Document:

Exhibit 10.3

 

Oncobiologics,
Inc.

Second Note and Warrant Amendment and Waiver

 

This Second Note and
Warrant Amendment and Waiver (this “Amendment”), dated November 5, 2018 (the “Effective Date”),
is with respect to those certain senior secured promissory notes (each, a “Note” and collectively, the
“Notes”) and those certain common stock purchase warrants (each, a “Warrant”
and collectively, the “Warrants”, and together with the Notes, the “Securities”,
in each case as amended by the Note, Warrant and Registration Rights Amendment and Waiver dated as of September 7, 2017 (the “September
2017 Amendment”)) issued to Purchasers pursuant to that certain Note and Warrant Purchase Agreement, dated as of
December 22, 2016 (as amended by that certain First Amendment to Note and Warrant Purchase Agreement, dated April 13, 2017, and
as further amended by the September 2017 Amendment, the “NWPA”), and is entered into by and among Oncobiologics,
Inc., a Delaware corporation (the “Company”), and the Purchasers identified on the signature
pages to this Amendment. Capitalized terms used in this Amendment and not otherwise defined in this Amendment have the respective
meanings ascribed to them in the NWPA.

 

Recitals

 

A.          The
Company and the Purchasers are parties to the NWPA.

 

B.          The
Company intends to enter into a transaction pursuant to a Purchase Agreement dated on or about the date hereof in substantially
the form attached hereto as Exhibit A (the “Purchase Agreement”) by and between the Company and BioLexis
Pte. Ltd., a Singapore private limited company (formerly known as GMS Tenshi Holdings Pte. Limited “BioLexis”)
for the private placement of $20,000,000 of shares of the Company’s common stock, par value $0.01 per share (the “Common
Stock”).

 

C.          It
is a condition to consummation of the transactions contemplated by the Purchase Agreement that the Company and Purchasers amend
certain terms in the Notes and the Warrants.

 

D.          It
is a condition to the effectiveness of this Amendment that the Company and BioLexis execute and deliver the Purchase Agreement.

 

E.          Subject
to Section 9 of each of the Notes, Section 7 of the NWPA provides that any provision of the NWPA or the Securities may be amended
and any provision thereof waived only by the written consent of the Company and the Majority Holders. Section 9 of each of the
Notes each provide that any amendment to any Note that changes the fixed maturity of any Loan or Note will not be effective without
the consent of each Purchaser.

 

F.          The
undersigned Purchasers represent all of the Purchasers as of the Effective Date.

 

G.         As
of the Effective Date, the aggregate outstanding principal of the Notes is $13,500,000 and the accrued and unpaid interest on the
Notes is $1,210,296.

 

    	 

     

    

 

H.         The
Purchasers are Holders of the Warrants to acquire 3,792,500 shares of Common Stock, and have requested that the Company modify
the Exercise Price and Termination Date (in each case as such terms are defined in the Warrants) of such Warrants as set forth
herein and the Company is in agreement with such request.

 

I.           Section
5(l) of the Warrants provides that the Warrant may be modified or amended with the written consent of the Company and the Holder
(as defined in the Warrants).

 

Agreement

 

In consideration of the mutual covenants
and agreements set forth herein and for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged,
the parties hereto agree as follows:

 

1.         This
Amendment will be effective as of the Effective Date upon the satisfaction of the following conditions:

 

(a)            The
Purchase Agreement shall have been executed and delivered by the Company and BioLexis in substantially the form attached as Exhibit
A.

 

(b)            Purchasers
holding 100% of the outstanding principal amount of the Notes and the Company shall have executed and delivered a counterpart to
this Amendment.

 

2.          Each
of the Notes is hereby amended as follows:

 

(a)            The
first paragraph of each Note is amended by replacing the phrase “in lawful money of the United States of America and in immediately
available funds” in the first sentence thereof with the phrase “in lawful money of the United States of America and
in immediately available funds (except in connection with any conversion of this Note as contemplated by Section 1 below or the
Second Amendment)”.

 

(b)            Section
1 of each of the Notes are hereby amended and restated as follows:

 

“1.            Principal
Repayment; Conversion. (a) Unless earlier converted into Common Stock in accordance with clause 1(b) below, the outstanding
principal amount of this Note, and all accrued and unpaid interest thereon, shall be due and payable on December 22, 2018 (the
“Maturity Date”); provided that if the Company shall pay in cash to the Purchasers on a pro rata basis
each of the principal and interest payments set forth Section 7(a) through (c) of that certain Second Note and Warrant Amendment
and Waiver, dated as of November 5, 2018, by and among the Purchasers, the Company and the other parties thereto (the “Second
Amendment”), then the Maturity Date shall be automatically extended to June 30, 2019 (if extended, the “Maturity
Date”); provided further that if (x) the Company shall pay in cash to the Purchasers on a pro rata basis the principal
and interest payment set forth in Section 7(e) of the Second Amendment and (y) not less than $20,000,000 of additional equity capital
(in addition to the $20,000,000 of capital raised pursuant to the Purchase Agreement) shall be invested in the Company on or before
June 30, 2019, then the Maturity Date shall be automatically extended to December 22, 2019 (if further extended, the “Maturity
Date”). Notwithstanding anything to the contrary contained in this paragraph or the Purchase Agreement (as amended),
in the event that (i) BioLexis shall fail to fund all or any portion of its committed investment (for any reason whatsoever) under
the Purchase Agreement (as such Purchase Agreement provides as of the date hereof, without any amendment, modification or waiver
thereof) on the dates set forth therein or (ii) the Company shall fail to pay on the date(s) set forth in Section 7 (a) through
(d) of the Second Amendment all or any portion of any payment of principal and interest due and payable on such date(s), then any
of the foregoing clauses (i) or (ii) shall be an “Event of Default” under this Note and the Maturity Date shall be
automatically (and without further action by any Purchaser) accelerated to the date that is five (5) business days after such event.

 

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(b) Subject to the following
provisions, Purchaser shall have right, at Purchaser’s option to convert the outstanding principal amount of this Note and
all accrued and unpaid interest on this Note at any time on or prior to the Maturity Date at a conversion price equal to 120% of
the price paid by BioLexis for the shares of Common Stock pursuant to the Purchase Agreement, otherwise subject to the terms and
conditions set forth in Annex A attached hereto.

 

(c) To convert this Note, Purchaser
shall deliver to the Company a completed and executed notice of conversion substantially in the form attached hereto as Exhibit
C (“Notice of Conversion”).

 

(d) Notwithstanding anything
in this Note or the Second Amendment to the contrary, in the event the Company makes a payment of principal or interest under this
Note after the Effective Date (a “Non-Scheduled Payment”), other than any payment of principal or interest
contemplated by the second proviso to Section 1(a) above or pursuant to clauses (a) through (e) of Section 7 of the Second Amendment
(any such contemplated payment of principal or interest, a “Scheduled Payment”) the aggregate amount
of principal or interest, as the case may be, attributable to the Scheduled Payments shall be reduced ratably by the aggregate
amount of principal or interest, as the case may be, paid in connection with such Non-Scheduled Payments.”

 

(c)            Section
2 of each of the Notes are hereby amended and restated as follows:

 

“2.            Interest.
The Company further promises to pay interest on the outstanding principal amount hereof from the date hereof, until payment in
full, which interest shall be payable at the rate of five percent (5.0%) per annum (the “Stated Interest Rate”)
or the maximum rate permissible by law (which under the laws of the State of New York shall be deemed to be the laws relating to
permissible rates of interest on commercial loans), whichever is less. Interest shall accrue daily and be due and payable on the
Maturity Date (unless paid sooner), and shall be calculated on the basis of a 365-day year for the actual number of days elapsed.
Upon the occurrence and during the continuance of an Event of Default, all amounts owing hereunder shall bear interest at the Stated
Interest Rate plus two percent (2%) per annum.”

 

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(d)            Section
4 of each of the Notes is hereby amended and restated as follows:

 

“4.            Application
of Payments. Except as set forth in the Second Amendment, payment on this Note shall be applied first to accrued interest
and thereafter to the outstanding principal balance hereof. This Note may be prepaid in whole or in part at any time without
penalty or premium. Except as otherwise provided in this Note, the Purchase Agreement or the Second Amendment, any interest
accrued on or prior to the date of any prepayment of this Note shall be paid on the Maturity Date as provided in Section 2 of
this Note.”

 

(e)            Clauses
(d) and (e) of Section 5 of each of the Notes are hereby amended by replacing each instance of the phrase “Indebtedness listed
under the heading ‘Investor Notes’ on Schedule II to the Purchase Agreement” with the phrase “Indebtedness
listed under the heading ‘Investor Notes’ on Schedule II to the Purchase Agreement (including to the extent any such
Indebtedness has been amended, modified or otherwise transferred, sold or assigned to another individual and/or entity)”.

 

(f)           Clause
(h) of Section 5 of each of the Notes are hereby amended by adding at the end thereof the phrase “(in each case, other than
with respect to any of the Indebtedness listed under the heading ‘Investor Notes’ on Schedule II to the Purchase Agreement
(including to the extent any such Indebtedness has been amended, modified, or otherwise transferred, sold or assigned to another
individual and/or entity).

 

3.          Section
2(b) of each Warrant held by a Purchaser signatory hereto is hereby amended and restated as follows:

 

“b)           Exercise
Price. The exercise price per share of the Common Stock under this Warrant shall be $1.50 subject to adjustment hereunder
(the “Exercise Price”).”

 

4.          The
Termination Date in the introductory paragraph of each Warrant held by a Purchaser signatory hereto is hereby amended, such that
the Warrants must be exercised on or prior to the close of business on the eight year anniversary of the Initial Exercise Date
and the phrase “Termination Date” in each such Warrant shall mean such eighth year anniversary.

 

5.          Each
Purchaser hereby waives any requirement that the Company provide notice of the adjustment to the Exercise Price to it, as a Holder
(as such term is defined in the Warrants) provided for in this Amendment as contemplated by Section 3(g) of the Warrants.

 

6.          Schedule
II of the NWPA is hereby amended and restated by Schedule II attached hereto as Exhibit B.

 

7.          In
consideration for each Purchaser’s agreement to enter into this Amendment, subject to clause 7(g) below, the Company agrees
to make the following payments with respect to each Note in the amounts and on the dates set forth in this Section 7:

 

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(a)            On
the Initial Closing Date under the Purchase Agreement (the “Initial Closing Date”), a principal payment
of $150 for each $1,000 in principal on each Note (with such principal amount measured as of the Effective Date but without giving
effect to any principal payments on the Notes made on the Initial Closing Date) plus a pro rata portion of accrued interest (i.e.
$180,990 in the aggregate) such that the aggregate amount of principal and interest paid on the Notes pursuant to this clause (a)
is equal to $2,205,990.

 

(b)            On
or prior to December 7, 2018, a principal payment of $80 for each $1,000 in principal on each Note (with such principal amount
measured as of the Effective Date but without giving effect to any principal payments on the Notes made on the Initial Closing
Date) plus a pro rata portion of accrued interest (i.e. $86,549 in the aggregate) such that the aggregate amount of principal and
interest paid on the Notes pursuant to this clause (b) is equal to $1,166,549.

 

(c)            On
or prior to December 22, 2018, a pro rata portion of accrued interest on all of the Notes in an aggregate amount equal to $1,027,072.

 

(d)            On
or prior to February 15, 2019, an additional principal payment of $110 for each $1,000 in principal on each Note (with such principal
amount measured as of the Effective Date but without giving effect to any principal payments on the Notes made on the Initial Closing
Date) plus a pro rata portion of accrued interest (i.e. $15,000 in the aggregate) such that the aggregate amount of principal and
interest paid on the Notes pursuant to this clause (d) is equal to $1,500,000.

