<SEC-DOCUMENT>0001144204-17-004017.txt : 20170126
<SEC-HEADER>0001144204-17-004017.hdr.sgml : 20170126
<ACCEPTANCE-DATETIME>20170126161815
ACCESSION NUMBER:		0001144204-17-004017
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20170124
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20170126
DATE AS OF CHANGE:		20170126

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			XCel Brands, Inc.
		CENTRAL INDEX KEY:			0001083220
		STANDARD INDUSTRIAL CLASSIFICATION:	PATENT OWNERS & LESSORS [6794]
		IRS NUMBER:				760307819
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-37527
		FILM NUMBER:		17549924

	BUSINESS ADDRESS:	
		STREET 1:		475 10TH AVENUE
		STREET 2:		4TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10018
		BUSINESS PHONE:		(347) 727-2474

	MAIL ADDRESS:	
		STREET 1:		475 10TH AVENUE
		STREET 2:		4TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10018

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	NETFABRIC HOLDINGS, INC
		DATE OF NAME CHANGE:	20050516

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	HOUSTON OPERATING CO
		DATE OF NAME CHANGE:	19990402
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>v457605_8-k.htm
<DESCRIPTION>FORM 8-K
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<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNITED STATES </B></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>WASHINGTON, DC 20549 </B></P>
<P STYLE="margin: 0">&nbsp;</P>

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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FORM 8-K </B></P>
<P STYLE="margin: 0">&nbsp;</P>

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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CURRENT REPORT </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Pursuant to Section&nbsp;13 or 15 (d)
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>of The Securities Exchange Act of 1934</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Date of Report (Date of earliest event
reported):&nbsp; January 24, 2017</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 24pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>XCEL BRANDS, INC. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Exact name of registrant as specified
in its charter) </B></P>
<P STYLE="margin: 0">&nbsp;</P>

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    <TD STYLE="text-align: center; width: 34%"><FONT STYLE="font-size: 10pt"><B>Delaware</B></FONT></TD>
    <TD STYLE="text-align: center; width: 32%"><FONT STYLE="font-size: 10pt"><B>001-37527</B></FONT></TD>
    <TD STYLE="text-align: center; width: 34%"><FONT STYLE="font-size: 10pt"><B>76-0307819</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt"><B>(State or Other Jurisdiction of Incorporation)</B></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt"><B>(Commission File Number)</B></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt"><B>(IRS Employer Identification No.)</B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TR>
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 50%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt"><B>1333 Broadway, New York, New York</B></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt"><B>10018</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt"><B>(Address of Principal Executive Offices)</B></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt"><B>(Zip Code)</B></FONT></TD></TR>
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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Registrant&rsquo;s telephone number,
including area code&nbsp;(347) 727-2474</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Not Applicable</B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Former Name or Former Address, if Changed
Since Last Report) </B></P>
<P STYLE="margin: 0">&nbsp;</P>

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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( <I>see</I> General Instruction
A.2. below):</P>

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<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD><TD STYLE="text-align: justify">Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425)</TD>
</TR></TABLE>

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<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD><TD STYLE="text-align: justify">Soliciting material pursuant to Rule 14a-12 under the
Exchange Act (17 CFR 240.14a-12)</TD>
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<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD><TD STYLE="text-align: justify">Pre-commencement communications pursuant to Rule 14d-2(b)
under the Exchange Act (17 CFR 240.14d-2(b))</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD><TD STYLE="text-align: justify">Pre-commencement communications pursuant to Rule 13e-4(c)
under the Exchange Act (17 CFR 240.13e-4(c))</TD>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 10%"><B>Item 1.01</B></TD>
    <TD STYLE="width: 90%; text-align: justify"><B>Entry into a Material Definitive Agreement</B></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 10%"><B>Item 5.02</B></TD>
    <TD STYLE="width: 90%; text-align: justify"><B>Departure of Directors or Certain Officers; Election of Directors, Appointment of Certain Officers; Compensatory Arrangements of Certain Officers</B></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On January 24, 2017, and effective as of
January 1, 2017, Xcel Brands, Inc. (the &ldquo;Company&rdquo;) entered into a three-year employment agreement with Giuseppe Falco
for him to serve as our Chief Merchant and President. Following the initial three-year term, the employment agreement will be automatically
renewed for a two-year term thereafter unless either party gives written notice of intent to terminate at least 30 days prior to
the expiration of the then current term. Under the employment agreement, Mr. Falco&rsquo;s annual base salary shall be $550,000
for 2017, $625,000 for 2018 and $700,000 for 2019 and any renewal year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Mr. Falco is eligible to receive a cash
bonus of up to $450,000 for 2017, $375,000 for 2018 and $300,000 for 2019 and any renewal year (the &ldquo;Maximum Cash Bonus)
based upon targets (the &ldquo;Cash Bonus Targets&rdquo;) established by the Company&rsquo;s Compensation Committee each year for
Adjusted EBITDA (as defined below) and payable as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="width: 60%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="width: 47%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; vertical-align: bottom">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Annual Level of Adjusted EBITDA</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Achieved for each fiscal year ending</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">December 31, 2017 and thereafter</P></TD>
    <TD NOWRAP STYLE="width: 6%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 47%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; vertical-align: bottom">Percentage of<BR>
Maximum Cash Bonus</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 12pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">90% and above</TD>
    <TD STYLE="padding-top: 12pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-top: 12pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">100%</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">70% - 90%</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">50%</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Less than 70%</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">0%</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&ldquo;Adjusted EBITDA&rdquo; shall mean
for any period, for the Company and its subsidiaries on a consolidated basis (without duplication), an amount equal to (a) consolidated
net income (as determined in accordance with generally accepted accounting principles of the United States as in effect from time
to time) (&ldquo;Consolidated Net Income&rdquo;) for such period, minus, (b) to the extent included in calculating Consolidated
Net Income, the sum of, without duplication, (i) income tax credits for such period, and (ii) gain from extraordinary or non-recurring
items for such period (including, without limitation, non-cash items related to purchase accounting), plus (c) the following to
the extent deducted in calculating such Consolidated Net Income, (i) interest expense and other finance costs (whether cash or
non-cash) for such period (ii) the provision for federal, state, local and foreign income taxes for such period, (iii) the amount
of depreciation and amortization expense for such period, (iv) all other extraordinary or non-recurring non-cash charges (including,
without limitation, non-cash items related to purchase accounting and non-cash items related to earn-outs) and (v) non-cash stock
or equity compensation in such period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Mr. Falco was awarded an option (the &ldquo;Option&rdquo;)
to purchase 500,000 shares of common stock at an exercise price of $5.00 per share. The Option vest as to 100,000 shares on each
of January 1, 2018, 2019, 2020, 2021 and 2022, provided that Mr. Falco remains an employee of the Company or is otherwise providing
services to the Company on such date, and expire as to each 100,000 shares on the five year anniversary of the respective vesting
date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Non-Competition and Non-Solicitation
</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the term of his employment by the
Company and for a one-year period after the termination of such employment, Mr. Falco may not permit his name to be used by or
participate in any business or enterprise (other than the mere passive ownership of not more than 5% of the outstanding stock of
any class of a publicly held corporation whose stock is traded on a national securities exchange or in the over-the-counter market)
that engages or proposes to engage in the Company&rsquo;s business in the United States, its territories and possessions and any
foreign country in which we do business as of the date of termination of his employment. Also, during his employment and for a
one-year period after the termination of such employment, Mr. Falco may not, directly or indirectly, solicit, induce or attempt
to induce any customer, supplier, licensee, or other business relation of the Company or any of its subsidiaries to cease doing
business with the Company or any of its subsidiaries; or solicit, induce or attempt to induce any person who is, or was during
the then-most recent 12-month period, a corporate officer, general manager or other employee of the Company or any of its subsidiaries,
to terminate such employee&rsquo;s employment with the Company or any of its subsidiaries; or hire any such person unless such
person&rsquo;s employment was terminated by the Company or any of its subsidiaries; or in any way interfere with the relationship
between any such customer, supplier, licensee, employee or business relation and the Company or any of its subsidiaries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; margin-left: 0in; text-indent: 0in; text-align: justify">If
Mr. Falco&rsquo;s employment is terminated by the Company without cause, or if he resigns with good reason (as defined in the
agreement), then Mr. Falco will be entitled to receive his unpaid base salary and cash bonuses through the termination date and
a lump sum payment equal to his base salary in effect for a period of six months, payable on the six month anniversary of the
date of separation of services and the Option shall remain exercisable as to those shares as to which the Option previously vested
and shall become exercisable as to any unvested shares immediately following such transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; margin-left: 0in; text-indent: 0in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; margin-left: 0in; text-indent: 0in; text-align: justify">In
the event Mr. Falco&rsquo;s employment is terminated within 12 months following a change of control by the Company without cause
or by the executive with good reason, the executive would be entitled to a lump sum payment equal to his base salary in effect
on the termination date for six months following such termination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; margin-left: 0in; text-indent: 0in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; margin-left: 0in; text-indent: 0in; text-align: justify">&ldquo;Change
of control,&rdquo; is defined to mean (i) a merger or consolidation to which the Company is a party (other than one in which the
stockholder of the Company prior to the event own a monopoly of the voting power of the surviving or resulting corporation, (ii)
a sale, lease or other transfer, exclusive license or other disposition of all or substantially all of the assets of the Company
or (iii) a sale or transfer by the Company&rsquo;s stockholders of voting control, in a single transaction or a series of transactions.
