Document:

477 Madison Avenue, 24th Floor

New York, New York 10022

Tel 212 488 0794

 

June 04, 2013

 

Mr. Robert D'Loren

Xcel Brands, Inc.

475 Tenth Avenue

New York, NY 10018

 

 

Dear Mr. D'Loren

 

This agreement (“Agreement”)
sets forth the terms of the engagement by Xcel Brands, Inc. (the “Company”) and Threadstone Advisors LLC (collectively
with its affiliates, “Threadstone” or the “Agent”) pursuant to which Threadstone shall act as a placement
agent (the “Services”) for the Company, on a reasonable best efforts basis, in connection with the proposed
offer and placement (the “Offering”) by the Company of equity securities of the Company (the “Securities”).
The terms of the Offering and the Securities shall be mutually agreed upon by the Company and the investors and nothing herein
implies that Agent would have the power or authority to bind the Company or an obligation for the Company to issue any Securities
or complete the Offering.

 

A.Fees and Expenses.
In connection with the Services described above, the Company shall pay to Agent the following compensation:

 

1.Placement Agent’s
Fee. The Company shall pay to Agent a cash placement fee (the “Placement Agent’s Fee”) equal to 7%
of the aggregate purchase price paid by each purchaser of Securities that are placed in the Offering for the purchasers listed
on Exhibit A to this Agreement. The Placement Agent’s Fee will be paid within thirty (30) days of the funding of the Offering.

 

2. Expenses. Agent
shall be responsible for any expenses incurred by Agent related to the Services provided herein. Aside from the Placement Agent’s
Fee, no other compensation shall be due from the Company to the Placement Agent.

 

B.Term and Termination
of Engagement. Except as set forth below, the term (the “Term”) of Agent’s engagement will begin on
the date hereof and end on the earlier of the consummation of the Offering, or June 30, 2013. Notwithstanding anything to the contrary
contained herein, the provisions concerning indemnification, representations, and the Company’s obligations to pay the Placement
Agent’s Fee contained herein will survive any expiration or termination of this Agreement.

 

C.Use of Information.
The Company will furnish Agent such written information as Agent reasonably requests in connection with the performance of its
services hereunder. The Company understands, acknowledges and agrees that, in performing its services hereunder, Agent will use
and rely entirely upon such information as well as publicly available information regarding the Company and other potential parties
to an Offering and that Agent does not assume responsibility for independent verification of the accuracy or completeness of any
information, whether publicly available or otherwise furnished to it, concerning the Company or otherwise relevant to an Offering,
including, without limitation, any financial information, forecasts or projections considered by Agent in connection with the provision
of its services.

 

D.Limitation
of Engagement to the Company. The Company acknowledges that Agent has been retained only by the Company, that Agent is providing
services hereunder as an independent contractor (and not in any fiduciary or agency capacity) and that the Company’s engagement
of Agent is not deemed to be on behalf of, and is not intended to confer rights upon, any shareholder, owner or partner of the
Company or any other person not a party hereto as against Agent or any of its affiliates, or any of its or their respective officers,
directors, controlling persons (within the meaning of Section 15 of the Securities Act or Section 20 of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”)), employees or agents. Unless otherwise expressly agreed in writing by
Agent, no one other than the Company is authorized to rely upon this Agreement or any other statements or conduct of Agent, and
no one other than the Company is intended to be a beneficiary of this Agreement. Agent shall not have the authority to make any
commitment binding on the Company. The Company, in its sole discretion, shall have the right to reject any investor introduced
to it by Agent.

 

Threadstone Advisors is affiliated with Susman
Partners LLC Members FINRA / SIPC

    	 

    	Page 2

    

 

E.Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York applicable to agreements
made and to be fully performed therein. Any disputes which arise under this Agreement, even after the termination of this Agreement,
will be heard only in the state or federal courts located in the City of New York, State of New York. The parties hereto expressly
agree to submit themselves to the jurisdiction of the foregoing courts in the City of New York, State of New York. The parties
hereto expressly waive any rights they may have to contest the jurisdiction, venue or authority of any court sitting in the City
and State of New York. In the event of the bringing of any action, or suit by a party hereto against the other party hereto, arising
out of or relating to this Agreement, the party in whose favor the final judgment or award shall be entered shall be entitled to
have and recover from the other party the costs and expenses incurred in connection therewith, including its reasonable attorneys’
fees. Any rights to trial by jury with respect to any such action, proceeding or suit are hereby waived by Agent and the Company.