 

(e)            If,
on or prior to June 30, 2019, not less than $20,000,000 of additional equity capital (in addition to the $20,000,000 of capital
raised pursuant to the Purchase Agreement) has been invested in the Company, the Company shall make an additional principal payment
of $222 for each $1,000 in principal on each Note (with such principal amount measured as of the Effective Date but without giving
effect to any principal payments on the Notes made on the Initial Closing Date) plus a pro rata portion of accrued interest of
(i.e. $3,000 in the aggregate) such that the aggregate amount of principal and interest paid on the Notes pursuant to this clause
(e) is equal to $3,000,000,

 

(f)             If,
on or prior to June 30, 2019, not less than $20,000,000 of additional equity capital (in addition to the $20,000,000 of capital
raised pursuant to the Purchase Agreement) has been invested in the Company and the Company has made the principal and interest
payment on the Notes pursuant to clause (e) above required to extend the Maturity Date (as defined in the Notes) to December 22,
2019, the Company shall make an additional principal payment of $148 for each $1,000 in principal on each Note (with such principal
amount measured as of the Effective Date but without giving effect to any principal payments on the Notes made on the Initial Closing
Date) plus a pro rata portion of accrued interest (i.e. $2,000 in the aggregate) such that the aggregate amount of principal and
interest paid on the Notes pursuant to this clause (f) is equal to $2,000,000, which payment shall be due and payable as follows:
(i) 50% of such payment shall be due and payable on or prior to July 31, 2019 and (ii) 50% of such payment shall be due and payable
on or prior to August 31, 2019.

 

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(g)            Notwithstanding
anything in this Amendment or in any Note to the contrary, in the event the Company makes a payment of principal or interest under
the Notes after the Effective Date (a “Non-Scheduled Payment”), other than any payment of principal or
interest contemplated by the second proviso to Section 1(a) of the Notes or pursuant to clauses (a) through (f) of this Section
7 (any such contemplated payment of principal or interest, a “Scheduled Payment”) the aggregate amount
of principal or interest, as the case may be, attributable to the Scheduled Payments shall be reduced ratably by the aggregate
amount of principal or interest, as the case may be, paid in connection with such Non-Scheduled Payments.

 

The Company
and Purchasers agree that a failure by the Company to make any of the payments set forth in this Section 7 on the dates and in
the amounts set forth above (to the extent required) shall constitute a failure to make a payment on each Note on the date due
and payable thereunder for purposes of Section 5(a) of each Note and shall be an “Event of Default”.

 

8.          All
other terms and conditions of the Notes and the Warrants will be unaffected hereby and remain in full force and effect. A copy
of this Amendment may be attached to each of the Notes as an allonge thereto and shall be deemed to be an amendment to each of
the Notes.

 

9.          Upon
giving effect to this Amendment, each reference in the NWPA, the Security Agreement or any Note or Warrant to “this Note”,
“this Warrant” or words of similar import referring to any Note or Warrant, as applicable, shall be and mean, in each
case, a reference to any Note or any Warrant, as applicable, as amended by this Amendment. Any reference in the Notes to the Purchase
Agreement, shall be and mean a reference to the NWPA, as amended by this Second Amendment.

 

10.        The
Company undertakes to take all action as may be reasonably necessary to reduce the exercise price of its issued and outstanding
Series A Warrants (Nasdaq: ONSIW; CUSIP number 68235M 113) to $1.50 per share, and further extend the expiration date of such warrants
to February 18, 2022.

 

11.        Wherever
possible, each provision of this Amendment shall be interpreted in such manner as to be effective and valid under applicable law,
but if any provision of this Amendment shall be prohibited by or invalid under applicable law, such provision shall be ineffective
to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions
of this Amendment.

 

12.        This
Amendment and all actions arising out of or in connection with this Amendment shall be governed by and construed in accordance
with the internal laws of the State of New York, without regard to the conflicts of law provisions. Each of the parties hereto
irrevocably submits to the exclusive jurisdiction of the courts of the State of New York located in New York County and the United
States District Court for the Southern District of New York for the purpose of any suit, action, proceeding or judgment relating
to or arising out of this Amendment and the transactions contemplated hereby. Each of the parties hereto irrevocably consents to
the jurisdiction of any such court in any such suit, action or proceeding and to the laying of venue in such court. Each party
hereto irrevocably waives any objection to the laying of venue of any such suit, action or proceeding brought in such courts and
irrevocably waives any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient
forum. EACH OF THE PARTIES HERETO WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT TO THIS AMENDMENT
AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER.

 

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13.        This
Amendment may only be amended, waived, supplemented or otherwise varied by a document, in writing, of even or subsequent date of
this Amendment, executed by the Company and the Majority Holders; provided that, any amendment, modification, supplement
or waiver to the definition of “Maturity Date” (as defined in the Notes) or that otherwise reduces the principal of
any of the Notes that has the effect of changing the fixed maturity of the Notes or reduces the principal amount of the Notes or
reduces the Conversion Rate (as defined in the Notes) will be subject to the consent of the Majority Holders and each affected
Purchaser.

 

14.        The
provisions of this Amendment shall inure to the benefit of, and be binding upon, the parties to this Amendment, the Purchasers
and their respective successors, assigns, heirs, executors and administrators and other legal representatives.

 

15.        The
Company hereby acknowledges and confirms that the modifications to the Note contained herein shall not in any way affect the rights
set forth in the Security Agreement and IP Security Agreement, each dated as of December 22, 2016 (as amended from time to time)
and hereby reaffirms that the obligations of the Company under the Notes (as amended) are secured by substantially all the Company’s
assets pursuant to such agreements.

 

16.        The
Company agrees to reimburse the Purchasers for reasonable and documented out-of-pocket costs and expenses incurred by the Purchasers
in connection with this Amendment up to an amount not to exceed $25,000.

 

17.        This
Amendment may be executed in one or more counterparts, each of which will be deemed an original, but all of which together will
constitute one and the same agreement. Facsimile copies or copies in “.pdf” format of signed signature pages will be
deemed binding originals.

 

[Signatures Follow]

 

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The parties have executed this Second
Note and Warrant Amendment and Waiver as of the date first above written.

 

	 	Company:
	 	 
	 	Oncobiologics, Inc. 
	 	 
	 	By:	/s/ Lawrence A. Kenyon
	 	Name: 	Lawrence A. Kenyon
	 	Title: 	Chief Executive Officer and Chief Financial Officer

 

[Second
Note and Warrant Amendment and Waiver Signature Page]

 

    	 

     

    

 

The parties have executed this Second
Note and Warrant Amendment and Waiver as of the date first above written.

 

	 	Purchaser:
	 	 
	 	Advent Engineering
	 	 
	 	By:	/s/ Albert Dyrness
	 	Name: 	Albert Dyrness
	 	Title: 	Managing Director

 

[Second
Note and Warrant Amendment and Waiver Signature Page]

  

    	 

     

    

 

The parties have executed this Second
Note and Warrant Amendment and Waiver as of the date first above written.

 

	 	Purchaser:
	 	 
	 	By:	/s/ Dennis M. O’Donnell
	 	Name: 	Dennis M. O’Donnell
	 	Title: 	 

 

[Second
Note and Warrant Amendment and Waiver Signature Page]

 

    	 

     

    

 

The parties have executed this Second
Note and Warrant Amendment and Waiver as of the date first above written.

 

	 	Purchaser:
	 	 
	 	Trutek Corp.
	 	 
	 	By:	/s/ Ashok Wahi
	 	Name: 	Ashok Wahi
	 	Title: 	President

 

[Second
Note and Warrant Amendment and Waiver Signature Page]

 

    	 

     

    

 

The parties have executed this Second
Note and Warrant Amendment and Waiver as of the date first above written.

	 	 
	 	Purchaser:
	 	 
	 	venBio Select Fund LLC
	 	 	 
	 	By:	/s/ Scott Epstein
	 	Name:	Scott Epstein
	 	Title:	CFO & CCO

 

[Second
Note and Warrant Amendment and Waiver Signature Page]

 

    	 

     

    

 

The parties have executed this Second
Note and Warrant Amendment and Waiver as of the date first above written.

 

	 	Purchaser:
	 	 
	 	Steelmill Master Fund LP
	 	 
	 	By:	/s/ Alfred J. Barbagallo
	 	Name:	Alfred J. Barbagallo
	 	Title:	Managing Director & General Counsel

 

[Second
Note and Warrant Amendment and Waiver Signature Page]

 

    	 

     

    

 

The parties have executed this Second
Note and Warrant Amendment and Waiver as of the date first above written.

 

	 	Purchaser:
	 	 
	 	Sabby Healthcare Master Fund, Ltd. 
	 	 	 
	 	By:	/s/ Robert Grundstein
	 	Name:	Robert Grundstein
	 	Title:	COO of Investment Manager

 

[Second
Note and Warrant Amendment and Waiver Signature Page]

 

    	 

     

    

 

The parties have executed this Second
Note and Warrant Amendment and Waiver as of the date first above written.

 

	 	Purchaser:
	 	 
	 	Sabby Volatility Warrant Master Fund, Ltd. 
	 	 
	 	By:	/s/ Robert Grundstein
	 	Name:	Robert Grundstein
	 	Title:	COO of Investment Manager

 

[Second
Note and Warrant Amendment and Waiver Signature Page]

 

    	 

     

    

 

The parties have executed this Second
Note and Warrant Amendment and Waiver as of the date first above written.

 

	 	Purchaser:
	 	 	 
	 	By:	/s/ Scott Canute
	 	Name:	Scott Canute
	 	Title:	 

 

[Second
Note and Warrant Amendment and Waiver Signature Page]

 

    	 

     

    

 

The parties have executed this Second
Note and Warrant Amendment and Waiver as of the date first above written.

 

	 	PURCHASER:
	 	 	 
	 	By:	/s/ Nailesh A. Bhatt
	 	Name:	Nailesh A. Bhatt
	 	Title:	 

 

[Second Note and Warrant Amendment and
Waiver Signature Page]

 

    	

     

    

 

The parties have executed this Second
Note and Warrant Amendment and Waiver as of the date first above written.

 

	 	PURCHASER:
	 	 	 
	 	By:	/s/ Arunkumar B. Vyas
	 	Name:	Arunkumar B. Vyas
	 	Title:	 

 

[Second Note and Warrant Amendment and
Waiver Signature Page]

 

    	

     

    

 

The parties have executed this Second
Note and Warrant Amendment and Waiver as of the date first above written.

 

	 	PURCHASER:
	 	 	 
	 	By:	/s/ Ajitesh Rai
	 	Name:	Ajitesh Rai
	 	Title:	 

 

[Second Note and Warrant Amendment and
Waiver Signature Page]

 

    	

     

    

 

The parties have executed this Second
Note and Warrant Amendment and Waiver as of the date first above written.