Upon a change of control, notwithstanding the vesting and exercisability schedule in any stock option or other grant agreement
between Mr. Falco and the Company, all unvested stock options, shares of restricted stock and other equity awards granted by the
Company to Mr. Falco pursuant to any such agreement shall immediately vest, and all such stock options shall become exercisable
and remain exercisable for the lesser of 180 days after the date the change of control occurs or the remaining term of the applicable
option.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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    <TD STYLE="width: 10%"><FONT STYLE="font-size: 10pt"><B>Item 9.01</B></FONT></TD>
    <TD STYLE="width: 90%; text-align: justify"><FONT STYLE="font-size: 10pt"><B>Financial Statements and Exhibits. </B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">(d)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Exhibits.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD NOWRAP STYLE="vertical-align: top; width: 10%"><FONT STYLE="font-size: 10pt">No. 10.1</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify; width: 90%"><FONT STYLE="font-size: 10pt">Employment Agreement dated January 24, 2017, effective January 1, 1017 between the Company and Giuseppe Falco.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.75pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.75pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.75pt">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.75pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.75pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SIGNATURES </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; margin-left: 0in; text-indent: 0in; text-align: justify">Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.</P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TR STYLE="vertical-align: top">
    <TD COLSPAN="3" STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt"><B>XCEL BRANDS, INC.</B> (Registrant)</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">By:</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; border-bottom: black 1pt solid"><FONT STYLE="font-size: 10pt">/s/ James F. Haran</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; width: 3%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 5%"><FONT STYLE="font-size: 10pt">Name:</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 42%"><FONT STYLE="font-size: 10pt">James F. Haran</FONT></TD>
    <TD STYLE="vertical-align: top; width: 50%">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt">Title:</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">Chief Financial Officer</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Date: January 26, 2017</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<TYPE>EX-10.1
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<FILENAME>v457605_ex10-1.htm
<DESCRIPTION>EXHIBIT 10.1
<TEXT>
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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0; text-align: right"><B>Exhibit 10.1</B></P>

<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>EMPLOYMENT AGREEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">THIS EMPLOYMENT AGREEMENT
(this &ldquo;<I>Agreement</I>&rdquo;) is made as of January 24, 2017, by and between Xcel Brands, Inc. a Delaware corporation (the
&ldquo;<I>Company</I>&rdquo;), and Giuseppe Falco (the &ldquo;<I>Executive</I>&rdquo;), each a &ldquo;<I>Party</I>&rdquo; and collectively
the &ldquo;Parties.&rdquo; This Agreement supersedes and replaces that certain Second Amended and Restated Employment Agreement
dated as of October 1, 2014 by and between the Company and the Executive (the &ldquo;<I>Prior Agreement</I>&rdquo;). Unless otherwise
indicated, capitalized terms used herein are defined in Section 2.1 of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, the Company
has determined that it is in the best interests of the Company and its shareholders to enter into an employment agreement with
the Executive and the Executive is willing to serve as an employee of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">NOW, THEREFORE, in
consideration of the mutual covenants and agreements set forth herein, it is agreed by and between the Executive and the Company
as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ARTICLE I</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>EMPLOYMENT TERMS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employment.&nbsp;&nbsp;The
Company will employ the Executive, and the Executive accepts employment with the Company, upon the terms and conditions set forth
in this Agreement for the period beginning on the Effective Date and ending as provided in Section 1.4(a) hereof (the &ldquo;<I>Employment
Period</I>&rdquo;).&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Position
and Duties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Generally.&nbsp;&nbsp;The
Executive shall serve as the Chief Merchant of the Company and Brand President and in such capacity shall be responsible for the
general management and merchandising of the Company&rsquo;s brands, shall perform such duties as are customarily performed by an
officer with similar title and responsibilities of a company of a similar size and shall have such power and authority as shall
reasonably be required to enable him to perform his duties hereunder; provided, however, that in exercising such power and authority
and performing such duties, he shall at all times be subject to the authority, control and direction of the Chairman and Chief
Executive Officer of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Duties
and Responsibilities.&nbsp;&nbsp;The Executive shall report directly to the Chairman and Chief Executive Officer of the Company
and shall devote his full business time and attention to the business and affairs of the Company and its Subsidiaries.&nbsp;&nbsp;The
Executive shall have such duties, responsibility and authority as are customary and consistent with his position.&nbsp;&nbsp;The
Executive shall perform his duties and responsibilities in a diligent, trustworthy, businesslike and efficient manner and shall
use his best efforts during the Employment Period to protect, encourage and promote the best interests of the Company and its stockholders.&nbsp;&nbsp;The
Executive shall not engage in any other business activities that could reasonably be expected to conflict with the Executive&rsquo;s
duties, responsibilities and obligations hereunder. Notwithstanding the foregoing, nothing&nbsp;herein shall prohibit Executive
from (i) serving on corporate, civic or charitable boards or&nbsp;committees, (ii) delivering lectures or fulfilling speaking engagements
and (iii) managing&nbsp;personal investments, so long as such activities do not materially interfere with the performance&nbsp;of
Executive&rsquo;s responsibilities hereunder.&nbsp;&nbsp;During the Employment Period, the Executive shall promptly bring to the
Company or its Subsidiaries, as applicable, all investment or business opportunities relating to the Business of which the Executive
becomes aware.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Principal
Office.&nbsp;&nbsp;The principal place of performance by the Executive of his duties hereunder shall be the Company&rsquo;s principal
executive offices in the New York Metropolitan area, although the Executive may be required to travel outside of the area where
the Company&rsquo;s principal executive offices are located in connection with the performance of Executive&rsquo;s duties for
the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">1.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Compensation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Base
Salary.&nbsp;&nbsp;The Executive&rsquo;s base salary during the Employment Period shall be (i) $415,600 per annum for the period
from October 1, 2016 through December 31, 2016, (ii) $550,000, $625,000 and $700,000 per annum for the calendar years ending December
31, 2017, 2018 and 2019, respectively, and (iii) $700,000 for each calendar year during the Reward Period (defined below) (the
&ldquo;<I>Base Salary</I>&rdquo;). The Base Salary will be payable to the Executive by the Company in regular installments in accordance
with the Company&rsquo;s general payroll practices.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash
Bonus. For the fiscal year ending December 31, 2016, the Executive shall be entitled to receive a cash bonus of up to $75,000 in
accordance with Section 1.3(b) of the Prior Agreement. For the Company&rsquo;s fiscal years ending December 31, 2017 and thereafter,
Executive shall be eligible for an aggregate cash bonus (&ldquo;<I>Cash Bonus</I>&rdquo;) of up to: (i) $450,000 for the fiscal
year ending December 31, 2017, (ii) $375,000 for the fiscal year ending December 31, 2018 and (iii) $300,000 for the fiscal year
ending December 31, 2019 and each fiscal year during the Renewal Period, in each case, based upon targets established by the Company&rsquo;s
compensation committee and ratified by the Board of Directors each year for Adjusted EBITDA (each, a &ldquo;<I>Cash Bonus Target</I>&rdquo;).
The Cash Bonus may be payable to Executive with respect to the Cash Bonus Target for a fiscal year as follows: (a) 50% of the Cash
Bonus for such fiscal year shall be paid to the Executive if the Company achieves at least 70% of such Cash Bonus Target for such
fiscal year but less than 90% of the Cash Bonus Target for such fiscal year and (b) 100% of the portion of the Cash Bonus attributable
to the Cash Bonus Target for such fiscal year shall be paid to the Executive if the Company achieves at least 90% of such Cash
Bonus Target for such fiscal year. The Cash Bonus shall be awarded to the Executive on the date that is the earlier of (a) the
90th day following the end of the fiscal year to which the Cash Bonus relates and (ii) the first business day following the date
the Company&rsquo;s annual report on Form 10-K for the fiscal year to which the Cash Bonus relates is filed with the Securities
and Exchange Commission. Notwithstanding the foregoing, all payments of Cash Bonuses shall be made on a date that allows such payments
to comply with the requirements of Section 409A of the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>Adjusted
EBITDA</I>&rdquo; shall mean for any period, for the Company and its subsidiaries on a consolidated basis (without duplication),
an amount equal to (a) consolidated net income (as determined in accordance with generally accepted accounting principles of the
United States of America as in effect from time to time) (&ldquo;<I>Consolidated Net Income</I>&rdquo;) for such period, minus,
(b) to the extent included in calculating Consolidated Net Income, the sum of, without duplication, (i) income tax credits for
such period, and (ii) gain from extraordinary or non-recurring items for such period (including, without limitation, non-cash items
related to purchase accounting), plus (c) the following to the extent deducted in calculating such Consolidated Net Income, (i)
interest expense and other finance costs (whether cash or non-cash) for such period (ii) the provision for federal, state, local
and foreign income taxes for such period, (iii) the amount of depreciation and amortization expense for such period, (iv) all other
extraordinary or non-recurring non-cash charges (including, without limitation, non-cash items related to purchase accounting and
non-cash items related to earn-outs) and (v) non-cash stock or equity compensation in such period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Withholding.&nbsp;&nbsp;All
payments made under this Agreement (including Base Salary, Cash Bonuses, and other amounts) shall be subject to withholding for
income taxes, payroll taxes and other legally required deductions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expenses.&nbsp;&nbsp;The
Company will reimburse the Executive for all reasonable expenses incurred by him in the course of performing his duties under this
Agreement that are consistent with the Company&rsquo;s policies in effect at that time with respect to travel, entertainment and
other business expenses, subject to the Company&rsquo;s requirements with respect to reporting and documentation of such expenses.
