Document:

EXECUTION
        COPY

       

      STOCK
        ISSUANCE AND REGISTRATION RIGHTS AGREEMENT

    

     

    This
      STOCK ISSUANCE AND REGISTRATION RIGHTS AGREEMENT (this “Agreement”)
      is
      made as of August 28, 2006, by and among Iconix Brand Group, Inc., a Delaware
      corporation (together with its successors and assigns, the “Company”),
      and
      DDJ Capital Management, LLC, a Delaware limited liability company, as Agent
      (together with its successors and assigns, “DDJ”).
      Capitalized terms used but not concurrently or previously defined herein are
      defined in Section 8 hereof. 

     

    RECITALS:

     

    WHEREAS,
      the Company and London Fog Group, Inc., a Delaware corporation (“Seller”),
      have
      entered into an Asset Purchase Agreement, dated as of August 28, 2006 (the
      “Purchase
      Agreement”),
      pursuant to which the Company will purchase (the “Asset
      Purchase”)
      on the
      Closing Date certain assets of Seller’s Business in consideration for the
      assumption by the Company of certain liabilities of the Business, a cash payment
      to Seller of $30,500,000 and the issuance to Seller of that number of shares
      of
      common stock, par value $.001 per share, of the Company (the “Common
      Stock”)
      with
      an aggregate Market Value of $7,000,000 as measured based on the Market Value
      of
      a share of Common Stock one (1) Business Day prior to the Closing Date (the
      “Closing
      Date Common Shares”);

     

    WHEREAS,
      pursuant to that certain “Order Approving (a) Sale of London Fog Assets Free and
      Clear of All Liens, Claims, Interests and Other Encumbrances, and (b) Assumption
      and Assignment of Certain Executory Contracts”, as entered by the United States
      Bankruptcy Court for the District of Nevada, Reno Division, on August 24, 2006
      in the case of Seller and certain of its affiliates under Chapter 11 of Title
      11, United States Code, 11 U.S.C. Section 101 et seq. (the “Bankruptcy
      Order”),
      DDJ,
      as Seller’s junior secured lender, subject to the terms contained in the
      Purchase Agreement and in consideration for the consent of DDJ to the Asset
      Purchase, will receive on the Closing Date certain proceeds of the Asset Sale
      and the Closing Date Common Shares, registered in the name of DDJ on the books
      and records of the Company, along with certain rights with respect thereto
      as
      set forth in the Purchase Agreement and this Agreement; 

     

    WHEREAS,
      pursuant to the Purchase Agreement, the Company has acknowledged the assignment
      of the Closing Date Common Shares from Seller to DDJ and has agreed to recognize
      DDJ’s rights in such stock as set forth in this Agreement and the Purchase
      Agreement 

     

    WHEREAS,
      the number of Closing Date Common Shares is subject to adjustment as set forth
      in the provisions of this Agreement; and 

     

    WHEREAS,
      in order to induce DDJ to consent to the Asset Purchase and the other
      transactions set forth in the Purchase Agreement, the Company has agreed to
      grant the Purchasers certain registration and other rights as to the Common
      Shares as set forth in this Agreement.

    
      
        
        

      

      
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    NOW,
      THEREFORE, in consideration of the mutual covenants herein contained, the
      parties hereto agree as follows:

     

    1.  Acknowledgement
      of Assignment; Issuance of Common Shares.
      

     

    (a)  The
      Company hereby acknowledges and accepts the assignment from Seller to DDJ
      pursuant to the Bankruptcy Order of all of Seller’s right, title and interest in
      and to the Closing Date Common Shares as set forth in the Purchase Agreement.
      

     

    (b)  On
      the
      Closing Date, the Company shall deliver to DDJ and/or its Permitted Designee(s)
      (as defined hereinafter) a stock certificate or certificates representing the
      Closing Date Common Shares, registered in DDJ’s and/or its Permitted
      Designee(s)’ name(s) or accompanied by duly executed stock assignments
provided,
      that in
      lieu of such stock certificate(s) the Company may deliver an irrevocable
      direction letter from the Company to a transfer agent directing the issuance
      of
      such stock certificate(s) to DDJ and/or its Permitted Designee(s) and such
      stock
      certificate(s) shall be so delivered within one (1) Business Day following
      the
      Closing Date. The Closing Date Common Shares shall have an aggregate Market
      Value of $7,000,000 as measured based on the Market Value of a share of Common
      Stock one (1) Business Day prior to the Closing Date.

     

    (c)  If
      as of
      the Short-Form Effectiveness Date (as defined below), the Closing Date Common
      Shares have an aggregate Market Value of less than $7,000,000, the Company
      shall
      issue within three (3) Business Days following the Short-Form Effectiveness
      Date
      to DDJ and/or its Permitted Designee(s) additional shares of Common Stock which
      are included in the Short-Form Registration (the “Additional
      Common Shares”
and,
      together with the Closing Date Common Shares, the “Common
      Shares”)
      such
      that the aggregate Market Value of Common Shares held by DDJ and/or its
      Permitted Designee(s) as of such Short-Form Effectiveness Date would have
      equaled $7,000,000; provided,
      that
      under no circumstances shall DDJ or any Permitted Designee be required at any
      time to forfeit, cancel or otherwise give back to the Company any Closing Date
      Common Shares, including, without limitation, if as of the Short-Form
      Effectiveness Date, the aggregate Market Value of such Closing Date Common
      Shares is equal to or more than $7,000,000; provided,
      further,
      that
      under no circumstances shall DDJ or any Permitted Designee have the right to
      receive any Additional Common Shares in the event DDJ chooses the option under
      clause (x) of the first sentence of Section 3(b)(ii). If any Additional Common
      Shares are issuable pursuant to this Section (c), such shares shall be issued
      to
      DDJ and each of its Permitted Designees based on its Holder Percentage
      (hereinafter defined). The term “Holder
      Percentage”
means
      a
      fraction, (x) the numerator of which is the number of Closing Date Common Shares
      issued to DDJ, or a Permitted Designee, as the case may be, on the Closing
      Date
      and (y) the denominator of which is equal to all of the Closing Date Common
      Shares issued to DDJ and its Permitted Designees on the Closing Date. The
      Company shall deliver to DDJ and/or its Permitted Designee(s) a stock
      certificate or certificates representing any Additional Common Shares issued
      pursuant hereto, registered in DDJ’s and /or its Permitted Designee(s)’ name(s)
      or accompanied by duly executed stock assignments. 

     

    2.  Representations
      and Warranties Concerning Common Shares.
      Knowing
      that DDJ relies thereon, the Company represents and warrants to DDJ that the
      statements contained in this Section 2 are correct and complete as of the date
      of this Agreement and will be correct and complete as of the Closing Date (as
      though made then and as though the Closing Date were substituted for the date
      of
      this Agreement throughout this Section 2. 

    
      
        
        

      

      
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    (a)  Organization.
      The
      Company is a corporation duly organized, validly existing and in good standing
      under the laws of the State of Delaware. The Company has full corporate power
      and authority to enter into this Agreement, issue the Common Shares and to
      consummate the transactions contemplated hereby upon the terms and conditions
      herein provided.

     

    (b)  Authorization.
      The
      execution and delivery of this Agreement by the Company, the issuance of the
      Common Shares and the consummation of the transactions contemplated hereby
      have
      been duly and validly authorized by all necessary corporate action on the part
      of the Company, and this Agreement constitutes a valid and legally binding
      agreement of the Company enforceable in accordance with its terms. Each
      certificate, instrument and document contemplated by this Agreement, when
      executed and delivered by the Company in accordance with the provisions hereof,
      shall be valid and legally binding upon the Company in accordance with its
      terms, subject only to applicable bankruptcy, reorganization, insolvency,
      moratorium, and other rights affecting creditors’ rights generally from time to
      time in effect and as to enforceability, general equitable
      principles.

     

    (c)  No
      Breach.
      The
      execution, delivery and performance of this Agreement by the Company, the
      issuance of the Common Shares and the consummation by the Company of the
      transactions herein contemplated, do not constitute a violation of or default
      under (either immediately or upon notice, lapse of time or both) or result
      in a
      breach of (a) the Company’s certificate of incorporation, bylaws or other
      organic governing documents, (b) the terms of any contract to which the Company
      or any of its Subsidiaries or any of their respective assets are bound, (c)
      any
      judgment binding upon the Company or any of its Subsidiaries, (d) any permit
      or
      license of the Company or any of its Subsidiaries; or (e) any federal, state
      municipal, foreign or other statute, law, ordinance, rule or regulation
      applicable to the Company or any of its Subsidiaries or any of their respective
      assets, except, in the cases of clause (b), (c), (d) or (e), any such violation,
      default or breach that would not have a material adverse effect on the business
      and financial condition of the Company.

