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Unassociated Document

    NEITHER
THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAVE
BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM,
OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS
EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE
FORM AND SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
COMPANY.  THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF
THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR
OTHER LOAN SECURED BY SUCH SECURITIES.

    

    COMMON
STOCK PURCHASE WARRANT

    

     CLEVELAND
BIOLABS, INC.

    
    

     

    
      	Warrant Shares:
      ______       	Initial Issue Date:
      March 2, 2010

    

     

    THIS
COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies
that, for value received, _____________ (the “Holder”) is entitled,
upon the terms and subject to the limitations on exercise and the conditions
hereinafter set forth, at any time on or after September 2, 2010 (the “Initial Exercise
Date”) and on or prior to the close of business on March 2, 2015 (the
“Termination
Date”) but not thereafter, to subscribe for and purchase from Cleveland
BioLabs, Inc., a Delaware corporation (the “Company”), up to
______ shares (the “Warrant Shares”) of
Common Stock.  The purchase price of one share of Common Stock under
this Warrant shall be equal to the Exercise Price, as defined in Section
2(b).

     

    Section 1. Definitions.  Capitalized
terms used and not otherwise defined herein shall have the meanings set forth in
that certain Securities Purchase Agreement (the “Purchase Agreement”),
dated February 25, 2010, among the Company and the purchasers signatory
thereto.

     

    Section 2. Exercise.

     

    a)           Exercise of
Warrant.  Exercise of the purchase rights represented by this
Warrant may be made, in whole or in part, at any time or times on or after the
Initial Exercise Date and on or before the Termination Date by delivery to the
Company (or such other office or agency of the Company as it may designate by
notice in writing to the registered Holder at the address of the Holder
appearing on the books of the Company) of a duly executed facsimile copy of the
Notice of Exercise Form annexed hereto. Within three (3) Trading Days following
the date of exercise as aforesaid, the Holder shall deliver the aggregate
Exercise Price for the shares specified in the applicable Notice of Exercise by
wire transfer or cashier’s check drawn on a United States bank unless the
cashless exercise procedure specified in Section 2(c) below is specified in the
applicable Notice of Exercise. Notwithstanding anything herein to the contrary,
the Holder shall not be required to physically surrender this Warrant to the
Company until the Holder has purchased all of the Warrant Shares available
hereunder and the Warrant has been exercised in full, in which case, the Holder
shall surrender this Warrant to the Company for cancellation within three (3)
Trading Days of the date the final Notice of Exercise is delivered to the
Company. Partial exercises of this Warrant resulting in purchases of a portion
of the total number of Warrant Shares available hereunder shall have the effect
of lowering the outstanding number of Warrant Shares purchasable hereunder in an
amount equal to the applicable number of Warrant Shares
purchased.  The Holder and the Company shall maintain records showing
the number of Warrant Shares purchased and the date of such purchases. The
Company shall deliver any objection to any Notice of Exercise Form within one
(1) Business Day of receipt of such notice.  The Holder and any assignee, by
acceptance of this Warrant, acknowledge and agree that, by reason of the
provisions of this paragraph, following the purchase of a portion of the Warrant
Shares hereunder, the number of Warrant Shares available for purchase hereunder
at any given time may be less than the amount stated on the face
hereof.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    b)           Exercise
Price.  The exercise price per share of the Common Stock under
this Warrant shall be $4.50, subject to adjustment
hereunder (the “Exercise
Price”).

     

    c)           Cashless Exercise.
This Warrant may also be exercised, in whole or in part, at any time and from
time to time by means of a “cashless exercise” in which the Holder shall be
entitled to receive a certificate for the number of Warrant Shares equal to the
quotient obtained by dividing [(A-B) (X)] by (A), where:

    
    

     

    
      	 	      
              (A)
      =

            	the VWAP on the
      Trading Day immediately preceding the date on which Holder elects to
      exercise this Warrant by means of a “cashless exercise,” as set forth in
      the applicable Notice of Exercise;

    

     

    
      	 	      
              (B)
      =

            	the Exercise Price
      of this Warrant, as adjusted hereunder;
and

    

     

    
      	 	      
              (X)
      =

            	the number of
      Warrant Shares that would be issuable upon exercise of this Warrant in
      accordance with the terms of this Warrant if such exercise were by means
      of a cash exercise rather than a cashless exercise, or if only a portion
      of this Warrant is being exercised, the portion of this Warrant being
      exercised (as of the date of
calculation).

    

     

    
      	
               
      

            	
              d)

            	
              Mechanics of
      Exercise.

            

    

     

    i.      Delivery of Certificates
Upon Exercise. Certificates for shares purchased hereunder shall be
transmitted by the Transfer Agent to the Holder by crediting the account of the
Holder’s prime broker with the Depository Trust Company through its Deposit
Withdrawal Agent Commission (“DWAC”) system if the
Company is then a participant in such system and either (A) there is an
effective registration statement permitting the issuance of the Warrant Shares
to or resale of the Warrant Shares by the Holder or (B) the shares are eligible
for resale without volume or manner of sale limitations or current public
information requirements pursuant to Rule 144 or (C) if the shares are subject
to public information requirements under Rule 144(c) and the shares are resold
by the Holder pursuant to Rule 144, and otherwise by physical delivery to the
address specified by the Holder in the Notice of Exercise by the date that is
three (3) Trading Days after the latest of (A) the delivery to the Company of
the Notice of Exercise Form, (B) surrender of this Warrant (if required), and
(C) payment of the aggregate Exercise Price as set forth above (including by
cashless exercise, if permitted) (such date, the “Warrant Share Delivery
Date”). The Warrant Shares shall be deemed to have been issued, and
Holder or any other person so designated to be named therein shall be deemed to
have become a holder of record of such shares for all purposes, as of the date
the Warrant has been exercised, with payment to the Company of the Exercise
Price (or by cashless exercise, if permitted) and all taxes required to be paid
by the Holder, if any, pursuant to Section 2(d)(vi) prior to the issuance of
such shares, having been paid.  If the Company fails for any reason to
deliver to the Holder certificates evidencing the Warrant Shares subject to a
Notice of Exercise by the Warrant Share Delivery Date, the Company shall pay to
the Holder, in cash, as liquidated damages and not as a penalty, for each $1,000
of Warrant Shares subject to such exercise (based on the VWAP of the Common
Stock on the date of the applicable Notice of Exercise), $10 per Trading Day
(increasing to $20 per Trading Day on the fifth Trading Day after such
liquidated damages begin to accrue) for each Trading Day after such Warrant
Share Delivery Date until such certificates are delivered or Holder rescinds
such exercise.