All expense reimbursement payments pursuant to this Section 1.3(d) shall be made within thirty (30) days after the date that the
Executive notifies the Company of such expense; provided, however, that the Executive shall notify the Company of such expenses
no later than six (6) months after the end of the calendar year in which such expenses were incurred.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vacation;
Holiday Pay and Sick Leave.&nbsp;&nbsp;The Executive shall be entitled to four (4) weeks&rsquo; paid vacation in each calendar
year, which if not taken during any year may be carried forward to any subsequent year.&nbsp;&nbsp;Executive shall receive holiday
pay and paid sick leave as provided to other executive employees of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional
Benefits.&nbsp;&nbsp;During the Employment Period, the Executive shall be entitled to participate (for himself and, as applicable,
his dependents) in the group medical, life, 401(k) and other insurance programs, employee benefit plans and perquisites which may
be adopted by the Board, or the compensation committee of the Board, from time to time, for participation by the Company&rsquo;s
senior management or executives, as well as dental, life and disability insurance coverage, with payment of, or reimbursement for,
such insurance premiums by the Company, subject to, in all cases, the terms and conditions established by the Board with respect
to such plans (collectively, the &ldquo;<I>Benefits</I>&rdquo;); provided, however, that the Board, in its reasonable discretion,
may revise the terms of any Benefits so long as such revision does not have a disproportionately negative impact on the Executive
vis-&agrave;-vis other Company employees, to the extent applicable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indemnification.&nbsp;&nbsp;The
Executive shall be entitled to indemnification by the Company in the same circumstances and to the same extent as the other executive
officers and directors of the Company, which indemnification shall in no event be less favorable to the Executive than the fullest
scope of indemnification permitted by applicable Delaware law (or any such greater scope of indemnification provided by agreement
or by the terms of the Company&rsquo;s Certificate of Incorporation or By-Laws to any executive officer or director of the Company).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock
Options. On January 1, 2017, the Executive shall be granted an option (the &ldquo;Option&rdquo;) to purchase 500,000 shares of
the Company&rsquo;s common stock (the &ldquo;<I>Common Stock</I>&rdquo;) at an exercise price equal to the greater of (i) $5.00
per share and (ii) the last sale price of the Common Stock on the date of this Agreement. The Option shall vest as to 100,000 shares
on each of January 1, 2018, 2019, 2020, 2021 and 2022, provided that the Executive remains an employee of the Company or is otherwise
providing services to the Company on such date and shall expire as to each 100,000 shares on the five (5) year anniversary of the
respective vesting date thereof. The Option shall be granted under and subject to the terms and conditions of the Company&rsquo;s
Third Amended and Restated Equity Incentive Plan (the &ldquo;Plan&rdquo;). The Executive shall have the right to exercise the Option
on a &ldquo;cashless&rdquo; basis to the extent permitted by the Plan, as in effect from time to time, by delivering to the Company
a number of shares of Common Stock equal to the aggregate exercise price of the portion of the Option being exercised divided by
the Fair Market Value (as defined in the Plan) of the Common Stock. Notwithstanding anything to the contrary in the Plan, in the
event that the Executive&rsquo;s employment is terminated by the Company without Cause or by the Executive for Good Reason, the
Option shall (i) remain exercisable as to those shares as to which the Option vested prior to the Termination Date and (ii) become
exercisable immediately following the Termination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;1.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Term
and Termination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Duration.&nbsp;&nbsp;The
Employment Period shall commence on the Effective Date and shall terminate three (3) years from the Effective Date (the &ldquo;<I>Initial
Term</I>&rdquo;), unless earlier terminated by the Company or the Executive as set forth in this Section 1.4.&nbsp;&nbsp;The Term
shall renew automatically for an additional two-year period (the &ldquo;<I>Renewal Period</I>&rdquo;), unless either party gives
the other party written notice of its intention not to renew the Agreement no later than 30 days prior to the expiration of the
then current Term (the &ldquo;<I>Term</I>&rdquo;).&nbsp;&nbsp;The Employment Period shall be terminated prior to the then-applicable
expiration of the Term upon the first to occur of (i) termination of the Executive&rsquo;s employment by the Company for Cause,
(ii) termination of the Executive&rsquo;s employment by the Company without Cause, (iii) the Executive&rsquo;s resignation with
Good Reason, (iv) the Executive&rsquo;s resignation other than for Good Reason or (v) the Executive&rsquo;s death or Disability.&nbsp;&nbsp;The
Executive shall not terminate the Employment Period, with or without Good Reason, unless he gives the Company written notice that
he intends to terminate the Employment Period at least 90 days prior to the Executive&rsquo;s proposed Termination Date.&nbsp;&nbsp;As
a condition to Executive receiving any payments or benefits under Section 1.4(b), the Executive shall execute and deliver to the
Company the General Release in the form attached hereto as Exhibit A.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Severance
Upon Termination Without Cause, Upon Resignation by the Executive For Good Reason or Failure to Renew Term.&nbsp;&nbsp;If the Employment
Period is terminated by the Company without Cause or if the Executive resigns for Good Reason, or if the Company fails to renew
the Term (in which case termination of the Executive&rsquo;s employment shall be effective at the expiration of the then-current
Term), then the Executive will be entitled to receive (1) any unpaid Base Salary through and including the Termination Date and
any other amounts, including any amounts due for&nbsp;&nbsp;Cash Bonus, or other entitlements then due and owing to the Executive
as of the Termination Date; (2) an amount equal to the Executive&rsquo;s Base Salary (at the rate in effect on the date the Executive&rsquo;s
employment is terminated) for a six (6) month period following the Executive&rsquo;s termination of employment as described in
this Section 1.4(b), payable in a lump sum on the date that is six months following the Executive&rsquo;s &ldquo;<I>separation
from service</I>&rdquo; (within the meaning of Section 409A of the Code) occurring in connection with such termination (provided,
however, that an amount that qualifies for involuntary separation pay exception (within the meaning of Code Section 409A and Final
Treasury Regulations Section 1.409A-1(b)(9)(iii)(A)) and is otherwise permissible under Section 409A and the Final Treasury Regulations,
shall not be subject to such six-month delay and shall be paid to Executive in a lump sum within thirty (30) days of the Executive&rsquo;s
&ldquo;<I>separation from service</I>&rdquo;) and (3) continue to participate in the Company&rsquo;s group medical plan on the
same basis as he previously participated or receive payment of, or reimbursement for, COBRA premiums (or, if COBRA coverage is
not available, reimbursement of premiums paid for other medical insurance in an amount not to exceed the COBRA premium) for a six-month
period following the Executive&rsquo;s termination of employment; <I>provided</I> that if the Executive is provided with health
insurance coverage by a successor employer, any such coverage by the Company shall cease (each of (1), (2) and (3) referred to
as the &ldquo;<I>Severance Payment</I>&rdquo;).&nbsp;&nbsp;The Executive also shall be entitled to receive payment for all reimbursable
expenses or other entitlements then due and owing to the Executive as of the Termination Date.&nbsp;&nbsp;If the Executive breaches
his obligations under Section&nbsp;1.5, 1.6, 1.7, 1.8, 1.9, 3.1 or 3.2 of this Agreement, the Company&rsquo;s obligation to make
any Severance Payments and provide any Benefits shall cease as of the date of such breach; provided, that if the Executive cures
such breach within 10 days of receiving written notice from the Company of such breach (which notice the Company shall provide
promptly to the Executive after learning of such breach), the Company shall promptly pay all Severance Payments not made during
such period of dispute and resume making Severance Payments and providing Benefits promptly following such cure.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Severance
upon a Change of Control.&nbsp;&nbsp;Anything contained herein to the contrary notwithstanding, in the event the Executive&rsquo;s
employment hereunder is terminated within twelve (12) months following a Change of Control by the Company without Cause or by the
Executive with Good Reason, the Executive shall be entitled to receive the Severance Payment as described in sub-section (b)(2)
above; provided, however, that if such lump sum Severance Payment, either alone or together with other payments or benefits, either
cash or non-cash, that the Executive has the right to receive from the Company, including, but not limited to, accelerated vesting
or payment of any deferred compensation, options, stock appreciation rights or any benefits payable to the Executive under any
plan for the benefit of employees, would constitute an &ldquo;<I>excess parachute payment</I>&rdquo; (as defined in Section 280G
of the Code), then such lump sum severance payment or other benefit shall be reduced to the largest amount that will not result
in receipt by the Executive of an &ldquo;<I>excess parachute payment</I>.&rdquo; The determination of the amount of the payment
described in this subsection shall be made by the Company&rsquo;s independent auditors at the sole expense of the Company.&nbsp;&nbsp;For
purposes of clarification the value of any options described above will be determined by the Company&rsquo;s independent auditors
using a Black-Scholes valuation methodology.&nbsp;&nbsp;Upon a Change of Control, notwithstanding the vesting and exercisability
schedule in any stock option or other grant agreement between the Company and the Executive (other than the Option which shall
vest as set forth in Section 1.3(h) of this Agreement), all unvested stock options, shares of restricted stock and other equity
awards granted by the Company to the Executive pursuant to any such agreement shall immediately vest, and all such stock options
shall become exercisable and shall remain exercisable for the lesser of 180 days after the date of the Change of Control or the
remaining term of the applicable option.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Death
and Disability.&nbsp;&nbsp;In the event of the death or Disability of the Executive, the Company shall pay the Executive his Base
Salary through the Termination Date, at the rate then in effect, and all expenses or accrued Benefits arising prior to such termination