     

    (d)  No
      Broker.
      No
      broker, finder, agent or similar intermediary has acted for or on behalf of
      the
      Company in connection with this Agreement or the transactions contemplated
      hereby, and no broker, finder, agent or similar intermediary is entitled to
      any
      broker’s fee, finder’s fee, or similar fee or commission in connection therewith
      based on any agreement, arrangement or understanding with the Company or any
      action taken by the Company.

     

    (e)  Issuance
      of Company Shares.
      The
      Company Shares to be issued in connection with this Agreement are duly
      authorized and, when issued in accordance herewith, will be duly and validly
      issued, fully paid and nonassessable, free and clear of any mortgage, pledge,
      lien, encumbrance, charge, or other security interest and shall not be subject
      to preemptive or similar rights.
      Except
      as to the registration rights and other terms set forth herein, the terms of
      the
      Company Shares to be issued in connection with this Agreement shall be identical
      to the Common Stock of the Company registered currently on the NASDAQ System.
      

    
      
        
        

      

      
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    (f)  Regulatory
      Compliance.

     

    (i)  During
      the twelve (12) month period immediately preceding the date hereof, the Company
      has duly and timely filed all reports, schedules, forms, statements and other
      documents (collectively, as supplemented and amended since the time of filing,
      the “Company
      SEC Reports”)
      required to be filed by it with the SEC pursuant to the reporting requirements
      of the Securities Exchange Act, including material filed pursuant to Section
      13(a) or 15(d) of the Securities Exchange Act. At the time of their filing,
      the
      Company SEC Reports complied in all material respects with the requirements
      of
      the Securities Exchange Act and the rules and regulations of the SEC promulgated
      thereunder and other federal, state and local laws, rules and regulations
      applicable to such documents and did not contain any untrue statement of a
      material fact or omit to state any material fact required to be stated therein
      or necessary in order to make the statements therein, in light of the
      circumstances under which they were made, not misleading. 

     

    (ii)  The
      audited consolidated financial statements and unaudited consolidated interim
      financial statements of the Company and its consolidated Subsidiaries included
      or incorporated by reference in the Buyer SEC Reports have been prepared in
      accordance with GAAP consistently applied during the periods indicated (except
      as may otherwise be indicated in the notes) and present fairly, in all material
      respects, the financial position of the Company and its consolidated
      Subsidiaries on a consolidated basis as at the respective dates and for the
      respective periods indicated (except interim financial statements may not
      contain all notes and are subject to year-end adjustments).

     

    (g)  All
      certificates, instruments and documents delivered by or on behalf of the
      Company in connection with this Agreement and the transactions contemplated
      hereby are true and complete; all such certificates, instruments and documents
      are authentic.

     

    3.  Registration
      of Common Shares; Related Covenants.

     

    (a)  Registration.
      Subject
      to the terms and conditions of this Agreement, promptly following the Closing
      Date, but in any event no later than twenty (20) days following the Closing
      Date, the Company shall commence registration with the SEC under the Securities
      Act of the Registrable Securities held by DDJ and/or its Permitted Designee(s)
      on Form S-2 or S-3 or any similar short-form registration (a “Short-Form
      Registration”)
      pursuant to the procedures outline in Section 4 below. Such Short-Registration
      shall include the registration of all Registrable Securities that are Closing
      Date Common Shares and shall include a sufficient number of additional
      Registrable Securities such that any Additional Common Shares to be issued
      to
      DDJ and/or its Permitted Designee(s) pursuant to Section 1(c) above, shall be
      covered by the effectiveness of such Short-Form Registration. The Company shall
      pay all Registration Expenses of such Short-Form Registration. If the Short-Form
      Registration is an underwritten offering, the selection of investment banker(s)
      and manager(s) for the offering, which investment banker(s) and manager(s)
      shall
      be nationally recognized, shall be made by the Company. The term “Short-Form
      Effectiveness Date”
means
      the date on which the Short-Form Registration covering all of the Registrable
      Securities is declared effective by the SEC. Anything contained herein to the
      contrary notwithstanding, in no event shall the Short-Form Registration be
      an
      underwritten offering unless agreed to be the Company in its sole and absolute
      discretion.

    
      
        
        

      

      
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    (b)  Consequences
      of Failure to Register.
      

     

    (i)  If
      as of
      the date that is sixty (60) days after the Closing Date (which date shall be
      extended for each day, if any, that the effectiveness of a Short-Form
      Registration statement is delayed solely as a result of the failure of DDJ
      or
      any of its Permitted Designee(s) to deliver the information required by Section
      6(b) hereof after written notice by the Company to DDJ or such Permitted
      Designee of such failure), a Short-Form Registration covering all of the
      Registrable Securities has not been declared or does not then remain effective
      with the SEC, the Company shall pay to each of DDJ and its Permitted Designee(s)
      liquidated damages (“Liquidated
      Damages”)
      in an
      amount equal to (x) $11,000 per day multiplied by (y) the Holder Percentage
      for
      each day thereafter until the Short-Form Effectiveness Date; provided,
      that in
      no event shall the aggregate amount of Liquidated Damages payable hereunder
      exceed $660,000. Such Liquidated Damages shall be payable by the Company to
      DDJ
      and/or its Permitted Designee(s) on every thirty (30) days, beginning on the
      date that is ninety (90) days after the Closing Date, and on the Short-Form
      Effectiveness Date should such date occur prior to the end of any such thirty
      (30)-day period, in cash or other immediately available funds to the location(s)
      and to the attention of or to the account(s) specified by DDJ in writing for
      itself and its Permitted Designees. Upon the subsequent occurrence of the
      Short-Form Effectiveness Date, DDJ and/or its Permitted Designee(s) shall be
      entitled to the Additional Common Shares, if any, to be issued to DDJ and/or
      its
      Permitted Designee(s) pursuant to and in accordance with Section 1(c)
      above.

     

    (ii)  If
      as of
      the date that is one hundred twenty (120) days after the Closing Date (which
      date shall be extended for each day, if any, that the effectiveness of a
      Short-Form Registration statement is delayed solely as a result of the failure
      of DDJ or any of its Permitted Designee(s) to deliver the information required
      by Section 6(b) hereof after written notice by the Company to DDJ or such
      Permitted Designee of such failure) (the “Trigger
      Date”),
      a
      Short-Form Registration covering all of the Registrable Securities has not
      been
      declared or does not then remain effective with the SEC, DDJ may, at its sole
      option expressed in writing to the Company no later than twenty (20) days after
      the Trigger Date, either (x) sell all of the Closing Date Common Shares to
      the
      Company for a purchase price equal to $7,000,000, payable, together with any
      accrued and unpaid Liquidated Damages, within two (2) Business Days after
      receipt of such notice from DDJ on its own behalf and on behalf of its Permitted
      Designees in cash or other immediately available funds to the location(s) and
      to
      the attention of or to the account(s) specified by DDJ in writing for itself
      and
      its Permitted Designees or (y) retain the Closing Date Common Shares and obtain
      from the Company upon the occurrence of the Short-Form Effectiveness Date
      following the Trigger Date any Additional Common Shares it is entitled to
      pursuant to and in accordance with Section 1(c) above and receive payment of
      any
      accrued and unpaid Liquidated Damages within two (2) Business Days after receipt
      of such notice from DDJ on its own behalf and on behalf of its Permitted
      Designees in cash or other immediately available funds to the location(s) and
      to
      the attention of or to the account(s) specified by DDJ in writing for itself
      and
      its Permitted Designees; provided,
      that
      upon a failure of DDJ to provide notice of its choice prior to the earlier
      of
      the Short-Form Effectiveness Date and the twentieth (20th)
      day
      after the Trigger Date, DDJ shall be deemed to have chosen option (y) above.
      In
      addition, if as of the Trigger Date, a Short-Form Registration covering all
      of
      the Registrable Securities has not been declared and does not then remain
      effective with the SEC and DDJ has chosen to retain its and its Permitted
      Designees Closing Date Common Shares pursuant to option (y) above, (A) the
      Company shall have a continuing obligation to register all Registrable
      Securities held by DDJ and/or its Permitted Designee(s) and shall continue
      to be
      bound by the terms of this Agreement and the Company shall complete the
      registration of such Registrable Securities pursuant to a Short-Form
      Registration or otherwise as promptly as practicable following such date and
      (B)
      the Company shall pay to each of DDJ and its Permitted Designee(s) additional
      Liquidated Damages in an amount equal to (A) $5,500 per day multiplied by (B)
      the Holder Percentage for each day after the Trigger Date until the earlier
      to
      occur of (1) sixty (60) days after the Trigger Date and (2) a Short-Form
      Effectiveness Date during such period. Such Liquidated Damages shall be payable
      by the Company to DDJ and/or its Permitted Designee(s) every thirty (30) days,
      beginning on the date that is thirty (30) days after the Trigger Date, and
      on
      the Short-Form Effectiveness Date should such date occur prior to the end of
      any
      such thirty (30)-day period, in cash or other immediately available funds to
      the
      location(s) and to the attention of or to the account(s) specified by DDJ in
      writing for itself and its Permitted Designees. Upon the subsequent occurrence
      of the Short-Form Effectiveness Date, DDJ and/or its Permitted Designee(s)
      shall
      be entitled to the Additional Common Shares, if any, to be issued to DDJ and/or
      its Permitted Designee(s) pursuant to and in accordance with Section 1(c)
      above.