     

    
      
         

      

      
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    ii.          Delivery of New Warrants
Upon Exercise.  If this Warrant shall have been exercised in
part, the Company shall, at the request of a Holder and upon surrender of this
Warrant certificate, at the time of delivery of the certificate or certificates
representing Warrant Shares, deliver to Holder a new Warrant evidencing the
rights of Holder to purchase the unpurchased Warrant Shares called for by this
Warrant, which new Warrant shall in all other respects be identical with this
Warrant.

     

    iii.         Rescission Rights. If
the Company fails to cause the Transfer Agent to transmit to the Holder a
certificate or the certificates representing the Warrant Shares pursuant to
Section 2(d)(i) by the Warrant Share Delivery Date, then, the Holder will have
the right to rescind such exercise.

     

    iv.         Compensation for Buy-In on
Failure to Timely Deliver Certificates Upon Exercise. In addition to any
other rights available to the Holder, if the Company fails to cause the Transfer
Agent to transmit to the Holder a certificate or the certificates representing
the Warrant Shares pursuant to an exercise on or before the Warrant Share
Delivery Date, and if after such date the Holder is required by its broker to
purchase (in an open market transaction or otherwise) or the Holder’s brokerage
firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a
sale by the Holder of the Warrant Shares which the Holder anticipated receiving
upon such exercise (a “Buy-In”), then the
Company shall (A) pay in cash to the Holder the amount, if any, by which (x) the
Holder’s total purchase price (including brokerage commissions, if any) for the
shares of Common Stock so purchased exceeds (y) the amount obtained by
multiplying (1) the number of Warrant Shares that the Company was required to
deliver to the Holder in connection with the exercise at issue times (2) the
price at which the sell order giving rise to such purchase obligation was
executed, and (B) at the option of the Holder, either reinstate the portion of
the Warrant and equivalent number of Warrant Shares for which such exercise was
not honored (in which case such exercise shall be deemed rescinded) or deliver
to the Holder the number of shares of Common Stock that would have been issued
had the Company timely complied with its exercise and delivery obligations
hereunder. For example, if the Holder purchases Common Stock having a total
purchase price of $11,000 to cover a Buy-In with respect to an attempted
exercise of shares of Common Stock with an aggregate sale price giving rise to
such purchase obligation of $10,000, under clause (A) of the immediately
preceding sentence the Company shall be required to pay the Holder $1,000. The
Holder shall provide the Company written notice indicating the amounts payable
to the Holder in respect of the Buy-In and, upon request of the Company,
evidence of the amount of such loss. Nothing herein shall limit a Holder’s right
to pursue any other remedies available to it hereunder, at law or in equity
including, without limitation, a decree of specific performance and/or
injunctive relief with respect to the Company’s failure to timely deliver
certificates representing shares of Common Stock upon exercise of the Warrant as
required pursuant to the terms hereof.

     

    
      
         

      

      
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    v.         No Fractional Shares or
Scrip.  No fractional shares or scrip representing fractional
shares shall be issued upon the exercise of this Warrant.  As to any
fraction of a share which the Holder would otherwise be entitled to purchase
upon such exercise, the Company shall, at its election, either pay a cash
adjustment in respect of such final fraction in an amount equal to such fraction
multiplied by the Exercise Price or round up to the next whole
share.

     

    vi.         Charges, Taxes and
Expenses.  Issuance of certificates for Warrant Shares shall be
made without charge to the Holder for any issue or transfer tax or other
incidental expense in respect of the issuance of such certificate, all of which
taxes and expenses shall be paid by the Company, and such certificates shall be
issued in the name of the Holder or in such name or names as may be directed by
the Holder; provided, however, that in the
event certificates for Warrant Shares are to be issued in a name other than the
name of the Holder, this Warrant when surrendered for exercise shall be
accompanied by the Assignment Form attached hereto duly executed by the Holder
and the Company may require, as a condition thereto, the payment of a sum
sufficient to reimburse it for any transfer tax incidental thereto.

     

    vii.         Closing of
Books.  The Company will not close its stockholder books or
records in any manner which prevents the timely exercise of this Warrant,
pursuant to the terms hereof.

     

    e)           Holder’s Exercise
Limitations. Notwithstanding anything to the contrary contained in this
Warrant, this Warrant shall not be exercisable by the Holder hereof to the
extent (but only to the extent) that the Holder or any of its affiliates would
beneficially own in excess of 4.9% (the “Maximum Percentage”)
of the Common Stock. To the extent the above limitation applies, the
determination of whether this Warrant shall be exercisable (vis-à-vis other
convertible, exercisable or exchangeable securities owned by the Holder or any
of its affiliates) and of which such securities shall be exercisable (as among
all such securities owned by the Holder) shall, subject to such Maximum
Percentage limitation, be determined on the basis of the first submission to the
Company for conversion, exercise or exchange (as the case may be). No prior
inability to exercise this Warrant pursuant to this paragraph shall have any
effect on the applicability of the provisions of this paragraph with
respect to any subsequent determination of exercisability. For the purposes of
this paragraph, beneficial ownership and all determinations and calculations
(including, without limitation, with respect to calculations of percentage
ownership) shall be determined in accordance with Section 13(d) of the Exchange
Act and the rules and regulations promulgated thereunder. The provisions of this
paragraph shall be implemented in a manner otherwise than in strict conformity
with the terms of this paragraph to correct this paragraph (or any portion
hereof) which may be defective or inconsistent with the intended Maximum
Percentage beneficial ownership limitation herein contained or to make changes
or supplements necessary or desirable to properly give effect to such Maximum
Percentage limitation. The limitations contained in this paragraph shall apply
to a successor Holder of this Warrant. The holders of Common Stock shall be
third party beneficiaries of this paragraph and the Company may not waive this
paragraph without the consent of holders of a majority of its Common Stock. For
any reason at any time, upon the written or oral request of the Holder, the
Company shall within one (1) Business Day confirm orally and in writing to the
Holder the number of shares of Common Stock then outstanding, including by
virtue of any prior conversion or exercise of convertible or exercisable
securities into Common Stock, including, without limitation, pursuant to this
Warrant or securities issued pursuant to the Purchase Agreement.

     

    
      
         

      

      
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    Section 3. Certain
Adjustments.

