Exhibit 10.5


  


	 	AMENDED AND RESTATED
	 	EFFECTIVE [  ], 2014


 


XCEL BRANDS, INC.


2011 EQUITY INCENTIVE PLAN


 


Section 1. Purposes; Definitions.


 


The purpose of the Xcel Brands, Inc. Equity
Incentive Plan is to enable Xcel Brands, Inc. to offer to those of its employees and to the employees of its Subsidiaries and other
persons who are expected to contribute to the success of the Company, long term performance-based stock and/or other equity interests
in the Company, thereby enhancing their ability to attract, retain and reward such key employees or other persons, and to increase
the mutuality of interests between those employees or other persons and the stockholders of Xcel Brands, Inc.


 


For purposes of the Plan, unless the context
requires otherwise, the following terms shall be defined as set forth below:


 


(a)          “Award”
means an award granted under the Plan including a Stock Option, Restricted Stock or a Cash Award.


 


(b)          “Board”
means the Board of Directors of Xcel Brands, Inc.


 


(c)          “Cash
Award” means an Award entitling the Participant to a payment of cash, in the amount, under the circumstances and at the times
set forth in the Award, as further described in Section 7.


 


(d)          “Cause”
shall have the meaning ascribed thereto in Section 5(b)(ix) below.


 


(e)          “Change
of Control” shall have the meaning ascribed thereto in Section 9 below.


 


(f)          “Code”
means the Internal Revenue Code of 1986, as amended from time to time and any successor thereto.


 


(g)          “Committee”
means the Compensation Committee of the Board, if established, or any other committee of the Board which the Board may designate,
consisting of two or more members of the Board each of whom shall meet the definition of an “independent director”
under the listing rules of any securities exchange or national securities association on which the Stock is listed for trading  and
the requirements set forth in any other law, rule or regulation applicable to the Plan hereinafter enacted, provided, however,
that (i) with respect to any Award that is intended to satisfy the requirements of Rule 16b-3, such Award shall be granted and
administered by a committee of the Board consisting of at least such number of directors as are required from time to time by Rule
16b-3, and each such committee member shall meet such qualifications as are required by Rule 16b-3 and (ii) with respect to any
Award that is intended to satisfy the requirements of Section 162(m) of the Code, such Award shall be granted and administered
by a committee of the Board consisting of at least such number of directors as are required from time to time by Section 162(m)
of the Code, and each such committee member shall meet such qualifications as are required by Section 162(m) of the Code.


 


(h)          “Company”
means Xcel Brands, Inc., a corporation organized under the laws of the State of Delaware or any successor entity.


 


(i)          “Covered
Employee” shall mean any employee of the Company or any of its Subsidiaries who is deemed to be a “covered employee”
within the meaning of Section 162(m) of the Code.


   


(j)          “Disability”
means the permanent and total disability as defined in Section 22(e)(3) of the Code.


 


(k)          “Early
Retirement” means retirement, with the approval of the Board or the Committee, for purposes of one or more Award(s) hereunder,
from active employment with the Company or any Parent or Subsidiary prior to age 65.


  


(l)          “Exchange
Act” means the Securities Exchange Act of 1934, as amended, as in effect from time to time.


 




    	 



    	 



    

  


(m)          “Fair
Market Value”, unless otherwise required by any applicable provision of the Code or any regulations issued thereunder, means,
as of any given date: (i) if the principal market for the Stock is a national securities exchange or the National Association of
Securities Dealers Automated Quotations System (“NASDAQ”), the closing sales price of the Stock on such day as reported
by such exchange or market system, or on a consolidated tape reflecting transactions on such exchange or market system, or (ii)
if the principal market for the Stock is not a national securities exchange and the Stock is not quoted on NASDAQ, the arithmetic
mean of the high and low prices of the Stock on the trading day of the grant as reported or provided  by NASDAQ or the
National Quotation Bureau, Inc., provided that if clauses (i) and (ii) of this paragraph are both inapplicable, or if no trades
have been made or no quotes are available for such day, the Fair Market Value of the Stock shall be determined in good faith by
the Board or the Committee, as the case may be, which determination shall be conclusive as to the Fair Market Value of the Stock.


 


(n)          “409A
Change” shall mean (i) the acquisition by any one person, or more than one person acting as a group, of Stock that, together
with Stock held by such person or group, constitutes more than fifty percent (50%) of the total fair market value or total voting
power of the Stock; (ii) (a) the acquisition by any one person, or more than one person acting as a group (or the acquisition during
the 12-month period ending on the date of the most recent acquisition by such person or persons) of ownership of Stock possessing
fifty percent (50%) or more of the total voting power of the Stock; or (b) a majority of members of the Board is replaced during
any 12-month period by directors whose appointment or election is not endorsed by a majority of the members of the Board prior
to the date of the appointment or election; or (iii) the acquisition by any one person or more than one person acting as a group
(or the acquisition during the 12-month period ending on the date of the most recent acquisition by such person or persons) of
assets from the Company resulting in a Change of Control and, in any event, that have a total gross fair market value equal to
or more than forty percent (40%) of the total gross fair market value of all of the assets of the Company immediately prior to
such acquisition or acquisitions. The foregoing definition of “409A Change” shall be interpreted consistent with, and
shall include all of the requirements of, Section 409A of the Code and the Treasury regulations issued thereunder, to constitute
a change in the ownership or effective control of the corporation, or in the ownership of a substantial portion of the assets of
the corporation as defined therein.


 


(o)          “Incentive
Stock Option” means any Stock Option which is intended to be and is designated as an “incentive stock option”
within the meaning of Section 422 of the Code, or any successor thereto. An Incentive Stock Option may only be granted to an employee
of the Company, a Parent or a Subsidiary as set forth in Section 421 and 422 of the Code, as applicable.


 


(p)          “Non-Qualified
Stock Option” means any Stock Option that is not an Incentive Stock Option.


 


(q)          “Normal
Retirement” means retirement from active employment with the Company or any Parent or Subsidiary on or after age 65.


 


(r)          “Participant”
shall mean any person who has received an award of an Option, Restricted Stock or a Cash Award under the Plan.


 


(s)          “Parent”
means any present or future parent of the Company, as such term is defined in Section 424(e) of the Code, or any successor thereto.


 


(t)          “Plan”
means this Xcel Brands, Inc. 2011 Equity Incentive Plan, as hereinafter amended from time to time.


 


(u)          “Restricted
Stock” means Stock, received under an award made pursuant to Section 6 below that is subject to restrictions imposed pursuant
to said Section 6.


 


(v)         “Retirement”
means Normal Retirement or Early Retirement.


 


(w)          “Rule
16b-3” means Rule 16b-3 of the General Rules and Regulations under the Exchange Act, as in effect from time to time, and
any successor thereto.


  


(x)          “Securities
Act” means the Securities Act of 1933, as amended, as in effect from time to time.


 


(y)          “Stock”
means the common stock of the Company.


 


(z)          “Stock
Option” or “Option” means any option to purchase shares of Stock which is granted pursuant to the Plan.


  


(aa)         “Subsidiary”
means any present or future subsidiary corporation of the Company, as such term is defined in Section 424(f) of the Code, or any
successor thereto.


 




    	 



    	 



    

  


Section 2. Administration.


 


The Plan shall be administered by the Board,
or, at its discretion, the Committee.


 


The Board or the Committee, as the case
may be, shall have the authority to grant Awards pursuant to the terms of the Plan, to officers and other employees or other persons
eligible under Section 4 below.


 


For purposes of illustration and not of
limitation, the Board or the Committee, as the case may be, shall have the authority (subject to the express provisions of the
Plan):


 


(i)          to
select the officers, other employees of the Company or any Parent or Subsidiary and other persons to whom Stock Options and/or
Restricted Stock may be from time to time granted hereunder;


 


(ii)         to
determine the Incentive Stock Options, Non-Qualified Stock Options, Restricted Stock and/or Cash Awards or any combination thereof,
if any, to be granted hereunder to one or more eligible persons;


 


(iii)        to
determine the number of shares of Stock to be covered by each Award granted hereunder;


 


(iv)        to
determine the terms and conditions, not inconsistent with the terms of the Plan, of any Award granted hereunder (including, but
not limited to, share price, any restrictions or limitations, and any vesting acceleration, exercisability and/or forfeiture provisions);
and


 


(v)         to
determine the terms and conditions under which Awards granted hereunder are to operate on a tandem basis and/or in conjunction
with or apart from other awards made by the Company or any Parent or Subsidiary outside of the Plan.


 


Subject to Section 10 hereof, the Board
or the Committee, as the case may be, shall have the authority to (i) adopt, alter and repeal such administrative rules, guidelines
and practices governing the Plan as it shall, from time to time, deem advisable, (ii) interpret the terms and provisions of the
Plan and any Award issued under the Plan (and to determine the form and substance of all agreements relating thereto), and (iii)
to otherwise supervise the administration of the Plan.


  


Subject to the express provisions of the
Plan, all decisions made by the Board or the Committee, as the case may be, pursuant to the provisions of the Plan shall be made
in the Board’s or the Committee's, as the case may be, sole and absolute discretion and shall be final and binding upon all
persons, including the Company, its Parent and Subsidiaries and the Plan Participants.


 


Subject to the provisions of the Plan,
the Board or the Committee, as the case may be, may, in its sole discretion, from time to time delegate to the Chief Executive
Officer of the Company (the “CEO”) the authority, subject to such terms as the Board or the Committee, as the case
may be, to determine and designate from time to time the employees or other persons to whom Awards may be granted and to perform
other specified functions under the Plan; provided, however, that the CEO may not grant any Award to, or perform any function related
to an Award to, himself or any individual (i) then subject to Section 16 of the Exchange Act or (ii) who is or, in the determination
of the Board or the Committee, as the case may be, may become a Covered Employee, and any such grant or function relating to such
individuals shall be performed solely by the Board or the Committee, as the case may be, to ensure compliance with the applicable
requirements of the Exchange Act and the Code or (iii) where the grant or performance of such function by the CEO will cause the
Plan not to comply with any applicable regulation of any securities exchange or automated quotation system where the Stock is listed
for trading.


  


Any such delegation of authority by the
Board or the Committee, as the case may be, shall be by a resolution adopted by the Board or the Committee, as the case may be,
and shall specify all of the terms and conditions of the delegation. The resolution of the Board or the Committee, as the case
may be, granting such authority may authorize the CEO to grant Awards pursuant to the Plan and may set forth the types of Awards
that may be granted; provided, however, that the resolution shall (i) specify the maximum number of shares of Stock that may be
awarded to any individual Plan Participant and to all Participants during a specified period of time and (ii) specify the exercise
price (or the method for determining the exercise price), if any, of an Award, the vesting schedule, and any other terms, conditions,
or restrictions that may be imposed by the Board or the Committee, as the case may be, in its sole discretion. The resolution of
the Board or the Committee, as the case may be, shall also require the CEO to provide the Board or the Committee, as the case may
be, on at least a monthly basis, a report that identifies the Awards granted, the Awards granted pursuant to the delegated authority
and, with respect to each Award: the name of the Participant, the date of grant of the award, the number of shares of Stock, the
exercise price and period, if any, and the vesting provisions of such Award, the terms of such Awards, in all cases, being subject
to the resolutions of the Board or the Committee, as the case may be, granting such authority.


 




    	 



    	 



    

  


The Board or the Committee, or the case
may be, may also delegate to other officers of the Company, pursuant to a written delegation, the authority to perform specified
functions under the Plan that are not inconsistent with Rule 16b-3 or other rules or regulations applicable to the Plan. Any actions
taken by any officers of the Company pursuant to such written delegation of authority shall be deemed to have been taken by the
Board or the Committee, as the case may be.


 


Section 3. Stock Subject to Plan.


 


The total number of shares of Stock reserved
and available for distribution under the Plan shall be 8,000,000 shares. Such shares may consist, in whole or in part, of authorized
and unissued shares or treasury shares. The maximum number of shares of Stock with respect to which Incentive Stock Options may
be granted under the Plan shall be 5,000,000 shares of Stock. 


 


If any shares of Stock that have been optioned
cease to be subject to a Stock Option award for any reason (other than by issuance of such shares upon exercise of a Stock Option),
or if any shares of Stock that are subject to any Restricted Stock award are forfeited or any such award otherwise terminates without
the issuance of such shares, such shares shall again be available for distribution under the Plan. Without limiting the foregoing,
(i) any shares of Stock subject to an Award that remain unissued upon the cancellation, surrender, exchange or termination of such
Award without having been exercised or settled, (ii) any shares of Stock subject to an Award that are retained by the Company as
payment of the exercise price or tax withholding obligations with respect to an Award, and (iii) any shares of Stock equal to the
number of previously owned shares of Stock surrendered to the Company as payment of the exercise price of a Stock Option or to
satisfy tax withholding obligations with respect to an Award.


