Document:

Exhibit 10.4

 

FIRST AMENDMENT TO

NON-COMPETE AGREEMENT

 

THIS FIRST AMENDMENT TO NON-COMPETE AGREEMENT (“Amendment”) is made and entered into as of February 11, 2019, by and between EagleBank, a Maryland chartered commercial bank (the “Bank”), and Ronald D. Paul (“Executive”).

 

RECITALS:

 

The Bank and Executive have previously entered into a Non-Compete Agreement, dated as of August 1, 2014 (the “Agreement”), providing Executive certain rights, benefits and obligations in the event of termination of Executive’s employment pursuant to the Executive’s Amended and Restated Employment Agreement, dated as of January 31, 2014, as subsequently amended and restated by the Amended and Restated Employment Agreement dated as of January 31, 2017 (as subsequently amended the “Employment Agreement”), which inadvertently reduced Executive’s benefits under his prior employment agreement.

 

NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the parties hereto agree as follows:

 

1.              Section 3.1 of the Agreement is hereby deleted in its entirety and the following is substituted in lieu thereof:

 

3.1                               Non-Compete Fee Upon Involuntary Separation by the Bank without Cause.  In the event of Termination of Executive’s employment by the Bank without Cause, including without limitation, in the event of a Change in Control (both as defined in the Employment Agreement), or a resignation as provided in Section 6.2(b) or 6.2(c) of the Employment Agreement (collectively, “Separation”), and provided that Executive (a) signs and delivers to the Bank no later than twenty-one (21) days after the Termination Date (the “Submission Period”), (a) a General Release and Waiver in the form attached to this Agreement as Exhibit A (the “Release”) and (b) the Certification required monthly in the form of Exhibit B pursuant to Section 3.4 of this Agreement, the Bank shall, with respect to a period of one (1) year following the date on which the Release is executed and delivered to the Bank, continue to pay Executive, monthly in arrears (on or before the last day of the month for the prior month), Executive’s Salary at the rate being paid as of the Termination Date, together with an additional amount equal to one-twelfth of the sum of (i) the most recent annual cash bonus (incentive plan and discretionary), if any, and (ii) the value, as determined in accordance with the Employment Agreement, of all options to purchase Company common stock and awards of restricted stock or restricted stock units, or other equity based

 

 

compensation awards, granted to Executive during the 12 months immediately preceding the Termination Date; for each month of the Restricted Period during which Executive remains in full compliance with the provisions of Articles 3 and 4 of this Agreement.  No payment shall be made (a) in the event Executive delivers timely the Waiver in the form of Exhibit C pursuant to Section 4.2 (b), (b) in respect of any bonus or other compensation paid other than in cash or (c) in the event of Termination with Cause (as defined in the Employment Agreement).  Nothing in this Agreement shall affect Executive’s eligibility for payments under Section 6(d) of the Employment Agreement in accordance with the terms and conditions set forth therein.

 

2.                                      Except as expressly amended hereby, the Agreement shall remain in full force and effect in accordance with the provisions thereof.  As used in the Agreement, the terms: this Agreement,” “herein,” “hereunder,” hereof” and words of similar import shall refer to the Agreement as amended by this Amendment.  All capitalized terms used in this Amendment and not defined herein, which are defined in the Agreement, have the meanings ascribed to them in the Agreement.

 

3.                                      The Agreement, as amended by this Amendment, along with the exhibits and other agreements referred to in the Agreement, constitutes the entire agreement among the parties and supersedes all other prior understandings, agreements or representations by or among the parties, written or oral, with respect to the subject matter of the Agreement.  No provision of this Amendment may be amended other than by an instrument in writing signed by the Bank and Executive. No provision hereof may be waived other than by an instrument in writing signed by the party against whom enforcement is sought.

 

4.                                      This Amendment may be executed in any number of counterparts, each of which shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument.

 

5.                                      This Amendment shall be governed by and construed in accordance with the internal laws of the State of Maryland, without regard to its choice of law provisions.

 

 

IN WITNESS WHEREOF, the parties have executed this Amendment as of the date first written above.

 

	
 
    	
EAGLEBANK
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Leland M. Weinstein
    
	
 
    	
Name:   Leland M. Weinstein
    
	
 
    	
Title:   Lead Director/Chairman of Compensation Committee
    
	
 
    	
 
    
	
 
    	
Ronald   D. Paul
    
	
 
    	
 
    
	
 
    	
/s/   Ronald D. PaulExhibit 10.1

 

VOTING AGREEMENT

 

THIS VOTING AGREEMENT
(this “Agreement”), dated as of February 11, 2019, is made by and among Xcel Brands, Inc., a Delaware corporation,
and its successors and/or assigns (the “Company”) and [•]
(the “Holder”).