which are payable to the Executive pursuant to this Agreement through the Termination Date.&nbsp;&nbsp;Executive or his estate
shall also receive the pro-rata portion of the Cash Bonus for the year in which his employment hereunder terminates, calculated
based on the number of months Executive worked during that year (including the month in which the termination occurs). Any other
rights and benefits the Executive may have under employee benefit plans and programs of the Company generally in the event of the
Executive&rsquo;s Disability shall be determined in accordance with the terms of such plans and programs.&nbsp;&nbsp;In the event
of Executive&rsquo;s death, any rights and benefits that the Executive&rsquo;s estate or any other person may have under employee
benefit plans and programs of the Company generally in the event of the Executive&rsquo;s death shall be determined in accordance
with the terms of such plans and programs.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Salary
and Other Payments Through Termination.&nbsp;&nbsp;If the Executive&rsquo;s employment with the Company is terminated during the
Term (i) by the Company for Cause or (ii) by the Executive other than for Good Reason, the Executive will be entitled to receive
his Base Salary through the Termination Date, but will not be entitled to receive any Severance Payments or Benefits after the
Termination Date.&nbsp;&nbsp;The Executive shall be entitled to receive payment for all reimbursable expenses or other entitlements
then due and owing to the Executive as of the Termination Date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
Rights.&nbsp;&nbsp;Except as set forth in this Section 1.4 and Section 1.3, all of the Executive&rsquo;s rights to receive Base
Salary, Benefits and Cash Bonuses hereunder (if any) which accrue or become payable after the termination of the Employment Period
shall cease upon such termination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continuing
Benefits. Notwithstanding Section 1.4(e), termination pursuant to this Section 1.4 shall not modify or affect in any way whatsoever
any vested right of the Executive to benefits payable under any retirement or pension plan or under any other employee benefit
plan of the Company, and all such benefits shall continue, in accordance with, and subject to, the terms and conditions of such
plans, to be payable in full to, or on account of, the Executive after such termination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
Duty of Mitigation.&nbsp;&nbsp;The Executive shall not be required to mitigate the amount of any payment provided for in this Article
I by seeking other employment or otherwise.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">1.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Confidential
Information.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Executive shall not disclose or, directly or indirectly, use at any time, during the Employment Period or thereafter, any Confidential
Information (as defined below) of which the Executive is or becomes aware, whether or not such information is developed by him,
alone or with others, except to the extent that (i) such disclosure or use is required by the Executive&rsquo;s performance of
the duties assigned to the Executive by the Board of Directors, (ii) the Executive is required by subpoena or similar process to
disclose or discuss any Confidential Information, provided, that in such case, the Executive shall promptly inform the Company
in writing of such event, shall cooperate with the Company in attempting to obtain a protective order or to otherwise limit or
restrict such disclosure to the greatest extent possible, and shall disclose only that portion of the Confidential Information
as is strictly required, or (iii) such Confidential Information is or becomes generally known to and available for use by the public,
other than as a result of any action or inaction directly or indirectly by the Executive.&nbsp;&nbsp;At the Company&rsquo;s expense,
the Executive shall take all appropriate steps to safeguard Confidential Information and to protect it against disclosure, misuse,
espionage, loss and theft.&nbsp;&nbsp;The Executive acknowledges that the Confidential Information obtained by him during the course
of his employment with the Company is the sole and exclusive property of the Company and its Subsidiaries, as applicable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Executive understands that the Company and its Subsidiaries will receive from third parties confidential or proprietary information
(&ldquo;<I>Third Party Information</I>&rdquo;) subject to a duty on the part of the Company and its Subsidiaries to maintain the
confidentiality of such information and to use it only for certain limited purposes.&nbsp;&nbsp;During the Employment Period and
in the period specified in such confidentiality agreements, and without in any way limiting the provisions of Section 1.5(a) above,
the Executive will hold Third Party Information in confidence, consistent with the obligations applicable to Confidential Information
of the Company generally, and will not disclose to anyone (other than personnel and agents of the Company or its Subsidiaries who
need to know such information in connection with their work for the Company or its Subsidiaries) or use, except in connection with
his work for the Company or its Subsidiaries, Third Party Information unless expressly authorized by the Board in writing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
used in this Agreement, the term &ldquo;<I>Confidential Information</I>&rdquo; means information that is not generally known to
the public and that is related in any way to the actual or anticipated business of the Company, its Subsidiaries, its Affiliates
or any of their respective predecessors in interest, including but not limited to (i) business development, growth and other strategic
business plans, (ii) properties available for acquisition, financing development or sale, (iii) accounting and business methods,
(iv) services or products and the marketing of such services and products, (v) fees, costs and pricing structures, (vi) designs,
(vii) analysis, (viii) drawings, photographs and reports, (ix) computer software, including operating systems, applications and
program listings, (x) flow charts, manuals and documentation, (xi) data bases, (xii) inventions, devices, new developments, methods
and processes, whether patentable or unpatentable and whether or not reduced to practice, (xiii) copyrightable works, (xiv) all
technology and trade secrets, (xv) confidential terms of material agreements and customer relationships, and (xvi) all similar
and related information in whatever form or medium.&nbsp;&nbsp;Confidential Information also expressly excludes Executive&rsquo;s
general know-how and business contacts contained in Executive&rsquo;s rolodex, be it electronic or otherwise, as of the Effective
Date&nbsp;to the extent that the use of such information does not violate or breach the terms of Section 1.9.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventions
and Patents.&nbsp;&nbsp;Executive acknowledges that all discoveries, concepts, ideas, inventions, innovations, improvements, developments,
products, methods, processes, techniques, programs, designs, analyses, drawings, reports, patents, copyrightable works and mask
works (whether or not including any Confidential Information) and all issuances, registrations or applications related thereto,
all other proprietary information or intellectual property and all similar or related information (whether or not patentable) conceived,
developed, contributed to, made, or reduced to practice by Executive (either alone or with others) while employed by Company or
any of its Subsidiaries or Affiliates or any of their respective predecessors in interest (including prior to the date of this
Agreement) and within the scope of the Executive&rsquo;s employment and duties and responsibilities or using the materials, facilities
or resources of the Company or any of its Subsidiaries or Affiliates or any of their respective predecessors in interest within
the scope of the Executive&rsquo;s employment and duties and responsibilities (collectively, &ldquo;<I>Company Works</I>&rdquo;)
is the sole and exclusive property of the Company and its Subsidiaries. Executive hereby assigns all right, title and interest
in and to all Company Works to the Company and its Subsidiaries and waives any moral rights he may have therein, without further
obligation or consideration.&nbsp;&nbsp;Any copyrightable work prepared in whole or in part by the Executive will be deemed &ldquo;<I>a
work made for hire</I>&rdquo; under Section 201(b) of the 1976 Copyright Act, and the Company and its Subsidiaries shall own all
of the rights comprised in the copyright therein.&nbsp;&nbsp;The Executive shall promptly and fully disclose in writing all Company
Works to the Company and shall cooperate with the Company and its Subsidiaries to protect, maintain and enforce the Company&rsquo;s
and its Subsidiaries&rsquo; interests in and rights to such Company Works (including, without limitation, providing reasonable
assistance in securing patent protection and copyright registrations and executing all affidavits, assignments, powers-of-attorney
and other documents as reasonably requested by the Company, whether such requests occur prior to or after termination of the Executive&rsquo;s
employment with the Company).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Delivery
of Materials Upon Termination of Employment.&nbsp;&nbsp;As requested by the Company from time to time and in any event upon the
termination of the Executive&rsquo;s employment with the Company , the Executive shall promptly deliver to the Company, or at the
Company&rsquo;s election, destroy, all copies and embodiments, in whatever form or medium, of all Confidential Information, Company
Works and other property and assets of the Company and its Subsidiaries in the Executive&rsquo;s possession or within his control
(including, but not limited to, office keys, access cards, written records, notes, photographs, manuals, notebooks, documentation,
program listings, flow charts, magnetic media, disks, diskettes, tapes computers and handheld devices (including all software,
files and documents thereon) and any other materials containing any Confidential Information or Company Works) irrespective of
the location or form of such material and, if requested by the Company, shall provide the Company with written confirmation that
all such materials have been delivered to the Company or destroyed, as applicable.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">1.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-Compete
and Non-Solicitation Covenants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Executive acknowledges and agrees that the Executive&rsquo;s services to the Company and its Subsidiaries are unique in nature
and that the Company and its Subsidiaries would be irreparably damaged if the Executive were to provide similar services to any
Person competing with the Company and its Subsidiaries or engaged in the Business.&nbsp;&nbsp;The Executive further acknowledges
that, in the course of his employment with the Company, he will become familiar with the Company&rsquo;s and its Subsidiaries&rsquo;