 


In the event of any merger, reorganization,
consolidation, recapitalization, stock dividend, stock split, extraordinary distribution with respect to the Stock or other change
in corporate structure affecting the Stock, such substitution or adjustments shall be made in the (A) aggregate number of shares
of Stock reserved for issuance under the Plan, (B) number, kind and exercise price of shares of Stock subject to outstanding Options
granted under the Plan, and (C) number, kind, purchase price and/or appreciation base of shares of Stock subject to other outstanding
Awards granted under the Plan, as may be determined to be appropriate by the Board or the Committee, as the case may be, in order
to prevent dilution or enlargement of rights; provided, however, that the number of shares of Stock subject to any Award shall
always be a whole number. Such adjusted exercise price shall also be used to determine the amount which is payable to the optionee
upon the exercise by the Board or the Committee, as the case may be, of the alternative settlement right which is set forth in
Section 5(b)(xi) below.  


  


Subject to the provisions of the immediately
preceding paragraph, the maximum number of shares of Stock with respect to which Options or Restricted Stock may be granted or
measured to any Participant under the Plan during any calendar year or part thereof shall not exceed 5,000,000 shares.


 


The maximum Cash Award that may be paid
to any Participant under the Plan during any calendar year shall not exceed $2,500,000.


 


Section 4. Eligibility.


 


Officers and other employees of the Company
or any Parent or Subsidiary (but excluding any person whose eligibility would adversely affect the compliance of the Plan with
the requirements of Rule 16b-3) who are at the time of the grant of an Award under the Plan employed by the Company or any Parent
or Subsidiary and who are responsible for or contribute to the management, growth and/or profitability of the business of the Company
or any Parent or Subsidiary are eligible to be granted Awards under the Plan. In addition, Non-Qualified Stock Options and other
Awards (but not Incentive Stock Options) may be granted under the Plan to any person, including, but not limited to, directors,
independent agents, consultants and attorneys who the Board or the Committee, as the case may be, believes has contributed or will
contribute to the success of the Company. Eligibility under the Plan shall be determined by the Board or the Committee, as the
case may be.


 


The Board or the Committee, as the case
may be, may, in its sole discretion, include additional conditions and restrictions in the agreement entered into in connection
with such Awards under the Plan. The grant of an Option or other Award under the Plan, and any determination made in connection
therewith, shall be made on a case by case basis and can differ among optionees and grantees. The grant of an Option or other Award
under the Plan is a privilege and not a right and the determination of the Board or the Committee, as the case may be, can be applied
on a non-uniform (discretionary) basis.


 




    	 



    	 



    

  


Section 5. Stock Options.


 


(a) Grant and Exercise. Stock Options granted
under the Plan may be of two types: (i) Incentive Stock Options and (ii) Non-Qualified Stock Options. Any Stock Option granted
under the Plan shall contain such terms as the Board or the Committee, as the case may be, may from time to time approve. The Board
or the Committee, as the case may be, shall have the authority to grant to any optionee Incentive Stock Options, Non-Qualified
Stock Options, or both types of Stock Options, and they may be granted alone or in addition to other awards granted under the Plan.
To the extent that any Stock Option is not designated as an Incentive Stock Option or does not qualify as an Incentive Stock Option,
it shall constitute a Non-Qualified Stock Option. The grant of an Option shall be deemed to have occurred on the date on which
the Board or the Committee, as the case may be, by resolution, designates an individual as a grantee thereof, and determines the
number of shares of Stock subject to, and the terms and conditions of, said Option, including the exercise price.


 


Anything in the Plan to the contrary notwithstanding,
no term of the Plan relating to Incentive Stock Options or any agreement providing for Incentive Stock Options shall be interpreted,
amended or altered, nor shall any discretion or authority granted under the Plan be exercised, so as to disqualify the Plan under
Section 422 of the Code, or, without the consent of the optionee(s) affected, to disqualify any Incentive Stock Option under said
Section 422.


 


(b) Terms and Conditions. Stock Options
granted under the Plan shall be subject to the following terms and conditions:


 


(i)       
  Option Price. The option price per share of Stock purchasable under a Stock Option shall be determined by the Board
or the Committee, as the case may be, at the time of the grant and shall not be less than 100% (110% in the case of an Incentive
Stock Option granted to an optionee who, at the time of grant, owns Stock possessing more than 10% of the total combined voting
power of all classes of stock of the Company or its Parent, if any, or its Subsidiaries (“10% Stockholder”)) of the
Fair Market Value of the Stock at the time the Stock Option is granted.


 


(ii)         Option
Term. The term of each Stock Option shall be fixed by the Board or the Committee, as the case may be, but no Incentive Stock Option
shall be exercisable more than ten years (five years, in the case of an Incentive Stock Option granted to a 10% Stockholder) after
the date on which the Option is granted.  


  


(iii)        Exercisability.
Stock Options shall be exercisable at such time or times and subject to such terms and conditions as shall be determined by the
Board or the Committee, as the case may be. If the Board or the Committee, as the case may be, provides, in its discretion, that
any Stock Option is exercisable only in installments, the Board or the Committee, as the case may be, may waive such installment
exercise provisions at any time at or after the time of grant in whole or in part, based upon such factors as the Board or the
Committee, as the case may be, shall determine.


 


(iv)        Method
of Exercise. Subject to whatever installment, exercise and waiting period provisions are applicable in a particular case, Stock
Options may be exercised in whole or in part at any time during the option period by giving written notice of exercise to the Company
specifying the number of shares of Stock to be purchased. Such notice shall be accompanied by payment in full of the exercise price
for the Stock Options exercised, which shall be in cash or, if provided in the Stock Option agreement referred to in Section 5(b)(xii)
below or otherwise provided by the Board, or Committee, as the case may be, either at or after the date of grant of the Stock Option,
in whole shares of Stock which are already owned by the holder of the Option or partly in cash and partly in such Stock. Cash payments
shall be made by wire transfer, certified or bank check or personal check, in each case payable to the order of the Company; provided,
however, that the Company shall not be required to deliver certificates for shares of Stock with respect to which an Option is
exercised until the Company has confirmed the receipt of good and available funds in payment of the purchase price thereof. If
permitted, payments of the exercise price and any tax required to be withheld by the Company in the form of Stock (which shall
be valued at the Fair Market Value of a share of Stock on the date of exercise) shall be made by delivery of stock certificates
in negotiable form which are effective to transfer good and valid title thereto to the Company, free of any liens or encumbrances.
In addition to the foregoing, payment of the exercise price may be made by delivery to the Company by the optionee of an executed
exercise form, together with irrevocable instructions to a broker-dealer to sell or margin a sufficient portion of the shares covered
by the option and deliver the sale or margin loan proceeds directly to the Company. Except as otherwise expressly provided in the
Plan or in the Stock Option agreement referred to in Section 5(b)(xii) below or otherwise provided by the Board or Committee, as
the case may be, either at or after the date of grant of the Option, no Option which is granted to a person who is at the time
of grant an employee of the Company or of a Subsidiary or Parent of the Company may be exercised at any time unless the holder
thereof is then an employee of the Company or of a Parent or a Subsidiary. The holder of an Option shall have none of the rights
of a stockholder with respect to the shares subject to the Option until the optionee has given written notice of exercise, has
paid in full for those shares of Stock and, if requested by the Board or Committee, as the case may be, has given the representation
described in Section 12(a) below.


 




    	 



    	 



    

  


(v)        Transferability;
Exercisability. No Stock Option shall be transferable by the optionee other than by will or by the laws of descent and distribution,
except as may be otherwise provided with respect to a Non-Qualified Option pursuant to the specific provisions of the Stock Option
agreement pursuant to which it was issued as referred to in Section 5(b)(xii) below (which agreement may be amended, from time
to time). Except as otherwise provided in the Stock Option agreement relating to a Non-Qualified Stock Option, all Stock Options
shall be exercisable, during the optionee's lifetime, only by the optionee or his or her guardian or legal representative.


 


(vi)        Termination
by Reason of Death. Subject to Section 5(b)(x) below, if an optionee's employment by the Company or any Parent or Subsidiary terminates
by reason of death, any Stock Option held by such optionee may thereafter be exercised, to the extent then exercisable or on such
accelerated basis as the Board or Committee, as the case may be, may determine at or after the time of grant, for a period of one
year (or such other period as the Board or the Committee, as the case may be, may specify at or after the time of grant) from the
date of death or until the expiration of the stated term of such Stock Option, whichever period is the shorter.


 


(vii)       Termination
by Reason of Disability. Subject to Section 5(b)(x) below, if an optionee's employment by the Company or any Parent or Subsidiary
terminates by reason of Disability, any Stock Option held by such optionee may thereafter be exercised by the optionee, to the
extent it was exercisable at the time of termination or on such accelerated basis as the Board or the Committee, as the case may
be, may determine at or after the time of grant, for a period of one year (or such other period as the Board or the Committee,
as the case may be, may specify at or after the time of grant) from the date of such termination of employment or until the expiration
of the stated term of such Stock Option, whichever period is the shorter; provided, however, that if the optionee dies within such
one year period (or such other period as the Board or the Committee, as the case may be, shall specify at or after the time of
grant), any unexercised Stock Option held by such optionee shall thereafter be exercisable to the extent to which it was exercisable
at the time of death for a period of one year from the date of death or until the expiration of the stated term of such Stock Option,
whichever period is the shorter.


  


(viii)      Termination
by Reason of Retirement. Subject to Section 5(b)(x) below, if an optionee's employment by the Company or any Parent or Subsidiary
terminates by reason of Normal Retirement, any Stock Option held by such optionee may thereafter be exercised by the optionee,
to the extent it was exercisable at the time of termination or on such accelerated basis as the Board or the Committee, as the
case may be, may determine at or after the time of grant, for a period of one year (or such other period as the Board or the Committee,
as the case may be, may specify at or after the time of grant) from the date of such termination of employment or the expiration
of the stated term of such Stock Option, whichever period is the shorter; provided, however, that if the optionee dies within such
one year period (or such other period as the Board or the Committee, as the case may be, shall specify at or after the date of
grant), any unexercised Stock Option held by such optionee shall thereafter be exercisable to the extent to which it was exercisable
at the time of death for a period of one year from the date of death or until the expiration of the stated term of such Stock Option,
whichever period is the shorter. If an optionee's employment with the Company or any Parent or Subsidiary terminates by reason
of Early Retirement, the Stock Option shall thereupon terminate; provided, however, that if the Board or the Committee, as the
case may be, so approves at the time of Early Retirement, any Stock Option held by the optionee may thereafter be exercised by
the optionee as provided above in connection with termination of employment by reason of Normal Retirement.


 


(ix)         Other
Termination. Subject to the provisions of Section 12(h) below, and unless otherwise determined by the Board or Committee, as the
case may be, at or after the time of grant, if an optionee's employment by the Company or any Parent or Subsidiary terminates for
any reason other than death, Disability or Retirement, the Stock Option shall thereupon automatically terminate, except that if
the optionee is involuntarily terminated by the Company or any Parent or a Subsidiary without Cause (as hereinafter defined), such
Stock Option may be exercised for a period of three months (or such other period as the Board or the Committee, as the case may
be, shall specify at or after the time of grant) from the date of such termination or until the expiration of the stated term of
such Stock Option, whichever period is shorter. For purposes of the Plan, “Cause” shall mean (1) the conviction of
the optionee of a felony under Federal law or the law of the state in which such action occurred, (2) dishonesty by the optionee
in the course of fulfilling his or her employment duties, or (3) the failure on the part of the optionee to perform his or her
employment duties in any material respect. In addition, with respect to an option granted to an employee of the Company, a Parent
or a Subsidiary, for purposes of the Plan, “Cause” shall also include any definition of “Cause” contained
in any employment agreement between the optionee and the Company, Parent or Subsidiary, as the case may be.


 


(x)         Additional
Incentive Stock Option Limitation. In the case of an Incentive Stock Option, the aggregate Fair Market Value of Stock (determined
at the time of grant of the Option) with respect to which Incentive Stock Options are exercisable for the first time by an individual
optionee during any calendar year (under all such plans of optionee's employer corporation and its Parent and Subsidiaries) shall
not exceed $100,000.