 

	 	PURCHASER:
	 	 	 
	 	By:	/s/ Simon Woodhouse
	 	Name:	Simon Woodhouse
	 	Title:	 

 

[Second Note and Warrant Amendment and
Waiver Signature Page]

 

    	

     

    

 

Annex A

 

Terms of Conversion

 

1.         Voluntary
Conversion. At any time until the Notes are no longer outstanding, the Notes shall be convertible (“Conversion”),
in whole or in part, into shares of Common Stock at the option of the holder of the Note (the “Holder”),
at any time and from time to time (subject to the conversion limitations set forth in Section 9 below. The Holder shall effect
conversions by delivering to the Company a Notice of Conversion, specifying therein the principal amount of the Notes to be converted
and the date on which such conversion shall be effected (such date, the “Conversion Date”). If no Conversion
Date is specified in a Notice of Conversion, the Conversion Date shall be the date that such Notice of Conversion is deemed delivered
hereunder. No ink-original Notice of Conversion shall be required, nor shall any medallion guarantee (or other type of guarantee
or notarization) of any Notice of Conversion form be required. To effect conversions hereunder, the Holder shall not be required
to physically surrender the Notes to the Company unless the entire principal amount of the Notes, plus all accrued and unpaid
interest thereon, has been so converted in which case the Holder shall surrender the Notes as promptly as is reasonably practicable
after such conversion without delaying the Company’s obligation to deliver the shares on the Share Delivery Date (as defined
below). Conversions hereunder shall have the effect of lowering the outstanding principal amount of the Notes in an amount equal
to the applicable conversion. The Holder and the Company shall maintain records showing the principal amount(s) converted and
the date of such conversion(s). The Company may deliver an objection to any Notice of Conversion within one (1) Business Day of
delivery of such Notice of Conversion. The Holder, and any assignee by acceptance of the Notes, acknowledge and agree that,
by reason of the provisions of this paragraph, following conversion of a portion of the Notes, the unpaid and unconverted principal
amount of the Notes may be less than the amount stated on the face hereof. For all purposes of this Annex A, all references to
“Notes” in this Annex A shall be a reference only to the Note(s) held by the Holder.

 

2.          Delivery
of Conversion Shares Upon Conversion. Not later than two (2) Trading Days (as defined below) after each Conversion Date (the
“Share Delivery Date”), the Company shall deliver, or cause to be delivered, to the Holder (A) the shares
of Common Stock issuable upon conversion of the Notes (the “Conversion Shares” which shall be free of
restrictive legends and trading restrictions representing the number of Conversion Shares being acquired upon the conversion of
the Notes. The Company shall deliver any Conversion Shares required to be delivered by the Company under this Section 2 electronically
through the Depository Trust Company or another established clearing corporation performing similar functions. “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 American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market,
the New York Stock Exchange, OTCQB or OTCQX (or any successors to any of the foregoing). “Trading Day”
means a day on which the principal Trading Market is open for trading.

 

    	A-1

     

    

 

3.         Failure
to Deliver Conversion Shares. If, in the case of any Notice of Conversion, such Conversion Shares are not delivered to or
as directed by the Holder by the Share Delivery Date, the Holder shall be entitled to elect by written notice to the Company at
any time on or before its receipt of such Conversion Shares, to rescind such Conversion, in which event the Company shall promptly
return to the Holder any original Note delivered to the Company and the Holder shall promptly return to the Company the Conversion
Shares issued to such Holder pursuant to the rescinded Conversion Notice.

 

4.         Obligation
Absolute; Partial Liquidated Damages. The Company’s obligations to issue and deliver the Conversion Shares upon conversion
of the Notes in accordance with the terms hereof are absolute and unconditional, irrespective of any action or inaction by the
Holder to enforce the same, any waiver or consent with respect to any provision hereof, the recovery of any judgment against any
Person or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or
alleged breach by the Holder or any other Person of any obligation to the Company or any violation or alleged violation of law
by the Holder or any other Person, and irrespective of any other circumstance which might otherwise limit such obligation of the
Company to the Holder in connection with the issuance of such Conversion Shares; provided, however, that such delivery
shall not operate as a waiver by the Company of any such action the Company may have against the Holder. In the event the Holder
of the Notes shall elect to convert any or all of the outstanding principal amount hereof, the Company may not refuse conversion
based on any claim that the Holder or anyone associated or affiliated with the Holder has been engaged in any violation of law,
agreement or for any other reason, unless an injunction from a court, on notice to Holder, restraining and or enjoining conversion
of all or part of the Notes shall have been sought and obtained, and the Company posts a surety bond for the benefit of the Holder
in the amount of 150% of the outstanding principal amount of the Notes, which is subject to the injunction, which bond shall remain
in effect until the completion of arbitration/litigation of the underlying dispute and the proceeds of which shall be payable
to the Holder to the extent it obtains judgment. In the absence of such injunction, the Company shall issue Conversion Shares
or, if applicable, cash, upon a properly noticed conversion. If the Company fails for any reason to deliver to the Holder such
Conversion Shares pursuant to Section 2 by the Share Delivery Date, the Company shall pay to the Holder, in cash, as liquidated
damages and not as a penalty, for each $1,000 of principal amount being converted, $10 per Trading Day (increasing to $20 per
Trading Day on the fifth (5th) Trading Day after such liquidated damages begin to accrue) for each Trading Day after
such Share Delivery Date until such Conversion Shares are delivered or Holder rescinds such conversion. Nothing herein shall limit
a Holder’s right to pursue actual damages or declare an Event of Default pursuant to Section 8 hereof for the Company’s
failure to deliver Conversion Shares within the period specified herein and the Holder shall have the right to pursue all remedies
available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive
relief. The exercise of any such rights shall not prohibit the Holder from seeking to enforce damages pursuant to any other Section
hereof or under applicable law.

 

    	A-2

     

    

 

5.         Compensation
for Buy-In on Failure to Timely Deliver Conversion Shares Upon Conversion. In addition to any other rights available to the
Holder, if the Company fails for any reason to deliver to the Holder such Conversion Shares by the Share Delivery Date pursuant
to Section 4(c)(ii), and if after such Share Delivery Date the Holder is required by its brokerage firm to purchase (in an open
market transaction or otherwise), or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver
in satisfaction of a sale by the Holder of the Conversion Shares which the Holder was entitled to receive upon the conversion
relating to such Share Delivery Date (a “Buy-In”), then the Company shall (A) pay in cash to the Holder (in
addition to any other remedies available to or elected by the Holder) the amount, if any, by which (x) the Holder’s total
purchase price (including any brokerage commissions) for the Common Stock so purchased exceeds (y) the product of (1) the aggregate
number of shares of Common Stock that the Holder was entitled to receive from the conversion at issue multiplied by (2) the
actual sale price at which the sell order giving rise to such purchase obligation was executed (including any brokerage commissions)
and (B) at the option of the Holder, either reissue (if surrendered) the Notes in a principal amount equal to the principal amount
of the attempted conversion (in which case such conversion shall be deemed rescinded) or deliver to the Holder the number of shares
of Common Stock that would have been issued if the Company had timely complied with its delivery requirements under Section 2.
For example, if the Holder purchases Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an
attempted conversion of the Notes with respect to which the actual sale price of the Conversion Shares (including any brokerage
commissions) giving rise to such purchase obligation was a total of $10,000 under clause (A) of the immediately preceding sentence,
the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice indicating the amounts
payable to the Holder in respect of the Buy-In and, upon request of the Company, evidence of the amount of such loss. Nothing
herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including,
without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely
deliver Conversion Shares upon conversion of the Notes as required pursuant to the terms hereof.

 

6.         Reservation
of Shares Issuable Upon Conversion. The Company covenants that it will at all times reserve and keep available out of its
authorized and unissued shares of Common Stock for the sole purpose of issuance upon conversion of the Notes and payment of interest
on the Notes, each as herein provided, free from preemptive rights or any other actual contingent purchase rights of Persons other
than the Holder (and the other holders of the Notes), not less than such aggregate number of shares of the Common Stock as shall
be issuable upon the conversion of the then outstanding principal amount of the Notes and payment of interest hereunder. The Company
covenants that all shares of Common Stock that shall be so issuable shall, upon issue, be duly authorized, validly issued, fully
paid and nonassessable.

 

7.         Fractional
Shares. No fractional shares or scrip representing fractional shares shall be issued upon the conversion of the Notes. As
to any fraction of a share which the Holder would otherwise be entitled to purchase upon such conversion, the Company shall at
its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by
the Conversion Price or round up to the next whole share.

 

8.         Transfer
Taxes and Expenses. The issuance of Conversion Shares on conversion of the Notes shall be made without charge to the Holder
hereof for any documentary stamp or similar taxes that may be payable in respect of the issue or delivery of such Conversion Shares,
provided that the Company shall not be required to pay any tax that may be payable in respect of any transfer involved in the
issuance and delivery of any such Conversion Shares upon conversion in a name other than that of the Holder of the Notes so converted
and the Company shall not be required to issue or deliver such Conversion Shares unless or until the Person or Persons requesting
the issuance thereof shall have paid to the Company the amount of such tax or shall have established to the satisfaction of the
Company that such tax has been paid. The Company shall pay all transfer agent fees required for same-day processing of any Notice
of Conversion and all fees to the Depository Trust Company (or another established clearing corporation performing similar functions)
required for same-day electronic delivery of the Conversion Shares.

 

    	A-3

     

    

 

9.         Holder’s
Conversion Limitations. The Company shall not effect any conversion of the Notes, and a Holder shall not have the right
to convert any portion of the Notes, to the extent that after giving effect to the conversion set forth on the applicable
Notice of Conversion, the Holder (together with the Holder’s Affiliates, and any other Persons acting as a group
together with the Holder or any of the Holder’s Affiliates (such Persons, “Attribution
Parties”)) would beneficially own in excess of the Beneficial Ownership Limitation (as defined below). 
For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its
Affiliates and Attribution Parties shall include the number of shares of
Common Stock issuable upon conversion of the Notes with respect to which such determination is being made, but shall exclude
the number of shares of Common Stock which are issuable upon (i) conversion of the remaining, unconverted principal amount of
the Notes beneficially owned by the Holder or any of its Affiliates or Attribution
Parties and (ii) exercise or conversion of the unexercised or unconverted portion of any other securities of the
Company subject to a limitation on conversion or exercise analogous to the limitation contained herein (including,
without limitation, any other Notes or the Warrants) beneficially owned by the Holder or any of its Affiliates or
Attribution Parties.  Except as set forth in the preceding sentence, for purposes of this Section 9, beneficial
ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated
thereunder. To the extent that the limitation contained in this Section 9 applies, the determination of whether the Notes are
convertible (in relation to other securities owned by the Holder together with any Affiliates and Attribution Parties) and of
which principal amount of the Notes are convertible shall be in the sole discretion of the Holder, and the submission of a
Notice of Conversion shall be deemed to be the Holder’s determination of whether the Notes may be converted (in
relation to other securities owned by the Holder together with any Affiliates or
Attribution Parties) and which principal amount of the Notes are convertible, in each case subject to the Beneficial
Ownership Limitation. To ensure compliance with this restriction, the Holder will be deemed to represent to the Company each
time it delivers a Notice of Conversion that such Notice of Conversion has not violated the restrictions set forth in this
paragraph and the Company shall have no obligation to verify or confirm the accuracy of such determination. In
addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d)
of the Exchange Act and the rules and regulations promulgated thereunder. For
purposes of this Section 9, in determining the number of outstanding shares of Common Stock, the Holder may rely on the
number of outstanding shares of Common Stock as stated in the most recent of the following: (i) the Company’s most
recent periodic or annual report filed with the Commission, as the case may be, (ii) a more recent public announcement by the
Company, or (iii) a more recent written notice by the Company or the Company’s transfer agent setting forth the number
of shares of Common Stock outstanding.  Upon the written or oral request of a Holder, the Company shall within one
Trading Day confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding.  In any
case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise
of securities of the Company, including the Notes, by the Holder or its Affiliates since the date as of which such number of
outstanding shares of Common Stock was reported. The “Beneficial Ownership Limitation” shall be 4.99% of
the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common
Stock issuable upon conversion of the Notes held by the Holder. The Holder, upon notice to the Company, may increase or
decrease the Beneficial Ownership Limitation provisions of this Section 9, provided that the Beneficial Ownership Limitation
in no event exceeds 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the
issuance of shares of Common Stock upon conversion of the Notes held by the Holder and the Beneficial Ownership
Limitation provisions of this Section 9 shall continue to apply. Any increase in the Beneficial Ownership Limitation will not
be effective until the 61st day after such notice is delivered to the Company. The Beneficial Ownership Limitation
provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the
terms of this Section 9 to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the
intended Beneficial Ownership Limitation contained herein or to make changes or supplements necessary or desirable to
properly give effect to such limitation. The limitations contained in this
paragraph shall apply to a successor holder of the Notes.

