Document:

Exhibit 4.1

 

REGISTRATION RIGHTS AGREEMENT

 

This Registration Rights Agreement
(this “Agreement”) is made and entered into as of April 8, 2022, between Digital Brands Group, Inc., a Delaware
corporation (the “Company”), and each of the several and the holder(s) of the Company’s Warrants and Notes
(as such terms are defined below) (each such holder, an “Investor” and, collectively, the “Investors”).

 

This Agreement is made pursuant
to the Securities Purchase Agreement, dated as of April 8, 2022, between the Company and the Investors named therein (the “Purchase
Agreement”).

 

The Company and each Investor
hereby agrees as follows:

 

1.            Definitions.

 

Capitalized terms used and
not otherwise defined herein that are defined in the Purchase Agreement shall have the meanings given such terms in the Purchase Agreement.
As used in this Agreement, the following terms shall have the following meanings:

 

“Advice”
shall have the meaning set forth in Section 7(c).

 

“Common
Stock” means the common stock of the Company, par value $0.001 per share.

 

“Effectiveness
Date” means, with respect to the Initial Registration Statement required to be filed hereunder, the 60th calendar
day following the date of a Liquidity Event (or, in the event of a “full review” by the Commission, the 75th calendar
day following the date hereof) and with respect to any additional Registration Statements which may be required pursuant to Section 3(c) or
Section 3(c), the 20th calendar day following the date on which an additional Registration Statement is required
to be filed hereunder (or, in the event of a “full review” by the Commission, the 60th calendar day following
the date hereof); provided, however, that in the event the Company is notified by the Commission that one or more
of the above Registration Statements will not be reviewed or is no longer subject to further review and comments, the Effectiveness Date
as to such Registration Statement shall be the fifth Trading Day following the date on which the Company is so notified if such date precedes
the dates otherwise required above, provided, further, if such Effectiveness Date falls on a day that is not a Trading Day, then the Effectiveness
Date shall be the next succeeding Trading Day.

 

“Effectiveness
Period” shall have the meaning set forth in Section 3(a).

 

“Event”
shall have the meaning set forth in Section 3(d).

 

“Event
Date” shall have the meaning set forth in Section 3(d).

 

“Excluded
Registration” means any registration of equity securities of the Company solely for a Company sponsored employee benefit
plan.

 

“Filing
Date” means, with respect to the Initial Registration Statement required hereunder, the 45th calendar day following
the Scheduled Maturity Date (as defined in the Notes), and with respect to any Registration Statement which may be required pursuant to
Section 3(c), the earliest practical date on which the Company is permitted by SEC Guidance to file such additional Registration
Statement related to the Registrable Securities.

 

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“Holder”
or “Holders” means the holder or holders, as the case may be, from time to time of Registrable Securities.

 

“Indemnified
Party” shall have the meaning set forth in Section 6(c).

 

“Indemnifying
Party” shall have the meaning set forth in Section 6(c).

 

“Initial
Registration Statement” means the initial Registration Statement filed pursuant to Section 3 of this Agreement.

 

“Losses”
shall have the meaning set forth in Section 6(a).

 

“Notes”
has the meaning set forth in the Purchase Agreement.

 

“Piggyback
Registrations” has the meaning set forth in Section 1(a).

 

“Plan of
Distribution” shall have the meaning set forth in Section 3(a).

 

“Prospectus”
means the prospectus included in a Registration Statement (including, without limitation, a prospectus that includes any information previously
omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated by the Commission
pursuant to the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of
any portion of the Registrable Securities covered by a Registration Statement, and all other amendments and supplements to the Prospectus,
including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference in such Prospectus.

 

“Registrable
Securities” means, as of any date of determination, (a) the Warrants, (b) all Warrant Shares then issued and issuable
upon exercise of the Warrants (assuming on such date the Warrants are exercised in full without regard to any exercise limitations therein),
(c) all Conversion Shares then issued and issuable upon conversion of the Notes (assuming on such date the Notes are exercised in
full without regard to any exercise limitations therein), (d) any additional shares of Common Stock then issued and issuable in connection
with any anti-dilution provisions in Notes or the Warrants (assuming on such date that the Notes are converted or Warrants are exercised
in full without regard to any exercise limitations therein), and (e) any securities issued or then issuable upon any share split,
dividend or other distribution, recapitalization or similar event with respect to the foregoing; provided, however, that any
such Registrable Securities shall cease to be Registrable Securities (and the Company shall not be required to maintain the effectiveness
of any, or file another, Registration Statement hereunder with respect thereto) for so long as (a) a Registration Statement with
respect to the sale of such Registrable Securities is declared effective by the Commission under the Securities Act and such Registrable
Securities have been disposed of by the Holder in accordance with such effective Registration Statement, (b) such Registrable Securities
have been previously sold in accordance with Rule 144, or (c) such securities become eligible for resale without volume or manner-of-sale
restrictions and without current public information pursuant to Rule 144 as set forth in a written opinion letter to such effect,
addressed, delivered and acceptable to the Transfer Agent and the affected Holders (assuming that such securities and any securities issuable
upon exercise, conversion or exchange of which, or as a dividend upon which, such securities were issued or are issuable, were at no time
held by any Affiliate of the Company, as reasonably determined by the Company, upon the advice of counsel to the Company.

 

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“Registration
Statement” means any registration statement required to be filed hereunder pursuant to Section 2, Section 3(a), and
any additional registration statements contemplated by Section 4(b) or Section (c), including (in each case) the Prospectus,
amendments and supplements to any such registration statement or Prospectus, including pre- and post-effective amendments, all exhibits
thereto, and all material incorporated by reference or deemed to be incorporated by reference in any such registration statement.

 

“Rule 415”
means Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted from
time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect
as such Rule.

 

“Rule 424”
means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted from
time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect
as such Rule.

 

“Selling
Securityholder Questionnaire” shall have the meaning set forth in Section 3(a).

 

“SEC Guidance”
means (i) any publicly-available written or oral guidance of the Commission staff, or any comments, requirements or requests of the
Commission staff and (ii) the Securities Act.

 

“Warrants”
has the meaning set forth in the Purchase Agreement.

 

2.            Piggyback
Registration.

 

(a)            Right
to Piggyback. (i) Whenever the Company after the date of a Triggering Financing (as such term is defined in the Purchase Agreement)
is required or proposes to register any of its equity securities under the Securities Act (including primary and secondary registrations,
and other than pursuant to an Excluded Registration) (a “Piggyback Registration”), the Company will give at
least thirty (30) days prior written notice to all Holders of its intention to effect such Piggyback Registration and, subject to the
terms of Sections 2(b) and 2(c), will include in such Piggyback Registration (and in all related registrations or qualifications
under blue sky laws and in any related underwriting) all Registrable Securities with respect to which the Company has received written
requests for inclusion therein within twenty (20) days after delivery of the Company’s notice. Such written requests for inclusion
will inform the Company of the number of Registrable Securities such Holder wishes to include in such registration statement. If a Holder
decides not to include all of its Registrable Securities in any registration statement thereafter filed by the Company, such Holder will
nevertheless continue to have the right to include any Registrable Securities in any subsequent registration statement or registration
statements as may be filed by the Company with respect to offerings of its securities, all upon the terms and conditions set forth herein.
Any participating Holders may withdraw its request for inclusion at any time prior to executing the underwriting agreement, or if none,
prior to the applicable registration statement becoming effective.

 

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(ii) If
a Registration Statement under which the Company gives notice under this Section 2 is for an underwritten offering, then the Company
will so advise the Holders of Registrable Securities. In such event, the right of any such Holder’s Registrable Securities
to be included in a registration pursuant to this Section 2 will be conditioned upon such Holder’s participation in such underwriting
and the inclusion of such Holder’s Registrable Securities in the underwriting to the extent provided herein. All Holders proposing
to distribute their Registrable Securities through such underwriting will enter into an underwriting agreement in customary form with
the managing underwriter or underwriter(s) selected for such underwriting. If any Holder disapproves of the terms of any such underwriting,
such Holder may elect to withdraw therefrom by written notice to the Company and the underwriter, delivered at least ten (10) Business
Days prior to the effective date of the registration statement. Any Registrable Securities excluded or withdrawn from such underwriting
will be excluded and withdrawn from the registration but are eligible for a future registration. For any Holder which is a partnership
or corporation, the partners, retired partners and shareholders of such Holder, or the estates and Family Group of any such partners and
retired partners and any trusts for the benefit of any of the foregoing persons will be deemed to be a single “Holder,” and
any pro rata reduction with respect to such “Holder” will be based upon the aggregate amount of shares carrying registration
rights owned by all entities and individuals included in such “Holder,” as defined in this sentence.

 

(b)            Priority
on Primary Registrations. If a Piggyback Registration is an underwritten primary registration on behalf of the Company, and the managing
underwriters advise the Company in writing that in their good faith opinion the number of securities requested to be included in such
registration exceeds the number which can be sold in such offering without adversely affecting the marketability, proposed offering price,
timing or method of distribution of the offering, the Company will include in such registration: (i) first, the securities
the Company proposes to sell, (ii) second, any Investor Registrable Securities requested to be included in such registration
by any Investor which, in the opinion of the underwriters, can be sold without any such adverse effect, pro rata among such
Investors on the basis of the number of Registrable Securities owned by each such Investor, and (iii) third, other securities
requested to be included in such registration which, in the opinion of the underwriters, can be sold without any such adverse effect.

 

(c)            Priority
on Secondary Registrations. If a Piggyback Registration is an underwritten secondary registration on behalf of holders of the
Company’s equity securities and the managing underwriters advise the Company in writing that in their good faith opinion the number
of securities requested to be included in such registration exceeds the number which can be sold in such offering without adversely affecting
the marketability, proposed offering price, timing or method of distribution of the offering, the Company will include in such registration:
(i) first, the securities requested to be included therein by the Holders initially requesting such registration which, in
the opinion of the underwriters, can be sold without any such adverse effect, (ii) second, the Investor Registrable Securities
requested to be included in such registration, pro rata among the participating Holders holding such Investor Registrable Securities
on the basis of the number of Investor Registrable Securities owned by each such participating Holders which, in the opinion of the underwriters,
can be sold without any such adverse effect, (iii) third, other securities requested to be included in such registration which,
in the opinion of the underwriters, can be sold without any such adverse effect.

 

(d)            Right
to Terminate Registration. The Company will have the right to terminate or withdraw any registration initiated by it under this Section 2,
whether or not any holder of Registrable Securities has elected to include securities in such registration. The Company shall give prompt
written notice of such termination to all participating Holders.

 

(e)            Selection
of Underwriters. If any Piggyback Registration is an underwritten offering, the legal counsel for the Company, the investment banker(s) and
manager(s) for the offering shall be selected by the Company.

 

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3.            Shelf
Registration.

 

(a)            If
the Notes shall not have been paid in full in accordance with their term on or after the Scheduled Maturity Date under (and as defined
in) the Notes, then, on or prior to the Filing Date, the Company shall prepare and file with the Commission a Registration Statement covering
the resale of all of the Registrable Securities that are not then registered on an effective Registration Statement for an offering to
be made on a continuous basis pursuant to Rule 415. Each Registration Statement filed hereunder shall be on Form S-1 (except
if the Company is not then eligible to register for resale the Registrable Securities on Form S-1, in which case such registration
shall be on another appropriate form in accordance herewith, subject to the provisions of Section 2(e)) and shall contain substantially
the “Plan of Distribution” attached hereto as Annex A and substantially the “Selling Securityholder”
section attached hereto as Annex B; provided, however, that no Holder shall be required to be named as an “underwriter”
without such Holder’s express prior written consent. Subject to the terms of this Agreement, the Company shall use its best efforts
to cause a Registration Statement filed under this Agreement (including, without limitation, under Section 3(c)) to be declared effective
under the Securities Act as promptly as possible after the filing thereof, but in any event no later than the applicable Effectiveness
Date, and shall use its best efforts to keep such Registration Statement continuously effective under the Securities Act until the date
that all Registrable Securities covered by such Registration Statement (i) have been sold, thereunder or pursuant to Rule 144,
or (ii) may be sold without volume or manner-of-sale restrictions pursuant to Rule 144 and without the requirement for the Company
to be in compliance with the current public information requirement under Rule 144, as determined by the counsel to the Company pursuant
to a written opinion letter to such effect, addressed and acceptable to the Transfer Agent and the affected Holders (the “Effectiveness
Period”). The Company shall telephonically request effectiveness of a Registration Statement as of 5:00 p.m. (New York
City time) on a Trading Day. The Company shall immediately notify the Holders via facsimile or by e-mail of the effectiveness of a Registration
Statement on the same Trading Day that the Company telephonically confirms effectiveness with the Commission, which shall be the date
requested for effectiveness of such Registration Statement. The Company shall, by 9:30 a.m. (New York City time) on the Trading Day
after the effective date of such Registration Statement, file a final Prospectus with the Commission as required by Rule 424. Failure
to so notify the Holder within one (1) Trading Day of such notification of effectiveness or failure to file a final Prospectus as
foresaid shall be deemed an Event under Section 3(d).

 

(b)            Notwithstanding
the registration obligations set forth in Section 3(a), if the Commission informs the Company that all of the Registrable Securities
cannot, as a result of the application of Rule 415, be registered for resale as a secondary offering on a single registration statement,
the Company agrees to promptly inform each of the Holders thereof and use its commercially reasonable efforts to file amendments to the
Initial Registration Statement as required by the Commission, covering the maximum number of Registrable Securities permitted to be registered
by the Commission, on Form S-1 or such other form available to register for resale the Registrable Securities as a secondary offering,
subject to the provisions of Section 3(e); with respect to filing on Form S-1 or other appropriate form, and subject to the
provisions of Section 3(d) with respect to the payment of liquidated damages; provided, however, that prior to filing
such amendment, the Company shall be obligated to use diligent efforts to advocate with the Commission for the registration of all of
the Registrable Securities in accordance with the SEC Guidance, including without limitation, Compliance and Disclosure Interpretation
612.09.

 

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(c)            Notwithstanding any other provision of this Agreement and subject to the payment of liquidated damages
pursuant to Section 3(d), if the Commission or any SEC Guidance sets forth a limitation on the number of Registrable Securities
permitted to be registered on a particular Registration Statement as a secondary offering (and notwithstanding that the Company used
diligent efforts to advocate with the Commission for the registration of all or a greater portion of Registrable Securities), unless
otherwise directed in writing by a Holder as to its Registrable Securities, the number of Registrable Securities to be registered on
such Registration Statement will be reduced as follows:

 

(i)             First,
the Company shall reduce or eliminate any securities to be included other than Registrable Securities;

 

(ii)            Second,
the Company shall reduce Registrable Securities represented by Warrant Shares (applied, in the case that some Warrant Shares may be registered,
to the Holders on a pro rata basis based on the total number of unregistered Warrant Shares held by such Holders); and

 

(iii)           Third,
the Company shall reduce Registrable Securities represented by Shares (applied, in the case that some Shares may be registered, to the
Holders on a pro rata basis based on the total number of unregistered Shares held by such Holders).

 

In the event of
a cutback hereunder, the Company shall give the Holder at least five (5) Trading Days prior written notice along with the calculations
as to such Holder’s allotment. In the event the Company amends the Initial Registration Statement in accordance with the foregoing,
the Company will use its best efforts to file with the Commission, as promptly as allowed by Commission or SEC Guidance provided to the
Company or to registrants of securities in general, one or more registration statements on Form S-1 or such other form available
to register for resale those Registrable Securities that were not registered for resale on the Initial Registration Statement, as amended.