     

    
      
        
        

      

      
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    (iii)  If
      as of
      the date that is sixty (60) days after the Trigger Date (which date shall be
      extended for each day, if any, that the effectiveness of a Short-Form
      Registration statement is delayed solely as a result of the failure of DDJ
      or
      any of its Permitted Designee(s) to deliver the information required by Section
      6(b) hereof after written notice by the Company to DDJ or such Permitted
      Designee of such failure) (the “Additional
      Trigger Date”),
      a
      Short-Form Registration covering all of the Registrable Securities has not
      been
      declared or does not then remain effective with the SEC, and DDJ has chosen
      to
      retain its Closing Date Common Shares, (A) the Company shall have a continuing
      obligation to register all Registrable Securities held by DDJ and/or its
      Permitted Designee(s) and shall continue to be bound by the terms of this
      Agreement and the Company shall complete the registration of such Registrable
      Securities pursuant to a Short-Form Registration or otherwise as promptly as
      practicable following such date and (B) the Company shall pay to each of DDJ
      and
      its Permitted Designee(s) additional Liquidated Damages in an amount equal
      to
      (x) $50,000 per month multiplied by (y) the Holder Percentage for each full
      month after the Additional Trigger Date until the occurrence of the Short-Form
      Effectiveness Date. Such Liquidated Damages shall be payable by the Company
      to
      DDJ and/or its Permitted Designee(s) on a monthly basis, beginning on the first
      monthly anniversary of the Additional Trigger Date, and on the Short-Form
      Effectiveness Date should such date occur prior to the end of any such monthly
      period, in cash or other immediately available funds to the location(s) and
      to
      the attention of or to the account(s) specified by DDJ in writing for itself
      and
      its Permitted Designees. Upon the subsequent occurrence of the Short-Form
      Effectiveness Date, DDJ and/or its Permitted Designee(s) shall be entitled
      to
      the Additional Common Shares, if any, to be issued to DDJ and/or its Permitted
      Designee(s) pursuant to and in accordance with Section 1(c) above.

     

    (iv)  The
      parties hereto expressly acknowledge and agree that, in light of the difficulty
      of accurately determining actual damages hereunder, the right to payment of
      Liquidated Damages hereunder constitutes a reasonable estimate of all damages
      that will be suffered by DDJ and/or its Permitted Designee(s) and that under
      no
      circumstances shall DDJ or any Permitted Designee be required to give back
      or
      otherwise surrender any Liquidated Damages paid or payable to DDJ or any
      designee pursuant hereto.

    
      
        
        

      

      
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    4.  Registration
      Procedures.
      In
      fulfilling its registration obligations hereunder, the Company shall use its
      commercially reasonable best efforts to effect the registration, and pursuant
      thereto the Company shall as expeditiously as possible:

     

    (a)  prepare
      and file with the SEC a registration statement with respect to such Registrable
      Securities and use commercially reasonable efforts to cause such registration
      statement to become effective (provided,
      that as
      soon as practicable and before filing a registration statement or prospectus
      or
      any amendments or supplements thereto, the Company will furnish to the counsel
      selected by DDJ copies of all such documents proposed to be filed, which
      documents will be subject to the review of such counsel and if DDJ shall notify
      the Company in writing that, in the judgment of DDJ and its counsel, the
      inclusion of additional information regarding any holder, any holder’s ownership
      of securities and any holder’s intended plan of distribution (provided such plan
      is reasonably acceptable in all material respects to the Company)) is required,
      such information shall be so included;

     

    (b)  notify
      DDJ and/or its Permitted Designee(s) of the effectiveness with the SEC of the
      Short-Form Registration covering all of the Registrable Securities (such
      effectiveness date, the “Short-Form
      Effectiveness Date”)
      and
      use commercially reasonable efforts to prepare and file with the SEC such
      amendments and supplements to such registration statement and the prospectus
      used in connection therewith as may be necessary to keep such registration
      statement effective for a period of not less than one hundred eighty (180)
      days
      (excluding any period when effectiveness lapses) and comply with the provisions
      of the Securities Act with respect to the disposition of all securities covered
      by such registration statement during such period in accordance with the
      intended methods of disposition by the sellers thereof set forth in such
      registration statement;

     

    (c)  furnish
      to DDJ and/or its Permitted Designee(s) such number of copies of such
      registration statement, each amendment and supplement thereto, the prospectus
      included in such registration statement (including each preliminary prospectus)
      and such other documents as such seller may reasonably request in order to
      facilitate the disposition of the Registrable Securities owned by DDJ and/or
      its
      Permitted Designee(s);

     

    (d)  use
      commercially reasonable efforts to register or qualify such Registrable
      Securities under such other securities or blue sky laws of such jurisdictions
      as
      any seller reasonably requests and do any and all other acts and things which
      may be reasonably necessary or advisable to enable such seller to consummate
      the
      disposition in such jurisdictions of the Registrable Securities owned by such
      seller (provided,
      that
      the Company shall not be required to (i) qualify generally to do business
      in any jurisdiction where it would not otherwise be required to qualify but
      for
      this subparagraph, (ii) subject itself to taxation in any such jurisdiction
      or (iii) consent to general service of process in any such
      jurisdiction);

     

    (e)  notify
      DDJ and/or its Permitted Designee(s), at any time when a prospectus relating
      thereto is required to be delivered under the Securities Act, of the happening
      of any event as a result of which the prospectus included in such registration
      statement contains an untrue statement of a material fact or omits any fact
      necessary to make the statements therein not misleading, and, at the request
      of
      any such seller, the Company shall promptly prepare a supplement or amendment
      to
      such prospectus and/or registration statement so that, as thereafter delivered
      to the purchasers of such Registrable Securities, such prospectus shall not
      contain an untrue statement of a material fact or omit to state any fact
      necessary to make the statements therein not misleading;

    
      
        
        

      

      
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    (f)  use
      commercially reasonable efforts to cause all such Registrable Securities to
      be
      listed on each securities exchange on which similar securities issued by the
      Company are then listed and, if not so listed, to be listed on the NASD
      automated quotation system and, if listed on the NASD automated quotation
      system, use commercially reasonable efforts to secure designation of all such
      Registrable Securities covered by such registration statement as a NASDAQ
“national market system security” within the meaning of Rule 11Aa2-1 of the
      Securities and Exchange Commission or, failing that, to secure NASDAQ
      authorization for such Registrable Securities and, without limiting the
      generality of the foregoing, to arrange for at least two market makers to
      register as such with respect to such Registrable Securities with the
      NASD;

     

    (g)  provide
      a
      transfer agent and registrar for all such Registrable Securities not later
      than
      the effective date of the first registration statement relating to Registrable
      Securities or securities of any class of the Company and co-operate to make
      certificates promptly available;

     

    (h)  enter
      into such customary agreements (including underwriting agreements in customary
      form) and take all such other actions as DDJ and/or its Permitted Designee(s)
      or
      the underwriters, if any, reasonably request in order to expedite or facilitate
      the disposition of such Registrable Securities (including, without limitation,
      effecting a stock split or a combination of shares);