     

    a)           Stock Dividends and
Splits. If the Company, at any time while this Warrant is outstanding:
(i) pays a stock dividend or otherwise makes a distribution or distributions on
shares of its Common Stock or any other equity or equity equivalent securities
payable in shares of Common Stock (which, for avoidance of doubt, shall not
include any shares of Common Stock issued by the Company upon exercise of this
Warrant), (ii) subdivides outstanding shares of Common Stock into a larger
number of shares, (iii) combines (including by way of reverse stock split)
outstanding shares of Common Stock into a smaller number of shares or (iv)
issues by reclassification of shares of the Common Stock any shares of capital
stock of the Company, then in each case the Exercise Price shall be multiplied
by a fraction of which the numerator shall be the number of shares of Common
Stock (excluding treasury shares, if any) outstanding immediately before such
event and of which the denominator shall be the number of shares of Common Stock
outstanding immediately after such event, and the number of shares issuable upon
exercise of this Warrant shall be proportionately adjusted such that the
aggregate Exercise Price of this Warrant shall remain unchanged.  Any
adjustment made pursuant to this Section 3(a) shall become effective immediately
after the record date for the determination of stockholders entitled to receive
such dividend or distribution and shall become effective immediately after the
effective date in the case of a subdivision, combination or
re-classification.

     

    b)           Subsequent Equity
Sales. If the Company or any Subsidiary thereof, as applicable, at any
time while this Warrant is outstanding, shall sell or grant any option to
purchase, or sell or grant any right to reprice, or otherwise dispose of or
issue (or announce any offer, sale, grant or any option to purchase or other
disposition) any Common Stock or Common Stock Equivalents, at an effective price
per share less than the Exercise Price then in effect (such lower price, the
“Base Share
Price” and each such issuance or deemed issuance, a “Dilutive Issuance”)
(it being understood and agreed that if the holder of the Common Stock or Common
Stock Equivalents so issued shall at any time, whether by operation of purchase
price adjustments, reset provisions, floating conversion, exercise or exchange
prices or otherwise, or due to warrants, options or rights per share which are
issued in connection with such issuance, be entitled to receive shares of Common
Stock at an effective price per share that is less than the Exercise Price, such
issuance shall be deemed to have occurred for less than the Exercise Price on
such date of the Dilutive Issuance at such effective price), then,
simultaneously with the consummation of each Dilutive Issuance, the Exercise
Price shall be reduced to equal the Base Share Price. Notwithstanding the
foregoing, no adjustments shall be made, paid or issued under this Section 3(b)
in respect of an Exempt Issuance. The Company shall notify the Holder, in
writing, no later than the Trading Day following the issuance or deemed issuance
of any Common Stock or Common Stock Equivalents subject to this Section 3(b),
indicating therein the applicable issuance price, or applicable reset price,
exchange price, conversion price and other pricing terms (such notice, the
“Dilutive Issuance
Notice”). For purposes of clarification, whether or not the Company
provides a Dilutive Issuance Notice pursuant to this Section 3(b), upon the
occurrence of any Dilutive Issuance the Holder is entitled to receive a number
of Warrant Shares based upon the Base Share Price regardless of whether the
Holder accurately refers to the Base Share Price in the Notice of Exercise. For
purposes of the foregoing, if the Company enters into a Variable Rate
Transaction, despite the prohibition thereon in the Purchase Agreement, the
Company shall be deemed to have issued Common Stock or Common Stock Equivalents
at the lowest possible conversion or exercise price at which such securities may
be converted or exercised.

     

    c)           Subsequent Rights
Offerings. If the Company, at any time while the Warrant is outstanding,
shall issue rights, options or warrants to all holders of Common Stock (and not
to the Holders) entitling them to subscribe for or purchase shares of Common
Stock at a price per share less than the VWAP on the record date mentioned
below, then, the Exercise Price shall be multiplied by a fraction, of which the
denominator shall be the number of shares of the Common Stock outstanding on the
date of issuance of such rights, options or warrants plus the number of
additional shares of Common Stock offered for subscription or purchase, and of
which the numerator shall be the number of shares of the Common Stock
outstanding on the date of issuance of such rights, options or warrants plus the
number of shares which the aggregate offering price of the total number of
shares so offered (assuming receipt by the Company in full of all consideration
payable upon exercise of such rights, options or warrants) would purchase at
such VWAP. Such adjustment shall be made whenever such rights, options or
warrants are issued, and shall become effective immediately after the record
date for the determination of stockholders entitled to receive such rights,
options or warrants.

     

    d)           Pro Rata
Distributions.  If the Company, at any time while this Warrant
is outstanding, shall distribute to all holders of Common Stock (and not to the
Holders) evidences of its indebtedness or assets (including cash and cash
dividends) or rights or warrants to subscribe for or purchase any security other
than the Common Stock (which shall be subject to Section 3(c)), then in each
such case the Exercise Price shall be adjusted by multiplying the Exercise Price
in effect immediately prior to the record date fixed for determination of
stockholders entitled to receive such distribution by a fraction of which the
denominator shall be the VWAP determined as of the record date mentioned above,
and of which the numerator shall be such VWAP on such record date less the then
per share fair market value at such record date of the portion of such assets or
evidence of indebtedness or rights or warrants so distributed applicable to one
outstanding share of the Common Stock as determined by the Board of Directors in
good faith.  In either case the adjustments shall be described in a
statement provided to the Holder of the portion of assets or evidences of
indebtedness so distributed or such subscription rights applicable to one share
of Common Stock. Such adjustment shall be made whenever any such distribution is
made and shall become effective immediately after the record date mentioned
above.

     

    
      
         

      