 

(d)            If:
(i) the Initial Registration Statement is not filed on or prior to its Filing Date (if the Company files the Initial Registration
Statement without affording the Holders the opportunity to review and comment on the same as required by Section 3(a) herein,
the Company shall be deemed to have not satisfied this clause (i)), or (ii) the Company fails to file with the Commission a request
for acceleration of a Registration Statement in accordance with Rule 461 promulgated by the Commission pursuant to the Securities
Act, within five (5) Trading Days of the date that the Company is notified (orally or in writing, whichever is earlier) by the Commission
that such Registration Statement will not be “reviewed” or will not be subject to further review, or (iii) prior to the
effective date of a Registration Statement, the Company fails to file a pre-effective amendment and otherwise respond in writing to comments
made by the Commission in respect of such Registration Statement within ten (10) calendar days after the receipt of comments by or
notice from the Commission that such amendment is required in order for such Registration Statement to be declared effective, or (iv) a
Registration Statement registering for resale all of the Registrable Securities, subject to the cutback limitations set forth in Section 3(c) of
this Agreement, is not declared effective by the Commission by the Effectiveness Date of the Initial Registration Statement, or (v) after
the effective date of a Registration Statement, such Registration Statement ceases for any reason to remain continuously effective as
to all Registrable Securities included in such Registration Statement, or the Holders are otherwise not permitted to utilize the Prospectus
therein to resell such Registrable Securities, for more than ten (10) consecutive calendar days or more than an aggregate of fifteen
(15) calendar days (which need not be consecutive calendar days) during any 12-month period (any such failure or breach being referred
to as an “Event”, and for purposes of clauses (i) and (iv), the date on which such Event occurs, and for purpose
of clause (ii) the date on which such five (5) Trading Day period is exceeded, and for purpose of clause (iii) the date
which such ten (10) calendar day period is exceeded, and for purpose of clause (v) the date on which such ten (10) or fifteen
(15) calendar day period, as applicable, is exceeded being referred to as “Event Date”), then, in addition to any other
rights the Holders may have hereunder or under applicable law, on each such Event Date and on each monthly anniversary of each such Event
Date (if the applicable Event shall not have been cured by such date) until the applicable Event is cured, the Company shall pay to each
Holder an amount in cash, as partial liquidated damages and not as a penalty, equal to the product of 2.0% multiplied by the aggregate
Subscription Amount paid by such Holder pursuant to the Purchase Agreement. If the Company fails to pay any partial liquidated damages
pursuant to this Section in full within seven days after the date payable, the Company will pay interest thereon at a rate of 18%
per annum (or such lesser maximum amount that is permitted to be paid by applicable law) to the Holder, accruing daily from the date such
partial liquidated damages are due until such amounts, plus all such interest thereon, are paid in full. The partial liquidated damages
pursuant to the terms hereof shall apply on a daily pro rata basis for any portion of a month prior to the cure of an Event. The Company
shall not accrue any liquidated damages under this Section 3(d) beyond the 366th day from the date of this Agreement, provided,
that amounts that have accrued and interest due thereon will continue to accrue until paid in full.

 

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(e)            If
Form S-1 is not available for the registration of the resale of Registrable Securities hereunder, the Company shall register the
resale of the Registrable Securities on another appropriate form.

 

(f)         
    Notwithstanding anything to the contrary contained herein, in no event shall the Company be permitted to
name any Holder or affiliate of a Holder as any Underwriter without the prior written consent of such Holder.

 

4.            Registration
Procedures.

 

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

 

(a)            Not
less than five (5) Trading Days prior to the filing of each Registration Statement and not less than one (1) Trading Day prior
to the filing of any related Prospectus or any amendment or supplement thereto (including any document that would be incorporated or deemed
to be incorporated therein by reference), the Company shall (i) furnish to each Holder copies of all such documents proposed to be
filed, which documents (other than those incorporated or deemed to be incorporated by reference) will be subject to the review of such
Holders, and (ii) cause its officers and directors, counsel and independent registered public accountants to respond to such inquiries
as shall be necessary, in the reasonable opinion of respective counsel to each Holder, to conduct a reasonable investigation within the
meaning of the Securities Act. The Company shall not file a Registration Statement or any such Prospectus or any amendments or supplements
thereto to which the Holders of a majority of the Registrable Securities shall reasonably object in good faith, provided that, the Company
is notified of such objection in writing no later than five (5) Trading Days after the Holders have been so furnished copies of a
Registration Statement or one (1) Trading Day after the Holders have been so furnished copies of any related Prospectus or amendments
or supplements thereto. Each Holder agrees to furnish to the Company a completed questionnaire in the form attached to this Agreement
as Annex B (a “Selling Securityholder Questionnaire”) on a date that is not less than two (2) Trading
Days prior to the Filing Date or by the end of the fourth (4th) Trading Day following the date on which such Holder receives
draft materials in accordance with this Section.

 

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(b)            (i) Prepare
and file with the Commission such amendments, including post-effective amendments, to a Registration Statement and the Prospectus used
in connection therewith as may be necessary to keep a Registration Statement continuously effective as to the applicable Registrable Securities
for the Effectiveness Period and prepare and file with the Commission such additional Registration Statements in order to register for
resale under the Securities Act all of the Registrable Securities, (ii) cause the related Prospectus to be amended or supplemented
by any required Prospectus supplement (subject to the terms of this Agreement), and, as so supplemented or amended, to be filed pursuant
to Rule 424, (iii) respond as promptly as reasonably possible to any comments received from the Commission with respect to a
Registration Statement or any amendment thereto and provide as promptly as reasonably possible to the Holders true and complete copies
of all correspondence from and to the Commission relating to a Registration Statement (provided that, the Company shall excise any information
contained therein which would constitute material non-public information regarding the Company or any of its Subsidiaries), and (iv) comply
in all material respects with the applicable provisions of the Securities Act and the Exchange Act with respect to the disposition of
all Registrable Securities covered by a Registration Statement during the applicable period in accordance (subject to the terms of this
Agreement) with the intended methods of disposition by the Holders thereof set forth in such Registration Statement as so amended or in
such Prospectus as so supplemented.

 

(c)            If
during the Effectiveness Period, the number of Registrable Securities at any time exceeds 100% of the number of shares of Common Stock
then registered in a Registration Statement, then the Company shall file as soon as reasonably practicable, but in any case prior to the
applicable Filing Date, an additional Registration Statement covering the resale by the Holders of not less than the number of such Registrable
Securities.

 

(d)            Notify
the Holders of Registrable Securities to be sold (which notice shall, pursuant to clauses (iii) through (vi) hereof, be accompanied
by an instruction to suspend the use of the Prospectus until the requisite changes have been made) as promptly as reasonably possible
(and, in the case of (i)(A) below, not less than one (1) Trading Day prior to such filing) and (if requested by any such Person)
confirm such notice in writing no later than one (1) Trading Day following the day (i)(A) when a Prospectus or any Prospectus
supplement or post-effective amendment to a Registration Statement is proposed to be filed, (B) when the Commission notifies the
Company whether there will be a “review” of such Registration Statement and whenever the Commission comments in writing on
such Registration Statement, and (C) with respect to a Registration Statement or any post-effective amendment, when the same has
become effective, (ii) of any request by the Commission or any other federal or state governmental authority for amendments or supplements
to a Registration Statement or Prospectus or for additional information, (iii) of the issuance by the Commission or any other federal
or state governmental authority of any stop order suspending the effectiveness of a Registration Statement covering any or all of the
Registrable Securities or the initiation of any Proceedings for that purpose, (iv) of the receipt by the Company of any notification
with respect to the suspension of the qualification or exemption from qualification of any of the Registrable Securities for sale in any
jurisdiction, or the initiation or threatening of any Proceeding for such purpose, (v) of the occurrence of any event or passage
of time that makes the financial statements included in a Registration Statement ineligible for inclusion therein or any statement made
in a Registration Statement or Prospectus or any document incorporated or deemed to be incorporated therein by reference untrue in any
material respect or that requires any revisions to a Registration Statement, Prospectus or other documents so that, in the case of a Registration
Statement or the Prospectus, as the case may be, it will not contain any untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made,
not misleading, and (vi) of the occurrence or existence of any pending corporate development with respect to the Company that the
Company believes may be material and that, in the determination of the Company, makes it not in the best interest of the Company to allow
continued availability of a Registration Statement or Prospectus; provided, however, that in no event shall any
such notice contain any information which would constitute material, non-public information regarding the Company or any of its Subsidiaries.

 

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(e)            Use
its best efforts to avoid the issuance of, or, if issued, obtain the withdrawal of (i) any order stopping or suspending the effectiveness
of a Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification) of any of the Registrable
Securities for sale in any jurisdiction, at the earliest practicable moment.

 

(f) 
            Furnish to each Holder, without charge, at least
one conformed copy of each such Registration Statement and each amendment thereto, including financial statements and schedules, all
documents incorporated or deemed to be incorporated therein by reference to the extent requested by such Person, and all exhibits to
the extent requested by such Person (including those previously furnished or incorporated by reference) promptly after the filing of
such documents with the Commission, provided that any such item which is available on the EDGAR system (or successor thereto) need
not be furnished in physical form.

 

(g)            Subject
to the terms of this Agreement, the Company hereby consents to the use of such Prospectus and each amendment or supplement thereto by
each of the selling Holders in connection with the offering and sale of the Registrable Securities covered by such Prospectus and any
amendment or supplement thereto, except after the giving of any notice pursuant to Section 3(d).

 

(h)            Prior
to any resale of Registrable Securities by a Holder, use its commercially reasonable efforts to register or qualify or cooperate with
the selling Holders in connection with the registration or qualification (or exemption from the Registration or qualification) of such
Registrable Securities for the resale by the Holder under the securities or Blue Sky laws of such jurisdictions within the United States
as any Holder reasonably requests in writing, to keep each registration or qualification (or exemption therefrom) effective during the
Effectiveness Period and to do any and all other acts or things reasonably necessary to enable the disposition in such jurisdictions of
the Registrable Securities covered by each Registration Statement, provided that the Company shall not be required to qualify generally
to do business in any jurisdiction where it is not then so qualified, subject the Company to any material tax in any such jurisdiction
where it is not then so subject or file a general consent to service of process in any such jurisdiction.

 

(i)             If
requested by a Holder, cooperate with such Holder to facilitate the timely preparation and delivery of certificates representing Registrable
Securities to be delivered to a transferee pursuant to a Registration Statement, which certificates shall be free, to the extent permitted
by the Purchase Agreement, of all restrictive legends, and to enable such Registrable Securities to be in such denominations and registered
in such names as any such Holder may request.

 

(j)         
    Upon the occurrence of any event contemplated by Section 4(d), as promptly as reasonably possible
under the circumstances taking into account the Company’s good faith assessment of any adverse consequences to the Company and
its shareholders of the premature disclosure of such event, prepare a supplement or amendment, including a post-effective amendment,
to a Registration Statement or a supplement to the related Prospectus or any document incorporated or deemed to be incorporated
therein by reference, and file any other required document so that, as thereafter delivered, neither a Registration Statement nor
such Prospectus will contain an untrue statement of a material fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. If the
Company notifies the Holders in accordance with clauses (iii) through (vi) of Section 4(d) above to suspend the
use of any Prospectus until the requisite changes to such Prospectus have been made, then the Holders shall suspend use of such
Prospectus. The Company will use its best efforts to ensure that the use of the Prospectus may be resumed as promptly as is
practicable. The Company shall be entitled to exercise its right under this Section 4(j) to suspend the availability of a
Registration Statement and Prospectus, subject to the payment of partial liquidated damages otherwise required pursuant to
Section 3(d), for a period not to exceed 60 calendar days (which need not be consecutive days) in any 12-month period.

 

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(k)            Otherwise
use commercially reasonable efforts to comply with all applicable rules and regulations of the Commission under the Securities Act
and the Exchange Act, including, without limitation, Rule 172 under the Securities Act, file any final Prospectus, including any
supplement or amendment thereof, with the Commission pursuant to Rule 424 under the Securities Act, promptly inform the Holders in
writing if, at any time during the Effectiveness Period, the Company does not satisfy the conditions specified in Rule 172 and, as
a result thereof, the Holders are required to deliver a Prospectus in connection with any disposition of Registrable Securities and take
such other actions as may be reasonably necessary to facilitate the registration of the Registrable Securities hereunder.

 

(l)          
    The Company may require each selling Holder to furnish to the Company a certified statement as to the number of
shares of Common Stock beneficially owned by such Holder and, if required by the Commission, the natural persons thereof that have
voting and dispositive control over the shares. During any periods that the Company is unable to meet its obligations hereunder with
respect to the registration of the Registrable Securities solely because any Holder fails to furnish such information within three
Trading Days of the Company’s request, any liquidated damages that are accruing at such time as to such Holder only shall be
tolled and any Event that may otherwise occur solely because of such delay shall be suspended as to such Holder only, until such
information is delivered to the Company.

 

5.            Registration
Expenses. All fees and expenses incident to the performance of or compliance with, this Agreement by the Company shall be borne by
the Company whether or not any Registrable Securities are sold pursuant to a Registration Statement. The fees and expenses referred to
in the foregoing sentence shall include, without limitation, (i) all registration and filing fees (including, without limitation,
fees and expenses of the Company’s counsel and independent registered public accountants) (A) with respect to filings made
with the Commission, (B) with respect to filings required to be made with any Trading Market on which the shares of Common Stock
are then listed for trading, and (C) in compliance with applicable state securities or Blue Sky laws reasonably agreed to by the
Company in writing (including, without limitation, fees and disbursements of counsel for the Company in connection with Blue Sky qualifications
or exemptions of the Registrable Securities), (ii) printing expenses (including, without limitation, expenses of printing certificates
for Registrable Securities), (iii) messenger, telephone and delivery expenses, (iv) fees and disbursements of counsel for the
Company, (v) Securities Act liability insurance, if the Company so desires such insurance, and (vi) fees and expenses of all
other Persons retained by the Company in connection with the consummation of the transactions contemplated by this Agreement. In addition,
the Company shall be responsible for all of its internal expenses incurred in connection with the consummation of the transactions contemplated
by this Agreement (including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting
duties), the expense of any annual audit and the fees and expenses incurred in connection with the listing of the Registrable Securities
on any securities exchange as required hereunder. In no event shall the Company be responsible for any broker or similar commissions of
any Holder or, except to the extent provided for in the Transaction Documents, any legal fees or other costs of the Holders.

 

    10

     

    

 

6.            Indemnification.

 

(a)            Indemnification
by the Company. The Company shall, notwithstanding any termination of this Agreement, indemnify and hold harmless each Holder, the
officers, directors, members, partners, agents, brokers (including brokers who offer and sell Registrable Securities as principal as a
result of a pledge or any failure to perform under a margin call), investment advisors and employees (and any other Persons with a functionally
equivalent role of a Person holding such titles, notwithstanding a lack of such title or any other title) of each of them, each Person
who controls any such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and
the officers, directors, members, shareholders, partners, agents and employees (and any other Persons with a functionally equivalent role
of a Person holding such titles, notwithstanding a lack of such title or any other title) of each such controlling Person, to the fullest
extent permitted by applicable law, from and against any and all losses, claims, damages, liabilities, costs (including, without limitation,
reasonable attorneys’ fees) and expenses (collectively, “Losses”), as incurred, arising out of or relating to
(1) any untrue or alleged untrue statement of a material fact contained in a Registration Statement, any Prospectus or any form of
prospectus or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or
alleged omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus
or supplement thereto, in light of the circumstances under which they were made) not misleading or (2) any violation or alleged violation
by the Company of the Securities Act, the Exchange Act or any state securities law, or any rule or regulation thereunder, in connection
with the performance of its obligations under this Agreement, except to the extent, but only to the extent, that (i) such untrue
statements or omissions are based solely upon information regarding such Holder furnished in writing to the Company by such Holder expressly
for use therein, or to the extent that such information relates to such Holder or such Holder’s proposed method of distribution
of Registrable Securities and was reviewed and expressly approved in writing by such Holder expressly for use in a Registration Statement,
such Prospectus or in any amendment or supplement thereto (it being understood that the Holder has approved Annex A hereto for this purpose)
or (ii) in the case of an occurrence of an event of the type specified in Section 3(d)(iii)-(vi), the use by such Holder of
an outdated, defective or otherwise unavailable Prospectus after the Company has notified such Holder in writing that the Prospectus is
outdated, defective or otherwise unavailable for use by such Holder and prior to the receipt by such Holder of the Advice contemplated
in Section 6(c). The Company shall notify the Holders promptly of the institution, threat or assertion of any Proceeding arising
from or in connection with the transactions contemplated by this Agreement of which the Company is aware. Such indemnity shall remain
in full force and effect regardless of any investigation made by or on behalf of such indemnified person and shall survive the transfer
of any Registrable Securities by any of the Holders in accordance with Section 6(f).

