Document:

LIMITED LIABILITY COMPANY OPERATING AGREEMENT

 

OF

 

DVS FOOTWEAR INTERNATIONAL LLC

 

THIS LIMITED LIABILITY COMPANY OPERATING
AGREEMENT (the "Agreement") of DVS Footwear International LLC (the "Company") dated as of this 29 day of June,
2012, by and between Sequential Brands Group, Inc. (the "Managing Member") and Elan Polo International, Inc. (the "Minority
Member") and each Person (as hereinafter defined) subsequently admitted as a member of the Company (together with the Managing
Member and the Minority Member, individually, a "Member" and, collectively, the "Members").

 

RECITALS

 

WHEREAS, on June 18, 2012, the Managing
Member and the Minority Member entered into a Memorandum of Understanding (the "MOU") regarding the acquisition of certain
assets (the "Assets") for sale in connection with the case of In re DVS Shoe Co., Inc., Case No. 8:12-bk-16209-MW,
then pending in the United States Bankruptcy Court for the Central District of California;

 

WHEREAS, pursuant to
the MOU, in connection with acquisition of the Assets, the Managing Member and the Minority Member agreed to establish the Company
in accordance with certain agreed upon terms as set forth in the MOU, and the Minority Member agreed to enter into that certainDVS
License Agreement- Worldwide Exclusive License, dated as of June 29, 2012, by and between the Company, as licensor, and the Minority
Member, as licensee (as may be amended from time to time, the "License Agreement"); and

 

WHEREAS, the Managing
Member has formed the Company as a limited liability company under the laws of the State of Delaware and the Members desire to
enter into a written agreement, in accordance with the provisions of the Delaware Limited Liability Company Act and any successor
statute, as amended from time to time (the "Act"), governing the affairs of the Company and the conduct of its business.

 

NOW, THEREFORE, in
consideration of the mutual covenants and agreements contained herein and for other good and valuable consideration, the adequacy,
receipt and sufficiency of which are hereby acknowledged, the Members hereby agree as follows:

 

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ARTICLE 1

 

Organization and Purpose

 

Section 1.1 Formation. The Managing
Member has previously formed the Company as a limited liability company pursuant to the provisions of the Act. A certificate of
formation for the Company as described in Section 18-201 of the Act (the "Certificate of Formation") has been filed in
the Office of the Secretary of State of the State of Delaware in conformity with the Act. Express authorization was given to Annie
Li for the exclusive purpose of executing the Certificate of Formation.

 

Section 1.2 Name. The name of the
Company shall be "DVS Footwear International LLC" and its business shall be carried on in such name with such variations
and changes as the Members shall determine or deem necessary to comply with requirements of the jurisdictions in which the Company's
operations are conducted.

 

Section 1.3 Business Purpose; Powers.
The Company is formed for the purpose of engaging in any lawful business, purpose or activity for which limited liability companies
may be formed under the Act. The Company shall possess and may exercise all the powers and privileges granted by the Act or by
any other law or by this Agreement, together with any powers incidental thereto, so far as such powers and privileges are necessary
or convenient to the conduct, promotion or attainment of the business purposes or activities of the Company.

 

Section 1.4 Business Transactions of
a Member with the Company. In accordance with Section 18-107 of the Act, a Member (including, for the sake of clarity, the
Managing Member) may lend money to, act as surety, guarantor or endorser for, guarantee or assume one or more obligations of, provide
collateral for, and transact other business with, the Company and, subject to applicable law, shall have the same rights and obligations
with respect to any such matter as any individual, partnership, corporation, limited liability company, trust or other legal entity
(a "Person") who is not a Member, except as otherwise agreed in writing by the Members.

 

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Section 1.5 Registered Office and Agent.
The location of the registered office of the Company shall be 1679 S. Dupont Highway, Suite 100, Dover, Kent County, Delaware 19901.
The Company's Registered Agent at such address shall be Registered Agent Solutions, Inc.

 

Section 1.6 Term. Subject to the
provisions of Article 6 below, the Company shall have perpetual existence.

 

ARTICLE 2

 

The Members

 

Section 2.1 The Members. The name
and address of the Members are as follows:

 

	Name	 	Address
	Sequential Brands Group, Inc.	 	17383 Sunset Blvd., Suite A210
 Pacific Palisades, CA 90272
	Elan Polo International, Inc.	 	2005 Walton Road
 St. Louis, MO 63114

 

Section 2.2 Liability of the Members.
All debts, obligations and liabilities of the Company, whether arising in contract, tort or otherwise, shall be solely the debts,
obligations and liabilities of the Company, and the Members shall not be obligated personally for any such debt, obligation or
liability of the Company solely by reason of being a member. Except as otherwise expressly provided in the Act, the liability of
each Member shall be limited to the amount of capital contributions made by such Member in accordance with the provisions of this
Agreement.

 

Section 2.3 Admission of Members.
Persons may be admitted as members of the Company only upon the unanimous prior written approval of the Members.

 

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ARTICLE 3

 

Management of the Company

 

Section 3.1 Management of the Company.

 

(a)      The right to manage, control and conduct the business
and affairs of the Company and to take any and all actions on behalf of the Company shall be vested in the Managing Member; provided,
however, that, for so long as theLicense Agreement has not expired or been terminated, and neither the Company nor the Minority
Member is in default under or in breach of the License Agreement, the Minority Member shall have the right tomanage and control
the "DVS" trademark (the "Licensed Trademark"), which was licensed by the Company to the Minority Member pursuant
to the License Agreement, on the terms and subject to the conditions set forth in the License Agreement. In addition to the foregoing,
the Managing Member shall have all rights, power and authority necessary, appropriate or required, as determined by the Managing
Member and subject to the Act, to carry out the purposes of the Company, subject to the right of the Minority Member to manage
and control the Licensed Trademark.

 

(b)      The Managing Member (acting in its capacity as such)
shall have the authority to bind the Company to any third party with respect to any matter, except for (i) extraordinary actions
such as the sale of all or substantially all of the assets, whether tangible or intangible and whether real, personal or mixed,
at any time owned by the Company ("Company Assets") and (ii) matters set forth in the License Agreement, which matters
shall be subject to the mutual agreement of the Managing Member and the Minority Member. No Member (acting in its capacity as such)
shall have any authority to bind the Company to any third party with respect to any extraordinary actions such as the sale of all
or substantially all of the Company Assets, except pursuant to a resolution signed by all Members authorizing such matter and authorizing
such Member to bind the Company.

 

(c)      The Managing Member is, to the extent of its rights
and powers set forth in this Agreement, an agent of the Company for the purpose of the Company's business.

 

Section 3.2 Officers and Related Persons.
The Managing Member shall have the authority to appoint and terminate officers of the Company and retain and terminate employees,
agents and consultants of the Company and to delegate such duties to any such officers, employees, agents and consultants as the
Managing Member deems appropriate, including the power, acting individually or jointly, to represent and bind the Company in all
matters, in accordance with the scope of their respective duties.

 

Section 3.3 Compensation and Reimbursement
of Managing Member. The Managing Member shall not be compensated for its services as the Managing Member of the Company and
the Minority Member shall not be compensated for its services in connection with the management of the Licensed Trademark. The
Company shall reimburse the Managing Member on a current basis for its out-of-pocket expenditures made on behalf of the Company
upon submission to the Company of reasonably detailed evidence of such expenditures. All reimbursements for out-of-pocket expenditures
shall be reasonable in amount and in the advancement of Company purposes. Any out-of-pocket expenditure made by the Managing Member
and eligible for reimbursement pursuant to this Section shall not be treated as a capital contribution and any reimbursement of
such expenditure shall not be treated as a Company distribution to the Managing Member.

 

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Section 3.4 Expenses of Managing Member.
In connection with its management of the business and affairs of the Company, the Managing Member may incur any reasonable expenses
as determined in its sole discretion; provided, however, that the operating expenses of the Managing Member incurred in providing
such services (which expenses, for the sake of clarity, shall not include non-ordinary course expenses, non-operating expenses
such as litigation, or any expenses incurred in connection with extraordinary actions such as the sale of all or substantially
all of the Company Assets), shall not exceed $360,000 in the aggregate for the first fiscal year of the Company, except as mutually
agreed upon by the Managing Member and the Minority Member.

 

ARTICLE 4

 

Capital Structure and Contributions

 

Section 4.1 Capital Structure. The
capital structure of the Company shall consist of one class of common interests ("Common Interests"). Except as otherwise
set forth herein, each of the Common Interests shall be identical.

