information Questionnaire (“Notice
and Questionnaire”) to the Company at the address set forth herein on or prior to the fifth (5th)
business day prior to filing of the Registration Statement (or supplement or amendment, as applicable). If you fail to do so, you
will not be named as an Eligible Holder in the Registration Statement and may not be able to use the prospectus forming a part
thereof to resell the Registrable Securities that you hold.

 

COMPLETED NOTICE AND QUESTIONNAIRE

 

PLEASE SEND BY PDF A COPY OF THE COMPLETED
AND EXECUTED NOTICE AND QUESTIONNAIRE TO: Sarah Travis at sarah.travis@whitecase.com. 

 

 

 

 

    	 

    	 

    

 

The undersigned hereby provides the following
information to the Company and represents and warrants that such information is accurate:

 

QUESTIONNAIRE

 

1.          Name
and Security Ownership

 

(a)          Full
legal name of each registered holder of Registrable Securities and number of Registrable Securities held:

 

	
        Name
	
	
        Number of Registrable

        Securities

	 	 	 
	 	 	 
	 	 	 
	 	 	 

  

(b)          Full
legal name of each registered holder of any other securities of the Company and number of such securities held

 

	
        Name
	
	
        Number of Other Securities

	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

2.          Securities
To Be Included In the Registration Statement

 

(a)          Do
you wish to include in the registration statement all of the Registrable Securities listed in item 1(a) above?

 

Yes  ̈
         No  ̈

 

(b)          If
your answer to item 2(a) above is “no,” please specify below the number of shares that you wish to include:

 

	
        Name
	
	
        Number of Registrable

        Securities

	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

 

    	 

    	 

    

 

		3.	Beneficial Ownership of Securities of the Company Owned by the Eligible Holder(s)

 

“Beneficial ownership”
is determined according to rules of the SEC. Securities are “beneficially owned” by any person who, directly or indirectly,
through any contract, arrangement, understanding, relationship, or otherwise has or shares (i) voting power, which includes the
power to vote, or to direct the voting of, such security, and/or, (ii) investment power, which includes the power to dispose, or
to direct the disposition of, such security. The definition of beneficial ownership often requires disclosure of the individual
or groups of individuals who have or share voting or investment power over the shares in question.

 

Please describe below or attach
as a separate sheet a detailed description of the beneficial ownership of the Registrable Securities and any other securities of
the Company held by the Eligible Holder. We recommend that you consult with your own securities law counsel as some or all of the
description below will be included in the Registration Statement. You should also indicate clearly whether one or more of the beneficial
owners disclaims beneficial ownership except to the extent of his, her or its pecuniary interest in the securities. Annex A hereto
provides a typical example of beneficial ownership disclosure.

 

	 
	 
	 
	 
	 
	 
	 

  

4. Relationships with the Company:

 

Except as set forth below, neither
the undersigned nor any of its affiliates, officers, directors or principal equity holders (owners of 5% of more of the equity
securities of the undersigned) has held any position or office or has had any other material relationship with the Company (or
its predecessors or affiliates) during the past three (3) years.

 

State
any exceptions here:

 

	 
	 

 

5. Broker-Dealer Status:

 

(a)          Is
any Eligible Holder a broker-dealer? 

 

Yes  ̈
         No  ̈

 

 

    	 

    	 

    

 

(b)           If
the answer is “yes” to item 5(a) above, did such Eligible Holder receive the Registrable Securities as compensation
for investment banking services to the Company?

 

Yes  ̈
         No  ̈

 

Note:If the answer is
“no” to this item 5(b), the SEC’s staff has indicated that you should be identified as an underwriter in the
Registration Statement.

 

(c)           Is
any Eligible Holder an affiliate of a broker-dealer?

 

Yes  ̈
         No  ̈

 

(d)           If
any of the Eligible Holders is an affiliate of a broker-dealer, do you certify that such Eligible Holder purchased the Registrable
Securities in the ordinary course of business, and at the time of the purchase of the Registrable Securities to be resold, had
no agreements or understandings, directly or indirectly, with any person to distribute the Registrable Securities?

 

Yes  ̈
         No  ̈

 

Note:If the answer is
“no” to this item 5(d), the SEC’s staff has indicated that the Eligible Holder should be identified as an underwriter
in the Registration Statement.

 

Please provide any further information here:

 

	 
	 
	 
	 
	 
	 

 

6. Address for Notices to Selling
Holder:

 

	Contact Person:
	Contact Person Email Address:
	Telephone:
	Fax:

  

The undersigned agrees
to promptly notify the Company of any inaccuracies or changes in the information provided herein that may occur subsequent to the
date hereof at any time while the Registration Statement remains effective.

 

 

    	 

    	 

    

 

By signing below, the
undersigned consents to the disclosure of the information contained herein in its answers to items one (1) through five (5) and
the inclusion of such information in the Registration Statement and the related prospectus and any amendments or supplements thereto,
as the case may be. The undersigned understands that such information will be relied upon by the Company in connection with the
preparation or amendment of the Registration Statement and the related prospectus.

 

IN WITNESS WHEREOF
the undersigned, by authority duly given, has caused this Notice and Questionnaire to be executed and delivered either in person
or by its duly authorized agent.

 

	 	Beneficial Owner(s):	 

 

	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	Date:	 

 

 

    	 

    	 

    

 

ANNEX A 

 

Model Beneficial Ownership Disclosure:

 

ABC Fund Management L.P. (“ABC Management
LP”) is the investment manager for ABC Capital Fund (“ABC Capital”) and ABC Capital II Fund (“ABC Capital
II” and, together with ABC Capital, the “ABC Funds”).  ABC Capital Management LLC (“ABC Management
LLC”) is the general partner of ABC Management LP.  The managing members of ABC Management LLC are Individual A, Individual
B and Individual C (collectively the “ABC Managers”).  ABC Management LP, ABC Management LLC and each of the ABC
Managers may be deemed to beneficially own the securities held by the ABC Funds.  ABC Management LP, ABC Management LLC and
each of the ABC Managers each disclaim beneficial ownership of such securities except to the extent of their pecuniary interests
therein.

 

 

    	 

    	 

    

 

EXHIBIT C

 

FORM OF JOINDER AGREEMENT

 

Ladies and Gentlemen:

 

Reference is made to
the Registration Rights Agreement, dated as of July 26, 2013 (as such agreement may have been or may be amended from time to time)
(the “Registration Rights Agreement”), by and among Sequential Brands Group, Inc., a Delaware corporation (the
“Company”), each of the other parties signatory thereto and any other parties identified on the signature pages
of any joinder agreements substantially similar to this joinder agreement executed and delivered pursuant to Section 10
of the Registration Rights Agreement. Capitalized terms used but not otherwise defined herein have the meanings set forth in the
Registration Rights Agreement.

