# EDGAR Filing Document

**Accession Number:** 0001083220
**File Stem:** 0001104659-25-096144
**Filing Date:** 2025-10
**Character Count:** 53471
**Document Hash:** ec08d25ce254346a1f7b513f1bc635d8
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-25-096144.hdr.sgml**: 20251002

**ACCESSION NUMBER**: 0001104659-25-096144

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20250926

**ITEM INFORMATION**: Entry into a Material Definitive Agreement

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20251002

**DATE AS OF CHANGE**: 20251002

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** XCel Brands, Inc.
- **CENTRAL INDEX KEY:** 0001083220
- **STANDARD INDUSTRIAL CLASSIFICATION:** PATENT OWNERS & LESSORS [6794]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 760307819
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-37527
- **FILM NUMBER:** 251370323

**BUSINESS ADDRESS:**
- **STREET 1:** 1333 BROADWAY
- **STREET 2:** 10TH FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10018
- **BUSINESS PHONE:** (347) 727-2474

**MAIL ADDRESS:**
- **STREET 1:** 1333 BROADWAY
- **STREET 2:** 10TH FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10018

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

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** HOUSTON OPERATING CO
- **DATE OF NAME CHANGE:** 19990402

?xml version='1.0' encoding='ASCII'? XCEL BRANDS, INC._September 26, 2025

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**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, DC 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d)**

**of The Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported): September 26, 2025**

## XCEL BRANDS, INC.
**(Exact name of registrant as specified in its charter)**

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| | | | | |
|:---|:---|:---|:---|:---|
| **Delaware** |  | **001-37527** |  | **76-0307819** |
| **(State or Other Jurisdictionof Incorporation)** |  | **(CommissionFile Number)** |  | **(IRS EmployerIdentification No.)** |
| **1333 Broadway, New York, New York** |  |  |  | **10018** |
| **(Address of Principal Executive Offices)** |  |  |  | **(Zip Code)** |

---

**Registrant's telephone number, including area code (347) 727-2474**

**Not Applicable**

**(Former Name or Former Address, if Changed Since Last Report)**

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (*see* General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol | Name of each exchange on which registered |
| Common Stock, par value $0.001 per share | XELB | NASDAQ Global Select Market |

---

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**Item 1.01 Entry into a Material Definitive Agreement**

On September 26, 2025, Xcel Brands, Inc. (the "Company"), IM Topco, LLC ("IM Topco"), IMWHP, LLC ("IMWHP") and IMWHP2 LLC ("IM2") entered into a Settlement Agreement pursuant to which the Company entered into a Membership Interest Transfer Agreement with IMWHP and IMWHP2 (the "Transfer Agreement"), Xcel-CT MFG, LLC ("Xcel-CT"), a subsidiary of the Company, was released from any further liability under certain provisions of the License Termination Agreement between IM Topco and Xcel-CT. In addition, pursuant to the Settlement Agreement, the Company received a capital appreciation right to receive 15% of the net consideration received by IM Topco, IMWHP, IMWHP2 and any other equity holders of IM Topco in excess of $46 million in connection with a capital transaction involving IM Topco which occurs on or before September 1, 2032

Pursuant to the Transfer Agreement Xcel agreed to transfer to IM2 all of its equity interests in IM Topco, which represented equity interests equal to 17.5% of the outstanding equity interests of IM Topco, on October 1, 2025 (the "Transfer").

**Item 9.01 Financial Statements and Exhibits.**

&nbsp;&nbsp;&nbsp;&nbsp;(d) Exhibits.

---

| | |
|:---|:---|
| 10.1 | [Settlement Agreement](xelb-20250926xex10d1.htm) |
| 10.2 | [Membership Interest Transfer Agreement](xelb-20250926xex10d2.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
| **XCEL BRANDS, INC.** | **XCEL BRANDS, INC.** | **XCEL BRANDS, INC.** |
| (Registrant) | (Registrant) | (Registrant) |
| By: | /s/ James F. Haran | /s/ James F. Haran |
|  | Name: | James F. Haran |
|  | Title: | Chief Financial Officer |
| Date: October 2, 2025 | Date: October 2, 2025 | Date: October 2, 2025 |

---

## Exhibit 10.1

**Exhibit 10.1**

<u>Settlement Agreement</u>

This Settlement Agreement (this "<u>Agreement</u>") is made and entered into as of this 25<sup>th</sup> day of September, 2025 (the "<u>Effective Date</u>"), by and among IM Topco, LLC ("<u>IM Topco</u>"), IMWHP, LLC ("<u>IMWHP</u>"), IMWHP2, LLC ("<u>IMWHP2</u>"), Xcel Brands, Inc. ("<u>Xcel Brands</u>"), Xcel-CT MFG, LLC ("<u>Xcel-CT</u>") and IM Brands, LLC ("<u>IM Brands</u>").