 

(b)            Indemnification
by Holders. Each Holder shall, severally and not jointly, indemnify and hold harmless the Company, its directors, officers, agents
and employees, each Person who controls the Company (within the meaning of Section 15 of the Securities Act and Section 20 of
the Exchange Act), and the directors, officers, agents or employees of such controlling Persons, to the fullest extent permitted by applicable
law, from and against all Losses, as incurred, to the extent arising out of or based solely upon: any untrue or alleged untrue statement
of a material fact contained in any Registration Statement, any Prospectus, or in any amendment or supplement thereto or in any preliminary
prospectus, or arising out of or relating to any omission or alleged omission of a material fact required to be stated therein or necessary
to make the statements therein (in the case of any Prospectus or supplement thereto, in light of the circumstances under which they were
made) not misleading (i) to the extent, but only to the extent, that such untrue statement or omission is contained in any information
so furnished in writing by such Holder to the Company expressly for inclusion in such Registration Statement or such Prospectus or (ii) to
the extent, but only to the extent, that such information relates to such Holder’s information provided in the Selling Securityholder
Questionnaire or the proposed method of distribution of Registrable Securities and was reviewed and expressly approved in writing by such
Holder expressly for use in a Registration Statement (it being understood that the Holder has approved Annex A hereto for this purpose),
such Prospectus or in any amendment or supplement thereto. In no event shall the liability of a selling Holder be greater in amount than
the dollar amount of the proceeds (net of all expenses paid by such Holder in connection with any claim relating to this Section 6
and the amount of any damages such Holder has otherwise been required to pay by reason of such untrue statement or omission) received
by such Holder upon the sale of the Registrable Securities included in the Registration Statement giving rise to such indemnification
obligation.

 

    11

     

    

 

(c)            Conduct
of Indemnification Proceedings. If any Proceeding shall be brought or asserted against any Person entitled to indemnity hereunder
(an “Indemnified Party”), such Indemnified Party shall promptly notify the Person from whom indemnity is sought (the
 “Indemnifying Party”) in writing, and the Indemnifying Party shall have the right to assume the defense thereof, including
the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of all fees and expenses incurred in connection
with defense thereof, provided that the failure of any Indemnified Party to give such notice shall not relieve the Indemnifying Party
of its obligations or liabilities pursuant to this Agreement, except (and only) to the extent that it shall be finally determined by a
court of competent jurisdiction (which determination is not subject to appeal or further review) that such failure shall have materially
and adversely prejudiced the Indemnifying Party.

 

An Indemnified Party
shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees and expenses
of such counsel shall be at the expense of such Indemnified Party or Parties unless: (1) the Indemnifying Party has agreed in writing
to pay such fees and expenses, (2) the Indemnifying Party shall have failed promptly to assume the defense of such Proceeding and
to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding, or (3) the named parties to any such
Proceeding (including any impleaded parties) include both such Indemnified Party and the Indemnifying Party, and counsel to the Indemnified
Party shall reasonably believe that a material conflict of interest is likely to exist if the same counsel were to represent such Indemnified
Party and the Indemnifying Party (in which case, if such Indemnified Party notifies the Indemnifying Party in writing that it elects to
employ separate counsel at the expense of the Indemnifying Party, the Indemnifying Party shall not have the right to assume the defense
thereof and the reasonable fees and expenses of no more than one separate counsel shall be at the expense of the Indemnifying Party).
The Indemnifying Party shall not be liable for any settlement of any such Proceeding effected without its written consent, which consent
shall not be unreasonably withheld or delayed. No Indemnifying Party shall, without the prior written consent of the Indemnified Party,
effect any settlement of any pending Proceeding in respect of which any Indemnified Party is a party, unless such settlement includes
an unconditional release of such Indemnified Party from all liability on claims that are the subject matter of such Proceeding.

 

Subject to the terms
of this Agreement, all reasonable fees and expenses of the Indemnified Party (including reasonable fees and expenses to the extent incurred
in connection with investigating or preparing to defend such Proceeding in a manner not inconsistent with this Section) shall be paid
to the Indemnified Party, as incurred, within ten Trading Days of written notice thereof to the Indemnifying Party, provided that the
Indemnified Party shall promptly reimburse the Indemnifying Party for that portion of such fees and expenses applicable to such actions
for which such Indemnified Party is finally determined by a court of competent jurisdiction (which determination is not subject to appeal
or further review) not to be entitled to indemnification hereunder.

 

    12

     

    

 

(d)            Contribution.
If the indemnification under Section 6(a) or 6(b) is unavailable to an Indemnified Party or insufficient to hold an Indemnified
Party harmless for any Losses, then each Indemnifying Party shall contribute to the amount paid or payable by such Indemnified Party,
in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party and Indemnified Party in connection with
the actions, statements or omissions that resulted in such Losses as well as any other relevant equitable considerations. The relative
fault of such Indemnifying Party and Indemnified Party shall be determined by reference to, among other things, whether any action in
question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission of a material fact, has
been taken or made by, or relates to information supplied by, such Indemnifying Party or Indemnified Party, and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent such action, statement or omission. The amount paid or
payable by a party as a result of any Losses shall be deemed to include, subject to the limitations set forth in this Agreement, any reasonable
attorneys’ or other fees or expenses incurred by such party in connection with any Proceeding to the extent such party would have
been indemnified for such fees or expenses if the indemnification provided for in this Section was available to such party in accordance
with its terms.

 

The parties hereto
agree that it would not be just and equitable if contribution pursuant to this Section 6(d) were determined by pro rata allocation
or by any other method of allocation that does not take into account the equitable considerations referred to in the immediately preceding
paragraph. In no event shall the contribution obligation of a Holder of Registrable Securities be greater in amount than the dollar amount
of the proceeds (net of all expenses paid by such Holder in connection with any claim relating to this Section 5 and the amount of
any damages such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged
omission) received by it upon the sale of the Registrable Securities giving rise to such contribution obligation.

 

The indemnity and
contribution agreements contained in this Section are in addition to any liability that the Indemnifying Parties may have to the
Indemnified Parties.

 

7.            Miscellaneous.

 

(a)            Remedies. In the event of a breach by the Company or by a Holder of any of
their respective obligations under this Agreement, each Holder or the Company, as the case may be, in addition to being entitled to
exercise all rights granted by law and under this Agreement, including recovery of damages, shall be entitled to specific
performance of its rights under this Agreement. Each of the Company and each Holder agrees that monetary damages would not provide
adequate compensation for any losses incurred by reason of a breach by it of any of the provisions of this Agreement and hereby
further agrees that, in the event of any action for specific performance in respect of such breach, it shall not assert or shall
waive the defense that a remedy at law would be adequate.

 

(b)            Discontinued
Disposition. By its acquisition of Registrable Securities, each Holder agrees that, upon receipt of a notice from the Company of the
occurrence of any event of the kind described in Section 4(d)(iii) through (vi), such Holder will forthwith discontinue disposition
of such Registrable Securities under a Registration Statement until it is advised in writing (the “Advice”) by the
Company that the use of the applicable Prospectus (as it may have been supplemented or amended) may be resumed. The Company will use its
best efforts to ensure that the use of the Prospectus may be resumed as promptly as is practicable. The Company agrees and acknowledges
that any periods during which the Holder is required to discontinue the disposition of the Registrable Securities hereunder shall be subject
to the provisions of Section 3(d).

 

    13

     

    

 

(c)            Amendments
and Waivers. The provisions of this Agreement, including the provisions of this sentence, may not be amended, modified or supplemented,
and waivers or consents to departures from the provisions hereof may not be given, unless the same shall be in writing and signed by the
Company and the Holders of 50.1% or more of the then outstanding Registrable Securities (for purposes of clarification, this includes
any Registrable Securities issuable upon exercise or conversion of any Security), including the Lead Investor, provided that, if any amendment,
modification or waiver disproportionately and adversely impacts a Holder (or group of Holders), the consent of such disproportionately
impacted Holder (or group of Holders) shall be required. If a Registration Statement does not register all of the Registrable Securities
pursuant to a waiver or amendment done in compliance with the previous sentence, then the number of Registrable Securities to be registered
for each Holder shall be reduced pro rata among all Holders and each Holder shall have the right to designate which of its Registrable
Securities shall be omitted from such Registration Statement. Notwithstanding the foregoing, a waiver or consent to depart from the provisions
hereof with respect to a matter that relates exclusively to the rights of a Holder or some Holders and that does not directly or indirectly
affect the rights of other Holders may be given only by such Holder or Holders of all of the Registrable Securities to which such waiver
or consent relates; provided, however, that the provisions of this sentence may not be amended, modified, or supplemented
except in accordance with the provisions of the first sentence of this Section 6(d). No consideration shall be offered or paid to
any Person to amend or consent to a waiver or modification of any provision of this Agreement unless the same consideration also is offered
to all of the parties to this Agreement.

 

(d)            Notices.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be delivered as set forth
in the Purchase Agreement.

 

(e)            Successors
and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of each of the
parties and shall inure to the benefit of each Holder. The Company may not assign (except by merger) its rights or obligations hereunder
without the prior written consent of all of the Holders of the then outstanding Registrable Securities. Each Holder may assign their respective
rights hereunder in the manner and to the Persons as permitted under Section 5.06 of the Purchase Agreement.

 

(f)            No
Inconsistent Agreements. Neither the Company nor any of its Subsidiaries has entered, as of the date hereof, nor shall the Company
or any of its Subsidiaries, on or after the date of this Agreement, enter into any agreement with respect to its securities, that would
have the effect of impairing the rights granted to the Holders in this Agreement or otherwise conflicts with the provisions hereof.

 

(g)            Execution
and Counterparts. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered
one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party,
it being understood that both parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission
or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party
executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature
page were an original thereof.

 

    14

     

    

 

(h)            Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be determined in
accordance with the provisions of the Purchase Agreement.

 

(i)              Cumulative
Remedies. The remedies provided herein are cumulative and not exclusive of any other remedies provided by law.

 

(j)             Severability.
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal,
void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force
and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially reasonable efforts
to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision,
covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining
terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

 

(k)            Headings.
The headings in this Agreement are for convenience only, do not constitute a part of the Agreement and shall not be deemed to limit or
affect any of the provisions hereof.

 

(l)        
     Independent Nature of Holders’ Obligations and Rights. The obligations of each
Holder hereunder are several and not joint with the obligations of any other Holder hereunder, and no Holder shall be responsible in
any way for the performance of the obligations of any other Holder hereunder. Nothing contained herein or in any other agreement or
document delivered at any closing, and no action taken by any Holder pursuant hereto or thereto, shall be deemed to constitute the
Holders as a partnership, an association, a joint venture or any other kind of group or entity, or create a presumption that the
Holders are in any way acting in concert or as a group or entity with respect to such obligations or the transactions contemplated
by this Agreement or any other matters, and the Company acknowledges that the Holders are not acting in concert or as a group, and
the Company shall not assert any such claim, with respect to such obligations or transactions. Each Holder shall be entitled to
protect and enforce its rights, including without limitation the rights arising out of this Agreement, and it shall not be necessary
for any other Holder to be joined as an additional party in any proceeding for such purpose. The use of a single agreement with
respect to the obligations of the Company contained was solely in the control of the Company, not the action or decision of any
Holder, and was done solely for the convenience of the Company and not because it was required or requested to do so by any Holder.
It is expressly understood and agreed that each provision contained in this Agreement is between the Company and a Holder, solely,
and not between the Company and the Holders collectively and not between and among Holders.

 

********************

 

(Signature Pages Follow)

 

    15

     

    

 

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

 

	 	DIGITAL BRANDS GROUP, INC.
	 	
     
	 
	 	By:	/s/ John Hilburn Davis IV
	 	Name:	 John Hilburn Davis IV
	 	Title:	 Chief Executive Officer

 

[SIGNATURE PAGE OF HOLDERS FOLLOWS]

 

    16

     

    

 

[SIGNATURE
PAGE OF HOLDERS]

 

Name of Holder: Target Capital 9 LLC

 

Signature
of Authorized Signatory of Holder: /s/ Dmitriy Shapiro

 

Name of Authorized Signatory: Dmitriy Shapiro

 

Title of Authorized Signatory: Managing Partner

 

[SIGNATURE PAGES CONTINUE]

 

    17

     

    

 

Name of Holder: Dragon Dynamic Catalytic Bdg Sac
Fd

 

Signature
of Authorized Signatory of Holder: /s/ Gary Carr

 

Name of Authorized Signatory: Gary Carr

 

Title of Authorized Signatory: Director

 

[SIGNATURE PAGES CONTINUE]

 

    18

     

    

 

Name of Holder: 622 Capital LLC

 

Signature
of Authorized Signatory of Holder: /s/ Gary Clyburn, Jr.

 

Name of Authorized Signatory: Gary Clyburn, Jr.

 

Title of Authorized Signatory: Managing Member

 

[SIGNATURE PAGES CONTINUE]

 

    19

     

    

 

Name of Holder: 108 Sussex, LLC

 

Signature
of Authorized Signatory of Holder: /s/ Clark Reinhard

 

Name of Authorized Signatory: Clark Reinhard

 

Title of Authorized Signatory: Owner

 

[SIGNATURE PAGES CONTINUE]

 

    20

     

    

 

Annex A

 

Plan of Distribution

 

Each Selling Securityholder
(the “Selling Securityholder”) of the securities and any of their pledgees, assignees and successors-in-interest may,
from time to time, sell any or all of their securities covered hereby on the principal Trading Market or any other stock exchange, market
or trading facility on which the securities are traded or in private transactions. These sales may be at fixed or negotiated prices. A
Selling Securityholder may use any one or more of the following methods when selling securities:

 

	 	●	ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;
	 	 	 
	 	●	block trades in which the broker-dealer will attempt to sell the securities 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;
	 	 	 
	 	●	settlement of short sales;
	 	 	 
	 	●	in transactions through broker-dealers that agree with the Selling Securityholders to sell a specified number of such securities at a stipulated price per security;
	 	 	 
	 	●	through the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise;
	 	 	 
	 	●	a combination of any such methods of sale; or
	 	 	 
	 	●	any other method permitted pursuant to applicable law.

 

The Selling Securityholders
may also sell securities under Rule 144 or any other exemption from registration under the Securities Act of 1933, as amended (the
 “Securities Act”), if available, rather than under this prospectus.

 

Broker-dealers engaged by
the Selling Securityholders may arrange for other brokers-dealers to participate in sales. Broker-dealers may receive commissions or discounts
from the Selling Securityholders (or, if any broker-dealer acts as agent for the purchaser of securities, from the purchaser) in amounts
to be negotiated, but, except as set forth in a supplement to this Prospectus, in the case of an agency transaction not in excess of a
customary brokerage commission in compliance with FINRA Rule 2121; and in the case of a principal transaction a markup or markdown
in compliance with FINRA Rule 2121.

 

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

 

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The Selling Securityholders
and any broker-dealers or agents that are involved in selling the securities may be deemed to be “underwriters” within the
meaning of the Securities Act in connection with such sales. In such event, any commissions received by such broker-dealers or agents
and any profit on the resale of the securities purchased by them may be deemed to be underwriting commissions or discounts under the Securities
Act. Each Selling Securityholders has informed the Company that it does not have any written or oral agreement or understanding, directly
or indirectly, with any person to distribute the securities.

 

The Company is required to
pay certain fees and expenses incurred by the Company incident to the registration of the securities. The Company has agreed to indemnify
the Selling Securityholders against certain losses, claims, damages and liabilities, including liabilities under the Securities Act.

 

We agreed to keep this prospectus
effective until the earlier of (i) the date on which the securities may be resold by the Selling Securityholders without registration
and without regard to any volume or manner-of-sale limitations by reason of Rule 144, without the requirement for the Company to
be in compliance with the current public information under Rule 144 under the Securities Act or any other rule of similar effect
or (ii) all of the securities have been sold pursuant to this prospectus or Rule 144 under the Securities Act or any other rule of
similar effect. The resale securities will be sold only through registered or licensed brokers or dealers if required under applicable
state securities laws. In addition, in certain states, the resale securities covered hereby may not be sold unless they have been registered
or qualified for sale in the applicable state or an exemption from the registration or qualification requirement is available and is complied
with.