 

In consideration of
the transfer to the undersigned of Registrable Securities of the Company, the undersigned represents that it is a transferee of
[insert name of transferor] and agrees that, as of the date written below, the undersigned shall become a party to the Registration
Rights Agreement, and shall be fully bound by, and subject to, all of the covenants, terms and conditions of the Registration Rights
Agreement as though an original party thereto.

 

[SIGNATURE PAGE FOLLOWS]

 

 

    	 

    	 

    

  

Executed as of the _______ day of __________________,
_____.

 

TRANSFEREE: [insert name of transferee]

 

By:

Name:

Title:

 

	Address:	 	 
	 	 
	 	 

  

Acknowledged and agreed by:

 

SEQUENTIAL BRANDS GROUP, INC.

 

By:

Name:

Title:Amended
Employment Agreement

 

This Amended
Employment Agreement (this “Agreement”) is entered into effective as of

July 25, 2013, by and among First Reliance Bancshares, Inc.,
a South Carolina corporation (the “Corporation”), First Reliance Bank, a bank chartered under South Carolina
law and a wholly owned subsidiary of the Corporation (the “Bank”), and F.R. Saunders Jr., President and
Chief Executive Officer of the Corporation and the Bank (the “Executive”). The Corporation and the Bank
are referred to in this Agreement individually and together as the “Employer.”

 

Whereas,
the Executive is the President and Chief Executive Officer of the Corporation and the Bank, possessing unique skills, knowledge,
and experience relating to their business, and the Executive has made and is expected to continue to make major contributions to
the profitability, growth, and financial strength of the Corporation and affiliates,

 

Whereas,
the Executive and the Employer are parties to a November 24, 2006 Employment Agreement, as amended by the December 3, 2008 First
Amendment of the Employment Agreement, but the Executive and the Employer intend that this Agreement amend and restate in its entirety
the November 24, 2006 Employment Agreement, as amended, and

 

Whereas,
as of the date of this Agreement none of the conditions or events included in the definition of the term “golden parachute
payment” that is set forth in Section 18(k)(4)(A)(ii) of the Federal Deposit Insurance Act [12 U.S.C. 1828(k)(4)(A)(ii)]
and in Federal Deposit Insurance Corporation Rule 359.1(f)(1)(ii) [12 CFR 359.1(f)(1)(ii)] exists or, to the best knowledge of
the Employer, is contemplated insofar as the Corporation or any affiliates are concerned.

 

Now
Therefore, in consideration of these premises, the mutual covenants contained herein, and other good and valuable consideration
the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows.

 

Article
1

Employment

 

1.1      
   Employment. The Employer hereby employs the Executive to serve as President and Chief Executive Officer
according to the terms and conditions of this Agreement and for the period stated in section 1.3. The Executive hereby
accepts employment according to the terms and conditions of this Agreement and for the period stated in section 1.3.

 

1.2       
  Duties. As President and Chief Executive Officer, the Executive shall serve under the direction of the
Employer’s board of directors and in accordance with the Employer’s Articles of Incorporation and Bylaws, as each
may be amended or restated from time to time. The Executive shall report directly to the board of directors. The Executive
shall serve the Employer faithfully, diligently, competently, and to the best of the Executive’s ability. The Executive
shall exclusively devote full working time, energy, and attention to the business of the Employer and to the promotion of the
Employer’s interests throughout the term of this Agreement. Without the written consent of the board of directors of
each of the Corporation and the Bank, during the term of this Agreement the Executive shall not render services to or for any
person, firm, corporation, or other entity or organization in exchange for compensation, regardless of the form in which the
compensation is paid and regardless of whether it is paid directly or indirectly to the Executive. Nothing in this section
1.2 shall prevent the Executive from managing personal investments and affairs, provided that doing so does not interfere
with the proper performance of the Executive’s duties and responsibilities under this Agreement.

 

    	 

    	 

    

 

1.3   
      Term. The initial term of employment under this Agreement shall be three
years, commencing November 24, 2006. The term of this Agreement shall automatically be extended at the end of each month for
one additional month unless the Bank’s board of directors determines that the term shall not be extended. If the board
of directors decides not to extend the term, the board shall promptly notify the Executive in writing, but this Agreement
shall nevertheless remain in force until its current term expires. The board’s decision not to extend the term shall
not – by itself – give the Executive any rights under this Agreement to claim an adverse change in position,
compensation, or circumstances or otherwise to claim entitlement to severance benefits under Articles 4 or 5. References
herein to the term of this Agreement mean the initial term, as the same may be extended. Unless sooner terminated, the term
of this Agreement shall terminate when the Executive attains age 65.

 

1.4          Service on the Board of Directors. The Executive is currently serving as a director of each of the
Corporation and the Bank. The Corporation shall nominate the Executive for election as a director at such times as necessary
so that the Executive will, if elected by stockholders, remain a director of the Corporation throughout the term of this
Agreement. The Executive hereby consents to serving as a director and to being named as a director of the Corporation in
documents filed with the Securities and Exchange Commission. The board of directors of each of the Corporation and the Bank
shall undertake every lawful effort to ensure that the Executive continues throughout the term of his employment to be
elected or reelected as a director of the Bank. The Executive shall be deemed to have resigned as a director of each of the
Corporation and the Bank effective immediately after termination of the Executive’s employment under Article 3 of this
Agreement, regardless of whether the Executive submits a formal, written resignation as director.

 

Article
2

Compensation
and Benefits

 

2.1      
   Base Salary. In consideration of the Executive’s performance of the obligations under this
Agreement, the Employer shall pay or cause to be paid to the Executive a salary at the annual rate of not less than $275,000,
payable in bi-weekly installments or otherwise according to the Employer’s regular pay practices. The Executive’s
salary shall be reviewed annually by the Employer’s board of directors or the board’s Compensation Committee. The
Executive’s salary shall be increased no more frequently than annually to account for cost of living increases. At the
discretion of the Compensation Committee, the Executive’s salary also may be increased beyond the amount necessary to
account for cost of living increases. However, the Executive’s salary shall not be reduced. All compensation under this
Agreement shall be subject to customary withholding taxes and such other employment taxes as are imposed by law. The
Executive’s salary, as the same may be increased from time to time, is referred to in this Agreement as the
“Base Salary.”