WHEREAS, on and subject to the terms and conditions herein, IM Topco, IMWHP, IMWHP2, Xcel Brands, Xcel-CT and IM Brands (collectively, the "<u>parties</u>") desire to settle disputes relating to their respective interests in and to the ISAAC MIZRAHI® brand.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Payment of Past Trade Payables</u>. For purposes of this Agreement, the term " <u>Applicable Vendor</u> " means any third-party vendor with which Xcel Brands, Xcel-CT and/or IM Brands at any time contracted prior to the Effective Date for services relating to the ISAAC MIZRAHI® brand. Xcel Brands, Xcel-CT and IM Brands represent and warrant that, as of the Effective Date, they have paid in full all trade payables owed or owing by any or all of them to all Applicable Vendors. If, notwithstanding the foregoing, Xcel Brands, Xcel-CT and/or IM Brands should later receive an invoice(s) from any Applicable Vendor covering charges for goods and/or services provided by such vendor prior to the Effective Date, Xcel Brands, Xcel-CT and/or IM Brands shall promptly and timely pay such invoice(s) in full, without entitlement to any contribution or reimbursement from IM Topco, IMWHP and/or IMWHP2.

&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Membership Interest Transfer Agreement / Capital Appreciation Right.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Upon mutual execution and delivery of this Agreement, and as a condition to the effectiveness of this Agreement, IMWHP, IMWHP2 and Xcel Brands shall enter into a Membership Interest Transfer Agreement in the form attached as <u>Exhibit A</u> hereto (the " <u>Settlement MITA</u> ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Xcel Brands shall use commercially reasonable efforts to satisfy and release as soon as practicable all claims, liens, charges, rights, restrictions, options, preemptive rights, mortgages, deeds of trust, easements, encroachments, judgments, leases, hypothecations, assessments, options, pledges, encumbrances, claims of equitable interest or security interests, impositions, imperfections or defects of title of any kind or nature whatsoever (collectively, " <u>Liens</u> ") with respect to or otherwise affecting any of the equity securities of IM Topco ever owned by Xcel Brands.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. If an IM Topco Transaction is consummated during the Applicable Period, and the aggregate Net Consideration actually received by IM Topco, IMWHP, IMWHP2 and any other holders of equity interests in IM Topco at such time (collectively, the " <u>IM WHP Parties</u> ") as a result of such IM Topco Transaction exceeds Forty-Six Million Dollars ($46,000,000) (the " <u>Hurdle</u> "), then within ten (10) Business Days following the closing

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of such IM Topco Transaction, the IM WHP Parties shall pay, or cause to be paid, fifteen percent (15%) of the Net Consideration in excess of the Hurdle actually received by the IM WHP Parties to Xcel Brands by wire transfer of immediately available funds in accordance with such written instructions as Xcel Brands delivers to the IM WHP Parties upon request from the IM WHP Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. " <u>Affiliate</u> " means, with respect to any Person, any other Person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, the specified Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. " <u>Applicable Period</u> " means the period commencing on September 1, 2025 and ending on the earlier of (a) the seventh (7th) anniversary of September 1, 2025 and (b) the occurrence of an Appreciation Termination Event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. " <u>Appreciation Termination Event</u> " means the occurrence of any Capital Transaction with respect to both (i) WH Topco, L.P. and/or any of its Affiliates and (ii) IM Topco, in which Capital Transaction the value allocated by the acquiror to IMWHP, IMWHP2 and IM Topco, collectively, is less than twenty-five percent (25%) of the overall value of the assets and entities involved in the Capital Transaction. For purposes of clarity, an IM Topco Transaction cannot be an Appreciation Termination Event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. " <u>Business Day</u> " means a day other than Saturday, Sunday or a public holiday on which banks are closed under the laws of the State of New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. " <u>Capital Transaction</u> " means, with respect to any Person, the consummation of any transaction or series of transactions (including, without limitation, any merger, recapitalization, reorganization, sale of stock or assets or other similar transaction) pursuant to which one or more Persons or group of Persons (other than any direct or indirect equityholder of such Person, any of their respective Affiliates or any Person that directly or indirectly controls, or is controlled by, such Person) acquires (i) equity securities of such Person or the successor to such Person (x) possessing the voting power sufficient to elect a majority of the members of the board of directors (or managers or general partners, as applicable) of such Person or to elect a majority of the members of the board of directors (or managers or general partners, as applicable) of such successor of such Person, (y) entitling the holder thereof, upon dissolution or liquidation of such Person or such successor, to a majority of the assets of such Person or such successor available for distribution to the holders of equity securities of such Person or such successor and (z) constituting more than 50% of the outstanding equity securities of such Person on a fully-diluted basis, or (ii) all or substantially all of the assets of such Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. " <u>IM Topco Transaction</u> " means a Capital Transaction in which both of the following conditions are met (A) (i) IM Topco and/or (ii) taken as a whole, IMWHP and IMWHP2, constitutes twenty-five percent (25%) or more of the