trade secrets and with other Confidential Information.&nbsp;&nbsp;During the Noncompete Period, he shall not, directly or indirectly,
whether for himself or for any other Person, permit his name to be used by or participate in any business or enterprise (including,
without limitation, any division, group or franchise of a larger organization) that engages or proposes to engage in the Business
in the Restricted Territories, other than the Company and its Subsidiaries or except as otherwise directed or authorized by the
Board.&nbsp;&nbsp;For purposes of this Agreement, the term &ldquo;<I>participate in</I>&rdquo; shall include, without limitation,
having any direct or indirect interest in any Person, whether as a sole proprietor, owner, stockholder, partner, member, joint
venturer, creditor or otherwise, or rendering any direct or indirect service or assistance to any Person (whether as a director,
officer, supervisor, employee, agent, consultant or otherwise).&nbsp;&nbsp;Nothing herein will prohibit the Executive from mere
passive ownership of not more than five percent (5%) of the outstanding stock of any class of a publicly held corporation whose
stock is traded on a national securities exchange or in the over-the-counter market.&nbsp;&nbsp;As used herein, the phrase &ldquo;<I>mere
passive ownership</I>&rdquo; shall include voting or otherwise granting any consents or approvals required to be obtained from
such Person as an owner of stock or other ownership interests in any entity pursuant to the charter or other organizational documents
of such entity, but shall not include, without limitation, any involvement in the day-to-day operations of such entity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
the Nonsolicitation Period, the Executive will not directly, or indirectly through another Person, solicit, induce or attempt to
induce any customer, supplier, licensee, or other business relation of the Company or any of its Subsidiaries, or solicit, induce
or attempt to induce any person who is, or was during the then-most recent 12-month period, a corporate officer, general manager
or other employee of the Company or any of its Subsidiaries to terminate such employee&rsquo;s employment with the Company or any
of its Subsidiaries, or hire any such person unless such person&rsquo;s employment was terminated by the Company or any of its
Subsidiaries, or in any way interfere with the relationship between any such customer, supplier, licensee, employee or business
relation and the Company or any of its Subsidiaries.&nbsp;&nbsp;The restrictions of this Section 1.8(b) shall not apply to any
customer, supplier, licensee, or other business relation of the Company or any of its Subsidiaries with whom Executive had a prior
business relationship before he started performing services for the Company. The Executive acknowledges and agrees that the Company
and its Subsidiaries would be irreparably damaged if the Executive were to breach any of the provisions contained in this Section
1.8(b).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Executive
acknowledges that this Agreement, and specifically, this Section 1.8, does not preclude Executive from earning a livelihood, nor
does it unreasonably impose limitations on Executive&rsquo;s ability to earn a living.&nbsp;&nbsp;In addition, Executive agrees
and acknowledges that the potential harm to the Company of its non-enforcement outweighs any harm to Executive of its enforcement
by injunction or otherwise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Enforcement.&nbsp;&nbsp;If,
at the time of enforcement of Section 1.5, 1.6, 1.7, 1.8, 1.9 or 1.10, a court holds that the restrictions stated herein are unreasonable
under circumstances then existing, the Parties agree that, to the extent permitted by applicable law, the maximum period, scope
or geographical area reasonable under such circumstances will be substituted for the Noncompete Period, scope or area.&nbsp;&nbsp;Because
the Executive&rsquo;s services are unique and because the Executive has access to Confidential Information and Company Works, the
Parties agree that money damages may be an inadequate remedy for any breach of Section 1.5, 1.6, 1.7, 1.8, 1.9 or 1.10.&nbsp;&nbsp;Therefore,
in the event of a breach or threatened breach of Section 1.5, 1.6, 1.7, 1.8, 1.9 or 1.10, the Company or any of its Subsidiaries
or any of their respective successors or assigns may, in addition to other rights and remedies existing in their favor, apply to
any court of competent jurisdiction for specific performance and/or injunctive or other relief in order to enforce, or prevent
any violations of, the provisions hereof (without posting a bond or other security).&nbsp;&nbsp;The Parties hereby acknowledge
and agree that (a) performance of the services of the Executive hereunder may occur in jurisdictions other than the jurisdiction
whose law the Parties have agreed shall govern the construction, validity and interpretation of this Agreement, (b) the law of
the&nbsp;&nbsp;State of New York shall govern construction, validity and interpretation of this Agreement to the fullest extent
possible, and (c) Section 1.5, 1.6, 1.7, 1.8, 1.9 or 1.10 shall restrict the Executive only to the extent permitted by applicable
law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Survival.&nbsp;&nbsp;Sections
1.5, 1.6, 1.7, 1.8, 1.9 and 1.10 will survive and continue in full force in accordance with their terms notwithstanding any termination
of the Employment Period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ARTICLE II</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DEFINED TERMS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">2.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Definitions.
For purposes of this Agreement, the following terms will have the following meanings:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&ldquo;<I>Business</I>&rdquo;
means the business of acquiring and licensing consumer brands worldwide.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&ldquo;<I>Cause</I>&rdquo;
means with respect to the Executive, the occurrence of one or more of the following:&nbsp;&nbsp;(i) conviction of a felony involving
moral turpitude, misappropriation of Company property, embezzlement of Company funds, violation of the securities laws or dishonesty,
(ii) the willful and continued failure by the Executive to attempt in good faith to substantially perform his obligations under
this Agreement (other than any such failure resulting from the Executive&rsquo;s incapacity due to a Disability); (iii) reporting
to work under the influence of alcohol or illegal drugs, or the use of illegal drugs (whether or not at the workplace), or (iv)
any willful breach of Sections 1.5, 1.6, 1.7, 1.8, 1.9, 3.1 or 3.2 of this Agreement.&nbsp;&nbsp;Notwithstanding the foregoing,
termination by the Company for Cause (other than pursuant to clause (i) above) shall not be effective until and unless Executive
fails to cure such alleged act or circumstance within 30 days of receipt of notice thereof, to the satisfaction of the Chief Executive
Officer in the exercise of his reasonable judgment (or, if within such 30-day period the Executive commences and proceeds to take
all reasonable actions to effect such cure, within such reasonable additional time period (no longer than 60 days) as may be necessary).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&ldquo;<I>Change of
Control</I>&rdquo; means the occurrence of any of the following (i) a merger or consolidation to which the Company is a party (other
than one in which the stockholders of the Company prior to the event own a majority of the voting power of the surviving or resulting
corporation) (ii) a sale, lease, transfer, exclusive license or other disposition of all or substantially all of the assets of
the Company, or (iii) a sale or transfer by the Company&rsquo;s stockholders of majority voting control, in a single transaction
or a series of transactions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&ldquo;<I>Code</I>&rdquo;
means the Internal Revenue Code of 1986 and the Treasury regulations thereunder, each as amended from time to time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&ldquo;<I>Disability</I>&rdquo;
shall have the meaning set forth in a policy or policies of long-term disability insurance, if any, the Company obtains for the
benefit of itself and/or its employees.&nbsp;&nbsp;If there is no definition of &ldquo;<I>disability</I>&rdquo; applicable under
any such policy or policies, if any, then the Executive shall be considered disabled due to mental or physical impairment or disability,
despite reasonable accommodations by the Company and its Subsidiaries, to perform his customary or other comparable duties with
the Company or its Subsidiaries immediately prior to such disability for a period of at least 120 consecutive days or for at least
180 non-consecutive days in any 12-month period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&ldquo;<I>Effective
Date</I>&rdquo; means January 01, 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&ldquo;<I>Fiscal Year</I>&rdquo;
means the fiscal year of the Company and its Subsidiaries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&ldquo;<I>Good Reason</I>&rdquo;
means the occurrence, without the Executive&rsquo;s written consent, of one or more of the following events:&nbsp;&nbsp;(i) the
Company reduces the amount of Executive&rsquo;s Base Salary or Cash Bonus, (ii) the Company requires that the Executive relocate
his principal place of employment to a site that is more than 50 miles from the Company&rsquo;s offices in the New York area&nbsp;&nbsp;or
if the Company changes the location of its headquarters without the consent of Executive to a location that is more than 50 miles
from such location, (iii) the Company materially reduces the Executive&rsquo;s authority, duties or responsibilities or removes
the Executive from the position of Chief Merchant of the Company other than pursuant to a termination of his employment for Cause,
or upon the Executive&rsquo;s death or Disability, (iv) the failure or unreasonable delay of the Company to provide to the Executive
any of the payments or benefits contemplated hereby or (v) the Company otherwise materially breaches the terms of this Agreement;
provided that no such event shall constitute Good Reason hereunder unless (a) the Executive shall have given written notice to
the Company of the Executive&rsquo;s intent to resign for Good Reason within 30 days after the Executive becomes aware of the occurrence
of any such event, which notice shall describe in reasonable detail the event or events constitute the basis for the Executive&rsquo;s
intention to resign for Good Reason and (b) such event or occurrence, if a breach susceptible to cure, shall not have been cured
or otherwise shall not have been resolved to the Executive&rsquo;s reasonable satisfaction, in each case within 30 days of the
Company&rsquo;s receipt of such notice.&nbsp;&nbsp;In such case the Executive&rsquo;s resignation shall become effective on the
31<SUP>st</SUP> day after the Company&rsquo;s receipt of the aforementioned notice.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.1in">&ldquo;<I>Merger Agreement</I>&rdquo; means
the Merger Agreement entered into by and among NetFabric Holdings, Inc., the Company and a subsidiary of NetFabric Holdings, Inc.