 




    	 



    	 



    

 


(xi)        Alternative
Settlement of Option. If provided for, upon the receipt of written notice of exercise or otherwise provided for by the Board or
Committee, as the case may be, either at or after the time of grant of the Stock Option, the Board or the Committee, as the case
may be, may elect to settle all or part of any Stock Option by paying to the optionee an amount, in cash or Stock (valued at Fair
Market Value on the date of exercise), equal to the product of the excess of the Fair Market Value of one share of Stock, on the
date of exercise over the Option exercise price, multiplied by the number of shares of Stock with respect to which the optionee
proposes to exercise the Option. Any such settlements which relate to Options which are held by optionees who are subject to Section
16(b) of the Exchange Act shall comply with any “window period” provisions of Rule 16b-3, to the extent applicable,
and with such other conditions as the Board or Committee, as the case may be, may impose.


 


(xii)       Stock
Option Agreement. Each grant of a Stock Option shall be confirmed by, and shall be subject to the terms of, an agreement executed
by the Company and the Participant.  An Incentive Stock Option granted pursuant to the Plan shall be issued substantially
in the form set forth in Appendix I hereof, which form is hereby incorporated by reference and made a part hereof, and shall contain
substantially the terms and conditions set forth therein.   A Non-Qualified Stock Option granted  to an
Employee pursuant to the Plan shall be issued substantially in the form set forth in Appendix II hereof, which form is hereby incorporated
by reference and made a part hereof, and shall contain substantially the terms and conditions set forth therein.  A Non-Qualified
Stock Option granted to a non-employee directors or consultants shall be issued substantially in the form set forth in Appendix
III hereof, which form is hereby incorporated by reference and made a part hereof, and shall contain substantially the terms and
conditions set forth therein. At the time of the grant of a Stock Option, the Board or Committee may, in the Board or Committee’s
sole discretion, amend or supplement any of the option terms contained in Appendix I, II or III hereof for any particular optionee,
provided that with respect to an Incentive Stock Option, the Stock Option satisfies the requirements for an Incentive Stock Option
set forth in the Code.


  


Section 6. Restricted Stock.


  


(a) Grant and Exercise. Shares of Restricted
Stock may be issued either alone or in addition to or in tandem with other awards granted under the Plan. The Board or the Committee,
as the case may be, shall determine the eligible persons to whom, and the time or times at which, grants of Restricted Stock will
be made, the number of shares to be awarded, the price (if any) to be paid by the recipient, the time or times within which such
Awards may be subject to forfeiture (the “Restriction Period”), the vesting schedule and rights to acceleration thereof,
and all other terms and conditions of the Awards. The Board or the Committee, as the case may be, may condition the grant of Restricted
Stock upon the attainment of such factors as the Board or the Committee, as the case may be, may determine.


 


(b) Terms and
Conditions. Each Restricted Stock award shall be subject to the following terms and conditions:


 


(i)      
   Restricted Stock, when issued, shall be represented by a stock certificate or certificates registered in the
name of the holder to whom such Restricted Stock shall have been awarded. During the Restriction Period, any certificates representing
the Restricted Stock and any securities constituting Retained Distributions (as defined below) shall bear a restrictive legend
to the effect that ownership of the Restricted Stock (and such Retained Distributions), and the enjoyment of all rights related
thereto, are subject to the restrictions, terms and conditions provided in the Plan and the Restricted Stock agreement referred
to in Section 6(b)(iv) below. Any such certificates shall be deposited by the holder with the Company, together with stock powers
or other instruments of assignment, endorsed in blank, which will permit transfer to the Company of all or any portion of the Restricted
Stock and any securities constituting Retained Distributions that shall be forfeited or that shall not become vested in accordance
with the Plan and the applicable Restricted Stock agreement.


 


(ii)         Restricted
Stock shall constitute issued and outstanding shares of Common Stock for all corporate purposes, and the issuance thereof shall
be made for at least the minimum consideration (if any) necessary to permit the shares of Restricted Stock to be deemed to be fully
paid and nonassessable. Unless the Board or the Committee, as the case may be, determines otherwise, the holder will have the right
to vote such Restricted Stock, to receive and retain all regular cash dividends and other cash equivalent distributions as the
Board or the Committee, as the case may be, may, in its sole discretion designate, pay or distribute on such Restricted Stock and
to exercise all other rights, powers and privileges of a holder of Stock with respect to such Restricted Stock, with the exceptions
that (A) the holder will not be entitled to delivery of the stock certificate or certificates representing such Restricted Stock
until the Restriction Period shall have expired and unless all other vesting requirements with respect thereto shall have been
fulfilled; (B) the Company will retain custody of the stock certificate or certificates representing the Restricted Stock during
the Restriction Period; (C) other than regular cash dividends and other cash equivalent distributions as the Board or the Committee,
as the case may be, may in its sole discretion designate, pay or distribute, the Company will retain custody of all distributions
(“Retained Distributions”) made or declared with respect to the Restricted Stock (and such Retained Distributions will
be subject to the same restrictions, terms and conditions as are applicable to the Restricted Stock) until such time, if ever,
as the Restricted Stock with respect to which such Retained Distributions shall have been made, paid or declared shall have become
vested and with respect to which the Restriction Period shall have expired; (D) the holder may not sell, assign, transfer, pledge,
exchange, encumber or dispose of the Restricted Stock or any Retained Distributions during the Restriction Period; and (E) a breach
of any of the restrictions, terms or conditions contained in the Plan or the Restricted Stock agreement referred to in Section
6(b)(iv) below, or otherwise established by the Board or the Committee, as the case may be, with respect to any Restricted Stock
or Retained Distributions will cause a forfeiture of such Restricted Stock and any Retained Distributions with respect thereto.
 


 




    	 



    	 



    

  


(iii)        Upon
the expiration of the Restriction Period with respect to each award of Restricted Stock and the satisfaction of any other applicable
restrictions, terms and conditions (A) all or part of such Restricted Stock shall become vested in accordance with the terms of
the Restricted Stock agreement referred to in Section 6(b)(iv) below, and (B) any Retained Distributions with respect to such Restricted
Stock shall become vested to the extent that the Restricted Stock related thereto shall have become vested. Any such Restricted
Stock and Retained Distributions that do not vest shall be forfeited to the Company and the holder shall not thereafter have any
rights with respect to such Restricted Stock and Retained Distributions that shall have been so forfeited.


 


(iv)        Restricted
Stock Agreement.  Each Restricted Stock award shall be confirmed by, and shall be subject to the terms of, an agreement executed
by the Company and the Participant.  A Restricted Stock award granted pursuant to the Plan shall be issued substantially
in the form set forth in Appendix IV hereof, which form is hereby incorporated by reference and made a part hereof, and shall contain
substantially the terms and conditions set forth therein. At the time of the grant of Restricted Stock, the Board or Committee
may, in the Board or Committee’s sole discretion, amend or supplement any of the terms contained in Appendix IV hereof for
any particular Restricted Stock holder.


  


Section 7. Cash Awards.


 


(a)          Grant.
Cash Awards may be issued under the Plan either alone or in addition to or in tandem with other Awards granted under the Plan or
other payments made to a Participant not under the plan. The Board or Committee, as the case may be, shall determine the eligible
persons to whom, and the time or times at which, cash awards will be made, the amount that is subject to the Cash award, the circumstances
and conditions under which such amount shall be paid, in whole or in part, the time of payment, and all other terms and conditions
of the Awards.


 


(b)          Written
agreement. Each Cash Award shall be confirmed by, and shall be subject to the terms of, an agreement executed.


 


(c)          Other
cash payments. This Section 7 shall not be construed to prohibit the Company from making cash payments not under the Plan to employees,
consultants, service providers, independent contractors and directors as determined by the Company in its sole discretion.


 


Section 8. Performance-Based Awards.


 


(a) In General. All Options, certain Restricted
Stock awards and Cash Awards wards  granted under the Plan, and the compensation attributable to such awards, are intended
to (i) qualify as Performance-Based Awards (as defined in the next sentence) or (ii) be otherwise exempt from the deduction limitation
imposed by Section 162(m) of the Code. Certain Awards granted under the Plan may be granted in a manner such that Awards qualify
as “performance-based compensation” (as such term is used in Section 162(m) of the Code and the regulations thereunder)
and thus be exempt from the deduction limitation imposed by Section 162(m) of the Code (“Performance-Based Awards”).
Awards may only qualify as Performance-Based Awards if they are granted by the Committee at a time when the Committee is comprised
solely of two or more “outside directors” (as such term is used in Section 162(m) of the Code and the regulations thereunder)
(“Qualifying Committee”).


 


(b) Options. Stock Options granted under
the Plan with an exercise price at or above the Fair Market Value of Common Stock on the date of grant are intended to qualify
as Performance-Based Awards.


 


(c) Other Performance-Based Awards. Restricted
Stock awards and Cash Awards granted under the Plan may qualify as Performance-Based Awards if, as determined by a Qualifying
Committee, in its discretion, either the granting of such award is subject to the achievement of a performance target or targets
based on one or more of the performance measures specified in Section 8(d) below. With respect to such awards intended to qualify
as Performance-Based Awards:


 




    	 



    	 



    

 


(1) the Qualifying Committee shall establish
in writing (x) the objective performance-based goals applicable to a given period and (y) the individual employees or class of
employees to which such performance-based goals apply no later than 90 days after the commencement of such period (but in no event
after 25 percent of such period has elapsed);


 


(2) no Performance-Based Awards shall be
payable to or vest with respect to, as the case may be, any Participant for a given period until the Qualifying Committee certifies
in writing that the objective performance goals (and any other material terms) applicable to such period have been satisfied; and


 


(3) after the establishment of a performance
goal, the Qualifying Committee shall not revise such performance goal or increase the amount of compensation payable thereunder
(as determined in accordance with Section 162(m) of the Code) upon the attainment of such performance goal.  


  


(d) Performance Measures. The Qualifying
Committee may use the following performance measures (either individually or in any combination) to set performance targets with
respect to awards intended to qualify as Performance-Based Awards: revenue; pretax income before allocation of corporate overhead
and bonus; budget; earnings per share; net income; division, group or corporate financial goals; return on stockholders’
equity; return on assets; return on net assets; return on investment capital; gross margin return on investment; gross margin dollars
or percent; payroll as a percentage of revenues; inventory shrink; employee turnover; sales, general and administrative expense;
attainment of strategic and operational initiatives; appreciation in and/or maintenance of the price of Common Stock or any other
publicly-traded securities of the Company, if any; market share; gross profits; earnings before interest and taxes; earnings before
interest, taxes, depreciation and amortization (“EBITDA”); EBITDA adjusted for non-cash or non-recurring items; economic
value-added models; comparisons with various stock market indices; achievement of technological or product development milestones;
and/or reductions in costs. The foregoing criteria shall have any reasonable definitions that the Qualifying Committee may specify,
which may include or exclude any or all of the following items as the Qualifying Committee may specify: extraordinary, unusual
or non-recurring items; effects of accounting changes; effects of financing activities; expenses for restructuring or productivity
initiatives; other non-operating items; spending for acquisitions; effects of divestitures; and effects of litigation activities
and settlements. Any such performance criterion or combination of such criteria may apply to the Participant’s award opportunity
in its entirety or to any designated portion or portions of the award opportunity, as the Qualifying Committee may specify.


 


Section 9. Change of Control Provisions.


 


(a) A “Change of Control” shall
be deemed to have occurred on the tenth day after:


 


(i)          any
individual, corporation or other entity or group (as defined in Section 13(d)(3) of the Exchange Act), becomes, directly or indirectly,
the beneficial owner (as defined in the General Rules and Regulations of the Securities and Exchange Commission with respect to
Sections 13(d) and 13(g) of the Exchange Act) of more than 50% of the then outstanding shares of the Company's capital stock entitled
to vote generally in the election of directors of the Company; or


 


(ii)         the
commencement of, or the first public announcement of the intention of any individual, firm, corporation or other entity or of any
group (as defined in Section 13(d)(3) of the Exchange Act) to commence, a tender or exchange offer subject to Section 14(d)(1)
of the Exchange Act for any class of the Company's capital stock; or


 


(iii)        the
stockholders of the Company approve (A) a definitive agreement for the merger or other business combination of the Company with
or into another corporation pursuant to which the stockholders of the Company do not own, immediately after the transaction, more
than 50% of the voting power of the corporation that survives, or (B) a definitive agreement for the sale, exchange or other disposition
of all or substantially all of the assets of the Company, or (C) any plan or proposal for the liquidation or dissolution of the
Company; provided, however, that a “Change of Control” shall not be deemed to have taken place if beneficial ownership
is acquired (A) directly from the Company, other than an acquisition by virtue of the exercise or conversion of another security
unless the security so converted or exercised was itself acquired directly from the Company, or (B) by, or a tender or exchange
offer is commenced or announced by, the Company, any profit-sharing, employee ownership or other employee benefit plan of the Company;
or any trustee of or fiduciary with respect to any such plan when acting in such capacity.