 

F.
Representations by Agent. Agent represents and warrants to the Company that Agent (i) is a duly licensed and
registered securities broker-dealer under the rules of FINRA and has all other licenses, approvals and consents necessary to perform
the services, and shall remain a registered securities broker/dealer during the term of this agreement; and (ii) and its affiliates
are currently in compliance with the securities laws and regulations applicable to it.

 

G.Miscellaneous.
The Company represents that it is free to enter into this Agreement and the transactions contemplated hereby. This Agreement shall
not be modified or amended except in writing signed by Agent and the Company. This Agreement shall be binding upon and inure to
the benefit of Agent and the Company and their respective assigns, successors, and legal representatives. This Agreement constitutes
the entire agreement of Agent and the Company, and supersedes any prior agreements, with respect to the subject matter hereof.
If any provision of this Agreement is determined to be invalid or unenforceable in any respect, such determination will not affect
such provision in any other respect, and the remainder of the Agreement shall remain in full force and effect. This Agreement may
be executed in counterparts (including facsimile or .pdf counterparts), each of which shall be deemed an original but all of which
together shall constitute one and the same instrument.

 

[SIGNATURE PAGE TO FOLLOW]

 

 

Threadstone Advisors is affiliated with Susman
Partners LLC Members FINRA / SIPC

    	 

    	Page 3

    

 

	 	Very truly yours,
	 	 
	 	Threadstone Advisors, LLC
	 	 	 
	 	 	 
	 	By	/s/ William S. Susman
	 	 	 
	 	Name:	William S. Susman
	 	Title:	Managing Director
	 	 	 

 

	Accepted and Agreed:	 
	 	 	 
	XCEL BRANDS, INC.	 
	 	 	 
	By	/s/ Seth Burroughs	 
	Name: 	 Seth Burroughs	 
	Title: 	EVP	 

 

 

 

Threadstone Advisors is affiliated with Susman
Partners LLC Members FINRA / SIPC

    	 

    	Page 4

    

 

EXHIBIT A

 

		1.	Trafelet Capital (and affiliated funds)

 

 

 

Threadstone Advisors is affiliated with Susman
Partners LLC Members FINRA / SIPCPROMISSORY NOTE

 

	$60,000.00	As of June 7, 2013
	 	Berwyn, Pennsylvania

  

FOR VALUE RECEIVED, Universal Business Payment
Solutions Acquisition Corporation, a Delaware corporation (“Maker”), promises to pay to the order of UBPS Services,
LLC, a Delaware limited liability company (“Payee”), the principal sum of Sixty Thousand Dollars and no Cents ($60,000.00)
in lawful money of the United States of America, on the terms and conditions described below.

 

1.                  
Principal. The principal balance of this Note shall be repayable on July 31, 2014.

 

2.                  
Interest. Interest shall accrue at a 4% annualized rate using a 365 day year on any unpaid principal balance and
be payable at maturity or repayment of this Note.

 

3.                  
Application of Payments. All payments shall be applied first to payment in full of any reasonable costs incurred
in the collection of any sum due under this Note, including (without limitation) reasonable attorneys’ fees, then to the
reduction of the unpaid principal balance of this Note.

 

4.                  
Events of Default. The following shall constitute Events of Default:

 

(a)                
Failure to Make Required Payments. Failure by Maker to pay the principal of this Note within five (5) business days
following the date when due.

 

(b)                
Voluntary Bankruptcy, Etc. The commencement by Maker of a voluntary case under Title 11, United States Bankruptcy
Code of 1978, as now constituted or hereafter amended (“the Federal Bankruptcy Code”), or any other applicable federal
or state bankruptcy, insolvency, reorganization, rehabilitation or other similar law, or the consent by it to the appointment of
or taking possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator (or other similar official) of Maker
or for any substantial part of its property, or the making by it of any assignment for the benefit of creditors, or the failure
of Maker generally to pay its debts as such debts become due, or the taking of corporate action by Maker in furtherance of any
of the foregoing.