 

Section 4.2 Capital Contributions.

 

(a)      Each Member is herewith contributing, as an initial
capital contribution ("Initial Capital Contribution") to the Company all of its right, title and interest in and to the
amount of cash and/or other property listed and described on Schedule B hereto.

 

(b)      In exchange for the Initial Capital Contributions,
each Member is herewith receiving Common Interests in the Company in proportion to such Member's respective percentage ownership
of Common Interests in the Company as set forth on Schedule A hereto (as to each Member, as adjusted from time to time pursuant
to the terms hereof, its "Common Interest Percentage").

 

Section 4.3 Additional Contributions.
No Member shall be required to contribute any capital to the Company other than its Initial Capital Contribution. The Members may
from time to time make additional capital contributions to the Company as approved by the Managing Member.

 

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Section 4.4 No Withdrawal Of Capital
Contributions. Except upon the dissolution and liquidation of the Company as set forth in Article X hereof, no Member shall
have the right to withdraw its capital contributions.

 

Section 4.5 Maintenance of Capital Accounts.
The Company shall establish and maintain capital accounts for each Member. The balance in a Member's capital account shall be increased
by (x) the amount of each contribution made by such Member and (y) the distributive share of net profits of such Member, and shall
be decreased by (x) the amount of each distribution made to such Member and (y) the distributive share of net losses of such Member.

 

ARTICLE 5

 

Profits, Losses and Distributions

 

Section 5.1 Allocations of Net Profits
and Net Losses from Operations. For financial accounting and tax purposes, the Company's net profits or net losses shall be
determined on an annual basis in accordance with GAAP and the manner determined by the Managing Member. Net profits and net losses
shall be allocated among the Members ratably in proportion to their respective Common Interest Percentages and in compliance with
the Act.

 

Section 5.2 No Right to Distributions.
No Member shall have the right to demand or receive distributions of any amount, except as expressly provided in this Article 5.

 

Section 5.3 Distributions. The Managing
Member and the Minority Member shall jointly determine the amount of net profits available for distribution to Members in compliance
with the Act and the amount, to be distributed to Members, taking into account any reserves that the Managing Member and Minority
Member jointly, , from time to time determine are required or are reasonably appropriate to be retained to meet any accrued or
foreseeable expenses, expenditures, liabilities, taxes, or other obligations of the Company. To the extent that Elan Polo International
is not in default or breach of the terms and conditions of its DVS License Agreement- Worldwide Exclusive License with DVS Footwear
International LLC dated June 29, 2012,then, subject to Section 5.4,at least the minimum aggregate amount of such distributable
net profits in a fiscal yearas set forth in Schedule C shall be distributed to the Members, pro rata in proportion to their respective
Common Interest Percentages, for such fiscal year, unless the parties mutually agree in any given period to reduce the applicable
Schedule C distribution for certain expenses.

 

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Section 5.4 Withholding. The Company
is authorized to withhold from distributions to a Member, or with respect to allocations to a Member, and to pay over to a federal,
foreign, state or local government, any amounts required to be withheld pursuant to the Internal Revenue Code of 1986 (the "Code"),
or any provisions of any other federal, foreign, state or local law. Any amounts so withheld shall be treated as having been distributed
to such Member pursuant to this Article 5 for all purposes of this Agreement, and shall be offset against the current or next amounts
otherwise distributable to such Member.

 

ARTICLE 6

 

Dissolution

 

Section 6.1 Dissolution.

 

(a)      The Company shall be dissolved and its business wound
up upon the occurrence of any of the following events:

 

(i)    
  the sale, exchange or other disposition of all or substantially all of the Company Assets; or

 

(ii)      the entry of a decree of judicial dissolution under
Section 18-802 of the Act.

 

No other event, including insolvency, liquidation, dissolution,
expulsion or bankruptcy of the Managing Member, shall cause the existence of the Company to terminate.

 

(b)      In the event of the dissolution of the Company, there
shall be an orderly liquidation of the Company Assets as described below unless the Managing Member determines, in its sole discretion,
that an immediate sale of all or part of the Company Assets would cause undue loss to the Members, in which event (i) the liquidation
may be deferred for a reasonable time except as to those assets necessary to satisfy the liabilities of the Company, or (ii) all
or part of the Company Assets may be distributed in kind, subject to the provisions of and in the same manner as cash under the
applicable provisions of this Section 6.1, and provided such distribution of Company Assets is made in the following proportion:
60% to the Managing Member and 40% to the Minority Member.

 

(c)      Upon any dissolution of the Company, the Company's
accountants shall prepare a statement setting forth the assets and liabilities of the Company as of the date of dissolution, and
such statement shall be furnished to all Members.

 

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(d)      In the event of liquidation of the Company Assets,
and subject to Section 6.1(b) above, the Company Assets shall be liquidated as promptly as possible, and the Managing Member shall
supervise such liquidation ("Liquidating Member"), which shall be conducted in an orderly and business-like manner so
as not to involve undue sacrifice, as the Liquidating Member shall determine in its reasonable discretion. The proceeds thereof
shall be applied and distributed in the following order of priority:

 

(i)   
   for the payment of the debts and liabilities of the Company (including any debts and liabilities owed to
the Members and their related entities) and the expenses of liquidation;

 

(ii)      to the setting up of any reserves which the Liquidating
Member reasonably may deem necessary for any contingent or unforeseen liabilities or obligations of the Company arising out of
or in connection with the Company. Said reserves may be paid over by the Liquidating Member to an attorney-at-law, as escrowee,
to be held by him or her for the purpose of disbursing such reserves in payment of any of the aforementioned contingencies and,
at the expiration of such period as the Liquidating Member shall deem advisable, to distribute the balance of such reserves to
the Members in the following proportion: 60% to the Managing Member and 40% to the Minority Member; and

 

(iii)     thereafter, to the Members in the following proportion:
60% to the Managing Member and 40% to the Minority Member.

 

(e)      No dissolution of the Company shall release or relieve
the Members of any obligations under this Agreement.

 

ARTICLE 7

 

Books and Reports

 

Section 7.1 Books and Records. The
Company shall keep or cause to be kept at the office of the Company (or at such other place as the Managing Member in its sole
discretion shall determine) full and accurate books and records regarding the status of the business and financial condition of
the Companyand shall make the same available to the Members upon request, subject to the provisions of the Act.

 

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Section 7.2 Tax Matters Partner.
The Managing Member is hereby designated as the Company's "Tax Matters Partner" under Section 6231(a) (7) of the Code,
and shall have all the powers and responsibilities of such position as provided in the Code. The Tax Matters Partner is specifically
directed and authorized to take whatever steps are necessary or desirable to perfect such designation, including filing any forms
or documents with the Internal Revenue Service and taking such other action as may from time to time be required under the Regulations
issued under the Code. The Tax Matters Partner shall cause to be prepared and shall sign all tax returns of the Company, make any
tax elections for the Company allowed under the Code or the tax laws of any state or other jurisdiction having taxing jurisdiction
over the Company and monitor any governmental tax authority in any audit that such authority may conduct of the company's books
and records or other documents.

 

ARTICLE 8

 

Transfers of Common Interests; Right
of First Refusal; Put Option

 

Section 8.1 Restriction on Transfers.
No Member shall have the right to sell, convey, assign, transfer, pledge, grant a security interest in or otherwise dispose of
(each, a "Transfer") all or any part of its Common Interests, other than (i) to an Affiliate of such Member that agrees
to be bound by all of the provisions hereof, and (ii) upon the prior written consent by the Members; provided, however,that any
Person to whom such Common Interests are so Transferred shall be an assignee and shall have no right to participate in the Company's
business and affairs unless and until such Person shall be admitted as a member of the Company upon (i) the prior written
approval by the Managing Member and (ii) receipt by the Company of a written agreement executed by the Person to whom such
Common Interests are Transferred agreeing to be bound by the terms of this Agreement. "Affiliate" means
with respect to any Person, any other Person who, directly or indirectly (including through one or more intermediaries), controls,
is controlled by, or is under common control with, such Person. For purposes of the definition of Affiliate, "control,"
when used with respect to any specified Person, means the power, direct or indirect, to direct or cause the direction of the management
and policies of such Person, whether through ownership of voting securities or partnership or other ownership interests, by contract
or otherwise; and the terms "controlling" and "controlled" have correlative meanings. All Transfers in violation
of this Article 8 are null and void ab initio and of no force or effect.