      
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    e)           Fundamental
Transaction. If, at any time while this Warrant is outstanding, (i) the
Company, directly or indirectly, in one or more related transactions through a
Subsidiary or otherwise effects any merger or consolidation of the Company with
or into another Person, (ii) the Company, directly or indirectly, effects any
sale, lease, license, assignment, transfer, conveyance or other disposition of
all or substantially all of its assets in one or a series of related
transactions, (iii) any, direct or indirect, purchase offer, tender offer or
exchange offer (whether by the Company or another Person) is completed pursuant
to which holders of Common Stock are permitted to sell, tender or exchange their
shares for other securities, cash or property and has been accepted by the
holders of 50% or more of the outstanding Common Stock, (iv) the Company,
directly or indirectly, in one or more related transactions effects any
reclassification, reorganization or recapitalization of the Common Stock or any
compulsory share exchange pursuant to which the Common Stock is effectively
converted into or exchanged for other securities, cash or property, (v) the
Company, directly or indirectly, in one or more related transactions consummates
a stock or share purchase agreement or other business combination (including,
without limitation, a reorganization, recapitalization, spin-off or scheme of
arrangement) with another Person whereby such other Person acquires more than
50% of the outstanding shares of Common Stock (not including any shares of
Common Stock held by the other Person or other Persons making or party to, or
associated or affiliated with the other Persons making or party to, such stock
or share purchase agreement or other business combination) (each a “Fundamental
Transaction”), then, upon any subsequent exercise of this Warrant, the
Holder shall have the right to receive, for each Warrant Share that would have
been issuable upon such exercise immediately prior to the occurrence of such
Fundamental Transaction, upon exercise by the Holder (without regard to any
limitation in Section 2(e) on the exercise of this Warrant), the number of
shares of Common Stock of the successor or acquiring corporation or of the
Company, if it is the surviving corporation, and any additional consideration
(the “Alternate
Consideration”) receivable as a result of such Fundamental Transaction by
a holder of the number of shares of Common Stock for which this Warrant is
exercisable immediately prior to such Fundamental Transaction (without regard to
any limitation in Section 2(e) on the exercise of this Warrant).  For
purposes of any such exercise, the determination of the Exercise Price shall be
appropriately adjusted to apply to such Alternate Consideration based on the
amount of Alternate Consideration issuable in respect of one share of Common
Stock in such Fundamental Transaction, and the Company shall apportion the
Exercise Price among the Alternate Consideration in a reasonable manner
reflecting the relative value of any different components of the Alternate
Consideration.  If holders of Common Stock are given any choice as to
the securities, cash or property to be received in a Fundamental Transaction,
then the Holder shall be given the same choice as to the Alternate Consideration
it receives upon any exercise of this Warrant following such Fundamental
Transaction.  Notwithstanding anything to the contrary, in the event
of a Fundamental Transaction that is (1) an all cash transaction, (2) a “Rule
13e-3 transaction” as defined in Rule 13e-3 under the Exchange Act, or (3) a
Fundamental Transaction involving a person or entity not traded on a national
securities exchange, including, but not limited to, the Nasdaq Global Select
Market, the Nasdaq Global Market, or the Nasdaq Capital Market, the Company or
any Successor Entity (as defined below) shall, at the Holder’s option,
exercisable at any time concurrently with, or within 30 days after, the
consummation of the Fundamental Transaction, purchase this Warrant from the
Holder by paying to the Holder an amount of cash equal to the Black Scholes
Value of the remaining unexercised portion of this Warrant on the date of the
consummation of such Fundamental Transaction.  “Black Scholes Value”
means the value of this Warrant based on the Black Scholes Option Pricing Model
obtained from the “OV” function on Bloomberg, L.P. (“Bloomberg”)
determined as of the day of consummation of the applicable Fundamental
Transaction for pricing purposes and reflecting (A) a risk-free interest rate
corresponding to the U.S. Treasury rate for a period equal to the time between
the date of the public announcement of the applicable Fundamental Transaction
and the Termination Date, (B) an expected volatility equal to the greater of
100% and the 100 day volatility obtained from the HVT function on Bloomberg as
of the Trading Day immediately following the public announcement of the
applicable Fundamental Transaction, (C) if applicable, the underlying price per
share used in such calculation shall be the sum of the price per share being
offered in cash, if any, plus the value of any non-cash consideration, if any,
being offered in such Fundamental Transaction and (D) a remaining option time
equal to the time between the date of the public announcement of the applicable
Fundamental Transaction and the Termination Date.  The Company shall
cause any successor entity in a Fundamental Transaction in which the Company is
not the survivor (the “Successor Entity”) to
assume in writing all of the obligations of the Company under this Warrant and
the other Transaction Documents in accordance with the provisions of this
Section 3(e) and shall, at the option of the holder of this Warrant, deliver to
the Holder in exchange for this Warrant a security of the Successor Entity
evidenced by a written instrument substantially similar in form and substance to
this Warrant which is exercisable for a corresponding number of shares of
capital stock of such Successor Entity (or its parent entity) equivalent to the
shares of Common Stock acquirable and receivable upon exercise of this Warrant
(without regard to any limitations on the exercise of this Warrant) prior to
such Fundamental Transaction, and with an exercise price which applies the
exercise price hereunder to such shares of capital stock (but taking into
account the relative value of the shares of Common Stock pursuant to such
Fundamental Transaction and the value of such shares of capital stock, such
number of shares of capital stock and such exercise price being for the purpose
of protecting the economic value of this Warrant immediately prior to the
consummation of such Fundamental Transaction). Upon the occurrence of any such
Fundamental Transaction, the Successor Entity shall succeed to, and be
substituted for (so that from and after the date of such Fundamental
Transaction, the provisions of this Warrant and the other Transaction Documents
referring to the “Company” shall refer instead to the Successor Entity), and may
exercise every right and power of the Company and shall assume all of the
obligations of the Company under this Warrant and the other Transaction
Documents with the same effect as if such Successor Entity had been named as the
Company herein.  The terms of any agreement pursuant to which a
Fundamental Transaction is effected shall include terms requiring any such
Successor Entity to comply with the provisions of this Section 3(e) and ensuring
that this Warrant (or any such replacement security) will be similarly adjusted
upon any subsequent transaction analogous to a Fundamental Transaction as if
this Warrant (and any subsequent warrants) were fully exercisable and without
regard to any limitations on the exercise of the Warrant (provided
that the Holder shall continue to be entitled to the benefit of the Maximum
Percentage applied, however with respect to shares of capital stock registered
under the Exchange Act and thereafter receivable upon exercise of this Warrant
(or any other Warrant).

     

    
      
         

      

      
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    f)           Calculations. All
calculations under this Section 3 shall be made to the nearest cent or the
nearest 1/100th of a share, as the case may be. For purposes of this Section 3,
the number of shares of Common Stock deemed to be issued and outstanding as of a
given date shall be the sum of the number of shares of Common Stock (excluding
treasury shares, if any) issued and outstanding.

     

    g)           Notice to
Holder.

     

    i.      Adjustment to Exercise
Price. Whenever the Exercise Price is adjusted pursuant to any provision
of this Section 3, the Company shall promptly mail to the Holder a notice
setting forth the Exercise Price after such adjustment and any resulting
adjustment to the number of Warrant Shares and setting forth a brief statement
of the facts requiring such adjustment.