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value of the assets transferred in such Capital Transaction, as allocated by the acquiror in such Capital Transaction on the basis of the aggregate royalty revenue of IM Topco, IMWHP and IMWHP2; and (B) the value allocated to the equity or assets of IM Topco, IMWHP and IMWHP2, taken as a whole, by such acquiror in the Capital Transaction, on the basis of the aggregate royalty revenue of IM Topco, IMWHP and IMWHP2, is greater than the Hurdle.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vii. " <u>Net Consideration</u> " means the consideration received by the IM WHP Parties in an IM Topco Transaction attributable solely to the value of IMWHP, IMWHP2 and IM Topco, collectively, less any costs of the transaction (including without limitation, brokers' fees and legal and accounting fees in connection with such transaction).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;viii. " <u>Person</u> " means any individual, sole proprietorship, partnership, limited liability company, joint venture, trust, unincorporated association, corporation, entity or government (whether Federal, state, county, city or otherwise, including, without limitation, any instrumentality, division, agency or department thereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. The parties agree that the grant of the contingent payment right pursuant to Section 2.C. of this Agreement will be accounted for as an adjustment to the purchase price under the Underlying APA (defined below) for all tax purposes except to the extent otherwise required by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Staffing</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. From October 1, 2025 through December 31, 2025, Xcel shall cause Joe Falco ("Falco") and Ken Downing (" <u>Downing</u> "), or if Falco and/or Downing shall no longer remain employed by Xcel, then any successor employee to the roles of Falco and/or Downing (provided further that Xcel shall not be contractually obligated under this Agreement to make a new hire to replace any such vacancy), to provide services for the benefit of IM Topco in a manner (including with respect to the nature of services and time commitments) materially consistent with levels of service that Falco and Christina Gorman provided to IM Topco prior to the Effective Date. For any such services actually rendered by Joe Falco and Downing during each of those three (3) months, IM Topco shall pay Xcel the total amount of Thirty Three Thousand Three Hundred Thirty Three Dollars and Thirty Three Cents ($33,333.33) per applicable calendar month (pro-rated for any partial month), payable within thirty (30) days of invoice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. If and as IM Topco may request on a month-to-month basis during the period from January 1, 2026, through December 31, 2026, Xcel shall cause Falco (or if Falco shall no longer remain employed by Xcel, then any successor employee to his role; provided further that Xcel shall not be contractually obligated under this Agreement to make a new hire to replace such vacancy) to provide services for the benefit of IM Topco in a manner materially consistent with level of service he provided to IM Topco prior to the Effective Date. For any such services so requested by IM Topco and actually rendered by Joe Falco, IM Topco shall pay Xcel the total amount of Twelve Thousand Five Hundred

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Dollars ($12,500) per applicable calendar month (pro-rated for any partial month), payable within thirty (30) days of invoice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. From the Effective Date through December 31, 2025, Xcel Brands, Xcel-CT and IM Brands shall provide support to IM Topco's team, including without limitation through allowing such team to work from workspace of Xcel Brands, Xcel-CT and/or IM Brands, free of charge and in a manner materially consistent with levels of support provided to such team prior to the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Release of Future Jump Liability</u>. Xcel-CT shall not have any further liability to IM Topco under Sections 3 and/or 4 of that certain License Termination Agreement between IM Topco and Xcel-CT dated as of December 16, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Releases</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Each of IM Topco, IMWHP and IMWHP2 hereby release Xcel Brands, Xcel-CT and IM Brands from and against any and all claims, damages, losses and/or liabilities, whether known or unknown, to the extent arising from the beginning of time through the Effective Date, including any claim, damage, loss and/or liability constituting a claim for defense and/or indemnification in connection with any claim that may be brought by an unaffiliated third-party; except nothing in this paragraph releases any claim, damage, loss and/or liability (1) arising under this Agreement; (2) arising under the Membership Interest Purchase Agreement among IMWHP, Xcel Brands, IM Brands, and IM Topco dated as of May 27, 2022 (the " <u>Underlying APA</u> "); (3) arising under the Settlement MITA; and/or (4) arising under the Membership Interest Transfer Agreement by and among IMWHP, IMWHP2 and Xcel Brands dated April 15, 2025 (the " <u>12.5% MITA Agreement</u> "). Each of IM Topco, IMWHP and IMWHP2 represent that they are not presently aware of any claim they have against Xcel Brands, Xcel-CT and/or IM Brands under the Underlying APA and/or the 12.5% MITA Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Each of Xcel Brands, Xcel-CT and IM Brands hereby release IM Topco, IMWHP and IMWHP2 from and against any and all claims, damages, losses and/or liabilities, whether known or unknown, to the extent arising from the beginning of time through the Effective Date, including any claim, damage, loss and/or liability constituting a claim for defense and/or indemnification in connection with any claim that may be brought by an unaffiliated third-party; except nothing in this paragraph releases any claim, damage, loss and/or liability (1) arising under this Agreement; (2) arising under the Underlying APA; (3) arising under the Settlement MITA; and/or (4) arising under the 12.5% MITA Agreemen. Each of Xcel Brands, Xcel-CT and IM Brands represent that they are not presently aware of any claim they have against IM Topco, IMWHP and/or IMWHP2 under the Underlying APA and/or the 12.5% MITA Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Miscellaneous.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>Captions</u>. The captions in this Agreement are for convenience only and shall not control or affect the meaning or construction of any of the terms or provisions of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <u>Neutral Construction</u>. If it is necessary to construe any of the terms and conditions of this Agreement, it shall be done without giving any consideration or effect as to which party drafted this Agreement. The parties acknowledge that all terms of this Agreement were negotiated at arms' length and that this Agreement was prepared and executed without duress, undue influence or coercion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. <u>Confidentiality</u>. The parties agree that the terms and conditions of this Agreement are confidential and that they will not disclose this Agreement, or any of its terms, to any person who is not a party to this Agreement, other than such party's attorney(s), accountant(s), tax and financial advisor(s), unless compelled by court order or subpoena, or as otherwise required by law, or as may be necessary to enforce this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. <u>Binding Effect; Successors and Assigns</u>. Except as otherwise provided herein, this Agreement shall be binding upon, and shall inure to the benefit of, the parties and their respective heirs, executors, administrators, successors, legal representatives, and assigns