 

    	A-4

     

    

 

10.       Stock
Dividends and Stock Splits. If the Company, at any time while the Notes are outstanding: (i) pays a stock dividend or otherwise
makes a distribution or distributions payable in shares of Common Stock on shares of Common Stock or any Common Stock Equivalents
(as defined below) (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon conversion
of, or payment of interest on, the Notes), (ii) subdivides outstanding shares of Common Stock into a larger number of shares,
(iii) combines (including by way of a reverse stock split) outstanding shares of Common Stock into a smaller number of shares
or (iv) issues, in the event of a reclassification of shares of the Common Stock, any shares of capital stock of the Company,
then the Conversion Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock
(excluding any treasury shares of the Company) outstanding immediately before such event, and of which the denominator shall be
the number of shares of Common Stock outstanding immediately after such event. Any adjustment made pursuant to this Section shall
become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or
distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification.
“Common Stock Equivalents” means any securities of the Company or the Subsidiaries which would entitle
the holder thereof to acquire at any time Common Stock, including, without limitation, any debt, preferred stock, right, option,
warrant or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the
holder thereof to receive, Common Stock.

 

11.       Subsequent
Rights Offerings. In addition to any adjustments pursuant to Section 10 above, if at any time the Company grants, issues or
sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata to the record
holders of any class of shares of Common Stock (the “Purchase Rights”), then the Holder will be entitled
to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired
if the Holder had held the number of shares of Common Stock acquirable upon complete conversion of the Notes (without regard to
any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the
date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date
as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights
(provided, however, that, to the extent that the Holder’s right to participate in any such Purchase Right
would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate
in such Purchase Right to such extent (or beneficial ownership of such shares of Common Stock as a result of such Purchase Right
to such extent) and such Purchase Right to such extent shall be held in abeyance for the Holder until such time, if ever, as its
right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).

 

    	A-5

     

    

 

12.       Pro
Rata Distributions. During such time as the Notes are outstanding, if the Company shall declare or make any dividend or other
distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital
or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options by way of
a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a “Distribution”),
at any time after the issuance of the Notes, then, in each such case, the Holder shall be entitled to participate in such Distribution
to the same extent that the Holder would have participated therein if the Holder had held the number of shares of Common Stock
acquirable upon complete conversion of the Notes (without regard to any limitations on conversion hereof, including without limitation,
the Beneficial Ownership Limitation) immediately before the date of which a record is taken for such Distribution, or, if no such
record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the participation
in such Distribution (provided, however, that, to the extent that the Holder's right to participate in any such
Distribution would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to
participate in such Distribution to such extent (or in the beneficial ownership of any shares of Common Stock as a result of such
Distribution to such extent) and the portion of such Distribution shall be held in abeyance for the benefit of the Holder until
such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).

 

13.       Fundamental
Transaction. If, at any time while the Notes are outstanding, (i) the Company, directly or indirectly, in one or more related
transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company, directly or indirectly,
effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets
in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether
by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to sell, tender or exchange
their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding Common
Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization
or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted
into or exchanged for other securities, cash or property, or (v) the Company, directly or indirectly, in one or more related transactions
consummates a stock or share purchase agreement or other business combination (including, without limitation, a reorganization,
recapitalization, spin-off or scheme of arrangement) with another Person whereby such other Person acquires more than 50% of the
outstanding shares of Common Stock (not including any shares of Common Stock held by the other Person or other Persons making
or party to, or associated or affiliated with the other Persons making or party to, such stock or share purchase agreement or
other business combination) (each a “Fundamental Transaction”), then, upon any subsequent conversion
of the Notes, the Holder shall have the right to receive, for each Conversion Share that would have been issuable upon such conversion
immediately prior to the occurrence of such Fundamental Transaction (without regard to any limitation in Section 9 on the conversion
of the Notes), the number of shares of Common Stock of the successor or acquiring corporation or of the Company, if it is the
surviving corporation, and any additional consideration (the “Alternate Consideration”) receivable as
a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which the Notes are convertible
immediately prior to such Fundamental Transaction (without regard to any limitation in Section 9 on the conversion of the Notes).
For purposes of any such conversion, the determination of the Conversion Price shall be appropriately adjusted to apply to such
Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one (1) share of Common Stock in
such Fundamental Transaction, and the Company shall apportion the Conversion Price among the Alternate Consideration in a reasonable
manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Common Stock are
given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be
given the same choice as to the Alternate Consideration it receives upon any conversion of the Notes following such Fundamental
Transaction. The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not the survivor
(the “Successor Entity”) to assume in writing all of the obligations of the Company under the Notes
and the other Transaction Documents (as defined in the Purchase Agreement) in accordance with the provisions of this Section 13
pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder (without
unreasonable delay) prior to such Fundamental Transaction and shall, at the option of the holder of the Notes, deliver to the
Holder in exchange for the Notes a security of the Successor Entity evidenced by a written instrument substantially similar in
form and substance to the Notes which is convertible for a corresponding number of shares of capital stock of such Successor Entity
(or its parent entity) equivalent to the shares of Common Stock acquirable and receivable upon conversion of the Notes (without
regard to any limitations on the conversion of the Notes) prior to such Fundamental Transaction, and with a conversion price which
applies the conversion price hereunder to such shares of capital stock (but taking into account the relative value of the shares
of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock, such number of shares
of capital stock and such conversion price being for the purpose of protecting the economic value of the Notes immediately prior
to the consummation of such Fundamental Transaction), and which is reasonably satisfactory in form and substance to the Holder.
Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that
from and after the date of such Fundamental Transaction, the provisions of the Notes and the other Transaction Documents referring
to the “Company” shall refer instead to the Successor Entity), and may exercise every right and power of the Company
and shall assume all of the obligations of the Company under the Notes and the other Transaction Documents with the same effect
as if such Successor Entity had been named as the Company herein.

 

    	A-6

     

    

 

14.       Calculations.
All calculations under this Annex A shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be. For
purposes of this Annex A, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall be
the sum of the number of shares of Common Stock (excluding any treasury shares of the Company) issued and outstanding.

 

15.       Adjustment
to Conversion Price. Whenever the Conversion Price is adjusted pursuant to any provision of this Annex A, the Company shall
promptly deliver to each Holder a notice setting forth the Conversion Price after such adjustment and setting forth a brief statement
of the facts requiring such adjustment.

 

16.       Notice
to Allow Conversion by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on
the Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C)
the Company shall authorize the granting to all holders of the Common Stock of rights or warrants to subscribe for or purchase
any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required
in connection with any reclassification of the Common Stock, any consolidation or merger to which the Company is a party, any
sale or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Common
Stock is converted into other securities, cash or property or (E) the Company shall authorize the voluntary or involuntary dissolution,
liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be filed at each office
or agency maintained for the purpose of conversion of the Notes, and shall cause to be delivered to the Holder at its last address
as it shall appear upon the Note Register, at least twenty (20) calendar days prior to the applicable record or effective date
hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution,
redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record
to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such
reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date
as of which it is expected that holders of the Common Stock of record shall be entitled to exchange their shares of the Common
Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or
share exchange, provided that the failure to deliver such notice or any defect therein or in the delivery thereof shall not affect
the validity of the corporate action required to be specified in such notice. The Holder shall remain entitled to convert the
Notes during the 20-day period commencing on the date of such notice through the effective date of the event triggering such notice
except as may otherwise be expressly set forth herein.

 

    	A-7

     

    

 

Exhibit A

 

Purchase Agreement

 

     

     

    

 

Exhibit B

 

Schedule of Indebtedness

 

     

     

    

 

Exhibit C

 

Notice of ConversionExhibit 10.1

 

EXECUTION VERSION

 

EMPLOYMENT AGREEMENT

 

EMPLOYMENT AGREEMENT, dated as of October
30, 2018, by and between Centric Brands, Inc., a Delaware corporation (the “Company”), and Anurup S. Pruthi
(the “the Executive”).

 

WITNESSETH

 

WHEREAS, the Executive possesses experience
and expertise concerning the type of business and operations conducted by the Company; and

 

WHEREAS, the Company desires to employ the
Executive as the Chief Financial Officer of the Company, and the Executive desires to be so employed by the Company, in each case,
upon the terms and subject to the conditions set forth in this Agreement.

 

NOW, THEREFORE, in consideration of the
mutual covenants and agreements hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the Company and the Executive hereby agree as follows:

 

1.       Engagement
of Executive; Duties. During the Term (as hereinafter defined in Section 3 below), the Executive shall have the title of Chief
Financial Officer of the Company, reporting directly to the Company’s Chief Executive Officer or his successor. The Executive
will have such responsibilities, duties, and authority customarily associated with the position of Chief Financial Officer of a
publicly-traded company. In connection with his employment by the Company, the Executive shall be based in New York City, subject
to appropriate business travel.

 

2.       Time.
The Executive will devote substantially all of his working hours to his duties hereunder and towards the overall success of
the business of the Company, provided that nothing contained herein shall be deemed to restrict the Executive from engaging in
charitable, religious, civic or community activities, or from serving on the boards of directors of non-profit organizations and,
with the consent of the Board of Directors (the “Board”) (which consent shall not be unreasonably withheld),
other for-profit companies which do not compete with the Company, provided that such activities do not, individually or in the
aggregate, interfere with the Executive’s duties and responsibilities under this Agreement.

 

3.       Term.
The Executive’s engagement shall commence on an date to be mutually agreed (but no later than November 15, 2018) (the
“Effective Date”) and shall continue through December 31, 2021 (the “Term”), unless otherwise
terminated as provided in Section 5. In the event that the Executive remains an employee of the Company following expiration
of the Term and this Agreement is not extended, he shall be an employee “at will” and shall not be (i) at any time
during or following such “at will” employment, entitled to any of the benefits under this Agreement, or (ii) at any
time following such “at will employment”, subject to any of the restrictions (other than the undertakings contained
in Section 6 and the provisions of Section 10, in each case, which shall survive any termination or non-renewal of this Agreement),
contained in this Agreement (including, but not limited to, the non-solicitation provisions contained in Section 7). If the Company
does not intend to continue Executive’s employment following the expiration of the Term, it shall notify Executive, in writing,
by no later than six (6) months prior to the expiration of the Term.

 

     

     

    

 

4.       Compensation.

 

(a)       Base
Salary. During the Term, the Executive’s base salary will be at a rate of not less than $650,000 per annum (the “Base
Salary”). Such Base Salary shall be paid in accordance with the Company’s payroll practices and policies then in
effect. The Base Salary shall be subject to periodic review for increases, but in no event shall the Base Salary be decreased.