 

Under applicable rules and
regulations under the Exchange Act, any person engaged in the distribution of the resale securities may not simultaneously engage in market
making activities with respect to the shares of Common Stock for the applicable restricted period, as defined in Regulation M, prior to
the commencement of the distribution. In addition, the Selling Securityholders will be subject to applicable provisions of the Exchange
Act and the rules and regulations thereunder, including Regulation M, which may limit the timing of purchases and sales of the shares
of Common Stock by the Selling Securityholders or any other person. We will make copies of this prospectus available to the Selling Securityholders
and have informed them of the need to deliver a copy of this prospectus to each purchaser at or prior to the time of the sale (including
by compliance with Rule 172 under the Securities Act).

 

SELLING SECURITYHOLDERS

 

The shares of Common Stock
being offered by the Selling Securityholders are those previously issued to the Selling Securityholders, and those issuable to the Selling
Securityholders, upon exercise of the warrants. For additional information regarding the issuances of those shares of Common Stock and
warrants, see “Private Placement of Common Stock and Warrants” above. We are registering the shares of Common Stock in order
to permit the Selling Securityholders to offer the shares for resale from time to time. Except for the ownership of the shares of Common
Stock and the Warrants, the Selling Securityholders have not had any material relationship with us within the past three years.

 

The table below lists the
Selling Securityholders and other information regarding the beneficial ownership of the shares of Common Stock by each of the Selling
Securityholders. The second column lists the number of shares of Common Stock beneficially owned by each Selling Securityholder, based
on its ownership of the shares of Common Stock and warrants, as of ________, 2022, assuming exercise of the warrants held by the Selling
Securityholders on that date, without regard to any limitations on exercises.

 

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The third column lists the
shares of Common Stock being offered by this prospectus by the Selling Securityholders.

 

In accordance with the terms
of a registration rights agreement with the Selling Securityholders, this prospectus generally covers the resale of the sum of (i) the
number of shares of Common Stock issued to the Selling Securityholders in the “Private Placement of Common Stock and Warrants”
described above and (ii) the maximum number of shares of Common Stock issuable upon exercise of the related warrants, determined
as if the outstanding warrants were exercised in full as of the trading day immediately preceding the date this registration statement
was initially filed with the SEC, each as of the trading day immediately preceding the applicable date of determination and all subject
to adjustment as provided in the registration right agreement, without regard to any limitations on the exercise of the warrants. The
fourth column assumes the sale of all of the shares offered by the Selling Securityholders pursuant to this prospectus.

 

Under the terms of the warrants,
a Selling Securityholder may not exercise warrants to the extent such exercise would cause such Selling Securityholder, together with
its affiliates and attribution parties, to beneficially own a number of shares of Common Stock which would exceed 4.99% or 9.99%, as applicable,
of our then outstanding shares of Common Stock following such exercise, excluding for purposes of such determination shares of Common
Stock issuable upon exercise of such warrants which have not been exercised. The number of shares in the second and fourth columns do
not reflect this limitation. The Selling Securityholders may sell all, some or none of their shares in this offering. See “Plan
of Distribution.”

 

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	Name of Selling Securityholder	 	Number of shares

 of Common Stock 

Owned Prior to 

Offering	 	Maximum Number

 of shares of

 Common Stock to

 be Sold Pursuant to

 this Prospectus	 	Number of shares

 of Common Stock

 Owned After 

Offering
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

    24

     

    

 

Annex B

 

DIGITAL
BRANDS GROUP INC.

 

Selling Securityholder Notice and Questionnaire

 

The undersigned beneficial
owner of shares of Warrants and/or Common Stock (the “Registrable Securities”) of Digital 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 “Commission”) a registration statement (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 (the “Registration Rights Agreement”)
to which this document is annexed. A copy of the Registration Rights Agreement is available from the Company upon request at the address
set forth below. All capitalized terms not otherwise defined herein shall have the meanings 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. 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 a Selling Securityholder in the Registration Statement and the related prospectus.

 

NOTICE

 

The undersigned beneficial owner (the “Selling
Securityholder”) of Registrable Securities hereby elects to include the Registrable Securities owned by it in the Registration
Statement.

 

    25

     

    

 

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

 

QUESTIONNAIRE

 

	1.	Name.

 

	 	(a)	Full Legal Name of Selling Securityholder
	 	 	 
	 	 	 

 

	 	(b)	Full Legal Name of Registered Holder (if not the same as (a) above) through which Registrable Securities are held:
	 	 	 
	 	 	 

 

	 	(c)	Full Legal Name of Natural Control Person (which means a natural person who directly or indirectly alone or with others has power to vote or dispose of the securities covered by this Questionnaire):
	 	 	 
	 	 	 

 

		2.	Address for Notices to Selling Securityholder:

 

	 
	 
	 

 

	Telephone:	 

 

	Fax:	 

 

	Contact Person:	 

 

		3.	Broker-Dealer Status:

 

	 	(a)	Are you a broker-dealer?
	 	 	 
	Yes    ̈              No    ̈

 

	 	(b)	If “yes” to Section 3(a), did you receive your Registrable Securities as compensation for investment banking services to the Company?
	 	 	 
	Yes    ̈              No    ̈

 

	 	Note:	If “no” to Section 3(b), the Commission’s staff has indicated that you should be identified as an underwriter in the Registration Statement.
	 

 

	 	(c)	Are you an affiliate of a broker-dealer?
	 	 	 
	Yes    ̈              No    ̈

 

    26

     

    

 

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

 

	 	Note:	If “no” to Section 3(d), the Commission’s staff has indicated that you should be identified as an underwriter in the Registration Statement.

 

		4.	Beneficial Ownership of Securities of the Company Owned by the Selling Securityholder.

 

Except as set forth below in this
Item 4, the undersigned is not the beneficial or registered owner of any securities of the Company other than the securities issuable
pursuant to the Purchase Agreement.

 

	 	(a)	Type and Amount of other securities beneficially owned by the Selling Securityholder:
	 	 	 
	 	 	 

 

		5.	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 years.

 

State any exceptions here:

	 	 
	 	 

 

The undersigned agrees to promptly notify the
Company of any material 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; provided, that the undersigned shall not be required to notify the Company of
any changes to the number of securities held or owned by the undersigned or its affiliates.

 

By signing below, the undersigned consents to
the disclosure of the information contained herein in its answers to Items 1 through 5 and the inclusion of such information in the Registration
Statement and the related prospectus and any amendments or supplements thereto. 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
and any amendments or supplements thereto.

 

    27

     

    

 

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.

 

	Date:	 	 	Beneficial Owner:	 

 

	 	 	By:	 
	 	 	Name:	 
	 	 	Title:	 

 

PLEASE FAX A COPY (OR EMAIL A .PDF COPY) OF
THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE TO:

 

    28Exhibit 10.1 

 

SECURITIES PURCHASE AGREEMENT

 

This Securities Purchase Agreement
(this “Agreement”) is dated as of April 8, 2022 between Digital Brands Group, Inc., a Delaware corporation
(“Company”), and each purchaser identified on the Annex A hereto (each, including its successors and assigns,
an “Investor” and collectively, the “Investors”).

 

WHEREAS,
the Investors wish to purchase from the Company, and the Company wishes to sell and issue to the Investors, (i) 20% OID
promissory notes in the form set forth in Appendix B hereto (each, a “Note” and collectively, the “Notes”),
and (ii) warrants in the form set forth in Appendix C (each a “Warrant” and collectively, the “Warrants”),
subject to the terms and conditions therein contained;

 

WHEREAS,
Alexander Capital, L.P. (“Placement Agent”) is acting as the exclusive placement agent for the offering of Notes and
Warrants contemplated by this Agreement (“Offering”); and

 

WHEREAS,
the Company and Investors are executing and delivering this Agreement in reliance upon an exemption from securities registration requirements
of the Securities Act afforded by the provisions of Section 4(a)(2) and/or Rule 506(b) of Regulation D promulgated
thereunder by the U.S. Securities and Exchange Commission.

 

NOW,
THEREFORE, in consideration of the mutual covenants contained in this Agreement, and for other good and valuable consideration,
the receipt and adequacy of which are hereby acknowledged, the Company and each Investor agree as follows:

 

ARTICLE I. DEFINITIONS

 

Section 1.01. Definitions.
In addition to the terms defined elsewhere in this Agreement:

 

(a)            capitalized
terms that are not otherwise defined herein have the meanings given to such terms in the Notes (as defined herein), and

 

(b)            the
following terms have the meanings set forth in this Agreement:

 

“$” or “USD”
means United States Dollars.

 

“Action”
shall have the meaning ascribed to such term in Section 3.01(j).

 

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls intermediaries, controls or is controlled
by or is under common control with a Person, as such terms are used in and construed under Rule 405 under the Securities
Act.

 

“Board of Directors”
means the board of directors of the Company.

 

“Business Day”
means any day except Saturday, Sunday, any day which is a federal legal holiday in the United States or any day on which banking institutions
in the State of New York are authorized or required by law or other governmental action to close. If the last or appointed day for the
taking of any action or the expiration of any right required or granted herein shall not be a Business Day, then such action may be taken
or such right may be exercised on the next succeeding Business Day.

 

“Closing” means the
closing of the purchase and sale of the Securities pursuant to section 2.01.

 

“Closing Date”
means for any Securities, the Business Day when: (i) all of the Transaction Documents for such Securities have been executed and
delivered by the applicable parties thereto, and conditions precedent to the applicable Investors’ obligations to pay the Subscription
Amount; and (ii) the Company’s obligations to deliver such Securities have been satisfied or waived.

 

     

     

    

 

“Commission” means
the United States Securities and Exchange Commission.

 

“Common Stock”
means the common stock of the Company, par value $0.001 per share, and any other class of securities into which such securities may hereafter
be reclassified or changed.

 

“Confidential Investor
Questionnaire” means the Confidential Investor Questionnaire attached as Appendix A hereto.

 

“Conversion Shares”
means the shares of Common Stock issuable upon the default conversion set forth in the Notes.

 

“Exempt Issuance”
means the issuance of: (i) shares of Common Stock or options to employees, officers, or directors of the Company pursuant to any
stock or option plan duly adopted by a majority of the Board of Directors of the Company or a majority of the members of a committee of
directors established for such purpose.

 

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

 

“Existing Convertible
Instruments” means the convertible instruments existing prior to the Closing Date listed in Exhibit A.

 

“FINRA” means the
Financial Industry Regulatory Authority.

 

“GAAP”
shall have the meaning ascribed to such term in Section 3.01(h).

 

“Intellectual Property”
mean any and all patents, patent applications, trademarks, trademark applications, service marks, trade names, trade secrets, inventions,
copyrights, licenses and other intellectual property rights and similar rights as necessary or material for use in connection with its
business and which the failure to so have could reasonably be expected to have a Material Adverse Effect.

 

“Lead Investor” means
Target Capital 9 LLC.

 

“Legend Removal Date”
shall have the meaning ascribed to such term in section 4.01(c).

 

“Liens”
shall mean a lien, charge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

 

“Material Adverse
Effect” shall have the meaning ascribed to such term in Section  3.01(b).

 

“Material Permits”
shall have the meaning ascribed to such term in Section 3.01(n).

 

“Maximum Offering
Amount” means an aggregate Subscription Amount of up to USD Two Million U.S. Dollars ($2,000,000).

 

“Notes”
means the 20% OID promissory notes issued by the Company to the Investors hereunder, in the form of Appendix B attached hereto.

 

    2

     

    

 

“Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company,
joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

“Placement Agent”
has the meaning ascribed to such term in the recitals hereof.

 

“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation, an informal investigation or partial proceeding,
such as a deposition), whether commenced or threatened.

 

“Required Approvals”
shall have the meaning ascribed to such term in Section 3.01(e).

 

“Required Minimum”
means, as of any date, upon the request of the holder of the Note (“Holder”), the maximum aggregate number of shares
of Conversion Shares and Warrants Shares then issued or potentially issuable in the future pursuant to this Agreement or exercise of the
Warrants, ignoring any exercise limits set forth therein.

 

“Rule 144”
means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such rule may be amended from time to time,
or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such rule.

 

“Securities” means
the Notes and the Warrants.

 

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

 

“State Securities
Laws” means the securities (or “blue sky”) rules, regulations or other similar laws

 

of a particular state.

 

“Subscription Amount”
means, as to each Investor, the aggregate amount to be paid for the Securities purchased hereunder as specified below such Investor’s
name on Annex A of this Agreement and next to the heading “Aggregate Subscription Amount,” in United States dollars
and in immediately available funds.

 

“Subsidiary”
means any subsidiary of the Company as set forth on Schedule 3.01(a) hereto and shall, where applicable, include any direct
or indirect subsidiary of the Company formed or acquired after the date hereof.

 

“Termination Date”
means a date determined by the Company on which the offering of the Securities shall terminate.

 

“Trading Day”
means a day on which the principal Trading Market is open for trading.

 

“Trading Market”
means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question: the
NYSE, the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, or the Nasdaq Global Select Market (or any successors to
any of the foregoing).

 

“Transaction Documents”
means this Agreement, the Notes, the Warrants, the Underlying Shares and all appendices, exhibits and schedules hereto and thereto and
any other documents or agreements executed in connection with the transactions contemplated hereunder.

 

    3

     

    

 

“Trigger Financing”
means any securities, capital raising, loan, investment or other transaction, or series of related transactions, whether publicly offered
or privately arranged, resulting in a debt and/or equity financing of the Company or any Subsidiary of $5,000,000 or more (whether or
not fully borrowed or funded).

 

“Underlying Securities”
means the Warrant Shares and the Conversion Shares.

 

“Warrants”
means the warrants issued by the Company to the Investors hereunder, in the form of Appendix C attached hereto.

 

“Warrant Coverage
Number” means, with respect to any Investor, the (A) product of (i) the “Original Principal Amount” of
the Notes purchased by such Investor hereunder, and (ii) 50% divided by (B) the “Exercise Price” then in
effect (and as defined) under the Warrants.

 

“Warrant Shares”
means the shares of Common Stock issuable upon the exercise of the Warrants.

 

ARTICLE II. PURCHASE AND SALE

 

Section 2.01         Closing.
On the Closing Date, upon the terms and subject to the conditions set forth herein, substantially concurrent with the execution and delivery
of this Agreement by the parties hereto, the Company agrees to sell, and the Investors, severally and not jointly, agree to purchase,
the Securities up to the Maximum Offering Amount. At the Closing, the Investors shall deliver, via wire transfer, immediately available
funds equal to the Investors’ aggregate Subscription Amounts to the Company and the Company shall deliver to each Investor its respective
Notes and Warrants. The Company and each Investor shall deliver the other items set forth in section 2.02 deliverable at the Closing.
Upon satisfaction of the conditions set forth in section 2.02 and section 2.03, the Closing shall occur at the offices of Placement Agent’s
counsel, or such other location as the parties shall mutually agree or may be closed remotely by electronic delivery of documents. The
Company may conduct multiple closings for the sale of the Securities until it has received the Maximum Offering Amount. The Closing Date
for any Securities shall be the date indicated on the applicable Investor signature pages attached hereto and the final Closing Date
shall be no later than the Termination Date.

 

Section 2.02         Closing
Deliverables.

 

(a)            On
or prior to the Closing Date, the Company shall deliver or cause to be delivered to Placement Agent the following:

 

		(i)	this Agreement executed by the Company;

 

		(ii)	a Note, registered in the name of such Investor, with an original principal amount equal to the product:
(A) such Investor’s Subscription Amount and (B) 125%;

 

		(iii)	a Warrant, registered in the name of such Investor, for the purchase of such Investor’s Warrant
Coverage Number of shares of Common Stock;

 

		(iv)	the Registration Rights Agreement executed by the Company; and

 

		(v)	an officer’s certificate of the Company certifying the Company’s: (A) certified charter
(or similar formation document); (B) good standing certificate in its state of incorporation (or formation); (C) bylaws (or
similar governing document); (D) resolutions of the Board of directors (or similar governing body) approving and authorizing the
execution, delivery and performance of the Transaction Documents and the transactions contemplated thereby.