     

    ii.           Notice to Allow Exercise by
Holder. If (A) the Company shall declare a dividend (or any other
distribution in whatever form) on the Common Stock, (B) the Company shall
declare a special nonrecurring cash dividend on or a redemption of the Common
Stock, (C) the Company shall authorize the granting to all holders of the Common
Stock rights or warrants to subscribe for or purchase any shares of capital
stock of any class or of any rights, (D) the approval of any stockholders of the
Company shall be required in connection with any reclassification of the Common
Stock, any consolidation or merger to which the Company is a party, any sale or
transfer of all or substantially all of the assets of the Company, or any
compulsory share exchange whereby the Common Stock is converted into other
securities, cash or property, or (E) the Company shall authorize the voluntary
or involuntary dissolution, liquidation or winding up of the affairs of the
Company, then, in each case, the Company shall cause to be mailed to the Holder
at its last address as it shall appear upon the Warrant Register of the Company,
at least 20 calendar days prior to the applicable record or effective date
hereinafter specified, a notice stating (x) the date on which a record is to be
taken for the purpose of such dividend, distribution, redemption, rights or
warrants, or if a record is not to be taken, the date as of which the holders of
the Common Stock of record to be entitled to such dividend, distributions,
redemption, rights or warrants are to be determined or (y) the date on which
such reclassification, consolidation, merger, sale, transfer or share exchange
is expected to become effective or close, and the date as of which it is
expected that holders of the Common Stock of record shall be entitled to
exchange their shares of the Common Stock for securities, cash or other property
deliverable upon such reclassification, consolidation, merger, sale, transfer or
share exchange; provided that the failure to mail such notice or any defect
therein or in the mailing thereof shall not affect the validity of the corporate
action required to be specified in such notice.  To the extent that
any notice provided hereunder constitutes, or contains, material, non-public
information regarding the Company or any of the Subsidiaries, the Company shall
simultaneously file such notice with the Commission pursuant to a Current Report
on Form 8-K.  The Holder shall remain entitled to exercise this
Warrant during the period commencing on the date of such notice to the effective
date of the event triggering such notice  except as may otherwise be
expressly set forth herein.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

       

    

    Section 4. Transfer of
Warrant.

     

    a)           Transferability.  Subject
to compliance with any applicable securities laws and the conditions set forth
in Section 4(d) hereof and to the provisions of Section 4.1 of the Purchase
Agreement, this Warrant and all rights hereunder (including, without limitation,
any registration rights) are transferable, in whole or in part, upon surrender
of this Warrant at the principal office of the Company or its designated agent,
together with a written assignment of this Warrant substantially in the form
attached hereto duly executed by the Holder or its agent or attorney and funds
sufficient to pay any transfer taxes payable upon the making of such
transfer.  Upon such surrender and, if required, such payment, the
Company shall execute and deliver a new Warrant or Warrants in the name of the
assignee or assignees, as applicable, and in the denomination or denominations
specified in such instrument of assignment, and shall issue to the assignor a
new Warrant evidencing the portion of this Warrant not so assigned, and this
Warrant shall promptly be cancelled.  The Warrant, if properly
assigned in accordance herewith, may be exercised by a new holder for the
purchase of Warrant Shares without having a new Warrant issued.

     

    b)           New Warrants. This
Warrant may be divided or combined with other Warrants upon presentation hereof
at the aforesaid office of the Company, together with a written notice
specifying the names and denominations in which new Warrants are to be issued,
signed by the Holder or its agent or attorney.  Subject to compliance
with Section 4(a), as to any transfer which may be involved in such division or
combination, the Company shall execute and deliver a new Warrant or Warrants in
exchange for the Warrant or Warrants to be divided or combined in accordance
with such notice. All Warrants issued on transfers or exchanges shall be dated
the date hereof and shall be identical with this Warrant except as to the number
of Warrant Shares issuable pursuant thereto.

     

    c)           Warrant Register. The
Company shall register this Warrant, upon records to be maintained by the
Company for that purpose (the “Warrant Register”),
in the name of the record Holder hereof from time to time.  The
Company may deem and treat the registered Holder of this Warrant as the absolute
owner hereof for the purpose of any exercise hereof or any distribution to the
Holder, and for all other purposes, absent actual notice to the
contrary.

     

    d)           Transfer
Restrictions. If, at the time of the surrender of this Warrant in connection with
any transfer of this Warrant, the transfer of this Warrant shall not be either
(i) registered pursuant to an effective registration statement under the Securities Act and under applicable state securities or blue sky laws or
(ii) eligible for resale without volume or manner-of-sale restrictions or
current public information requirements pursuant to Rule 144, the Company may
require, as a condition of allowing such transfer, that the Holder or transferee
of this Warrant, as the case may be, comply
with the provisions of Section 5.7 of the Purchase
Agreement.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

       

    

    e)           Representation by the
Holder.  The Holder, by the acceptance hereof, represents and
warrants that it is acquiring this Warrant and, upon any exercise hereof, will
acquire the Warrant Shares issuable upon such exercise, for its own account and
not with a view to or for distributing or reselling such Warrant Shares or any
part thereof in violation of the Securities Act or any applicable state
securities law, except pursuant to sales registered or exempted under the
Securities Act.

     

    Section 5. Miscellaneous.

     

    a)           No Rights as Stockholder
Until Exercise.  This Warrant does not entitle the Holder to
any voting rights, dividends or other rights as a stockholder of the Company
prior to the exercise hereof as set forth in Section 2(d)(i).

     

    b)           Loss, Theft, Destruction or
Mutilation of Warrant. The Company covenants that upon receipt by the
Company of evidence reasonably satisfactory to it of the loss, theft,
destruction or mutilation of this Warrant or any stock certificate relating to
the Warrant Shares, and in case of loss, theft or destruction, of indemnity or
security reasonably satisfactory to it (which, in the case of the Warrant, shall
not include the posting of any bond), and upon surrender and cancellation of
such Warrant or stock certificate, if mutilated, the Company will make and
deliver a new Warrant or stock certificate of like tenor and dated as of such
cancellation, in lieu of such Warrant or stock certificate.

     

    c)           Saturdays, Sundays,
Holidays, etc.  If the last or appointed day for the taking of
any action or the expiration of any right required or granted herein shall not
be a Business Day, then, such action may be taken or such right may be exercised
on the next succeeding Business Day.

     

    d)           Authorized
Shares.