 

WHEREAS, the
Company and H Heritage Licensing, LLC (“HHLLC”) have entered into that certain Asset Purchase Agreement, dated
as of [•], 2018 (the “Purchase Agreement”)
with The H Company IP, LLC (“HIP”) and House of Halston, LLC, pursuant to which HHLLC has acquired certain of
the assets of HIP;

 

WHEREAS, pursuant
to the terms of the Purchase Agreement, the Holder will be issued receive Xcel Shares (as defined herein) as HIP’s designee;
and

 

WHEREAS, on
the terms and conditions set forth in the Purchase Agreement, the Holder desires and agrees to be bound by the restrictions on
transfer, and to vote all Xcel Shares issued to it as set forth herein.

 

NOW, THEREFORE,
in consideration of the promises contained herein and for other good and valuable consideration, the receipt, sufficiency and adequacy
of which is hereby acknowledged, the parties hereto agree as follows (with all capitalized terms used and not otherwise defined
herein having their respective meanings as set forth in the Purchase Agreement):

 

1.       Definitions.
All capitalized terms used but not defined herein shall have the meanings given to such terms in the Purchase Agreement. For the
purposes of this Agreement, the following terms shall have the respective meanings set forth below or elsewhere in this Agreement
as referred to below:

 

“Affiliate”
shall mean (i) any other person or entity who directly, or indirectly through one or more intermediaries, is in control of, is
controlled by, or is under common control with, such Holder or a member such Holder’s Immediate Family or (ii) a member of
such Holder’s Immediate Family. For purposes of this definition, control of an entity means the power, directly or indirectly,
to direct or cause the direction of the management and policies of such entity whether by contract, securities ownership or otherwise;
and the terms “controlling” and “controlled” shall have the respective meanings correlative to the foregoing.

 

“Common
Stock” shall mean common stock, par value $0.01 per share, of the Company.

 

“Holder”
means [•] for so long as it owns any Xcel Shares, and its
permitted successors, assigns and direct and indirect transferees who are Related Parties and who become beneficial owners of Xcel
Shares.

 

     

     

    

 

“Immediate
Family” member means any relationship by blood, marriage or adoption, not more remote than first cousin) and any person
(other than a tenant or employee) sharing the household of such person.

 

“Transfer”
means to (i) sell, transfer, assign, or otherwise dispose of, or (ii) enter into any transaction that transfers, in whole or in
part, directly or indirectly, the economic consequence of ownership of.

 

“Xcel
Shares” shall mean any shares of Common Stock or other capital stock of the Company issued to the Holder pursuant to
the Purchase Agreement, together with any capital stock of the Company issued to the Seller in respect of the foregoing as a result
of any stock split, stock dividend, recapitalization, reclassification, exchange or similar event or otherwise.

 

2.       Agreement
to Vote Shares; Irrevocable Proxy. The Holder hereby appoints Robert D’Loren, or in the event that Robert D’Loren
is not the Chief Executive Officer of the Company, such person as the Board of Directors of the Company may appoint after the date
of this Agreement (the “Proxy Holder”) its proxy and attorney-in-fact, with full power of substitution and resubstitution,
to vote or act by written consent during the term of this Agreement with respect to the Xcel Shares. Holder shall take such further
action or execute such other instruments as may be necessary to effectuate the intent of this proxy and limited power of attorney.
The proxy and limited power of attorney granted hereunder by Holder shall be irrevocable during the term of this Agreement, shall
be deemed to be coupled with an interest sufficient in law to support an irrevocable proxy and shall revoke any and all prior proxies
granted by Holder with respect to the matters contemplated hereunder. The power of attorney granted by Holder herein is a limited
durable power of attorney and shall survive the bankruptcy, death or incapacity of the Holder. The proxy and limited power of attorney
granted hereunder shall terminate upon the termination of this Agreement. All parties hereto acknowledge and agree that the Proxy
Holder shall, and the Holder hereby irrevocably consents to, vote all Xcel Shares owned by them in favor of matters recommended
or approved by the Board of Directors of the Company, or, if such matters are neither recommended nor approved by the Board of
Directors of the Company, then at the direction of the Board of Directors of the Company, in respect of all matters for which stockholder
approval is sought or required.

 

3.       No
Voting Trusts or Other Arrangements. The Holder agrees that it will not, and will not permit any entity under its control to,
grant any proxies with respect to the Xcel Shares or subject any of the Xcel Shares to any arrangement with respect to the voting
of the Xcel Shares other than pursuant to this Agreement.

 

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4.       Transfer
and Encumbrance.