 

2.2     
    Benefit Plans and Perquisites. For as long as the Executive is employed by the
Employer the Executive shall be entitled (x) to participate in any and all officer or employee compensation, bonus,
incentive, and benefit plans in effect from time to time, including without limitation plans providing pension, retirement,
medical, dental, disability, and group life benefits and including stock-based compensation, incentive, bonus, or purchase
plans existing on the date of this Agreement or adopted after the date of this Agreement, provided that the Executive
satisfies the eligibility requirements for any such plans or benefits, and (y) to receive any and all other fringe
benefits provided from time to time, including the following fringe benefits –

 

    	 

    	 

    

 

(a)         
 Club dues. The Employer shall pay or cause to be paid the Executive’s initiation and membership assessments and
dues in civic and social clubs of the Executive’s choice. The Executive shall be solely responsible for personal
expenses for use of the civic and clubs.

 

(b)           Reimbursement
of business expenses. The Executive shall be entitled to reimbursement for all reasonable business expenses incurred performing
the obligations under this Agreement, including but not limited to all reasonable business travel and entertainment expenses incurred
while acting at the request of or in the service of the Employer and reasonable expenses for attendance at annual and other periodic
meetings of trade associations.

 

(c)           Use
of automobile. The Executive shall have the use of an automobile titled in the Employer’s name for use by the Executive
to carry out the Executive’s duties, the insurance and maintenance expenses of which shall be paid by the Employer. As additional
compensation, the Executive may use such automobile for personal purposes, provided that the Executive renders an accounting of
business and personal use to the Employer in accordance with regulations under the Internal Revenue Code of 1986, as amended.

 

(d)           Long-term
care insurance. The Employer shall purchase and maintain long-term care insurance for the benefit of the Executive, which policy
shall be fully paid no later than the date on which the Executive attains age 65, provided the Executive remains employed by the
Employer to age 65. The long-term care insurance policy shall be owned by the Executive exclusively. If before attaining age 65
the Executive’s employment terminates involuntarily but without Cause, voluntarily but with Good Reason, or because of disability,
the Executive’s right to the long-term care insurance benefit under this section 2.2(d) shall be determined under section
4.5.

 

(e)           Disability
insurance. The Employer shall reimburse the Executive for the Executive’s cost to purchase and maintain disability insurance
coverage. The amount reimbursed by the Employer shall be grossed up to compensate the Executive for federal and state income taxes
imposed as a result of the Employer’s reimbursement of the Executive’s cost. The disability insurance policy shall
be owned by the Executive exclusively.

 

2.3          Vacation.
The Executive shall be entitled to sick leave and paid annual vacation in accordance with policies established from time to time
by the Employer.

 

Article
3

Employment
Termination

 

3.1          Termination
by the Employer. (a) Death or Disability. The Executive’s employment shall terminate automatically on the date
of the Executive’s death. If the Executive dies in active service to the Employer, for twelve months after the Executive’s
death the Employer shall assist the Executive’s family with continuing health care coverage under COBRA substantially identical
to that provided for the Executive before death. By delivery of written notice 30 days in advance to the Executive, the Employer
may terminate the Executive’s employment if the Executive is disabled. For purposes of this Agreement the Executive shall
be considered “disabled” if an independent physician selected by the Employer and reasonably acceptable
to the Executive or the Executive’s legal representative determines that, because of illness or accident, the Executive is
unable to perform the Executive’s duties and will be unable to perform the Executive’s duties for a period of 90 consecutive
days. The Executive shall not be considered disabled, however, if the Executive returns to work on a full-time basis within 30
days after the Employer gives notice of termination due to disability.

 

    	 

    	 

    

 

(b)          Termination
without Cause. With written notice to the Executive 60 days in advance, the Employer may terminate the Executive’s employment
without Cause.

 

(c)          Termination
with Cause. The Employer may terminate the Executive’s employment with Cause. The Executive shall not be deemed to have
been terminated for Cause under this Agreement unless and until there is delivered to the Executive a copy of a resolution duly
adopted at a meeting of the board of directors called and held for such purpose, which resolution shall (x) contain findings
that, in the good faith opinion of the board, the Executive has committed an act constituting Cause, and (y) specify the
particulars thereof. The resolution of the board of directors shall be deemed to have been duly adopted if and only if it is adopted
by the affirmative vote of a majority of the directors of the Employer then in office, excluding the Executive, at a meeting duly
called and held for that purpose. Notice of the meeting and the proposed termination for Cause shall be given to the Executive
a reasonable time before the board’s meeting. The Executive and the Executive’s counsel (if the Executive chooses to
have counsel present) shall have a reasonable opportunity to be heard by the board at the meeting. Nothing in this Agreement limits
the Executive’s or beneficiaries’ right to contest the validity or propriety of the board’s determination of
Cause.

 

(d)          Definition
of Cause. For purposes of this Agreement, “Cause” means any of the following –

 

1)          an
act of fraud, embezzlement, or theft by the Executive in the course of employment,

 

2)          intentional
violation of any law or significant policy of the Employer or an affiliate, which in the Employer’s sole judgement causes
material harm to the Employer or affiliate, regardless of whether the violation leads to criminal prosecution or conviction. For
purposes of this Agreement, applicable laws include any statute, rule, regulatory order, statement of policy, or final cease-and-desist
order of any governmental agency or body having regulatory authority over the Employer,

 

3)          the
Executive’s gross negligence in the performance of the Executive’s duties,

 

4)          intentional
wrongful damage by the Executive to the business or property of the Employer or its affiliates, including without limitation the
reputation of the Employer, which in the Employer’s sole judgment causes material harm to the Employer. For purposes of this
Agreement, no act or failure to act on the part of the Executive shall be deemed to have been intentional if it was due primarily
to an error in judgment or negligence. An act or failure to act on the Executive’s part shall be considered intentional if
it is not in good faith and if it is without a reasonable belief that the action or failure to act is in the best interests of
the Employer,

 

5)          a
breach by the Executive of fiduciary duties or misconduct involving dishonesty, in either case whether in the Executive’s
capacity as an officer or as a director of the Employer,

 

6)          a
breach by the Executive of this Agreement that in the sole judgment of the Employer is a material breach, which breach is not corrected
by the Executive within 10 days after receiving written notice of the breach,

 

7)          removal
of the Executive from office or permanent prohibition of the Executive from participating in the Employer’s affairs by an
order issued under section 8(e)(4) or (g)(1) of the Federal Deposit Insurance Act, 12 U.S.C. 1818(e)(4) or (g)(1),

 

    	 

    	 

    

 

8)          the
occurrence of any event that results in the Executive being excluded from coverage, or having coverage limited for the Executive
as compared to other executives of the Employer, under the Employer’s blanket bond or other fidelity or insurance policy
covering its directors, officers, or employees, or

 

9)          conviction
of the Executive for or plea of no contest to a felony or conviction of or plea of no contest to a misdemeanor involving moral
turpitude, or the actual incarceration of the Executive for seven consecutive days or more.