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. <u>Signature Exchange</u>: This Agreement may be executed in counterpart copy format, with each copy an original hereof, and all copies being one and the same agreement. Signatures affixed hereto by photocopy, facsimile transmission, e-mail, PDF, TIFF, JPEG, Docusign or other like digital format shall have the full force and effect of original signatures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. <u>Law and Forum</u>: This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without giving effect to principles applicable to conflicts of laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. <u>No Oral Modification</u>. This Agreement may be amended only by a written instrument signed by all applicable parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H. <u>Entire Agreement</u>. This Agreement, the 12.5% MITA Agreement and the Settlement MITA represent the entire agreement and understanding between the parties with respect to the subject matter thereof, and this Agreement, together with the 12.5% MITA Agreement and the Settlement MITA, replaces and supersedes any prior written and oral understandings and/or agreements between the parties concerning the matters referenced herein.

{*remainder of page intentionally left blank; signature page follows*}

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IN WITNESS WHEREOF, by their signatures below, the parties enter into this Agreement as of the Effective Date.

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| | | | |
|:---|:---|:---|:---|
| IM TOPCO, LLC | IM TOPCO, LLC | XCEL BRANDS, INC. | XCEL BRANDS, INC. |
| By: | /s/ Yehuda Shmidman | By: | /s/ Seth Burroughs |
| Name: | Yehuda Shmidman | Name: |  |
| Title: | Chief Executive Officer | Title: |  |
| IMWHP, LLC | IMWHP, LLC | XCEL-CT MFG, LLC | XCEL-CT MFG, LLC |
| By: | /s/ Yehuda Shmidman | By: | /s/ Seth Burroughs |
| Name: | Yehuda Shmidman | Name: | Seth Burroughs |
| Title: | Chief Executive Officer | Title: |  |
| IMWHP2, LLC | IMWHP2, LLC | IM BRANDS, LLC | IM BRANDS, LLC |
| By: | /s/ Yehuda Shmidman | By: | /s/ Seth Burroughs |
| Name: | Yehuda Shmidman | Name: | Seth Burroughs |
| Title: | Chief Executive Officer | Title: |  |

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SIGNATURE PAGE TO SETTLEMENT AGREEMENT

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Exhibit A

<u>(Membership Interest Transfer Agreement)</u>

*See attached*.

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## Exhibit 10.2

**Exbibit 10.2**

**MEMBERSHIP INTEREST Transfer AGREEMENT**

This Membership Interest Transfer Agreement ("<u>Agreement</u>"), effective as of September 25, 2025 (the "<u>Effective Date</u>"), is by and among IMWHP, LLC, a Delaware limited liability company ("<u>Original Buyer</u>"), IMWHP2, LLC, a Delaware limited liability company ("<u>Buyer</u>" and together with Original Buyer, "<u>Buyer Parties</u>"), and Xcel Brands, Inc., a Delaware corporation ("<u>Xcel</u>"). Each of Original Buyer, Buyer and Xcel may be referred to herein as a "<u>Party</u>" and collectively as the "<u>Parties</u>".

**RECITALS:**

**WHEREAS**, Original Buyer, IM Brands, LLC, and IM Topco, LLC, a Delaware limited liability company (the "<u>Company</u>"), are parties to that certain Membership Interest Purchase Agreement, dated as of May 27, 2022, as amended by (i) that certain First Amendment to Membership Interest Purchase Agreement, dated as of March 2, 2023, (ii) that certain Second Amendment to Membership Interest Purchase Agreement, dated as of November 19, 2023, and (iii) that certain Third Amendment to Membership Interest Purchase Agreement (the "<u>Third Amendment</u>"), dated as of April 12, 2024 (together, the "<u>MIPA</u>");

**WHEREAS**, as of immediately prior to the transactions contemplated by this Agreement, Xcel owns one hundred seventy-five (175) units of the Company, representing seventeen and one-half percent (17.5%) of the issued and outstanding Equity Securities of the Company;

**WHEREAS**, effective as of the Effective Date, Original Buyer and Xcel are entering into a settlement agreement (the "<u>Settlement Agreement</u>") pursuant to which the Parties are resolving such disputes as have arisen among them prior to the Effective Date;

**WHEREAS**, in accordance with the terms of the Settlement Agreement, Buyer desires to acquire, and Xcel desires to transfer to Buyer, one hundred seventy-five (175) units, representing seventeen and one-half percent (17.5%) of the issued and outstanding Equity Securities of the Company (the "<u>Transferred Interests</u>"); and

**WHEREAS**, the Parties desire to make certain representations, warranties, covenants and agreements in connection with this Agreement.