 

(c)                
Involuntary Bankruptcy, Etc. The entry of a decree or order for relief by a court having jurisdiction in the premises
in respect of Maker in an involuntary case under the Federal Bankruptcy Code, as now or hereafter constituted, or any other applicable
federal or state bankruptcy, insolvency or other similar law, or appointing a receiver, liquidator, assignee, custodian, trustee,
sequestrator (or similar official) of Maker or for any substantial part of its property, or ordering the winding-up or liquidation
of its affairs, and the continuance of any such decree or order unstayed and in effect for a period of 60 consecutive days.

 

5.                  
Remedies.  (a) Upon the occurrence of an Event of Default specified in Section
4(a), Payee may, by written notice to Maker, declare this Note to be due and payable, whereupon the principal amount of this Note,
and all other amounts payable hereunder, shall become immediately due and payable without presentment, demand, protest or other
notice of any kind, all of which are hereby expressly waived, anything contained herein or in the documents evidencing the same
to the contrary notwithstanding.

 

(b)                
Upon the occurrence of an Event of Default specified in Sections 4(b) and 4(c), the unpaid principal balance of, and all
other sums payable with regard to, this Note shall automatically and immediately become due and payable, in all cases without any
action on the part of Payee.

 

6.                  
Waivers. Maker and all endorsers and guarantors of, and sureties for, this Note waive presentment for payment, demand,
notice of dishonor, protest and notice of protest with regard to the Note and Maker agrees that any real estate that may be levied
upon pursuant to a judgment obtained by virtue hereof, on any writ of execution issued hereon, may be sold upon any such writ in
whole or in part in any order desired by Payee.

 

    	 

    	 

    

 

7.                  
Unconditional Liability. Maker hereby waives all notices in connection with the delivery, acceptance, performance,
default or enforcement of the payment of this Note, and agrees that its liability shall be unconditional, without regard to the
liability of any other party, and shall not be affected in any manner by any indulgence, extension of time, renewal, waiver or
modification granted or consented to by Payee, and consents to any and all extensions of time, renewals, waivers, or modifications
that may be granted by Payee with respect to the payment or other provisions of this Note, and agree that additional makers, endorsers,
guarantors or sureties may become parties hereto without notice to them or affecting their liability hereunder.

 

8.                  
Assignment. Maker shall not assign its rights or delegate its obligations hereunder without the prior written consent
of Payee. Payee may freely assign its rights or delegate its obligations without any consent whatsoever of Maker.

 

9.                  
Notices. Any notice, request, demand, waiver, consent, approval or other communication that is required or permitted
to be given to either party hereunder shall be in writing and shall be deemed given only if delivered to such party personally
(including by recognized overnight courier), or sent to such party by facsimile transmission (promptly followed by a hard-copy
delivered in accordance with this Section 9), or by registered or certified mail (return receipt requested), with postage and registration
or certification fees thereon prepaid, addressed to the party at its address set forth below:

 

If to Maker:

 

Universal Business Payment Solutions Acquisition
Corporation

1175 Lancaster Avenue, Suite 100

Berwyn, PA 19312

ATTN: Bipin Shah, Chief Executive Officer

 

If to Payee:

 

UBPS Services, LLC

1175 Lancaster Avenue, Suite 100

Berwyn, PA 19312

ATTN: Bipin Shah, Member

 

or to such other address as either party may have specified
in a notice duly given to the other party as provided herein. Such notice, request, demand, waiver, consent, approval or other
communication will be deemed to have been given as of the date so delivered, telegraphed or mailed.

 

10.               
Construction. This Note shall be governed by, and construed in accordance with, the laws of the State of New York.
This Note qualifies as an instrument for the payment of money only, under Section 3213 of the Civil Practice Law and Rules of the
State of New York.

 

11.               
Severability. Any provision contained in this Note that is prohibited or unenforceable in any jurisdiction shall,
as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable
such provision in any other jurisdiction.

 

 

    	2

    	 

    

 

  

 

IN WITNESS WHEREOF, Maker, intending to
be legally bound hereby, has caused this Note to be duly executed as of the day and year first above written.

 

UNIVERSAL BUSINESS PAYMENT SOLUTIONS ACQUISITION CORPORATION

 

By:     /s/ Bipin C. Shah             

Name: Bipin C. Shah

Title:   Chief Executive Officer

 

 

    	3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00218-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00218-of-00352.parquet"}]]