Document:

Execution
      Copy

     

     

     

    Confirmation
      of OTC Warrant Transaction

     

    
      	Date:	 	June 19, 2007
	To:	 	Iconix Brand Group, Inc. (“Counterparty”)
	
            	 	
              Attention:
                 Chief
                Executive Officer

              Telephone
                No.: 212-730-0030

              Facsimile
                No.:  212-391-0127

            
	
            	 	
            
	From:	 	Merrill Lynch International
              (“MLI”)

    

     

     

      
        

      

    

    MLI
      Reference: 078173809

     

    Dear
      Sir
      / Madam:

    
      

The
      purpose of this letter agreement (this “Confirmation”)
      is to
      amend and restate the terms and conditions of the above-referenced transaction
      entered into among Counterparty, MLI and Merrill Lynch, Pierce, Fenner &
Smith Incorporated (the “Agent”
      or
“MLPFS”)
      on the
      Trade Date specified below (the “Transaction”).
      This
      Confirmation amends, restates and supercedes in its entirety the Confirmation
      in
      respect of the Transaction dated as of June 14, 2007.
      This
      Confirmation constitutes a “Confirmation” as referred to in the Agreement
      specified below.

     

    The
      definitions and provisions contained in the 2000 ISDA Definitions (the
“Swap
      Definitions”)
      and the
      2002 ISDA Equity Derivatives Definitions (the “Equity
      Definitions” and,
      together with the Swap Definitions, the “Definitions”),
      in
      each
      case as published by the International Swaps and Derivatives Association, Inc.,
      are
      incorporated into this Confirmation. In the event of any inconsistency between
      the Swap Definitions and the Equity Definitions, the Equity Definitions will
      govern, and in the event of any inconsistency between the Definitions and this
      Confirmation, this Confirmation will govern. References herein to a
“Transaction” shall be deemed to be references to a “Share Option Transaction”
for the purposes of the Equity Definitions and to a “Swap Transaction” for the
      purposes of the Swap Definitions. For purposes of this Transaction, “Warrant
      Style”, “Warrant Type”, “Number of Warrants” and “Warrant Entitlement” (each as
      defined below) shall be used herein as if such terms were referred to as “Option
      Style”, “Option Type”, “Number of Options” and “Option Entitlement”,
      respectively, in the Definitions.

     

    This
      Confirmation evidences a complete binding agreement between you and us as to
      the
      terms of the Transaction to which this Confirmation relates. This Confirmation
      (notwithstanding anything to the contrary herein), shall be subject to, and
      form
      part of, an agreement in the 1992 form of the ISDA Master Agreement
      (Multicurrency Cross Border) (the “Master
      Agreement” or
      “Agreement”)
      as if we
      had executed an agreement in such form (but without any Schedule and with
      elections specified in the “ISDA Master Agreement” Section of this Confirmation)
      on the Trade Date. In the event of any inconsistency between the provisions
      of
      that Agreement and this Confirmation, this Confirmation will prevail for the
      purpose of this Transaction. The parties hereby agree that the Transaction
      evidenced by this Confirmation shall be the only Transaction subject to and
      governed by the Agreement.

     

    The
      terms
      of the particular Transaction to which this Confirmation relates are as
      follows:

     

    
      
        
        

      

      
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    General
      Terms: 

     

    
      	
              Trade
                Date:

            	 	
              June
                14, 2007

            
	 	 	 
	
              Effective
                Date:

            	 	
              June
                20, 2007 subject to cancellation of the OTC Warrant Transaction prior
                to
                5:00 p.m. (New York City time) on such date by the Counterparty.
                In
                the event of
                such cancellation, any payments previously made hereunder, including
                the
                Premium, shall be returned to the person making such payment.
                In
                addition, Counterparty shall reimburse MLI for any costs or expenses
                (including market losses) relating to the unwinding of its hedging
                activities in connection with the Transaction (including any loss
                or cost
                incurred as a result of its terminating, liquidating, obtaining or
                reestablishing any hedge or related trading position).

            
	 	 	 
	
              Warrant
                Style:

            	 	
              The
                Warrants shall be exercisable as set forth under “Procedures for Exercise”
                below. 

            
	 	 	 
	
              Warrant
                Type:

            	 	
              Call

            
	 	 	 
	
              Seller:

            	 	
              Counterparty

            
	 	 	 
	
              Buyer:

            	 	
              MLI

            
	 	 	 
	
              Shares:

            	 	
              Shares
                of common stock, $0.001 par
                value, of Counterparty (Security Symbol: “ICON”).

            
	 	 	 
	
              Number
                of Warrants:

            	 	
              6,259,076

            
	 	 	 
	
              Daily
                Number of Warrants:

            	 	
              For
                any day, the unexercised Number of Warrants on such day divided
                by
                the remaining number of Expiration Dates (including such day) and
                rounded
                down to the nearest whole number, with the balance of the Number
                of
                Warrants exercised on the final Expiration Date.

            
	 	 	 
	
              Warrant
                Entitlement:

            	 	
              One
                (1) Share per Warrant

            
	 	 	 
	
              Strike
                Price:

            	 	
              $42.40

            
	 	 	 
	
              Premium:

            	 	
              $22,494,000.00

            
	 	 	 
	
              Premium
                Payment Date:

            	 	
              The
                Effective Date; provided no cancellation of the Transaction has occurred
                prior
                to 5:00 p.m. (New York City time) on such date by the
                Counterparty.

            
	 	 	 
	
              Exchange:

            	 	
              NASDAQ
                Global Market

            
	 	 	 
	
              Related
                Exchange(s):

            	 	
              All
                Exchanges

            
	 	 	 
	
              Full
                Exchange Business Day:

            	 	
              A
                Scheduled Trading Day that has a scheduled closing time for its regular
                trading session at 4:00 p.m. (New York City time) or the then standard
                closing time for regular trading on the Exchange and is not a Disrupted
                Day.

            

    

     

    
      
        
        

      

      
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              Procedures
                for Exercise:

            	 	 
	 	 	 
	
              Expiration
                Time:

            	 	
              11:59
                p.m. (New York City time).

            
	 	 	 
	
              Expiration
                Dates:

            	 	
              The
                75 consecutive Full Exchange Business Days beginning on and including
                September
                28, 2012 each
                shall be the Expiration Date for a number of Warrants equal to the
                Daily
                Number of Warrants on such date.

            
	 	 	 
	
              Exercise
                Dates:

            	 	
              Each
                Expiration Date shall be an Exercise Date for a number of Warrants
                equal
                to the Daily Number of Warrants on such date.

            
	 	 	 
	
              Automatic
                Exercise:

            	 	
              Applicable;
                provided that Section 3.4(a) of the Equity Definitions shall apply
                to Cash
                Settlement and Net Physical Settlement; and provided further that,
                unless
                all Warrants have been previously exercised hereunder, a number of
                Warrants for each Expiration Date equal to the Daily Number of Warrants
                for such Expiration Date shall be deemed to be automatically
                exercised.

            
	 	 	 
	
              Counterparty’s
                Telephone Number and Telex and/or Facsimile Number and Contact Details
                for
                purpose of Giving Notice:

            	 	
              Address: 1450
                Broadway 

              New
                York, New York 10018

               

              Attention: Chief
                Executive Officer

              Facsimile
                No.: 212-391-0127

              Telephone
                No.: 212-730-0030

            
	
              Valuation:

            	 	 
	 	 	 
	
              Valuation
                Dates:

            	 	
              Each
                Exercise Date

            
	 	 	 
	
              Settlement
                Terms:

            	 	 
	 	 	 
	
              Cash
                Settlement:

            	 	
              Applicable;
                provided that it shall be a condition of Counterparty’s right to elect
                Cash Settlement that Counterparty delivers to Buyer on the date of
                the
                Cash Settlement election a representation signed by Counterparty
                that
                Counterparty has publicly disclosed all material information necessary
                for
                Counterparty to be able to purchase or sell Shares in compliance
                with
                applicable federal securities laws. If Counterparty elects to settle
                the
                Transaction by Cash Settlement, Counterparty
                represents and agrees that:

               

              (i)
                Counterparty is not, on the date of the Cash Settlement election,
                and will
                not be, on any day during the period from and including the first
                Expiration Date to and including the final Expiration Date, engaged
                in a
                distribution, as such term is used in Regulation M under the Securities
                Exchange Act of 1934, as amended (the “Exchange
                Act”); and

               

              (ii)
                during the period from and including the first Expiration Date to
                and
                including the final Expiration Date, without the prior written consent
                of
                MLI, the Counterparty shall not, and shall cause its affiliates and
                affiliated purchasers (each as defined in Rule 10b-18
                under the Exchange Act) not to, directly or indirectly (including,
                without
                limitation, by means of a derivative instrument) purchase, offer
                to
                purchase, place any bid or limit order that would effect a purchase
                of, or
                commence any tender offer relating to, any Shares (or equivalent
                interest,
                including a unit of beneficial interest in a trust or limited partnership
                or a depository share) or any security convertible into or exchangeable
                for the Shares.

            

    

     

    
      
        
        

      

      
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              Settlement
                Currency:

            	 	
              USD

            
	 	 	 
	
              Settlement
                Price:

            	 	
              For
                each Valuation Date, the Volume Weighted Average Price of the Shares
                (“VWAP”) calculated from 9:45 a.m. to 3:45 p.m., as observed under the
                heading Bloomberg “VWAP” on Bloomberg page ICON <equity> AQR SEC (or
                any successor thereto) (or if such volume-weighted average price
                is
                unavailable, the market value of one Share on such Valuation Date,
                as
                determined by the Calculation Agent); provided that if the scheduled
                weekday closing time of the Exchange for any Valuation Date is later
                than
                4:00 p.m. (without regard to after hours or any other trading outside
                of
                the regular trading session hours) the VWAP shall be calculated for
                such
                Valuation Date from 9:45 a.m. until 15 minutes prior to such later
                closing
                time of the Exchange.

               

              Section
                6.3(a) of the Equity Definitions is hereby amended by replacing clause
                (ii) in its entirety with “(ii) an Exchange Disruption, or” and inserting
                immediately following clause (iii) the phrase “; in each case that the
                Calculation Agent determines is material.”

            
	 	 	 
	
              Cash
                Settlement Payment Date:

            	 	
              With
                respect to each Valuation Date, three (3) Currency Business Days
                after the
                final
                Valuation Date.

            
	 	 	 
	
              Settlement
                Method Election:

            	 	
              Applicable
                with respect to Cash Settlement or Net Physical Settlement
                only.

            
	 	 	 
	
              Electing
                Party:

            	 	
              Counterparty

            
	 	 	 
	
              Settlement
                Method Election Date:

            	 	
              Ten
                (10) Business Days prior to the first Expiration Date

            
	 	 	 
	
              Default
                Settlement Method:

            	 	
              Net
                Physical Settlement.

            
	 	 	 
	
              Net
                Physical Settlement:

            	 	
              In
                the event that the Counterparty elects, or is deemed to elect, to
                settle
                this Transaction by Net Physical Settlement, subject to “Conditions of Net
                Physical Settlement” below, Counterparty shall deliver to MLI on the
                Settlement Date a number of Shares (the “Delivered
                Shares”) equal
                to the Share Delivery Quantity, provided that in the event that the
                number
                of Shares calculated comprises any fractional Share, only whole Shares
                shall be delivered and an amount in cash equal to the value of such
                fractional share shall be payable by the Counterparty to MLI in lieu
                of
                such fractional Share.