 

(b)       Bonus.
During the Term, the Executive shall be entitled to earn an annual bonus for each fiscal year (the “Annual Bonus”).
Except as provided herein, the Annual Bonus shall be based upon the adjusted EBITDA target set forth in the Board-approved budget
for the year. The target Annual Bonus amount shall be one hundred percent (100%) of the Base Salary, and shall be prorated for
partial years of employment. Notwithstanding the foregoing, for calendar year 2018 and calendar year 2019, the Executive shall
be entitled to an Annual Bonuses of at least one hundred percent (100%) of the Base Salary (together, the “Minimum Annual
Bonuses”); provided, the Minimum Annual Bonus in respect of calendar year 2018 shall be $162,500 and the Minimum Annual
Bonus for calendar year 2019 shall be $325,000. In the event of any acquisition, sale or other disposition of assets or any similar
corporate transaction, the Board shall adjust the EBITDA target for purposes of this Section 4(b) in good faith. Annual Bonuses,
if earned, shall be due and payable by the Company to the Executive annually, payable in the year following the year for which
such Annual Bonus was earned on the earlier of the date the Company files its Form 10-K or March 15th of such year,
subject to the Executive’s continued employment except as otherwise specifically provided in this Agreement.

 

(c)       Equity
Awards. Effective as of the Effective Date, the Executive shall be granted 600,000 restricted stock units (the “Inducement
RSUs”) with respect to the Company’s common stock, $0.10 par value (“Common Stock”) pursuant
to an award agreement between the Executive and the Company (the “Award Agreement”) that is substantially identical
to the form of restricted stock unit agreement under the Company’s 2016 Stock Incentive Compensation Plan (the “2016
Plan”); provided that the Inducement RSUs may be structured as an “inducement” award not granted pursuant
to the 2016 Plan which shall vest in full upon a termination by the Company without Cause (as defined below) or by the Executive
for Good Reason (as defined below), but otherwise subject to the same terms and conditions thereof. The Inducement RSUs shall vest
in one-third increments on each of the first three anniversaries of the Effective Date, subject in each case to the Executive’s
continued employment through the applicable vesting date except as otherwise specifically provided herein. Any vested Inducement
RSUs shall be settled through the issuance of Common Stock promptly following the applicable vesting date.

 

(d)       Signing
Bonus. Promptly following the Effective Date, the Company shall pay the Executive as cash signing bonus of $250,000.

 

(e)       Benefits.
the Executive shall receive the employee and fringe benefits generally made available to other executive officers of the Company
from time to time, including a “401(k)” plan, health, vision, dental and disability coverage. During any waiting period
under the Company’s group health plan following the commencement of the Term, the Company shall reimburse the Executive for
the cost of “COBRA” group health coverage if he elects such coverage under his prior employer’s plan.

 

    	 	2	 

     

    

 

(f)       Reimbursement
of Expenses. The Company shall pay to the Executive the reasonable expenses incurred by him in the performance of his duties
hereunder in accordance with the Company’s policy, or, if such expenses are paid directly by the Executive, the Company shall
promptly reimburse the Executive for such payments in accordance with the Company’s policy, provided that the Executive properly
accounts for such expenses in accordance with the Company’s policy. The Executive also shall receive a travel allowance of
$1,500 per month during the Term. In addition, the Company shall directly pay to the Executive’s counsel for the legal fees
incurred in connection with the negotiation and drafting of this Agreement and the Award Agreement, subject to a maximum payment
of $15,000.

 

(g)       Vacation.
the Executive shall be entitled to paid vacation on the same basis as provided to other senior executive officers of the Company.

 

5.       Termination
of Employment.

 

(a)       General.
The Executive’s employment under this Agreement may be terminated prior to the expiration of the Term without any breach
of this Agreement only on the following circumstances:

 

(b)       Death.
The Executive’s employment under this Agreement shall terminate upon his death.

 

(c)       Disability.
If the Executive suffers a Disability (as defined below in this sub-section (2)), the Company may terminate the Executive’s
employment under this Agreement upon thirty (30) days prior written notice; provided that the Executive has not returned to full
time performance of his duties during such thirty (30) day period. For purposes hereof, “Disability” shall mean the
Executive’s inability to perform his duties and responsibilities hereunder, with reasonable accommodation, due to any physical
or mental illness or incapacity, which condition either (i) has continued for a period of 180 days (including weekends and holidays)
in any consecutive 365-day period, or (ii) is determined by a doctor specializing in the illness or incapacity at issue, selected
by the Company and consented to by the Executive (or, in the event of the Executive’s incapacity, his legal representative),
such consent not to be unreasonably withheld, that the condition is likely to continue for a period of at least twelve (12) consecutive
months from its commencement.

 

(d)       Good
Reason. The Executive may terminate his employment under this Agreement for Good Reason after the occurrence of any of the
Good Reason events set forth in the following sentence. For purposes of this Agreement, “Good Reason” shall mean the
occurrence of any of the following events without the Executive’s prior written consent:

 

(i)       a
material diminution of the authorities, duties or responsibilities of the Executive set forth in Section 1 above or a change such
that the Executive does not report to the Chief Executive Officer;

 

    	 	3	 

     

    

 

(ii)       a
reduction in the Base Salary or the target Annual Bonus opportunity;

 

(iii)       the
involuntary re-location of the Executive to an office outside of New York City;

 

(iv)       a
reduction of the Executive’s title; or

 

(v)       the
failure by the Company to timely comply with its material obligations and agreements contained in this Agreement, including granting
the Inducement RSUs.

 

provided, however, that, within
ninety (90) days of any such events having occurred, the Executive shall have provided the Company with written notice that such
events have occurred and afforded the Company thirty (30) days to cure and if the Company does not cure to the Executive’s
reasonable satisfaction then the Executive terminates his employment within thirty (30) days following the expiration of such cure
period.

 

(e)       Without
Good Reason. The Executive may voluntarily terminate his employment under this Agreement without Good Reason upon written notice
by the Executive to the Company at least thirty (30) days prior to the effective date of such termination (which termination the
Company may, in its sole discretion, make effective earlier than the date set forth in the Notice of Termination (as hereinafter
defined in sub-section (h) below)).

 

(f)       Cause.
The Company may terminate the Executive’s employment under this Agreement for Cause. Termination for “Cause”
shall mean termination of the Executive’s employment because of the occurrence of any of the following as determined by the
Board:

 

(i)       embezzlement,
theft, or misappropriation, or attempted embezzlement, theft, or misappropriation by the Executive of any property, funds or business
opportunity of the Company or any of its subsidiaries or affiliates;

 

(ii)       any
material breach by the Executive of the Executive’s restrictive covenants hereunder;

 

(iii)       any
material breach by the Executive of any other material provision of this Agreement;

 

(iv)       failure
or refusal by the Executive to perform any lawful directive of the Board or the duties of his employment hereunder;

 

(v)       the
Executive’s conviction of, or entry by the Executive of a guilty or no contest plea to (1) a felony or (2) any misdemeanor
involving moral turpitude (or their equivalent in any non-United States jurisdiction) or otherwise involving theft, fraud, dishonesty
or misrepresentation;

 

    	 	4	 

     

    

 

(vi)       any
willful violation of any law, rule or regulation affecting business operations of the Company or its subsidiaries or affiliates
which has a materially adverse effect on the business or reputation of the Company;

 

(vii)       failure
to materially comply with any legal or compliance policies or code of ethics, code of business conduct or conflicts of interest
policy or similar policies of the Company or its subsidiaries or affiliates;

 

(viii)       the
Executive’s breach of his fiduciary obligations to the Company or any of its subsidiaries or affiliates; or

 

(ix)       gross
negligence or willful misconduct on the part of Executive in the performance of his duties as an employee, officer or director
of the Company or any of its subsidiaries or affiliates that the Board, acting in good faith, has a reasonable belief that such
act or failure to act is materially injurious to the Company;

 

provided, that, for the purposes of
this definition of Cause, no act or failure to act, on the part of the Executive shall be considered “willful,” unless
done, or omitted to be done, by him in bad faith and without reasonable belief that his action or omission was in, or not opposed
to, the best interest of the Company (including reputationally); provided further, that none of the events described in clause
(ii), (iii), (iv), (vii), (viii) or (ix) shall constitute Cause unless, if such event is reasonably subject to cure, (A) the Company
first delivers a written notice to the Executive of the occurrence of the applicable event(s) giving rise to Cause and (B) the
Executive fails to cure or correct such event(s) within thirty (30) days of receipt of such notice.

 

(g)       Without
Cause. The Company may terminate the Executive’s employment under this Agreement without Cause immediately upon written
notice by the Company to the Executive.

 

(h)       Notice
of Termination. Any termination of the Executive’s employment by the Company or by the Executive (other than termination
by reason of the Executive’s death) shall be communicated by written Notice of Termination to the other party of this Agreement.
For purposes of this Agreement, a “Notice of Termination” shall mean a written notice which shall indicate the
specific termination provision in this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Executive’s employment under the provision so indicated.

 

(i)       Date
of Termination. The “Date of Termination” shall mean (a) if the Executive’s employment is terminated
by his death, the date of his death, (b) if the Executive’s employment is terminated pursuant to subsection 5(c) above, thirty
(30) days after Notice of Termination is given (provided that the Executive shall not have returned to the performance of his duties
on a full-time basis during such thirty (30) day period), (c) if the Executive’s employment is terminated pursuant to subsections
5(d) or 5(f) above, the date specified in the Notice of Termination after the expiration of any applicable cure periods, (d) if
the Executive’s employment is terminated pursuant to subsection 5(e) above, the date specified in the Notice of Termination
which shall be at least thirty (30) days after Notice of Termination is given, or such earlier date as the Company shall determine,
in its sole discretion, (e) if the Executive’s employment is terminated pursuant to subsection 5(g), the date on which a
Notice of Termination is given and (f) if the Executive is terminated upon expiration of the Term, the date of the expiration of
the Term.

 

    	 	5	 

     

    

 

(j)       Compensation
Upon Termination.

 

(i)       Termination
for Cause, without Good Reason. If the Executive’s employment shall be terminated by the Company for Cause or by the
Executive without Good Reason, the Executive shall receive from the Company: (1) any earned but unpaid Base Salary through the
Date of Termination, paid in accordance with the Company’s standard payroll practices; (2) reimbursement for any unreimbursed
expenses properly incurred and to be paid in accordance with Section 4(e) through the Date of Termination; (3) payment for any
accrued but unused vacation time in accordance with Company policy; and (4) such benefits, and other payments, if any, as to which
the Executive (and his eligible dependents) may be entitled under, and in accordance with the terms and conditions of, the employee
benefit arrangements, plans and programs of the Company as of the Date of Termination, other than any severance pay plan ((1) though
(4), (the “Amounts and Benefits”), and the Company shall have no further obligation with respect to this Agreement
other than as provided in Section 8 of this Agreement. In addition, any portion of any outstanding equity or incentive award that
remains unvested on the Date of Termination shall be treated in accordance with the terms and conditions of such award agreements.