 


(b) In the event of a “Change of
Control” as defined in Section 9(a) above, and unless otherwise provided in a grant agreement, employment agreement or other
agreement between the Company and the Participant, Awards granted under the Plan will be subject to the following provisions, unless
the provisions of this Section 9 are suspended or terminated by an affirmative vote of a majority of the Board prior to the occurrence
of such a “Change of Control”:


 




    	 



    	 



    

 


(i)          all
outstanding Stock Options which have been outstanding for at least six months  shall become exercisable in full, whether
or not otherwise exercisable at such time, and any such Stock Option shall remain exercisable in full thereafter until it expires
pursuant to its terms; and


 


(ii)         all
restrictions and deferral limitations contained in Restricted Stock awards granted under the Plan shall lapse and the shares of
stock subject to such awards shall be distributed to the Participant within thirty (30) days of the “Change of Control.”
Notwithstanding the foregoing to the contrary, all restrictions and deferral limitations with respect to an Award to which Section
409A of the Code applies shall not lapse and no distribution made under this Section 9(b) unless the “Change of Control”
qualifies as a 409A Change and such lapse and distribution does not cause adverse tax consequences under Section 409A of the Code.
 


  


Section 10. Amendments and Termination.


 


The Board may at any time, and from time
to time, amend any of the provisions of the Plan, and may at any time suspend or terminate the Plan. The Board or the Committee,
as the case may be, may amend the terms of any Stock Option or other award theretofore granted under the Plan; provided, however,
that subject to Section 3 above, no such amendment may be made by the Board or the Committee, as the case may be, which in any
material respect impairs the rights of the Participant without the Participant's consent, except for such amendments which are
made to cause the Plan to qualify for the exemption provided by Rule 16b-3. Moreover, no Stock Option previously granted under
the Plan may be amended to reduce the exercise price of the Stock Option.


  


Section 11. Unfunded Status of Plan.


 


The Plan is intended to constitute an “unfunded”
plan for incentive and deferred compensation. With respect to any payments not yet made to a Participant or optionee by the Company,
nothing contained herein shall give any such Participant or optionee any rights that are greater than those of a creditor of the
Company.


 


Section 12. General Provisions.


 


(a) The Board or the Committee, as the
case may be, may require each person acquiring shares of Stock pursuant to an Option, Restricted Stock, or other award under the
Plan to represent to and agree with the Company in writing, among other things, that the optionee or Participant is acquiring the
shares for investment without a view to distribution thereof.


 


(b) All certificates for shares of Stock
delivered under the Plan shall be subject to such stop transfer orders and other restrictions as the Board or the Committee, as
the case may be, may deem to be advisable under the rules, regulations, and other requirements of the Securities and Exchange Commission,
any stock exchange or association upon which the Stock is then listed or traded, any applicable Federal or state securities law,
and any applicable corporate law, and the Board or the Committee, as the case may be, may cause a legend or legends to be put on
any such certificates to make appropriate reference to such restrictions.


 


(c) Nothing contained in the Plan shall
prevent the Board from adopting such other or additional incentive arrangements as it may deem desirable, including, but not limited
to, the granting of stock options and the awarding of stock and cash otherwise than under the Plan; and such arrangements may be
either generally applicable or applicable only in specific cases.


   


(d) Nothing contained in the Plan or in
any award hereunder shall be deemed to confer upon any employee of the Company or any Parent or Subsidiary any right to continued
employment with the Company or any Parent or Subsidiary, nor shall it interfere in any way with the right of the Company or any
Parent or Subsidiary to terminate the employment of any of its employees at any time.


 


(e) No later than the date as of which
an amount first becomes includable in the gross income of the Participant for Federal income tax purposes with respect to any Option,
Restricted Stock, Cash Award or other award under the Plan, the Participant shall pay to the Company, or make arrangements satisfactory
to the Board or the Committee, as the case may be, regarding the payment of, any Federal, state and local taxes of any kind required
by law to be withheld or paid with respect to such amount. If permitted by the Board or the Committee, as the case may be, tax
withholding or payment obligations may be settled with Stock, including Stock that is part of the award that gives rise to the
withholding requirement. The obligations of the Company under the Plan shall be conditional upon such payment or arrangements,
and the Company or the Participant's employer (if not the Company) shall, to the extent permitted by law, have the right to deduct
any such taxes from any payment of any kind otherwise due to the Participant from the Company or any Parent or Subsidiary.


 




    	 



    	 



    

 


(f) The Plan and all awards made and actions
taken thereunder shall be governed by and construed in accordance with the laws of the State of   Delaware (without
regard to choice of law provisions).


   


(g) Any Stock Option, Restricted Stock,
Cash Award or other award made under the Plan shall not be deemed compensation for purposes of computing benefits under any retirement
plan of the Company or any Parent or Subsidiary and shall not affect any benefits under any other benefit plan now or subsequently
in effect under which the availability or amount of benefits is related to the level of compensation (unless required by specific
reference in any such other plan to awards under the Plan).


 


(h) Subject to the requirements of Section
409A of the Code if applicable, a leave of absence, unless otherwise determined by the Board or the Committee, as the case may
be, prior to the commencement thereof, shall not be considered a termination of employment. Any Stock Option, Restricted Stock,
Cash Award or other awards made under the Plan shall not be affected by any change of employment, so long as the holder continues
to be an employee of the Company or any Parent or Subsidiary.


 


(i) Except as otherwise expressly provided
in the Plan or in any Stock Option agreement, Restricted Stock agreement or Cash Award agreement, no right or benefit under the
Plan may be alienated, sold, assigned, hypothecated, pledged, exchanged, transferred, encumbranced or charged, and any attempt
to alienate, sell, assign, hypothecate, pledge, exchange, transfer, encumber or charge the same shall be void. No right or benefit
hereunder shall in any manner be subject to the debts, contracts or liabilities of the person entitled to such benefit.


 


(j) The obligations of the Company with
respect to all Stock Options, Restricted Stock, Cash Awards and other awards under the Plan shall be subject to (A) all applicable
laws, rules and regulations, and such approvals by any governmental agencies as may be required, including, without limitation,
the effectiveness of a registration statement under the Securities Act, and (B) the rules and regulations of any securities exchange
or association on which the Stock may be listed or traded.


 


(k) If any of the terms or provisions of
the Plan conflicts with the requirements of Rule 16b-3 as in effect from time to time, or with the requirements of any other applicable
law, rule or regulation, and with respect to Incentive Stock Options, Section 422 of the Code, then such terms or provisions shall
be deemed inoperative to the extent they so conflict with the requirements of said Rule 16b-3, and with respect to Incentive Stock
Options, Section 422 of the Code. With respect to Incentive Stock Options, if the Plan does not contain any provision required
to be included herein under Section 422 of the Code, such provision shall be deemed to be incorporated herein with the same force
and effect as if such provision had been set out at length herein.


 


(l) The Board or the Committee, as the
case may be, may terminate any Stock Option, Restricted Stock, Cash Award or other award made under the Plan if a written agreement
relating thereto is not executed and returned to the Company within 30 days after such agreement has been delivered to the optionee
or Participant for his or her execution.


 


(m) The grant of awards pursuant to the
Plan shall not in any way effect the right or power of the Company to make reclassifications, reorganizations or other changes
of or to its capital or business structure or to merge, consolidate, liquidate, sell or otherwise dispose of all or any part of
its business or assets.


 


Section 13. Effective Date of Plan.


 


The Plan shall be effective upon the effective
date of a business combination with a public reporting company that, upon the effectiveness of such business combination, such
public reporting company shall have at least 2,000,000 authorized and unissued shares.


 


Section 14. Term of Plan.


 


No Stock Option, Restricted Stock or Cash
Award shall be granted pursuant to the Plan after the fifth anniversary of the effective date of the Plan, but awards granted on
or prior to such fifth anniversary may extend beyond that date.


 




    	 



    	 



    

 


Section 15. Section 409A of the Code
Compliance.


 


(a) Awards under the Plan are intended
either to be exempt from the rules of Section 409A of the Code or to satisfy those rules and shall be construed accordingly. If
intended to satisfy the applicable requirements of Section 409A of the Code, an Award and the Plan, as applicable, shall be performed
and interpreted consistent with such intent. If the Board or the Committee, as the case may be, determines in good faith that any
provision of this Plan does not satisfy such requirements or could cause any person to recognize additional taxes, penalties or
interest under Section 409A of the Code, the Board or the Committee, as the case may be, is empowered to modify, to the extent
practicable, the original intent of the applicable provision without violation of Section 409A of the Code. In addition, notwithstanding
any provision contained herein to the contrary, the Board or the Committee, as the case may be, shall have broad authority to amend
or to modify the Plan, without advance notice to or consent by any person, to the extent necessary or desirable to ensure compliance
with Section 409A of the Code. However, the Company shall not be liable to any Participant or other holder of an Award with respect
to any Award-related adverse tax consequences arising under Section 409A of the Code or other provision of the Code.


 


(b) If any provision of the Plan or an
Award agreement contravenes any regulations or treasury guidance promulgated under Section 409A of the Code or could cause an Award
to be subject to the interest and penalties under Section 409A of the Code, such provision of the Plan or Award shall be deemed
automatically modified to maintain, to the maximum extent practicable, the original intent of the applicable provision without
violating the provisions of Section 409A of the Code and the Board or the Committee, as the case may be, in its reasonable discretion,
may take such actions as it determines to avoid contravention of Section 409A of the Code. Moreover, any discretionary authority
that the Board or the Committee, as the case may be, may have pursuant to the Plan shall not be applicable to an Award that is
subject to Section 409A of the Code to the extent such discretionary authority will contravene Section 409A of the Code or the
treasury regulations or guidance promulgated thereunder.


 


(c) Notwithstanding any provisions of this
Plan or any Award granted hereunder to the contrary, no acceleration shall occur with respect to any Award to the extent such acceleration
would cause the Plan or an Award granted hereunder to fail to comply with Section 409A of the Code.


 


(d) Notwithstanding any provisions of this
Plan or any applicable Award agreement to the contrary, no payment shall be made with respect to any Award granted under this Plan
to a “specified employee” (as such term is defined for purposes of Section 409A of the Code) prior to the first date
that is at least six months after the employee’s separation of service to the extent such six-month delay in payment is required
to comply with Section 409A of the Code. To the extent required to comply with Section 409A of the Code, a termination of employment
shall not be deemed to have occurred for purposes of any payment or distribution upon or following a termination of employment
unless such termination is also a “separation from service” within the meaning of Section 409A of the Code and accordingly,
a reference to termination of employment, termination of service or like terms shall mean a “separation from service”
as the context may require.


 


(e) The Board or the Committee, as the
case may be, may adopt rules and procedures subject to the requirements of Section 409A of the Code to permit a Participant to
defer the receipt of any of the cash or Stock to be received pursuant to an Award.


 


(f) In the case of an Award providing for
the payment of deferred compensation subject to Section 409A of the Code, any payment of such deferred compensation by reason of
a “change of control” shall be made only if the “change of control” is (1) one described in Section 9 and
(2) one described in a 409A Change, and shall be paid consistent with the requirements of Section 409A of the Code. If any deferred
compensation that would otherwise be payable by reason of a “change of control” cannot be paid by reason of the immediately
preceding sentence, it shall be paid as soon as practicable thereafter consistent with the requirements of Section 409A of the
Code, as determined by the Board or the Committee, as the case may be.  


 




    	 



    	 



    

 


APPENDIX I


 


INCENTIVE STOCK OPTION


 


	To:	 	 
	 	Name	 
	 	 	 
	 	Address	 


 


Date of Grant:  _____________________


 


You (“Optionee”) are hereby
granted an option, effective as of the date hereof, to purchase __________ shares of common stock ("Common Stock"), of
Xcel Brands, Inc., a Delaware corporation (the "Company"), at a price of $ ___ per share pursuant to the Company's
Equity Incentive Plan (the "Plan").


 


This option shall terminate and is not
exercisable after ten years from the date of its grant (the "Scheduled Termination Date"), except if terminated earlier
as hereafter provided.


 


Your option may first be exercised on and
after one year from the date of grant, but not before that time.  On and after one year and prior to two years from the
date of grant, your option may be exercised for up to _________ % of the total number of shares subject to the option minus
the number of shares previously purchased by exercise of the option (as adjusted for any change in the outstanding shares of the
Common Stock of the Company by reason of a stock dividend, stock split, combination of shares, recapitalization, merger, consolidation,
transfer of assets, reorganization, conversion or what the Board or Committee deems in its sole discretion to be similar circumstances).  Each
succeeding year thereafter your option may be exercised for up to an additional __________ % of the total number of shares subject
to the option minus the number of shares previously purchased by exercise of the option (as adjusted for any change in the outstanding
shares of the Common Stock of the Company by reason of a stock dividend, stock split, combination of shares, recapitalization,
merger, consolidation, transfer of assets, reorganization, conversion or what the Board or Committee deems in its sole discretion
to be similar circumstances).  Thus, this option is fully exercisable on and after _________ years after the date of
grant, except if terminated earlier as provided herein.