            
	 	 	 
	
              Share
                Delivery Quantity:

            	 	
              For
                each Exercise Date, a number of Shares, as calculated by the Calculation
                Agent, equal to the Net Physical Settlement Amount for such Exercise
                Date
                divided by the Settlement
                Price
                on
                the Valuation Date in respect of such Settlement Date
                plus an amount in cash in lieu of any fractional shares (based on
                the
                applicable
                Settlement
                Price).

            
	 	 	 
	
              Net
                Physical Settlement Amount:

            	 	
              For
                any Exercise Date, an amount equal to the product of (i) the Number
                of
                Warrants being exercised on the relevant Exercise Date, (ii) the
                Strike
                Price Differential for such Exercise Date and (iii) the Warrant
                Entitlement.

            

    

     

    
      
        
        

      

      
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              Strike
                Price Differential:

            	 	
              For
                any Valuation Date, (i) if the Settlement Price is greater than the
                Strike
                Price, an amount equal to the excess of such Settlement Price over
                the
                Strike Price for such Valuation Date or (ii) if such Settlement Price
                is
                less than or equal to the Strike Price, zero.

            
	 	 	 
	
              Settlement
                Date:

            	 	
              Settlement
                with respect to each Exercise Date shall occur on the third (3rd)
                Full
                Exchange Business Day following the final Valuation Date, provided
                that
                MLI shall have the right to request by prior written notice to
                Counterparty a Settlement Date with respect to any Exercise Date
                and the
                related Share Delivery Quantity that is three (3) Full Exchange Business
                Days following such Exercise Date. Such request shall not unreasonably
                be
                denied.

            
	 	 	 
	
              Conditions
                to Net Physical Settlement:

            	 	
              If,
                in connection with or six months following delivery of Shares hereunder,
                MLI notifies the Counterparty that MLI has reasonably determined
                after
                advice from counsel that there is a considered risk that such Shares
                are
                subject to restrictions on transfer in the hands of MLI pursuant
                to the
                rules and regulations promulgated under the Securities Act of 1933,
                as
                amended (the “Securities
                Act”), then
                Counterparty shall either (i) deliver Shares that are covered by
                an
                effective registration statement of Counterparty for immediate resale
                by
                MLI or (ii) agree to deliver additional Shares so that the value
                of such
                Shares as determined by the Calculation Agent to reflect an appropriate
                liquidity discount, equals the value of the number of Shares that
                would
                otherwise be deliverable if such Shares were freely tradable upon
                receipt
                by MLI.

               

              (A)
                If Counterparty elects to deliver Shares as described in above clause
                (i),
                then promptly following such notification from MLI

               

              (a) Counterparty
                shall afford MLI a reasonable opportunity to conduct a
                due diligence investigation with respect to Counterparty that is
                customary
                in scope for underwritten offerings of equity securities that yields
                a
                result reasonably satisfactory to MLI;

               

              (b) Counterparty
                shall as soon as practicable make available to MLI an effective
                registration statement for immediate resale (the “Registration
                Statement”)
                in
                form and content reasonably satisfactory to MLI and Counterparty
                and filed
                pursuant to Rule 415 under the Securities Act, and such prospectuses
                as
                MLI may reasonably request to comply with the applicable prospectus
                delivery requirements (the “Prospectus”)
                for the resale by MLI of such number of Shares as MLI shall reasonably
                specify in accordance with this paragraph, such Registration Statement
                to
                be effective and Prospectus to be current until the earliest of the
                date
                on which (1) all Delivered Shares have been sold by MLI, (2) MLI
                has
                advised Counterparty that it no longer requires that such Registration
                Statement be effective, (3) all remaining Delivered Shares could
                be sold
                by MLI without registration pursuant to Rule 144 promulgated under
                the
                Securities Act (the “Registration
                Period”)
                or
                (4) Counterparty has provided a legal opinion in form and substance
                satisfactory to MLI (with customary assumptions and exceptions) that
                the
                Shares issuable upon exercise of these Warrants will be freely tradable
                under the Securities Act upon delivery to MLI and not subject to
                any
                legend restricting transferability. It is understood that the Registration
                Statement and Prospectus will cover a number of Shares equal to the
                aggregate number of Shares (if any) reasonably estimated by MLI to
                be
                potentially deliverable by Counterparty in connection with Net Physical
                Settlement hereunder (not to exceed the Maximum Deliverable Share
                Amount)
                and shall be subject to the same suspension of sales during “blackout
                dates” as provided in the following paragraph;
                and

            

    

     

    
      
        
        

      

      
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              (c) Counterparty
                will enter into a registration rights agreement with MLI in form
                and
                substance reasonably acceptable to MLI and Counterparty, which agreement
                will contain among other things, customary representations and warranties
                and indemnification, restrictions on sales during “blackout dates” as
                provided for in the registration rights agreement (the “Registration
                Rights Agreement”)
                entered into by Counterparty on or about the date hereof,
                provide for delivery of comfort
                letters and opinions
                of counsel and other rights relating to the registration of a number
                of
                Shares equal to the number of Delivered Shares and other Shares
                deliverable hereunder up to the Maximum Deliverable Share
                Amount.

               

              (d) Counterparty
                shall promptly pay to MLI a $0.04 per Share fee with all Shares delivered
                in connection with Net Physical Settlement pursuant to a Registration
                Statement.

               

              (B)
                If Counterparty elects to deliver Shares as described in above clause
                (ii), then promptly following such notification from MLI

               

              (a) Counterparty
                shall afford MLI and any potential institutional purchaser of any
                Shares
                identified by MLI a reasonable opportunity to conduct a due diligence
                investigation with respect to Counterparty that is customary in scope
                for
                private placements of equity securities subject to execution of any
                customary confidentiality agreements;

               

              (b) Counterparty
                shall enter into an agreement (a “Private
                Placement Agreement”)
                with MLI on commercially reasonable mutually acceptable terms in
                connection with the private placement of such Shares by Counterparty
                to
                MLI or an affiliate and the private resale of such shares by MLI
                or such
                affiliate, substantially similar to private placement purchase agreements
                customary for private placements of equity securities, in form and
                substance commercially reasonably satisfactory to MLI and Counterparty,
                which Private Placement Agreement shall include provisions relating
                to the
                indemnification of, and contribution in connection with the liability
                of,
                MLI and its affiliates, shall provide for the payment by Counterparty
                of
                all expenses
                in connection with such resale, including all reasonable and documented
                fees and expenses of counsel for MLI, shall
                contain representations, warranties and agreements of Counterparty
                reasonably necessary or advisable to establish and maintain the
                availability of an exemption from the registration requirements of
                the
                Securities Act for such resales,
                and shall use reasonable best efforts to provide for the delivery
                of
                accountants’ “comfort letters” to MLI or such affiliate with respect to
                the financial statements and certain financial information contained
                in or
                incorporated by reference into the offering memorandum prepared for
                the
                resale of such Shares;

               

            

    

     

    
      
        
        

      

      
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              (c) MLI
                shall sell the Delivered Shares in a commercially reasonable manner
                until
                the amount received by MLI for the sale of the Shares (the
                “Proceeds
                 Amount”)
                is
                equal to the Net Physical Settlement Amount. Any remaining Delivered
                Shares shall be returned to Counterparty. If the Proceeds Amount
                is less
                than the Net Physical Settlement Amount, Counterparty shall promptly
                deliver upon notice from MLI additional Shares to MLI until the dollar
                amount from the sale of such Shares by MLI equals the difference
                between
                the Net Physical Settlement Amount and the Proceeds Amount. In no
                event
                shall Counterparty be required to deliver to MLI a number of Shares
                greater than the Maximum Deliverable Share Amount.

               

              (C) Notwithstanding
                the foregoing: (I) if Counterparty has elected to deliver Shares
                as
                described in clause (i) above and either (a) Counterparty does not
                provide
                for the sale of the Shares under the Registration Statement as provided
                in
                the Registration Rights Agreement or (b) some Shares cannot be registered
                under the Registration Statement due to Rule 415(a)(4)
                under the Securities Act, then the provisions of sub-paragraph (B)
                shall
                apply to the extent Counterparty has not satisfied its obligations
                hereunder by the delivery of Shares pursuant to sub-paragraph (A).
                (II) If
                sub-paragraph (B) is applicable and Counterparty fails to satisfy
                its
                obligations under such sub-paragraph (B), then Counterparty may deliver
                unregistered Shares of equivalent value to the Net Physical Settlement
                Amount (or, if applicable, the unsatisfied portion thereof). The
                value of
                any unregistered Shares so delivered shall be discounted to reflect
                an
                appropriate liquidity discount (determined by MLI
                in
                a commercially reasonable manner, taking into account MLI’s policies and
                determinations with respect to any transfer restrictions that MLI
                deems it
                advisable to observe in connection with sales of such Shares). (III)
                If
                some or all of the Delivered Shares cannot be used to close out stock
                loans in the shares of Counterparty entered into to establish or
                maintain
                short positions by MLI in connection with this Transaction without
                a
                prospectus being required by applicable law to be delivered to such
                lender, then the value of any such Delivered Shares shall reflect
                the cost
                (determined by
                the Calculation Agent in good faith and
                in
                a commercially reasonable manner and taking into account the policies
                and
                determinations of MLI with respect to compliance with applicable
                legal and
                regulatory requirements) to MLI of trading Shares in order to close
                out
                its hedge position if any, in all cases for purposes of calculating
                the
                Delivered Shares. In no event shall Counterparty be required to top
                up the
                delivery in cash.

            
	 	 	 
	
              Limitations
                on Net Physical Settlement by Counterparty:

            	 	
              Notwithstanding
                anything herein or in the Agreement to the contrary, the number
                of Shares that may be delivered at settlement by Counterparty shall
                not
                exceed 9,388,615 at any time (“Maximum
                Deliverable Share Amount”),
                as
                adjusted by Calculation
                Agent
                to
                account for any subdivision, stock-split, stock
                combination, reclassification
                or similar dilutive or
                anti-dilutive event
                with respect to the Shares.

               

              Counterparty
                represents and warrants that the number of Available Shares as of
                the
                Trade Date is greater than the Maximum Deliverable Share Amount.
                Counterparty covenants and agrees that (i) Counterparty shall not
                take any
                action of corporate governance or otherwise to reduce the number
                of
                Available Shares below the Maximum Deliverable Share and (ii) Counterparty
                shall use its reasonable efforts to cause the number of Available
                Shares
                at all times to be greater than the Maximum Deliverable Share
                Amount.

            

    

     

    
      
        
        

      

      
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              For
                this purpose, “Available
                Shares” means
                the number of Shares Counterparty currently has authorized (but not
                issued
                and outstanding) less the maximum number of Shares that may be required
                to
                be issued by Counterparty in connection with stock options, convertibles,
                and other commitments of Counterparty that may require the issuance
                or
                delivery of Shares in connection therewith.

            
	 	 	 
	
              Dividends:

            	 	 
	 	 	 
	
              Extraordinary
                Dividends

            	 	
              Any
                and all dividends declared by the Issuer for which the ex-dividend
                date
                occurs during the period from, and including, the Trade Date to,
                and
                including, the date on which Counterparty has fully performed its
                obligations to deliver Shares hereunder.