 

    4

     

    

 

(b)            On
or prior to the Closing Date, each Investor shall deliver or cause to be delivered to the Company the following:

 

		(i)	this Agreement executed by such Investor;

 

		(ii)	such Investor’s Subscription Amount by wire transfer to counsel of the Placement Agent pursuant
to the wiring instructions set forth in section 2.03(c); and

 

		(iii)	a duly completed and signed Confidential Investor Questionnaire along with such other duly completed and
signed questionnaires as may be requested by the Placement Agent.

 

Section 2.03         Closing
Conditions.

 

(a)            The
obligations of the Company hereunder in connection with the Closing are subject to the following conditions being met:

 

		(i)	the accuracy in all material respects on the Closing Date of the representations and warranties of the
Investors contained herein;

 

		(ii)	all obligations, covenants and agreements of each Investor required to be performed at or prior to the
Closing Date shall have been performed; and

 

		(iii)	the delivery by each Investor of the items set forth in section 2.02(b) of this Agreement.

 

(b)            The
respective obligations of the Investors hereunder in connection with the Closing are subject to the following conditions being met:

 

		(i)	the accuracy in all material respects (or, to the extent representations or warranties are qualified by
materiality or Material Adverse Effect, in all respects) when made and on the Closing Date of the representations and warranties of the
Company contained herein (unless as of a specific date therein in which case they shall be accurate as of such date);

 

		(ii)	all obligations, covenants and agreements of the Company required to be performed at or prior to the Closing
Date shall have been performed;

 

		(iii)	the delivery by the Company of the items set forth in section 2.02(a) of

 

this Agreement;
and

 

		(iv)	there shall have been no Material Adverse Effect with respect to the Company since the date hereof.

 

    5

     

    

 

		(c)	The wiring instructions for counsel of the Placement Agent shall be as follows:

 

	Account Name:	Carmel, Milazzo &
Feil LLP
	Account Address:	55
West 39th Street, 18th Floor
	 	New York, NY 10018
	Bank Name:	Signature
Bank
	Account Number:	1502747874
	Routing Number:	026013576
	Swift Code:	SIGNUS33

 

ARTICLE III.         REPRESENTATIONS
AND WARRANTIES

 

Section 3.01         Representations
and Warranties of the Company. The Company hereby makes the following representations and warranties to each Investor as of the date
hereof:

 

(a)            Subsidiaries.
All of the direct and indirect Subsidiaries of the Company are set forth in its SEC filings and/or on Schedule 3.1(a). Except as
set forth in its SEC filings and/or on Schedule 3.1(a), the Company owns, directly or indirectly, all of the capital stock or other
equity interests of each Subsidiary free and clear of any Liens, and all of the issued and outstanding shares of capital stock
of each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar rights to subscribe for or
purchase securities.

 

(b)            Organization
and Qualification. Except as set forth in its SEC filings and/or on Schedule 3.1(b), the Company and each of the Subsidiaries
is an entity duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its
incorporation or organization, with the requisite power and authority to own and use its properties and assets and to carry on its business
as currently conducted. Neither the Company nor any Subsidiary is in violation nor default of any of the provisions of its respective
formation document, bylaws or other organizational or charter documents. Each of the Company and the Subsidiaries is duly qualified to
conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business
conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing,
as the case may be, could not have or reasonably be expected to result in: (i) a Material Adverse Effect on the legality, validity
or enforceability of any Transaction Document, (ii)a material adverse effect on the results of operations, assets, business, or financial
condition of the Company and the Subsidiaries, taken as a whole, or (ii) a material adverse effect on the Company’s ability
to perform in any material respect on a timely basis its obligations under any Transaction Document (any of (i) or (ii), a “Material
Adverse Effect”; provided, however, that “Material Adverse Effect” shall not include any event, occurrence, fact,
condition or change, directly or indirectly, arising out of or attributable to: (A) general economic or political conditions, (B) conditions
generally affecting the industry in which the Company operates, (C) any changes in financial or securities markets in general, (D) acts
of war (whether or not declared), armed hostilities or terrorism, or the escalation or worsening thereof, (E) any pandemic, epidemics
or human health crises (including COVID-19), (F) any changes in applicable laws or accounting rules (including GAAP), (G) the
announcement, pendency or completion of the transactions contemplated by this Agreement, or (H) any action required or permitted
by this Agreement or any action taken (or omitted to be taken) with the written consent of or at the written request of the Purchaser)
and no Proceeding has been instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail
such power and authority or qualification.

 

    6

     

    

  

(c)            Authorization;
Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated
by this Agreement and each of the other Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The
execution and delivery of this Agreement and each of the other Transaction Documents by the Company and the consummation by it of the
transactions contemplated hereby and thereby have been duly authorized by all necessary action on the part of the Company and no further
action is required by the Company, the Board of Directors or the Company’s shareholders in connection herewith or therewith other
than in connection with the Required Approvals. Subject to obtaining the Required Approvals, this Agreement and each other Transaction
Document to which it is a party has been (or upon delivery will have been) duly executed by the Company and, when delivered in accordance
with the terms hereof and thereof, will constitute the valid and binding obligation of the Company enforceable against the Company in
accordance with its terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization,
moratorium and other Laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by Laws
relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification
and contribution provisions may be limited by applicable law.

 

(d)            No
Conflicts. Except as set forth in its SEC filings and/or in Schedule 3.1(d), the execution, delivery and performance by the
Company of this Agreement and the other Transaction Documents to which it is a party, the issuance and sale of the Securities and the
consummation by it of the transactions contemplated hereby and thereby do not and will not, subject to the Required Approvals,
(i) conflict with or violate any provision of the Company’s or any Subsidiary’s formation documents, bylaws or other
organizational or charter documents, (ii) constitute a default (or an event that with notice or lapse of time or both would become
a default) under, result in the creation of any Lien upon any of the properties or assets of the Company or any Subsidiary, or give to
others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement,
credit facility, debt or other instrument (evidencing a Company or Subsidiary debt or otherwise) or other understanding to which the Company
or any Subsidiary is a party or by which any property or asset of the Company or any Subsidiary is bound or affected, or (iii) conflict
with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental
authority to which the Company or a Subsidiary is subject (including federal and state securities Laws and regulations), or by which any
property or asset of the Company or a Subsidiary is bound or affected; except in the case of each of clauses (ii) and (iii), such
as could not have or reasonably be expected to result in a Material Adverse Effect.

 

(e)            Filings,
Consents and Approvals. Except as set forth in its SEC filings and/or on Schedule 3.1(e), the Company is not required to obtain
any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal,
state, local or other governmental authority or other Person in connection with the execution, delivery and performance by the Company
of the Transaction Documents, other than: (i) the filings required pursuant to Section 4.4 of this Agreement, (ii) application(s) to
each applicable Trading Market for the listing of the Shares for trading thereon in the time and manner required thereby, and (iii) such
filings as are required to be made under applicable state or federal securities Laws (collectively, the “Required Approvals”).

 

(f)            Issuance
of the Securities. The Note and Shares are duly authorized and, when issued and paid for in accordance with the applicable Transaction
Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company. The Shares,
when issued upon conversion of the Note, will be validly issued, fully paid and nonassessable, free and clear of all Liens imposed
by the Company. The Company shall reserve from its duly authorized capital stock a number of shares of Common Stock issuable pursuant
to the Note equal to the amount set forth in Section 4.9.

 

    7

     

    

 

(g)            Capitalization.
The capitalization of the Company is as set forth in its SEC filings and/or on Schedule 3.1(g). The Company has not issued any
capital stock since its most recently filed periodic report under the Exchange Act, other than as set forth in its SEC filings and/or
on Schedule 3.1(g), pursuant to the exercise of employee stock awards under the Company’s equity incentive plans, the issuance
of shares of Common Stock to employees pursuant to the Company’s employee stock purchase plans, the issuance of shares of Common
Stock or Common Stock Equivalents pursuant to agreements outstanding as of the date of the most recently filed periodic report under the
Exchange Act and pursuant to the conversion and/or exercise of Common Stock Equivalents outstanding as of the date of the most recently
filed periodic report under the Exchange Act. No Person has any right of first refusal, preemptive right, right of participation, or any
similar right to participate in the transactions contemplated by the Transaction Documents. Except as set forth in its SEC filings and/or
on Schedule 3.1(g), there are no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any character
whatsoever relating to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any Person
any right to subscribe for or acquire, any shares of Common Stock or the capital stock of any Subsidiary, or contracts, commitments, understandings
or arrangements by which the Company or any Subsidiary is or may become bound to issue additional shares of Common Stock or Common Stock
Equivalents or capital stock of any Subsidiary. The issuance and sale of the Securities will not obligate the Company or any Subsidiary
to issue shares of Common Stock or other securities to any Person (other than the Purchaser) and will not result in a right of any holder
of Company Securities to adjust the exercise, conversion, exchange or reset price under any of such securities. There are no outstanding
securities or instruments of the Company or any Subsidiary that contain any redemption or similar provisions, and there are no contracts,
commitments, understandings or arrangements by which the Company or any Subsidiary is or may become bound to redeem a security of the
Company or such Subsidiary. The Company does not have any stock appreciation rights or “phantom stock” plans or agreements
or any similar plan or agreement. All of the outstanding shares of capital stock of the Company are duly authorized, validly issued, fully
paid and nonassessable, have been issued in compliance with all federal and state securities Laws, and none of such outstanding shares
was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities. Other than the Required Approvals,
no further approval or authorization of any stockholder, the Board of Directors or others is required for the issuance and sale of the
Securities. There are no shareholders agreements, voting agreements or other similar agreements with respect to the Company’s capital
stock to which the Company is a party or, to the knowledge of the Company, between or among any of the Company’s shareholders.

 

(h)            SEC
Reports; Financial Statements. To the Company’s knowledge, since May 17, 2021 the Company has filed all reports,
schedules, forms, statements and other documents required to be filed by the Company under the Securities Act and the Exchange Act, including
pursuant to Section 13(a) or 15(d) thereof, (the foregoing materials, including the exhibits thereto and documents incorporated
by reference therein, being collectively referred to herein as the “SEC Reports”). As of their respective dates, the Company
believes that the SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange Act, as applicable,
and that none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required
to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made,
not misleading. The financial statements of the Company included in the SEC Reports comply in all material respects with applicable accounting
requirements and the rules and regulations of the SEC with respect thereto as in effect at the time of filing. Such financial statements
have been prepared in accordance with United States generally accepted accounting principles applied on a consistent basis during the
periods involved (“GAAP”), except as may be otherwise specified in such financial statements or the notes thereto and except
that unaudited financial statements may not contain all footnotes required by GAAP, and fairly present in all material respects the financial
position of the Company and its consolidated Subsidiaries as of and for the dates thereof and the results of operations and cash flows
for the periods then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments.

 

    8

     

    

 

(i)            Material
Changes; Undisclosed Events, Liabilities or Developments. Other than as set forth in its SEC filings and/or on Schedule
3.1(i) since the date of the latest audited financial statements included within the SEC Reports, except as specifically disclosed
in a subsequent SEC Report filed prior to the date hereof, to the best of the Company’s knowledge (i) there has been no event,
occurrence or development that has had or that could reasonably be expected to result in a Material Adverse Effect, (ii) the Company
has not incurred any liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary
course of business consistent with past practice, and (B) liabilities not required to be reflected in the Company’s financial
statements pursuant to GAAP or disclosed in filings made with the SEC, (iii) the Company has not altered its method of accounting,
(iv) the Company has not declared or made any dividend or distribution of cash or other property to its shareholders or purchased,
redeemed or made any agreements to purchase or redeem any shares of its capital stock and (v) the Company has not issued any equity
securities to any officer, director or Affiliate, except pursuant to existing Company equity incentive plans. The Company does not have
pending before the SEC any request for confidential treatment of information. To the knowledge of the Company, except for the issuance
of the Securities contemplated by this Agreement or as set forth in its SEC filings and/or on Schedule 3.1(i), no event, liability,
fact, circumstance, occurrence or development has occurred or exists or is reasonably expected to occur or exist with respect to the Company
or its Subsidiaries or their respective businesses, prospects, properties, operations, assets or financial condition that would be required
to be disclosed by the Company under applicable securities Laws at the time this representation is made or deemed made that has not been
publicly disclosed at least one Trading Day prior to the date that this representation is made.

 

(j)            Litigation.
Except as set forth in its SEC filings and/or in Schedule 3.1(j), there is no action, suit, notice of violation, Proceeding or
investigation, inquiry or other similar Proceeding of any federal or state governmental authority pending or, to the knowledge of the
Company, threatened against or affecting the Company, any Subsidiary or any of their respective properties before or by any court, arbitrator,
governmental or administrative agency or regulatory authority (federal, state, county, local or foreign) (collectively, an “Action”)
which (i) adversely affects or challenges the legality, validity or enforceability of any of the Transaction Documents or the issuance
of the Securities or (ii) could, if there were an unfavorable decision, have or reasonably be expected to result in a Material Adverse
Effect. Neither the Company nor any Subsidiary, nor to the Company’s knowledge any director or officer thereof, is or has been the
subject of any Action involving the Company and a claim of violation of or liability under federal or state securities Laws or a claim
of breach of fiduciary duty. There has not been, and to the knowledge of the Company, there is not pending or contemplated, any investigation
by the SEC involving the Company or any current or former director or officer of the Company. To the knowledge of the Company, the SEC
has not issued any stop order or other order suspending the effectiveness of any registration statement filed by the Company or any Subsidiary
under the Exchange Act or the Securities Act.

 

(k)            Labor
Relations. No labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees of the Company,
which could reasonably be expected to result in a Material Adverse Effect. None of the Company’s or its Subsidiaries’ employees
is a member of a union that relates to such employee’s relationship with the Company or such Subsidiary, and neither the
Company nor any of its Subsidiaries is a party to a collective bargaining agreement, and the Company and its Subsidiaries believe that
their relationships with their employees are good. To the knowledge of the Company, no effort is underway to unionize or organize the
employees of the Company or any Subsidiary. To the knowledge of the Company, no executive officer of the Company or any Subsidiary, is
in violation of any material term of any employment contract, confidentiality, disclosure or proprietary information agreement or non-competition
agreement, or any other contract or agreement or any restrictive covenant in favor of any third party, and the continued employment of
each such executive officer does not subject the Company or any of its Subsidiaries to any liability with respect to any of the foregoing
matters. The Company and its Subsidiaries are in compliance with all U.S. federal, state, local and foreign Laws and regulations relating
to employment and employment practices, terms and conditions of employment and wages and hours, except where the failure to be in compliance
could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. Except as set forth in its SEC
filings and/or on Schedule 3.1(k), there is no workmen’s compensation liability matter, employment-related charge, complaint,
grievance, investigation, inquiry or obligation of any kind pending, or to the Company’s knowledge, threatened, relating to an alleged
violation or breach by the Company or its Subsidiaries of any law, regulation or contract that could, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

 

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(l)            Compliance.
Except as set forth in its SEC filings and/or on Schedule 3.1(l), neither the Company nor any Subsidiary: (i) is in default
under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would
result in a default by the Company or any Subsidiary under), nor has the Company or any Subsidiary received notice of a claim that it
is in default under or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which
it is a party or by which it or any of its properties is bound (whether or not such default or violation has been waived), (ii) is
in violation of any judgment, decree or order of any court, arbitrator or other governmental authority or (iii) is or has been in
violation of any statute, rule, ordinance or regulation of any governmental authority, including without limitation all foreign, federal,
state and local Laws and regulations relating to taxes, securities, environmental protection, occupational health and safety, product
quality and safety, and employment and labor matters, except in each case as could not have or reasonably be expected to result in a Material
Adverse Effect.