**NOW, THEREFORE**, in consideration of the representations, warranties, covenants and agreements of the Parties as hereinafter set forth and other good and valuable consideration, the receipt and sufficiency of which hereby are acknowledged, the Parties hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** **Recitals; Defined Terms**. The above recitals of the facts giving rise to this Agreement are incorporated herein by this reference and constitute a part of this Agreement. Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to them in the MIPA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.** **Transfer of the Transferred Interests**. On October 1, 2025, being the date that closing of the transactions contemplated by this Agreement (the "<u>Closing</u>") occurs (the "<u>Closing Date</u>"), Xcel shall transfer and assign the Transferred Interests to Buyer free and clear of all Liens other than the Permitted Liens, and Buyer shall acquire the Transferred Interests. "<u>Permitted</u> 

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<u>Liens</u>" means (i) that certain lien filed by the New York State Department of Taxation and Finance against Xcel on February 4, 2025 (File No. E-041130326-W001-1), and (ii) that certain lien filed by the Internal Revenue Service against Xcel on July 5, 2024 (File No. 2024 07050246246).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** **Closing**. The transfer of the Transferred Interests to Buyer as described in <u>Section 2</u> shall take place remotely through the exchange of documents and signatures through escrow on the Closing Date. The Closing shall occur on the Closing Date and shall be effective as of 12:01 a.m. Eastern time on October 1, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.** **Closing Deliveries**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)At the Closing, Buyer shall deliver, or execute and deliver, as applicable, to Xcel the following: (i) a counterpart of an Assignment and Assumption of Interest for the Transferred Interests, in the form attached hereto as <u>Exhibit A</u> (the "<u>Transferred Interests Assignment</u>"), duly executed by Buyer; and (ii) such additional ancillary documents (if any), agreed upon by the Parties at least two (2) Business Days prior to the Closing, as shall be reasonably required to consummate the transactions contemplated by this Agreement (collectively, the "<u>Ancillary Documents</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)At the Closing, Xcel shall execute and deliver to Buyer the following: (i) a counterpart of the Transferred Interests Assignment, duly executed by Xcel; and (ii) the Ancillary Documents, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.** **Closing Costs**. Each Party will pay its own expenses, costs and fees (including legal and other professional fees and costs) in conjunction with this Agreement and the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.** **Representations and Warranties of Xcel**. Xcel represents and warrants to Buyer Parties as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Organization; Authorization</u>. Xcel is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware. Xcel has full corporate power, right and authority to enter into and perform its obligations under this Agreement, the Transferred Interests Assignment and each of the Ancillary Documents to which it is a party that have been or, upon the Closing, will be duly executed and delivered by Xcel, and constitute or will constitute upon execution the valid and binding obligations of Xcel, enforceable against Xcel in accordance with their respective terms, except as the enforceability thereof may be limited by laws of general application relating to bankruptcy, insolvency and debtors' relief, and by general principles of equity. All corporate actions on the part of Xcel, and its shareholders and directors necessary for the authorization, execution, delivery and performance by Xcel of this Agreement, the Transferred Interests Assignment and each of the Ancillary Documents to which it is a party have been taken and no other corporate action on the part of Xcel is necessary to authorize this Agreement, the Transferred Interests Assignment and the Ancillary Documents and to consummate the transactions contemplated hereby and thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>No Violation</u>. The execution, delivery and performance of this Agreement by Xcel and the execution, delivery and performance by Xcel of the Transferred Interests Assignment and each Ancillary Document to which it is (or will become at Closing) a party, and