 

3.2          Voluntary
Termination with Good Reason. With advance written notice to the Employer as provided in clause (y), the Executive may
terminate employment with Good Reason. If the Executive’s employment terminates involuntarily without Cause or voluntarily
but with Good Reason, the Executive shall be entitled to the benefits specified in sections 4.4 and 4.5 of this Agreement. For
purposes of this Agreement a voluntary termination by the Executive shall be considered a voluntary termination with Good Reason
if the conditions stated in both clauses (x) and (y) are satisfied –

 

(x)          a
voluntary termination by the Executive shall be considered a voluntary termination with Good Reason if any of the following occur
without the Executive’s advance written consent, and the term Good Reason shall mean the occurrence of any of the following
without the Executive’s advance written consent –

 

1)          a
material diminution of the Executive’s Base Salary,

 

2)          a
material diminution of the Executive’s authority, duties, or responsibilities,

 

3)          a
material diminution in the authority, duties, or responsibilities of the supervisor to whom the Executive is required to report,
including a requirement that the Executive report to a corporate officer or employee instead of reporting directly to the board
of directors,

 

4)          a
material diminution in the budget over which the Executive retains authority,

 

5)          a
material change in the geographic location at which the Executive must perform services for the Employer, or

 

6)          any
other action or inaction that constitutes a material breach by the Employer of this Agreement.

 

(y)          the
Executive must give notice to the Employer of the existence of one or more of the conditions described in clause (x) within
90 days after the initial existence of the condition, and the Employer shall have 30 days thereafter to remedy the condition. In
addition, the Executive’s voluntary termination because of the existence of one or more of the conditions described in clause
(x) must occur within 24 months after the initial existence of the condition.

 

Article
4

Compensation
and Benefits After Termination

 

4.1          Cause.
If the Executive’s employment terminates for Cause, the Executive shall receive the Base Salary through the date on which
termination becomes effective and any other benefits to which the Executive may be entitled under the Employer’s benefit
plans and policies in effect on the date of termination.

 

    	 

    	 

    

 

4.2          Termination
by the Executive Other than for Good Reason. If the Executive terminates employment other than for Good Reason, the Executive
shall receive the Base Salary through the date on which termination becomes effective and any other benefits to which the Executive
may be entitled under the Employer’s benefit plans and policies.

 

4.3          Termination
Because of Disability. If the Executive’s employment terminates because of disability, the Executive shall receive Base
Salary through the date on which termination becomes effective, any unpaid bonus or incentive compensation due to the Executive
for the calendar year preceding the calendar year in which termination becomes effective, any payments the Executive is eligible
to receive under any disability insurance program in which the Executive participates, such other benefits to which the Executive
may be entitled under the Employer’s benefit plans, policies, and agreements, and any benefits provided for elsewhere in
this Agreement.

 

4.4          Cash
Severance after Termination Without Cause or Termination with Good Reason. (a) Subject to the possibility that cash severance
after employment termination might be delayed under section 4.4(b), if the Executive’s employment terminates involuntarily
but without Cause or if the Executive voluntarily terminates employment with Good Reason, 30 days after employment termination
the Employer shall pay to the Executive in a single lump sum cash in an amount equal to (x) the Executive’s Base Salary
for the unexpired term of the Agreement (the Executive’s monthly salary multiplied by the number of whole months remaining
in the term of the Agreement), without discount for the time value of money, plus (y) the bonus earned for the calendar
year ended immediately before the year in which employment termination occurs. The Employer and the Executive acknowledge and agree
that benefits under this section 4.4 shall not be payable if benefits are payable or shall have been paid to the Executive under
Article 5 of this Agreement.

 

(b)           If
when employment termination occurs the Executive is a specified employee within the meaning of section 409A of the Internal Revenue
Code of 1986, and if the cash severance payment under section 4.4(a) would be considered deferred compensation under section 409A,
and finally if an exemption from the six-month delay requirement of section 409A(a)(2)(B)(i) is not available, the Executive’s
cash severance payment under section 4.4(a) shall be paid to the Executive in a single lump sum on the first day of the seventh
month after the month in which the Executive’s employment terminates. References in this Agreement to section 409A of the
Internal Revenue Code of 1986 include rules, regulations, and guidance of general application issued by the Department of the Treasury
under Internal Revenue Code section 409A.

 

    	 

    	 

    

 

4.5          Post-Termination
Insurance Coverage. (a) If the Employer terminates the Executive’s employment involuntarily but without Cause, if the
Executive’s employment terminates because of disability, or if the Executive voluntarily terminates employment with Good
Reason, the Employer shall continue or cause to be continued at the Employer’s expense and on behalf of the Executive and
the Executive’s dependents a medical and dental insurance coverage benefit consisting of reimbursement by the Employer of
a portion of the Executive’s cost to continue medical insurance coverage under Title X of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (COBRA) [Pub. L. 99-272, 100 Stat. 82]. Regardless of whether it is sufficient to reimburse the Executive’s
entire monthly cost for continued medical insurance coverage under COBRA, the amount of the Employer’s reimbursement under
this section 4.5 shall be equal to the monthly medical insurance premium cost incurred by the Employer on account of the Executive’s
participation in the Employer’s medical and dental insurance plan in the month immediately before the month in which the
Executive’s employment terminated. If providing the medical and dental insurance coverage reimbursement benefit under this
section 4.5(a) would result in the Employer or any of its affiliates breaching the terms of any insurance policy with an applicable
insurer or incurring any penalty or additional tax for failing to comply with any applicable law, instead of receiving the medical
and dental insurance coverage reimbursement benefit the Executive shall be entitled to elect continuation coverage under COBRA
section 4980B(f) and, beginning with the first payroll period after the first day of the seventh month after the month in which
the Executive's employment terminates, the Employer shall pay to the Executive a monthly cash amount equal to the monthly premium
amount the Employer would have paid for the Executive’s medical and dental coverage reimbursement under this section 4.5(a)
had the Executive remained actively employed, less any applicable tax withholdings (each such payment, an “Employer
Payment”). The first Employer Payment shall include the amount that the Executive would have received in the seven-month
period after the date of employment termination had the Executive otherwise received the Employer Payments during the seven-month
period. Any benefit provided by the Employer in accordance with the preceding sentences after employment termination shall not
count toward the medical and dental plan’s obligation to provide continuation coverage under COBRA or any applicable provision
of the Employer’s health plans that provide for continuing coverage for the Executive, and the last day of the post-termination
period in which the Executive is entitled to the benefit under this section 4.5(a) shall be deemed to be the date of the Executive’s
“qualifying event” for purposes of COBRA, provided that if application of this sentence would result in the Employer
or any of its affiliates incurring any penalty or additional tax for failing to comply with any applicable law, this section 4.5(a)
shall be applied without giving effect to this sentence.