            
	 	 	 
	
              Adjustments:

            	 	 
	 	 	 
	
              Method
                of Adjustment:

            	 	
              Calculation
                Agent Adjustment

            
	 	 	 
	
              Extraordinary
                Events:

            	 	 
	 	 	 
	
              Consequences
                of Merger Events:

            	 	
              (a)
                Share-for-Share: Cancellation
                and Payment (Calculation
                Agent Determination)

               

              (b)
                Share-for-Other: Cancellation
                and Payment (Calculation
                Agent Determination)

               

              (c)
                Share-for-Combined: Cancellation
                and Payment (Calculation
                Agent Determination)

            
	 	 	 
	
              Tender
                Offer:

            	 	
              Applicable

            
	 	 	 
	
              Consequences
                of Tender Offers:

            	 	
              (a)
                Share-for-Share: Modified
                Calculation
                Agent Adjustment

               

              (b)
                Share-for-Other: Cancellation
                and Payment (Calculation
                Agent Determination)

               

              (b)
                Share-for-Combined: Component
                Adjustment (Calculation
                Agent Determination)

               

              With
                respect to any Extraordinary Events hereunder, upon the occurrence
                of
                Cancellation and Payment in whole or in part, the parties agree that
                the
                amount to be paid, in accordance with the Equity Definitions, shall
                constitute a Transaction Early Termination Amount, subject to satisfaction
                by the payment or delivery of Shares or cash as set forth in the
                Early
                Termination section below.

            
	 	 	 
	
              Nationalization,
                Insolvency or Delisting:

            	 	
              Cancellation
                and Payment (Calculation Agent Determination) (subject to satisfaction
                by
                payment or delivery of Shares or cash as set forth in “Early
                Termination”
                below). In addition to the provisions of Section 12.6(a)(iii) of
                the
                Equity Definitions, it will also constitute a Delisting if the Exchange
                is
                located in the United States and the Shares are not immediately re-listed,
                re-traded or re-quoted on any of the New York Stock Exchange, the
                American
                Stock Exchange,
                the NASDAQ Global Market or
                the
                NASDAQ Global Select Market
                (or their respective successors); if the Shares are immediately re-listed,
                re-traded or re-quoted on any such exchange or quotation system,
                such
                exchange or quotation system shall thereafter be deemed to be the
                Exchange.

            

    

     

    
      
        
        

      

      
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              Determining
                Party:

            	 	
              MLI,
                acting in good faith and in a commercially reasonable
                manner

            
	 	 	 
	
              Additional
                Disruption Events:

            	 	 
	
              Change
                in Law:

            	 	
              Applicable

            
	 	 	 
	
              Failure
                to Deliver:

            	 	
              Not
                Applicable

            
	 	 	 
	
              Insolvency
                Filing:

            	 	
              Applicable

            
	 	 	 
	
              Hedging
                Disruption Event:

            	 	
              Applicable

            
	 	 	 
	
              Increased
                Cost of Hedging:

            	 	
              Not
                Applicable

            
	 	 	 
	
              Loss
                of Stock Borrow:

            	 	
              Applicable.
                Section 12.9(b)(iv) of the Equity Definitions is hereby amended by
                deleting the text from and including “(A)” to and including “(B)” and by
                deleting the words “in each case”.

            
	 	 	 
	
              Maximum
                Stock Loan Rate:

            	 	
              0.60
                %

            
	 	 	 
	
              Increased
                Cost of Stock Borrow:

            	 	
              Applicable;
                provided that it shall be a condition to Counterparty’s right to make the
                election described in clause (C) of Section 12.9(b)(v) of the Equity
                Definitions that on the date of such election, none of Counterparty,
                its
                directors, executive officers, or any person controlling, or exercising
                influence over, its decision to make such election is in possession
                of any
                material non-public information with respect to Counterparty or the
                Shares; and provided further that, if Counterparty timely makes the
                election described in clause (A) or (B) of Section 12.9(b)(v) of
                the
                Equity Definitions, Counterparty shall thereafter remain entitled,
                subject
                to the foregoing condition, to terminate the Transaction pursuant
                to
                Section 12.9(b)(v)(C) of the Equity Definitions upon ten Scheduled
                Trading
                Days’ notice to MLI. Section 12.9(b)(v) of the Equity Definitions is
                hereby amended by deleting the text from and including “(X)” to and
                including “(Y)”.

            
	 	 	 
	
              Initial
                Stock Loan Rate:

            	 	
              0.25%

            
	 	 	 
	
              Hedging
                Party:

            	 	
              MLI

            
	 	 	 
	
              Determining
                Party:

            	 	
              MLI

            
	 	 	 
	
              Non-Reliance:

            	 	
              Applicable

            
	 	 	 
	
              Agreements
                and Acknowledgments Regarding Hedging Activities:

            	 	
              Applicable

            
	 	 	 
	
              Additional
                Acknowledgments:

            	 	
              Applicable

            

    

     

    
      
        
        

      

      
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              Other
                Provisions:

            	 	 
	 	 	 
	
              Additional
                Agreements:

            	 	
              If
                Counterparty would be obligated to pay cash to MLI pursuant to the
                terms
                of this Agreement for any reason without having had the right (other
                than
                pursuant to this paragraph) to elect to deliver Shares in satisfaction
                of
                such payment obligation, then Counterparty may elect to deliver to
                MLI a
                number of Shares (whether registered or unregistered) having a cash
                value
                equal to the amount of such payment obligation.
                Such
                number of Shares to be delivered shall
                be
                the number of Shares,
                determined by the Calculation Agent,
                sufficient for MLI
                to
                realize the cash equivalent of such payment obligation
                from proceeds of the sale of such number of Shares over a reasonable
                period of time
                taking into account any applicable discount (determined in a commercially
                reasonable manner) to reflect any restrictions on transfer as well
                as the
                market value of the Shares). Settlement relating to any delivery
                of Shares
                pursuant to this paragraph shall occur within a reasonable period
                of time.
                The number of Shares delivered pursuant to this paragraph shall not
                exceed
                the Maximum Deliverable Share Amount and shall be subject to the
                provisions under “Early Termination” hereof regarding Proceeds Amount and
                the provisions set forth in subsection (c) under “Additional Agreements,
                Representations and Covenants of Counterparty, Etc.”
                below.

            
	 	 	 
	
              Early
                Termination:

            	 	
              Notwithstanding
                any provision to the contrary, upon the designation of an Early
                Termination Date or the occurrence of Cancellation and Payment in
                whole or
                in part hereunder, Counterparty’s payment obligation in respect of this
                Transaction (which shall, in the case of an Early Termination Date
                be
                determined in accordance with Second Method and Loss
                (which shall be determined using commercially reasonable procedures
                in
                order to produce a commercially reasonable result)) (the “Transaction
                Early Termination Amount”)
                may, at the option of Counterparty, be satisfied by the delivery
                of a
                number of Shares equal to the Transaction Early Termination Amount
                divided
                by the Termination Price (“Early
                Termination Stock Settlement”);
                provided, however, that Counterparty must notify MLI of its election
                of
                Early Termination Stock Settlement by the close of business on the
                day
                that is two Exchange Business Days following the day that the notice
                designating the Early Termination Date, or notice that an Extraordinary
                Event has resulted in the cancellation or termination of the Transaction
                in whole or in part, is effective. “Termination
                Price”
                means the market
                value per Share
                on
                the Early Termination Date, as determined by the Calculation Agent
                in a
                commercially reasonable manner taking into account any applicable
                discount
                to reflect any restrictions on transfer.

               

              A
                number of Shares calculated as being due in respect of any Early
                Termination Stock Settlement will be deliverable on the third Clearance
                System Business Day following the date that notice specifying the
                number
                of Shares deliverable is effective; provided
                that,
                if Counterparty is delivering Shares as a result of a Merger Event,
                the
                Settlement Date for such delivery will be immediately prior to the
                effective time of the Merger Event and the Shares will be deemed
                delivered
                at such time such that MLI will be a holder of the Shares prior to
                such
                effective time. Section 6(d)(i) of the Agreement is hereby amended
                by
                adding the following words after the word “paid” in the fifth line
                thereof: “or any delivery is to be made, as applicable.”

               

              On
                or prior to the Early Termination Date or date on which notice that
                an
                Extraordinary Event has resulted in the cancellation or termination
                of the
                Transaction in whole or in part is effective, as applicable, if Early
                Termination Stock Settlement is elected and if so requested by MLI
                upon
                advice of counsel, Counterparty shall (subject to its right to make
                the
                election described in the immediately succeeding paragraph) enter
                into a
                registration rights agreement with MLI in form and substance reasonably
                acceptable to MLI and Counterparty which agreement will contain among
                other things, customary representations and warranties and
                indemnification, restrictions on sales during “blackout dates” as provided
                for in the Registration Rights Agreement and shall satisfy the conditions
                contained therein and Counterparty shall file and diligently pursue
                to
                effectiveness a Registration Statement pursuant to Rule 415 under
                the
                Securities Act. If and when such Registration Statement shall have
                been
                declared effective by the Securities and Exchange Commission, Counterparty
                shall have made available to MLI such Prospectuses as MLI may reasonably
                request to comply with the applicable prospectus delivery requirements
                for
                the resale by MLI of such number of Shares as MLI shall specify (or,
                if
                greater, the number of Shares that Counterparty shall specify). Such
                Registration Statement shall be effective and Prospectus shall be
                current
                until the earliest of the date on which (i) all Shares delivered
                by
                Counterparty in connection with an Early Termination Date
                have been sold,
                (ii) MLI has advised Counterparty that it no longer requires that
                such
                Registration Statement be effective or (iii) all remaining Shares
                could be
                sold by MLI without registration pursuant to Rule 144 promulgated
                under
                the Securities Act (the “Termination
                Registration Period”).
                It
                is understood that the Registration Statement and Prospectus will
                cover a
                number of Shares equal to the number of Shares plus the aggregate
                number
                of Shares (if any) reasonably estimated by MLI to be potentially
                deliverable by Counterparty in connection with Early Termination
                Stock
                Settlement hereunder, but in no event exceeding the Maximum Deliverable
                Share Amount. On each day during the Termination Registration Period
                Counterparty shall represent that each of its filings under the Securities
                Act, the Exchange Act or other applicable securities laws that are
                required to be filed have been filed and that, as of the respective
                dates
                thereof and as of the date of this representation, they do not
                contain
                any untrue statement of a material fact or omission of a material
                fact
                required to be stated therein or necessary to make the statements
                made, in
                the light of the circumstances under which they were made, not
                misleading.

            

    

     

    
      
        
        

      

      
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              If
                Counterparty elects not to deliver Shares subject to an effective
                Registration Statement (or if some or all of the Shares delivered
                cannot
                be used to close out stock loans in the shares of Counterparty entered
                into to establish or maintain short positions by MLI in connection
                with
                this Transaction without a prospectus being required by applicable
                law to
                be delivered to such lender), the provisions of sub-paragraphs (B)
                and (C)
                set forth above under “Conditions to Net Physical Settlement” shall apply,
                mutatis mutandis, as if the Net Physical Settlement Amount were the
                Transaction Early Termination Amount. In no event shall Counterparty
                be
                required to deliver to MLI a number of Shares greater than the Maximum
                Deliverable Share Amount.

            
	 	 	 
	
              Compliance
                With Securities Laws:

            	 	
              Counterparty
                represents and agrees that it has complied, and will comply, in connection
                with this Transaction and all related or contemporaneous sales and
                purchases of Shares, with the applicable provisions of the Securities
                Act,
                the Exchange Act and the rules and regulations promulgated thereunder,
                including, without limitation, Rule 10b-5 and 13e and Regulation
                M under
                the Exchange Act.

            

    

     

    
      
        
        

      

      
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                  Each
                    party acknowledges that the offer and sale of the Transaction
                    to it is
                    intended to be exempt from registration under the Securities
                    Act by virtue
                    of Section 4(2) thereof. Accordingly, each party represents and
                    warrants
                    to the other party that (i) it has the financial ability to bear
                    the
                    economic risk of its investment in the Transaction and is able
                    to bear a
                    total loss of its investment, (ii) it is an “accredited investor” as that
                    term is defined in Regulation D as promulgated under the Securities
                    Act
                    and (iii) the disposition of the Transaction is restricted under
                    this
                    Confirmation, the Securities Act and state securities
                    laws.