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the consummation of the transactions contemplated hereby and thereby, do not and will not: (i) violate, conflict with or result in a breach of any Law or Order; (ii) conflict with, result in any breach of or constitute a default under any provision of the certificate of incorporation, by-laws or any other formation or organizational documents of Xcel; (iii) conflict with or result in the breach of the terms, conditions or provisions of or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give rise to any right of termination, acceleration or cancellation of any right or obligation or to a loss of any benefit under any provision of any Contract to which Xcel is a party or by which the Transferred Interests are bound; (iv) result in the creation or imposition of any Lien upon any of the Transferred Interests; (v) require any authorization, consent or approval of or designation, declaration or filing with any Governmental Body or any other action by or notice to any court or Governmental Body pursuant to any Laws; or (vi) require any Consents or notifications to any Persons, except for any conflict, breach or default which would not (x) individually or in the aggregate, reasonably be expected to be materially adverse to Xcel's condition (financial or otherwise), results of operations, business, assets or prospects or (y) prevent, materially delay or materially impair the consummation of the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Capitalization</u>. Xcel owns the Transferred Interests and there are no Liens on the Transferred Interests (other than (i) the Permitted Liens and (ii) Liens that will be released upon consummation of the transactions contemplated by this Agreement) and no Contracts or other agreements (written or oral) or options to purchase or rights of first refusal (or the like) with respect to or affecting the Transferred Interests. Upon consummation of the transactions contemplated by this Agreement, Buyer shall own all of the Transferred Interests free and clear of all Liens except for the Permitted Liens and any Liens imposed by Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Litigation</u>. There is no Liability, Proceeding, Order or action of any nature or kind whatsoever pending or to Xcel's knowledge, threatened against Xcel relating to the validity, enforceability, ownership or use of the Transferred Interests, or that challenges or seeks to prevent, enjoin or otherwise delay the transactions contemplated by this Agreement, before any court or Governmental Body. Xcel (i) is not subject to any Order of any court or Governmental Body related to the Transferred Interests; and (ii) has not commenced preparations to initiate, and is not engaged in, any Proceeding related to or affecting the Transferred Interests. There is no Liability, Proceeding, Order or action of any nature or kind whatsoever pending or, to Xcel's knowledge, threatened against Xcel that would reasonably be expected to result in the imposition of any Lien on or against the Transferred Interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.** **Representations of Buyer**. Buyer represents and warrants to Xcel as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Organization; Authorization</u>. Buyer is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware. Buyer is an Affiliate of Original Buyer. Buyer has full power, right and authority to enter into and perform its obligations under this Agreement, the Transferred Interests Assignment and each of the Ancillary Documents to which it is a party. The execution, delivery and performance by Buyer of this Agreement, the Transferred Interests Assignment and each of the Ancillary Documents to which it is a party have been duly and properly authorized by all requisite action in accordance with applicable Law. This Agreement to which Buyer is a party has been duly executed and delivered by Buyer and is the valid and binding obligation of Buyer and is enforceable against

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Buyer in accordance with its terms, except as the enforceability thereof may be limited by laws of general application relating to bankruptcy, insolvency and debtors' relief, and by general principles of equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>No Violation</u>. Neither the execution and delivery of this Agreement, the Transferred Interests Assignment and the Ancillary Documents nor the performance by Buyer of its obligations hereunder or thereunder will: (i) violate, conflict with or result in a breach of any Law or Order; (ii) conflict with, result in any breach of or constitute a default under any provision of the certificate of formation, operating agreement or any other formation or organizational documents of Buyer; or (iii) require any authorization, consent or approval of or designation, declaration or filing with any Governmental Body or any other action by or notice to any court or Governmental Body pursuant to any Laws, except for any conflict, breach or default which would not (x) individually or in the aggregate, reasonably be expected to be materially adverse to Buyer's condition (financial or otherwise), results of operations, business, assets or prospects or (y) prevent, materially delay or materially impair the consummation of the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Litigation</u>. There is no Liability, Proceeding, Order or action of any nature or kind whatsoever pending or, to Buyer's knowledge, threatened against Buyer that challenges or seeks to prevent, enjoin or otherwise delay the transactions contemplated by this Agreement, before any court or Governmental Body; nor, is there any reasonable basis for any such Proceeding or other such matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.** **Indemnification**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Survival</u>. The representations and warranties contained in this Agreement or in any certificate delivered pursuant to this Agreement, including any rights arising out of any breach of such representations and warranties and any right to indemnification pursuant to <u>Section ‎8(b)</u>, shall survive the Closing until the sixth (6th) anniversary of the Closing Date. Any representation or warranty that is the subject of any claim prior to the expiration of the survival period set forth in this <u>Section 8(a)</u> shall survive for purposes of resolution of such claim until such claim is fully and finally resolved. The covenants and agreements contained in this Agreement shall survive indefinitely, until fully performed in accordance with their respective terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Indemnification by Xcel</u>. Xcel hereby agrees, from and after the Closing, to indemnify the Buyer and the Buyer Indemnified Parties and save and hold each of them harmless from and against and pay on behalf of or reimburse the Buyer and the Buyer Indemnified Parties as and when incurred for all Losses which Buyer or any Buyer Indemnified Party may suffer, sustain or become subject to, in connection with, incident to, resulting from or arising out of or in any way relating to or by virtue of the Permitted Liens.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.** **Tax Treatment**. The Parties agree that the transactions contemplated by this Agreement are intended to be treated as a redemption for income tax purposes. For purposes of Section 736 of the Code, any amounts paid or considered paid to Xcel (including all deemed distributions pursuant to Section 752(b) of the Code, if any) in consideration for the Transferred Interests shall be treated as distributions made in exchange for the interests of Xcel in the property