 

(b)           If
(x) under the terms of the applicable policy or policies for the insurance benefits specified in section 4.5(a) it is not
possible to continue the Executive’s coverage or (y) when employment termination occurs the Executive is a specified
employee within the meaning of section 409A of the Internal Revenue Code of 1986, if any of the continued insurance benefits specified
in section 4.5(a) would be considered deferred compensation under section 409A, and finally if an exemption from the six-month
delay requirement of section 409A(a)(2)(B)(i) is not available for that particular insurance benefit, instead of continued insurance
coverage under section 4.5(a) the Employer shall pay to the Executive in a single lump sum an amount in cash equal to the present
value of the Employer’s projected cost to maintain that particular insurance benefit had the Executive’s employment
not terminated, assuming continued coverage for the lesser of 36 months or the number of months until the Executive attains age
65. The lump-sum payment shall be made 30 days after employment termination or, if section 4.4(b) applies and a six-month delay
is required under Internal Revenue Code section 409A, on the first day of the seventh month after the month in which the Executive’s
employment terminates. Instead of providing the continued long-term care insurance benefit under section 4.5(a) (including income
tax gross up), the Employer shall pay to the Executive in a single lump sum an amount in cash equal to the present value of the
Employer’s projected cost to maintain the long-term care insurance policy (including income tax gross up) until the Executive
attains age 65, (x) if under the terms of the policy it is not possible to continue the Executive’s coverage or (y)
if when employment termination occurs the Executive is a specified employee within the meaning of section 409A of the Internal
Revenue Code of 1986, if the continued long-term care insurance benefit specified in section 4.5(a) would be considered deferred
compensation under section 409A, and finally if an exemption from the six-month delay requirement of section 409A(a)(2)(B)(i) is
not available for that particular insurance benefit. The lump-sum payment shall be made 30 days after employment termination or,
if section 4.4(b) applies and a six-month delay is required under Internal Revenue Code section 409A, on the first day of the seventh
month after the month in which the Executive’s employment terminates.

 

(c)           If
the Employer terminates the Executive’s employment involuntarily but without Cause, or if the Executive’s employment
terminates because of Disability, or if the Executive voluntarily terminates employment with Good Reason, the Employer shall continue
or cause to be continued at the Employer’s expense the disability reimbursement and gross-up benefit under section 2.2(c),
and the long-term care insurance benefit under section 2.2(d), in each case as in effect during the two years preceding the date
of the Executive’s termination.

 

    	 

    	 

    

 

(d)           The
medical and disability (including income tax gross up) insurance benefits provided by this section 4.5 shall continue until the
first to occur of (w) the Executive’s return to employment with the Employer or another employer, (x) the Executive’s
attainment of age 65, (y) the Executive’s death, or (z) the end of the term remaining under this Agreement
when the Executive’s employment terminates. The long-term care insurance benefit under section 2.2(d) shall continue until
the policy is fully paid. If continued long-term care insurance benefits under section 2.2(d) constitute taxable income to the
Executive, the Employer shall reimburse the Executive for federal and state income taxes imposed on the Executive that are attributable
to continued maintenance of the long-term care insurance coverage, and the amount reimbursed by the Employer shall be grossed up
to compensate the Executive for federal and state income taxes imposed as a result of the Employer’s reimbursement. Termination
of the benefit under this section 4.5 shall not, however, relieve the Employer of its obligation to make a reimbursement payment
due but not yet paid to the Executive. This section 4.5 shall not be interpreted to limit any benefits to which the Executive or
the Executive’s dependents or beneficiaries may be entitled under any of the Employer’s employee benefit plans, agreements,
programs, or practices after the Executive’s employment termination, including without limitation retiree medical benefits.

 

Article
5

Change
in Control Benefits

 

5.1          Change
in Control Benefits. (a) If a Change in Control occurs during the term of this Agreement, the Employer shall make or cause
to be made a lump-sum payment to the Executive in an amount in cash equal to three times the Executive’s annual compensation.
For this purpose, annual compensation means (x) the Executive’s Base Salary when the Change in Control occurs plus
(y) any bonus or incentive compensation earned for the calendar year ended immediately before the year in which the Change
in Control occurs, regardless of when the bonus or incentive compensation earned for the preceding calendar year is paid and regardless
of whether all or part of the bonus or incentive compensation is subject to elective deferral or vesting. Annual compensation shall
be calculated without regard to any deferrals under qualified or nonqualified plans, but annual compensation shall not include
interest or other earnings credited to the Executive under qualified or nonqualified plans. The amount payable to the Executive
hereunder shall not be reduced to account for the time value of money or discounted to present value. The payment required under
this paragraph (a) is payable no later than five business days after the Change in Control occurs. If the Executive receives payment
under section 5.1 the Executive shall not be entitled to any additional severance benefits under section 4.4 of this Agreement.
The Executive shall be entitled to benefits under this paragraph (a) on no more than one occasion.

 

(b)           If
a Change in Control occurs during the term of this Agreement the Employer shall cause the Executive to become fully vested in awards
under any stock option, stock incentive, or other non-qualified plans, programs, or arrangements in which the Executive participated
if (x) the plan, program, or arrangement does not address the effect of a change in control or termination after a change
in control and (y) award vesting occurs automatically with the passage of time or years of service. Provided the Executive
is at the time a covered employee within the meaning of Internal Revenue Code section 162(m), accelerated vesting in or entitlement
to awards shall not occur under this section 5.1(b) in the case of any award for which vesting or entitlement is based on achievement
of performance conditions, whether the conditions have to do with individual performance or corporate performance measures, including
but not limited to stock price or financial statement or other financial measures.