formed for the purpose of acquiring the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&ldquo;<I>Noncompete
Period</I>&rdquo; means the Employment Period and 6 months thereafter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&ldquo;<I>Nonsolicitation
Period</I>&rdquo; means the Employment Period and 6 months thereafter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&ldquo;<I>Person</I>&rdquo;
means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust,
a joint venture, an unincorporated organization, or the United States of America any other nation, any state or other political
subdivision thereof, or any entity exercising executive, legislative, judicial, regulatory or administrative functions of government.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&ldquo;<I>Restricted
Territories</I>&rdquo; means (i) the United States and its territories and possessions and (ii) any foreign country in which the
Company engages in Business as of the Termination Date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&ldquo;<I>Subsidiary</I>&rdquo;
means, with respect to any Person, any corporation, limited liability company, partnership, association, or business entity of
which (i) if a corporation, a majority of the total voting power of shares of stock entitled (without regard to the occurrence
of any contingency) to vote in the election of directors, managers, or trustees thereof is at the time owned or controlled, directly
or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof, or (ii) if a limited
liability company, partnership, association, or other business entity (other than a corporation), a majority of&nbsp;&nbsp;partnership
or other similar ownership interest thereof is at the time owned or controlled, directly or indirectly, by that Person or one or
more Subsidiaries of that Person or a combination thereof.&nbsp;&nbsp;For purposes hereof, a Person or Persons shall be deemed
to have a majority ownership interest in a limited liability company, partnership, association, or other business entity (other
than a corporation) if such Person or Persons shall be allocated a majority of limited liability company, partnership, association,
or other business entity gains or losses or shall be or control any managing director or general partner or manager or managing
member of such limited liability company, partnership, association, or other business entity.&nbsp;&nbsp;For purposes hereof, references
to a Subsidiary of any Person shall be given effect only at such times that such Person has one or more Subsidiaries, and, unless
otherwise indicated, the term Subsidiary refers to a Subsidiary of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&ldquo;<I>Termination
Date</I>&rdquo; means the effective date of the Executive&rsquo;s termination of employment with the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">2.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
Definitional Provisions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
references contained in this Agreement are references to sections in this Agreement, unless otherwise specified.&nbsp;&nbsp;Each
defined term used in this Agreement has a comparable meaning when used in its plural or singular form.&nbsp;&nbsp;Each gender-specific
term used in this Agreement has a comparable meaning whether used in a masculine, feminine or gender-neutral form.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Whenever
the term &ldquo;<I>including</I>&rdquo; (whether or not that term is followed by the phrase &ldquo;<I>but not limited to</I>&rdquo;
or &ldquo;<I>without limitation</I>&rdquo; or words of similar effect) is used in this Agreement in connection with a listing of
items within a particular classification, that listing will be interpreted to be illustrative only and will not be interpreted
as a limitation on, or an exclusive listing of, the items within that classification.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ARTICLE III</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>MISCELLANEOUS TERMS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">3.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Defense
of Claims. The Executive agrees that, during the Employment Period, and for a period of six months after termination of the Executive&rsquo;s
employment, upon request by the Company, the Executive shall reasonably cooperate with the Company in connection with any matters
the Executive worked on during his employment with the Company and any related transitional matters.&nbsp;&nbsp;In addition, during
the Employment Period and thereafter, the Executive agrees to reasonably cooperate with the Company in the defense of any claims
or actions that may be made by or against the Company that affect the Executive&rsquo;s prior areas of responsibility or involve
matters about which the Executive has knowledge, except if the Executive&rsquo;s reasonable interests are adverse to the Company
in such claim or action and provided that after the Employment Period such level of cooperation shall be reasonable and shall take
due account of the Executive&rsquo;s work and personal commitments. The Company&rsquo;s request for &ldquo;<I>reasonable cooperation</I>&rdquo;
shall take into consideration Executive&rsquo;s personal and business commitments and the amount of notice provided to Executive
by the Company. The Company agrees to promptly reimburse the Executive for all of the Executive&rsquo;s reasonable travel and other
direct expenses incurred, or to be reasonably incurred, to comply with the Executive&rsquo;s obligations under this Section 3.1.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">3.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nondisparagement.
The Executive agrees to refrain from (i) making, directly or indirectly, any derogatory comments concerning the Company or its
Subsidiaries or any current or former officers, directors, employees or shareholders thereof or (ii) taking any other action with
respect to the Company or its Subsidiaries which is reasonably expected to result, or does result in, damage to the business or
reputation of the Company, its Subsidiaries or any of its current or former officers, directors, employees or shareholders.&nbsp;&nbsp;The
Company agrees to refrain from (i) making, directly or indirectly, any derogatory comments concerning the Executive or (ii) taking
any other action with respect to the Executive which is reasonably expected to result, or does result in, damage to the reputation
of the Executive.&nbsp;&nbsp;Notwithstanding anything to the contrary contained herein, nothing in this Agreement shall prohibit
or restrict either party from, truthfully and in good faith: (i) making any disclosure of information required by law; (ii) providing
information to, or testifying or otherwise assisting in any investigation or proceeding brought by, any federal regulatory or law
enforcement agency or legislative body, any self-regulatory organization, or the Company&rsquo;s or the Executive&rsquo;s designated
legal, compliance or human resources officers; or (iii) filing, testifying, participating in or otherwise assisting in a proceeding
relating to an alleged violation of any federal, state or municipal law relating to fraud, or any rule or regulation of the Securities
and Exchange Commission or any self-regulatory organization.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">3.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Source
of Payments. All payments provided under this Agreement, other than payments made pursuant to a plan which provides otherwise and
except as otherwise provided herein, shall be paid in cash from the general funds of the Company, and no special or separate fund
shall be established, and no other segregation of assets shall be made, to assure payment. The Executive shall have no right, title
or interest whatsoever in or to any investments which the Company or its Subsidiaries may make to aid the Company in meeting its
obligations hereunder. To the extent that any person acquires a right to receive payments from the Company hereunder, such right
shall be no greater than the right of an unsecured creditor of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">3.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notices.
Any notice provided for in this Agreement must be in writing and must be either personally delivered, mailed by first class mail
(postage prepaid and return receipt requested), sent by reputable overnight courier service (charges prepaid) or sent by facsimile
(with receipt confirmed) to the recipient at the address or facsimile number indicated below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">To the Company:</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 1in">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Xcel Brands, Inc.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">1333 Broadway, 10<SUP>th</SUP> Floor</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">New York, New York 10018</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">With a copy (which shall not constitute notice) to:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Blank Rome LLP</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">The Chrysler Building</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">405 Lexington Avenue</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">New York, NY 10174-0208</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Attn:&nbsp;&nbsp;Robert Mittman, Esq.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Facsimile: (212) 885-5557</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 1in; padding-right: 0; padding-left: 0; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify"><FONT STYLE="font-size: 10pt">To the Executive:</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify">&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify"><FONT STYLE="font-size: 10pt">Giuseppe Falco</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0"><FONT STYLE="font-size: 10pt">330 E 39 Street 25C</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0">New York, NY 10016</TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0">(917)-684-1013</TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0">&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify"><FONT STYLE="font-size: 10pt">With copies to:</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0">&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify"><FONT STYLE="font-size: 10pt">Outten &amp; Golden LLP</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify"><FONT STYLE="font-size: 10pt">3 Park Avenue, 29th Floor</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify"><FONT STYLE="font-size: 10pt">New York, NY 10016</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify">(212) 245-1000</TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify"><FONT STYLE="font-size: 10pt">Attn:&nbsp;&nbsp;Wendi S. Lazar, Esq.</FONT></TD>
    </TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">or such other address or to the attention
of such other Person as the recipient Party will have specified by prior written notice to the sending Party.&nbsp;&nbsp;Any notice
under this Agreement will be deemed to have been given when so delivered or sent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">3.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Severability.&nbsp;&nbsp;Subject
to the express provisions of Section 1.10 relating to certain specified changes, whenever possible, each provision of this Agreement
will be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is
held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity,
illegality or unenforceability will not affect any other provision or any other jurisdiction, but this Agreement will be reformed,
construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">3.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Complete
Agreement.&nbsp;&nbsp;This Agreement embodies the complete agreement and understanding among the Parties with regard to the subject
matter hereof and supersedes and preempts any prior understandings, agreements or representations by or among the Parties, written
or oral, which may have related to the subject matter hereof in any way.&nbsp;&nbsp;To the extent that this Agreement provides
greater benefits to the Executive or fewer obligation of the Executive than available or set forth under the Company&rsquo;s employee
handbook or other corporate policies, then this Agreement shall prevail.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">3.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Counterparts.&nbsp;&nbsp;This
Agreement may be executed in separate counterparts, each of which is deemed to be an original and all of which taken together constitute
one and the same agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">3.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assignment.&nbsp;&nbsp;Without
the Executive&rsquo;s consent, the Company may not assign its rights and obligations under this Agreement except (i) to a &ldquo;<I>Successor</I>&rdquo;
(as defined below) or (ii) to an entity that is formed and controlled by the Company or any of its Subsidiaries.&nbsp;&nbsp;This
Agreement is personal to the Executive, and the Executive shall not have the right to assign the Executive&rsquo;s interest in