     

    The
Company covenants that, during the period the Warrant is outstanding, it will
reserve from its authorized and unissued Common Stock a sufficient number of
shares to provide for the issuance of the Warrant Shares upon the exercise of
any purchase rights under this Warrant.  The Company further covenants
that its issuance of this Warrant shall constitute full authority to its
officers who are charged with the duty of executing stock certificates to
execute and issue the necessary certificates for the Warrant Shares upon the
exercise of the purchase rights under this Warrant.  The Company will
take all such reasonable action as may be necessary to assure that such Warrant
Shares may be issued as provided herein without violation of any applicable law
or regulation, or of any requirements of the Trading Market upon which the
Common Stock may be listed.  The Company covenants that all Warrant
Shares which may be issued upon the exercise of the purchase rights represented
by this Warrant will, upon exercise of the purchase rights represented by this
Warrant and payment for such Warrant Shares in accordance herewith, be duly
authorized, validly issued, fully paid and nonassessable and free from all
taxes, liens and charges created by the Company in respect of the issue thereof
(other than taxes in respect of any transfer occurring contemporaneously with
such issue).

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

       

    

    Except
and to the extent as waived or consented to by the Holder, the Company shall not
by any action, including, without limitation, amending its certificate of
incorporation or through any reorganization, transfer of assets, consolidation,
merger, dissolution, issue or sale of securities or any other voluntary action,
avoid or seek to avoid the observance or performance of any of the terms of this
Warrant, but will at all times in good faith assist in the carrying out of all
such terms and in the taking of all such actions as may be necessary or
appropriate to protect the rights of Holder as set forth in this Warrant against
impairment.  Without limiting the generality of the foregoing, the
Company will (i) not increase the par value of any Warrant Shares above the
amount payable therefor upon such exercise immediately prior to such increase in
par value, (ii) take all such action as may be necessary or appropriate in order
that the Company may validly and legally issue fully paid and nonassessable
Warrant Shares upon the exercise of this Warrant and (iii) use commercially
reasonable efforts to obtain all such authorizations, exemptions or consents
from any public regulatory body having jurisdiction thereof, as may be,
necessary to enable the Company to perform its obligations under this
Warrant.

     

    Before
taking any action which would result in an adjustment in the number of Warrant
Shares for which this Warrant is exercisable or in the Exercise Price, the
Company shall obtain all such authorizations or exemptions thereof, or consents
thereto, as may be necessary from any public regulatory body or bodies having
jurisdiction thereof.

     

    e)           Jurisdiction. All
questions concerning the construction, validity, enforcement and interpretation
of this Warrant shall be determined in accordance with the provisions of the
Purchase Agreement.

     

    f)           Restrictions.  The
Holder acknowledges that the Warrant Shares acquired upon the exercise of this
Warrant may have restrictions upon resale imposed by state and federal
securities laws.

     

    g)           Nonwaiver and
Expenses.  No course of dealing or any delay or failure to
exercise any right hereunder on the part of Holder shall operate as a waiver of
such right or otherwise prejudice Holder’s rights, powers or
remedies.  Without limiting any other provision of this Warrant or the
Purchase Agreement, if the Company willfully and knowingly fails to comply with
any provision of this Warrant, which results in any material damages to the
Holder, the Company shall pay to Holder such amounts as shall be sufficient to
cover any costs and expenses including, but not limited to, reasonable
attorneys’ fees, including those of appellate proceedings, incurred by Holder in
collecting any amounts due pursuant hereto or in otherwise enforcing any of its
rights, powers or remedies hereunder.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

       

    

    h)           Notices.  Any
notice, request or other document required or permitted to be given or delivered
to the Holder by the Company shall be delivered in accordance with the notice
provisions of the Purchase Agreement.

     

    i)           Limitation of
Liability.  No provision hereof, in the absence of any
affirmative action by Holder to exercise this Warrant to purchase Warrant
Shares, and no enumeration herein of the rights or privileges of Holder, shall
give rise to any liability of Holder for the purchase price of any Common Stock
or as a stockholder of the Company, whether such liability is asserted by the
Company or by creditors of the Company.

     

    j)           Remedies.  The
Holder, in addition to being entitled to exercise all rights granted by law,
including recovery of damages, will be entitled to specific performance of its
rights under this Warrant.  The Company agrees that monetary damages
would not be adequate compensation for any loss incurred by reason of a breach
by it of the provisions of this Warrant and hereby agrees to waive and not to
assert the defense in any action for specific performance that a remedy at law
would be adequate.

     

    k)           Successors and
Assigns.  Subject to applicable securities laws, this Warrant
and the rights and obligations evidenced hereby shall inure to the benefit of
and be binding upon the successors and permitted assigns of the Company and the
successors and permitted assigns of Holder.  The provisions of this
Warrant are intended to be for the benefit of any Holder from time to time of
this Warrant and shall be enforceable by the Holder or holder of Warrant
Shares.

     

    l)           Amendment.  This
Warrant may be modified or amended or the provisions hereof waived with the
written consent of the Company and the Holder.

     

    m)           Severability.  Wherever
possible, each provision of this Warrant shall be interpreted in such manner as
to be effective and valid under applicable law, but if any provision of this
Warrant shall be prohibited by or invalid under applicable law, such provision
shall be ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provisions or the remaining provisions of
this Warrant.

     

    n)           Headings.  The
headings used in this Warrant are for the convenience of reference only and
shall not, for any purpose, be deemed a part of this Warrant.

    

    ********************

     

    (Signature
Pages Follow)

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    

    

    IN
WITNESS WHEREOF, the Company has caused this Warrant to be executed by its
officer thereunto duly authorized as of the date first above
indicated.

     

    
      
        	 	CLEVELAND
      BIOLABS, INC.	 
	 	 	 	 
	
                 

              	
                By:
      

              	 	 
	 	 	Name:
      Michael Fonstein	 
	 	 	Title:  President
      and Chief Executive Officer	 
	 	 	 	 

      

       

      
        
           

        

        
          12

          
            

          

        

        
           

        

         

      

    

    NOTICE
OF EXERCISE

    

    TO:           CLEVELAND BIOLABS,
INC.

    

    (1) The
undersigned hereby elects to purchase ________ Warrant Shares of the Company
pursuant to the terms of the attached Warrant (only if exercised in full), and
tenders herewith payment of the exercise price in full, together with all
applicable transfer taxes, if any.

     

    (2)
Payment shall take the form of (check applicable box):

     

    o in lawful money of the
United States; or

     

    o the cancellation of
such number of Warrant Shares as is necessary, in accordance with the formula
set forth in subsection 2(c), to exercise this Warrant with respect to the
maximum number of Warrant Shares purchasable pursuant to the cashless exercise
procedure set forth in subsection 2(c).