 

(ii)       Termination
without Cause, for Good Reason. If prior to the expiration of the Term, the Executive resigns from his employment hereunder
for Good Reason or the Company terminates the Executive’s employment hereunder without Cause (other than a termination by
reason of death or Disability), then the Company shall pay or provide the Executive the Amounts and Benefits and the following:

 

(1)       an
amount equal to the then-current Base Salary, which shall be payable in ratable installments pursuant to the Company’s standard
payroll procedures for twelve (12) months following the Date of Termination;

 

(2)       any
Annual Bonus earned but unpaid for a prior year (the “Prior Year Bonus”), which shall be payable in full in
a lump sum cash payment to be made to the Executive on the date that is sixty (60) days following the Date of Termination or the
date such bonus would be paid if the Executive had remained an employee of the Company, if later; provided, the Release
is executed in one taxable year and becomes effective in another taxable year, payment shall not be made until the second taxable
year;

 

(3)       in
the event such resignation or termination occurs following the Company’s first fiscal quarter of any year, a pro-rata portion
of the Executive’s Annual Bonus for the fiscal year in which the Executive’s termination occurs based on actual results
for such year (determined by multiplying the amount of such Annual Bonus which would be due for the full fiscal year by a fraction,
the numerator of which is the number of days during the fiscal year of termination that the Executive is employed by the Company
and the denominator of which is 365), paid in accordance with Section 4(b) (“Pro Rata Bonus”). The Pro Rata Bonus shall
be payable at the time the Annual Bonus would have been paid if Executive’s employment had not terminated;

 

    	 	6	 

     

    

 

(4)       subject
to the Executive’s timely election of continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985,
as amended (“COBRA”), with respect to the Company’s group health insurance plans in which the Executive participated
immediately prior to the Date of Termination (“COBRA Continuation Coverage”), the Company shall pay the full
cost of COBRA Continuation Coverage for the Executive and his eligible dependents until the earlier of (a) when the Executive becomes
eligible for coverage under another employer’s health plan, or (b) eighteen (18) months following the Date of Termination;
and

 

(5)       any
unvested portion of the Inducement RSUs shall accelerate and become fully vested on the Date of Termination and the shares covered
by the Inducement RSUs shall be distributed to the Executive on the date that is thirty (30) days following the Date of Termination
(subject to any securities law restrictions).

 

(iii)       Termination
upon Death. In the event of the Executive’s death, the Company shall pay or provide to the Executive’s estate:
(1) the Amounts and Benefits, (2) the Prior Year Bonus, and (3) a Pro Rata Bonus. These payments shall be in addition to and not
in lieu of any benefits available under any policy maintained by the Executive or the Company with respect to Executive’s
death.

 

(iv)       Termination
upon Disability. In the event the Company terminates the Executive’s employment hereunder for reason of Disability, the
Company shall pay or provide to the Executive: (1) the Amounts and Benefits, (2) the Prior Year Bonus, and (3) a Pro Rata Bonus.
These payments shall be in addition to and not in lieu of any benefits available under any policy maintained by the Executive or
the Company with respect to Executive’s disability.

 

(v)       Release
of Claims. Notwithstanding anything in this Agreement to the contrary, as a condition of receiving any payment or benefits
under Sections 5(j)(ii)-(v) (other than the Amounts and Benefits), the Executive agrees to execute, deliver and not revoke a general
release and covenant not to sue in favor of the Company and its subsidiaries and their respective affiliates in substantially the
form attached here to as Exhibit A (the “Release”), and the Release becomes fully irrevocable within sixty (60)
days following the Date of Termination. In the event the Release is not executed and non-revocable prior to the date that is sixty
(60) days following the Date of Termination, all payments and benefits under Section 5(j)(ii)-(v) (other than the Amounts and Benefits)
shall be forfeited.

 

(vi)       No
Duty to Mitigate. The Executive shall not be required to mitigate the amount of any payment provided for in this Section 5
by seeking other employment or otherwise, nor shall the amount of any payment provided for in this Section 5 be reduced by any
compensation earned by the Executive as the result of the Executive’s employment by another employer or business or by profits
earned by the Executive from any other source at any time before and after the Executive’s Date of Termination (other than
as provided in Section 5(j)(ii)(4)); provided, in the event that the Executive engages, has an interest in or renders any
services to any person or entity (whether as owner, manager, operator, licensor, licensee, lender, partner, stockholder, joint
venturer, employee, consultant or otherwise) that derives at least thirty-five percent (35%) from the sale of premium apparel (each
such case, a “Competing Business”) during any period in which he is receiving payments under Section 5, the
payments received under Section 5 shall be reduced by the compensation received by the Executive from such Competing Business.
For purposes of the preceding sentence “premium apparel” shall not include luxury or designer apparel.

 

    	 	7	 

     

    

 

(vii)       Expiration
of the Term. If the Executive’s employment terminates for any reason upon the end of the Term and the Company has not
offered to extend this Agreement or offered the Executive an employment agreement on equal or greater aggregate financial terms,
then, in addition to the Amounts and Benefits, the Company shall pay the Executive an amount equal to twelve (12) months of his
Base Salary, which shall be payable in full in a lump sum cash payment to be made to the Executive on the date that is thirty (30)
days following the Date of Termination, subject to Section 5(j)(v). The Company also shall pay the Executive the earned Annual
Bonus for the fiscal year ended December 31, 2021. The Company shall have no further obligation with respect to this Agreement
other than as provided in Section 8 of this Agreement.

 

(k)       Effect
of Termination. Upon the Executive’s termination of employment for any reason, he shall be deemed to have immediately
resigned from all positions with the Company and its subsidiaries.

 

6.       Confidentiality.

 

(a)       The
Executive acknowledges that all customer lists and information, vendor or supplier lists and information, inventions, trade secrets,
software and computer code (whether in object code or source code format), databases, or other non-public, confidential or proprietary
knowledge, information or data with respect to the products, prices, marketing, services, operations, finances, business or affairs
of the Company or its subsidiaries and affiliates or with respect to confidential, proprietary or secret processes, methods, inventions,
services, research, techniques, customers (including, without limitation, the identity of the customers of the Company or its subsidiaries
and affiliates and the specific nature of the services provided by the Company or its subsidiaries and affiliates), employees or
plans of or with respect to the Company or its subsidiaries and affiliates or the terms of this Agreement (all of the foregoing
collectively hereinafter referred to as, “Confidential Information”) are property of the Company or its applicable
subsidiaries or affiliates. Notwithstanding the generality of the foregoing, Confidential Information shall not include information
known the Executive prior to his employment with the Company, information that is or becomes generally available or known in the
industry through no fault of the Executive, and contact information contained in the Executive’s rolodex (whether in paper
or electronic form). The Executive further acknowledges that the Company and its subsidiaries and affiliates intend, and make reasonable
good faith efforts, to protect the Confidential Information from public disclosure. Therefore, the Executive agrees that, except
as (a) required by law or regulation or as legally compelled by court order (provided that in such case, the Executive shall
promptly notify the Company of such order, shall cooperate with the Company in attempting to obtain a protective order or to otherwise
restrict such disclosure, and shall only disclose Confidential Information to the minimum extent necessary to comply with any such
law, regulation or order) or (b) required in order to enforce his rights under this Agreement or any other agreement with the Company
and/or its affiliates, during the Term and at all times thereafter, the Executive shall not, directly or indirectly, divulge, transmit,
publish, copy, distribute, furnish or otherwise disclose or make accessible any Confidential Information, or use any Confidential
Information for the benefit of anyone other than the Company and its subsidiaries and affiliates, unless and to the extent that
the Confidential Information becomes generally known to and available for use by the general public by lawful means and other than
as a result of the Executive’s acts or omissions or such disclosure is necessary in the course of the Executive’s proper
performance of his duties under this Agreement. Nothing in this Section 6(a) is intended to limit or affect the Executive’s
right to respond to a subpoena or an inquiry by a government or self-regulatory agency or to exercise the Executive’s rights
under the Defend Trade Secrets Act.

 

    	 	8	 

     

    

 

(b)       The
Company and its subsidiaries and affiliates do not wish to incorporate any unlicensed or unauthorized material into their products
or services. Therefore, the Executive agrees that he will not disclose to the Company, use in the Company’s business, or
cause the Company to use, any information or material which is a trade secret, or confidential or proprietary information, of any
third party, including, but not limited to, any former employer, competitor or client, unless the Company has a right to receive
and use such information or material. The Executive will not incorporate into his work any material or information which is subject
to the copyrights of any third party unless the Company has a written agreement with such third party or otherwise has the right
to receive and use such material or information.

 

7.       Covenants.

 

(a)       Nonsolicitation
of Employees. The Executive shall not, while he is employed by the Company and during the Restricted Period, directly or indirectly,
induce or attempt to induce any employee of the Company or any of its subsidiaries or affiliates to terminate such individual’s
employment with the Company or such subsidiary or affiliate, or in any way interfere with the relationship between the Company
or any such subsidiary or affiliate and any such employee. For purposes of this Section 7, the “Restricted Period”
shall mean a period of twelve (12) months.

 

(b)       Company
IP; Work Product.

 

(i)       “Intellectual
Property” means all intellectual property and industrial property recognized by applicable requirements of law and all
physical or tangible embodiments thereof, including all of the following, whether domestic or foreign: (1) patents and patent applications,
patent disclosures and inventions (whether or not patentable), as well as any reissues, continuations, continuations in part, divisions,
revisions, renewals, extensions or reexaminations thereof; (2) registered and unregistered trademarks, service marks, trade names,
trade dress, logos, slogans and corporate names, and other indicia of origin, pending trademark and service mark registration applications,
and intent-to-use registrations or similar reservations of marks; (3) registered and unregistered copyrights and mask works, and
applications for registration of either; (4) Internet domain names, applications and reservations therefor, uniform resource locators
and the corresponding Internet websites (including any content and other materials accessible and/or displayed thereon); (5) Confidential
Information; and (6) intellectual property and proprietary information not otherwise listed in (1) through (6) above, including
unpatented inventions, invention disclosures, rights of publicity, rights of privacy, moral and economic rights of authors and
inventors (however denominated), methods, artistic works, works of authorship, industrial and other designs, methods, processes,
technology, patterns, techniques, data, plant variety rights and all derivatives, improvements and refinements thereof, howsoever
recorded, or unrecorded; and (7) any goodwill associated with any of the foregoing, damages and payments for past or future infringements
and misappropriations thereof, and all rights to sue for past, present and future infringements or misappropriations thereof.

 

    	 	9	 

     

    

 

(ii)       Work
Product. The Executive agrees to promptly disclose to the Company any and all work product, including Intellectual Property
relating to the business of the Company and any of its affiliates, that is created, developed, acquired, authored, modified, composed,
invented, discovered, performed, reduced to practice, perfected, or learned by the Executive (either solely or jointly with others)
directly relating to the Company’s and its affiliates’ business or within the scope of the Executive’s employment
during the Term (collectively, “Work Product,” and together with such Intellectual Property as may be owned,
used, held for use, or acquired by the Company and its affiliates, the “Company IP”). The Company IP, including
the Work Product, is and shall be the sole and exclusive property of the Company and its affiliates, as applicable. All Work Product
that is copyrightable subject matter shall be considered a “work made for hire” to the extent permitted under applicable
copyright law (including within the meaning of Title 17 of the United States Code) and will be considered the sole property of
the Company. To the extent such Work Product is not considered a “work made for hire,” the Executive hereby grants,
transfers, assigns, conveys and relinquishes, without any requirement of further consideration, all right, title, and interest
to the Work Product (whether now or hereafter existing, including all associated goodwill, damages and payments for past or future
infringements and misappropriations thereof and rights to sue for past and future infringements and misappropriates thereof) to
the Company in perpetuity or for the longest period permitted under applicable law. The Executive agrees, at the Company’s
expense, to execute any documents requested by the Company or any of its affiliates at any time to give full and proper effect
to such assignment. The Executive acknowledges and agrees that the Company is and will be the sole and absolute owner of all Intellectual
Property, including all Company IP. The Executive will cooperate with the Company and any of its affiliates, at no additional cost
to such parties (whether during or after the Term), in the confirmation, registration, protection and enforcement of the rights
and property of the Company and its affiliates in such intellectual property, materials and assets, including, without limitation,
the Company IP. The Executive hereby waives any so-called “moral rights of authors” in connection with the Work Product
and acknowledges and agrees that the Company may use, exploit, distribute, reproduce, advertise, promote, publicize, alter, modify
or edit the Work Product or combine the Work Product with other works including other Company IP, at the Company’s sole discretion,
in any format or medium hereafter devised. The Executive further waives any and all rights to seek or obtain any injunctive or
equitable relief in connection with the Work Product.