 

5.2          Change
in Control Defined. For purposes of this Agreement, “Change in Control” means a change in control
as defined in Internal Revenue Code section 409A and rules, regulations, and guidance of general application thereunder issued
by the Department of the Treasury, including –

 

    	 

    	 

    

 

(a)          Change
in ownership: a change in ownership of First Reliance Bancshares, Inc., a South Carolina corporation of which the Bank is a
wholly owned subsidiary, occurs on the date any one person or group accumulates ownership of First Reliance Bancshares, Inc. stock
constituting more than 50% of the total fair market value or total voting power of First Reliance Bancshares, Inc. stock, or

 

(b)          Change
in effective control: (x) any one person or more than one person acting as a group acquires within a 12-month period
ownership of First Reliance Bancshares, Inc. stock possessing 30% or more of the total voting power of First Reliance Bancshares,
Inc., or (y) a majority of First Reliance Bancshares, Inc.’s board of directors is replaced during any 12-month period
by directors whose appointment or election is not endorsed in advance by a majority of First Reliance Bancshares, Inc.’s
board of directors, or

 

(c)          Change
in ownership of a substantial portion of assets: a change in ownership of a substantial portion of First Reliance Bancshares,
Inc.’s assets occurs if in a 12-month period any one person or more than one person acting as a group acquires from First
Reliance Bancshares, Inc. assets having a total gross fair market value equal to or exceeding 40% of the total gross fair market
value of all of First Reliance Bancshares, Inc.’s assets immediately before the acquisition or acquisitions. For this purpose,
gross fair market value means the value of First Reliance Bancshares, Inc.’s assets, or the value of the assets being disposed
of, determined without regard to any liabilities associated with the assets.

 

Article
6

Confidentiality
and Creative Work

 

6.1          Non-disclosure.
The Executive covenants and agrees not to reveal to any person, firm, or corporation any confidential information of any nature
concerning the Employer or its business, or anything connected therewith. As used in this Article 6 the term “confidential
information” means all of the Employer’s and the Employer’s affiliates’ confidential and proprietary
information and trade secrets in existence on the date hereof or existing at any time during the term of this Agreement, including
but not limited to –

 

(a)          the
whole or any portion or phase of any business plans, financial information, purchasing data, supplier data, accounting data, or
other financial information,

 

(b)          the
whole or any portion or phase of any research and development information, design procedures, algorithms or processes, or other
technical information,

 

(c)          the
whole or any portion or phase of any marketing or sales information, sales records, customer lists, prices, sales projections,
or other sales information, and

 

(d)          trade
secrets, as defined from time to time by the laws of the State of South Carolina.

 

Notwithstanding the foregoing, confidential information excludes
information that – as of the date hereof or at any time after the date hereof – is published or disseminated without
obligation of confidence or that becomes a part of the public domain (x) by or through action of the Employer, or (y)
otherwise than by or at the direction of the Executive. This section 6.1 does not prohibit disclosure required by an order of a
court having jurisdiction or a subpoena from an appropriate governmental agency or disclosure made by the Executive in the ordinary
course of business and within the scope of the Executive’s authority.

 

    	 

    	 

    

 

6.2          Return
of Materials. The Executive agrees to deliver or return to the Employer upon termination, upon expiration of this Agreement,
or as soon thereafter as possible, all written information and any other similar items furnished by the Employer or prepared by
the Executive in connection with the Executive’s services hereunder. The Executive will retain no copies thereof after termination
of this Agreement or termination of the Executive’s employment.

 

6.3          Creative
Work. The Executive agrees that all creative work and work product, including but not limited to all technology, business management
tools, processes, software, patents, trademarks, and copyrights developed by the Executive during the term of this Agreement, regardless
of when or where such work or work product was produced, constitutes work made for hire, all rights of which are owned by the Employer.
The Executive hereby assigns to the Employer all rights, title, and interest, whether by way of copyrights, trade secret, trademark,
patent, or otherwise, in all such work or work product, regardless of whether the same is subject to protection by patent, trademark,
or copyright laws.

 

6.4          Affiliates’
Confidential Information is Covered; Confidentiality Obligation Survives Termination. For purposes of this Agreement, the term
“affiliate” of the Employer includes any entity that directly, or indirectly through one or more intermediaries,
controls, is controlled by, or is under common control with the Corporation or the Bank. The rights and obligations set forth in
this Article 6 shall survive termination of this Agreement.

 

6.5          Injunctive
Relief. The Executive acknowledges that it is impossible to measure in money the damages that will accrue to the Employer if
the Executive fails to observe the obligations imposed by this Article 6. Accordingly, if the Employer institutes an action to
enforce the provisions hereof, the Executive hereby waives the claim or defense that an adequate remedy at law is available to
the Employer, and the Executive agrees not to urge in any such action the claim or defense that an adequate remedy at law exists.
The confidentiality and remedies provisions of this Article 6 shall be in addition to and shall not be deemed to supersede or restrict,
limit, or impair the Employer’s rights under applicable state or federal statute or regulation dealing with or providing
a remedy for the wrongful disclosure, misuse, or misappropriation of trade secrets or proprietary or confidential information.

 

Article
7

Competition
After Employment Termination

 

7.1          Covenant
Not to Solicit Employees. The Executive agrees not to solicit the services of any officer or employee of the Bank for one year
after the Executive’s employment termination.

 

7.2          Covenant
Not to Compete. (a) The Executive covenants and agrees not to compete directly or indirectly with the Employer for one year
after employment termination. For purposes of this section –

 

		1)	the term “compete” means

 

		(a)	providing financial products or services on behalf of
any financial institution for any person residing in the territory,

 

		(b)	assisting (other than through the performance of ministerial
or clerical duties) any financial institution in providing financial products or services to any person residing in the territory,
or

 

		(c)	inducing or attempting to induce any person who was a
customer of the Employer at the date of the Executive’s employment termination to seek financial products or services from
another financial institution.

 

    	 

    	 

    

 

		2)	the words “directly or indirectly” mean –

		(a)	acting as a consultant, officer, director, independent
contractor, or employee of any financial institution in competition with the Employer in the territory, or

 

		(b)	communicating to such financial institution the names
or addresses or any financial information concerning any person who was a customer of the Employer when the Executive’s
employment terminated.