     

    (i)  subject
      to the execution of a non-disclosure agreement in form reasonably acceptable
      in
      all material respects to the Company, make available for inspection by DDJ
      and/or its Permitted Designee(s), any underwriter participating in any
      disposition pursuant to such registration statement and any attorney, accountant
      or other agent retained by any such seller or underwriter, all financial and
      other records, pertinent corporate documents and properties of the Company,
      and
      cause the Company’s officers, directors, employees and independent accountants
      to supply all information reasonably requested by any such seller, underwriter,
      attorney, accountant or agent in connection with such registration
      statement;

     

    (j)  otherwise
      use commercially reasonable efforts to comply with all applicable rules and
      regulations of the SEC, and make available to its security holders, as soon
      as
      reasonably practicable, an earnings statement covering the period of at least
      twelve months beginning with the first day of the Company’s first full calendar
      quarter after the effective date of the registration statement, which earnings
      statement shall satisfy the provisions of Section 11(a) of the Securities Act
      and Rule 158 thereunder;

     

    (k)  in
      the
      event of the issuance of any stop order suspending the effectiveness of a
      registration statement, or of any order suspending or preventing the use of
      any
      related prospectus or suspending the qualification of any shares of Common
      Stock
      included in such registration statement for sale in any jurisdiction, during
      the
      one hundred eighty (180)-day period commencing on the Short-Form Effectiveness
      Date, the Company shall notify the holders of Registrable Securities thereof
      and
      use its best efforts promptly to obtain the withdrawal of such order; and

    
      
        
        

      

      
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    (l)  in
      connection with an underwritten public offering, (i) subject to the execution
      of
      a non-disclosure agreement in form reasonably acceptable in all material
      respects to the Company, cooperate with DDJ and/or its Permitted Designee(s),
      and with the underwriters participating in the offering and their counsel in
      any
      due diligence investigation reasonably requested by the selling holders or
      the
      underwriters in connection therewith and (ii) participate fully, and use its
      best efforts to cause its management to participate fully, in efforts to sell
      the Registrable Securities under the offering (including, without limitation,
      participating in “roadshow” meetings with prospective investors) that would be
      customary for underwritten primary offerings of a comparable amount of equity
      securities by the Company; and

     

    5.  Registration
      Expenses.

     

    All
      Registration Expenses shall be borne by the Company, and the Company shall
      pay
      its internal expenses (including, without limitation, all salaries and expenses
      of its officers and employees performing legal or accounting duties), the
      expense of any annual audit or quarterly review, the expense of any liability
      insurance and the expenses and fees for listing the securities to be registered
      on each securities exchange on which similar securities issued by the Company
      are then listed or on the NASD automated quotation system. The Company shall
      not
      be required to pay an underwriting discount with respect to any shares being
      sold by any party other than the Company in connection with an underwritten
      public offering of any of the Company’s securities pursuant to this Agreement.

     

    6.  Indemnification.

     

    (a)  The
      Company agrees to indemnify, to the extent permitted by law, each holder of
      Registrable Securities, such holder’s officers and directors, and each Person
      who controls such holder (within the meaning of the Securities Act) against
      all
      losses, claims, damages, liabilities and expenses (“Losses”)
      caused
      by or arising out of any untrue or alleged untrue statement of material fact
      contained in any registration statement, prospectus or preliminary prospectus
      or
      any amendment thereof or supplement thereto or any omission or alleged omission
      of a material fact required to be stated therein or necessary to make the
      statements therein not misleading, except insofar as (i) such untrue or alleged
      untrue statements or omissions or alleged omissions are based upon information
      regarding such holder furnished in writing to the Company by such holder
      expressly for use therein, or to the extent that such information relates to
      such holder or such holder’s proposed method of distribution of Registrable
      Securities, provided that, in each case, such information was reviewed and
      confirmed in advance by such holder and its counsel or (ii) the failure of
      such
      holder to satisfy the prospectus delivery requirement or the use by such holder
      of an outdated or defective prospectus after the Company has notified such
      holder in writing that the prospectus is outdated or defective and prior to the
      receipt by such holder of such notice.

     

    (b)  In
      connection with any registration statement in which a holder of Registrable
      Securities is participating, each such holder shall as promptly as practicable
      (and in no event later than three (3) Business Days after receipt of written
      notice by the Company of such requirement) furnish to the Company in writing
      such information and affidavits as the Company reasonably requests for use
      in
      connection with any such registration statement or prospectus. Each holder
      of
      Registrable Securities shall indemnify, to the extent permitted by law, the
      Company, its directors and officers and each Person who controls the Company
      (within the meaning of the Securities Act) against any Losses, to the extent
      that (i) such untrue or alleged untrue statements or omissions or alleged
      omissions are based solely upon information regarding such holder furnished
      in
      writing to the Company by such holder expressly for use therein, or to the
      extent that such information relates to the undersigned or the undersigned’s
      proposed method of distribution of Registrable Securities, provided that, in
      each case, such information was reviewed and confirmed in advance by such holder
      and/or (ii) the failure of such holder to satisfy the prospectus delivery
      requirement or, the use by such holder of an outdated or defective prospectus
      after the Company has notified such holder in writing that the prospectus is
      outdated or defective and prior to the receipt by such holder of such notice;
      provided,
      that
      the obligation to indemnify shall be individual, not joint and several, for
      each
      holder and shall be limited to the net amount of proceeds received by such
      holder from the sale of Registrable Securities pursuant to such registration
      statement.

    
      
        
        

      

      
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    (c)  The
      indemnification provided for under this Agreement shall remain in full force
      and
      effect regardless of any investigation made by or on behalf of the indemnified
      party or any officer, director or controlling Person of such indemnified party
      and shall survive the transfer of securities.

     

    (d)  Promptly
      after receipt by an indemnified party of notice of the commencement of any
      action or proceeding involving a claim referred to in the preceding paragraph
      (a) or (b) of this Section 6, such indemnified party shall, if a claim in
      respect thereof is to be made against an indemnifying party pursuant to such
      paragraphs, give written notice to the latter of the commencement of such
      action, provided,
      that
      the failure of any indemnified party to give notice as provided herein shall
      not
      relieve the indemnifying party of its obligations under the preceding paragraphs
      of this Section 6, except to the extent that the indemnifying party is actually
      prejudiced by such failure to give notice. In case any such action is brought
      against an indemnified party, the indemnifying party shall be entitled to
      participate in and, unless, in the reasonable judgment of any indemnified party
      a conflict of interest between such indemnified and indemnifying parties may
      exist with respect to such claim, to assume the defense thereof, jointly with
      any other indemnifying party similarly notified to the extent that it may wish,
      with counsel reasonably satisfactory to such indemnified party, and after notice
      from the indemnifying party to such indemnified party of its election so to
      assume the defense thereof, the indemnifying party shall not be liable to such
      indemnified party for any legal or other expenses subsequently incurred by
      the
      latter in connection with the defense thereof other than reasonable costs of
      investigation; provided,
      that
      the indemnified party may participate in such defense at the indemnified party’s
      expense; provided
      further,
      that
      the indemnified party or indemnified parties shall have the right to employ
      one
      counsel to represent it or them if, in the reasonable judgment of the
      indemnified party or indemnified parties, it is advisable for it or them to
      be
      represented by separate counsel by reason of having legal defenses which are
      different from or in addition to those available to the indemnifying party.
      If
      the indemnifying party is not entitled to, or elects not to, assume the defense
      of a claim, it shall not be obligated to pay the fees and expenses of more
      than
      one counsel for the indemnified parties with respect to such claim, unless
      in
      the reasonable judgment of any indemnified party a conflict of interest may
      exist between such indemnified party and any other indemnified parties with
      respect to such claim, in which event the indemnifying party shall be obligated
      to pay the fees and expenses of such additional counsel for the indemnified
      parties or counsels. No indemnifying party shall consent to entry of any
      judgment or enter into any settlement without the consent of the indemnified
      party (i) which does not include as an unconditional term thereof the
      giving by the claimant or plaintiff to such indemnified party of an
      unconditional release from all liability in respect to such claim or litigation
      and (ii) which includes a statement as to or an admission of fault,
      culpability or a failure to act by or on behalf of any indemnified party. No
      indemnifying party shall be subject to any liability for any settlement made
      without its consent, which consent shall not be unreasonably
      withheld.