 

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Section 8.2 Right of First Refusal.

 

(a)       Right of First Refusal. The Minority Member
shall have a right of first refusal if the Managing Member receives an offer from anyPerson who is not an Affiliate of the Managing
Member that the Managing Member desires to accept to purchase all or any portion of the Common Interests (the "Offered Interests")
owned by it. Each time the Managing Member receives an offer for any of its Common Interests from anyPerson who is not an Affiliate
of the Managing Member, the Managing Member shall first make an offering of the Offered Interests to the Minority Member in accordance
with the following provisions of this Section 8.2.

 

(b)      Offer Notice. The Managing Member shall give
written notice (the "Managing Member Notice") to the Minority Member stating that it has received a bona fide offer from
a Person who is not an Affiliate of the Managing Member and specifying: (i) the number of Offered Interests to be sold by the Managing
Member, (ii) the name of the person or entity who has offered to purchase such Offered Interests, (iii) the material terms and
conditions, including the price, pursuant to which the Managing Member proposes to Transfer the Offered Interests, and (iv) the
proposed date, time, and location of the closing of the Transfer. The Managing Member Notice shall constitute the Managing Member's
offer to Transfer the Offered Interests to the Minority Member, which offer shall be irrevocable for a period of 15 days (the "ROFR
Notice Period"). By delivering the Managing Member Notice, the Managing Member represents and warrants to the Minority Member
that (x) the Managing Member has full right, title and interest in and to the Offered Interests, (y) the Managing Member has all
the necessary power and authority and has taken all necessary action to sell such Offered Interests as contemplated by this Section
8.2, and (z) the Offered Interests are free and clear of any and all liens other than those arising as a result of or under the
terms of this Agreement.

 

(c)      Exercise of Right of First Offer. Upon receipt
of the Managing Member Notice, the Minority Member shall have until the end of the ROFR Notice Period to elect to purchase all
(but not less than all) of the Offered Interests by delivering a written notice (a "ROFR Offer Notice") to the Managing
Member and the Company stating that it offers to purchase such Offered Interests on the terms specified in the Managing Member
Notice. Any ROFR Offer Notice so delivered shall be binding upon delivery and irrevocable by the Minority Member.

 

(d)      Consummation of Sale. If the Minority Member
does not deliver a ROFR Offer Notice in accordance with this Section 8.2, the Managing Member may, during the 60 day period following
the expiration of the ROFR Notice Period (which period may be extended for a reasonable time not to exceed 90 days to the extent
reasonably necessary to obtain any required government approvals (the "Waived ROFR Transfer Period"), Transfer all of
the Offered Interests to any Person that is not an Affiliate of the Managing Member on terms and conditions no more favorable to
such Person than those set forth in the Managing Member Notice, and subject to the provisions of Section 8.1. If the Managing Member
does not Transfer the Offered Interests within such period or, if such Transfer is not consummated within the Waived ROFR Transfer
Period, the rights of the Minority Member provided under this Section 8.2 shall be deemed to be revived and the Offered Interests
shall not be Transferred to any Person who is not an Affiliate of the Managing Member unless the Managing Member sends a new Managing
Member Notice to the Minority Member in accordance with this Section 8.2.

 

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(e)      Cooperation. The Minority Member shall take
all actions as may be reasonably necessary to consummate any sale contemplated by this Section 8.2 including, without limitation,
entering into agreements and delivering certificates and instruments and consents as may be deemed necessary or appropriate.

 

(f)      Closing. At the closing of any sale of Offered
Interests to the Minority Member pursuant to this Section 8.2, the Managing Member shall deliver to the Minority Member a certificate
or certificates (if any have been issued) representing the Offered Interests to be sold to the Minority Member against receipt
of the purchase price therefor from the Minority Member by certified or official bank check or by wire transfer of immediately
available funds.

 

Section 8.3 Put Option.

 

(a)      Put Option. In the event that the License
Agreement is terminated by the Company prior to the expiration thereof in connection with the Company's grant to a third party
of a license to use the Licensed Trademark in connection with Products (as defined in the License Agreement), and at the time of
such termination, the Minority Member is not in breach of or default under the License Agreement, then the Minority Member shall,for
a period of 30 days after such termination of the License Agreement (the "Put Period"), have the option(the "Put
Option") to sell all, but not less than all, of its Common Interests (the "Put Interests") to the Managing Member,
at a price (the "Put Price") equal to the sum of (x) the Minority Member’s Unrecovered Capital (defined as the
Minority Member's Initial Capital Contribution less the Minority Member’s cumulative distributions received to date) and
(y) a 10% compound annual interest over the Minority Member's Initial Capital Contribution, in accordance with the provisions of
this Section 8.3.

 

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(b)      Election Notice. If, at any time during the
Put Period, the Minority Member elects to sell the Put Interests to the Managing Member pursuant to this Section 8.3, the Minority
Member shall give written notice (the "Election Notice") to the Managing Member of such election. Delivery
of the Election Notice shall constitute the exercise of the Put Option and shall bind the Managing Member to purchase the Put Interests
for the Put Price. By delivering theElection Notice, the Minority Member represents and warrants to the Managing Member
that (x) the Minority Member has full right, title and interest in and to the Put Interests, (y) the Minority Member has all the
necessary power and authority and has taken all necessary action to sell such Put Interests to the Managing Member as contemplated
by this Section 8.3, and (z) the Put Interests are free and clear of any and all liens. If the Minority Member does not deliver
the Election Noticeto the Managing Member within the Put Period, then the Put Option provided under this Section 8.3 shall expire
and the Minority Member shall no longer have any rights to exercise the Put Option.

 

(c)      Cooperation. The Minority Member shall take
all actions as may be reasonably necessary to consummate the sale, if any, of Put Interests contemplated by this Section 8.3 including,
without limitation, entering into agreements and delivering certificates and instruments and consents as may be deemed necessary
or appropriate.

 

(d)      Closing. Within
30 days following receipt of the Election Notice, the Managing Member shall pay to the Minority Member the Put Price by
certified or official bank check or by wire transfer of immediately available funds against receipt of a certificate or certificates
(if any have been issued) representing the Put Interests from the Minority Member. Upon
payment of the Put Price, title to the Put Interests shall vest in the Managing Member, and the Minority Member shall no longer
have any Common Interests, or any right to or claim in any ownership, management or other interests, in the Company, and any rights
or interests that the Minority Member may have under this Agreement shall be extinguished and of no further force or effect.

 

ARTICLE 9

 

Exculpation and Indemnification

 

Section 9.1 Exculpation. Notwithstanding
any other provisions of this Agreement, whether express or implied, or any obligation or duty at law or in equity, none of the
Members, nor any officers, directors, stockholders, partners, members, managers, employees, affiliates, representatives or agents
of the Members, nor any officer, employee, representative or agent of the Company (individually, a "Covered Person" and,
collectively, the "Covered Persons") shall be liable to the Company or any other person for any act or omission (in relation
to the Company, its property or the conduct of its business or affairs, this Agreement, any related document or any transaction
contemplated hereby or thereby) taken or omitted by a Covered Person in good faith in the reasonable belief that such act or omission
is in or is not contrary to the best interests of the Company and is within the scope of authority granted to such Covered Person
by this Agreement, provided such act or omission does not constitute fraud, willful misconduct or gross negligence.

 

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Section 9.2 Indemnification. To the
fullest extent permitted by the Act, the Company shall indemnify and hold harmless each Covered Person from and against any and
all losses, claims, demands, liabilities, expenses, judgments, fines, settlements and other amounts arising from any and all claims,
demands, actions, suits or proceedings, civil, criminal, administrative or investigative ("Claims"), in which the Covered
Person may be involved, or threatened to be involved, as a party or otherwise, by reason of the fact that he, she or it is a Covered
Person or which relates to or arises out of the Company or its property, business or affairs. A Covered Person shall not be entitled
to indemnification under this Section 9.2 with respect to (i) any Claim with respect to which such Covered Person has engaged in
fraud, willful misconduct or gross negligence or (ii) any Claim initiated by such Covered Person unless such Claim (A) was brought
to enforce such Covered Person's rights to indemnification hereunder or (B) was authorized or consented to by the Managing Member.
Expenses incurred in defending any Claim by (y) a Member or any officer, director, stockholder, partner, member, manager, or affiliate
of any Member shall be paid by the Company and (z) any other Covered Person may be paid by the Company, but only upon the prior
written approval of the Managing Member in its sole and absolute discretion, upon such terms and conditions, if any, as the Managing
Member deems appropriate, in each case, in advance of the final disposition of such Claim upon receipt by the Company of an undertaking
by or on behalf of such Covered Person to repay such amount if it shall be ultimately determined that such Covered Person is not
entitled to be indemnified by the Company as authorized by this Section 9.2.