 

(m)           Environmental
Laws.         The Company and its Subsidiaries (i) are in compliance with all federal, state, local
and foreign Laws relating to pollution or protection of human health or the environment (including ambient air, surface water, groundwater,
land surface or subsurface strata), including Laws relating to emissions, discharges, releases or threatened releases of chemicals, pollutants,
contaminants, or toxic or hazardous substances or wastes (collectively, “Hazardous Materials”) into the environment, or otherwise
relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials,
as well as all authorizations, codes, decrees, demands, or demand letters, injunctions, judgments, licenses, notices or notice letters,
orders, permits, plans or regulations, issued, entered, promulgated or approved thereunder (“Environmental Laws”); (ii) have
received all permits licenses or other approvals required of them under applicable Environmental Laws to conduct their respective businesses;
and (iii) are in compliance with all terms and conditions of any such permit, license or approval where in each clause (i), (ii) and
(iii), the failure to so comply could be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect.

 

(n)            Regulatory
Permits. The Company and the Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal,
state, local or foreign regulatory authorities necessary to conduct their respective businesses as described in the SEC Reports, except
where the failure to possess such permits could not reasonably be expected to result in a Material Adverse Effect (“Material
Permits”), and neither the Company nor any Subsidiary has received any written notice of Proceedings relating to the revocation
or modification of any Material Permit.

 

(o)            Title
to Assets. Except as set forth in its SEC filings and/or on Schedule 3.1(o), the Company and the Subsidiaries have good and
marketable title in fee simple to all real property owned by them and good and marketable title in all personal property owned by them
that is material to the business of the Company and the Subsidiaries, in each case free and clear of all Liens, except for (i) Liens
as do not materially affect the value of such property and do not materially interfere with the use made and proposed to be made of such
property by the Company and the Subsidiaries, and (ii) Liens for the payment of federal, state or other taxes, for which appropriate
reserves have been made therefor in accordance with GAAP and, the payment of which is neither delinquent nor subject to penalties. To
the Company’s knowledge, any real property and facilities held under lease by the Company and the Subsidiaries are held by them
under valid, subsisting and enforceable leases with which the Company and the Subsidiaries are in material compliance.

 

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(p)            Intellectual
Property.

 

(i)            Except
as set forth in its SEC filings and/or in Schedule 3.1(p), the Company owns or possesses or has the right to use pursuant to a
valid and enforceable written license, sublicense, agreement, or permission all Intellectual Property necessary for the operation of the
business of the Company as presently conducted, except in each case as could not have or reasonably be expected to result in a Material
Adverse Effect.

 

(ii)            The
Company has no knowledge that the Intellectual Property interferes with, infringe upon, misappropriate, or otherwise come into conflict
with, any Intellectual Property rights of third parties, and the Company has no knowledge that facts exist which indicate a likelihood
of the foregoing. The Company has not received any charge, complaint, claim, demand, or notice alleging any such interference, infringement,
misappropriation, or conflict (including any claim that the Company must license or refrain from using any Intellectual Property rights
of any third party). To the knowledge of the Company, no third party has interfered with, infringed upon, misappropriated, or otherwise
come into conflict with, any Intellectual Property rights of the Company, except in each case as could not have or reasonably be expected
to result in a Material Adverse Effect.

 

(q)            Insurance.
The Company and the Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and
in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries are engaged.

 

(r)            Transactions
With Affiliates. Except as disclosed in its SEC filings, none of the current officers, directors or Affiliates of the Company or any
Subsidiary is presently a party to any transaction with the Company or any Subsidiary (other than for services as employees, officers
and directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing
for rental of real or personal property to or from, providing for the borrowing of money from or lending of money to or otherwise requiring
payments to or from any officer, director, Affiliate or such employee or, to the knowledge of the Company, any entity in which any officer,
director, or any such employee has a substantial interest or is an officer, director, trustee, stockholder, member or partner, in each
case in excess of $120,000 other than for (i) payment of salary or consulting fees for services rendered, (ii) reimbursement
for expenses incurred on behalf of the Company and (iii) other employee benefits, including stock award agreements under any equity
incentive plan of the Company.

 

(s)            Sarbanes-Oxley;
Internal Accounting Controls. Except as disclosed in its SEC filings and/or in Schedule 3.1(s), the Company and the Subsidiaries
are in compliance with any and all applicable requirements of the Sarbanes-Oxley Act of 2002 that are effective as of the date hereof,
and any and all applicable rules and regulations promulgated by the SEC thereunder that are effective as of the date hereof and as
of the Closing Date. The Company and the Subsidiaries maintain a system of internal accounting controls as set forth in the SEC
Reports. The Company’s certifying officers have evaluated the effectiveness of the disclosure controls and procedures of the Company
and the Subsidiaries as of the end of the period covered by the most recently filed periodic report under the Exchange Act (such date,
the “Evaluation Date”). The Company presented in its most recently filed periodic report under the Exchange Act the conclusions
of the certifying officers about the effectiveness of the disclosure controls and procedures based on their evaluations as of the Evaluation
Date. Since the Evaluation Date, there have been no changes in the internal control over financial reporting (as such term is defined
in the Exchange Act) of the Company and its Subsidiaries that have materially affected, or is reasonably likely to materially affect,
the internal control over financial reporting of the Company and its Subsidiaries.

 

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(t)            Certain
Fees. Other than as set forth in its SEC filings and/or on Schedule 3.1(t), no brokerage or finder’s fees or commissions
are or will be payable by the Company or any Subsidiary to any broker, financial advisor or consultant, finder, placement agent, investment
banker, bank or other Person with respect to the transactions contemplated by the Transaction Documents. The Purchaser shall have no obligation
with respect to any fees or with respect to any claims made by or on behalf of other Persons for fees of a type contemplated in this Section 3.1(t) that
may be due in connection with the transactions contemplated by the Transaction Documents.

 

(u)            Investment
Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Securities, will not be
or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as amended. The Company
shall conduct its business in a manner so that it will not become an “investment company” subject to registration under the
Investment Company Act of 1940, as amended.

 

(v)            Registration
Rights. Other than as set forth in its SEC filings and/or on Schedule 3.1(v), no Person has any right to cause the Company
or any Subsidiary to effect the registration under the Securities Act of any securities of the Company or any Subsidiary.

 

(w)            Listing
and Maintenance Requirements. The Company has not, in the 12 months preceding the date hereof, received notice from any Trading Market
on which the Common Stock is or has been listed or quoted to the effect that the Company is not in compliance with the listing or maintenance
requirements of such Trading Market. The Company is, and has no reason to believe that it will not in the foreseeable future continue
to be, in material compliance with all such listing and maintenance requirements. The Common Stock is currently eligible for electronic
transfer through the Depository Trust Company (“DTC”) or another established clearing corporation and the Company is current
in payment of the fees to the DTC (or such other established clearing corporation) in connection with such electronic transfer. The Company
is not subject to any “chill” issued by the DTC.

 

(x)            Application
of Takeover Protections. The Company and the Board of Directors have taken all necessary action, if any, in order to render inapplicable
any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or other
similar anti-takeover provision under the Company’s formation documents (or similar charter documents) or the Laws of its state
of incorporation that is or could become applicable to the Purchaser as a result of the Purchaser and the Company fulfilling their obligations
or exercising their rights under the Transaction Documents, including without limitation as a result of the Company’s issuance of
the Securities and the Purchaser’s ownership of the Securities.

 

(y)            Disclosure.
Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, the Company confirms
that neither it nor any other Person acting on its behalf has provided the Purchaser or its agents or counsel with any information that
it believes constitutes or might constitute material, non-public information which is not otherwise disclosed in the SEC Reports.
The Company understands and confirms that the Purchaser will rely on the foregoing representation in effecting transactions in securities
of the Company. The press releases disseminated by the Company since May 17, 2021 do not contain any untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of
the circumstances under which they were made and when made, not misleading. The Company acknowledges and agrees that no Purchaser makes
or has made any representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth
in Section 3.2 hereof.

 

(z)            No
Integrated Offering. Assuming the accuracy of the Purchaser’s representations and warranties set forth in Section 3.2,
neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made any offers
or sales of any security or solicited any offers to buy any security, under circumstances that would cause this offering of the Securities
to be integrated with prior offerings by the Company for purposes of any applicable shareholder approval provisions of any Trading Market
on which any of the securities of the Company are listed or designated.

 

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(aa)          Solvency.
The Company has not filed for reorganization or liquidation under the bankruptcy or reorganization Laws of any jurisdiction. Except as
set forth in its SEC filings and/or Schedule 3.1(aa) sets forth as of the time immediately following the Closing hereof all outstanding
Indebtedness of the Company or any Subsidiary. For the purposes of this Agreement, “Indebtedness” means (x) any liabilities
for borrowed money or amounts owed in excess of $50,000 (other than trade accounts payable incurred in the ordinary course of business),
(y) all guaranties, endorsements and other contingent obligations in respect of indebtedness of others, whether or not the same are
or should be reflected in the Company’s consolidated balance sheet (or the notes thereto), except guaranties by endorsement of negotiable
instruments for deposit or collection or similar transactions in the ordinary course of business; and (z) the present value of any
lease payments in excess of $50,000 due under leases required to be capitalized in accordance with GAAP. Except as set forth in its SEC
filings and/or on Schedule 3.1(aa) or as would not have a Material Adverse Effect, neither the Company nor any Subsidiary is in
default with respect to any Indebtedness.

 

(bb)    
      Tax Status. Except for matters disclosed in its SEC filings and/or matters that would not,
individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect, the Company and its
Subsidiaries each (i) has made or filed all United States federal, state and local income and all foreign income and franchise
tax returns, reports and declarations required by any jurisdiction to which it is subject, (ii) has paid all taxes and other
governmental assessments and charges that are material in amount, shown to be due on such returns, reports and declarations and
(iii) has set aside on its books provision reasonably adequate for the payment of all material taxes for periods subsequent to
the periods to which such returns, reports or declarations apply. There are no unpaid taxes in any material amount claimed to be due
by the taxing authority of any jurisdiction.

 

(cc)          Foreign
Corrupt Practices. Neither the Company nor any Subsidiary, nor to the knowledge of the Company, any agent or other Person acting
on behalf of the Company or any Subsidiary, has (i) directly or indirectly, used any funds for unlawful contributions, gifts, entertainment
or other unlawful expenses related to foreign or domestic political activity, (ii) made any unlawful payment to foreign or domestic
government officials or employees or to any foreign or domestic political parties or campaigns from corporate funds, (iii) failed
to disclose fully any contribution made by the Company or any Subsidiary (or made by any Person acting on its behalf of which the Company
is aware) which is in violation of Law, or (iv) violated any provision of FCPA.

 

(dd)         Accountants.
The Company’s accounting firm is set forth in the SEC Reports. To the knowledge and belief of the Company, such accounting firm
is a registered public accounting firm as required by the Exchange Act.

 

(ee)          Acknowledgment
Regarding each Purchaser’s Purchase of Securities. The Company acknowledges and agrees that each Purchaser is acting solely
in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated thereby.
The Company further acknowledges that no Purchaser is acting as a financial advisor or fiduciary of the Company (or in any similar capacity)
with respect to the Transaction Documents and the transactions contemplated thereby and any advice given by any Purchaser or any of its
representatives or agents in connection with the Transaction Documents and the transactions contemplated thereby is merely incidental
to the Purchaser’s purchase of the Securities. The Company further represents to the Purchaser that the Company’s decision
to enter into this Agreement and the other Transaction Documents has been based solely on the independent evaluation of the transactions
contemplated hereby by the Company and its representatives.

 

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(ff)           Acknowledgement
Regarding each Purchaser’s Trading Activity. Notwithstanding anything in this
Agreement or elsewhere to the contrary, it is understood and acknowledged by the Company that: (i) no Purchaser has been asked by
the Company to agree, nor has any Purchaser agreed, to desist from purchasing or selling, long and/or short, securities of the Company,
or “derivative” securities based on securities issued by the Company or to hold the Securities for any specified term; (ii) past
or future open market or other transactions by any Purchaser, specifically including, without limitation, Short Sales or “derivative”
transactions, before or after the Closing of this or future private placement transactions, may negatively impact the market price of
the Company’s publicly-traded securities; (iii) each Purchaser, and counter-parties in “derivative” transactions
to which any Purchaser is a party, directly or indirectly, presently may have a “short” position in the Common Stock, and
(iv) the Purchaser shall not be deemed to have any affiliation with or control over any arm’s length counter-party in any “derivative”
transaction. The Company further understands and acknowledges that (y) the Purchaser may engage in hedging activities at various
times during the period that the Securities are outstanding, and (z) such hedging activities (if any) could reduce the value of the
existing shareholders' equity interests in the Company at and after the time that the hedging activities are being conducted. The Company
acknowledges that such aforementioned hedging activities do not constitute a breach of any of the Transaction Documents.

 

(gg)         Regulation
M Compliance.  The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly or indirectly,
any action designed to cause or to result in the stabilization or manipulation of the price of the Common Stock to facilitate the sale
of the Securities, or (ii) paid or agreed to pay to any Person any compensation for soliciting another to purchase the Securities
or any other securities of the Company.

 

(hh)         Private
Placement. Assuming the accuracy of the Purchaser’s representations and warranties set forth in Section 3.2, no registration
under the Securities Act is required for the offer and sale of the Securities by the Company to the Purchaser as contemplated hereby.

 

(ii)            No
General Solicitation. Neither the Company nor, to the Company’s knowledge, any Person acting on behalf of the Company has offered
or sold any of the Securities by any form of general solicitation or general advertising. The Company has offered the Securities for sale
only to the Purchaser and certain other “accredited investors” within the meaning of Rule 501 under the Securities Act.

 

(jj)            No
Disqualification Events.  With respect to the Securities to be offered and sold hereunder in reliance on Rule 506(b) under
the Securities Act, none of the Company, any of its predecessors, any affiliated issuer, any director, executive officer, other officer
of the Company participating in the offering hereunder, any beneficial owner of 20% or more of the Company’s outstanding voting
equity securities, calculated on the basis of voting power, nor any promoter (as that term is defined in Rule 405 under the
Securities Act) connected with the Company in any capacity at the time of sale, nor any Person, including a placement agent, who will
receive a commission or fees for soliciting purchasers (each, an “Issuer Covered Person” and, together, “Issuer Covered
Persons”) is subject to any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i) to (viii) under
the Securities Act (a “Disqualification Event”), except for a Disqualification Event covered by Rule 506(d)(2) or
(d)(3). The Company has exercised reasonable care to determine whether any Issuer Covered Person is subject to a Disqualification Event.
The Company has complied, to the extent applicable, with its disclosure obligations under Rule 506(e), and has furnished to the Purchaser
a copy of any disclosures provided thereunder. Notwithstanding the above, the Company has specifically advised the Purchaser of certain
prior disciplinary actions related to an officer/director of the Company which would not be designated a Disqualification Event.

 

(kk)          Notice
of Disqualification Events. The Company will notify the Purchaser in writing, prior to the Closing Date of the Company becoming aware
of (i) any Disqualification Event relating to any Issuer Covered Person and (ii) any event that would, with the passage of time,
reasonably be expected to become a Disqualification Event relating to any Issuer Covered Person, in each case of which it is aware.

 

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(ll)            Office
of Foreign Assets Control. Neither the Company nor any Subsidiary nor, to the Company's knowledge, any director, officer, agent, employee
or Affiliate of the Company or any Subsidiary is currently subject to any U.S. sanctions administered by the Office of Foreign Assets
Control of the U.S. Treasury Department (“OFAC”).

 

(mm)        U.S.
Real Property Holding Corporation. The Company is not and has never been a U.S. real property holding corporation within the meaning
of Section 897 of the Internal Revenue Code of 1986, as amended, and the Company shall so certify upon any Purchaser’s request.

 

(nn)         Bank
Holding Company Act. Neither the Company nor any of its Subsidiaries or Affiliates is subject to the Bank Holding Company Act of 1956,
as amended (the “BHCA”) and to regulation by the Board of Governors of the Federal Reserve System (the “Federal Reserve”).
Neither the Company nor any of its Subsidiaries or Affiliates owns or controls, directly or indirectly, 5% or more of the outstanding
shares of any class of voting securities or twenty-five percent or more of the total equity of a bank or any entity that is subject to
the BHCA and to regulation by the Federal Reserve. Neither the Company nor any of its Subsidiaries or Affiliates exercises a controlling
influence over the management or policies of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve.