 

		3)	the term “customer” means any person to whom
the Employer is providing financial products or services on the date of the Executive’s employment termination.

 

		4)	the term “financial institution” means any
bank, savings association, or bank or savings association holding company, or any other institution, the business of which is
engaging in activities that are financial in nature or incidental to such financial activities as described in section 4(k) of
the Bank Holding Company Act of 1956, other than the Employer or any of its affiliated corporations.

 

		5)	“financial product or service” means any
product or service that a financial institution or a financial holding company could offer by engaging in any activity that is
financial in nature or incidental to such a financial activity under section 4(k) of the Bank Holding Company Act of 1956 and
that is offered by the Employer or an affiliate on the date of the Executive’s employment termination, including but not
limited to banking activities and activities that are closely related and a proper incident to banking.

 

		6)	the term “person” means any individual or
individuals, corporation, partnership, fiduciary or association.

 

		7)	the term “territory” means the area within
a 15-mile radius of any office of the Employer at the date of the Executive’s employment termination.

 

(b)     
    If any provision of this section or any word, phrase, clause, sentence or other portion thereof
(including, without limitation, the geographical and temporal restrictions contained therein) is held to be unenforceable or
invalid for any reason, the unenforceable or invalid provision or portion shall be modified or deleted so that the provisions
hereof, as modified, are legal and enforceable to the fullest extent permitted under applicable law.

 

7.3          Injunctive
and Other Relief. Because of the unique character of the services to be rendered by the Executive hereunder, the Executive
understands that the Employer would not have an adequate remedy at law for the material breach or threatened breach by the Executive
of any one or more of the Executive’s covenants in this Article 7. Accordingly, the Executive agrees that the Employer’s
remedies for a material breach or threatened breach of this Article 7 include but are not limited to (x) forfeiture of any
money representing accrued salary, contingent payments, or other fringe benefits due and payable to the Executive, (y) forfeiture
of any severance benefits under sections 4.4 and 4.5 of this Employment Agreement, and (z) a suit in equity by the Employer
to enjoin the Executive from the breach or threatened breach of such covenants. Despite anything to the contrary in the Salary
Continuation Agreement between the Bank and the Executive or in the Endorsement Split Dollar Agreement attached thereto as Addendum
A, if after termination of the Executive’s employment the Executive competes with the Employer in violation of this Article
7, the Employer shall be entitled to withhold all benefits payable under the Salary Continuation Agreement and the Executive shall
be deemed to have forfeited any and all rights to benefits under the Salary Continuation Agreement and under the Endorsement Split
Dollar Agreement. The Executive hereby waives the claim or defense that an adequate remedy at law is available to the Bank and
the Executive agrees not to urge in any such action the claim or defense that an adequate remedy at law exists. Nothing herein
shall be construed to prohibit the Employer from pursuing any other or additional remedies for the breach or threatened breach.

 

    	 

    	 

    

 

7.4          Article
7 Survives Termination But Is Void After a Change in Control. The rights and obligations set forth in this Article 7 shall
survive termination of this Agreement. However, Article 7 shall become null and void effective immediately upon a Change in Control.

 

Article
8

Miscellaneous

 

8.1          Successors
and Assigns. (a) This Agreement is binding on successors. This Agreement shall be binding upon the Employer and any
successor to the Employer, including any persons acquiring directly or indirectly all or substantially all of the business or assets
of the Employer by purchase, merger, consolidation, reorganization, or otherwise. But this Agreement and the Employer’s obligations
under this Agreement are not otherwise assignable, transferable, or delegable by the Employer. By agreement in form and substance
satisfactory to the Executive, the Employer shall require any successor to all or substantially all of the business or assets of
the Employer expressly to assume and agree to perform this Agreement in the same manner and to the same extent the Employer would
be required to perform if no such succession had occurred.

 

(b)           This
Agreement is enforceable by the Executive’s heirs. This Agreement will inure to the benefit of and be enforceable by
the Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, and legatees.

 

(c)           This
Agreement is personal and is not assignable. This Agreement is personal in nature. Without written consent of the other parties,
no party shall assign, transfer, or delegate this Agreement or any rights or obligations under this Agreement, except as expressly
provided herein. Without limiting the generality or effect of the foregoing, the Executive’s right to receive payments hereunder
is not assignable or transferable, whether by pledge, creation of a security interest, or otherwise, except for a transfer by the
Executive’s will or by the laws of descent and distribution. If the Executive attempts an assignment or transfer that is
contrary to this section 8.1, the Employer shall have no liability to pay any amount to the assignee or transferee.

 

8.2          Governing
Law, Jurisdiction and Forum. This Agreement shall be construed under and governed by the internal laws of the State of South
Carolina, without giving effect to any conflict of laws provision or rule (whether of the State of South Carolina or any other
jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of South Carolina. By entering
into this Agreement, the Executive acknowledges that the Executive is subject to the jurisdiction of both the federal and state
courts in the State of South Carolina. Any actions or proceedings instituted under this Agreement shall be brought and tried solely
in courts located in Florence County, South Carolina or in the federal court having jurisdiction in Florence, South Carolina. The
Executive expressly waives the right to have any such actions or proceedings brought or tried elsewhere.

 

8.3          Entire
Agreement. This Agreement sets forth the entire agreement of the parties concerning the employment of the Executive by the
Employer. Any oral or written statements, representations, agreements, or understandings made or entered into prior to or contemporaneously
with the execution of this Agreement are hereby rescinded, revoked, and rendered null and void by the parties. This Agreement amends
and restates in its entirety the November 24, 2006 Employment Agreement, as amended by the December 3, 2008 First Amendment of
the Employment Agreement. From and after the date of this Agreement the November 24, 2006 Employment Agreement, as amended by the
December 3, 2008 First Amendment of the Employment Agreement, shall be void and of no further force or effect.

 

    	 

    	 

    

 

8.4          Notices.
All notices, requests, demands, and other communications hereunder shall be in writing and shall be deemed to have been duly given
if delivered by hand or mailed, certified or registered mail, return receipt requested, with postage prepaid. Unless otherwise
changed by notice, notice shall be properly addressed to the Executive if addressed to the address of the Executive on the books
and records of the Employer at the time of the delivery of such notice, and properly addressed to the Employer if addressed to
the Board of Directors, First Reliance Bancshares, Inc., 2170 West Palmetto Street, Florence, South Carolina 29501.