 

Section 9.3 Amendments. Any repeal
or modification of this Article 9 by the Member shall not adversely affect any rights of such Covered Person pursuant to this Article
9, including the right to indemnification and to the advancement of expenses of a Covered Person, existing at the time of such
repeal or modification with respect to any acts or omissions occurring prior to such repeal or modification.

 

ARTICLE 10

 

Miscellaneous

 

Section 10.1 Tax Treatment. Unless
otherwise determined by the Managing Member, the Company shall be a disregarded entity for U.S. federal income tax purposes (as
well as for any analogous state or local tax purposes), and the Managing Member and the Company shall timely make any and all necessary
elections and filings for the Company to be treated as a disregarded entity for U.S. federal income tax purposes (as well as for
any analogous state or local tax purposes).

 

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Section 10.2 Amendments. Amendments
to this Agreement and to the Certificate of Formation shall be effective only if approved in writing by the Managing Member and
the Minority Member. An amendment shall become effective as of the date specified in the approval of the Managing Member and the
Minority Member or if none is specified as of the date of such approval.

 

Section 10.3 Governing Law; Severability.
This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware without giving effect to
the principles of conflicts of law. In particular, this Agreement shall be construed to the maximum extent possible to comply with
all the terms and conditions of the Act. If it shall be determined by a court of competent jurisdiction that any provisions or
wording of this Agreement shall be invalid or unenforceable under the Act or other applicable law, such invalidity or unenforceability
shall not invalidate the entire Agreement. In that case, this Agreement shall be construed so as to limit any term or provision
so as to make it enforceable or valid within the requirements of applicable law, and, in the event such term or provisions cannot
be so limited, this Agreement shall be construed to omit such invalid or unenforceable terms or provisions. If it shall be determined
by a court of competent jurisdiction that any provision relating to the distributions and allocations of the Company or to any
expenses payable by the Company is invalid or unenforceable, this Agreement shall be construed or interpreted so as (a) to make
it enforceable or valid and (b) to make the distributions and allocations as closely equivalent to those set forth in this Agreement
as is permissible under applicable law.

 

[SIGNATURE PAGE FOLLOWS]

 

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

 

	 	MANAGING MEMBER
	 	 
	 	Sequential Brands Group, Inc.
	 	 	 
	 	By:	
	 	 	Name: William Sweedler
	 	 	Title: Chairman
	 	 	 
	 	MINORITY MEMBER
	 	 
	 	Elan Polo International, Inc.
	 	 	 
	 	By:	/s/ Richard J. Swanson
	 	 	Name: Richard J. Swanson
	 	 	Title: Controller

 

    	 

    	 

    

Schedule A

 

DVS FOOTWEAR INTERNATIONAL LLC

 

	 	 	Common Interest	 
	Name of Members	 	Percentage	 
	 	 	 	 
	Managing Member	 	 	65	%
	Sequential Brands Group, Inc.	 	 	 	 
	 	 	 	 	 
	Minority Member	 	 	35	%
	Elan Polo International, Inc.	 	 	 	 

 

    	 

    	 

    

 

Schedule B

 

Initial Capital Contributions

 

	Name of Member	 	Initial CapitalContribution	 
	 	 	 	 
	Managing Member	 	$	3,186,000	 
	Sequential Brands Group, Inc.	 	 	 	 
	 	 	 	 	 
	Minority Member	 	$	2,124,000	 
	Elan Polo International, Inc.	 	 	 	 

 

    	 

    	 

    

 

Schedule C

 

Minimum Distribution Subject to Availability
of Net Profits 

 

The following schedule represents the minimum aggregate distribution
across all Members. Each Member shall be entitled to its pro rata portion according to the Common Interest Percentage.

 

Fiscal Year 1: $1,000,000

Fiscal Year 2: $1,045,200

Fiscal Year 3: $1,164,800

Fiscal Year 4: $1,300,000

Fiscal Year 5: $1,435,200CONFIDENTIAL TREATMENT REQUESTED

 

DVS LICENSE AGREEMENT – WORLDWIDE
EXCLUSIVE LICENSE

 

 

	1.	Licensor:	DVS Footwear International, LLC (owned 60% by Sequential Brands Group, Inc. and 40% by Elan Polo International, Inc.)
	 	 	 
	2.	Licensee:	Elan Polo International, Inc.
	 	 	 
	3.	Licensed Trademark:	DVS
	 	 	 
	4.	Definitions:	See Exhibit 2.
	 	 	 
	5.	Term:	The initial Term commences on the Execution Date and expires on December 31, 2019. This Agreement may be renewed for two renewal periods of five years each, in accordance with Exhibit 4. 
	 	 	 
	6.	Territory:	See Exhibit 3.
	 	 	 
	7.	Royalty/Minimums:	(a) ***1 Percent (***%) of Net Sales of Licensed Products.
	 	 	 
	 	 	(b) See Exhibit 4 for the list of GMR and Guaranteed Sales requirements and Exhibit 5 for the GMR and Royalty payment schedule.
	 	 	 
	 	 	(c)        Notwithstanding the provisions of this Section 7(a), the Sales Royalty payable on account of Net Sales with respect to sales to Closeout Accounts (“Closeout Sales”) shall be equal to ***% of such Closeout Sales, but only to the extent that Closeout Sales during an Annual Period are ***% or less of Net Sales (inclusive of Closeout Sales) during such Annual Period.  Procedurally, for the first three Quarters during each Annual Period, Licensee shall pay to Licensor Sales Royalty on Closeout Sales at the above-stated ***% rate (and Sales Royalty on all other Net Sales in accordance with Section 7(a)), notwithstanding the amount of Closeout Sales through the end of each such Quarter, and, if Closeout Sales during an Annual Period are more than ***% of Net Sales (inclusive of Closeout Sales) during such Annual Period, the Sales Royalty owing on account of such excess Closeout Sales (“Excess Closeout Sales”), i.e., the difference between the full Sales Royalty owing on account of that portion of such Excess Closeout Sales made during the first three Quarters and the ***% Sales Royalty theretofore paid with respect thereto plus the full Sales Royalty owing on that portion of such Excess Closeout Sales made during the final Quarter, shall be paid to Licensor at the time the final “Quarterly Statement” (as defined in Section 14(d)) for such Annual Period is to be delivered to Licensor.
	 	 	 
	8.	 	Product(s): Men’s, Women’s, and Children’s Footwear
	 	 	 
	9.	 	Collections: The first Collection will be no later than the Spring 2013 Collection and the final Collection will be the Holiday 2017 Collection unless this Agreement is renewed or sooner terminated in accordance herewith. If this Agreement is renewed, the final Collection will be the Holiday 2022 Collection unless this Agreement is sooner terminated.
	 	 	 
	10.	Marketing Commitment:	Licensee shall provide to Licensor, free of charge, such reasonable number of Licensed Products as it may reasonably request from time to time for photography, promotions and displays.
	 	 	 
	 	 	During each Year, Licensee shall spend for retailer-related marketing activities and such other advertising, marketing and promotional activities as may be approved by Licensor not less than ***% of the greater of (i) Guaranteed Sales for such Year and (ii) the actual Net Sales during such Year (each a “Marketing Obligation”).  If Licensee fails to satisfy the Marketing Obligation for any Year, Licensee shall pay to Licensor the amount of the shortfall within 30 days after the end of the subject Year, which Licensor shall spend for marketing and promotional activities for the Licensed Trademark.
	 	 	 

 

 

 

1 Terms represented by this symbol are considered
confidential. These confidential terms have been omitted pursuant to a Confidential Treatment Request filed with the Securities
and Exchange Commission (“SEC”) and have been filed separately with the SEC. 

 

    	1

    	 

    

 

 

	 	 	All advertising, marketing and promotional activities and associated materials require Licensor’s Approval.   Licensee shall provide Licensor with an accounting of expenditures together with its quarterly statements and reports.
	 	 	 