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    (e)  If
      the
      indemnity and reimbursement obligation provided for in any paragraph of this
      Section 6 is unavailable or insufficient to hold harmless an indemnified party
      in respect of any Losses (or actions or proceedings in respect thereof) referred
      to therein, then the indemnifying party shall contribute to the amount paid
      or
      payable by the indemnified party as a result of such Losses (or actions or
      proceedings in respect thereof) in such proportion as is appropriate to reflect
      the relative fault of the indemnifying party on the one hand and the indemnified
      party on the other hand in connection with statements or omissions which
      resulted in such Losses, as well as any other relevant equitable considerations.
      The relative fault shall be determined by reference to, among other things,
      whether the untrue or alleged untrue statement of a material fact or the
      omission or alleged omission to state a material fact relates to information
      supplied by the indemnifying party or the indemnified party and the parties’
relative intent, knowledge, access to information and opportunity to correct
      or
      prevent such untrue statement or omission. The parties hereto agree that it
      would not be just and equitable if contributions pursuant to this paragraph
      were
      to be determined by pro rata allocation or by any other method of allocation
      which does not take account of the equitable considerations referred to in
      the
      first sentence of this paragraph. The amount paid by an indemnified party as
      a
      result of the Losses referred to in the first sentence of this paragraph shall
      be deemed to include any legal and other expenses reasonably incurred by such
      indemnified party in connection with investigation or defending any Loss which
      is the subject of this paragraph. No indemnified party guilty of fraudulent
      misrepresentation (within the meaning of Section 11(f) of the Securities Act)
      shall be entitled to contribution from the indemnifying party if the
      indemnifying party was not guilty of such fraudulent
      misrepresentation.

     

    (f)  Indemnification
      similar to that specified in the preceding paragraphs of this Section 6 (with
      appropriate modifications) shall be given by the Company and each seller of
      Registrable Securities with respect to any required registration or other
      qualification of securities under any federal or state law or regulation of
      any
      governmental authority other than the Securities Act. The provisions of this
      Section 6 shall be in addition to any other rights to indemnification or
      contribution which an indemnified party may have pursuant to law, equity,
      contract or otherwise.

     

    (g)  The
      indemnification required by this Section 6 shall be made by periodic payments
      of
      the amount thereof during the course of the investigation or defense, as and
      when bills are received or Losses are incurred.

    
      
        
        

      

      
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    7.  Participation
      in Underwritten Registrations.
      No
      Person
      may participate in any registration hereunder which is underwritten unless
      such
      Person (a) agrees to sell such Person’s securities on the basis provided in
      any underwriting arrangements reasonably approved by the Person or Persons
      entitled hereunder to approve such arrangements (which will include the making
      of representations and warranties and the granting of indemnification rights
      customary for a selling stockholder in the circumstances of such Person), and
      (b) completes and executes all questionnaires, powers of attorney,
      indemnities, underwriting agreements and other documents that are standard
      and
      customary for similarly situated Persons and are reasonably required under
      the
      terms of such underwriting arrangements; provided,
      that no
      holder of Purchaser Registrable Securities included in any underwritten
      registration shall be required to make any representations or warranties to
      the
      Company or the underwriters other than representations and warranties regarding
      such holder, such holder’s Purchaser Registrable Securities and such holder’s
      intended method of distribution or to undertake any indemnification obligations
      to the Company or the underwriters with respect thereto, except as otherwise
      provided in Section 6 hereof.

     

    8.  Definitions.

     

    “Business”
has
      the
      meaning ascribed to such term in the Purchase Agreement.

     

    “Business
      Day”
means
      any day except Saturday, Sunday and any day which shall be a legal holiday
      or
      other day on which securities exchanges are closed in New York, New
      York.

     

    “Closing
      Date”
has
      the
      meaning ascribed to such term in the Purchase Agreement.

     

    “Market
      Value”
of
      any
      Common Share as of any Business Day for which Market Value is being determined
      means the closing prices of such security’s sales on all securities exchanges on
      which such security may at the time be listed, or, if there has been no sales
      on
      any such exchange on any day, the average of the highest bid and lowest asked
      prices on all such exchanges at the end of such day, or, if on any day such
      security is not so listed, the average of the representative bid and asked
      prices quoted in the NASDAQ System as of 4:00 P.M., New York time, or, if on
      any
      day such security is not quoted in the NASDAQ System, the average of the highest
      bid and lowest asked prices on such day in the domestic over-the-counter market
      as reported by the National Quotation Bureau, Incorporated, or any similar
      successor organization. If at any time such security is not listed on any
      securities exchange or quoted in the NASDAQ System or the over-the-counter
      market, the “Market Value” shall be the fair value thereof determined jointly by
      the Company and DDJ. If such parties are unable to reach agreement within a
      reasonable period of time, such fair value shall be determined by an independent
      appraiser experienced in valuing securities jointly selected by the Company
      and
      DDJ. The determination of such appraiser shall be final and binding upon the
      parties, and the Company shall pay the fees and expenses of such
      appraiser.

     

    “Person”
means
      an individual, a partnership, a joint venture, a corporation, a trust, a limited
      liability company, an unincorporated organization or a government or any
      department or agency thereof.

    
      
        
        

      

      
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    “Registrable
      Securities”
means,
      irrespective of which Person actually holds such securities, (i) the Common
      Shares and (ii) any Common Stock issued or issuable with respect to the
      securities referred to in clause (i) above by way of a distribution, stock
      dividend, stock split, conversion or in connection with a combination of shares,
      recapitalization, merger, consolidation or other reorganization. As to any
      particular Registrable Securities, such securities will cease to be Registrable
      Securities when such securities (i) have been distributed to the public pursuant
      to an offering registered under the Securities Act or sold to the public through
      a broker, dealer or market maker in compliance with Rule 144 (or any similar
      rule then in force) under the Securities Act or (ii) are eligible for resale
      under Rule 144 (or any such rule then in force) without limitation as to volume.
      For purposes of this Agreement, a Person will be deemed to be a holder of
      Registrable Securities, and the Registrable Securities shall be deemed to be
      in
      existence, whenever such Person has the right to acquire directly or indirectly
      such Registrable Securities (upon conversion, or exercise in connection with
      a
      transfer of securities or otherwise, but disregarding any restrictions or
      limitations upon the exercise of such right), whether or not such acquisition
      has actually been effected, and such Person shall be entitled to exercise the
      rights of a holder of Registrable Securities hereunder. 

     

    “Registration
      Expenses”
means,
      all expenses incidental to the Company’s performance of or compliance with this
      Agreement, including without limitation all registration and filing fees, fees
      and expenses of compliance with securities or blue sky laws, stock exchange
      listing fees, printing expenses, messenger and delivery expenses, fees and
      disbursements of custodians, and fees and disbursements of counsel for the
      Company and all independent certified public accountants, underwriters
      (excluding discounts and commissions) and other Persons retained by the Company;
      but excluding underwriting discounts and commissions and fees of any counsel,
      accountants and other Persons retained by DDJ and/or its Permitted
      Designee(s).

     

    “SEC”
means
      the Securities and Exchange Commission.

     

    “Securities
      Act”
means
      the Securities Act of 1933, as amended.

     

    “Securities
      Exchange Act”
means
      the Securities Exchange Act of 1934, as amended.

     

    “Subsidiary”
means,
      with respect to any Person: (a) any corporation a majority of the total
      voting power of shares of stock of which is entitled (without regard to the
      occurrence of any contingency) to vote in the election of directors, managers
      or
      trustees thereof is at the time owned or controlled, directly or indirectly,
      by
      that Person or one or more of the other Subsidiaries of that Person or a
      combination thereof; or (b) any partnership, limited liability company,
      association or other business entity a majority of the partnership or other
      similar ownership interest of which is at the time owned or controlled, directly
      or indirectly, by that Person or one or more Subsidiaries of that Person or
      a
      combination thereof. For purposes of this definition, a Person is deemed to
      have
      a majority ownership interest in a partnership, limited liability company,
      association or other business entity if such Person is allocated a majority
      of
      the gains or losses of such partnership, limited liability company, association
      or other business entity or is or controls the managing director, managing
      member or general partner of such partnership, limited liability company,
      association or other business entity.

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    9.  Miscellaneous.

     

    (a)  No
      Inconsistent Agreements.
      The
      Company has not entered and shall not hereafter enter into any agreement with
      respect to its securities which is inconsistent with or violates the rights
      granted to the holders of Registrable Securities in this Agreement.