 

(a)       The
Holder represents and warrants that (i) Holder shall not grant any liens, claims, charges, security interests or other encumbrances
on the Xcel Shares, other than those that may be created by the Purchase Agreement, the Lock-Up Agreement, and this Agreement;
(ii) Holder shall not grant any options, warrants or other rights, agreements, arrangements or commitments of any character relating
to the pledge, disposition or voting of the Xcel Shares; and (iii) Holder shall not enter into any voting trusts or voting agreements
with respect to the Xcel Shares, other than this Agreement, the Purchase Agreement and applicable trust agreements for estate planning
purposes, including but not limited to charitable remainder trusts. The Holder represents and warrants as of the date of this Agreement
(i) that Holder has full power and authority to enter into, execute and deliver this Agreement and to perform fully the Holder’s
obligations hereunder, and (ii) this Agreement constitutes the legal, valid and binding obligation of the Holder in accordance
with its terms. The Holder covenants that the representations and warranties shall be true and correct as of the date of the issuance
of each Xcel Share, if such shares are ever issued.

 

(b)       In
the event the Holder desires to Transfer any Xcel Shares to one or more partners or members of such Holder, if applicable, or to
an Affiliate of such Holder, or to a member of any such transferee’s Immediate Family, if applicable, (in each case, a “Related
Party”), such Holder may Transfer such Xcel Shares only if, as precondition to such Transfer, the Related Party agrees
in writing, reasonably satisfactory in form and substance to the Company and Proxy Holder, to be bound by this Agreement. Except
as set forth in Section 4(a) and except to the extent prohibited under the Voting Agreement and applicable law, a Holder may, at
any time and from time to time, Transfer some or all of the Xcel Shares held by such Holder to a person or entity who is not a
Related Party, and the Xcel Shares so Transferred shall be free and clear of any restrictions under this Agreement (including,
without limitation, those restrictions contained in Section 2).

 

5.       No
Obligation of Company. Nothing in this Agreement constitutes an obligation of the Company to issue any Xcel Shares and the
Holder acknowledges and agrees that the determination of issuance of any Xcel Shares shall be made in accordance with the Purchase
Agreement or other agreement with the Company.

 

6.       Specific
Performance. Each party hereto acknowledges that it will be difficult to measure in money the damage to the other party if
a party hereto fails to comply with any of the obligations imposed by this Agreement in the event of any such failure, the other
party will not have an adequate remedy at law or damages. Accordingly, each party hereto agrees that injunctive relief or other
equitable remedy, in addition to remedies at law or damages, is the appropriate remedy for any such failure and will not oppose
the granting of such relief on the basis that the other party has an adequate remedy at law. Each party hereto agrees that it will
not seek, and agrees to waive any requirement for, the securing or posting of a bond in connection with any other party’s
seeking or obtaining such equitable relief.

 

7.       Entire
Agreement. This Agreement and the Purchase Agreement supersede all prior agreements, written or oral, among the parties hereto
with respect to the subject matter hereof and contains the entire agreement among the parties with respect to the subject matter
hereof. This Agreement may not be amended or supplemented, and no provisions hereof may be modified or waived, except by an instrument
in writing signed by all the parties hereto. No waiver of any provisions hereof by any party shall be deemed a waiver of any other
provision hereof by any such party, nor shall any such waiver be deemed a continuing waiver of any provision hereof by such party.

 

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8.       Notices.
All notices and other communications pursuant to this Agreement shall be in writing, either hand delivered or sent by certified
or registered mail with charges prepaid or by commercial courier guaranteeing next business day delivery, or sent by facsimile,
and shall be addressed:

 

(i)       in
the case of the Company, to the Company at its principal office set forth in the Purchase Agreement; and

 

(ii)       in
the case of a Holder, to the address provided by such Holder to the Company.

 

Any notice
or other communication pursuant to this Agreement shall be deemed to have been duly given or made and to have become effective
(i) when delivered in hand to the party to which it was directed, (ii) if sent by facsimile or electronic mail and properly addressed
in accordance with the foregoing provisions of this Section 8, when received by the addressee, provided a copy is sent via first-class
mail, postage prepaid, (iii) if sent by commercial courier guaranteeing next business day delivery, on the business day following
the date of delivery to such courier, or (iv) if sent by first-class mail, postage prepaid, and properly addressed in accordance
with the foregoing provisions of this Section 8, (A) when received by the addressee, or (B) on the third business day following
the day of dispatch thereof, whichever of (A) or (B) shall be the earlier.