 


You may exercise your option by giving
written notice to the Secretary of the Company on forms supplied by the Company at its then principal executive office, accompanied
by payment of the option price for the total number of shares you specify that you wish to purchase.  The payment may
be in any of the following forms: (a) cash, which may be evidenced by a check and includes cash received from a stock brokerage
firm in a so-called "cashless exercise"; (b) (unless prohibited by the Board or Committee) certificates representing
shares of Common Stock of the Company, which will be valued by the Secretary of the Company at the fair market value per share
of the Company's Common Stock (as determined in accordance with the Plan) on the date of delivery of such certificates to the Company,
accompanied by an assignment of the stock to the Company; or (c) (unless prohibited by the Board or Committee) any combination
of cash and Common Stock of the Company valued as provided in clause (b).  The use of the so-called "attestation
procedure") to exercise a stock option may be permitted by the Board or Committee. Any assignment of stock shall be in a form
and substance satisfactory to the Secretary of the Company, including guarantees of signature(s) and payment of all transfer taxes
if the Secretary deems such guarantees necessary or desirable.


 


Your option will, to the extent not previously
exercised by you, terminate three months after the date on which your employment by the Company or any Parent or Subsidiary is
terminated other than: (i)  by reason of Disability or death, in which case your option will terminate one year from
the date of termination of employment due to Disability or death (but in no event later than the Scheduled Termination Date) or
(ii) for Cause or your resignation, in which case your option will terminate immediately and you will forfeit any right to exercise
the option. After the date your employment is terminated, as aforesaid (other than for the reasons stated in clause ii), you may
exercise this option only for the number of shares which you had a right to purchase and did not purchase on the date your employment
terminated.  If you are employed by any Parent or Subsidiary, your employment shall be deemed to have terminated on the
date your employer ceases to be a Parent or Subsidiary, unless you are on that date transferred to the Company or another Parent
or Subsidiary.  Your employment shall not be deemed to have terminated if you are transferred from the Company to any
Parent or Subsidiary, or vice versa, or from one Subsidiary to another Subsidiary.  


 




    	 



    	 



    

 


If you die while employed by the Company
or any Parent or Subsidiary, your executor or administrator, as the case may be, may, at any time within one year after the date
of your death (but in no event later than the Scheduled Termination Date), exercise the option as to any shares which you had a
right to purchase and did not purchase during your lifetime.  If your employment with the Company or  any Parent
or Subsidiary n is terminated by reason of your Disability, you or your legal guardian or custodian may at any time within one
year after the date of such termination (but in no event later than the Scheduled Termination Date), exercise the option as to
any shares which you had a right to purchase and did not purchase prior to such termination.  Your executor, administrator,
guardian or custodian must present proof of his authority satisfactory to the Company prior to being allowed to exercise this option.


 


In the event of any change in the outstanding
shares of the Common Stock of the Company by reason of a stock dividend, stock split, combination of shares, recapitalization,
merger, consolidation, transfer of assets, reorganization, conversion or what the Board or Committee deems in its sole discretion
to be similar circumstances, the number and kind of shares subject to this option and the option price of such shares shall be
appropriately adjusted in a manner to be determined in the sole discretion of the Board or Committee, whose decision shall be final,
binding and conclusive in the absence of clear and convincing evidence of bad faith.


 


In the event of a liquidation or proposed
liquidation of the Company, including (but not limited to) a transfer of assets followed by a liquidation of the Company, or in
the event of a Change in Control or proposed Change in Control, the Board shall have the right to accelerate this option.


 


This option is not transferable otherwise
than by will or the laws of descent and distribution, and is exercisable during your lifetime only by you, including, for this
purpose, your legal guardian or custodian in the event of Disability.  Until the option price has been paid in full pursuant
to due exercise of this option and the purchased shares are delivered to you, you do not have any rights as a shareholder of the
Company.  The Company reserves the right not to deliver to you the shares purchased by virtue of the exercise of this
option during any period of time in which the Company deems, in its sole discretion, that such delivery would violate a federal,
state, local or securities exchange rule, regulation or law.


 


Notwithstanding anything to the contrary
contained herein, this option is not exercisable until all the following events occur and during the following periods of time:


 


(a)           Until
the Plan pursuant to which this option is granted is approved by the shareholders of the Company in the manner required by any
applicable provision of the Code and the regulations thereunder and any applicable securities exchange or listing rule or agreement;


 


(b)          Until
this option and the optioned shares are approved, registered and listed with such federal, state, local and foreign regulatory
bodies or agencies and securities exchanges as the Company may deem necessary or desirable, or the Company deems such option or
optioned shares to be exempted therefrom;


 


(c)           During
any period of time in which the Company deems that the exercisability of this option, the offer to sell the shares optioned hereunder,
or the sale thereof, may violate a federal, state, local or foreign law, rule or regulation, or any applicable securities exchange
or listing rule or agreement, or may cause the Company to be legally obligated to issue or sell more shares than the Company is
legally entitled to issue or sell; or


 


(d)          Until
you have paid or made suitable arrangements to pay (which may include payment through the surrender of Common Stock, unless prohibited
by the Board or Committee) (i) all federal, state, local and foreign tax withholding required by the Company in connection with
the option exercise and (ii) the employee's portion of other federal, state, local and foreign payroll and other taxes due in connection
with the option exercise.  


 




    	 



    	 



    

  


The following two paragraphs shall be applicable
if, on the date of exercise of this option, no registration statement and current prospectus under the Securities Act of 1933 covers
the Common Stock to be purchased pursuant to such exercise, and shall continue to be applicable for so long as such registration
has not occurred and such current prospectus is not available:


 


(a)           You
hereby agree, warrant and represent that you will acquire the Common Stock to be issued hereunder for your own account for investment
purposes only, and not with a view to, or in connection with, any resale or other distribution of any of such shares, except as
hereafter permitted.  You further agree that you will not at any time make any offer, sale, transfer, pledge or other
disposition of such Common Stock to be issued hereunder without an effective registration statement under the Securities Act of
1933, as amended, and under any applicable state securities laws or an opinion of counsel acceptable to the Company to the effect
that the proposed transaction will be exempt from such registration.  You agree to execute such instruments, representations,
acknowledgments and agreements as the Company may, in its sole discretion, deem advisable to avoid any violation of federal, state,
local or foreign law, rule or regulation, or any securities exchange rule or listing agreement.


 


(b)           The
certificates for the Common Stock to be issued to you hereunder shall bear the following legend:


 


"The shares represented by this certificate
have not been registered under the Securities Act of 1933, as amended, or under applicable state securities laws.  The
shares have been acquired for investment and may not be offered, sold, transferred, pledged or otherwise disposed of without an
effective registration statement under the Securities Act of 1933, as amended, and under any applicable state securities laws or
an opinion of counsel acceptable to the Company that the proposed transaction will be exempt from such registration."


 


The foregoing legend shall be removed upon
registration of the legended shares under the Securities Act of 1933, as amended, and under any applicable state laws, and the
availability of a current prospectus, or upon receipt of any opinion of counsel acceptable to the Company that such registration
and current prospectus are no longer required.


 


The sole purpose of the agreements, warranties,
representations and legend set forth in the two immediately preceding paragraphs is to prevent violations of the Securities Act
of 1933, as amended, and any applicable state securities laws.


 


It is the intention of the Company and
you that this option shall, if possible, be an "Incentive Stock Option" as that term is used in Section 422(b) of
the Code and the regulations thereunder.  In the event this option is in any way inconsistent with the legal requirements
of the Code or the regulations thereunder for an "Incentive Stock Option," this option shall be deemed automatically
amended as of the date hereof to conform to such legal requirements, if such conformity may be achieved by amendment.  To
the extent that the number of shares subject to this option which are exercisable for the first time exceed the $100,000 limitation
contained in Section 422(d) of the Code, this option will not be considered an Incentive Stock Option.


 


If shares of Common Stock acquired by exercise
of this option are disposed of within two (2) years following the date of grant or one (1) year following the issuance of the shares
to you (or any situation in which the option will be taxed as a non-qualified option), you shall, immediately prior to such disposition,
notify the Company in writing of the date and terms of such disposition and provide such other information regarding the disposition
as the Company may reasonably require .


 


Nothing herein shall modify your status
as an at-will employee of the Company or any Parent or Subsidiary.  Further, nothing herein guarantees you employment
for any specified period of time.  This means that either you or the Company or any Parent or Subsidiary may terminate
your employment at any time for any reason, with or without cause, or for no reason.  You recognize that, for instance,
you may terminate your employment or the Company or any Parent or Subsidiary may terminate your employment prior to the date on
which your option becomes vested or exercisable.  


 


You understand and agree that the existence
of this option will not affect in any way the right or power of the Company or its shareholders to make or authorize any or all
adjustments, recapitalizations, reorganizations, or other changes in the Company’s capital structure or its business, or
any merger or consolidation of the Company, or any issuance of bonds, debentures, preferred or other stocks with preference ahead
of or convertible into, or otherwise affecting the common shares or the rights thereof, or the dissolution or liquidation of the
Company, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether
of a similar character or otherwise.


 




    	 



    	 



    

  


Any notice you give to the Company must
be in writing and either hand-delivered or mailed to the office of the Company. If mailed, it should be addressed to  the
Chief Financial Officer of the Company at its then main headquarters. Any notice given to you will be addressed to you at your
address as reflected on the personnel records of the Company. You and the Company may change the address for notice by like notice
to the other. Notice will be deemed to have been duly delivered when hand-delivered or, if mailed, on the day such notice is postmarked.


 


In the event that any question or controversy
shall arise with respect to the nature, scope or extent of any one or more rights conferred by this option, or any provision of
this option, the determination in good faith by the Board of Directors of the Company (as constituted at the time of such determination)
of your rights as the Optionee shall be conclusive, final and binding upon you as the Optionee and upon any other person who shall
assert any right pursuant to this option.


 


This option shall be subject to the terms
of the Plan in effect on the date this option is granted, which terms are hereby incorporated herein by reference and made a part
hereof.  Capitalized terms used herein and not otherwise defined herein shall have the meaning given to such terms in
the Plan. In the event of any conflict between the terms of this option and the terms of the Plan in effect on the date of this
option, the terms of the Plan shall govern.  This option constitutes the entire understanding between the Company and
you with respect to the subject matter hereof and no amendment, supplement or waiver of this option, in whole or in part, shall
be binding upon the Company unless in writing and signed by the President of the Company.  This option and the performances
of the parties hereunder shall be construed in accordance with and governed by the laws of the State of Delaware.


 


Please sign the copy of this option and
return it to the Company's Secretary, thereby indicating your understanding of and agreement with its terms and conditions.


 


	 	XCEL BRANDS, INC.
	 	 
	 	By:	 


 




    	 



    	 



    

 


ACKNOWLEDGMENT


 


I hereby acknowledge receipt of a copy
of the Plan.  I hereby represent that I have read and understood the terms and conditions of the Plan and of this option.  I
hereby signify my understanding of, and my agreement with, the terms and conditions of the Plan and of this option.  I
agree to accept as binding, conclusive, and final all decisions or interpretations of the Board or Committee concerning any questions
arising under the Plan with respect to this option.  I accept this option in full satisfaction of any previous written
or verbal promise made to me by the Company or any Parent or Subsidiary with respect to option or stock grants.


 


	Date:  _____________	 	 
	 	Signature of Optionee
	 	 	 
	 	 	 
	 	Print Name


 




    	 



    	 



    

 


APPENDIX II


 


NON-QUALIFIED STOCK OPTION FOR OFFICERS
AND OTHER


EMPLOYEES


 


	To:	 	 
	 	Name	 
	 	 	 
	 	Address	 





 


Date of Grant:  _____________________


 


You (“Optionee”) are hereby
granted an option, effective as of the date hereof, to purchase __________ shares of common stock ("Common Stock"), of  Xcel
Brands, Inc. , a Delaware corporation (the "Company"), at a price of $ ___ per share pursuant to the Company's  Equity
Incentive Plan (the "Plan").


 


This option shall terminate and is not
exercisable after ten years from the date of its grant (the "Scheduled Termination Date"), except if terminated earlier
as hereafter provided.