                

                 

                Counterparty
                  further represents and warrants that:

              

               

              (a) Counterparty
                is not entering into this Transaction to create actual or apparent
                trading
                activity in the Shares (or any security convertible into or exchangeable
                for Shares) or to raise or depress or otherwise manipulate the price
                of
                the Shares (or any security convertible into or exchangeable for
                Shares);

               

              (b) Counterparty
                represents and acknowledges that as of the date hereof and without
                limiting the generality of Section 13.1 of the Equity Definitions,
                MLI is
                not making any representations or warranties with respect to the
                treatment
                of the Transaction under FASB Statements 149 or 150, EITF Issue No.
                00-19
                (or any successor issue statements) or under FASB’s Liabilities &
                Equity Project;

               

              (c) Counterparty
                is not, and after giving effect to the Transaction contemplated hereby,
                will not be, an “investment company” as such term is defined in the
                Investment Company Act of 1940, as amended;

               

              (d) As
                of the Trade Date and each date on which a payment or delivery is
                made by
                Counterparty hereunder, (i) the assets of Counterparty at their fair
                valuation exceed the liabilities of Counterparty, including contingent
                liabilities; (ii) the capital of Counterparty is adequate to conduct
                its
                business; and (iii) Counterparty has the ability to pay its debts
                and
                other obligations as such obligations mature and does not intend
                to, or
                believe that it will, incur debt or other obligations beyond its
                ability
                to pay as such obligations mature. 

            
	 	 	 
	
              Account
                Details:

            	 	
              Account
                for payments to Counterparty:

               

              To
                be advised.

               

              Account
                for payments to MLI:

              Chase
                Manhattan Bank, New York 

              ABA#:
                021-000-021 

              FAO:
                ML Equity Derivatives

              A/C:
                066213118

               

              Account
                for delivery of Shares to MLI:

               

              To
                be advised.

            
	 	 	 
	
              Agreement
                Regarding Shares:

            	 	
              Counterparty
                agrees that, in respect of any Shares delivered to MLI, such Shares
                shall
                be, upon such delivery, duly and validly authorized, issued and
                outstanding, fully paid and non-assessable and subject to no adverse
                claims of any other party. The issuance of such Shares does not and
                will
                not require the consent, approval, authorization, registration or
                qualification of any government authority, except such as shall have
                been
                obtained on or before the delivery date of any Shares or as may be
                required in connection with any Registration Statement filed with
                respect
                to any Shares.

            

    

     

    
      
        
        

      

      
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              Bankruptcy
                Rights:

            	 	
              In
                the event of Counterparty’s bankruptcy, MLI’s rights in connection with
                this Transaction shall not exceed those rights held by common
                shareholders. For the avoidance of doubt, the parties acknowledge
                and
                agree that MLI’s rights with respect to any other claim arising from this
                Transaction prior to Counterparty’s bankruptcy shall remain in full force
                and effect and shall not be otherwise abridged or modified in connection
                herewith.

            
	 	 	 
	
              Set-Off:

            	 	
              Each
                party waives any and all rights it may have to set-off,
                whether arising under any agreement, applicable law or
                otherwise.

            
	 	 	 
	
              Transfer:

            	 	
              Neither
                party may transfer its rights or delegate its obligations under this
                Transaction without the prior written consent of the other party,
                except
                that MLI,
                after payment in full of the Premium,
                may assign its rights and delegate its obligations hereunder, in
                whole or
                in part, to any other person (an “Assignee”)
                without the prior consent of the Counterparty, effective (the
                “Transfer
                Effective Date”)
                upon delivery to Counterparty of an executed acceptance and assumption
                by
                the Assignee (an “Assumption”)
                of the transferred obligations of MLI under this Transaction (the
                “Transferred
                Obligations”).
                Notwithstanding any other provision in this Confirmation to the contrary
                requiring or allowing MLI to purchase, sell, receive or deliver any
                Shares
                or other securities to or from Counterparty, MLI may designate any
                of its
                affiliates to purchase, sell, receive or deliver such Shares or other
                securities and otherwise to perform MLI’s obligations in respect of this
                Transaction and any such designee may assume such obligations. MLI
                shall
                be discharged of its obligations to Counterparty to the extent of
                any such
                performance.

            
	 	 	 
	
              Regulation:

            	 	
              MLI
                is regulated by The Securities and Futures Authority
                Limited.

            
	 	 	 
	
              Indemnity:

            	 	
              Seller
                agrees to indemnify MLI, its Affiliates and their respective directors,
                officers, agents and controlling parties (each such person being
                an
                “Indemnified Party”) from and against any and all losses, claims, damages
                and liabilities, joint and several, to which such Indemnified Party
                may
                become subject because of a breach of any representation or covenant
                hereunder, in the Agreement or any other agreement relating to the
                Agreement or Transaction and will reimburse Indemnified Party for
                all
                reasonable expenses (including reasonable legal fees and expenses)
                as they
                are incurred in connection with the investigation of, preparation
                for, or
                defense of, any pending or threatened claim or any action or proceeding
                arising therefrom, whether or not such Indemnified Party is a party
                thereto. Seller will not be liable to an Indemnified Party under
                the
                foregoing Indemnity provision to the extent that any loss, claim,
                damage,
                liability or expense is found in a final judgment by a court to have
                resulted from that Indemnified Party’s gross negligence or willful
                misconduct.

            

    

     

    Additional
      Agreements, Representations and Covenants of Counterparty, Etc.:

     

    
      	
              (a)

            	
              Counterparty
                hereby represents and warrants to MLI, on each day from the Trade
                Date to
                and including the earlier of (i) July 20, 2007 (ii) the date by which
                MLI
                is able to initially complete a hedge of its position created
                by this Transaction, that:

            

    

     

    
      
        
        

      

      
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              (1)

            	
              it
                will not, and will not permit any person or entity subject to its
                control
                to, bid for or purchase Shares during such period except pursuant
                to
                transactions or arrangements which have been approved by MLI or an
                affiliate of MLI; and

            

    

     

    
      	 	
              (2)

            	
              it
                has publicly disclosed all material information necessary for it
                to be
                able to purchase or sell Shares in compliance with applicable federal
                securities laws.

            

    

     

    (b) No
      collateral shall be required by either party for any reason in connection with
      this Transaction.

     

    
      	
              (c)

            	
              Notwithstanding
                anything to the contrary herein, MLI shall not be entitled to exercise
                any
                Warrant or receive any Shares deliverable hereunder, and Automatic
                Exercise shall not apply with respect to any Warrant to the extent
                (but
                only to the extent) that after such receipt of any Shares upon the
                exercise of such Warrant or otherwise hereunder MLI, or its ultimate
                parent entity would, directly or indirectly, be the beneficial owner
                (as
                such term is defined for purposes of Section 13(d) of the Exchange
                Act) at
                any time of more than 8.0 percent of the class of the Counterparty’s
                outstanding equity securities that is comprised of the Shares (an
                “Excess
                Share Owner”).

            

    

     

    MLI
      shall
      provide prior notice to Counterparty if the exercise of any Warrant or delivery
      of Shares hereunder would cause MLI to become directly or indirectly, an Excess
      Share Owner; provided
      that
      the
      failure of MLI to provide such notice shall not alter the effectiveness of
      the
      provisions set forth in the preceding sentence and any purported exercise or
      delivery in violation of such provisions shall be void and have no effect.
      If
      any delivery owed to MLI hereunder is not made, in whole or in part, as a result
      of this provision, Counterparty’s obligation to make such delivery shall not be
      extinguished and Counterparty shall make such delivery as promptly as
      practicable after MLI gives notice that such delivery would not result in MLI
      being an Excess Share Owner.

     

    If
      MLI is
      not entitled to exercise any Warrant because such exercise would cause MLI
      to
      become, directly or indirectly, an Excess Share Owner and MLI thereafter
      disposes of Shares owned by it or any action is taken that would then permit
      MLI
      to exercise such Warrant without such exercise causing it to become, directly
      or
      indirectly, an Excess Share Owner, then MLI shall provide notice of the taking
      of such action to Counterparty and such Warrant shall then become exercisable
      by
      MLI to the extent such Warrant is otherwise or had otherwise become exercisable
      hereunder. In such event, the Expiration Date with respect to such Warrant
      shall
      be the date on which Counterparty receives such notice from MLI, and the related
      Settlement Date shall be as soon as reasonably practicable after receipt of
      such
      notice but no more than three (3) Exchange Business Days thereafter (but in
      no
      event shall the Settlement Date occur prior to the date on which it would have
      otherwise occurred but for the provisions of this subsection); provided
      that
      the
      related Net Physical Settlement Amount shall be the same as the Net Physical
      Settlement Amount but for the provisions of this subsection. In addition, within
      30 calendar days of any Settlement Date, Counterparty shall use its reasonable
      efforts to refrain from activities that could reasonably be expected to result
      in MLI’s ownership of Shares exceeding 10% of all issued and outstanding
      Shares.

     

    Matters
      Relating to Agent: 

     

    
      	
              1.

            	
              MLPFS
                will be responsible for the operational aspects of the Transactions
                effected through it, such as record keeping, reporting, and confirming
                Transactions to Counterparty and
                MLI;

            

    

     

    
      	
              2.

            	
              Unless
                Counterparty is a “major U.S. institutional investor,” as defined in Rule
                15a-6 of the Exchange Act, neither Counterparty nor
                MLI will contact the other without the direct involvement of
                MLPFS;

            

    

     

    
      	
              3.

            	
              MLPFS’s
                sole role under this Agreement and with respect to any Transaction
                is as
                an agent of Counterparty and MLI on a disclosed basis and MLPFS shall
                have
                no responsibility or liability to Counterparty or MLI hereunder except
                for
                gross negligence or willful misconduct in the performance of its
                duties as
                agent. MLPFS is authorized to act as agent for MLI, but only to the
                extent
                expressly required to satisfy the requirements of Rule 15a-6 under
                the
                Exchange Act in respect of the Options described hereunder. MLPFS
                shall
                have no authority to act as agent for Counterparty generally or with
                respect to transactions or other matters governed by this Agreement,
                except to the extent expressly required to satisfy the requirements
                of
                Rule 1 5a-6 or in accordance with express instructions from
                Counterparty.

            

    

     

    
      
        
        

      

      
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    ISDA
      Master Agreement: 

     

    With
      respect to the Agreement, MLI and Counterparty each agree as
      follows:

     

    “Specified
      Entity” means
      in
      relation to Seller and in relation to Counterparty for purposes of this
      Transaction: Not applicable.

     

    The
      definition of “Specified
      Transaction” in
      Section 14 of this Agreement is hereby amended by adding the text “commodity
      transaction, credit derivative transaction, repurchase or reverse purchase
      transaction, securities lending transaction, futures transaction, prime
      brokerage or margin lending transaction” after the words “foreign exchange
      transaction” in the sixth line thereof and by replacing the words “any other
      similar transaction” in the eighth line thereof with the text “any other
      transaction between the parties”. “Specified Transaction” shall exclude any
      default under a Specified Transaction if caused solely by the general
      unavailability of the currency in which payments under such Specified
      Transaction are denominated due to exchange controls or other governmental
      action.

     

    The
      “Cross
      Default” provisions
      of Section
      5(a)(vi) of
      the
      Agreement will not apply to MLI and will not apply to Counterparty.

     

    The
      “Credit
      Event Upon Merger” provisions
      of Section
      5(b)(iv) of
      the
      Agreement will not apply to MLI or
      to
      Counterparty.