	11.	Grant:	An exclusive, nontransferable, non-assignable license (without the right to sub-license) to use the Licensed Trademark in connection with the manufacturing, distribution, advertising and sale of Products in the Territory to Approved Customers. 
	 	 	 
	 	 	Licensor reserves all rights to the Licensed Trademark, except those that are granted specifically to Licensee on an exclusive basis, and Licensor also reserves the right to register and use any domain names that include or relate to the Licensed Trademark; and Licensor may exercise all such rights at any time.
	 	 	 
	 	 	Licensee acknowledges that, at this time and at the time the initial seasonal collections of Licensed Products to be manufactured and sold hereunder are introduced and thereafter shipped, Products bearing the Licensed Trademark produced and sold by the prior owner of the Licensed Trademark will continue to be sold and will remain in the marketplace in the Territory, which is not a breach of Licensee’s Product exclusivity rights.
	 	 	 
	12.	Manufacturing And Quality Requirements:	Within 30 days from the Execution Date, Licensee shall prepare and submit to Licensor for Licensor’s Approval a Merchandising Schedule and Line Plan for the first Collection. Thereafter, a Merchandising Schedule and Line Plan must be submitted to Licensor at least 60 days in advance of any subsequent Collection.
	 	 	 
	 	 	Licensed Products shall be of a fabrication, styling and quality consistent with the reputation, image and prestige of the Licensed Trademark and, in any event, all proposed Licensed Products (and all aspects thereof, including, without limitation, Designs, fabrications, componentry, tags and labels) require Licensor’s Approval and Licensee must obtain Licensor’s Approval prior to the manufacture, sale, use, distribution and/or advertising of any Licensed Product. In that regard, Licensee shall submit to Licensor for its prior Licensor’s Approval samples of all proposed Licensed Products, all tags, labels and packaging materials proposed to be used in connection with the Licensed Products and all advertising, marketing and promotional materials proposed to be used hereunder. Also, all proposed customers require Licensor’s Approval on a case-by-case basis. Licensed Products not complying with applicable governmental laws, rules, regulations or standards shall be deemed unapproved, even if previously having Licensor’s Approval, and shall not be shipped or otherwise sold. 
	 	 	 
	 	 	In addition to the sample Licensed Products provided under the preceding paragraph, Licensee shall provide to Licensor, without charge, one full sample line of each collection from and as promptly as practicable after the completion of the first production run of each such collection.  Also, as promptly as practicable after request by Licensor from time to time and without charge, Licensee shall submit to Licensor for inspection current production samples of each Licensed Product so that Licensor may assure itself that the required quality standards are being maintained.
	 	 	 
	 	 	Licensed Products shall be manufactured at the expense of Licensee.  It is Licensee's sole obligation and responsibility to control and otherwise certify that the Licensed Products meet all necessary laws specifications and regulations for manufacture and suitability for use.  The Licensed Products shall:  (i) meet or exceed the industry’s quality standards and specifications for Products competitive with the Licensed Products; and (ii) be manufactured, promoted, advertised, sold and distributed in accordance with any and all applicable laws, rules and regulations, including without limitation those relating to product safety.
	 	 	 
	 	 	Licensee may use contractors for the production of Licensed Products (“Contractors”), and Licensor’s prior approval of a Contractor shall not be required. However, Licensee’s engagement of a Contractor shall not limit Licensee’s obligations hereunder, i.e., any act or omission by a Contractor that would be a breach of or default under this Agreement if done by Licensee shall constitute a breach of or default under this Agreement by Licensee.
	 	 	 

    	2

    	 

    

 

	 	 	Licensee will not sell Licensed Products to any entity which is not an Approved Customer.  Also, Licensee will not sell Licensed Products to an otherwise Approved Customer. which Licensee knows will, or has any reason to believe intends to, sell Licensed Products other than from its approved store premises.
	 	 	 
	13.	Sell Off Period:	180 days from termination or expiration, excluding termination for material breach.
	 	 	 
	 	 	During the Sell Off Period, Licensed Products may be sold only to Closeout Accounts.
	 	 	 
	 	 	Licensee shall not manufacture Licensed Products during the last nine months of the Term in excess of the amount Licensee reasonably anticipates will be sold prior to the expiration of the Term.  Royalty are payable on Net Sales during the Sell Off Period.
	 	 	 
	 	 	After the expiration of the Sell Off Period, any remaining inventory of Licensed Products shall, at Licensor’s sole option, be (i) sold to Licensor at Licensee’s cost of goods, or (ii) donated to a mutually agreed upon charity; or (iii) destroyed.  Licensee shall provide Licensor with an affidavit signed by Licensee’s officer attesting to such disposition within 30 days after expiration of the Sell Off Period.

    	3

    	 

    

 

	 	 	 
	14.	Royalty Reports:	Licensee will provide the following reports to Licensor:
	 	 	 
	 	 	(a) Seasonal Business Plan containing a forecast of sales in units and dollars 30 days before each Market Period, with final updated sales results within 30 days after each Market Period.
	 	 	 
	 	 	(b) Annual Quarterly Forecast in the form to be supplied by Licensor 30 days before the start of any Year, and for Year 1 within 30 days of the Execution Date; updated 15 days after the end of each quarter.
	 	 	 
	 	 	(c)  Monthly Sales Report showing final actual Net Sales for the preceding month using the form supplied by Licensor, within 15 days after the end of each month in each Year. 
	 	 	 
	 	 	(d)  on or before January 31, April 30, July 31 and October 31 of each Year, Licensee shall forward to Licensor a statement in the form supplied by Licensor, certified as accurate by an officer of Licensee, indicating the aggregate gross sales, the total deductions (broken down by category) creditable against gross sales and the aggregate Net Sales for such period (including a breakdown of sales to each Approved Customer, including each approved Closeout Account).
	 	 	 

    	4

    	 

    

 

	 	 	(e) within 45 days after the end of each Year, Licensee shall forward to Licensor a statement in the form supplied by Licensor, certified as accurate by the CFO or Controller of Licensee, showing aggregate gross sales, the total deductions (broken down by category) creditable against gross sales, the aggregate Net Sales for such Year (including a breakdown of sales to each Approved Customer, including each approved Closeout Account) and the computed Royalty for such Year by Approved Customer. 
	 	 	 
	 	 	Audit: Licensee shall prepare and maintain complete and accurate books of account and records covering all transactions relating to this Agreement. Licensor's representatives may, on reasonable notice during normal business hours, during the Term, and for two years thereafter, examine Licensee’s said books and records and make extracts or copies thereof. If an examination shows an understatement of Net Sales by Licensee, Licensee shall promptly pay to Licensor any additional Royalty due and, if the understatement is more than 5% of Net Sales for the audited period, Licensee shall also reimburse Licensor for the costs, fees and expenses incurred in said examination.
	 	 	 
	 	 	Reports shall be rendered regardless of whether Licensee has had Net Sales during the covered period.
	 	 	 
	15.	The Licensed Trademark:	(a)  Licensee shall use and display the Licensed Trademark only in the form and manner designated or approved by Licensor and shall not use the Licensed Trademark, in whole or in part, as a corporate name, trade name or domain name.  Also, Licensee shall use the Licensed Trademark strictly in compliance with the legal requirements of the Territory. 
	 	 	 
	 	 	(b)  Licensee acknowledges that, as between Licensee and Licensor, Licensor is the owner of all right, title and interest in and to the Licensed Trademark throughout the Territory in any form or embodiment thereof and is also the owner of the goodwill attached or that shall become attached to the Licensed Trademark in connection with the business and goods in relation to which the same has been, is or shall be used.  Sales by Licensee shall be deemed to have been made by Licensor for purposes of trademark registration and, in that regard, all uses of the Licensed Trademark by Licensee shall inure to Licensor’s benefit.  Neither Licensee nor any of its affiliates shall do anything, whether under or in connection with this Agreement or otherwise, that may adversely affect any rights of Licensor in and to the Licensed Trademark or any registrations thereof or that may reduce or dilute the value of the Licensed Trademark. 
	 	 	 
	 	 	(c)  Both during and after the Term, Licensee shall not (i) seek to register the Licensed Trademark or any variation, simulation or derivation thereof in any jurisdiction for any products or services or (ii) challenge Licensor’s ownership of or the validity of the Licensed Trademark, any application for registration or registration thereof or any rights of Licensor therein.
	 	 	 