 


Your option may first be exercised on and
after one year from the date of grant, but not before that time.  On and after one year and prior to two years from the
date of grant, your option may be exercised for up to ______% of the total number of shares subject to the option minus the number
of shares previously purchased by exercise of the option (as adjusted for any change in the outstanding shares of the Common Stock
of the Company by reason of a stock dividend, stock split, combination of shares, recapitalization, merger, consolidation, transfer
of assets, reorganization, conversion or what the Board or Committee deems in its sole discretion to be similar circumstances).  Each
succeeding year thereafter your option may be exercised for up to an additional _______% of the total number of shares subject
to the option minus the number of shares previously purchased by exercise of the option (as adjusted for any change in the outstanding
shares of the Common Stock of the Company by reason of a stock dividend, stock split, combination of shares, recapitalization,
merger, consolidation, transfer of assets, reorganization, conversion or what the Board or Committee deems in its sole discretion
to be similar circumstances).  Thus, this option is fully exercisable on and after _______ years after the date of grant,
except if terminated earlier as provided herein.


 


You may exercise your option by giving
written notice to the Secretary of the Company on forms supplied by the Company at its then principal executive office, accompanied
by payment of the option price for the total number of shares you specify that you wish to purchase.  The payment may
be in any of the following forms: (a) cash, which may be evidenced by a check and includes cash received from a stock brokerage
firm in a so-called "cashless exercise"; (b) (unless prohibited by the Board or Committee) certificates representing
shares of Common Stock of the Company, which will be valued by the Secretary of the Company at the fair market value per share
of the Company's Common Stock (as determined in accordance with the Plan) on the date of delivery of such certificates to the Company,
accompanied by an assignment of the stock to the Company; or (c) (unless prohibited by the Board or Committee) any combination
of cash and Common Stock of the Company valued as provided in clause (b).  The use of the so-called "attestation
procedure" to exercise a stock option may be permitted by the Board or Committee. Any assignment of stock shall be in a form
and substance satisfactory to the Secretary of the Company, including guarantees of signature(s) and payment of all transfer taxes
if the Secretary deems such guarantees necessary or desirable.  


  


Your option will, to the extent not previously
exercised by you, terminate three months after the date on which your employment by the Company or  any Parent or Subsidiary
is terminated other than: (i)  by reason of Disability or death, in which case your option will terminate one year from
the date of termination of employment due to Disability or death (but in no event later than the Scheduled Termination Date) or
(ii) for Cause or your resignation, in which case your option will terminate immediately and you will forfeit any right to exercise
the option. After the date your employment is terminated, as aforesaid (other than for the reasons stated in clause ii), you may
exercise this option only for the number of shares which you had a right to purchase and did not purchase on the date your employment
terminated.  If you are employed by any Parent or Subsidiary, your employment shall be deemed to have terminated on the
date your employer ceases to be a Parent or Subsidiary, unless you are on that date transferred to the Company or another Parent
or Subsidiary.  Your employment shall not be deemed to have terminated if you are transferred from the Company to any
Parent or Subsidiary, or vice versa, or from one Subsidiary to another Subsidiary.


 




    	 



    	 



    

  


If you die while employed by the Company
or any Parent or Subsidiary, your executor or administrator, as the case may be, may, at any time within one year after the date
of your death (but in no event later than the Scheduled Termination Date), exercise the option as to any shares which you had a
right to purchase and did not purchase during your lifetime.  If your employment with the Company or any Parent or Subsidiary
is terminated by reason of your Disability, you or your legal guardian or custodian may at any time within one year after the date
of such termination (but in no event later than the Scheduled Termination Date), exercise the option as to any shares which you
had a right to purchase and did not purchase prior to such termination.  Your executor, administrator, guardian or custodian
must present proof of his authority satisfactory to the Company prior to being allowed to exercise this option.


 


In the event of any change in the outstanding
shares of the Common Stock of the Company by reason of a stock dividend, stock split, combination of shares, recapitalization,
merger, consolidation, transfer of assets, reorganization, conversion or what the Board or Committee deems in its sole discretion
to be similar circumstances, the number and kind of shares subject to this option and the option price of such shares shall be
appropriately adjusted in a manner to be determined in the sole discretion of the Board or Committee, whose decision shall be final,
binding and conclusive in the absence of clear and convincing evidence of bad faith.


 


In the event of a liquidation or proposed
liquidation of the Company, including (but not limited to) a transfer of assets followed by a liquidation of the Company, or in
the event of a Change in Control or proposed Change in Control, the Board shall have the right to accelerate this option.


 


This option is not transferable otherwise
than by will or the laws of descent and distribution, and is exercisable during your lifetime only by you, including, for this
purpose, your legal guardian or custodian in the event of Disability.  Until the option price has been paid in full pursuant
to due exercise of this option and the purchased shares are delivered to you, you do not have any rights as a shareholder of the
Company.  The Company reserves the right not to deliver to you the shares purchased by virtue of the exercise of this
option during any period of time in which the Company deems, in its sole discretion, that such delivery would violate a federal,
state, local or securities exchange rule, regulation or law.


 


Notwithstanding anything to the contrary
contained herein, this option is not exercisable until all the following events occur and during the following periods of time:


 


(a)           Until
the Plan pursuant to which this option is granted is approved by the shareholders of the Company in the manner required by any
applicable provision of the Code and the regulations thereunder and any applicable securities exchange or listing rule or agreement;


 


(b)           Until
this option and the optioned shares are approved, registered and listed with such federal, state, local and foreign regulatory
bodies or agencies and securities exchanges as the Company may deem necessary or desirable, or the Company deems such option or
optioned shares to be exempted therefrom;


 


(c)           During
any period of time in which the Company deems that the exercisability of this option, the offer to sell the shares optioned hereunder,
or the sale thereof, may violate a federal, state, local or foreign law, rule or regulation, or any applicable securities exchange
or listing rule or agreement, or may cause the Company to be legally obligated to issue or sell more shares than the Company is
legally entitled to issue or sell; or  


  


(d)           Until
you have paid or made suitable arrangements to pay (which may include payment through the surrender of Common Stock, unless prohibited
by the Board or Committee) (i) all federal, state, local and foreign tax withholding required by the Company in connection with
the option exercise and (ii) the employee's portion of other federal, state, local and foreign payroll and other taxes due in connection
with the option exercise.


 




    	 



    	 



    

  


The following two paragraphs shall be applicable
if, on the date of exercise of this option, no registration statement and current prospectus under the Securities Act of 1933 covers
the Common Stock to be purchased pursuant to such exercise, and shall continue to be applicable for so long as such registration
has not occurred and such current prospectus is not available:


 


(a)           You
hereby agree, warrant and represent that you will acquire the Common Stock to be issued hereunder for your own account for investment
purposes only, and not with a view to, or in connection with, any resale or other distribution of any of such shares, except as
hereafter permitted.  You further agree that you will not at any time make any offer, sale, transfer, pledge or other
disposition of such Common Stock to be issued hereunder without an effective registration statement under the Securities Act of
1933, as amended, and under any applicable state securities laws or an opinion of counsel acceptable to the Company to the effect
that the proposed transaction will be exempt from such registration.  You agree to execute such instruments, representations,
acknowledgments and agreements as the Company may, in its sole discretion, deem advisable to avoid any violation of federal, state,
local or foreign law, rule or regulation, or any securities exchange rule or listing agreement.


 


(b)           The
certificates for the Common Stock to be issued to you hereunder shall bear the following legend:


 


"The shares represented by this certificate
have not been registered under the Securities Act of 1933, as amended, or under applicable state securities laws.  The
shares have been acquired for investment and may not be offered, sold, transferred, pledged or otherwise disposed of without an
effective registration statement under the Securities Act of 1933, as amended, and under any applicable state securities laws or
an opinion of counsel acceptable to the Company that the proposed transaction will be exempt from such registration."


 


The foregoing legend shall be removed upon
registration of the legended shares under the Securities Act of 1933, as amended, and under any applicable state laws or upon receipt
of any opinion of counsel acceptable to the Company that said registration is no longer required.


 


The sole purpose of the agreements, warranties,
representations and legend set forth in the two immediately preceding paragraphs is to prevent violations of the Securities Act
of 1933, as amended, and any applicable state securities laws.


 


It is the intention of the Company and
you that this option shall not be an “Incentive Stock Option” as that term is used in Section 422(b) of the Code
and the regulations thereunder.


 


Nothing herein shall modify your status
as an at-will employee of the Company or any Parent or Subsidiary.  Further, nothing herein guarantees you employment
for any specified period of time.  This means that either you or the Company or any Parent or Subsidiary may terminate
your employment at any time for any reason, with or without cause, or for no reason.  You recognize that, for instance,
you may terminate your employment or the Company or any Parent or Subsidiary may terminate your employment prior to the date on
which your option becomes vested or exercisable.


 


You understand and agree that the existence
of this option will not affect in any way the right or power of the Company or its shareholders to make or authorize any or all
adjustments, recapitalizations, reorganizations, or other changes in the Company’s capital structure or its business, or
any merger or consolidation of the Company, or any issuance of bonds, debentures, preferred or other stocks with preference ahead
of or convertible into, or otherwise affecting the common shares or the rights thereof, or the dissolution or liquidation of the
Company, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether
of a similar character or otherwise.  


  


Any notice you give to the Company must
be in writing and either hand-delivered or mailed to the office of the Company . If mailed, it should be addressed to the
Chief Financial Officer of the Company at its then main headquarters. Any notice given to you will be addressed to you at your
address as reflected on the personnel records of the Company. You and the Company may change the address for notice by like notice
to the other. Notice will be deemed to have been duly delivered when hand-delivered or, if mailed, on the day such notice is postmarked.


 




    	 



    	 



    

  


In the event that any question or controversy
shall arise with respect to the nature, scope or extent of any one or more rights conferred by this option, or any provision of
this option, the determination in good faith by the Board of Directors of the Company (as constituted at the time of such determination)
of your rights as the Optionee shall be conclusive, final and binding upon you as the Optionee and upon any other person who shall
assert any right pursuant to this option.


 


This option shall be subject to the terms
of the Plan in effect on the date this option is granted, which terms are hereby incorporated herein by reference and made a part
hereof.  Capitalized terms used herein and not otherwise defined herein shall have the meaning given to such terms in
the Plan.  In the event of any conflict between the terms of this option and the terms of the Plan in effect on the date
of this option, the terms of the Plan shall govern.  This option constitutes the entire understanding between the Company
and you with respect to the subject matter hereof and no amendment, supplement or waiver of this option, in whole or in part, shall
be binding upon the Company unless in writing and signed by the President of the Company.  This option and the performances
of the parties hereunder shall be construed in accordance with and governed by the laws of the State of Delaware.


 


Please sign the copy of this option and
return it to the Company's Secretary, thereby indicating your understanding of and agreement with its terms and conditions .


 


	 	XCEL BRANDS GROUP, INC.
	 	 
	 	By:	 


 




    	 



    	 



    

 


ACKNOWLEDGMENT


 


I hereby acknowledge receipt of a copy
of the Plan.  I hereby represent that I have read and understood the terms and conditions of the Plan and of this option.  I
hereby signify my understanding of, and my agreement with, the terms and conditions of the Plan and of this option.  I
agree to accept as binding, conclusive, and final all decisions or interpretations of the Board or Committee concerning any questions
arising under the Plan with respect to this option.  I accept this option in full satisfaction of any previous written
or verbal promise made to me by the Company or any Parent or Subsidiary with respect to option or stock grants.


 


	Date:  _____________	 	 
	 	Signature of Optionee
	 	 	 
	 	 	 
	 	Print Name


  




    	 



    	 



    

 


APPENDIX III


 


NON-QUALIFIED STOCK OPTION FOR DIRECTORS


AND CONSULTANTS


 


	To:	 	 
	 	Name	 
	 	 	 
	 	Address	 


 


Date of Grant:  _____________________


 


You (“Optionee”) are hereby
granted an option, effective as of the date hereof, to purchase __________ shares of common stock ("Common Stock"), of
Xcel Brands Group, Inc., a Delaware corporation (the "Company"), at a price of $ ____ per share pursuant to the
Company's  Equity Incentive Plan (the "Plan").


 


This option shall terminate and is not
exercisable after ten years from the date of its grant (the "Scheduled Termination Date"), except if terminated earlier
as hereafter provided.