     

    Additional
      Termination Event.

     

    Without
      limiting the generality of the definition of any Extraordinary Event hereunder,
      the occurrence of any of the following shall constitute an Additional
      Termination Event with respect to which the Transaction shall be the sole
      Affected Transaction and Issuer shall be the sole Affected Party; provided
      that
      with respect to any Additional Termination Event, MLI may choose to treat part
      of the Transaction as the sole Affected Transaction, and, upon the termination
      of the Affected Transaction, a Transaction with terms identical to those set
      forth herein except with a Number of Warrants equal to the unaffected number
      of
      Warrants shall be treated for all purposes as the Transaction, which shall
      remain in full force and effect: 

     

    (i)
      within the period commencing on the Trade Date and ending on the second
      anniversary of the Premium Payment Date, Buyer reasonably determines that it
      is
      advisable to terminate a portion of the Transaction so that Buyer’s related
      hedging activities will comply with applicable securities laws, rules or
      regulations;

     

    (ii)
      the
      sale, lease, transfer, conveyance or other disposition (other than by way of
      merger or consolidation), in one or a series of related transactions, of all
      or
      substantially all of the properties and assets of the Issuer and its
      subsidiaries taken as a whole to any “person” (as such term is used in Section
      13(d)(3) of the Exchange Act) other than to one or more of the Issuer's
      wholly-owned subsidiaries; 

     

    (iii)
      the
      adoption of a plan relating to the liquidation or dissolution of the Issuer;
      

     

    (iv)
      the
      consummation of any transaction (including, without limitation, any merger
      or
      consolidation) the result of which is that any “person” or “group” (as such
      terms are used in Sections 13(d) and 14(d) of the Exchange Act) becomes the
      “beneficial owner” (as such term is defined in Rule 13d-3 and Rule 13d-5 under
      the Exchange Act, except that a person shall be deemed to have “beneficial
      ownership” of all securities that such person has the right to acquire, whether
      such right is currently exercisable or is exercisable only upon the occurrence
      of a subsequent condition), directly or indirectly, of more than 50% of the
      Voting Stock of the Issuer (measured by voting power rather than number of
      shares), other than any acquisition by the Issuer, any of the Issuer's
      subsidiaries or any of the Issuer's employee benefit plans; 

     

    
      
        
        

      

      
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    (iv)
      the
      first day on which a majority of the members of the Board of Directors of the
      Issuer are not Continuing Directors; or 

     

    (v)
      the
      Issuer consolidates with, or merges with or into, any Person, or any Person
      consolidates with, or merges with or into, the Issuer, in any such event
      pursuant to a transaction in which any of the outstanding Voting Stock of the
      Issuer is converted into or exchanged for cash, securities or other property,
      other than any such transaction where the Voting Stock of the Issuer outstanding
      immediately prior to such transaction is converted into or exchanged for Voting
      Stock of the surviving or transferee Person constituting a majority of the
      outstanding shares of such Voting Stock of such surviving or transferee Person
      (immediately after giving effect to such issuance). 

     

    Notwithstanding
      anything to the contrary set forth herein, an event described in clauses (ii)
      through (v) above will not constitute an Additional Termination Event if 100%
      of
      the consideration for the Shares (excluding cash payments for fractional shares
      and cash payments made in respect of dissenters' appraisal rights) in the
      transaction or transactions otherwise constituting an Additional Termination
      Event consists of common stock or American Depositary Shares representing shares
      of common stock, in each case which are traded on any of the New York Stock
      Exchange, the American Stock Exchange, the NASDAQ Global Market or the NASDAQ
      Global Select Market (or their respective successors), or which will be so
      traded or quoted when issued or exchanged in connection with such event;
      provided that, with respect to an entity organized under the laws of a
      jurisdiction outside the United States, such entity has a worldwide total market
      capitalization of its equity securities of at least three times the market
      capitalization of the Issuer before giving effect to the consolidation or
      merger.

     

    “Person”
means
      any individual, corporation, partnership, limited liability company, joint
      venture, association, joint-stock company, trust, unincorporated organization,
      government or any agency or political subdivision thereof or any syndicate
      or
      group that would be deemed to be a “person” under Section 13(d)(3) of the
      Exchange Act or any other entity. “Continuing
      Directors”
means
      any member of the board of directors of the Issuer who (i) was a member of
      such
      board of directors on the date hereof or (ii) was nominated for election or
      elected to such board of directors with the approval of a majority of the
      Continuing Directors who were members of such board at the time of such
      nomination or election. “Voting
      Stock”
of
      a
      Person means all shares of capital stock or other interests (including
      partnership interests) of such Person normally entitled (without regard to
      the
      occurrence of any contingency within the control of such person to satisfy)
      to
      vote in elections of the board of directors, managers or trustees thereof.
      

     

    The
      “Automatic
      Early Termination” provision
      of Section
      6(a) of
      the
      Agreement will not apply to MLI or to Counterparty.

     

    Payments
      on Early Termination. For
      the
      purpose of Section
      6(e) of
      the
      Agreement: (i) Loss
      (which
      shall be determined using commercially reasonable procedures in order to produce
      a commercially reasonable result) shall apply; and (ii) the Second Method shall
      apply.

     

    “Termination
      Currency”
means
      USD.

     

    Tax
      Representations.

     

    
      	
              (I)

            	
              Payer
                Representations. For
                the purpose of Section 3(e) of the Agreement, each party represents
                to the
                other party that it is not required by any applicable law, as modified
                by
                the practice of any relevant governmental revenue authority, of any
                Relevant Jurisdiction to make any deduction or withholding for or
                on
                account of any Tax from any payment (other than interest under Section
                2(e), 6(d)(ii), or 6(e) of the Agreement) to be made by it to the
                other
                party under the Agreement. In making this representation, each party
                may
                rely on (i) the accuracy of any representations made by the other
                party
                pursuant to Section 3(f) of the Agreement, (ii) the satisfaction
                of the
                agreement contained in Section 4(a)(i) or 4(a)(iii) of the Agreement,
                and
                the accuracy and effectiveness of any document provided by the other
                party
                pursuant to Section 4(a)(i) or 4(a)(iii) of the Agreement, and (iii)
                the
                satisfaction of the agreement of the other party contained in Section
                4(d)
                of the Agreement; provided
                that
                it will not be a breach of this representation where reliance is
                placed on
                clause (ii) above and the other party does not deliver a form or
                document
                under Section 4(a)(iii) of the Agreement by reason of material prejudice
                to its legal or commercial
                position.

            

    

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    Execution
      Copy

     

    
      	
              (II)

            	
              Payee
                Representations. For
                the purpose of Section 3(f) of the Agreement, each party makes the
                following representations to the other
                party:

            

    

     

    (i) MLI
      represents that it is a company organized under the laws of England
      and Wales.

     

    (ii)
       MLI
      represents that it is a “non-withholding foreign partnership” for United States
      Federal income tax purposes and each partner of MLI is a “non-U.S. branch of a
      foreign person” for purposes of section 1.1441-4(a)(3)(ii) of the United States
      Treasury Regulations and a “foreign person” for purposes of section
      1.6041-4(a)(4) of the United States Treasury Regulations.

     

    (iii) MLI
      represents that no partner of MLI is (i) a bank that has entered into this
      Agreement in the ordinary course of its trade or business of making loans,
      as
      described in section 881(c)(3)(A) of the Internal Revenue Code of 1986, as
      amended (the “Code”), (ii) a 10% shareholder of Counterparty within the meaning
      of Code section 871(h)(3)(B), or (iii) a controlled foreign corporation with
      respect to Counterparty within the meaning of Code section
      881(c)(3)(C).

     

    (iv) Counterparty
      represents that it is a corporation incorporated in Delaware.

     

    Delivery
      Requirements. For
      the
      purpose of Sections
      4(a)(i)
      and
(ii)
      of the
      Agreement, each party agrees to deliver the following documents:

    
       

      
        	
                (a)

              	
                Tax
                  forms, documents or certificates to be
                  delivered are:

              

      

       

    

    MLI
      agrees to complete (accurately and in a manner reasonably satisfactory to
Counterparty),
      execute, and deliver to Counterparty,
      United States Internal Revenue Service Form W-8IMY and all required attachments,
      or any successor of such form(s): (i) before the first payment date under this
      agreement; (ii) promptly upon reasonable demand by Counterparty; and (iii)
      promptly upon learning that any such Form previously provided by MLI has become
      obsolete or incorrect.

     

    Counterparty
      agrees to complete (accurately and in a manner reasonably satisfactory to MLI),
      execute, and deliver to MLI,
      United
      States Internal Revenue Service Form W-9 or W-8 BEN, or any successor of such
      form(s): (i) before the first payment date under this agreement; (ii) promptly
      upon reasonable demand by MLI;
      and
      (iii) promptly upon learning that any such form(s) previously provided by
Counterparty
      has
      become obsolete or incorrect.

     

     (b) Other
      documents to be delivered:

      

    
      	
              Party
                Required to Deliver Document

            	
              Document
                Required to be Delivered

            	
              When
                Required

            	
              Covered
                by Section 3(d) Representation 

            
	
              Counterparty

            	
              Evidence
                of the authority and true signatures of each official or representative
                signing this Confirmation

            	
              Upon
                or before execution and delivery of this Confirmation

            	
              Yes

            
	
              Counterparty

            	
              Certified
                copy of the resolution of the Board of Directors or equivalent document
                authorizing the execution and delivery of this Confirmation and such
                other
                certificate or certificates as MLI shall reasonably
                request

            	
              Upon
                or before execution and delivery of this Confirmation

            	
              Yes

            
	
              MLI

            	
              Guarantee
                of its Credit Support Provider, substantially in the form of Exhibit
                A
                attached hereto, together with evidence of the authority and true
                signatures of the signatories, if applicable

            	
              Upon
                or before execution and delivery of this Confirmation

            	
              No

            

    

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    Execution
      Copy

     

    Addresses
      for Notices:
      For the
      purpose of Section
      12(a) of
      the
      Agreement:

     

    Address
      for notices or communications to MLI for all purposes:

     

    
      
        	Address:	 	Merrill Lynch International 
	
              	 	Merrill Lynch Financial Centre
	
              	 	2 King Edward Street
	
              	 	London EC1A 1HQ
	Attention:	 	Manager, Fixed Income
                Settlements
	Facsimile No.:	 	44 207 995 2004
	Telephone No.:	 	44 207 995
                3769

      

    

     

    Address
      for notices or communications to Counterparty for all
      purposes:

    
       

      
        
          	Address:	 	1450 Broadway
	
                	 	New York, New York 10018
	
                	 	
                
	Attention:	 	Chief Executive Officer
	Facsimile No.:	 	212-391-0127
	Telephone No.:	 	212-730-0030

      

    

     

    In
      addition, in the case of notices or communications relating to Section 5, 6,
      11
      or 13 of this Agreement, a second copy of any such notice or communication
      shall
      be addressed to the attention of Counterparty’ General Counsel as
      follows:

     

    
      
        
          	Address:	 	1450 Broadway
	
                	 	New York, NY 10018
	
                	 	
                
	Attention:	 	General Counsel
	Facsimile No.:	 	212-391-0127
	Telephone No.:	 	212-819-2089
	
                	 	
                
	With a copy to:	 	
                
	
                	 	
                
	Firm:	 	Blank Rome LLP
	Address:	 	405 Lexington Avenue
                  New
                    York, NY 10174

                
	
                	 	
                
	Attention:	 	Robert J. Mittman, Esq.
	Facsimile No.:	 	212-885-5001
	Telephone No.:	 	212-8855000

        

      

    

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    Execution
      Copy

     

    Process
      Agent: For
      the
      purpose of Section 13(c) of the Agreement, MLI appoints as its process
      agent:

    
       

      
        
          	Address:	 	Merrill Lynch, Pierce, Fenner & Smith
                  Incorporated
	
                	 	222 Broadway, 16th Floor 
	
                	 	New York, New York 10038
	Attention:	 	Litigation
                  Department 
	
                	 	
                
	Counterparty does not
                  appoint a
                  Process Agent.