 

(oo)         Money
Laundering. The operations of the Company and its Subsidiaries are and have been conducted at all times in material compliance with
applicable financial record-keeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended,
applicable money laundering statutes and applicable rules and regulations thereunder (collectively, the “Money Laundering Laws”),
and no Action by or before any court or governmental agency, authority or body or any arbitrator involving the Company or any Subsidiary
with respect to the Money Laundering Laws is pending or, to the knowledge of the Company or any Subsidiary, threatened.

 

(pp)         The
Company acknowledges and agrees that the representations contained in Section 3.02 shall not modify, amend or affect such Investor’s
right to rely on the Company’s representations and warranties contained in this Agreement or any representations and warranties
contained in any other Transaction Document, or any other document or instrument executed and/or delivered in connection with this Agreement
or the consummation of the transaction contemplated hereby.

 

Section 3.02         Representations
and Warranties of the Investors.

 

Each Investor, for itself
and for no other Investor, hereby represents and warrants as of the date hereof and as of the Closing Date to the Company as follows (unless
as of a specific date therein, in which case they shall be accurate as of such date):

 

(a)           Authority;
Organization. Such Investor has full power and authority (and, if such Investor is an individual, the capacity) to enter into this
Agreement and to perform all obligations required to be performed by it hereunder. If an entity, Such Investor is an entity duly organized,
validly existing and in good standing under the laws of the jurisdiction of its organization with full right, corporate, limited liability
company or partnership power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents
and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of the Transaction Documents and performance
by such Investor of the transactions contemplated by the Transaction Documents have been duly authorized by all necessary corporate or
similar action on the part of such Investor. Each Transaction Document to which it is a party has been duly executed by such Investor,
and when delivered by such Investor in accordance with the terms hereof, will constitute the valid and legally binding obligation of such
Investor, enforceable against it in accordance with its terms, except: (i) as limited by general equitable principles and applicable
bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights
generally; (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies;
and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

 

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(b)           Own
Account. Such Investor understands that the Securities are and Underlying Securities will be ‘restricted securities’ and
have not been registered under the Securities Act or any applicable State Securities Law and is acquiring the Securities and any Underlying
Securities as principal for its own account and not with a view to or for distributing or reselling such Securities or any part thereof
in violation of the Securities Act or any applicable State Securities Law, has no present intention of distributing any of such Securities
or Underlying Securities in violation of the Securities Act or any applicable State Securities Law and has no direct or indirect arrangement
or understandings with any other persons to distribute or regarding the distribution the same (this representation and warranty not limiting
such Investor’s right to sell the Securities and Underlying Securities in compliance with applicable federal and State Securities
Laws) in violation of the Securities Act or any applicable State Securities Law. Such Investor is acquiring the Securities and any Underlying
Securities in the ordinary course of its investment business.

 

(c)           Non-Transferrable.
Such Investor agrees: (i) that the Investor will not sell, assign, pledge, give, transfer or otherwise dispose of the Securities
or Underlying Securities or any interest therein, or make any offer or attempt to do any of the foregoing, except pursuant to a registration
of the Securities under the Securities Act and all applicable State Securities Laws, or in a transaction which is exempt from the registration
provisions of the Securities Act and all applicable State Securities Laws; (ii) that the certificates representing the Securities
and Underlying Securities will bear a legend making reference to the foregoing restrictions; and (iii) that the Company and its Affiliates
shall not be required to give effect to any purported transfer of such Securities and Underlying Securities except upon compliance with
the foregoing restrictions.

 

(d)           Investor
Status. Such Investor is an “accredited investor” as defined in Rule 501(a) under the Securities Act. The undersigned
agrees to furnish any additional information requested by the Company or any of its Affiliates to assure compliance with applicable U.S.
federal and state securities laws in connection with the purchase and sale of the Securities. The undersigned has completed the Confidential
Investor Questionnaire contained in Appendix A and the information contained therein is complete and accurate as of the date thereof
and is hereby affirmed as of the Closing Date. Any information that has been furnished or that will be furnished by the undersigned to
evidence its status as an accredited investor is accurate and complete, and does not contain any misrepresentation or material omission.

 

(e)           Experience
of Such Investor. Such Investor, either alone or together with its representatives, has such knowledge, sophistication, and experience
in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Securities
and Underlying Securities, and has so evaluated the merits and risks of such investment. Such Investor is able to bear the economic risk
of an investment in the Securities and Underlying Securities and, at the present time, is able to afford a complete loss of such investment.

 

(f)            No
Trading Market. Such Investor acknowledges that there is currently no Trading Market for the Securities and that none is expected
to develop for the Securities and a Trading Market may not develop for the Underlying Securities.

 

(g)           General
Solicitation. Such Investor undersigned acknowledges that neither the Company nor any other person offered to sell the Securities
to it by means of any form of general solicitation or advertising, including but not limited to: (i) any advertisement, article,
notice or other communication published in any newspaper, magazine or similar media or broadcast over television or radio; or (ii) any
seminar or meeting whose attendees were invited by any general solicitation or general advertising.

 

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(h)           Confidentiality.
Other than to other Persons party to this Agreement and its advisors who have agreed to keep information confidential or have a fiduciary
obligation to keep such information confidential, such Investor has maintained the confidentiality of all disclosures made to it in connection
with the transaction (including the existence and terms of this transaction).

 

(i)            Foreign
Investor. If such Investor is not a United States person, such Investor represents that it has satisfied itself as to the full observance
of the laws of its jurisdiction in connection with any invitation to subscribe for the Securities and Underlying Securities or any use
of this Agreement, including: (i) the legal requirements within its jurisdiction for the purchase of the Securities and any Underlying
Securities; (ii) any foreign exchange restrictions applicable to such purchase; (iii) any governmental or other consents that
may need to be obtained; and (iv) the income tax and other tax consequences, if any, that may be relevant to the purchase, holding,
redemption, sale or transfer of the Securities or Underlying Securities. The Investor further represents that its payment for, and its
continued beneficial ownership of the Securities and any Underlying Securities, will not violate any applicable securities or other laws
of its jurisdiction.

 

(j)             Information
from Company. Such Investor and its purchaser representatives or investment managers, if any, have been afforded the opportunity to
obtain any information necessary to verify the accuracy of any representations or information presented by the Company in this Agreement
and have had all inquiries to the Company answered, and have been furnished all requested materials, relating to the Company and the Offering
and sale of the Securities and anything set forth in the Transaction Documents. Neither the Investor nor the Investor’s purchaser’s
representatives or investment managers, if any, have been furnished any offering literature by the Company or any of its Affiliates, associates
or agents other than the Transaction Documents, and the agreements referenced therein.

 

(k)           Speculative
Nature of Investment; Risk Factors. SUCH INVESTOR UNDERSTANDS THAT AN INVESTMENT IN THE SECURITIES AND UNDERLYING SECURITIES INVOLVES
A HIGH DEGREE OF RISK. Such Investor acknowledges that: (i) any projections, forecasts or estimates as may have been provided
to the Investor are purely speculative and cannot be relied upon to indicate actual results that may be obtained through this investment;
any such projections, forecasts and estimates are based upon assumptions which are subject to change and which are beyond the control
of the Company or its management; (ii) the tax effects which may be expected by this investment are not susceptible to absolute prediction,
and new developments and rules of the Internal Revenue Service, audit adjustment, court decisions or legislative changes may have
an adverse effect on one or more of the tax consequences of this investment; and (iii) the Investor has been advised to consult with
his own advisor regarding legal matters and tax consequences involving this investment. The Investor represents that the Investor’s
investment objective is speculative in that the Investor seeks the maximum total return through an investment in a broad spectrum of securities,
which involves a higher degree of risk than other investment styles and therefore the Investor’s risk exposure is also speculative.
The Securities offered hereby are highly speculative and involve a high degree of risk and Investor should only purchase these securities
if Investor can afford to lose their entire investment.

 

(l)            Matters
Concerning the Placement Agent. Such Investor acknowledges that the Placement Agent is acting as the exclusive Placement Agent for
the Offering and that the Placement Agent will receive a cash commission in the amount of ten percent (10%) of the gross proceeds raised
in the Offering. The Placement Agent is acting as placement agent for the Company, and, in that capacity, is not acting as investment
advisor to the Investor in connection with the Securities and Underlying Securities being offered in this Offering. The Investor must
make his own investment decisions. In making those decisions, the Investor should be aware that the Placement Agent will receive a placement
fee as described above.

 

    17

     

    

 

(m)            Money
Laundering. If an entity, the operations of such Investor are and have been conducted at all times in compliance with applicable financial
record-keeping and reporting requirements of the Money Laundering Laws, and no Action or Proceeding by or before any court or governmental
agency, authority or body or any arbitrator involving the Company with respect to the Money Laundering Laws is pending or, to the knowledge
of the Company or any Subsidiary, threatened.

 

ARTICLE IV.         OTHER
AGREEMENTS OF THE PARTIES

 

Section 4.01         Transfer
Restrictions.

 

(a)            The
Securities and Underlying Securities may only be disposed of in compliance with state and federal securities laws. In connection with
any transfer of Securities or Underlying Securities other than pursuant to an effective registration statement or Rule 144, the Company
may require the transferor thereof to provide to the Company an opinion of counsel selected by the transferor and reasonably acceptable
to the Company, the form and substance of which opinion shall be reasonably satisfactory to the Company, to the effect that such transfer
does not require registration of such transferred Securities or Underlying Securities under the Securities Act. The Securities and Underlying
Securities may not be sold or transferred by the Investors without the written consent of the Company, which shall not be unreasonably
withheld. As a condition of such sale or transfer, any such transferee shall agree in writing to be bound by the terms of this Agreement
and shall have the rights of an Investor under this Agreement.

 

(b)            The
Investors agree to the imprinting, so long as is required by this Section 4.01, of a legend on any of the Securities and Underlying
Securities in the following form:

 

[NEITHER] THIS SECURITY [NOR
THE SECURITIES INTO WHICH THIS SECURITY IS [EXERCISABLE/CONVERTIBLE] HAS [NOT] BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION
OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR
TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.

 

(c)            Upon
the Investor’s request in connection with a proposed sale of Securities or Underlying Securities pursuant to Rule 144 and if
the Company reasonably determines it is so required, upon receipt of customary documentation from Investor’s broker (if the Securities
or Underlying Securities are sold in brokers transactions), the Company shall, at its own cost and effort, retain legal counsel to provide
an opinion letter to the Company’s transfer agent opining that the Underlying Securities may be resold without registration under
the Securities Act, pursuant to Rule 144, promulgated thereunder, so long as the requirements of Rule 144 are met for any Securities
or Underlying Securities to be resold thereunder. The Company shall arrange for any such opinion letter to be provided not later than
five (5) Business Days after the date of delivery to and receipt by the Company of a written request by any Investor together with
(if required in order to render the opinion) any broker’s representation letter of other customary documentation reasonably requested
by the Company evidencing compliance with Rule 144 (“Legend Removal Date”), and such opinion letter may be a ‘blanket’
opinion letter covering Underlying Securities held by more than one Investor (if applicable to more than one Investor).

 

    18

     

    

 

(d)            Each
Investor, severally and not jointly with the other Investors, agrees that such Investor will sell any Securities and Underlying Securities
only pursuant to either the registration requirements of the Securities Act, including any applicable prospectus delivery requirements,
or an exemption therefrom, and that if Securities or Underlying Securities are sold pursuant to a registration statement, they will be
sold in compliance with the plan of distribution set forth therein, and acknowledges that the removal of the restrictive legend from certificates
representing Securities as set forth in this Section 4.01 is predicated upon the Company’s reliance upon this understanding.

 

Section 4.02         Acknowledgment
of Dilution. The Company acknowledges that the issuance of the Underlying Securities may result in dilution of the outstanding shares
of Common Stock, which dilution may be substantial under certain market conditions. The Company further acknowledges that its obligations
under the Transaction Documents, including, without limitation, its obligation to issue the Underlying Securities pursuant to the Securities,
are unconditional and absolute and not subject to any right of set off, counterclaim, delay or reduction, regardless of the effect of
any such dilution or any claim the Company may have against any Investor and regardless of the dilutive effect that such issuance may
have on the ownership of the other stockholders of the Company.

 

Section 4.03         Registration
Rights. The Company shall cause the Registration Rights Agreement to remain in full force and effect and the Company shall comply
in all material respects with the terms thereof, a copy of which is annexed hereto as Appendix D.

 

Section 4.04         Integration.
The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2
of the Securities Act) that would be integrated with the offer or sale of the Securities or Underlying Securities to the Investors in
a manner that would require the registration under the Securities Act of the sale of the Securities to the Investors.

 

Section 4.05         Publicity.
The Company and each Investor shall consult with each other in issuing any other press releases with respect to the transactions contemplated
hereby, and neither the Company nor any Investor shall issue any such press release nor otherwise make any such public statement without
the prior consent of the Company with respect to any press release of any Investor, or without the prior consent of each Investor with
respect to any press release of the Company mentioning such Investor, which consent shall not unreasonably be withheld or delayed, except
if such disclosure is required by law, in which case the disclosing party shall promptly provide the other party with prior notice of
such public statement or communication.

 

Section 4.06         Indemnification
of Investors. The Company shall indemnify, reimburse and hold harmless the Investors and their respective partners, members, shareholders,
officers, directors, employees and agents (and any other persons with other titles that have similar functions) (collectively, “Indemnitees”)
from and against any and all losses, claims, liabilities, damages, penalties, suits, costs and expenses, of any kind or nature, (including
fees relating to the cost of investigating and defending any of the foregoing) imposed on, incurred by or asserted against such Indemnitee
in any way related to or arising from or alleged to arise from: (i) any breach of any of the representations, warranties, covenants
or agreements made by the Company in this Agreement or in the other Transaction Documents; and (ii) any action instituted against
such Indemnitee in any capacity, or any of them or their respective Affiliates, by any stockholder of the Company who is not an Affiliate
of such Indemnitee, with respect to any of the transactions contemplated by the Transaction Documents (unless such action is based upon
a breach of such Indemnitee’s representations, warranties or covenants under the Transaction Documents or any agreements or understandings
such Indemnitee may have with any such stockholder or any violations by such Indemnitee of state or federal securities laws or any conduct
by such Indemnitee which results from the gross negligence or willful misconduct of the Indemnitee as determined by a final, nonappealable
decision of a court of competent jurisdiction).

 

    19

     

    

 

Section 4.07         Reservation
of Underlying Securities.

 

(a)            The
Company shall maintain a reserve from its duly authorized shares of Common Stock for issuance pursuant to the Securities in such amount
as the Required Minimum, as may then be required to fulfill its obligations in full under the Securities.

 

(b)            If,
on any date, the number of authorized but unissued (and otherwise unreserved) shares of Common Stock is less than the Required Minimum
on such date, then the Board of Directors shall use commercially reasonable efforts to amend the Company’s certificate or articles
of incorporation to increase the number of authorized but unissued shares of Common Stock to at least the Required Minimum at such time,
as soon as possible and in any event not later than the 60th day after such date.

 

Section 4.08         Equal
Treatment of Investors. No consideration (including any modification of any Transaction Document) shall be offered or paid to any
Person to amend or consent to a waiver or modification of any provision of any of the Transaction Documents unless the same consideration
is also offered to all of the parties to the Transaction Documents. Further, the Company shall not make any payment of principal or interest
on the Notes in amounts which are disproportionate to the respective principal amounts outstanding on the Notes at any applicable time.
For clarification purposes, this provision constitutes a separate right granted to each Investor by the Company and negotiated separately
by each Investor, and is intended for the Company to treat the Investors as a class and shall not in any way be construed as the Investors
acting in concert or as a group with respect to the purchase, disposition or voting of Securities or otherwise.

 

Section 4.9           Form D;
Blue Sky Filings. The Company agrees to timely file a Form D with respect to the Securities and Underlying Securities as required
under Regulation D and to provide a copy thereof, promptly upon request of any Investor. The Company shall take such action as the Company
shall reasonably determine is necessary in order to obtain an exemption for, or to qualify the Securities and Underlying Securities for,
sale to the Investors under applicable State Securities Laws of the states of the United States, and shall provide evidence of such actions
promptly upon request of any Investor.