 


Your option may first be exercised on and
after one year from the date of grant, but not before that time.  On and after one year and prior to two years from the
date of grant, your option may be exercised for up to _____% of the total number of shares subject to the option minus the number
of shares previously purchased by exercise of the option (as adjusted for any change in the outstanding shares of the Common Stock
of the Company by reason of a stock dividend, stock split, combination of shares, recapitalization, merger, consolidation, transfer
of assets, reorganization, conversion or what the Board or Committee deems in its sole discretion to be similar circumstances).  Each
succeeding year thereafter your option may be exercised for up to an additional ____% of the total number of shares subject to
the option minus the number of shares previously purchased by exercise of the option (as adjusted for any change in the outstanding
shares of the Common Stock of the Company by reason of a stock dividend, stock split, combination of shares, recapitalization,
merger, consolidation, transfer of assets, reorganization, conversion or what the Board or Committee deems in its sole discretion
to be similar circumstances).  Thus, this option is fully exercisable on and after ________ years after the date of grant,
except if terminated earlier as provided herein.


 


You may exercise your option by giving
written notice to the Secretary of the Company on forms supplied by the Company at its then principal executive office, accompanied
by payment of the option price for the total number of shares you specify that you wish to purchase.  The payment may
be in any of the following forms: (a) cash, which may be evidenced by a check and includes cash received from a stock brokerage
firm in a so-called "cashless exercise"; (b) (unless prohibited by the Board or Committee) certificates representing
shares of Common Stock of the Company, which will be valued by the Secretary of the Company at the fair market value per share
of the Company's Common Stock (as determined in accordance with the Plan) on the date of delivery of such certificates to the Company,
accompanied by an assignment of the stock to the Company; or (c) (unless prohibited by the Board or Committee) any combination
of cash and Common Stock of the Company valued as provided in clause (b).  The use of the so-called "attestation
procedure" to exercise a stock option may be permitted by the Board or Committee. Any assignment of stock shall be in a form
and substance satisfactory to the Secretary of the Company, including guarantees of signature(s) and payment of all transfer taxes
if the Secretary deems such guarantees necessary or desirable.


 


Your option will, to the extent not previously
exercised by you, terminate three months after the date on which your directorship or consultancy by the Company or any Parent
or Subsidiary is terminated other than by reason of (i) Disability or death, in which case your option will terminate one year
from the date of termination of directorship or consultancy due to Disability or death (but in no event later than the Scheduled
Termination Date) or (ii) for Cause or your resignation, in which case your option will terminate immediately and you will forfeit
any right to exercise the option. After the date your directorship or consultancy is terminated, as aforesaid (other than for the
reasons stated in clause (ii), you may exercise this option only for the number of shares which you had a right to purchase and
did not purchase on the date your directorship or consultancy terminated. Provided you are willing to continue your directorship
or consultancy for the Company or a successor after a Change in Control at the same compensation you enjoyed immediately prior
to such Change in Control, if your directorship or consultancy is involuntarily terminated without cause after a Change in Control,
you may exercise this option for the number of shares you would have had a right to purchase on the date of an Acceleration Event.
If you are employed by any Parent or Subsidiary, your directorship or consultancy shall be deemed to have terminated on the date
your employer ceases to be a Parent or Subsidiary, unless you are on that date transferred to the Company or another Parent or
Subsidiary.  Your directorship or consultancy shall not be deemed to have terminated if you are transferred from the
Company to a Parent or Subsidiary, or vice versa, or from one Subsidiary to another Subsidiary.  


 




    	 



    	 



    

   


If you die while acting as a director of
consultant of  the Company or any Parent or Subsidiary, your executor or administrator, as the case may be, may, at any
time within one year after the date of your death (but in no event later than the Scheduled Termination Date), exercise the option
as to any shares which you had a right to purchase and did not purchase during your lifetime.  If your directorship or
consultancy with the Company or  any Parent or Subsidiary is terminated by reason of your Disability, you or your legal
guardian or custodian may at any time within one year after the date of such termination (but in no event later than the Scheduled
Termination Date), exercise the option as to any shares which you had a right to purchase and did not purchase prior to such termination.  Your
executor, administrator, guardian or custodian must present proof of his authority satisfactory to the Company prior to being allowed
to exercise this option.


 


In the event of any change in the outstanding
shares of the Common Stock of the Company by reason of a stock dividend, stock split, combination of shares, recapitalization,
merger, consolidation, transfer of assets, reorganization, conversion or what the Board or Committee deems in its sole discretion
to be similar circumstances, the number and kind of shares subject to this option and the option price of such shares shall be
appropriately adjusted in a manner to be determined in the sole discretion of the Board or Committee, whose decision shall be final,
binding and conclusive in the absence of clear and convincing evidence of bad faith.


 


In the event of a liquidation or proposed
liquidation of the Company, including (but not limited to) a transfer of assets followed by a liquidation of the Company, or in
the event of a Change in Control or proposed Change in Control, the Board shall have the right to accelerate this option.


 


This option is not transferable otherwise
than by will or the laws of descent and distribution, and is exercisable during your lifetime only by you, including, for this
purpose, your legal guardian or custodian in the event of Disability.  Until the option price has been paid in full pursuant
to due exercise of this option and the purchased shares are delivered to you, you do not have any rights as a shareholder of the
Company.  The Company reserves the right not to deliver to you the shares purchased by virtue of the exercise of this
option during any period of time in which the Company deems, in its sole discretion, that such delivery would violate a federal,
state, local or securities exchange rule, regulation or law.


 


Notwithstanding anything to the contrary
contained herein, this option is not exercisable until all the following events occur and during the following periods of time:


 


(a)           Until
the Plan pursuant to which this option is granted is approved by the shareholders of the Company in the manner required by any
applicable provision of the Code and the regulations thereunder and any applicable securities exchange or listing rule or agreement;


 


(b)           Until
this option and the optioned shares are approved, registered and listed with such federal, state, local and foreign regulatory
bodies or agencies and securities exchanges as the Company may deem necessary or desirable, or the Company deems such option or
optioned shares to be exempted therefrom;


 


(c)           During
any period of time in which the Company deems that the exercisability of this option, the offer to sell the shares optioned hereunder,
or the sale thereof, may violate a federal, state, local or foreign law, rule or regulation, or any applicable securities exchange
or listing rule or agreement, or may cause the Company to be legally obligated to issue or sell more shares than the Company is
legally entitled to issue or sell; or  


  




    	 



    	 



    

 


(d)          Until
you have paid or made suitable arrangements to pay (which may include payment through the surrender of Common Stock, unless prohibited
by the Board or Committee) (i) all federal, state, local and foreign tax withholding required by the Company in connection with
the option exercise and (ii) the employee's portion of other federal, state, local and foreign payroll and other taxes due in connection
with the option exercise.


 


The following two paragraphs shall be applicable
if, on the date of exercise of this option, no registration statement and current prospectus under the Securities Act of 1933 covers
the Common Stock to be purchased pursuant to such exercise, and shall continue to be applicable for so long as such registration
has not occurred and such current prospectus is not available:


 


(a)           You
hereby agree, warrant and represent that you will acquire the Common Stock to be issued hereunder for your own account for investment
purposes only, and not with a view to, or in connection with, any resale or other distribution of any of such shares, except as
hereafter permitted.  You further agree that you will not at any time make any offer, sale, transfer, pledge or other
disposition of such Common Stock to be issued hereunder without an effective registration statement under the Securities Act of
1933, as amended, and under any applicable state securities laws or an opinion of counsel acceptable to the Company to the effect
that the proposed transaction will be exempt from such registration.  You agree to execute such instruments, representations,
acknowledgments and agreements as the Company may, in its sole discretion, deem advisable to avoid any violation of federal, state,
local or foreign law, rule or regulation, or any securities exchange rule or listing agreement.


 


(b)           The
certificates for the Common Stock to be issued to you hereunder shall bear the following legend:


 


"The shares represented by this certificate
have not been registered under the Securities Act of 1933, as amended, or under applicable state securities laws.  The
shares have been acquired for investment and may not be offered, sold, transferred, pledged or otherwise disposed of without an
effective registration statement under the Securities Act of 1933, as amended, and under any applicable state securities laws or
an opinion of counsel acceptable to the Company that the proposed transaction will be exempt from such registration."


 


The foregoing legend shall be removed upon
registration of the legended shares under the Securities Act of 1933, as amended, and under any applicable state laws or upon receipt
of any opinion of counsel acceptable to the Company that said registration is no longer required.


 


The sole purpose of the agreements, warranties,
representations and legend set forth in the two immediately preceding paragraphs is to prevent violations of the Securities Act
of 1933, as amended, and any applicable state securities laws.


 


It is the intention of the Company and
you that this option shall not be an "Incentive Stock Option" as that term is used in Section 422(b) of the Code
and the regulations thereunder.


 


Nothing herein guarantees your term
as a director of, or consultant to, the Company or any Parent or Subsidiary for any specified period of time.  This means
that either you or the Company or any Parent or Subsidiary may terminate your directorship or consultancy at any time for any reason,
with or without cause, or for no reason.  You recognize that, for instance, the Company or any Parent or Subsidiary may
terminate your directorship or consultancy with the Company or any Parent or Subsidiary prior to the date on which your option
becomes vested or exercisable.


 


You understand and agree that the existence
of this option will not affect in any way the right or power of the Company or its shareholders to make or authorize any or all
adjustments, recapitalizations, reorganizations, or other changes in the Company’s capital structure or its business, or
any merger or consolidation of the Company, or any issuance of bonds, debentures, preferred or other stocks with preference ahead
of or convertible into, or otherwise affecting the common shares or the rights thereof, or the dissolution or liquidation of the
Company, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether
of a similar character or otherwise.  


  


Any notice you give to the Company must
be in writing and either hand-delivered or mailed to the office of the Company. If mailed, it should be addressed to the Chief
Financial Officer of the Company at its then main headquarters. Any notice given to you will be addressed to you at your address
as reflected on the records of the Company. You and the Company may change the address for notice by like notice to the other.
Notice will be deemed to have been duly delivered when hand-delivered or, if mailed, on the day such notice is postmarked.


 




    	 



    	 



    

  


In the event that any question or controversy
shall arise with respect to the nature, scope or extent of any one or more rights conferred by this option, or any provision of
this option, the determination in good faith by the Board of Directors of the Company (as constituted at the time of such determination)
of your rights as the Optionee shall be conclusive, final and binding upon you as the Optionee and upon any other person who shall
assert any right pursuant to this option.


 


This option shall be subject to the terms
of the Plan in effect on the date this option is granted, which terms are hereby incorporated herein by reference and made a part
hereof.  Capitalized terms used herein and not otherwise defined herein shall have the meaning given to such terms in
the Plan.  In the event of any conflict between the terms of this option and the terms of the Plan in effect on the date
of this option, the terms of the Plan shall govern.  This option constitutes the entire understanding between the Company
and you with respect to the subject matter hereof and no amendment, supplement or waiver of this option, in whole or in part, shall
be binding upon the Company unless in writing and signed by the President of the Company.  This option and the performances
of the parties hereunder shall be construed in accordance with and governed by the laws of the State of Delaware.


 


Please sign the copy of this option and
return it to the Company's Secretary, thereby indicating your understanding of and agreement with its terms and conditions.


 


	 	XCEL BRANDS, INC.
	 	 
	 	By:	 


 




    	 



    	 



    

 


ACKNOWLEDGMENT


 


I hereby acknowledge receipt of a copy
of the Plan.  I hereby represent that I have read and understood the terms and conditions of the Plan and of this option.  I
hereby signify my understanding of, and my agreement with, the terms and conditions of the Plan and of this option.  I
agree to accept as binding, conclusive, and final all decisions or interpretations of the Board or Committee concerning any questions
arising under the Plan with respect to this option.  I accept this option in full satisfaction of any previous written
or verbal promise made to me by the Company or any Parent or Subsidiary with respect to option or Stock grants.


 


	Date:  _____________	 	 
	 	Signature of Optionee
	 	 	 
	 	 	 
	 	Print Name
	 


 




    	 



    	 



    

 


APPENDIX IV


 


RESTRICTED STOCK AGREEMENT


 


To:


 


Date of Award:


 


You are hereby awarded, effective as of
the date hereof (the “Award Date”), _________ shares (the “Shares”) of common stock (“Common
Stock”), of Xcel Brands, Inc., a Delaware corporation (the “Company”), pursuant to the Company’s Equity
Incentive Plan (the “Plan”), subject to certain restrictions specified below in Restrictions and Forfeiture.
(While subject to the Restrictions, this Agreement refers to the Shares as “Restricted Shares”).


 


During the period commencing on the Award
Date and terminating on ________________ (the “Restricted Period”), except as otherwise provided herein, the
Shares may not be sold, assigned, transferred, pledged, or otherwise encumbered and are subject to forfeiture (the “Restrictions”).