this Agreement, any rights under this Agreement or any duties imposed under this Agreement, nor shall the Executive have the right
to pledge, hypothecate, transfer, assign or otherwise encumber the Executive&rsquo;s right to receive any form of compensation
hereunder without the prior written consent of the Board.&nbsp;&nbsp;As used in Section 3.8 and 3.9, &ldquo;<I>Successor</I>&rdquo;
shall include any Person that at any time, whether by purchase, merger or otherwise, directly or indirectly acquires all or substantially
all of the assets of, or ownership interests in, the Company and its Subsidiaries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">3.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Successors
and Assigns.&nbsp;&nbsp;This Agreement is intended to bind and inure to the benefit of and be enforceable by the Company, the Executive,
and their respective heirs, successors and permitted assigns.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">3.10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Choice
of Law.&nbsp;&nbsp;This Agreement and the performance of the parties hereunder shall be governed by the internal laws (and not
the law of conflicts) of the State of New York. Any claim or controversy arising out of or in connection with this Agreement, or
the breach thereof, shall be adjudicated exclusively by the Supreme Court, New York County, State of New York, or by a federal
court sitting in Manhattan in New York City, State of New York. The parties hereto agree to the personal jurisdiction of such courts
and agree to accept process by regular mail in connection with any such dispute.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">3.11&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Waiver
of Jury Trial.&nbsp;&nbsp;AS A SPECIFICALLY BARGAINED FOR INDUCEMENT FOR EACH OF THE PARTIES HERETO TO ENTER INTO THIS AGREEMENT
(AFTER HAVING THE OPPORTUNITY TO CONSULT WITH COUNSEL), EACH PARTY HERETO EXPRESSLY WAIVES THE RIGHT TO TRIAL BY JURY IN ANY LAWSUIT
OR PROCEEDING RELATING TO OR ARISING IN ANY WAY FROM THIS AGREEMENT OR THE MATTERS CONTEMPLATED HEREBY.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">3.12&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legal
Fees and Court Costs.&nbsp;&nbsp;In the event that any action, suit or other proceeding in law or in equity is brought to enforce
the provisions of this Agreement, and such action results in the award of a judgment for money damages or in the granting of any
injunction in favor of the Company, all expenses (including reasonable attorneys&rsquo; fees) of the Company in such action, suit
or other proceeding shall be paid by the Executive. In the event that any action, suit or other proceeding in law or in equity
is brought to enforce the provisions of this Agreement, and such action results in the award of a judgment for money damages or
in the granting of any injunction in favor of the Executive, all expenses (including reasonable attorneys&rsquo; fees and travel
expenses) of the Executive in such action, suit or other proceeding shall be paid by the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">3.13&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Remedies.&nbsp;&nbsp;Each
Party will be entitled to enforce its rights under this Agreement specifically, to recover damages and costs caused by any breach
of any provision of this Agreement and to exercise all other rights existing in its favor.&nbsp;&nbsp;Subject to Section 3.12 ,
nothing herein shall prohibit any arbitrator or judicial authority from awarding attorneys&rsquo; fees or costs to a prevailing
Party in any arbitration or other proceeding to the extent that such arbitrator or authority may lawfully do so.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">3.14&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amendment
and Waiver.&nbsp;&nbsp;The provisions of this Agreement may be amended or waived only with the prior written consent of the Company
and the Executive, and no course of conduct or failure or delay in enforcing the provisions of this Agreement will affect the validity,
binding effect or enforceability of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">3.15&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Third
Party Beneficiaries.&nbsp;&nbsp;This Agreement will not confer any rights or remedies upon any Person other than the Parties and
their respective successors and permitted assigns and other than, in the event of the Executive&rsquo;s death, his estate, to which
all of Executive&rsquo;s rights and remedies set forth herein shall accrue.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">3.16&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Executive&rsquo;s Representations.&nbsp;&nbsp;The Executive hereby represents and warrants to the Company that (a) the execution,
delivery and performance of this Agreement by the Executive do not and shall not conflict with, breach, violate or cause a default
under any contract, agreement, instrument, order, judgment or decree to which the Executive is a party or by which he is bound,
(b) the Executive is not a party to or bound by any employment agreement, noncompete agreement or confidentiality agreement with
any other Person (or other agreement with any other person containing a restriction on the Executive&rsquo;s right to do business
or obligating him to do business with any other Person on a priority or preferential basis), (c) upon the execution and delivery
of this Agreement by the Company, this Agreement shall be the valid and binding obligation of the Executive, enforceable in accordance
with its terms and (d) upon the execution and delivery of this Agreement by the Company, Executive shall not be in violation of
clause (i) set forth in the definition of Cause and shall not be disabled.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">3.17&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
409A of the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Compliance.&nbsp;&nbsp;Notwithstanding
anything herein to the contrary, this Agreement is intended to be interpreted and applied so that the payments and benefits set
forth herein either shall either be exempt from the requirements of Section 409A of the Internal Revenue Code of 1986, as amended
(the &ldquo;<I>Code</I>&rdquo;), or shall comply with the requirements of Code Section 409A, and, accordingly, to the maximum extent
permitted, this Agreement shall be interpreted to be exempt from or in compliance with Code Section 409A.&nbsp;&nbsp;To the extent
that the Company determines that any provision of this Agreement would cause Executive to incur any additional tax or interest
under Code Section 409A, the Company shall be entitled to reform such provision to attempt to comply with or be exempt from Code
Section 409A through good faith modifications.&nbsp;&nbsp;To the extent that any provision hereof is modified in order to comply
with Code Section 409A, such modification shall be made in good faith and shall, to the maximum extent reasonably possible, maintain
the original intent and economic benefit to Executive and the Company without violating the provisions of Code Section 409A.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Separate
Payments.&nbsp;&nbsp;Notwithstanding anything in this Agreement to the contrary, the right to receive installment payments hereunder
shall be treated as a right to receive a series of separate payments in accordance with Code Section 409A and Final Treasury Regulation
Section 1.409A-2(b)(2)(iii).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-Term
Deferral.&nbsp;&nbsp;Except as otherwise specifically provided, amounts payable under this Agreement, other than those expressly
payable on a deferred or installment basis, will be paid as promptly as practicable following the date on which they are earned
and vested and, in any event, on or prior to March 15 of the year following the first calendar year in which such amounts are no
longer subject to a substantial risk of forfeiture, as such term is defined in Section 409A of the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Separation
from Service.&nbsp;&nbsp;Notwithstanding anything in this Agreement or elsewhere to the contrary, 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
that constitute &ldquo;<I>non-qualified deferred compensation</I>&rdquo; within the meaning of Code Section 409A upon or following
a termination of Executive&rsquo;s employment unless such termination is also a &ldquo;<I>separation from service</I>&rdquo; within
the meaning of Code Section 409A and, for purposes of any such provision of this Agreement, references to a &ldquo;<I>termination</I>,&rdquo;
&ldquo;<I>termination of employment</I>&rdquo; or like terms shall mean &ldquo;<I>separation from service</I>&rdquo; and the date
of such separation from service shall be the Termination Date for purposes of any such payment or benefits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
Designation.&nbsp;&nbsp;In no event may Executive, directly or indirectly, designate the calendar year of any payment to be made
under this Agreement or otherwise which constitutes a &ldquo;<I>deferral of compensation</I>&rdquo; within the meaning of Code
Section 409A.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expense
Reimbursement. 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, and (iii)
such payments shall be made on or before the last day of Executive&rsquo;s taxable year following the taxable year in which the
expense was incurred.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>[END OF PAGE]</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>[SIGNATURE PAGE FOLLOWS]</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">IN WITNESS WHEREOF, the Parties have executed this Employment
Agreement as of the date first written above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="3"><FONT STYLE="font-size: 10pt"><B>Xcel Brands, Inc.</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-bottom: 1.1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.1pt"><FONT STYLE="font-size: 10pt">By:</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid"><FONT STYLE="font-size: 10pt">/s/ Robert W. D&rsquo;Loren</FONT></TD>
    <TD STYLE="padding-bottom: 1.1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 5%"><FONT STYLE="font-size: 10pt">Name:</FONT></TD>
    <TD STYLE="width: 32%"><FONT STYLE="font-size: 10pt">Robert W. D&rsquo;Loren</FONT></TD>
    <TD STYLE="width: 10%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Title:</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Chairman and CEO</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-bottom: 1.1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid"><FONT STYLE="font-size: 10pt">/s/ Giuseppe Falco</FONT></TD>
    <TD STYLE="padding-bottom: 1.1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="3"><FONT STYLE="font-size: 10pt"><B>Giuseppe Falco</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.3in; text-align: right"><B>EXHIBIT A</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FORM OF RELEASE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">I, Giuseppe Falco, on behalf of myself
and my heirs, successors and assigns, in consideration of the performance by Xcel Brands, Inc., a Delaware corporation (together
with its Subsidiaries, the &ldquo;<I>Company</I>&rdquo;), of its material obligations under the Second Amended and Restated Employment
Agreement, dated as of October 1, 2016 (the &ldquo;<I>Agreement</I>&rdquo;), do hereby release and forever discharge as of the
date hereof the Company, its Affiliates, each such Person&rsquo;s respective successors and assigns and each of the foregoing Persons&rsquo;
respective present and former directors, officers, partners, stockholders, members, managers, agents, representatives, employees
(and each such Person&rsquo;s respective successors and assigns) (collectively, the &ldquo;<I>Released Parties</I>&rdquo;) to the
extent provided below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I understand that
any payments or benefits paid or granted to me under Section 1.4(b) of the Agreement represent, in part, consideration for signing
this General Release and are not salary, wages or benefits to which I was already entitled.&nbsp;&nbsp;I understand and agree that
I will not receive the payments and benefits specified in Section 1.4(b) of the Agreement unless I execute this General Release
and do not revoke this General Release within the time period permitted hereafter or breach this General Release.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I knowingly and
voluntarily release and forever discharge the Company and the other Released Parties from any and all claims, controversies, actions,
causes of action, cross-claims, counter-claims, demands, debts, compensatory damages, liquidated damages, punitive or exemplary
damages, other damages, claims for costs and attorneys&rsquo; fees, or liabilities of any nature whatsoever in law and in equity,
both past and present (through the date of this General Release), whether under the laws of the United States or another jurisdiction
and whether known or unknown, suspected or claimed against the Company or any of the Released Parties which I, my spouse, or any
of my heirs, executors, administrators or assigns, have or may have, which arise out of or are connected with my employment with,