     

    (b)  Adjustments
      Affecting Registrable Securities.
      The
      Company shall not take any action, or permit any change to occur, with respect
      to its securities which would adversely affect the ability of the holders of
      Registrable Securities to include such Registrable Securities in a registration
      undertaken pursuant to this Agreement or which would adversely affect the
      marketability of such Registrable Securities in any such registration
      (including, without limitation, effecting a stock split or a combination of
      shares).

     

    (c)  Remedies.
      Any
      Person having rights under any provision of this Agreement shall be entitled
      to
      enforce such rights specifically to recover damages caused by reason of any
      breach of any provision of this Agreement and to exercise all other rights
      granted by law. Remedies available specifically hereunder are cumulative with
      each other and with all other remedies available at law and not specifically
      precluded hereby. The parties hereto agree and acknowledge that money damages
      may not be an adequate remedy for any breach of the provisions of this Agreement
      and that, in addition to any other rights and remedies existing in its favor,
      any party may in its sole discretion apply to any court of law or equity of
      competent jurisdiction (without posting any bond or other security) for specific
      performance and for other injunctive relief in order to enforce or prevent
      violation of the provisions of this Agreement.

     

    (d)  Amendments
      and Waivers.
      Except
      as otherwise provided herein, the provisions of this Agreement may be amended
      or
      waived only upon the prior written consent of the Company and DDJ. The failure
      of any party to enforce any of the provisions of this Agreement shall in no
      way
      be construed as a waiver of such provisions and shall not affect the right
      of
      such party thereafter to enforce each and every provision of this Agreement
      in
      accordance with its terms.

     

    (e)  Successors
      and Assigns.
      All
      covenants and agreements in this Agreement by or on behalf of any of the parties
      hereto shall bind and inure to the benefit of the respective successors and
      assigns of the parties hereto whether so expressed or not. In addition, whether
      or not any express assignment has been made, the provisions of this Agreement
      which are for the benefit of purchasers or holders of Registrable Securities
      are
      also for the benefit of, and enforceable by, any designee of DDJ set forth
      on
Schedule
      A
      hereto;
provided
      that any
      such designee executes a joinder to this Agreement substantially in the form
      of
Exhibit
      A
      hereto
      (each such designee, a “Permitted
      Designee”).

     

    (f)  Severability.
      Whenever possible, each provision of this Agreement shall be interpreted in
      such
      manner as to be effective and valid under applicable law and in a manner
      consistent with each other so as to carry out the purposes and intent of the
      parties hereto, but if any provision of this Agreement is held to be prohibited
      by or invalid under applicable law, such provision shall be ineffective only
      to
      the extent of such prohibition or invalidity, without invalidating the remainder
      of this Agreement.

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    (g)  Counterparts.
      This
      Agreement may be executed simultaneously in two or more counterparts, any one
      of
      which need not contain the signatures of more than one party, but all such
      counterparts taken together shall constitute one and the same
      Agreement.

     

    (h)  Descriptive
      Headings.
      The
      descriptive headings of this Agreement are inserted for convenience only and
      do
      not constitute a part of this Agreement.

     

    (i)  Notices.
      All
      notices, requests, consents and other communications provided for herein shall
      be in writing and shall be (i) delivered in person, (ii) transmitted
      by telecopy, (iii) sent by first-class, registered or certified mail,
      postage prepaid, or (iv) sent by reputable overnight courier service, fees
      prepaid, to the recipient at the address or telecopy number set forth below,
      or
      such other address or telecopy number as may hereafter be designated in writing
      by such recipient. Notices shall be deemed given upon personal delivery, seven
      (7) days following deposit in the mail as set forth above, upon acknowledgment
      by the receiving telecopier or one (1) day following deposit with an overnight
      courier service.

     

     

    If
      to
      the Company:

     

    Iconix
      Brand Group, Inc.

    1450
      Broadway - 4th
      Floor

    New
      York,
      NY 10018

    Telecopy: (212)
      391-0127

    Attention:
       Mr.
      Neil
      Cole

     

    with
      a
      copy to (which shall not constitute notice to the Company):

     

    Blank
      Rome LLP

    405
      Lexington Avenue

    New
      York,
      NY 10174 

    Telecopy: (212)
      885-5001

    Attention: Robert
      J.
      Mittman, Esq. 

     

    If
      to
      DDJ:

     

    DDJ
      Capital Management, LLC

    130
      Turner Street

    Building
      3, Suite 600

    Waltham,
      MA 02453

    Telecopy: (781)
      283-8541

    Attention: Tony
      Ranaldi

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    with
      a
      copy to (which shall not constitute notice to DDJ):

     

    Goodwin
      Procter LLP

    599
      Lexington Avenue

    New
      York,
      New York 10022

    Telecopy: (212)
      355-3333

    Attention: Allan
      S.
      Brilliant, Esq.

    

    or
      such
      other address or to the attention of such other Person as the recipient party
      shall have specified by prior written notice to the Company.

     

    (j)  GOVERNING
      LAW, JURY TRIAL AND JURISDICTION.
      THE CORPORATE LAW OF THE STATE OF DELAWARE SHALL GOVERN ALL ISSUES CONCERNING
      THE RELATIVE RIGHTS OF THE COMPANY AND ITS STOCKHOLDERS. ALL PROVISIONS OF
      THIS
      AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL
      LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS
      OF LAWS OR CHOICE OF LAW OF THE STATE OF NEW YORK OR ANY OTHER JURISDICTION
      WHICH WOULD RESULT IN THE APPLICATION OF THE LAW OF ANY JURISDICTION OTHER
      THAN
      THE STATE OF NEW YORK.
      

     

    (k)  No
      Strict Construction.
      The
      parties hereto have participated jointly in the negotiation and drafting of
      this
      Agreement. In the event an ambiguity or question of intent or interpretation
      arises, this Agreement shall be construed as if drafted jointly by the parties
      hereto, and no presumption or burden of proof shall arise favoring or
      disfavoring any party by virtue of the authorship of any of the provisions
      of
      this Agreement.

     

    (l)  Transfer.
      Prior
      to transferring any Registrable Securities (other than a transfer pursuant
      to
      which such Registrable Securities cease to be Registrable Securities) to any
      Person, the Person transferring such Registrable Securities will cause the
      prospective transferee to execute and deliver to the Company (for itself and
      as
      the agent of the other members), a joinder to this Agreement substantially
      in
      the form of Exhibit A
      hereto
      pursuant to which the prospective transferee agrees to be bound by this
      Agreement to the same extent as the Person transferring such Registrable
      Securities with respect to the Registrable Securities so transferred.
      Notwithstanding anything herein to the contrary, the Company shall not be
      obligated to file an amendment or post effective amendment to the Short-Form
      Registration or a prospectus supplement to the prospectus included in the
      Short-Form Registration as a result of any transfer or assignment of
      Registration Securities by DDJ, unless such transfer or assignment was to a
      Permitted Designee and the Company was notified in writing of such transfer
      or
      assignment prior to the date the Short-Form Registration was filed with the
      SEC.

     

    (m)  Entire
      Agreement.
      Except
      as otherwise expressly set forth herein, this Agreement, the Purchase Agreement
      and the other agreements referred to herein and therein embodies the complete
      agreement and understanding among the parties hereto with respect to the subject
      matter hereof and supersedes and preempts any prior understandings, agreements
      or representations by or among the parties, written or oral, which may have
      related to the subject matter hereof in any way.

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    (n)  Covenants
      Relating to Rule 144.
      If at
      any time the Company is required to file reports in compliance with either
      Section 13 or Section 15(d) of the Securities Exchange Act, as amended, the
      Company will file reports in compliance with the Securities Exchange Act, will
      comply with all rules and regulations of the SEC applicable in connection with
      the use of Rule 144 under the Securities Act and take such other actions and
      furnish such holder with such other information as such holder may request
      in
      order to avail itself of such rule or any other rule or regulation of the SEC
      allowing such holder to sell any Registrable Securities without registration,
      and will, at its expense, forthwith upon the reasonable request of any holder
      of
      Registrable Securities, deliver to such holder a certificate, signed by the
      Company’s principal financial officer, stating (i) the Company’s name,
      address and telephone number (including area code), (ii) the Company’s
      Internal Revenue Service identification number, (iii) the Company’s
      Commission file number, (iv) the number of shares of each class of capital
      stock outstanding as shown by the most recent report or statement published
      by
      the Company, and (v) whether the Company has filed the reports required to
      be filed under the Securities Exchange Act for a period of at least ninety
      (90)
      days prior to the date of such certificate and in addition has filed the most
      recent annual report required to be filed thereunder. If at any time the Company
      is not required to file reports in compliance with either Section 13 or Section
      15(d) of the Securities Exchange Act, the Company at its expense will, forthwith
      upon the reasonable written request of the holder of any Registrable Securities,
      make available adequate current public information with respect to the Company
      within the meaning of paragraph (c)(2) of Rule 144 under the Securities
      Act.