 


Except as set forth below, the Restricted
Period with respect to the Shares will lapse in accordance with the vesting schedule set forth below (the “Vesting Schedule”).  Subject
to the restrictions set forth in the Plan, the Board or Committee shall have the authority, in its discretion, to accelerate the
time at which any or all of the Restrictions shall lapse with respect to any Shares subject thereto, or to remove any or all of
such Restrictions, whenever the Board or Committee may determine that such action is appropriate by reason of changes in applicable
tax or other laws, or other changes in circumstances occurring after the commencement of the Restricted Period.


 


In addition to the terms, conditions, and
restrictions set forth in the Plan, the following terms, conditions, and restrictions apply to the Restricted Shares:


 


	Restrictions and Forfeiture	 	You may not sell, assign, pledge, encumber, or otherwise transfer any interest in the Restricted Shares until the dates set forth in the Vesting Schedule, at which point the Restricted Shares will be referred to as “ Vested. ”


 


	Vesting Schedule	 	Assuming you provide Continuous Service (as defined herein) as an employee of the Company or any Parent or Subsidiary of the Company, all Restrictions will lapse on the Restricted Shares on the Vesting date or Vesting dates set forth in the schedule below for the applicable grant of Restricted Shares and they will become Vested.


 


	Vesting Schedule
	 
	Vesting Date	 	Number of Restricted Shares that Vest
	 	 	 





	Continuous Service	 	“Continuous Service,” as used herein, means the absence of any interruption or termination of your service as an employee of the Company or any Parent or Subsidiary.  If you are employed by a Parent or Subsidiary, your employment shall be deemed to have terminated on the date your employer ceases to be a Parent or Subsidiary, unless you are on that date transferred to the Company or another Parent or Subsidiary.  Service shall not be considered interrupted in the case of sick leave, military leave or any other leave of absence approved by the Company or any then Parent or Subsidiary.  Your employment shall not be deemed to have terminated if you are transferred from the Company to any Parent or Subsidiary, or vice versa, or from one Subsidiary to another Subsidiary.


  


	 Share Certificates	 	The Company will issue a certificate (or certificates) in your name with respect to the Shares, and will hold such certificate (or certificates) on deposit for your account until the expiration of the Restricted Period with respect to the Shares represented thereby.  Such certificate (or certificates) will contain the following restrictive legend:


  




    	 



    	 



    

  


	 	 	“The transferability of this certificate and the shares of stock represented hereby are subject to the terms and conditions (including forfeiture) contained in the Equity Incentive Plan of the Company, copies of which are on file in the office of the Secretary of the Company.”
	 	 	 
	
        Additional Conditions

        to Issuance of Stock

        Certificates
	 	You will not receive the certificates representing the Restricted Shares unless and until the Company has received a stock power or stock powers in favor of the Company executed by you.
	 	 	 
	Voting Rights	 	Prior to vesting, you will have no voting rights with respect to any Restricted Shares that have not Vested.
	 	 	 
	Cash Dividends	 	Cash dividends, if any, paid on the Restricted Shares shall be held by the Company for your account and paid to you upon the expiration of the Restricted Period, except as otherwise determined by the Board or Committee.  All such withheld dividends shall not earn interest, except as otherwise determined by the Board or Committee.  You will not receive withheld cash dividends on any Restricted Shares which are forfeited and all such cash dividends shall be forfeited along with the Restricted Shares which are forfeited.
	 	 	 
	Tax Withholding	 	Unless you make an election under Section 83(b) of the Internal Revenue Code of 1986, as amended (the “Code”), and pay taxes in accordance with that election, you will be taxed on the Shares as they become Vested and must arrange to pay the taxes on this income. If the Board or Committee so determines, arrangements for paying the taxes may include your surrendering Shares that otherwise would be released to you upon becoming Vested or your surrendering Shares you already own. The fair market value of the Shares you surrender, determined as of the date when taxes otherwise would have been withheld in cash, will be applied as a credit against the withholding taxes.
	 	 	 
	 	 	The Company shall have the right to withhold from your compensation an amount sufficient to fulfill its or its Parent’s or Subsidiary’s obligations for any applicable withholding and employment taxes.  Alternatively, the Company may require you to pay to the Company the amount of any taxes which the Company is required to withhold with respect to the Shares, or, in lieu thereof, to retain or sell without notice a sufficient number of Shares to cover the amount required to be withheld.  The Company may withhold from any cash dividends paid on the Restricted Shares an amount sufficient to cover taxes owed as a result of the dividend payment.  The Company’s method of satisfying its withholding obligations shall be solely in the discretion of the Board or Committee, subject to applicable federal, state, local and foreign laws.  The Company shall have a lien and security interest in the Shares and any accumulated dividends to secure your obligations hereunder.


 


	Tax Representations	 	You hereby represent and warrant to the Company as follows:
	 	 	 
	 	 	(a)           You have reviewed with your own tax advisors the federal, state, local and foreign tax consequences of this investment and the transactions contemplated by this Agreement.  You are relying solely on such advisors and not on any statements or representations of the Company or any of its Employees or agents.


  




    	 



    	 



    

  


	 	 	(b)           You understand that you (and not the Company) shall be responsible for your own tax liability that may arise as a result of this investment or the transactions contemplated by this Agreement.  You understand that Section 83 of the Code taxes (as ordinary income) the fair market value of the Shares as of the date any “restrictions” on the Shares lapse.  To the extent that an award hereunder is not otherwise an exempt transaction for purposes of Section 16(b) of the Securities Exchange Act of 1934, as amended (the “1934 Act”), with respect to officers, directors and 10% shareholders subject to Section 16 of the 1934 Act, a “restriction” on the Shares includes for these purposes the period after the award of the Shares during which such officers, directors and 10% shareholders could be subject to suit under Section 16(b) of the 1934 Act.  Alternatively, you understand that you may elect to be taxed at the time the Shares are awarded rather than when the restrictions on the Shares lapse, or the Section 16(b) period expires, by filing an election under Section 83(b) of the Code with the Internal Revenue Service within thirty (30) days from the date of the award.


 


	 	 	YOU HEREBY ACKNOWLEDGE THAT IT IS YOUR SOLE RESPONSIBILITY AND NOT THE COMPANY’S TO FILE TIMELY THE ELECTION AVAILABLE TO YOU UNDER SECTION 83(B) OF THE CODE, EVEN IF YOU REQUEST THAT THE COMPANY OR ITS REPRESENTATIVES MAKE THIS FILING ON YOUR BEHALF.
	 	 	 
	Securities Law Representations	 	The following two paragraphs shall be applicable if, on the date of issuance of the Restricted Shares, no registration statement and current prospectus under the Securities Act of 1933, as amended (the “1933 Act”), covers the Shares, and shall continue to be applicable for so long as such registration has not occurred and such current prospectus is not available:
	 	 	 
	 	 	(a)           You hereby agree, warrant and represent that you will acquire the Shares to be issued hereunder for your own account for investment purposes only, and not with a view to, or in connection with, any resale or other distribution of any of such shares, except as hereafter permitted.  You further agree that you will not at any time make any offer, sale, transfer, pledge or other disposition of such Shares to be issued hereunder without an effective registration statement under the 1933 Act, and under any applicable state securities laws or an opinion of counsel acceptable to the Company to the effect that the proposed transaction will be exempt from such registration.  You agree to execute such instruments, representations, acknowledgments and agreements as the Company may, in its sole discretion, deem advisable to avoid any violation of federal, state, local or foreign law, rule or regulation, or any securities exchange rule or listing agreement.
	 	 	 
	 	 	(b)          The certificates for Shares to be issued to you hereunder shall bear the following legend:
	 	 	 
	 	 	“The shares represented by this certificate have not been registered under the Securities Act of 1933, as amended, or under applicable state securities laws.  The shares have been acquired for investment and may not be offered, sold, transferred, pledged or otherwise disposed of without an effective registration statement under the Securities Act of 1933, as amended, and under any applicable state securities laws or an opinion of counsel acceptable to the Company that the proposed transaction will be exempt from such registration.”


 


	
        Stock Dividend, Stock

        Split and Similar

        Capital Changes
	 	In the event of any change in the outstanding shares of the Common Stock of the Company by reason of a stock dividend, stock split, combination of shares, recapitalization, merger, consolidation, transfer of assets, reorganization, conversion or what the Board or Committee deems in its sole discretion to be similar circumstances, the number and kind of shares subject to this Agreement shall be appropriately adjusted in a manner to be determined in the sole discretion of the Board or Committee, whose decision shall be final, binding and conclusive in the absence of clear and convincing evidence of bad faith.  Any shares of Common Stock or other securities received, as a result of the foregoing, by you with respect to the Restricted Shares shall be subject to the same restrictions as the Restricted Shares, the certificate or other instruments evidencing such shares of Common Stock or other securities shall be legended and deposited with the Company as provided above with respect to the Restricted Shares, and any cash dividends received with respect to such shares of Common Stock or other securities shall be accumulated as provided above with respect to the Restricted Shares.


  




    	 



    	 



    

  


	Non-Transferability	 	Restricted Shares are not transferable.
	 	 	 
	
        No Effect on

        Employment
	 	Except as otherwise provided in your Employment Agreement [IF APPLICABLE], dated _____________________, nothing herein shall modify your status as an at-will employee of the Company or any Parent or Subsidiary.  Further, nothing herein guarantees you employment for any specified period of time.  This means that, except as provided in the Employment Agreement, either you or the Company or any Parent or Subsidiary may terminate your employment at any time for any reason, with or without cause, or for no reason.  You recognize that, for instance, you may terminate your employment or the Company or any Parent or Subsidiary may terminate your employment prior to the date on which your Shares become vested.
	 	 	 
	
        No Effect on Corporate

        Authority
	 	You understand and agree that the existence of this Agreement will not affect in any way the right or power of the Company or its shareholders to make or authorize any or all adjustments, recapitalizations, reorganizations, or other changes in the Company’s capital structure or its business, or any merger or consolidation of the Company, or any issuance of bonds, debentures, preferred or other stocks with preferences ahead of or convertible into, or otherwise affecting the common shares or the rights thereof, or the dissolution or liquidation of the Company, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of a similar character or otherwise.
	 	 	 
	
        Questions or

        Controversies
	 	In the event that any question or controversy shall arise with respect to the nature, scope or extent of any one or more rights conferred by this Agreement, or any provision of this Agreement, the determination in good faith by the Board of Directors of the Company (as constituted at the time of such determination) of your rights under this Agreement shall be conclusive, final and binding upon you and upon any other person who shall assert any right pursuant to this Agreement.
	 	 	 
	Governing Law	 	The laws of the State of Delaware will govern all matters relating to this Agreement, without regard to the principles of conflict of laws.
	 	 	 
	Notices	 	Any notice you give to the Company must be in writing and either hand-delivered or mailed to the office of the Chief Financial Officer of the Company. If mailed, it should be addressed to the Chief Financial Officer   of the Company at its then main headquarters. Any notice given to you will be addressed to you at your address as reflected on the personnel records of the Company. You and the Company may change the address for notice by like notice to the other. Notice will be deemed to have been duly delivered when hand-delivered or, if mailed, on the day such notice is postmarked.


  


	
        Agreement Subject to

        Plan; Entire Agreement
	 	This Agreement shall be subject to the terms of the Plan in effect on the date hereof, which terms are hereby incorporated herein by reference and made a part hereof.  Capitalized terms used herein and not otherwise defined herein shall have the meaning given to such terms in the Plan. This Agreement constitutes the entire understanding between the Company and you with respect to the subject matter hereof and no amendment, supplement or waiver of this Agreement, in whole or in part, shall be binding upon the Company unless in writing and signed by the Chief Executive Officer of the Company


  




    	 



    	 



    

  


	Conflicting Terms	 	Wherever a conflict may arise between the terms of this Agreement and the terms of the Plan in effect on the date hereof, the terms of the Plan will control.


 


Please sign the copy of this Restricted Stock Agreement and
return it to the Chief Financial Officer, thereby indicating your understanding of, and agreement with, its terms and
conditions.


 


	 	XCEL BRANDS, INC.
	 	 
	 	By:	 


 




    	 



    	 



    

 


ACKNOWLEDGMENT


 


I hereby acknowledge receipt of a copy
of the Plan.  I hereby represent that I have read and understood the terms and conditions of the Plan and of the Restricted
Stock Agreement.  I hereby signify my understanding of, and my agreement with, the terms and conditions of the Plan and
of the Restricted Stock Agreement.  I agree to accept as binding, conclusive, and final all decisions or interpretations
of the Board or Committee concerning any questions arising under the Plan with respect to this Restricted Stock Agreement.  I
accept this Restricted Stock Agreement in full satisfaction of any previous written or oral promise made to me by the Company or
any Parent or Subsidiary with respect to option or stock grants.


 


Date:  ____________________


	 	 	 
	 	 	 
	 	 	 
	 	ADDRESS