 

Section 4.10         Use
of Proceeds. The Company shall use the net proceeds from the sale of the Securities hereunder for general working capital purposes
and shall not use such proceeds: (i) for the satisfaction of any portion of the Company’s debt (other than payment of trade
payables in the ordinary course of the Company’s business and prior practices); (ii) for the redemption of any Common Stock
or Common Stock equivalents; (iii) for the settlement of any outstanding litigation; (iv) in violation of FCPA or OFAC regulations;
or (v) to lend, give credit or make advances to any officers, directors, employees or Affiliates of the Company.

 

ARTICLE V. MISCELLANEOUS

 

Section 5.01         Termination.
This Agreement may be terminated by any Investor, as to such Investor’s obligations hereunder only and without any effect whatsoever
on the obligations between the Company and the other Investors, by written notice to the Company, if the Closing has not been consummated
on or before the Termination Date; provided, however, that such termination will not affect the right of any party to sue for any breach
by the other party (or parties).

 

Section 5.02         Fees
and Expenses. Each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all
other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement.
The Company shall pay all transfer agent fees, stamp taxes and other taxes and duties levied in connection with the delivery of any Securities
to the Investors.

 

    20

     

    

 

Section 5.03         Entire
Agreement. The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding of the parties
with respect to the subject matter hereof and supersede all prior agreements and understandings, oral or written, with respect to such
matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.

 

Section 5.04         Notices.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall
be deemed given and effective on the earliest of: (i) one Business Day after the date of transmission, if such notice or communication
is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto prior to 5:30 p.m. (New
York City time) on a Business Day, with written confirmation of successful transmission; (ii) the next Business Day after the date
of transmission, if such notice or communication is delivered via facsimile at the facsimile number set forth on the signature pages attached
hereto on a day that is not a Business Day or later than 5:30 p.m. (New York City time) on any Business Day; (iii) the second
Business Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service; or (iv) upon actual
receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be as set forth
on the signature pages attached hereto.

 

Section 5.05         Amendments;
Waivers. No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed, in
the case of an amendment, by the Company and the Investors holding at least a majority in principal amount of the Notes then outstanding.
No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing
waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall
any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right.

 

Section 5.06         Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns.
The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of each Investor (other
than by merger). Any Investor may assign any or all of its rights under this Agreement to any Person to whom such Investor assigns or
transfers any Securities, provided that such transfer complies with the terms of this Agreement and all applicable federal and State Securities
Laws and that such transferee agrees in writing with the Company to be bound, with respect to the transferred Securities, by the provisions
of the Transaction Documents that apply to the ‘Investors’.

 

Section 5.07         No
Third-Party Beneficiaries. Except for the Placement Agent and the Indemnitees named herein, who are intended third-party beneficiaries
of this Agreement, including the representations and warranties made by the Company hereunder, this Agreement is intended for the benefit
of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof
be enforced by, any other Person.

 

Section 5.08         Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents shall be governed
by and construed and enforced in accordance with the internal laws of the State of Arizona, without regard to the principles of conflict
of laws thereof. Each party agrees that all legal proceedings concerning the interpretation, enforcement and defense of the transactions
contemplated by any of the Transaction Documents (whether brought against a party hereto or its respective Affiliates, directors, officers,
shareholders, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New York, New
York (the “New York Courts”). Each party hereto hereby irrevocably submits to the exclusive jurisdiction of the New
York Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed
herein (including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not
to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of such New York Courts,
or such New York Courts are improper or inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service
of process and consents to process being served in any such suit, Action or Proceeding by mailing a copy thereof via registered or certified
mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and
agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be
deemed to limit in any way any right to serve process in any other manner permitted by applicable law. Each party hereto hereby irrevocably
waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or
relating to the Transaction Documents or the transactions contemplated hereby. If any party shall commence an action or proceeding to
enforce any provisions of the Transaction Documents, then the prevailing party in such action or proceeding shall be reimbursed by the
other party for its attorney’s fees and other costs and expenses incurred in the investigation, preparation and prosecution of such
Action or Proceeding.

 

    21

     

    

 

Section 5.09         Survival.
The representations and warranties contained herein shall survive the Closing and the delivery of the Securities and issuance of Underlying
Securities.

 

Section 5.10         Execution.
This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement
and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that
both parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission or by e-mail delivery
of a ‘.pdf” format data file, such signature shall create a valid and binding obligation of the party executing (or on whose
behalf such signature is executed) with the same force and effect as if such facsimile or ‘.pdf” signature page was an
original thereof.

 

Section 5.11         Severability.
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal,
void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force
and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially reasonable efforts
to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision,
covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining
terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

 

Section 5.12         Rescission
and Withdrawal Right. Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of) any of
the other Transaction Documents, whenever any Investor exercises a right, election, demand or option under a Transaction Document and
the Company does not timely perform its related obligations within the periods therein provided, then such Investor may rescind or withdraw,
in its sole discretion from time to time upon written notice to the Company, any relevant notice, demand or election in whole or in part
without prejudice to its future actions and rights; provided, however, that in the case of a rescission of a conversion of a Note, the
Investor shall be required to return any shares of Common Stock subject to any such rescinded conversion or exercise notice.

 

Section 5.13         Replacement
of Securities. If any certificate or instrument evidencing any Securities or Underlying Securities is mutilated, lost, stolen or destroyed,
the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof (in the case of mutilation),
or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory to
the Company of such loss, theft or destruction. The applicant for a new certificate or instrument under such circumstances shall also
pay any reasonable third-party costs (including customary indemnity) associated with the issuance of such replacement Securities or Underlying
Securities.

 

    22

     

    

 

Section 5.14         Remedies.
In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of the Investors
and the Company will be entitled to seek specific performance under the Transaction Documents. The parties agree that monetary damages
may not be adequate compensation for any loss incurred by reason of any breach of obligations contained in the Transaction Documents and
hereby agree to waive and not to assert in any action for specific performance of any such obligation the defense that a remedy at law
would be adequate.

 

Section 5.15         Payment
Set Aside. To the extent that the Company makes a payment or payments to any Investor pursuant to any Transaction Document or an Investor
enforces or exercises its rights thereunder, and such payment or payments or the proceeds of such enforcement or exercise or any part
thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered from, disgorged by or are required
to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other person under any law (including, without
limitation, any bankruptcy law, state or federal law, common law or equitable cause of action), then to the extent of any such restoration
the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such
payment had not been made or such enforcement or setoff had not occurred.

 

Section 5.16         Independent
Nature of Investors’ Obligations and Rights. The obligations of each Investor under any Transaction Document are several and
not joint with the obligations of any other Investor, and no Investor shall be responsible in any way for the performance or non-performance
of the obligations of any other Investor under any Transaction Document. Nothing contained herein or in any other Transaction Document,
and no action taken by any Investor pursuant thereto, shall be deemed to constitute the Investors as a partnership, an association, a
joint venture or any other kind of entity, or create a presumption that the Investors are in any way acting in concert or as a group with
respect to such obligations or the transactions contemplated by the Transaction Documents. Each Investor shall be entitled to independently
protect and enforce its rights, including, without limitation, the rights arising out of this Agreement or out of the other Transaction
Documents, and it shall not be necessary for any other Investor to be joined as an additional party in any proceeding for such purpose.
Each Investor has been represented by its own separate legal counsel in their review and negotiation of the Transaction Documents. The
Company has elected to provide all Investors with the same terms and Transaction Documents for the convenience of the Company and not
because it was required or requested to do so by the Investors.

 

Section 5.17         Construction.
The parties agree that each of them and/or their respective counsel has reviewed and had an opportunity to revise the Transaction Documents
and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party
shall not be employed in the interpretation of the Transaction Documents or any amendments hereto. In addition, each and every reference
to share prices and shares of Common Stock in any Transaction Document shall be subject to adjustment for reverse and forward stock splits,
stock dividends, stock combinations and other similar transactions of the Common Stock that occur after the date of this Agreement.

 

Section 5.18         Headings.
The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any
of the provisions hereof.

 

Section 5.19         WAIVER
OF JURY TRIAL. IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY, THE PARTIES EACH
KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY
AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY.

 

[SIGNATURE PAGES FOLLOW]

 

    23

     

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective
authorized signatories as of the date below.

 

		DIGITAL BRANDS GROUP, INC.
	 	 
	 	By:	/s/ John Hilburn Davis IV
	 	 	Name:	John Hilburn Davis IV
	 	 	Title: 	Chief Executive Officer
	 	 
	 	INVESTORS:
	 	 
	 	The Investors executing the Signature
Page in the form attached hereto as Annex A and delivering the same to the Company or its agents shall be deemed to have executed
this Agreement and agreed to the terms hereof.

 

[Signature
Page to Securities Purchase Agreement]

 

     

     

    

 

Annex A

 

Securities Purchase
Agreement Investor Counterpart Signature Page

 

The undersigned, desiring
to: (i) enter into this Securities Purchase Agreement dated as of April 8, 2022 (“Agreement”), with the undersigned,
Digital Brands Group, Inc., a Delaware corporation (“Company”), in the form furnished to the undersigned; and
(ii) purchase the Securities as set forth below, hereby agrees to purchase such Securities from the Company as of the Closing and
further agrees to join the Agreement as a party thereto, with all the rights and privileges appertaining thereto, and to be bound in all
respects by the terms and conditions thereof. The undersigned specifically acknowledges having read the representations in the Agreement
section entitled ‘Representations and Warranties of the Investors,’ and hereby represents that the statements contained
therein are complete and accurate with respect to the undersigned as an Investor.

 

	INVESTOR (if an individual):		INVESTOR
                                            (if an entity):
	 	 	 
	 	 	Target Capital 9 LLC
	 	 	 
	By	 	 	 
	Name:	 	 	(Legal Name of Entity)
	Date:	 	 	 
	 	 	By	/s/ Dmitriy Shapiro
	PUCHASER
(if investing jointly)	 	Name:	Dmitriy Shapiro
	 	 	Title: 	Managing Partner
	By	 	 	Date:	4/6/2022
	Name:	 	 	 
	Date:	 	 	 
	Fax No.	 	 	Fax No.	 
	 	 	 

 

	Aggregate “Subscription Amount”: $1,505,000.00 
	Aggregate “Original Principal Amount” of Notes (above dollar amount times 1.25): $1,881,250.00
	State/Country of Domicile or Formation: 	 	 

	SS/EIN/TIN:	 	 
	Address:	 	 
	Telephone:	 	 
	E-Mail:	 	 

 

[Investor
Counter Signature Page to Securities Purchase Agreement]

 

     

     

    

 

The undersigned, desiring
to: (i) enter into this Securities Purchase Agreement dated as of April 8, 2022 (“Agreement”), with the undersigned,
Digital Brands Group, Inc., a Delaware corporation (“Company”), in the form furnished to the undersigned; and
(ii) purchase the Securities as set forth below, hereby agrees to purchase such Securities from the Company as of the Closing and
further agrees to join the Agreement as a party thereto, with all the rights and privileges appertaining thereto, and to be bound in all
respects by the terms and conditions thereof. The undersigned specifically acknowledges having read the representations in the Agreement
section entitled ‘Representations and Warranties of the Investors,’ and hereby represents that the statements contained
therein are complete and accurate with respect to the undersigned as an Investor.

 

	INVESTOR (if an individual):		INVESTOR
                                            (if an entity):
	 	 	 
	 	 	Dragon Dynamic Catalytic Bdg Sac Fd
	 	 	 
	By	 	 	 
	Name:	 	 	(Legal Name of Entity)
	Date:	 	 	 
	 	 	By	/s/ Gary Carr
	PUCHASER
(if investing jointly)	 	Name:	Gary Carr
	 	 	Title: 	Director
	By	 	 	Date:	 4/8/22
	Name:	 	 	 
	Date:	 	 	 
	Fax No.	 	 	Fax No.	 

 

	Aggregate “Subscription Amount”: $500,000.00 
	Aggregate “Original Principal Amount”
of Notes (above dollar amount times 1.25): $625,000.00
	State/Country of Domicile or Formation: 	 	 

	SS/EIN/TIN:	 	 
	Address:	 	 
	Telephone:	 	 
	E-Mail:	 	 

 

[Investor
Counter Signature Page to Securities Purchase Agreement]

 

     

     

    

 

The undersigned, desiring
to: (i) enter into this Securities Purchase Agreement dated as of April 8, 2022 (“Agreement”), with the undersigned,
Digital Brands Group, Inc., a Delaware corporation (“Company”), in the form furnished to the undersigned; and
(ii) purchase the Securities as set forth below, hereby agrees to purchase such Securities from the Company as of the Closing and
further agrees to join the Agreement as a party thereto, with all the rights and privileges appertaining thereto, and to be bound in all
respects by the terms and conditions thereof. The undersigned specifically acknowledges having read the representations in the Agreement
section entitled ‘Representations and Warranties of the Investors,’ and hereby represents that the statements contained
therein are complete and accurate with respect to the undersigned as an Investor.

 

	INVESTOR (if an individual):		INVESTOR
(if an entity):
	 	 	 
	 	 	622 Capital LLC
	 	 	 
	By	 	 	 
	Name:	 	 	(Legal Name of Entity)
	Date:	 	 	 
	 	 	By	/s/
                                            Gary Clyburn, Jr.
	PUCHASER
(if investing jointly)	 	Name:	Gary Clyburn, Jr.
	 	 	Title: 	Managing Member
	By	 	 	Date:	 April 1, 2022
	Name:	 	 	 
	Date:	 	 	 
	Fax No.	 	 	Fax No.	 

 

	Aggregate “Subscription Amount”: $200,000.00 
	Aggregate “Original Principal Amount”
of Notes (above dollar amount times 1.25): $250,000.00
	State/Country of Domicile or Formation: 	 	 

	SS/EIN/TIN:	 	 
	Address:	 	 
	Telephone:	 	 
	E-Mail:	 	 

 

[Investor
Counter Signature Page to Securities Purchase Agreement]

 

     

     

    

 

The undersigned, desiring
to: (i) enter into this Securities Purchase Agreement dated as of April 8, 2022 (“Agreement”), with the undersigned,
Digital Brands Group, Inc., a Delaware corporation (“Company”), in the form furnished to the undersigned; and
(ii) purchase the Securities as set forth below, hereby agrees to purchase such Securities from the Company as of the Closing and
further agrees to join the Agreement as a party thereto, with all the rights and privileges appertaining thereto, and to be bound in all
respects by the terms and conditions thereof. The undersigned specifically acknowledges having read the representations in the Agreement
section entitled ‘Representations and Warranties of the Investors,’ and hereby represents that the statements contained
therein are complete and accurate with respect to the undersigned as an Investor.

 

	INVESTOR (if an individual):		INVESTOR
(if an entity):
	 	 	 
	 	 	108 Sussex, LLC
	 	 	 
	By	 	 	 
	Name:	 	 	(Legal Name of Entity)
	Date:	 	 	 
	 	 	By	/s/ Clark Reinhard
	PUCHASER
(if investing jointly)	 	Name:	Clark Reinhard
	 	 	Title: 	Owner
	By	 	 	Date:	 4/7/22
	Name:	 	 	 
	Date:	 	 	 
	Fax No.	 	 	Fax No.	 

 

	Aggregate “Subscription Amount”: $250,000.00 
	Aggregate “Original Principal Amount”
of Notes (above dollar amount times 1.25): $312,500.00
	State/Country of Domicile or Formation: 	 	 

	SS/EIN/TIN:	 	 
	Address:	 	 
	Telephone:	 	 
	E-Mail:	 	 

 

[Investor
Counter Signature Page to Securities Purchase Agreement]

 

     

     

    

 

APPENDIX A

 

CONFIDENTIAL INVESTOR QUESTIONNAIRE

 

     

     

    

 

APPENDIX B

 

FORM OF 20% OID PROMISSORY NOTE

 

     

     

    

 

APPENDIX C

 

FORM OF WARRANT

 

     

     

    

 

APPENDIX D

 

REGISTRATION RIGHTS AGREEMENT

 

     

     

    

 

EXHIBIT A

 

Existing Convertible Instruments

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