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of Company pursuant to Section 736(b) of the Code and the corresponding provisions of any applicable state or local tax laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.** **Public Announcements**. No Party shall make, or cause or permit to be made, any press release or public announcement, or otherwise communicate with any news media, in respect of this Agreement without the prior written consent of the other Parties, and the Parties shall cooperate as to the timing and contents of any such press release or public announcement; <u>provided</u>, <u>however</u>, that Xcel may, without the prior consent of the other Parties, make such press release, public disclosure, securities law filings, or public announcement as may be required in such Party's opinion under applicable Laws, including stock exchange rules and regulations (including the filing of Forms 8-K announcing the transaction contemplated by this Agreement and the filing of this Agreement with the SEC as may be required under applicable Laws).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.** **Governing Law; Dispute Resolution**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)This Agreement shall be governed by and construed under the laws of the State of Delaware, without regard to principles of conflicts of laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Except with respect to any Party's right to injunctive relief hereunder, the Parties agree that any controversy, claim or dispute arising out of or relating to this Agreement (including the determination of the scope or applicability of this Agreement to arbitrate) shall be determined by confidential arbitration in New York, New York, before one arbitrator. The arbitration shall be administered by JAMS pursuant to the JAMS Rules; <u>provided</u>, <u>however</u>, that notwithstanding the JAMS Rules, the arbitrator shall not have the power to award injunctive or other equitable relief, and nothing herein shall preclude or prevent a Party from pursuing, injunctive or other equitable relief in a New York state or federal court of competent jurisdiction. The Federal Arbitration Act shall govern the interpretation and enforcement of such arbitration proceeding. The arbitrator shall apply the substantive law (and the law of remedies, if applicable) of the State of Delaware, or federal law, if the law of the State of Delaware is preempted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party (as determined by the trier of fact) shall be entitled to reasonable attorneys' fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.** **Waiver of Jury Trial**. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY THAT MAY ARISE UNDER THIS AGREEMENT, THE DOCUMENTS AND AGREEMENTS CONTEMPLATED HEREBY AND THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND THEREFORE HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY PROCEEDING BASED ON, ARISING OUT OF OR RELATED TO THIS AGREEMENT, ANY DOCUMENT OR AGREEMENT CONTEMPLATED HEREBY OR THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY. EACH OF THE PARTIES AGREES AND CONSENTS THAT ANY SUCH PROCEEDING WILL BE DECIDED BY COURT TRIAL WITHOUT A JURY AND THAT THE PARTIES TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS

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AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES TO THE IRREVOCABLE WAIVER OF THEIR RIGHT TO TRIAL BY JURY. EACH PARTY (A) CERTIFIES THAT NO REPRESENTATIVE OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.** **No Third-Party Beneficiaries**. Except as provided for herein, this Agreement is for the sole benefit of the Parties hereto and nothing herein, expressed or implied shall give or be construed to give to any Person other than the Parties hereto any legal or equitable rights hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.** **Entire Agreement**. This Agreement constitutes the entire agreement among the Parties pertaining to the subject matter hereof and supersedes all prior and contemporaneous agreements and understandings in connection herewith. This Agreement cannot be amended without the written agreement by all of the Parties hereto. The unenforceability or invalidity of any provision of this Agreement shall not affect the enforceability or validity of any other provision. The language used in this Agreement will be deemed to be the language chosen by the Parties to express their mutual intent, and no rule of strict construction will be applied against any Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.** **Headings**. The captions and headings herein are for convenience of reference only and in no way define or limit the scope or context of this Agreement or in any way affect its provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.** **Counterparts; Execution and Delivery**. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. This Agreement may be executed and delivered by facsimile or electronic distribution of PDF files, and the same shall have the same force and effect as if executed and delivered in the original.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.** **Subsequent Documents**. Each of the Parties hereto agrees to execute such further instruments and assurances or provide such other documents as may be reasonably necessary to effectuate the purposes of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**18.** **Notices, Consents, etc**. Any notices, consents or other communications required or permitted to be sent or given hereunder by any of the Parties shall in every case be in writing and shall be deemed properly served if (a) delivered personally, (b) sent by registered or certified mail, in all such cases with first class postage prepaid, return receipt requested, (c) delivered by a recognized overnight courier service, or (d) sent by email transmission with written request of confirmation of receipt, to the Parties at the addresses as set forth below or at such other addresses as may be furnished in writing.

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If to Xcel, to:

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| |
|:---|
| Xcel Brands, Inc. |
| 550 Seventh Avenue, 11th Floor |
| New York, NY 10018 |
| Attn: James Haran, Chief Financial Officer |
| Email: jharan@xcelbrands.com |

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If to Buyer, to:

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| |
|:---|
| IMWHP2, LLC |
| 530 Fifth Avenue, 12th Floor |
| New York, NY 10036 |
| Attn: Gregg Donnenfeld |
| Email: gdonnenfeld@whp-global.com |

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Date of service of such notice shall be (w) the date such notice is personally delivered, (x) five (5) Business Days after the date of mailing if sent by certified or registered mail, (y) one (1) Business Day after date of receipt if sent by overnight courier or (z) the date such notice is delivered by email if sent before 5:00 p.m. Eastern time, otherwise the next succeeding Business Day after transmission by email.