	 	 	(d)  Licensee shall execute any documents required to confirm Licensor’s ownership of all rights in and to the Licensed Trademark and the respective rights of Licensor and Licensee under this Agreement.  Also, Licensee shall cooperate with Licensor in connection with the filing and prosecution of applications in Licensor’s name to register the Licensed Trademark for Products in the various countries in the Territory.  If the Licensed Trademark have not theretofore been registered for any products in a country at the time Licensee desires to launch the sale of Licensed Products in such country, all costs reasonably incurred by Licensor in connection with the registration of the Licensed Trademark for Products in such country, including reasonable attorneys’ fees, search costs and filing fees, shall be shared equally by Licensee and Licensor.
	 	 	 

    	5

    	 

    

 

	 	 	(e)  If either party learns of any infringement, imitation or counterfeiting of the Licensed Trademark or Licensed Products, it promptly shall notify the other party thereof.  Licensor shall first take such action as it in its sole discretion deems advisable for the protection of its rights in and to the Licensed Trademark and Licensed Products.  If requested by Licensor, Licensee shall cooperate with and follow the directions of Licensor in connection therewith.  Should the Licensor choose not to pursue any action, Licensor shall not unreasonably withhold approval of any action contemplated by Licensee. The costs, fees, and expenses (including investigatory expenses and legal expenses such as attorneys fees, court costs, and filing fees) incurred in connection with any action relating to Licensed Products in the Territory taken under this Agreement, and the recovery in any such action, shall be shall be shared equally by Licensee and Licensor.
	 	 	 
	16.	Warranties & 

Representations:	Each of Licensor and Licensee represents and warrants that it has the full power and authority to enter into and perform its obligations under this Agreement.
	 	 	 
	17.	Assignment:	(a) This Agreement may not be assigned or sublicensed by Licensee without the prior written consent of Licensor.  Also, Licensor may terminate this Agreement in the event of a substantial change of control and/or ownership of Licensee.
	 	 	 
	 	 	(b) If Licensor assigns this Agreement, the assignee’s rights and obligations under this Agreement shall be the same as those of Licensor, and Licensor will consequently be relieved of any and all obligations under this Agreement.
	 	 	 
	18.	Ownership:	All non-generic Designs provided by Licensor and all intellectual property and other rights therein shall be the exclusive property of Licensor and may be used by Licensee only in connection with Licensed Products under this Agreement.
	 	 	 
	19.	Non-competition:	Neither Licensee nor any of its affiliates shall manufacture, market or sell any Products or other products bearing designs or of a styling substantially similar to any designs or styling of any Licensed Products or permit any third party to do so.
	 	 	 
	20.	Indemnity:	Licensee shall hold Licensor and its affiliates harmless from and shall indemnify each of them against any losses, liabilities, damages and expenses (including interest, penalties and reasonable attorneys’ fees and expenses) that any of them may incur or become obligated to pay, or for which any of them may become liable or be compelled to pay in any action, claim or proceeding against any of them, by reason of any acts, whether of omission or commission, by Licensee or anyone acting on its behalf arising out of or related to this Agreement, including, without limitation, those arising out of or related to the use or the manufacture, marketing, distribution or sale of any Licensed Products, whether or not grounded in products liability or breach of warranty (as to performance characteristics or otherwise), any action, claim or proceeding against any of the indemnitees for the payment of a goodwill indemnity or other termination payment. The provisions of and Licensee’s obligations under this Section 20 shall survive the expiration or sooner termination of this Agreement.
	 	 	 
	21.	Insurance:	Licensee shall procure and maintain, at its own expense, a public liability insurance policy including products liability coverage with respect to Licensed Products with a highly rated insurance carrier acceptable to Licensor, which insurance policy shall remain in full force and effect at all times during which the Licensed Products are being sold.  The policy shall carry, with respect to the Licensed Products, a limit of liability of not less than US$3,000,000.00 per occurrence.  Such insurance policy shall be written for the benefit of Licensee and Licensor and its affiliates, and Licensor and its affiliates shall be additional insureds, and shall provide for at least 30 days prior written notice to said parties of the cancellation or substantial modification thereof.  Licensor shall have the right to purchase the appropriate  insurance at Licensee's expense in the event evidence of the existence of adequate insurance is not provided to Licensor within 30 days after the date Licensor gives Licensee a written request therefor.  Nothing contained in this Section 21 shall be deemed to limit in any way the indemnification provisions in Section 20.
	 	 	 
	22.	Default & Breach:	If Licensee fails to pay to Licensor any sum owing hereunder in full when due and if such default continues uncured for 10 business days or more after notice to Licensee, Licensor may terminate this Agreement immediately by and upon notice to Licensee.
	 	 	 
	 	 	Licensor also may terminate this Agreement immediately by and upon notice to Licensee if

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	 	 	(a)  Licensee (i) uses any advertising, marketing or promotional materials or any tags or labels that have not been approved by Licensor, (ii) offers for sale or sells any Licensed Product that has not been approved by Licensor, or (iii) sells Licensed Products to an unapproved customer, or
	 	 	 
	 	 	(b)  Intentionally omitted.
	 	 	 
	 	 	(c) Licensee violates the provisions of Section 15(a)-(c), 17(a) or 19. 
	 	 	 
	 	 	If Licensee otherwise fails to perform any of the terms, conditions, agreements or covenants in this Agreement on its part to be performed and if (i) the default is not curable, or (ii) the default is curable but continues uncured for a period of 30 days or more after notice, then, in any such case, Licensor, at its election, may terminate this Agreement immediately by and upon notice to Licensee. 
	 	 	 
	 	 	In the event that Licensee defaults upon or breaches this Agreement for any other reason, in addition to any and all rights that Licensor may have against Licensee, Licensor may, in its sole discretion, immediately terminate this Agreement if: 
	 	 	 
	 	 	(i)   such default or breach occurs more than once during the Term after written notice was sent by Licensor to Licensee via express courier service, and no cure has been effectuated within 10 days of receipt of said notice; or
	 	 	 
	 	 	(ii)   such default or breach occurs two or more times during any Year, regardless of whether Licensee has cured the default or  breach; or
	 	 	 
	 	 	If Licensee files a petition in bankruptcy, is adjudicated a bankrupt or files a petition or otherwise seeks relief under or pursuant to any bankruptcy, insolvency or reorganization statute or proceeding, or if a petition in bankruptcy is filed against it and is not dismissed within 60 days or it dissolves or takes steps to dissolve or it becomes insolvent or makes an assignment for the benefit of its creditors or a custodian, receiver or trustee is appointed for it or a substantial portion of its business or assets, this Agreement shall terminate automatically and immediately.
	 	 	 
	 	 	In any case of termination due to Licensee’s default or breach of this Agreement, in addition to all other rights and remedies, and in addition to Licensee’s other rights and remedies, the remaining GMR for the balance of the then current Term shall be immediately due and payable.
	 	 	 
	23.	Termination:	Subject to the Sell Off Period, upon the expiration or sooner termination of this Agreement, the license herein granted and all rights of Licensee shall cease and terminate. Upon such expiration or termination, Licensee shall immediately discontinue and abandon any and all use of the Licensed Trademark, shall cease all manufacture, sale and deliveries of the Licensed Products, shall cease to represent or advertise that Licensee is in any way connected with Licensor or the Licensed Products and shall deliver to Licensor, free of charge, all materials used for the manufacture, distribution or sale of Licensed Products, including all sample Licensed Products and all materials with the Licensed Trademark thereon.
	 	 	 
	 	 	Notwithstanding the expiration or termination hereof, Licensor shall have, and hereby reserves, all rights and remedies that it has, or that are granted to it by operation of law, (i) to enjoin the unlawful or unauthorized use of the Licensed Trademark or sale of Licensed Products by Licensee or any breach by Licensee of any of its confidentiality and other obligations, (ii) to collect any sums payable by Licensee, and (iii) to recover damages for breach of this Agreement.  The foregoing injunctive relief may be sought in the courts, notwithstanding the arbitration provisions hereof, and, if applicable, also may be sought prior to or in lieu of termination or in aid of arbitration.  In seeking injunctive relief, Licensor need not secure a bond or other security or prove any actual damages.  Also, in any proceeding for an injunction, and upon any motion for a temporary or permanent injunction, Licensee’s ability to answer in damages shall not be a bar or interposed as a defense to the granting of such injunction.  Licensor’s right and remedy to seek injunctive relief is in addition to, and not in lieu of, any other rights and remedies available to it under law or in equity.  In addition, nothing in this paragraph is intended to prevent Licensor from commencing an arbitration to recover damages and/or from obtaining other relief prior to or in lieu of termination.
	 	 	 