     

    (3)
Please issue a certificate or certificates representing said Warrant Shares in
the name of the undersigned or in such other name as is specified
below:

     

    _______________________________

    

    

    The
Warrant Shares shall be delivered to the following DWAC Account Number or by
physical delivery of a certificate to:

    

    _______________________________

    

    _______________________________

    

    _______________________________

    

    (4) Accredited
Investor.  The undersigned is an “accredited investor” as
defined in Regulation D promulgated under the Securities Act of 1933, as
amended.

    

    [SIGNATURE
OF HOLDER]

    

    Name of
Investing Entity:
________________________________________________________________________

    Signature of Authorized Signatory of
Investing Entity:
_________________________________________________

    Name of
Authorized Signatory:
___________________________________________________________________

    Title of
Authorized Signatory:
____________________________________________________________________

    Date:
________________________________________________________________________________________

    

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    ASSIGNMENT
FORM

    

    (To
assign the foregoing warrant, execute

    this form
and supply required information.

    Do not
use this form to exercise the warrant.)

    

    FOR VALUE
RECEIVED, [____] all of or [_______] shares of the foregoing Warrant and all
rights evidenced thereby are hereby assigned to

     

    

    _______________________________________________
whose address is

    

    _______________________________________________________________.

    

    

    

    _______________________________________________________________

    

    Dated:  ______________,
_______

    

    

    Holder’s
Signature:                                         _____________________________

    

    Holder’s
Address:                                           _____________________________

    

    _____________________________

    

    

    Signature
Guaranteed:  ___________________________________________

    

    NOTE:  The
signature to this Assignment Form must correspond with the name as it appears on
the face of the Warrant, without alteration or enlargement or any change
whatsoever, and must be guaranteed by a bank or trust
company.  Officers of corporations and those acting in a fiduciary or
other representative capacity should file proper evidence of authority to assign
the foregoing Warrant.ICONIX
BRAND GROUP, INC.

     

    RESTRICTED
STOCK AGREEMENT

    

    To:    David
Blumberg

     

    Date of
Award:  September 22, 2009

    

    In
accordance with, and subject to, the terms of the employment agreement dated as
of February 26, 2009 to be effective January 1, 2009 between Iconix Brand Group,
Inc., a Delaware corporation (the “Company”), and you (the “Employment
Agreement”), you are hereby awarded, effective as of the date hereof (the “Award
Date”), 107,476 shares (the “Shares”) of common stock, $.001 par value (“Common
Stock”), of the Company, pursuant to the Company’s 2009 Equity Incentive Plan
(the “Plan”), subject to certain restrictions specified below in Restrictions and
Forfeiture.  (While subject to the Restrictions, this Agreement
refers to the Shares as “Restricted Shares”.)  Capitalized
terms used herein which are defined in the Employment Agreement shall have the
meanings defined therein.

     

    During
the period commencing on the Award Date and terminating on December 31, 2011
(the “Restricted Period”), except as otherwise provided herein, the Shares may
not be sold, assigned, transferred, pledged, or otherwise encumbered and are
subject to forfeiture (the “Restrictions”).

     

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

     

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

     

    
      
        	
                Restrictions
      and Forfeiture

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

                 

                If
      your employment is terminated by the Company for Cause or by you without
      Good Reason, your unvested Restricted Shares will be
      forfeited.

              
	 	 	 
	
                Vesting
      Schedule

              	 
      	
                Assuming
      you provide Continuous Service (as defined herein) as an Employee (as
      defined in the Plan) of the Company or an Affiliate (as defined in the
      Plan) of the Company, all Restrictions will lapse on the Restricted Shares
      on the Vesting Date or Vesting Dates set forth below for the applicable
      grant of Restricted Shares and they will become
  Vested.

              

      

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    For each
Acquisition that closes during a Term Year, the restrictions on 17,958
Restricted Shares shall lapse (i.e., such Restricted Shares shall be deemed to
have “vested”) at the end of such Term Year, provided that the aggregate Fair
Market Value of the Restricted Shares that vest in a Term Year may not exceed
the dollar amount (the “FMV $
Limit”) obtained by subtracting (x) the Acquisition Payments made during
such Term Year from (y) the Acquisition Cap (i.e., the aggregate number of
Shares that vest in any Term Year may not exceed the number obtained by dividing
the FMV $ Limit by the Fair Market Value).  Notwithstanding any
provision to the contrary contained in this Agreement, the Plan or the
Employment Agreement, and subject to acceleration as provided in the Employment
Agreement, any Restricted Shares that would have vested in the absence of the
FMV $ Limit (the “Deferred
Shares”) shall instead vest on December 31, 2011. If the Company has not
completed at least six (6) Acquisitions during the Term, then, on December 31,
2011, all remaining unvested Restricted Shares that are not Deferred Shares
shall be forfeited.    If applicable the capitalized terms
used above shall have the meanings as set forth in the Employment
Agreement.

    

    
      	
              Acceleration
      of Vesting  Upon Death, Disability, Termination without Cause or
      for Good Reason, or Change in Control

               

            	 
      	
              In
      the event of your death or Disability or termination of your employment by
      the Company without Cause or by you for Good Reason, or a Change in
      Control, all of the Restricted Shares shall thereupon become fully
      vested. 

            
	
               

              Continuous
      Service

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

               

            
	
              Share
      Certificates

            	 
      	
              The
      Company will, at its option either (i) delay the issuance of certificates
      representing the Shares (or portion thereof) until the Shares become
      Vested or (ii) will cause the Shares to be issued in book-entry form or
      will issue a certificate (or certificates) in your name with respect to
      the Shares, and will hold any such certificate (or certificates) on
      deposit for your account or cause the book-entry not to be credited as
      free from restrictions on your account until the expiration of the
      Restricted Period with respect to the Shares represented thereby. Any such
      certificate (or certificates) issued prior to the end of the Restricted
      Period will contain substantially  the following
      legend:

               

              “The
      transferability of this certificate and the shares of stock represented
      hereby are subject to the terms and conditions (including forfeiture and
      restrictions on voting) contained in the 20__ Equity Incentive Plan of the
      Company and a Restricted Stock Agreement, copies of which are on file in
      the office of the Secretary of the
Company.

            

    

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    
      
        
          
            	
                    Additional
      Conditions to Issuance of Stock Certificates

                     

                  	 
      	
                    You
      will not receive the certificates representing the Restricted
      Shares:

                     

                    (a)
      During any period of time in which the Company deems that the issuance of
      the Shares may violate a federal, state, local, or foreign law, rule or
      regulation, or any applicable securities exchange or listing rule or
      agreement, or may cause the Company to be legally obligated to issue or
      sell more shares than the Company is legally entitled to issue or sell;
      or

                     

                    (b)
      Until you have paid or made suitable arrangements to pay  (i)
      all federal, state, local and foreign tax withholding required by the
      Company in connection with the issuance or the vesting of the Shares and
      (ii) the employee’s portion of other federal, state, local and foreign
      payroll and other taxes due in connection with the issuance or the vesting
      of the Shares.