 

    	 	10	 

     

    

 

(c)       Company
Property. All Confidential Information, Company IP, files, records, correspondence, memoranda, notes or other documents (including,
without limitation, those in computer-readable form) or property relating or belonging to the Company and its subsidiaries and
affiliates, whether prepared by the Executive or otherwise coming into his possession or control in the course of the performance
of his services under this Agreement, shall be the exclusive property of the Company and shall be delivered to the Company, and
not retained by the Executive (including, without limitation, any copies thereof), promptly upon request by the Company and, in
any event, promptly upon termination of the Executive’s employment hereunder. Upon termination of the Executive’s employment
hereunder, the Executive shall have no rights to and shall make no further use of any Company IP, including Work Product. The Executive
acknowledges and agrees that he has no expectation of privacy with respect to the Company’s telecommunications, networking
or information processing systems (including, without limitation, stored computer files, email messages and voice messages), and
that the Executive’s activity and any files or messages on or using any of those systems may be monitored at any time without
notice. Nothing in this Section 7 shall require the Executive to return to the Company any computers or telecommunication
equipment or tangible property which he owns, including, but not limited to, personal computers, phones and tablet devices; provided,
however, that the Executive shall identify each such device or item to the Company prior to termination of employment and
afford the Company a reasonable opportunity to remove from all such devices or items any confidential or proprietary information
of the Company stored or programmed thereon.

 

(d)       Non-disparagement.
During the Term and thereafter, Executive shall not, directly or indirectly, take any action, or encourage others to take any action,
to disparage or criticize the Company and/or its subsidiaries and affiliates or their respective officers, directors, products
and services or the Company’s largest shareholder. In addition, the Company shall instruct its directors, officers and largest
shareholder not to, directly or indirectly, take any action, or encourage others to take any action, to disparage or criticize
Executive. Nothing contained in this Section 7(e) shall preclude Executive or the Company (or its directors or officers) from enforcing
their respective rights under this Agreement or truthfully testifying in response to legal process or a governmental inquiry. In
addition, notwithstanding anything to the contrary contained herein, no provision of this Agreement shall be interpreted so as
to impede Executive (or any other individual) from reporting possible violations of federal law or regulation to any governmental
agency or entity, including but not limited to the Department of Justice, the Securities and Exchange Commission, the Congress,
and any agency Inspector General, or making other disclosures under the whistleblower provisions of federal law or regulation.
Executive does not need the prior authorization of the Company to make any such reports or disclosures and the Employee shall not
be not required to notify the Company that such reports or disclosures have been made.

 

    	 	11	 

     

    

 

(e)       Enforcement.
Executive and the Company acknowledge that a breach of the covenants and agreements contained in Sections 6 and 7 would
cause irreparable damage to the other party, the exact amount of which would be difficult to ascertain, and that the remedies at
law for any such breach or threatened breach would be inadequate. Accordingly, Executive and the Company (and its subsidiaries
and affiliates) agree that if either breaches or threatens to breach any of the covenants or agreements contained in Sections
6 and 7, in addition to any other remedy which may be available at law or in equity, Executive, the Company and its subsidiaries
and affiliates, as applicable, shall be entitled to institute and prosecute proceedings in any court of competent jurisdiction
for specific performance and injunctive and other equitable relief to prevent the breach or any threatened breach thereof without
bond or other security or a showing of irreparable harm or lack of an adequate remedy at law. The Company and Executive further
acknowledge that the time, scope, geographic area and other provisions of Sections 6 and 7 have been specifically negotiated
by sophisticated commercial parties and agree that they consider the restrictions and covenants contained in Sections 6 and
7 to be reasonable and necessary for the protection of the interests of the Company and its subsidiaries and affiliates, but
if any such restriction or covenant shall be held by any court of competent jurisdiction to be void but would be valid if deleted
in part or reduced in application, such restriction or covenant shall apply in such jurisdiction with such deletion or modification
as may be necessary to make it valid and enforceable. Executive acknowledges and agrees that the restrictions and covenants contained
in Sections 6 and 7 shall be construed for all purposes to be separate and independent from any other covenant, whether
in this Agreement or otherwise, and shall each be capable of being reduced in application or severed without prejudice to the other
restrictions and covenants or to the remaining provisions of this Agreement. The existence of any claim or cause of action by Executive
against the Company or any of its subsidiaries and affiliates, whether predicated upon this Agreement or otherwise, shall not excuse
Executive’s breach of any covenant, agreement or obligation contained in Section 6 or Section 7 and shall not
constitute a defense to the enforcement by the Company or any of its subsidiaries of such covenant, agreement or obligation.

 

8.       Indemnification.
The Company shall represent, indemnify and hold the Executive harmless from and against any claim, demand, obligation, losses,
costs, expenses (including reasonable attorney’s fees), judgments, settlements and damages arising from or relating to services
rendered by the Executive for the Company or his relationship with the Company, to the fullest extent permitted by law; provided,
however, that the Company shall not indemnify the Executive for any losses incurred by the Executive as a result of or in
connection with (a) acts or omissions described in Section 5(f), or (b) a cause of action by the Executive against the Company
or its affiliates or their respective directors, officers, agents, representatives or employees unless the Executive is pursuing
his rights under this Section 8. If the Executive has any knowledge of any actual or threatened action, suit or proceeding, whether
civil, criminal, administrative or investigative, as to which the Executive may request indemnity under this provision, the Executive
shall give the Company prompt written notice thereof. The Company shall be entitled to assume the defense of any such proceeding,
and the Executive shall cooperate with such defense. The benefits set forth in this Section 8 shall be in addition to and not in
lieu of any rights that the Executive may have under any insurance policy, including any D&O policy, maintained by the Company.
This Section 8 shall survive the expiration of the Term, and shall also continue to apply in the event that Executive’s employment
converts to an at-will employment relationship pursuant to the terms of Section 1.

 

    	 	12	 

     

    

 

9.       Section
409A of the Code.

 

(a)       It
is intended that the provisions of this Agreement comply with Section 409A of Code and the regulations and guidance promulgated
thereunder (collectively “Code Section 409A”), and all provisions of this Agreement shall be construed in a
manner consistent with the requirements for avoiding taxes or penalties under Code Section 409A. If any provision of this Agreement
(or of any award of compensation, including equity compensation or benefits) would cause the Executive to incur any additional
tax or interest under Code Section 409A, the Company shall, upon the specific request of the Executive, use its reasonable business
efforts to in good faith reform such provision to comply with Code Section 409A; provided, that to the maximum extent practicable,
the original intent and economic benefit to the Executive and the Company of the applicable provision shall be maintained, but
the Company shall have no obligation to make any changes that could create any additional economic cost or loss of benefit to the
Company. Notwithstanding the foregoing, the Company shall have no liability with regard to any failure to comply with Code Section
409A so long as it has acted in good faith with regard to compliance therewith.

 

(b)       A
termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the
payment of any amounts or benefits upon or following a termination of employment unless such termination is also a “Separation
from Service” within the meaning of Section 409A and, for purposes of any such provision of this Agreement, references to
a “resignation,” “termination,” “termination of employment” or like terms shall mean Separation
from Service. Any provision of this Agreement to the contrary notwithstanding, if at the time of the Executive’s Separation
from Service, the Company determines that the Executive is a “Specified Employee,” within the meaning of Code Section
409A, based on an identification date of December 31, then to the extent any payment or benefit that the Executive becomes entitled
to under this Agreement on account of such separation from service would be considered nonqualified deferred compensation under
Code Section 409A, such payment or benefit shall be paid or provided at the date which is the earlier of (i) six (6) months and
one day after such separation from service, and (ii) the date of the Executive’s death (the “Delay Period”).
Within five days of the end of the Delay Period, all payments and benefits delayed pursuant to this Section 10(b) (whether they
would have otherwise been payable in a single sum or in installments in the absence of such delay) shall be paid or provided to
the Executive in a lump-sum, and any remaining payments and benefits due under this Agreement shall be paid or provided in accordance
with the normal payment dates specified for them herein.

 

(c)       With
regard to any provision herein that provides for reimbursement of costs and expenses or in-kind benefits, except as permitted by
Code Section 409A, (i) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another
benefit, (ii) the amount of expenses eligible for reimbursement, or in-kind benefits, provided during any taxable year shall not
affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year, provided
that the foregoing clause (ii) shall not be violated with regard to expenses reimbursed under any arrangement covered by Section 105(b)
of the Code solely because such expenses are subject to a limit related to the period the arrangement is in effect and (iii) such
payments shall be made on or before the last day of the Executive’s taxable year following the taxable year in which the
expense was incurred.

 

    	 	13	 

     

    

 

(d)       Each
payment made under this Agreement shall be designated as a “separate payment” within the meaning of Code Section 409A.

 

10.       Section
280G. 

 

(a)       Notwithstanding
anything to the contrary contained herein, in the event that any payment by the Company to you or for your benefit, whether paid
or payable, would be subject to the excise tax imposed by Section 4999 of the U.S. Internal Revenue Code (the “Code”)
or any comparable federal, state, or local excise tax (such excise tax, together with any interest and penalties, are hereinafter
collectively referred to as the “Excise Tax”), then the Executive shall receive either the full payment amount or a
lesser amount that does not trigger an Excise Tax, whichever produces a greater after-tax benefit to the Executive, as determined
by an independent accounting firm, paid for by the Company, which firm will take into consideration, in good faith, all available
exemptions, including a fair valuation of reasonable compensation for services rendered by you. If a payment intended to be provided
under this Agreement is required to be reduced pursuant to this Section, the payments shall be reduced in the following order of
priority: reduction of payments that do not constitute non-qualified deferred compensation; reduction of deferred cash payments
subject to Section 409A of the Code; cancellation of accelerated vesting of stock awards; reduction of employee benefits. In the
event that acceleration of vesting of stock award compensation is to be reduced, such acceleration of vesting shall be cancelled
in the reverse order of the date of grant of the Company’s stock awards.

 

(b)       The
Executive will be entitled to reimbursement of reasonable and documented legal, accounting and other professional fees incurred
by him relating to the Executive’s compensation or payments under this Agreement, or any other agreement between the Executive
and the company, in connection with a change in control, subject to a maximum payment of $50,000.

 

11.       Miscellaneous.

 

(a)       This
Agreement shall be deemed to be a contract made under the laws of the State of New York and for all purposes shall be construed
in accordance with those laws. Subject to Section 11(b), the Company and the Executive unconditionally consent to submit to the
exclusive jurisdiction of the New York State Supreme Court, County of New York or the United States District Court for the Southern
District of New York for any actions, suits or proceedings arising out of or relating to this Agreement and the transactions contemplated
hereby (and agree not to commence any action, suit or proceeding relating thereto except in such courts).

 

(b)       Except
for injunctive or other equitable relief or as otherwise provided in this Agreement, any and all legal proceedings arising out
of or relating to this Agreement, whether sounding in contract, tort or statute, shall be resolved by binding arbitration in New
York, New York, before an arbitrator independent of the parties and selected in accordance with, and the arbitration shall be administered
by JAMS pursuant to, JAMS’ Comprehensive Arbitration Rules and Procedures excluding its optional Arbitration Appeal procedures;
provided, however, that any arbitrator designated pursuant to this Section 11(b) shall be a lawyer experienced in employment disputes.