	 	 	Licensor may, during the Term, negotiate and enter into agreements with third parties pursuant to which it may grant a license to use the Licensed Trademark in connection with Products, provided that the first seasonal collection of such Products sold by any such third party licensee shall be a seasonal collection after the final seasonal collection of Licensed Products sold by Licensee hereunder.  The third party licensee may show, advertise and market, accept orders for its Products in the ordinary course prior to the expiration or sooner termination hereof.  Also, if Licensor elects to manufacture, market, distribute and sell in the Territory Products bearing the Licensed Trademark after the final seasonal collection of Licensed Products sold by Licensee hereunder itself or through an affiliate, rather than through a third party licensee, Licensor and/or its affiliates may show, advertise and market, accept orders for and ship its Products in the ordinary course prior to the expiration or sooner termination hereof.  Nothing in this Section is intended to limit or affect in any way any of Licensor’s rights set forth herein with respect to the use of the Licensed Trademark in connection with Products in the Territory by Licensor or any of its affiliates or third party licensees during the Term.

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	 	 	Upon the expiration or termination hereof, Licensee shall not be entitled to any indemnification, reimbursement or compensation for any investment of capital or other expenditure that Licensee may make in connection herewith, any goodwill created by any activities of Licensee hereunder or the introduction to Licensor of new customers for Products.  Licensee shall make no claim against Licensor with respect to the foregoing, whether or not, upon the expiration or termination hereof, Licensor engages a new licensee for Products bearing the Licensed Trademark in any portion of the Territory, or Licensor or any of its affiliates commences or engages a distributor for the distribution and/or sale of Products bearing the Licensed Trademark in any portion of the Territory.
	 	 	 
	24.	Other License Terms:	Force Majeure. If either party is materially hampered from performing hereunder by reason of any law, natural disaster, labor controversy, war or any similar event beyond its reasonable control (“Force Majeure”), failure to perform shall not be deemed a breach of or default under this Agreement, and neither party shall be liable to the other therefore. If a Force Majeure continues for more than a period of time that Licensor determines in its sole reasonable discretion would compromise either the Licensed Trademark or the Licensed Products or opportunities related to the Licensed Trademark or Licensed Products, then upon written notice, Licensor may terminate this Agreement without further liability to Licensee. This shall not be applicable to any Licensee obligations involving the payment of money to Licensor.
	 	 	 
	 	 	Arbitration. Any and all disputes, controversies and claims arising out of or relating to this Agreement (except disputes, controversies and claims relating to or affecting Licensor’s ownership of or the validity of the Licensed Trademark or any registration thereof, or any application for registration thereof (“Trademark Disputes”)) shall be settled and determined by arbitration in New York City before a Commercial Panel of three arbitrators in accordance with and pursuant to the then existing Commercial Arbitration Rules of the American Arbitration Association. The arbitrators, in their discretion, may award specific performance or injunctive relief (but not punitive damages) and costs and reasonable attorneys’ fees and expenses to any party in any arbitration and the courts also may do so with regard to injunctive relief sought by Licensor and with regard to Trademark Disputes (collectively, “Court Actions”). However, in any arbitration proceeding, the arbitrators may not change, modify or alter any express condition, term or provision hereof, and to that extent the scope of their authority is expressly limited. The arbitration award shall be final and binding upon the parties and judgment may be entered thereon in any court having jurisdiction.
	 	 	 
	 	 	Court Actions. Court Actions shall be brought in New York City in any court having jurisdiction, except that Licensor also may bring an injunctive proceeding in any jurisdiction where appropriate by reason of its subject matter. Each of Licensor and Licensee irrevocably submits to the jurisdiction of the state and Federal courts in New York City and the courts in such other jurisdictions in Court Actions and waives any claim or defense of inconvenient forum or lack of personal jurisdiction in such forum under any applicable law or decision or otherwise.
	 	 	 
	 	 	Applicable Law. The Agreement shall be governed by and construed in accordance with the laws of the State of New York applicable to agreements made and to be performed in said State without reference to the choice of law provisions thereof.
	 	 	 
	 	 	Travel. In connection with travel undertaken by a Licensor representative at the direction of Licensee for product development, advertising or promotional purposes or otherwise, Licensee shall provide travel and accommodations for Licensor’s representative, and shall reimburse Licensor for all other reasonable expenses Licensor may incur as a result of such travel. 

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	29.	Binding Effect:	This Agreement shall inure to the benefit of and shall be binding upon the parties, Licensor’s successors and assigns and Licensee’s permitted successors and assigns. 
	 	 	 
	30.	Entire Understanding:	The Agreement constitutes the complete understanding between the parties with respect to the subject matter hereof, supersedes all prior oral or written understandings and agreements relating thereto and shall not be modified, amended or terminated except as provided herein or by written instrument signed by all of the parties hereto.  Neither party is acting in reliance upon any representation or guarantee of the other besides those explicitly provided for in this Agreement.
	 	 	 
	31.	No Waiver:	The failure by either party to object to any breach of this Agreement, or to enforce at any time or for any period any provision of this Agreement, shall not constitute a waiver of such provision or of such party's rights or remedies, or consent to the modification of this Agreement.
	 	 	 
	32.	Partial Invalidity:	If any term, covenant or provision contained herein shall be invalid or illegal, such invalidity or illegality shall not impair, invalidate or nullify the other provisions of this Agreement.
	 	 	 
	33.	Notice:	All reports, approvals, consents, notices and other communications required or permitted by this Agreement shall be in writing and shall be duly given, upon receipt by the addressee, if delivered personally, if mailed (by certified or registered mail, return receipt requested) or if delivered by nationally-recognized overnight courier or mail service that requires the addressee to acknowledge, in writing, the receipt thereof, to the party concerned at its address set forth on page 1 (or at any other address as a party may specify by notice in writing to the other).  All Communications to Licensor shall be sent to the attention of Mr. William Sweedler and Mr. Colin Dyne and/or such other individuals as hereafter may be designated by Licensor.  All Communications to Licensee shall be sent to the attention of _______________________________________________ and/or such other individuals as hereafter may be designated by Licensee.

 

NOTWITHSTANDING ANYTHING TO THE CONTRARY
HEREIN, THIS AGREEMENT IS CONTINGENT UPON LICENSOR ACQUIRING OWNERSHIP OF THE LICENSED TRADEMARK FROM DVS SHOE CO., INC. IN THE
CHAPTER 11 BANKRUPTCY PROCEEDING IN THE UNITED STATES BANKRUPTCY COURT, CENTRAL DISTRICT OF CALIFORNIA, ENTITLED “IN RE DVS
SHOE CO., INC., A CALIFORNIA CORPORATION” (Case No. 8:12-bk-16209 CB) AND, IF, FOR ANY REASON, LICENSOR FAILS TO ACQUIRE
OWNERSHIP OF THE LICENSED TRADEMARK FROM DVS SHOE CO., INC. BY JULY 2, 2012, THIS AGREEMENT SHALL TERMINATE AUTOMATICALLY AND BE
NULL AND VOID AND NEITHER LICENSOR NOR LICENSEE SHALL HAVE ANY LIABILITY TO THE OTHER ON ACCOUNT OF THIS AGREEMENT OR OTHERWISE
IN CONNECTION HEREWITH.

 

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IN WITNESS WHEREOF, the parties hereto
have duly executed this Agreement as of the day and year first written below.

 

	Licensor:	Licensee:
	DVS FOOTWEAR INTERNATIONAL, LLC	ELAN POLO INTERNATIONAL, INC.
	By its Member:	 
	   SEQUENTIAL BRANDS GROUP, INC	 

 

 

	By:
/s/ William Sweedler	By:___________________________
	Title: Chairman	Title: Controller__________________

 

 

And by its Member:

 

ELAN POLO INTERNATIONAL, INC.

 

 

 

By:____________________________

 

Title: ___________________________

 

 

 

Date: June 29, 2012

 

 

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EXHIBIT 1

THE LICENSED TRADEMARK(S)

 

 

 

DVS

 

    	11

    	 

    

EXHIBIT 2

 

“Approved
Customers” shall mean all customers selected by Licensee and approved by Licensor in its reasonable discretion and includes
all department stores, specialty footwear retailers, specialty action sports market, independent specialty stores, .coms and sporting
goods stores to which the former DVS Company sold Products bearing the Licensed Trademark.