                  
	 	 	 
	
                    Cash
      Dividends

                  	 
      	
                    Cash
      dividends, if any, paid on the Restricted Shares shall be held by the
      Company for your account and paid to you upon the expiration of the
      Restricted Period, except as otherwise determined by the Administrator.
      All such withheld dividends shall not earn interest, except as otherwise
      determined by the Administrator.  You will not
      receive withheld cash dividends on any Restricted Shares which are
      forfeited and all such cash dividends shall be forfeited along with the
      Restricted Shares which are forfeited.

                     

                  
	
                    Voting
      Rights

                  	 
      	
                    Prior
      to vesting, you will have no voting rights with respect to any Restricted
      Shares that have not Vested.

                  
	 	 	 
	
                    Tax
      Withholding

                  	 
      	
                    Unless
      you make an election under Section 83(b) of the Internal Revenue Code of
      1986, as amended (the “Code”), and pay taxes in accordance with that
      election, you will be taxed on the Shares as they become Vested and must
      arrange to pay the taxes on this income. If the Administrator so
      determines, arrangements for paying the taxes may include your
      surrendering Shares that otherwise would be released to you upon becoming
      Vested or your surrendering Shares you already own. The fair market value
      of the Shares you surrender, determined as of the date when taxes
      otherwise would have been withheld in cash, will be applied as a credit
      against the withholding taxes.

                     

                    The Company shall have the
      right to withhold from your compensation an amount sufficient to fulfill
      its or its Affiliate’s obligations for any applicable withholding and
      employment taxes. Alternatively, the Company may require you to pay to the
      Company the amount of any taxes which the Company is required to withhold
      with respect to the Shares, or, in lieu thereof, to retain or sell without
      notice a sufficient number of Shares to cover the amount required to be
      withheld. The Company may withhold from any cash dividends paid on the
      Restricted Shares an amount sufficient to cover taxes owed as a result of
      the dividend payment. The Company’s method of satisfying its withholding
      obligations shall be solely in the discretion of the Administrator,
      subject to applicable federal, state, local and foreign laws. The Company
      shall have a lien and security interest in the Shares and any accumulated
      dividends to secure your obligations
    hereunder. 

                  
	 	 	 
	
                    Tax
      Representations

                  	 
      	
                    You
      hereby represent and warrant to the Company as follows:

                     

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

                  

          

        

      

    

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

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

                   

                  YOU
      HEREBY ACKNOWLEDGE THAT IT IS YOUR SOLE RESPONSIBILITY AND NOT THE
      COMPANY’S TO FILE TIMELY THE ELECTION AVAILABLE TO YOU UNDER SECTION 83(B)
      OF THE CODE, EVEN IF YOU REQUEST THAT THE COMPANY OR ITS REPRESENTATIVES
      MAKE THIS FILING ON YOUR BEHALF. 

                
	 	 	 
	
                  Securities
      Law Representations

                	 
      	
                  The
      following two paragraphs shall be applicable if, on the date of issuance
      of the Restricted Shares, no registration statement and current prospectus
      under the Securities Act of 1933, as amended (the “1933 Act”), covers the
      Shares, and shall continue to be applicable for so long as such
      registration has not occurred and such current prospectus is not
      available:

                   

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

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

                

        

      

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

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

                     

                  
	
                    Stock
      Dividend, Stock Split and Similar Capital Changes

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

                  
	 	 	 
	
                    Non-Transferability

                  	 
      	
                    Prior
      to vesting, Restricted Shares are not transferable.

                  
	 	 	 
	
                    No
      Effect on Employment

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

                  
	 	 	 
	
                    No
      Effect on Corporate Authority

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

                  

          

        

      

    

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    
      
        
          
            
              	
                      Arbitration

                    	 
      	
                      Any
      dispute or disagreement between you and the Company with respect to any
      portion of this Agreement or its validity, construction, meaning,
      performance or your rights hereunder shall, unless the Company in its sole
      discretion determines otherwise, be settled by arbitration, at a location
      designated by the Company, in accordance with the Commercial Arbitration
      Rules of the American Arbitration Association or its successor, as amended
      from time to time. However, prior to submission to arbitration you will
      attempt to resolve any disputes or disagreements with the Company over
      this Agreement amicably and informally, in good faith, for a period not to
      exceed two weeks. Thereafter, the dispute or disagreement will be
      submitted to arbitration. At any time prior to a decision from the
      arbitrator(s) being rendered, you and the Company may resolve the dispute
      by settlement. You and the Company shall equally share the costs charged
      by the American Arbitration Association or its successor, but you and the
      Company shall otherwise be solely responsible for your own respective
      counsel fees and expenses. The decision of the arbitrator(s) shall be made
      in writing, setting forth the award, the reasons for the decision and
      award and shall be binding and conclusive on you and the Company. Further,
      neither you nor the Company shall appeal any such award. Judgment of a
      court of competent jurisdiction may be entered upon the award and may be
      enforced as such in accordance with the provisions of the
      award.

                    
	 	 	 
	
                      Governing
      Law

                    	 
      	
                      The
      laws of the State of Delaware will govern all matters relating to this
      Agreement, without regard to the principles of conflict of
      laws.

                    
	 	 	 
	
                      Notices

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

                    
	 	 	 
	
                      Agreement
      Subject to Plan; Entire Agreement

                    	 
      	
                      This
      Agreement shall be subject to the terms of the Plan in effect on the date
      hereof, which terms are hereby incorporated herein by reference and made a
      part hereof. This Agreement constitutes the entire understanding between
      the Company and you with respect to the subject matter hereof and no
      amendment, supplement or waiver of this Agreement, in whole or in part,
      shall be binding upon the Company unless in writing and signed by the
      President of the Company

                    
	 	 	 
	
                      Conflicting
      Terms

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

                    

            

          

        

      

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

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

     

    
      
        	 
      	
                ICONIX
      BRAND GROUP, INC.

              
	 
      	 
      	 
      
	 
      	
                By:

              	 
      

      

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

    ACKNOWLEDGMENT

    

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

    

    
      
        
          
            
              
                
                  	Date:	
                               
      

                        	 	 
      
	 	 
      	 	 
      
	  
      	   
      	  
      	
                               
      

                        

                

              

            

          

        

      

    

    
      
         

      

      
        8

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