 

8.5      
   Severability. If there is a conflict between any provision of this Agreement and any
statute, regulation, or judicial precedent, the latter shall prevail, but the affected provisions of this Agreement shall be
curtailed and limited solely to the extent necessary to bring them within the requirements of law. If any provision of this
Agreement is held by a court of competent jurisdiction to be indefinite, invalid, void or voidable, or otherwise
unenforceable, the remainder of this Agreement shall continue in full force and effect unless that would clearly be contrary
to the intentions of the parties or would result in an injustice.

 

8.6      
   Captions and Counterparts. The captions in this Agreement are solely for convenience. The captions in
no way define, limit, or describe the scope or intent of this Agreement. This Agreement may be executed in several
counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same
instrument.

 

8.7     
    No Duty to Mitigate. The Employer hereby acknowledges that it will be difficult and could be
impossible (x) for the Executive to find reasonably comparable employment after employment termination, and (y)
to measure the amount of damages the Executive may suffer as a result of termination. Additionally, the Employer acknowledges
that its general severance pay plans do not provide for mitigation, offset, or reduction of any severance payment received
thereunder. The Employer further acknowledges that the payment of severance benefits under this Agreement is reasonable and
shall be liquidated damages. The Executive shall not be required to mitigate the amount of any payment provided for in this
Agreement by seeking other employment. Moreover, the amount of any payment provided for in this Agreement shall not be
reduced by any compensation earned or benefits provided as the result of employment of the Executive or as a result of the
Executive being self-employed after employment termination.

 

8.8      
   Amendment and Waiver. This Agreement may not be amended, released, discharged, abandoned, changed, or
modified in any manner, except by an instrument in writing signed by each of the parties hereto. The failure of any party
hereto to enforce at any time any of the provisions of this Agreement shall not be construed to be a waiver of any such
provision, nor affect the validity of this Agreement or any part thereof or the right of any party thereafter to enforce each
and every such provision. No waiver or any breach of this Agreement shall be held to be a waiver of any other or subsequent
breach.

 

    	 

    	 

    

 

8.9    
     Payment of Legal Fees. The Employer is aware that after a Change in Control
management could cause or attempt to cause the Employer to refuse to comply with its obligations under this Agreement, or
could institute or cause or attempt to cause the Employer to institute litigation seeking to have this Agreement declared
unenforceable, or could take or attempt to take other action to deny Executive the benefits intended under this Agreement. In
these circumstances, the purpose of this Agreement would be frustrated. It is the Employer’s intention that the
Executive not be required to incur the expenses associated with the enforcement of rights under this Agreement, whether by
litigation or other legal action, because the cost and expense thereof would substantially detract from the benefits intended
to be granted to the Executive hereunder. It is the Employer’s intention that the Executive not be forced to negotiate
settlement of rights under this Agreement under threat of incurring expenses. Accordingly, if after a Change in Control
occurs it appears to the Executive that (x) the Employer has failed to comply with any of its obligations under this
Agreement, or (y) the Employer or any other person has taken any action to declare this Agreement void or
unenforceable, or instituted any litigation or other legal action designed to deny, diminish, or to recover from the
Executive the benefits intended to be provided to the Executive hereunder, the Employer irrevocably authorizes the Executive
from time to time to retain counsel of the Executive’s choice, at the Employer’s expense as provided in this
section 8.9, to represent the Executive in the initiation or defense of any litigation or other legal action, whether by or
against the Employer or any director, officer, stockholder, or other person affiliated with the Employer, in any
jurisdiction. Notwithstanding any existing or previous attorney-client relationship between the Employer and any counsel
chosen by the Executive under this section 8.9, the Employer irrevocably consents to the Executive entering into an
attorney-client relationship with that counsel, and the Employer and the Executive agree that a confidential relationship
shall exist between the Executive and that counsel. The fees and expenses of counsel selected from time to time by the
Executive as provided in this section shall be paid or reimbursed to the Executive by the Employer on a regular, periodic
basis upon presentation by the Executive of a statement or statements prepared by such counsel in accordance with
such counsel’s customary practices, up to a maximum aggregate amount of $500,000, whether suit be brought or not, and
whether or not incurred in trial, bankruptcy, or appellate proceedings. The Employer’s obligation to pay the
Executive’s legal fees under this section 8.9 operates separately from and in addition to any legal fee reimbursement
obligation the Employer may have with the Executive under any separate severance or other agreement. Despite anything in this
section 8.9 to the contrary however, the Employer shall not be required to pay or reimburse the Executive’s legal
expenses if doing so would violate section 18(k) of the Federal Deposit Insurance Act [12 U.S.C. 1828(k)] and Rule 359.3 of
the Federal Deposit Insurance Corporation [12 CFR 359.3].

 

8.10    
   Compliance with Internal Revenue Code Section 409A. The Employer and the Executive intend that their
exercise of authority or discretion under this Agreement shall comply with section 409A of the Internal Revenue Code of 1986.
If when the Executive’s employment terminates the Executive is a specified employee, as defined in section 409A of the
Internal Revenue Code of 1986, and if any payments under this Agreement, including Articles 4 or 5, will result in additional
tax or interest to the Executive because of section 409A, then despite any contrary provision of this Agreement the Executive
will not be entitled to the payments until the earliest of (x) the date that is at least six months after termination
of the Executive’s employment for reasons other than the Executive’s death, (y) the date of the
Executive’s death, or (z) any earlier date that does not result in additional tax or interest to the Executive
under section 409A. As promptly as possible after the end of the period during which payments are delayed under this
provision, the entire amount of the delayed payments shall be paid to the Executive in a single lump sum. If any provision of
this Agreement does not satisfy the requirements of section 409A, such provision shall nevertheless be applied in a manner
consistent with those requirements. If any provision of this Agreement would subject the Executive to additional tax or
interest under section 409A, the Employer shall reform the provision. However, the Employer shall maintain to the
maximum extent practicable the original intent of the applicable provision without subjecting the Executive to additional tax
or interest, and the Employer shall not be required to incur any additional compensation expense as a result of the reformed
provision.

 

    	 

    	 

    

 

In
Witness Whereof, the parties have executed this Amended Employment Agreement as of the date first written above.

 

	Executive	 	First Reliance Bank
	 	 	 
	 	 	By:	 
	F.R. Saunders Jr.	 	 
	 	 	Its:	 
	 	 	 
	 	 	First Reliance Bancshares, Inc.
	 	 	 
	 	 	By:	 
	 	 	 
	 	 	Its:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00219-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00219-of-00352.parquet"}]]