        

      

    

     

    Multibranch
      Party. For
      the
      purpose of Section
      10(c)
      of the
      Agreement: Neither MLI nor Counterparty is a Multibranch Party.

     

    Calculation
      Agent.
      "Calculation Agent" means MLI, acting in good faith and in a commercially
      reasonable manner. 

     

    Credit
      Support Document.

     

    MLI:
      Guarantee of ML & Co. in the form attached hereto as Exhibit A.

    Counterparty:
      Not Applicable

     

    Credit
      Support Provider.

     

    With
      respect to MLI:

     

    With
      respect to Counterparty: Not Applicable.

     

    Governing
      Law. This
      Confirmation will be governed by, and construed in accordance with, the laws
      of
      the State of New York.

     

    Waiver
      of Jury Trial. Each
      party waives, to the fullest extent permitted by applicable law, any right
      it
      may have to a trial by jury in respect of any suit, action or proceeding
      relating to this Transaction. Each party (i) certifies that no representative,
      agent or attorney of the other party has represented, expressly or otherwise,
      that such other party would not, in the event of such a suit, action or
      proceeding, seek to enforce the foregoing waiver and (ii) acknowledges that
      it
      and the other party have been induced to enter into this Transaction, as
      applicable, by, among other things, the mutual waivers and certifications
      provided herein.

     

    Netting
      of Payments. The
      provisions of Section
      2(c) of
      the
      Agreement shall not be applicable to this Transaction.

     

    Basic
      Representations. Section
      3(a) of
      the
      Agreement is hereby amended by the deletion of “and” at the end of Section
      3(a)(iv); the
      substitution of a semicolon for the period at the end of Section
      3(a)(v) and
      the
      addition of Sections
      3(a)(vi), as
      follows:

     

    Eligible
      Contract Participant; Line of Business. Each
      party agrees and represents that it is an “eligible contract participant” as
      defined in Section 1 (a)(12)
      of
      the U.S. Commodity Exchange Act, as amended (“CEA”),
      this
      Agreement and the Transaction thereunder are subject to individual negotiation
      by the parties and have not been executed or traded on a “trading facility” as
      defined in Section 1(a)(33)
      of
      the CEA, and it has entered into this Confirmation and this Transaction in
      connection with its business or a line of business (including financial
      intermediation), or the financing of its business.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    Execution
      Copy

     

    Acknowledgements:

     

    
      	
              (a)

            	
              The
                parties acknowledge and agree that there are no other representations,
                agreements or other undertakings of the parties in relation to this
                Transaction, except as set forth in this
                Confirmation.

            

    

    
       

      
        	
                (b)

              	
                The
                  parties hereto intend for:

              

      

       

    

    
      	 	
              (i)

            	
              Buyer
                to be a “financial institution” as defined in Section 101(22) of Title 11
                of the United States Code (the “Bankruptcy
                Code”)
                and this Transaction to be a “securities contract” as defined in Section
                741(7) of the Bankruptcy Code and
                a “swap agreement” as defined in Section 101(53C) of the Bankruptcy
                Code, qualifying
                for the protections of, among other sections, Sections 362(b)(6),
                362
                (b)(17), 546(e), 546(g), 555 and 560 of the Bankruptcy
                Code;

            

    

     

    
      	 	
              (ii)

            	
              a
                party’s right to liquidate this Transaction and to exercise any other
                remedies upon the occurrence of any Event of Default under the Agreement
                with respect to the other party to constitute a “contractual right” as
                defined in the Bankruptcy Code;

            

    

     

    
      	 	
              (iii)

            	
              all
                payments for, under or in connection with this Transaction, all payments
                for the Shares and the transfer
                of such Shares to constitute “settlement payments” as defined in the
                Bankruptcy Code.

            

    

     

    
      	
              (c)

            	
              The
                parties acknowledge and agree that in the event of an Early Termination
                Date as a result of an Event of Default that is within Counterparty’s
                control, the amount payable under the Agreement will be a cash amount
                calculated as described therein and that any delivery specified in
                this
                Transaction will no longer be
                required.

            

    

     

    Amendment
      of Section
      6(d)(ii).
      Section
      6(d)(ii) of the Agreement is modified by deleting the words “on the day” in the
      second line thereof and substituting therefor “on the day that is three Local
      Business Days after the day”. Section
      6(d)(ii)
      is
      further modified by deleting the words “two Local Business Days” in the fourth
      line thereof and substituting therefor “three Local Business Days.”

     

    Amendment
      of Definition of Reference Market-Makers. The
      definition of “Reference Market-Makers” in Section
      14 is
      hereby
      amended by adding in clause (a) after the word “credit” and before the word
“and” the words “or to enter into transactions similar in nature to the
      Transactions.”

     

    Consent
      to Recording. Each
      party consents to the recording of the telephone conversations of trading and
      marketing personnel of the parties and their Affiliates in connection with
      this
      Confirmation. To the extent that one party records telephone conversations
      (the
“Recording Party”) and the other party does not (the “Non-Recording Party”), the
      Recording Party shall in the event of any dispute, make a complete and unedited
      copy of such party’s tape of the entire day’s conversations with the
      Non-Recording Party’s personnel available to the Non-Recording Party. The
      Recording Party’s tapes may be used by either party in any forum in which a
      dispute is sought to be resolved and the Recording Party will retain tapes
      for a
      consistent period of time in accordance with the Recording Party’s policy unless
      one party notifies the other that a particular transaction is under review
      and
      warrants further retention.

     

    Disclosure.
      Each
      party hereby acknowledges and agrees that MLI has authorized Counterparty to
      disclose this Transaction and any related hedging transaction between the
      parties if and to the extent that Counterparty reasonably determines (after
      consultation with MLI) that such disclosure is required by law or by the rules
      of the New York Stock Exchange or any securities exchange. Notwithstanding
      the
      foregoing, effective from the date of commencement of discussions concerning
      the
      Transaction, Counterparty and each of its employees, representatives, or other
      agents may disclose to any and all persons, without limitation of any kind,
      the
      tax treatment and tax structure of the Transaction and all materials of any
      kind
      (including opinions or other tax analyses) that are provided to Counterparty
      relating to such tax treatment and tax structure.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    Execution
      Copy

     

    Severability.
      If
      any
      term, provision, covenant or condition of this Confirmation, or the application
      thereof to any party or circumstance, shall be held to be invalid or
      unenforceable in whole or in part for any reason, the remaining terms,
      provisions, covenants, and conditions hereof shall continue in full force and
      effect as if this Confirmation had been executed with the invalid or
      unenforceable provision eliminated, so long as this Confirmation as so modified
      continues to express, without material change, the original intentions of the
      parties as to the subject matter of this Confirmation and the deletion of such
      portion of this Confirmation will not substantially impair the respective
      benefits or expectations of parties to this Agreement; provided,
      however, that
      this
      severability provision shall not be applicable if any provision of Section
      2,
      5,
      6
      or
13
      of the
      Agreement (or any definition or provision in Section
      14 to
      the
      extent that it relates to, or is used in or in connection with any such Section)
      shall be so held to be invalid or unenforceable.

     

    Affected
      Parties. For
      purposes of Section
      6(e) of
      the
      Agreement, each party shall be deemed to be an Affected Party in connection
      with
      Illegality and any Tax Event.

     

     [Signatures
      follow on separate page]

    

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    Execution
      Copy

     

    Please
      confirm that the foregoing correctly sets forth the terms of our agreement
      by
      executing the copy of this Confirmation enclosed for that purpose and returning
      it to us.

     

    Very
      truly yours,

     

    MERRILL
      LYNCH INTERNATIONAL

    

    By:
      /s/ Rhonda
      Garguilo                                        

    Name:
      Rhonda Garguilo

    Title:
      Authorized Signatory

    Confirmed
      as of the date first above written: 

     

    ICONIX
      BRAND GROUP, INC.

     

     

    By:
      /s/ Neil
      Cole                                                        

    Name:
      Neil Cole

    Title:
      Chairman, President and CEO

     

     

    Acknowledged
      and agreed as to matters to the Agent:

     

    MERRILL
      LYNCH, PIERCE, FENNER & SMITH INCORPORATED

     

    Solely
      in
      its capacity as Agent hereunder

     

     

    By:
      /s/ Brian
      Carroll                                                 

    Name:
      Brian Carroll

    Title:
      Authorized Signatory

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Execution
      Copy

     

    EXHIBIT
      A

     

    GUARANTEE
      OF MERRILL LYNCH & CO., INC.

     

    FOR
      VALUE
      RECEIVED, receipt of which is hereby acknowledged, MERRILL LYNCH & CO.,
      INC., a corporation duly organized and existing under the laws of the State
      of
      Delaware (“ML & Co.”), hereby unconditionally guarantees to Iconix Brand
      Group, Inc. (the “Company”), the due and punctual payment of any and all amounts
      payable by Merrill Lynch International, a company organized under the laws
      of
      England and Wales (“ML”), under the terms of the Confirmation of OTC Warrant
      Transaction between the Company and ML (ML as Buyer), as amended and restated
      as
      of June 18, 2007 (the
      “Confirmation”), including, in case of default, interest on any amount due, when
      and as the same shall become due and payable, whether on the scheduled payment
      dates, at maturity, upon declaration of termination or otherwise, according
      to
      the terms thereof. In case of the failure of ML punctually to make any such
      payment, ML & Co. hereby agrees to make such payment, or cause such payment
      to be made, promptly upon demand made by the Company to ML & Co.; provided,
      however that delay by the Company in giving such demand shall in no event affect
      ML & Co.’s obligations under this Guarantee. This Guarantee shall remain in
      full force and effect or shall be reinstated (as the case may be) if at any
      time
      any payment guaranteed hereunder, in whole or in part, is rescinded or must
      otherwise be returned by the Company upon the insolvency, bankruptcy or
      reorganization of ML or otherwise, all as though such payment had not been
      made.

     

    ML
&
      Co. hereby agrees that its obligations hereunder shall be unconditional,
      irrespective of the validity, regularity or enforceability of the Confirmation;
      the absence of any action to enforce the same; any waiver or consent by the
      Company concerning any provisions thereof; the rendering of any judgment against
      ML or any action to enforce the same; or any other circumstances that might
      otherwise constitute a legal or equitable discharge of a guarantor or a defense
      of a guarantor. ML covenants that this guarantee will not be discharged except
      by complete payment of the amounts payable under the Confirmation. This
      Guarantee shall continue to be effective if ML merges or consolidates with
      or
      into another entity, loses its separate legal identity or ceases to
      exist.

     

    ML
&
      Co. hereby waives diligence; presentment; protest; notice of protest,
      acceleration, and dishonor; filing of claims with a court in the event of
      insolvency or bankruptcy of ML; all demands whatsoever, except as noted in
      the
      first paragraph hereof; and any right to require a proceeding first against
      ML.

     

    ML
&
      Co. hereby certifies and warrants that this Guarantee constitutes the valid
      obligation of ML & Co. and complies with all applicable laws.

     

    This
      Guarantee shall be governed by, and construed in accordance with, the laws
      of
      the State of New York.