 

    	 	14	 

     

    

 

(c)       The
Executive may not delegate his duties or assign his rights hereunder. The Company shall assign its rights and obligations under
this Agreement in connection with a merger or consolidation in which the Company is not the continuing entity, or a sale, liquidation
or other disposition of all or substantially all of the assets of the Company, provided that the assignee expressly assumes
the liabilities, obligations and duties of the Company under this Agreement. In the event of any such assignment, the term “Company”
shall include the Company’s successor or assign. This Agreement shall inure to the benefit of, and be binding upon, the parties
hereto and their respective heirs, legal representatives, and permitted successors and assigns.

 

(d)       The
invalidity or unenforceability of any provision hereof shall not in any way affect the validity or enforceability of any other
provision. This Agreement reflects the entire understanding between the parties.

 

(e)       This
Agreement represents the entire understanding of the Executive and the Company with respect to the employment of the Executive
by the Company and contain all of the covenants and agreements between the parties with respect to such employment. Any modification
or termination of this Agreement will be effective only if it is in writing signed by the party to be charged.

 

(f)       This
Agreement may be executed by the parties in one or more counterparts, each of which shall be deemed to be an original but all of
which taken together shall constitute one and the same agreement, and shall become effective when one or more counterparts has
been signed by each of the parties hereto and delivered to each of the other parties hereto.

 

(g)       All
amounts payable hereunder shall be subject to the withholding of all applicable taxes and deductions required by any applicable
law.

 

12.       Notices.
All notices relating to this Agreement shall be in writing and shall be either personally delivered, sent by telecopy (receipt
confirmed) or mailed by certified mail, return receipt requested, to be delivered at such address as is indicated below, or at
such other address or to the attention of such other person as the recipient has specified by prior written notice to the sending
party. Notice shall be effective when so personally delivered, one business day after being sent by telecopy or five days after
being mailed.

 

To the Company:

 

Centric Brands Inc.

c/o Tengram Capital Partners, L.P.

602 West 26th Street

New York, NY 10001

Attention: Andrew R. Tarshis

 

    	 	15	 

     

    

 

To the Executive:

 

Anurup S. Pruthi, at the address
on file with the Company

 

with copy to:

 

Outten & Golden LLP

685 Third Ave., 25th
Floor

New York, NY 10022

Attention: Wendi S. Lazar

[signature pages follows]

 

    	 	16	 

     

    

 

IN WITNESS WHEREOF, the parties hereto have
entered into this Agreement as of October 30, 2018.

 

	CENTRIC BRANDS INC.	 	EXECUTIVE	 
	 	 	 	 	 
	By: 	/s/ Lori Nembirkow	 	/s/ Anurup S.
    Pruthi	 
	Name:	Lori Nembirkow	 	Anurup S. Pruthi	 
	Title:	Secretary	 	 	 

  

    	 	17	 

     

    

 

EXHIBIT A

 

EXECUTIVE RELEASE AND COVENANT NOT TO
SUE

 

Except as otherwise provided herein, in consideration of
the severance payments and/or benefits I am eligible to receive pursuant to the employment agreement between Centric Brands
Inc., a Delaware corporation (the “Company”), and me, dated October __, 2018 (the “Employment
Agreement”), I, Anurup S. Pruthi, on behalf of myself, and on behalf of my heirs, successors and assigns, hereby
knowingly and voluntarily release and discharge, to the fullest extent permitted by law, the Company, and all of their
respective past and present subsidiaries, affiliates, predecessors, successors and assigns (“Company Entities”)
and, with respect to each and all of the Company Entities, all of their respective directors, officers, employees, agents,
each individually and in their representative capacities (“Company Entity Officials”) (Company Entities and
Company Entity Officials collectively referred to herein as “Released Parties”) from any and all claims, demands,
agreements, obligations, expenses, actions, judgments and liabilities of any kind whatsoever, in law, equity or otherwise,
whether known or unknown, suspected or claimed, specifically mentioned herein or not, which I had, have or may have against
any of the Released Parties by reason of any actual or alleged act, event, occurrence, omission, practice or other matter
whatsoever from the beginning of time up to and including the date that I sign this Separation and General Release Agreement
(this “Claims”), including that but not limited to Claims arising out of or in any way relating to: (i) my
employment with any and all of the Company Entities, including the termination of that employment; (ii) any common law,
public policy, company policy, contract (whether oral or written, express or implied) or tort law having any
bearing whatsoever on the terms and conditions of my employment; and/or (iii) any federal, state or local law, ordinance or
regulation including, but not limited to, the following (each as amended, if applicable): Age Discrimination in Employment
Act (including Older Workers Benefit Protection Act); Americans with Disabilities Act; Civil Rights Act of 1866; Civil Rights
Act of 1991; Equal Pay Act; Family and Medical Leave Act of 1993; National Labor Relations Act; Title VII of the Civil Rights
Act of 1964; Worker Adjustment and Retraining Notification Act; New York State and New York City Human Rights Laws; New York
State Labor Law; New York State Worker Adjustment and Retraining Notification Act; and any other law, ordinance or regulation
regarding discrimination or harassment or terms or conditions of employment. In addition, notwithstanding the foregoing, my
release of claims against Company Entity Officials shall be limited to claims relating to my employment with the Company.

 

I agree that I have entered into this Release as a compromise
and in full and final settlement of all Claims, if any, that I have or may have against any and all of the Released Parties up
to and including the date that I sign this Release (except as otherwise expressly set forth below). I also agree that, although
I may hereafter discover Claims presently unknown or unsuspected, or new or additional facts from those which I now knows or believe
to be true, I intend to provide a complete waiver of all Claims based on any facts and circumstances, whether known or unknown,
up to and including the date that I sign this Agreement (except as otherwise expressly set forth below).

 

    	 	18	 

     

    

 

However, notwithstanding the foregoing, I am not releasing,
and for the avoidance of doubt Claims do not include, my rights, if any, (i) to representation and indemnification by the Company
or any of its affiliates, however arising, to the maximum extent permitted by law, for all claims or proceedings, or threatened
claims or proceedings, arising out of or relating to my service as an officer, director or employee, as the case may be, of the
Company or any of its subsidiaries, (ii) to payment of any authorized but unreimbursed business expenses incurred prior to the
termination of my employment with the Company or any of its subsidiaries in accordance with Section 4(e) of my Employment Agreement,
(iii) under any employee pension or welfare plan or program in which I participate or participated, (iv) to receive payments, severance
and benefits under the Employment Agreement, (v) to be represented and indemnified pursuant to Section 8 of the Employment Agreement
or pursuant to other agreements to which I may be entitled to indemnification, (vi) to my right to elect health continuation coverage
under “COBRA” (or its state-law equivalent) and (vii) to any equity awards I have received prior to the date of termination
of my employment, including any Inducement RSUs. Furthermore, I am not releasing any rights or claims that may arise after the
date on which I sign this Release or that cannot be released by a private settlement agreement (such as statutory claims for worker’s
compensation/disability insurance benefits and unemployment compensation).

 

I represent that I have not assigned or transferred my rights
with respect to any Claims covered by this Release and that I have not filed, directly or indirectly any legal proceeding against
the Released Parties regarding any such Claims. If I commence (or commenced) or participate in any action or proceeding (including
as a member of a class of persons) regarding Claims covered by this Release, I acknowledge and agree that this Release shall be
a complete defense in such action or proceeding and, to the maximum extent permitted by law, I and my heirs, successors and assigns
will have no right to obtain or receive, and will not seek or accept, any damages, settlement or relief of any kind (including
attorneys’ fees and costs) as a result of such action or proceeding.

 

In addition, I acknowledge and agree that I am and will continue
to be bound by the terms and conditions set forth in the Employment Agreement (including the restrictive covenants) (the “Continuing
Obligations”),all of which continue to remain in full force and effect for the periods set forth therein notwithstanding
the termination of my employment and are hereby incorporated herein by reference.

 

In further consideration of the payment and/or benefits I am
eligible to receive pursuant to the Employment Agreement, I agree to reasonably cooperate with the Company Entities, their legal
counsel and designees regarding any current or future claim, investigation (internal or otherwise), inquiry or litigation relating
to any matter with which I was involved or had knowledge or which occurred during my employment, with such assistance including,
but not limited to, meetings and other consultations, signing affidavits and documents that are factually accurate, attending depositions
and providing truthful testimony (in each case, without requiring a subpoena); provided, however, that the Company will reimburse
me for my reasonable expenses (including attorneys’ fees and travel expenses) actually incurred by me in connection with
such cooperation (it being understood that if any such expenses are expected to exceed $5,000, I shall inform the Company prior
to incurring such expenses to provide the Company with an opportunity to either agree to reimburse me for such expenses or advise
me not to provide such cooperation necessitating the incurrence of such expenses).

 

    	 	19	 

     

    

 

I acknowledge and agree that:

 

1. The payment and/or benefits I am receiving under the Employment
Agreement constitute consideration over and above any payments and/or benefits that I might be entitled to receive without executing
this Release.

 

2. The Company advised me to consult with an attorney prior
to executing this Release.

 

3. I was given a period of at least [21]/[45] days within which
to consider this Release and that I must sign and return this Release no later than __________, 201_.

 

4. The Company has advised me of my statutory right to revoke
my acceptance of the terms of this Release at any time within seven (7) days of my signing of this Release.

 

5. I warrant and represent that my decision to accept this Release
was (a) entirely voluntary on my part; (b) not made in reliance on any inducement, promise or representation, whether express or
implied, other than the inducements, representations and promises expressly set forth in the Employment Agreement or in the Release;
and (c) did not result from any threats or other coercive activities to induce acceptance of this Release.

 

In the event I decide to exercise my right to revoke within
seven (7) days of my acceptance of this Release, I warrant and represent that I will do the following: (1) notify the Company in
writing of my intent to revoke my agreement, and (2) simultaneously return in full the consideration, if any, received from the
Company Entities pursuant to the Employment Agreement and which consideration was expressly subject to my signing this Release.

 

Upon its effectiveness, this Release, the Employment Agreement
and the Continuing Obligations, together with any applicable equity award agreements and equity plans, contains the entire agreement
and understanding of the parties relating to the subject matter hereof and supersedes and replaces all prior and contemporaneous
agreements, representations and understandings (whether oral or written) regarding the subject matter hereof. Once executed by
me, this Release may be modified only in a document signed by me and the Company and referring specifically hereto, and no handwritten
changes to this Release will be binding unless initialed by me and the Company. If any portion of this Release is held to be unenforceable
by any court of competent jurisdiction, the parties intend that such portion be modified to make it enforceable to the maximum
extent permitted by law. If any such portion (other than the general release provisions) cannot be modified to be enforceable,
such portion shall become null and void leaving the remainder of this Release in full force and effect.

 

This Release shall be binding upon and inure to the benefit
of (i) the Released Parties, including the successors and assigns of the Released Parties, all of which are intended third-party
beneficiaries, and (ii) me and my heirs, successors and assigns. This Release is not an admission of liability or wrongdoing by
any of the Released Parties, and such wrongdoing or liability is expressly denied.

 

    	 	20	 

     

    

 

I further warrant and represent that I fully understand and
appreciate the consequence of my signing this Release and that I am signing it voluntarily.

 

IN WITNESS WHEREOF, the parties hereto have entered into this
Release as of _________, 20__.

 

	 
	Anurup S. Pruthi
	 	 
	 	 
	Centric Brands Inc.
	 	 
	By: 	                 
	Name:  	 
	Title: 	 

    	 	21

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