     

    (o)  Waiver
      of Jury Trial.
      The
      parties to this Agreement each hereby waives, to the fullest extent permitted
      by
      law, any right to trial by jury of any claim, demand, action, or cause of action
      (i) arising under this Agreement or (ii) in any way connected with or related
      or
      incidental to the dealings of the parties hereto in respect of this Agreement
      or
      any of the transactions related hereto, in each case whether now existing or
      hereafter arising, and whether in contract, tort, equity, or otherwise. The
      parties to this Agreement each hereby agrees and consents that any such claim,
      demand, action, or cause of action shall be decided by court trial without
      a
      jury and that the parties to this Agreement may file an original counterpart
      of
      a copy of this Agreement with any court as written evidence of the consent
      of
      the parties hereto to the waiver of their right to trial by jury.

     

    *
      * * * *

     

    [SIGNATURE
      PAGES FOLLOW]

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties have executed this Stock Issuance and Registration
      Rights Agreement as of the date first written above.

    
      	 	 	 
	 	ICONIX
              BRAND GROUP, INC.
	 
 	 
 	 
 
	
            	By:  	/s/ David
              Conn
	 	
              
Name: David
              Conn
	 	Its:     
              Executive
              Vice President

    

     

    
      
        	 	 	 
	 	DDJ
                CAPITAL MANAGEMENT, LLC
	 
 	 
 	 
 
	
              	By:  	/s/ David
                J.
                Breazzano
	 	
                
Name: 
                David J. Breazzano
	 	Its:     
Member

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    SCHEDULE
      A 

     

    PERMITTED
      DESIGNEES

     

     

    Southlake
      & Co.
      (note:  this is the nominee name for
      GMAM Investment Funds Trust II,
      one of
      the DDJ lenders.  The custodian requests that all physical stock
      certificates be issued in nominee name, rather than the name of the lender,
      for
      administrative, custodial reasons).

     

     

    Physical
      delivery instructions:
      

    DTC/New
      York Window 

    55
      Water
      Street 

    New
      York,
      NY  10041

    Phone: 
      (212) 855-2441 

    Fax: 
      (212) 855-2555 

     

     

    Attn: 
      Robert Mendez for the account of State Street 

     

    Account
      Name: GMAM Investment Funds Trust II 
Account
      Number:  7M2E 

     

     

    Wire
      instructions:
      

     

    State
      Street Bank & Trust Co., Boston 

    ABA
      #011
      000 028 

    Ref:
      GMAM
      Investment Funds Trust II 
Account
      Number:  
DDA#
      

     

    The
      October Fund, Limited Partnership 

     

    Physical
      delivery instructions:
      

    Goldman
      Sachs & Co. 

    Attention: 
      Anthony Destro 
One
      New
      York Plaza, 44th
      Floor

    New
      York,
      NY  10004 

    A/C
      #

    Account
      Name:  The October Fund, Limited Partnership 

     

    Wire
      instructions:
      

     

    JPMorgan
      Chase Bank, N.Y. 
ABA
      #
      021000021 
F/A/O
      Goldman Sachs & Co., N.Y. 
A/C 
      # 

    F/F/C
      The
      October Fund, LP 
A/C
      #

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    DDJ
      October Fund Onshore Feeder, Limited Partnership 

     

    Physical
      delivery instructions:
      

    Morgan
      Stanley & Co. 

    2000
      Westchester Avenue 

    Purchase,
      NY  10577 

    Account
      Name: DDJ October Fund Onshore Feeder, Limited Partnership 

    A/C: 
      

     

    Attn: 
      Brian Blum, Prime Brokerage 
DTC
      Participant #:  050 

     

    Wire
      instructions:
      

     

    Citibank,
      N.A. New York 
ABA
      #
      021000089 
Account
      -
      Morgan Stanley & Co., NY 
Account
      Number 
Account
      Name:  DDJ October Fund Onshore Feeder, Limited Partnership

Account
      Number  

     

    October
      OS Investment Sub 2005, Ltd. 

     

    Physical
      delivery instructions:
      

    Morgan
      Stanley & Co. 

    2000
      Westchester Avenue 

    Purchase,
      NY  10577 

    Account
      Name:  DDJ October Fund Offshore Feeder, L.P. 

    A/C: 
      

     

    Attn: 
      Brian Blum, Prime Brokerage 

     

    Wire
      instructions:
      

     

    Citibank,
      N.A. New York 
ABA#
      02-000-089 
F/A/O
      Morgan Stanley & Co., NY 
A/C#
      
F/F/C: 
      October OS Invest Sub 2005 Ltd. 
A/C#: 
      

     

    Contrarian
      Funds, LLC 

     

    Physical
      delivery instructions:
      

    Jonathan
      Neiss 

    Contrarian
      Capital Management 

    411
      West
      Putnam Avenue - Suite 225 

    Greenwich,
      CT 06830 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Wire
      instructions:
      

     

    Citibank 
ABA#
      021-000-089
A/C
      Bear
      Stearns Securities Corp.

    A/C#  

    F/C
      to
      Contrarian Funds, LLC

    A/C#
      

     

    The
      Foothill Group, Inc. 

     

    Physical
      delivery instructions:
      

    Smith
      Barney

    15260
      Ventura Blvd, #1900

    Sherman
      Oaks, CA 91403

    DTC
      #
      418

    Acct
      #

     

    Attn:
      Dave Ruderman/ Susan Agiert
Ph
      (818)382-5752
Fax
      (818)382-5768

     

     

     Wire
      instructions:
      

     

    Chase
      Manhattan Bank 

    New
      York,
      New York 
ABA
      #:  021-000-021 
Credit: 
      Foothill Group, Inc. 
Acct
      #:  

     

    Greenco
      Enterprises, Inc. 

     

    Physical
      delivery instructions: 
      TBD 

     

    Wire
      instructions: 
      TBD 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

     

    FORM
      OF JOINDER TO REGISTRATION RIGHTS AGREEMENT

     

    JOINDER
      to the Registration Rights Agreement (this “Joinder”),
      dated
      as of [_____],
      2006,
      by and among [______________], a [_________] (the “Company”),
      and
      [______________], a [_________] (the “Agreement”),
      is
      made and entered into as of [__________]
      by and
      between the Company and [Holder]
      (the
“Holder”).
      Capitalized terms used but not otherwise defined herein shall have the meanings
      set forth in the Agreement.

     

    WHEREAS,
      the Holder has acquired certain Common Stock of the Company and the Holder
      and
      the Company desire that the Holder, as a holder of such Common Stock, become
      a
      party to the Agreement, and the Holder agrees to do so in accordance with the
      terms hereof.

     

    NOW,
      THEREFORE, in consideration of the mutual covenants contained herein and other
      good and valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, the parties to this Joinder hereby agree as follows:

     

    1.  Agreement
      to be Bound.
      The
      Holder hereby agrees that upon execution of this Joinder, it shall become a
      party to the Agreement and shall be fully bound by, and subject to, all of
      the
      covenants, terms and conditions of the Agreement as though an original party
      thereto and shall be deemed a [DDJ] for all purposes thereof. In addition,
      the
      Holder hereby agrees that all Common Stock held by the Holder shall be deemed
      Registrable Securities for all purposes of the Agreement.

     

    2.  Successors
      and Assigns.
      Except
      as otherwise provided herein, this Joinder shall bind and inure to the benefit
      of and be enforceable by the Company and its successors and assigns and the
      Holder and any subsequent holders of the Holder’s Registrable Securities and the
      respective successors and assigns of each of them, so long as they hold any
      Registrable Securities.

     

    3.  Counterparts.
      This
      Joinder may be executed in separate counterparts each of which shall be an
      original and all of which taken together shall constitute one and the same
      agreement.