     

    This
      Guarantee may be terminated at any time by notice by ML & Co. to the Company
      given in accordance with the notice provisions of the Confirmation, effective
      upon receipt of such notice by the Company or such later date as may be
      specified in such notice; provided, however, that this Guarantee shall continue
      in full force and effect with respect to any obligation of ML under the
      Confirmation.

     

    This
      Guarantee becomes effective concurrent with the effectiveness of the
      Confirmation, according to its terms.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Execution
      Copy

     

    IN
      WITNESS WHEREOF, ML & Co. has caused this Guarantee to be executed in its
      corporate name by its duly authorized representative.

     

     

    MERRILL
      LYNCH & CO., INC.

    

     

    By:_________________________

    Name:

    Title:

    Date:Execution
        Copy

    

     

     

     

    Confirmation
      of OTC Warrant Transaction

     

    
      	Date:	 	June 19, 2007
	
            	 	
            
	To:	 	Iconix Brand Group, Inc.
              (“Counterparty”)
	
            	 	
              Attention:
                Chief Executive Officer 

              Telephone
                No.: 212
                730 0030

              Facsimile
                No.:  212
                391 0127

            
	
            	 	
            
	From:	 	Lehman Brothers Inc., acting as Agent

              Lehman
                Brothers OTC Derivatives Inc., acting as Principal (“Lehman
                Brothers”)

              Attention:
                Andrew Yare - Transaction Management Group

              Telephone:
                (212) 526-9986

              Facsimile:
                (646) 885-9546

            

    

     

    Global
      Deal ID: 311 7727 

    
      

    

    Dear
      Sir
      / Madam:

     

    The
      purpose of this letter agreement (this “Confirmation”)
      is to
      amend and restate the terms and conditions of the above-referenced transaction
      entered into among Counterparty, Lehman
      Brothers and Lehman Brothers Inc., (the “Agent”
or
      “LBI”)
      on
      the
      Trade Date specified below (the “Transaction”).
       This
      Confirmation amends, restates and supercedes in its entirety the Confirmation
      in
      respect of the Transaction dated as of June 14, 2007. This
      Confirmation constitutes a “Confirmation” as referred to in the Agreement
      specified below. Lehman
      Brothers OTC Derivatives Inc. is not a member of the Securities Investor
      Protection Corporation.

     

    The
      definitions and provisions contained in the 2000 ISDA Definitions (the
“Swap
      Definitions”)
      and the
      2002 ISDA Equity Derivatives Definitions (the “Equity
      Definitions” and,
      together with the Swap Definitions, the “Definitions”),
      in
      each
      case as published by the International Swaps and Derivatives Association, Inc.,
      are
      incorporated into this Confirmation. In the event of any inconsistency between
      the Swap Definitions and the Equity Definitions, the Equity Definitions will
      govern, and in the event of any inconsistency between the Definitions and this
      Confirmation, this Confirmation will govern. References herein to a
“Transaction” shall be deemed to be references to a “Share Option Transaction”
for the purposes of the Equity Definitions and to a “Swap Transaction” for the
      purposes of the Swap Definitions. For purposes of this Transaction, “Warrant
      Style”, “Warrant Type”, “Number of Warrants” and “Warrant Entitlement” (each as
      defined below) shall be used herein as if such terms were referred to as “Option
      Style”, “Option Type”, “Number of Options” and “Option Entitlement”,
      respectively, in the Definitions.

     

    This
      Confirmation evidences a complete binding agreement between you and us as to
      the
      terms of the Transaction to which this Confirmation relates. This Confirmation
      (notwithstanding anything to the contrary herein), shall be subject to, and
      form
      part of, an agreement in the 1992 form of the ISDA Master Agreement
      (Multicurrency Cross Border) (the “Master
      Agreement” or
      “Agreement”)
      as if we
      had executed an agreement in such form (but without any Schedule and with
      elections specified in the “ISDA Master Agreement” Section of this Confirmation)
      on the Trade Date. In the event of any inconsistency between the provisions
      of
      that Agreement and this Confirmation, this Confirmation will prevail for the
      purpose of this Transaction. The parties hereby agree that the Transaction
      evidenced by this Confirmation shall be the only Transaction subject to and
      governed by the Agreement.

     

     

    Global
      Deal ID: 311 7727 

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    Execution
      Copy

     

    The
      terms
      of the particular Transaction to which this Confirmation relates are as
      follows:

     

    General
      Terms: 

     

    
      	
              Trade
                Date:

            	 	
              June
                14, 2007

            
	 	 	 
	
              Effective
                Date:

            	 	
              June
                20, 2007 subject to cancellation of the OTC Warrant Transaction prior
                to
                5:00 p.m. (New York City time) on such date by the Counterparty.
                In
                the event of
                such cancellation, any payments previously made hereunder, including
                the
                Premium, shall be returned to the person making such payment.
                In
                addition, Counterparty shall reimburse Lehman Brothers for any costs
                or
                expenses (including market losses) relating to the unwinding of its
                hedging activities in connection with the Transaction (including
                any loss
                or cost incurred as a result of its terminating, liquidating, obtaining
                or
                reestablishing any hedge or related trading position).

            
	 	 	 
	
              Warrant
                Style:

            	 	
              The
                Warrants shall be exercisable as set forth under “Procedures for Exercise”
                below. 

            
	 	 	 
	
              Warrant
                Type:

            	 	
              Call

            
	 	 	 
	
              Seller:

            	 	
              Counterparty

            
	 	 	 
	
              Buyer:

            	 	
              Lehman
                Brothers

            
	 	 	 
	
              Shares:

            	 	
              Shares
                of common stock, $0.001 par
                value, of Counterparty (Security Symbol: “ICON”).

            
	 	 	 
	
              Number
                of Warrants:

            	 	
              4,172,718

            
	 	 	 
	
              Daily
                Number of Warrants:

            	 	
              For
                any day, the unexercised Number of Warrants on such day divided
                by
                the remaining number of Expiration Dates (including such day) and
                rounded
                down to the nearest whole number, with the balance of the Number
                of
                Warrants exercised on the final Expiration Date.

            
	 	 	 
	
              Warrant
                Entitlement:

            	 	
              One
                (1) Share per Warrant

            
	 	 	 
	
              Strike
                Price:

            	 	
              $42.40

            
	 	 	 
	
              Premium:

            	 	
              $14,996,000.00

            
	 	 	 
	
              Premium
                Payment Date:

            	 	
              The
                Effective Date; provided no cancellation of the Transaction has occurred
                prior
                to 5:00 p.m. (New York City time) on such date by the
                Counterparty.

            
	 	 	 
	
              Exchange:

            	 	
              NASDAQ
                Global Market

            

    

     

     

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              Related
                Exchange(s):

            	 	
              All
                Exchanges

            
	 	 	 
	
              Full
                Exchange Business Day:

            	 	
              A
                Scheduled Trading Day that has a scheduled closing time for its regular
                trading session at 4:00 p.m. (New York City time) or the then standard
                closing time for regular trading on the Exchange and is not a Disrupted
                Day.

            
	 	 	 
	
              Procedures
                for Exercise:

            	 	 
	 	 	 
	
              Expiration
                Time:

            	 	
              11:59
                p.m. (New York City time).

            
	 	 	 
	
              Expiration
                Dates:

            	 	
              The
                75 consecutive Full Exchange Business Days beginning on and including
                September
                28, 2012 each shall be the Expiration Date for a number of Warrants
                equal
                to the Daily Number of Warrants on such date.

            
	 	 	 
	
              Exercise
                Dates:

            	 	
              Each
                Expiration Date shall be an Exercise Date for a number of Warrants
                equal
                to the Daily Number of Warrants on such date.

            
	 	 	 
	
              Automatic
                Exercise:

            	 	
              Applicable;
                provided that Section 3.4(a) of the Equity Definitions shall apply
                to Cash
                Settlement and Net Physical Settlement; and provided further that,
                unless
                all Warrants have been previously exercised hereunder, a number of
                Warrants for each Expiration Date equal to the Daily Number of Warrants
                for such Expiration Date shall be deemed to be automatically
                exercised.

            
	 	 	 
	
              Counterparty’s
                Telephone Number and Telex and/or Facsimile Number and Contact Details
                for
                purpose of Giving Notice:

            	 	
              Address: 1450
                Broadway 

              New
                York, New York 10018

               

              Attention: Chief
                Executive Officer 

              Facsimile
                No.: 212-391-0127 

              Telephone
                No.: 212-730-0030

            
	 	 	 
	
              Valuation:

            	 	 
	 	 	 
	
              Valuation
                Dates:

            	 	
              Each
                Exercise Date

            
	 	 	 
	
              Settlement
                Terms:

            	 	 
	 	 	 
	
              Cash
                Settlement:

            	 	
              Applicable;
                provided that it shall be a condition of Counterparty’s right to elect
                Cash Settlement that Counterparty delivers to Buyer on the date of
                the
                Cash Settlement election a representation signed by Counterparty
                that
                Counterparty has publicly disclosed all material information necessary
                for
                Counterparty to be able to purchase or sell Shares in compliance
                with
                applicable federal securities laws. If Counterparty elects to settle
                the
                Transaction by Cash Settlement, Counterparty
                represents and agrees that:

               

              (i)
                Counterparty is not, on the date of the Cash Settlement election,
                and will
                not be, on any day during the period from and including the first
                Expiration Date to and including the final Expiration Date, engaged
                in a
                distribution, as such term is used in Regulation M under the Securities
                Exchange Act of 1934, as amended (the “Exchange
                Act”); and

            

    

     

     

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              (ii)
                during the period from and including the first Expiration Date to
                and
                including the final Expiration Date, without the prior written consent
                of
                Lehman Brothers, the Counterparty shall not, and shall cause its
                affiliates and affiliated purchasers (each as defined in Rule 10b-18
                under the Exchange Act) not to, directly or indirectly (including,
                without
                limitation, by means of a derivative instrument) purchase, offer
                to
                purchase, place any bid or limit order that would effect a purchase
                of, or
                commence any tender offer relating to, any Shares (or equivalent
                interest,
                including a unit of beneficial interest in a trust or limited partnership
                or a depository share) or any security convertible into or exchangeable
                for the Shares.

            
	 	 	 
	
              Settlement
                Currency:

            	 	
              USD

            
	 	 	 
	
              Settlement
                Price:

            	 	
              For
                each Valuation Date, the Volume Weighted Average Price of the Shares
                (“VWAP”) calculated from 9:45 a.m. to 3:45 p.m., as observed under the
                heading Bloomberg “VWAP” on Bloomberg page ICON <equity> AQR SEC (or
                any successor thereto) (or if such volume-weighted average price
                is
                unavailable, the market value of one Share on such Valuation Date,
                as
                determined by the Calculation Agent); provided that if the scheduled
                weekday closing time of the Exchange for any Valuation Date is later
                than
                4:00 p.m. (without regard to after hours or any other trading outside
                of
                the regular trading session hours) the VWAP shall be calculated for
                such
                Valuation Date from 9:45 a.m. until 15 minutes prior to such later
                closing
                time of the Exchange.

               

              Section
                6.3(a) of the Equity Definitions is hereby amended by replacing clause
                (ii) in its entirety with “(ii) an Exchange Disruption, or” and inserting
                immediately following clause (iii) the phrase “; in each case that the
                Calculation Agent determines is material.”

            
	 	 	 
	
              Cash
                Settlement Payment Date:

            	 	
              With
                respect to each Valuation Date, three (3) Currency Business Days
                after the
                final
                Valuation Date.

            
	 	 	 
	
              Settlement
                Method Election:

            	 	
              Applicable
                with respect to Cash Settlement or Net Physical Settlement
                only.