[*remainder of page intentionally blank; signature page follows*]

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**IN WITNESS WHEREOF**, the Parties have caused this Agreement to be executed the day and year first above written.

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| |
|:---|
| **IMWHP, LLC** |
| a Delaware limited liability company |
| By: /s/ Yehuda Shmidman  |
| Name: Yehuda Shmidman  |
| Title: Chief Executive Officer |
| **IMWHP2, LLC**  |
| a Delaware limited liability company |
| By: /s/ Yehuda Shmidman |
| Name: Yehuda Shmidman  |
| Title: Chief Executive Officer |
| **Xcel Brands, Inc.**  |
| a Delaware corporation |
| By: /s/ Seth Burroughs  |
| Name: Seth Burroughs  |
| Title: EVP |

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[SIGNATURE PAGE TO MEMBERSHIP INTEREST TRANSFER AGREEMENT (SETTLEMENT)]

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**Exhibit A**

**Form of Transferred Interests Assignment**

**See next page(s)**

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**ASSIGNMENT AND ASSUMPTION OF MEMBERSHIP INTERESTS**

This ASSIGNMENT AND ASSUMPTION OF MEMBERSHIP INTERESTS (this "<u>Assignment</u>"), effective as of October 1, 2025 (the "<u>Effective Date</u>"), by and between Xcel Brands, Inc., a Delaware corporation ("<u>Assignor</u>"), and IMWHP2, LLC, a Delaware limited liability company ("<u>Assignee</u>").

**RECITALS**

WHEREAS, Assignor owns 17.5% of the limited liability company interests in IM Topco, LLC, a Delaware limited liability company (the "<u>Company</u>");

WHEREAS, pursuant to, and subject to, that certain Membership Interest Transfer Agreement by and between Assignor and Assignee, effective as of July 16, 2025 (the "<u>Transfer Agreement</u>"), Assignor has agreed to transfer, and Assignee has agreed to acquire, 17.5% of the limited liability company interests in the Company (the "<u>Transferred Interests</u>"); and

WHEREAS, Assignor desires to assign its right, title and interest in and to the Transferred Interests to Assignee, and Assignee desires to accept the assignment of, and to assume the obligations with respect to, the Transferred Interests from Assignor, subject to the terms and conditions set forth in the Transfer Agreement and in this Assignment.

NOW, THEREFORE, for good and valuable consideration set forth in the Transfer Agreement, the mutual agreements and covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.<u>Assignment of Transferred Interests</u>. Assignor hereby transfers, conveys and assigns to Assignee all of Assignor's right, title and interest in and to the Transferred Interests, and Assignee hereby accepts such transfer, conveyance and assignment and hereby assumes the obligations with respect to the Transferred Interests, all in accordance with, upon, and subject to, the terms and provisions of the Transfer Agreement and this Assignment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.<u>Effective Date</u>. This Assignment, and the transfer, conveyance, assignment and assumption of the Transferred Interests, shall be effective as of 12:01 a.m. on the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.<u>Representations and Warranties</u>. Other than the representations and warranties expressly made by Assignor in the Transfer Agreement, Assignor makes no representation or warranty in connection with this Assignment regarding the Transferred Interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.<u>Amendment</u>. This Assignment may be amended only in a writing signed by the party against whom such amendment is sought to be enforced.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.<u>Counterparts; Signatures</u>. This Assignment may be executed in multiple counterparts, each of which shall be an original, but all of which taken together shall constitute one and the same instrument. This Assignment may be executed and delivered by facsimile or electronic distribution of PDF files, and the same shall have the same force and effect as if executed and delivered in the original.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.<u>Governing Law</u>. This Assignment shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to principles of conflicts of laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.<u>No Third-Party Beneficiaries</u>. Except as provided for herein, this Assignment is for the sole benefit of the parties hereto and nothing herein, expressed or implied shall give or be construed to give to any person other than the parties hereto any legal or equitable rights hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.<u>Incorporation of Transfer Agreement</u>. This Assignment is subject to the provisions of the Transfer Agreement that expressly survive the Closing thereunder.

[*remainder of page intentionally left blank; signature page follows*]

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**IN WITNESS WHEREOF**, the parties hereto have caused this Assignment to be executed by their duly authorized representatives as of the date first above written.

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| | |
|:---|:---|
| **Xcel Brands, Inc.** | **Xcel Brands, Inc.** |
| a Delaware corporation | a Delaware corporation |
| By:  |  |
| Name: |  |
| Title: |  |
| **IMWHP2, LLC** | **IMWHP2, LLC** |
| a Delaware limited liability company | a Delaware limited liability company |
| By: |  |
| Name: | Yehuda Shmidman |
| Title: | Chief Executive Officer |

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[SIGNATURE PAGE TO ASSIGNMENT (SETTLEMENT)]

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