     

    4.  Notices.
      For
      purposes of Section 9(i) of the Agreement, all notices, demands or other
      communications to the Holder shall be directed to:

     

    [Name]

    [Address]

    [Attention]

    [Facsimile
      Number]

     

    5.  Governing
      Law.
      The
      corporate law of the State of Delaware shall govern all issues concerning the
      relative rights of the Company and its stockholders. All other provisions of
      this Agreement shall be governed by and construed in accordance with the
      internal laws of the State of New York, without giving effect to principles
      of
      conflicts of laws or choice of law of the State of New York or
      any
      other jurisdiction which would result in the application of the law of any
      jurisdiction other than the State of New York. 

     

    6.  Descriptive
      Headings.
      The
      descriptive headings of this Joinder are inserted for convenience only and
      do
      not constitute a part of this Joinder.

     

    *
      * * * *

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

     

        
      [_______________________]

    
      	 	 	 
	 	
            
	 
 	 
 	 
 
	
            	By:  	 
	 	
              
Name:
	 	Title: 

    

     

    
      
        	 	 	 
	 	[HOLDER]
	 
 	 
 	 
 
	
              	By:  	 
	 	
                
Name:
	 	Title:Exhibit
      10.1

     

    CONFIDENTIAL
      TERM SHEET

    

    
      	
              Parties:
                

            	
              WiFiMed,
                Inc., a Delaware corporation ("WIFI"); a to be formed subsidiary
                ("Newco"); and Bellacasa Productions, Inc., a Nevada corporation
                ("BCSP")
                trading on the OTC Bulletin Board under the symbol
                "BCSP".

            

    

    

    
      	
              Capitalization:

            	
              Approximately
                40,000,000 BCSP common stock issued and outstanding and approximately
                7,300,000 WIFI common stock issued and
                outstanding.

            

    

    

    
      	
              Reverse
                Merger:

            	
              It
                is the desire of the parties that WIFI and BCSP enter into a tax
                free
                share exchange agreement under IRS Section 368 (a) (b) (the “Reverse
                Merger”) in a private transaction structured to be exempt from
                registration under the Securities Act of 1933 and which, for accounting
                purposes, will be treated as a reverse merger. The parties shall
                enter
                into a share exchange or merger agreement whereby the outstanding
                capital
                stock of WIFI will be exchanged for shares of common stock of BCSP
                in a
                Reverse Merger. The combined company shall hereinafter be referred
                to as
                Newco. Prior to the consummation of the Reverse Merger, each party
                shall
                have conducted its due diligence on the other party and shall have
                been
                satisfied as to the results of such due diligence in its sole discretion.
                

            

    

    

    
      	 	
              The
                reverse merger only includes the BCSP shell and does not include
                any BCSP
                assets.

            

    

    

    On
      the
      effective date of the Reverse Merger, shareholders of BCSP shall own 14% of
      the
      shares of Newco. Pursuant to a share exchange or merger agreement and without
      giving effect to the private placement of WIFI shares, the WIFI shareholders
      shall receive shares of Newco so that as a result of the Reverse Merger, the
      WIFI shareholders shall hold 86% of Newco. 

    

    On
      the
      effective date of the Reverse Merger, all officers and directors of BCSP shall
      resign and WIFI shall appoint new officers and directors of Newco. BCSP will
      be
      offered one Board position with Newco. 

    

    
      	
              Approvals:
                

            	
              Each
                party shall obtain such approvals from its Board of Directors,
                shareholders and any third parties as are necessary to consummate
                the
                transactions herein contemplated. Effectiveness of the Reverse Merger
                is
                subject to SEC review. 

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Information
      

    
      	
              Statement:

            	
              BCSP
                shall file an information statement with the SEC whereby the Company
                shall
                effect (i) the increase in authorized capital; (ii) the 1:10 reverse
                split; and (iii) the Reverse
                Merger.

            

    

    

    
      	
              Audit:

            	
              WIFI
                has prepared audited financial statements through Rotenberg &
                Co.

            

    

     

    
      	
              Commissions:
                

            	
              WIFI
                and BCSP shall each indemnify the other parties with respect to the
                payment of any commissions or finder’s fees in connection with any
                transaction described herein. 

            

    

    

    
      	
              Counsel:

            	
              Arnstein
                & Lehr, LLP shall represent WIFI. BCSP shall retain separate counsel
                and sign the requisite waivers. 

            

    

    

    Document
      

    
      	
              Preparation:
                

            	
              WIFI
                counsel shall be responsible for the preparation of the information
                statement, share exchange or merger agreement and all other material
                agreements related to the Reverse Merger, as described in Schedule
                A,
                which such documents shall be mutually satisfactory to the parties.
                BCSP
                shall only be responsible for its attorneys’ fees in connection with its
                review of the documents related to the Reverse Merger, as well as
                its
                costs and expenses related to the information statement. Each party
                shall
                make arrangements for its employees, attorneys and accountants to
                be
                available for consultation by the other party and its representatives
                and
                will respond fully and promptly to the due diligence
                requests.

            

    

    

    Termination/

    Reasonable

    
      	
              Cause:

            	
              The
                terms set forth on this Term Sheet may be terminated without penalty
                for
                either party if (i) pursuant to the share exchange or merger agreement,
                the parties are unable to reach an acceptable and fair allocation
                of
                shares to the WIFI shareholders in exchange for the business and
                assets
                being merged into BCSP; (ii) fraud by other party; (iii) failure
                to obtain
                SEC approval (clear comments) of the information statement on or
                before
                November 30, 2006; or (iv) termination as otherwise provided under
                a
                definitive share exchange or merger agreement.

            

    

    

    For
      BCSP
      if there is a material change in the business or financial condition of WIFI
      on
      or before September 8, 2006. 

    

    For
      WIFI
      if BCSP fails to file periodic reports with the SEC.

    

    
      	
              Term:
                

            	
              The
                terms set forth on this Confidential Term Sheet shall expire on December
                31, 2006, 5:00 pm ET, unless extended by the mutual consent of the
                parties
                hereto, and thereafter neither party shall have any obligation to
                the
                other party except as specifically set forth
                herein.

            

    

    

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    
      	
              Exclusive
                Dealing: 

            	
              Until
                the earlier of September 8, 2006 or the signing of a definitive share
                exchange or merger agreement, BCSP and WIFI will not enter into any
                agreement, discussion, or negotiation with, or provide information
                to, any
                other consulting firm, investment banking firm, corporation, or other
                person, or solicit, encourage, entertain or consider any inquiries
                or
                proposals, with respect to financing, the issuance of securities,
                or a
                reverse merger transaction. 

            

    

    

    
      	
              Confidentiality:

            	
              All
                information furnished by any party hereto shall be treated as the
                sole
                property of the party furnishing the information until consummation
                of the
                transactions contemplated herein and, if such transaction shall not
                occur,
                each party shall return to the party which furnished such information
                all
                documents or other material containing, or reflecting or referring
                to such
                information and all copies thereof. The parties shall keep confidential
                all information discussed herein, and shall not directly or indirectly
                use
                such information for any competitive or other commercial purpose.
                

            

    

    

    
      	 	
              No
                press release or public announcement of this Term Sheet shall be
                made
                without the consent of both parties. All press releases and public
                announcements regarding the transaction contemplated by this Term
                Sheet
                will be prepared by WIFI counsel, and reviewed prior to release by
                BCSP or
                its designated parties.

            

    

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    If
      the
      foregoing correctly reflects the understanding between us, please sign, date
      and
      return the enclosed copy of this Term Sheet, which will then constitute an
      agreement with respect to the foregoing matters. This letter may be executed
      simultaneously in two or more counterparts, each of which shall constitute
      an
      original, but all of which together shall constitute one and the same
      instrument. 

     

    

    
      	 	
              BELLACASA
                PRODUCTIONS, INC.

            
	 	 
	 	 
	 	
              /s/
                Marshall Sterman

            
	 	
              Marshall
                Sterman, Chairman and CEO

            
	 	 
	 	
              /s/
                Steven Preiss

            
	 	
              Steven
                Preiss, Director

            
	 	 
	 	 
	 	
              WIFIMED,
                INC.

            
	 	 
	 	 
	 	
              /s/
                Jeffrey Allen Simon

            
	 	
              Jeffrey
                Allen Simon

            
	 	
              President
                and CEO

            

    

    

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    Schedule
      A

    

    Information
      Statement

    Share
      Exchange or Merger Agreement

    

    To
      Be
      Prepared

     

     

     

    
      
         

      

      
        5

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