 

“Designs”
shall mean all designs, samples, styles and materials that are selected, created or otherwise utilized by or for Licensor or Licensee
in connection with the Licensed Products, but shall exclude generic designs.

 

“Licensor’s
Approval” or “Approved by Licensor” shall mean the process of obtaining Licensor’s approval
for matters covered in this Agreement. Licensor's Approval under this Agreement may be based solely on Licensor's subjective standards
and can be withheld at the sole discretion of Licensor. Within 15 days of Licensor’s receipt of any submission from Licensee
for Approval, Licensor may provide its approval or disapproval to Licensee. If Licensor does not notify Licensee of its approval
or disapproval within the designated time period, then the matter submitted to Licensor shall be deemed disapproved. Notwithstanding
the above, if Licensor provides Licensee with any materials for use in connection with Licensed Products, e.g., Designs, then such
materials shall be deemed to have Licensor’s Approval for purposes of this Agreement, however, such Approval does not extend
to the finished Licensed Products incorporating Licensor’s materials, which requires separate Approval as set forth herein.

 

“Dollars”
or “US$” in this Agreement shall refer to United States currency.

 

“Days”
in this Agreement shall refer to standard business days, excluding weekends and holidays.

 

“Year”
shall mean the period from the Execution Date through December 31, 2013 and each 12-month period commencing on each January 1st
thereafter during the Term.

 

“Collection”
shall mean the common market term used to denote a group of designs of the Licensed Products, including samples or swatch samples
used to sell the Licensed Products.

 

“Licensed
Products” means Products bearing the Licensed Trademark.

 

“Net Sales”
means the invoiced or shipped (whichever is earlier) amount of Licensed Products sold by Licensee, less the amount of any trade
discounts actually earned and taken by customers, any markdown allowances and any authorized returns for damaged or defective Licensed
Products, but only to the extent that such discounts, markdown allowances and returns during an Year do not exceed in the aggregate
***2% of gross sales during such Year.
No deduction shall be made for other discounts, allowances or returns, including, without limitation, cash discounts granted as
terms of payment; early payment discounts; promotional/new store discounts; and allowances or discounts relating to advertising,
or uncollectible accounts or costs incurred by Licensee costs incurred in manufacturing, importing, promoting, advertising or selling
Licensed Products. Sales or other transfers of Licensed Products to any of Licensee’s affiliates or otherwise not in arm’s
length transactions shall be deemed to be sales made at the regular wholesale prices of such Licensed Products.

 

“Closeout Accounts” means
the customers to which closeout Licensed Products are sold. Closeout Accounts shall be those accounts that sell brands similar
in nature to DVS, including, but not limited to, DC, Vans, and Nike. TJX, Ross, Burlington Coat Factory, Century 21, and Shonac
are approved Closeout Accounts.

 

 

“Market Period”
shall mean the spring/summer and fall/winter seasons for each Year.

 

“Execution
Date” shall mean the date this Agreement is executed by Licensee.

 

 

 

2 Terms represented by this
symbol are considered confidential. These confidential terms have been omitted pursuant to a Confidential Treatment Request filed
with the SEC and have been filed separately with the SEC. 

    	12

    	 

    

 

 

EXHIBIT 3

 

THE TERRITORY

 

The
following countries:

Global

 

Licensee’s
right to sell Licensed Products in a country is subject to any restrictions imposed by the government of the United States on the
sale of products to customers in such country.

 

Licensee shall
not use the Licensed Trademark, nor may any Licensed Products be advertised, marketed, promoted, publicized or otherwise exploited
or distributed, offered for sale or sold, in any country in which the Licensed Trademark had not theretofore been registered for
Products or an application to register the Licensed Trademark for Products in such class had not theretofore been filed, until
an appropriate trademark search has been conducted, the Licensed Trademark appear available for use in connection with Products
in such country and an application to register the Licensed Trademark for Products has been filed in such country.

 

Licensee acknowledges
that Licensor has not made, and is not making, any representation or warranty to Licensee that Licensor is the owner of the Licensed
Trademark for Products in any particular country. Hence, if Licensor determines in good faith that the use of the Licensed Trademark
on Products in any country violates or may violate the trademark or other rights of another, upon receipt of notice from Licensor,
Licensee shall not sell Licensed Products in or to such country. It shall not be a breach or default by Licensor and Licensor shall
not be liable to Licensee if Licensee is prevented from selling Licensed Products in any particular country.

 

    	13

    	 

    

 

EXHIBIT 4

 

MINIMUM GUARANTEED ROYALTIES (GMR)
AND GUARANTEED SALES; RENEWAL

 

	Year	Dates	GMR	Guaranteed Sales
	1	Effective Date to December 31, 2013	US$ ***[3]	US$ ***
	2	January 1, 2014 to December 31, 2014	US$ ***	US$ ***
	3	January 1, 2015 to December 31, 2015	US$ ***	US$ ***
	4	January 1, 2016 to December 31, 2016	US$ ***	US$ ***
	5	January 1, 2017 to December 31, 2017	US$ ***	US$ ***
	6	January 1, 2018 to December 31, 2018	US$ ***	US$ ***
	7	January 1, 2019 to December 31, 2019	US$ ***	US$ ***

 

 

Renewal

 

Provided that the aggregate Royalty paid based on Net Sales
during Year 4 is $*** or greater and Licensee is not in default of the Agreement, Licensee shall be granted a renewal option to
renew this Agreement for a five-Year Renewal Period (“First Renewal”).

Licensee will advise Licensor if it intends to renew on or before
January 1, 2016. The GMR for each Year during the First Renewal will be US$ *** and the Guaranteed Sales for a Year during the
Renewal Period will be US$***

 

Provided that the aggregate Royalty paid based on Net Sales
during Year 10 is $*** or greater and Licensee is not in default of the Agreement, Licensee shall be granted a second renewal option
to renew this Agreement for an additional five-Year Renewal Period (“Second Renewal”). Licensee will advise Licensor
if it intends to renew on or before January 1, 2023. The GMR for each Year during the Second Renewal will be US$ *** and the Guaranteed
Sales for a Year during the Renewal Period will be US$***

 

 

 

3 Terms represented by this symbol are considered
confidential. These confidential terms have been omitted pursuant to a Confidential Treatment Request filed with the SEC and have
been filed separately with the SEC. 

 

    	14

    	 

    

EXHIBIT 5 – ROYALTY PAYMENT SCHEDULE

GMR

 

 

Year 1 - The GMR is payable as follows
- Four equal installments of US$***4 on
each of July 1, 2012, October 1, 2012, January 1, 2013 and April 1, 2013.

 

Each Year after Year 1 – The
GMR is payable in four equal quarterly installments on the first day of January, April, July and October during each Year.

 

Royalty

 

Licensee shall
account for and pay the Royalty quarterly within 30 calendar days after the close of each three-month period during each Year (or
portion thereof in the event of prior termination for any reason), except that, for the first Year, the first accounting and payment
of Royalty shall be for the period commencing on the Execution Date and continuing through December 31, 2012. The Royalty payable
for each accounting and payment period during a Year shall be computed on the basis of Net Sales during such Year through the end
of such accounting and payment period, with a credit for GMR and any Royalty previously paid for such Year only.

 

The GMR for each Year shall be credited
against the Royalty for only the same Year and no payment of Royalty for any Year in excess of the GMR for the same Year shall
be credited against the GMR due to Licensor for any other Year. Also, under no circumstances shall any payments of GMR or Royalty
hereunder be refundable.

 

Payments
by Licensee shall be made in United States Dollars via wire transfers, or in any other manner that Licensor designates. 

 

“Net
Sales,” with respect to sales of Licensed Products in a currency other than United States Dollars,
for all purposes hereof, shall be computed on the basis of the conversion rate of the currency of sale
into United States Dollars quoted in The Wall Street Journal (the “Conversion Rate”) as of the close of business on
the last business day of each applicable accounting and payment period. Also, for purposes of determining if Licensee has satisfied
the Marketing Obligation for a Year, the amount spent by Licensee in a currency other than United States Dollars
shall be converted into United States Dollars on the basis of the applicable Conversion Rate as of the close of business on the
last business day of such Year.

 

 

 

4
Terms represented by this symbol are considered confidential. These confidential terms have been omitted pursuant to a Confidential
Treatment Request filed with the SEC and have been filed separately with the SEC. 

 

    	15

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