or my separation from, the Company (including, but not limited to, any allegation, claim or violation, arising under:&nbsp;&nbsp;Title
VII of the Civil Rights Act of 1964, as amended; the Civil Rights Act of 1991; the Age Discrimination in Employment Act of 1967,
as amended (including the Older Workers Benefit Protection Act); the Equal Pay Act of 1963, as amended; the Americans with Disabilities
Act of 1990; the Family and Medical Leave Act of 1993; the Civil Rights Act of 1866, as amended; the Worker Adjustment Retraining
and Notification Act; the Employee Retirement Income Security Act of 1974; any applicable Executive Order Programs; the Fair Labor
Standards Act; Occupational Safety and Health Act of 1970, as amended, under the Worker Adjustment and Retraining Notification
Act of 1988, as amended, under the Family and Medical Leave Act of 1993, as amended, under the Fair Credit Reporting Act of 1970,
as amended, and under the Sarbanes-Oxley Act of 2002, under the Civil Rights Act of 1870, 42 U.S.C. &sect; 1981, as amended, under
the Civil Rights Act of 1871, as amended, under the Americans With Disabilities Act of 1990, as amended, under the Americans with
Disabilities Act Amendments of 2008, under the Rehabilitation Act of 1973, as amended, under the Immigration Reform and Control
Act of 1986, as amended, under the Vietnam Era Veterans Readjustment Assistance Act of 1974, as amended, under the Uniformed Service
Employment and Reemployment Rights Act of 1994, as amended, under the Consolidated Omnibus Budget Reconciliation Act of 1985 (&ldquo;<I>COBRA</I>&rdquo;),
and any and all claims under the New York State Human Rights Law, under the New York City Human Rights Law,&nbsp;&nbsp;and under
the New York Labor Laws, and any and all claims under any other federal, state, or local labor law, civil rights law, fair employment
practices law, human rights law, family and medical leave law, occupational safety and health law, whistleblower protection law,
and equal pay law; or any and all claims of slander, libel, defamation, invasion of privacy, intentional or negligent infliction
of emotional distress, intentional or negligent misrepresentation, fraud, prima facie torts or other tort; or any and all claims
based on the design or administration of any of the Company&rsquo;s employee benefit plan or program, or arising under any Company
policy, practice, or procedure, or employee benefit plan; any and all claims for wages, commissions bonuses, vacation pay or other
paid time off, employee benefits equity-based compensation, or other compensation or payments of any kind or nature, or for continued
employment with the Company in any position; or under any other local, state, or federal law, regulation or ordinance; or under
any public policy, contract or tort, or under common law; or any claim for wrongful discharge, breach of contract, or infliction
of emotional distress; or any claim for costs, fees, or other expenses, including attorneys&rsquo; fees incurred in these matters)
(all of the foregoing collectively referred to herein as the &ldquo;<I>Claims</I>&rdquo;); provided , however, that nothing contained
in this General Release shall apply to, or release the Company from, (i) any obligation of the Company contained in the Agreement
to be performed after the date hereof or (ii) any vested or accrued benefits pursuant to any employee benefit plan, program or
policy of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I represent that
I have made no assignment or transfer of any right, claim, demand, cause of action, or other matter covered by paragraph 2 above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I agree that this
General Release does not waive or release any rights or claims that I may have under the Age Discrimination in Employment Act of
1967 which arise after the date I execute this General Release.&nbsp;&nbsp;I acknowledge and agree that my separation from employment
with the Company in compliance with the terms of the Agreement shall not serve as the basis for any claim or action (including,
without limitation, any claim under the Age Discrimination in Employment Act of 1967).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In signing this
General Release, I acknowledge and intend that it shall be effective as a bar to each and every one of the Claims hereinabove mentioned
or implied. I expressly consent that this General Release shall be given full force and effect according to each and all of its
express terms and provisions, including those relating to unknown and unsuspected Claims (notwithstanding any state statute that
expressly limits the effectiveness of a general release of unknown, unsuspected and unanticipated Claims), if any, as well as those
relating to any other Claims hereinabove mentioned or implied. I acknowledge and agree that this waiver is an essential and material
term of this General Release and that without such waiver the Company would not have agreed to the terms of the Agreement.&nbsp;&nbsp;I
covenant that I shall not directly or indirectly, commence, maintain or prosecute or sue any of the Released Persons either affirmatively
or by way of cross-complaint, indemnity claim, defense or counterclaim or in any other manner or at all on any Claim covered by
this General Release.&nbsp;&nbsp;I further agree that in the event I should bring a Claim seeking damages against the Company,
or in the event I should seek to recover against the Company in any Claim brought by a governmental agency on my behalf, this General
Release shall serve as a complete defense to such Claims. I further agree that I am not aware of any pending charge or complaint
of the type described in paragraph 2 as of the execution of this General Release.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I agree that neither
this General Release, nor the furnishing of the consideration for this General Release, shall be deemed or construed at any time
to be an admission by the Company, any Released Party or myself of any improper or unlawful conduct.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I agree that this
General Release is confidential and agree not to disclose any information regarding the terms of this General Release, except to
my immediate family and any tax, legal or other counsel I have consulted regarding the meaning or effect hereof or as required
by law, and I will instruct each of the foregoing not to disclose the same to anyone.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any non-disclosure
provision in this General Release does not prohibit or restrict me (or my attorney) from responding to any inquiry about this General
Release or its underlying facts and circumstances by the Securities and Exchange Commission, the Financial Industry Regulatory
Authority or any other self-regulatory organization or governmental entity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Without limitation
of any provision of the Agreement, I hereby expressly re-affirm my obligations under Sections 1.5, 1.6, 1.7, 1.8, 1.9, 1.10, 3.1
and 3.2.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Whenever possible,
each provision of this General Release shall be interpreted in such manner as to be effective and valid under applicable law, but
if any provision of this General Release is held to be invalid, illegal or unenforceable in any respect under any applicable law
or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision or any other
jurisdiction, but this General Release shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal
or unenforceable provision had never been contained herein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&ldquo;<I>Affiliate</I>&rdquo; means, with respect to any Person,
any Person that controls, is controlled by or is under common control with such Person or an Affiliate of such Person.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&ldquo;<I>Person</I>&rdquo; means an individual, a partnership,
a limited liability company, a corporation, an association, a joint stock company, a trust, a joint venture, an unincorporated
organization, investment fund, any other business entity and a governmental entity or any department, agency or political subdivision
thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&ldquo;<I>Subsidiary</I>&rdquo; means, with respect to any Person,
any corporation, limited liability company, partnership, association, or business entity of which (i) if a corporation, a majority
of the total voting power of shares of stock entitled (without regard to the occurrence of any contingency) to vote in the election
of directors, managers, or trustees thereof is at the time owned or controlled, directly or indirectly, by that Person or one or
more of the other Subsidiaries of that Person or a combination thereof, or (ii) if a limited liability company, partnership, association,
or other business entity (other than a corporation), a majority of&nbsp;&nbsp;partnership or other similar ownership interest thereof
is at the time owned or controlled, directly or indirectly, by that Person or one or more Subsidiaries of that Person or a combination
thereof.&nbsp;&nbsp;For purposes hereof, a Person or Persons shall be deemed to have a majority ownership interest in a limited
liability company, partnership, association, or other business entity (other than a corporation) if such Person or Persons shall
be allocated a majority of limited liability company, partnership, association, or other business entity gains or losses or shall
be or control any managing director or general partner of such limited liability company, partnership, association, or other business
entity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">BY SIGNING THIS GENERAL RELEASE, I REPRESENT
AND AGREE THAT:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I HAVE READ IT
CAREFULLY;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I UNDERSTAND ALL
OF ITS TERMS AND KNOW THAT I AM GIVING UP IMPORTANT RIGHTS, INCLUDING BUT NOT LIMITED TO, RIGHTS UNDER THE AGE DISCRIMINATION IN
EMPLOYMENT ACT OF 1967, AS AMENDED, TITLE VII OF THE CIVIL RIGHTS ACT OF 1964, AS AMENDED; THE EQUAL PAY ACT OF 1963, THE AMERICANS
WITH DISABILITIES ACT OF 1990; AND THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I VOLUNTARILY CONSENT
TO EVERYTHING IN IT;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I HAVE BEEN ADVISED
TO CONSULT WITH AN ATTORNEY (VIA THE AGREEMENT AND THIS RELEASE) BEFORE EXECUTING IT AND I HAVE DONE SO OR, AFTER CAREFUL READING
AND CONSIDERATION, I HAVE CHOSEN NOT TO DO SO OF MY OWN VOLITION;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I HAVE HAD AT LEAST
21 DAYS FROM THE DATE OF MY RECEIPT OF THIS RELEASE SUBSTANTIALLY IN ITS FINAL FORM ON _______________ __, _____ TO CONSIDER IT
AND THE CHANGES MADE SINCE THE _______________ __, _____ VERSION OF THIS RELEASE ARE NOT MATERIAL AND WILL NOT RESTART THE REQUIRED
21-DAY PERIOD;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THE CHANGES TO
THE AGREEMENT SINCE _______________ ___, _____ EITHER ARE NOT MATERIAL OR WERE MADE AT MY REQUEST.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I UNDERSTAND THAT
I HAVE SEVEN DAYS AFTER THE EXECUTION OF THIS RELEASE TO REVOKE IT AND THAT THIS RELEASE SHALL NOT BECOME EFFECTIVE OR ENFORCEABLE
UNTIL THE EIGHTH DAY FOLLOWING EXECUTION OF THE AGREEMENT;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I ACKNOWLEDGE THAT
MY acceptance of any of the monies paid by the COMPANY as described in sections __ of the employment Agreement, at any time more
than seven days after the execution of this Agreement will constitute an admission by ME that I did not revoke this Agreement during
the revocation period of seven days; and will further constitute an admission by ME that this Agreement has become effective and
enforceable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"></P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I HAVE SIGNED THIS
GENERAL RELEASE KNOWINGLY AND VOLUNTARILY AND WITH THE ADVICE OF ANY COUNSEL RETAINED TO ADVISE ME WITH RESPECT TO IT; AND</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I AGREE THAT THE
PROVISIONS OF THIS GENERAL RELEASE MAY NOT BE AMENDED, WAIVED, CHANGED OR MODIFIED EXCEPT BY AN INSTRUMENT IN WRITING SIGNED BY
AN AUTHORIZED REPRESENTATIVE OF THE COMPANY AND BY ME.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 60%"><FONT STYLE="font-size: 10pt">DATE: ___________ __, ______</FONT></TD>
    <TD STYLE="width: 30%; border-bottom: Black 1pt solid"></TD>
    <TD STYLE="width: 10%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Giuseppe Falco</FONT></TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Acknowledged and agreed as of the date first written above:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Xcel Brands, Inc.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-bottom: 1.1pt"><FONT STYLE="font-size: 10pt">By:</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 5%"><FONT STYLE="font-size: 10pt">Name:</FONT></TD>
    <TD STYLE="width: 30%"><FONT STYLE="font-size: 10pt">Robert W. D&rsquo;Loren</FONT></TD>
    <TD STYLE="width: 62%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Title:</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Chairman &amp; CEO</FONT></TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>



<P STYLE="margin: 0"></P>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

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