 

9.       Miscellaneous.

 

(a)       In
addition to other legends that are required, either by agreement or by federal or state securities laws, each certificate representing
any of the Shares shall be marked by the Company with a legend substantially in the following form:

 

“THE SALE, TRANSFER,
HYPOTHECATION, NEGOTIATION, PLEDGE, ASSIGNMENT, ENCUMBRANCE, GRANT OF ANY OPTION, WARRANT OR OTHER RIGHT TO PURCHASE, OR OTHER
DISPOSITION (COLLECTIVELY, “TRANSFER”) OF THE SHARES EVIDENCED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS
AND A GRANT OF PROXY PURSUANT TO THAT CERTAIN VOTING AGREEMENT BY AND BETWEEN XCEL BRANDS, INC. AND THE HOLDER NAMED THEREIN, DATED
AS OF [•], 2018 (THE “VOTING AGREEMENT”),
COPIES OF EACH OF WHICH MAY BE OBTAINED FROM THE SECRETARY OF XCEL BRANDS, INC. NO TRANSFER OF THE SHARES MAY BE MADE UNLESS SPECIFIC
CONDITIONS OF THE VOTING AGREEMENT ARE SATISFIED.”

 

(b)       THIS
AGREEMENT SHALL BE DEEMED TO BE MADE IN AND IN ALL RESPECTS SHALL BE INTERPRETED, CONSTRUED AND GOVERNED BY AND IN ACCORDANCE WITH
THE LAWS OF THE STATE OF DELAWARE WITHOUT REGARD TO THE CONFLICT OF LAW PRINCIPLES THEREOF. The parties hereby irrevocably
submit to the exclusive jurisdiction of the courts of the State of Delaware and the federal courts of the United States of America,
in each case sitting in Delaware, solely in respect of the interpretation and enforcement of the provisions of this Agreement and
in respect of the transactions contemplated hereby, and hereby waive, and agree not to assert, as a defense in any action, suit
or proceeding for the interpretation or enforcement hereof or of any such document, that it is not subject thereto or that such
action, suit or proceeding may not be brought or is not maintainable in said courts or that the venue thereof may not be appropriate
or that this Agreement may not be enforced in or by such courts, and the parties hereto irrevocably agree that all claims with
respect to such action or proceeding shall be heard and determined in such a Delaware State or federal court. The parties hereby
consent to and grant any such court jurisdiction over the person of such parties and over the subject matter of such dispute and
agree that mailing of process or other papers in connection with any such action or proceeding in the manner provided in Section
8 or in such other manner as may be permitted by law shall be valid and sufficient service thereof.

 

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(c)       EACH
PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT
ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY
JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
BY THIS AGREEMENT. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (i) NO REPRESENTATIVE, AGENT OR ATTORNEY 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, (ii)
EACH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, AND (iii) EACH PARTY MAKES THIS WAIVER VOLUNTARILY.

 

(d)       If
any provision of this Agreement or the application of such provision to any person or circumstances shall be held invalid or unenforceable
by a court of competent jurisdiction, such provision or application shall be unenforceable only to the extent of such invalidity
or unenforceability, and the remainder of the provision held invalid or unenforceable and the application of such provision to
persons or circumstances, other than the party as to which it is held invalid, and the remainder of this Agreement, shall not be
affected.

 

(e)       This
Agreement may be executed in one or more counterparts (including by facsimile), each of which shall be deemed to be an original
but all of which together shall constitute one and the same instrument.

 

(f)       This
Agreement shall terminate automatically upon the earlier of: (i) the Transfer of all Xcel Shares held by the Holder to persons
or entities who are not Related Parties of the Holder; or (ii) the occurrence of a Change of Control.

 

(g)       Each
party hereto shall execute and deliver such additional documents as may be necessary or desirable to effect the transactions contemplated
by this Agreement.

 

(h)       No
party to this Agreement may assign any of its rights or obligations under this Agreement without the prior written consent of the
other party hereto. Any assignment contrary to the provisions of this Section 9(h) shall be null and void.

 

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(i)       Notwithstanding
anything in this Agreement to the contrary, if there shall at any time be more than one Holder, the representations, warranties
and covenants of each such Holder set forth herein shall be joint and several.

 

[SIGNATURE PAGE FOLLOWS]

 

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IN WITNESS WHEREOF,
the parties hereto have executed and delivered this Voting Agreement as of the date first written above.

 

	 	XCEL BRANDS, INC.
	 	 	 	 
	 	By:	 
	 	 	Name:	James Haran
	 	 	Title:	Chief Financial Officer

 

Signature Page to Voting Agreement

 

     

     

    

 

	 	HOLDER:
	 	 	 	 
	 	[•]
	 	 	 	 
	 	By:	   
	 	 	Name:	[•]
	 	 	Title:	[•]

 

Signature Page to Voting Agreement

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