            
	 	 	 
	
              Electing
                Party:

            	 	
              Counterparty

            
	 	 	 
	
              Settlement
                Method Election Date:

            	 	
              Ten
                (10) Business Days prior to the first Expiration Date

            
	 	 	 
	
              Default
                Settlement Method:

            	 	
              Net
                Physical Settlement.

            
	 	 	 
	
              Net
                Physical Settlement:

            	 	
              In
                the event that the Counterparty elects, or is deemed to elect, to
                settle
                this Transaction by Net Physical Settlement, subject to “Conditions of Net
                Physical Settlement” below, Counterparty shall deliver to Lehman Brothers
                on the Settlement Date a number of Shares (the “Delivered
                Shares”) equal
                to the Share Delivery Quantity, provided that in the event that the
                number
                of Shares calculated comprises any fractional Share, only whole Shares
                shall be delivered and an amount in cash equal to the value of such
                fractional share shall be payable by the Counterparty to Lehman Brothers
                in lieu of such fractional Share.

            

    

     

     

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              Share
                Delivery Quantity:

            	 	
              For
                each Exercise Date, a number of Shares, as calculated by the Calculation
                Agent, equal to the Net Physical Settlement Amount for such Exercise
                Date
                divided by the Settlement
                Price
                on
                the Valuation Date in respect of such Settlement Date
                plus an amount in cash in lieu of any fractional shares (based on
                the
                applicable
                Settlement
                Price).

            
	 	 	 
	
              Net
                Physical Settlement Amount:

            	 	
              For
                any Exercise Date, an amount equal to the product of (i) the Number
                of
                Warrants being exercised on the relevant Exercise Date, (ii) the
                Strike
                Price Differential for such Exercise Date and (iii) the Warrant
                Entitlement.

            
	 	 	 
	
              Strike
                Price Differential:

            	 	
              For
                any Valuation Date, (i) if the Settlement Price is greater than the
                Strike
                Price, an amount equal to the excess of such Settlement Price over
                the
                Strike Price for such Valuation Date or (ii) if such Settlement Price
                is
                less than or equal to the Strike Price, zero.

            
	 	 	 
	
              Settlement
                Date:

            	 	
              Settlement
                with respect to each Exercise Date shall occur on the third (3rd)
                Full
                Exchange Business Day following the final Valuation Date, provided
                that
                Lehman Brothers shall have the right to request by prior written
                notice to
                Counterparty a Settlement Date with respect to any Exercise Date
                and the
                related Share Delivery Quantity that is three (3) Full Exchange Business
                Days following such Exercise Date. Such request shall not unreasonably
                be
                denied.

            
	 	 	 
	
              Conditions
                to Net Physical Settlement:

            	 	
              If,
                in connection with or six months following delivery of Shares hereunder,
                Lehman Brothers notifies the Counterparty that Lehman Brothers has
                reasonably determined after advice from counsel that there is a considered
                risk that such Shares are subject to restrictions on transfer in
                the hands
                of Lehman Brothers pursuant to the rules and regulations promulgated
                under
                the Securities Act of 1933, as amended (the “Securities
                Act”), then
                Counterparty shall either (i) deliver Shares that are covered by
                an
                effective registration statement of Counterparty for immediate resale
                by
                Lehman Brothers or (ii) agree to deliver additional Shares so that
                the
                value of such Shares as determined by the Calculation Agent to reflect
                an
                appropriate liquidity discount, equals the value of the number of
                Shares
                that would otherwise be deliverable if such Shares were freely tradable
                upon receipt by Lehman Brothers.

               

              (A)
                If Counterparty elects to deliver Shares as described in above clause
                (i),
                then promptly following such notification from Lehman
                Brothers

               

              (a) Counterparty
                shall afford Lehman Brothers a reasonable opportunity to conduct
                a
                due diligence investigation with respect to Counterparty that is
                customary
                in scope for underwritten offerings of equity securities that yields
                a
                result reasonably satisfactory to Lehman Brothers;

               

              (b) Counterparty
                shall as soon as practicable make available to Lehman Brothers an
                effective registration statement for immediate resale (the “Registration
                Statement”)
                in
                form and content reasonably satisfactory to Lehman Brothers and
                Counterparty and filed pursuant to Rule 415 under the Securities
                Act, and
                such prospectuses as Lehman Brothers may reasonably request to comply
                with
                the applicable prospectus delivery requirements (the “Prospectus”)
                for the resale by Lehman Brothers of such number of Shares as Lehman
                Brothers shall reasonably specify in accordance with this paragraph,
                such
                Registration Statement to be effective and Prospectus to be current
                until
                the earliest of the date on which (1) all Delivered Shares have been
                sold
                by Lehman Brothers, (2) Lehman Brothers has advised Counterparty
                that it
                no longer requires that such Registration Statement be effective,
                (3) all
                remaining Delivered Shares could be sold by Lehman Brothers without
                registration pursuant to Rule 144 promulgated under the Securities
                Act
                (the “Registration
                Period”)
                or
                (4) Counterparty has provided a legal opinion in form and substance
                satisfactory to Lehman Brothers (with customary assumptions and
                exceptions) that the Shares issuable upon exercise of these Warrants
                will
                be freely tradable under the Securities Act upon delivery to Lehman
                Brothers and not subject to any legend restricting transferability.
                It is
                understood that the Registration Statement and Prospectus will cover
                a
                number of Shares equal to the aggregate number of Shares (if any)
                reasonably estimated by Lehman Brothers to be potentially deliverable
                by
                Counterparty in connection with Net Physical Settlement hereunder
                (not to
                exceed the Maximum Deliverable Share Amount) and shall be subject
                to the
                same suspension of sales during “blackout dates” as provided in the
                following paragraph; and

            

    

     

     

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              (c) Counterparty
                will enter into a registration rights agreement with Lehman Brothers
                in
                form and substance reasonably acceptable to Lehman Brothers and
                Counterparty, which agreement will contain among other things, customary
                representations and warranties and indemnification, restrictions
                on sales
                during “blackout dates” as provided for in the registration rights
                agreement (the “Registration
                Rights Agreement”)
                entered into by Counterparty on or about the date hereof,
                provide for delivery of comfort
                letters and opinions
                of counsel and other rights relating to the registration of a number
                of
                Shares equal to the number of Delivered Shares and other Shares
                deliverable hereunder up to the Maximum Deliverable Share
                Amount.

               

              (d) Counterparty
                shall promptly pay to Lehman Brothers a $0.04 per Share fee with
                all
                Shares delivered in connection with Net Physical Settlement pursuant
                to a
                Registration Statement.

               

              (B)
                If Counterparty elects to deliver Shares as described in above clause
                (ii), then promptly following such notification from Lehman
                Brothers

               

              (a) Counterparty
                shall afford Lehman Brothers and any potential institutional purchaser
                of
                any Shares identified by Lehman Brothers a reasonable opportunity
                to
                conduct a due diligence investigation with respect to Counterparty
                that is
                customary in scope for private placements of equity securities subject
                to
                execution of any customary confidentiality
                agreements;

            

    

     

     

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              (b) Counterparty
                shall enter into an agreement (a “Private
                Placement Agreement”)
                with Lehman Brothers on commercially reasonable mutually acceptable
                terms
                in connection with the private placement of such Shares by Counterparty
                to
                Lehman Brothers or an affiliate and the private resale of such shares
                by
                Lehman Brothers or such affiliate, substantially similar to private
                placement purchase agreements customary for private placements of
                equity
                securities, in form and substance commercially reasonably satisfactory
                to
                Lehman Brothers and Counterparty, which Private Placement Agreement
                shall
                include provisions relating to the indemnification of, and contribution
                in
                connection with the liability of, Lehman Brothers and its affiliates,
                shall provide for the payment by Counterparty of all expenses
                in connection with such resale, including all reasonable and documented
                fees and expenses of counsel for Lehman Brothers, shall
                contain representations, warranties and agreements of Counterparty
                reasonably necessary or advisable to establish and maintain the
                availability of an exemption from the registration requirements of
                the
                Securities Act for such resales,
                and shall use reasonable best efforts to provide for the delivery
                of
                accountants’ “comfort letters” to Lehman Brothers or such affiliate with
                respect to the financial statements and certain financial information
                contained in or incorporated by reference into the offering memorandum
                prepared for the resale of such Shares;

               

              (c) Lehman
                Brothers shall sell the Delivered Shares in a commercially reasonable
                manner until the amount received by Lehman Brothers for the sale
                of the
                Shares (the “Proceeds
                 Amount”)
                is
                equal to the Net Physical Settlement Amount. Any remaining Delivered
                Shares shall be returned to Counterparty. If the Proceeds Amount
                is less
                than the Net Physical Settlement Amount, Counterparty shall promptly
                deliver upon notice from Lehman Brothers additional Shares to Lehman
                Brothers until the dollar amount from the sale of such Shares by
                Lehman
                Brothers equals the difference between the Net Physical Settlement
                Amount
                and the Proceeds Amount. In no event shall Counterparty be required
                to
                deliver to Lehman Brothers a number of Shares greater than the Maximum
                Deliverable Share Amount.

               

              (C) Notwithstanding
                the foregoing: (I) if Counterparty has elected to deliver Shares
                as
                described in clause (i) above and either (a) Counterparty does not
                provide
                for the sale of the Shares under the Registration Statement as provided
                in
                the Registration Rights Agreement or (b) some Shares cannot be registered
                under the Registration Statement due to Rule 415(a)(4)
                under the Securities Act, then the provisions of sub-paragraph (B)
                shall
                apply to the extent Counterparty has not satisfied its obligations
                hereunder by the delivery of Shares pursuant to sub-paragraph (A).
                (II) If
                sub-paragraph (B) is applicable and Counterparty fails to satisfy
                its
                obligations under such sub-paragraph (B), then Counterparty may deliver
                unregistered Shares of equivalent value to the Net Physical Settlement
                Amount (or, if applicable, the unsatisfied portion thereof). The
                value of
                any unregistered Shares so delivered shall be discounted to reflect
                an
                appropriate liquidity discount (determined by Lehman Brothers
                in
                a commercially reasonable manner, taking into account Lehman Brothers’
                policies and determinations with respect to any transfer restrictions
                that
                Lehman Brothers deems it advisable to observe in connection with
                sales of
                such Shares). (III) If some or all of the Delivered Shares cannot
                be used
                to close out stock loans in the shares of Counterparty entered into
                to
                establish or maintain short positions by Lehman Brothers in connection
                with this Transaction without a prospectus being required by applicable
                law to be delivered to such lender, then the value of any such Delivered
                Shares shall reflect the cost (determined by
                the Calculation Agent in good faith and
                in
                a commercially reasonable manner and taking into account the policies
                and
                determinations of Lehman Brothers with respect to compliance with
                applicable legal and regulatory requirements) to Lehman Brothers
                of
                trading Shares in order to close out its hedge position if any, in
                all
                cases for purposes of calculating the Delivered Shares. In no event
                shall
                Counterparty be required to top up the delivery in
                cash.

            

    

     

     

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              Limitations
                on Net Physical Settlement by Counterparty:

            	 	
              Notwithstanding
                anything herein or in the Agreement to the contrary, the number
                of Shares that may be delivered at settlement by Counterparty shall
                not
                exceed 6,259,076 at any time (“Maximum
                Deliverable Share Amount”),
                as
                adjusted by Calculation
                Agent
                to
                account for any subdivision, stock-split, stock
                combination, reclassification
                or similar dilutive or
                anti-dilutive event
                with respect to the Shares.

              Counterparty
                represents and warrants that the number of Available Shares as of
                the
                Trade Date is greater than the Maximum Deliverable Share Amount.
                Counterparty covenants and agrees that (i) Counterparty shall not
                take any
                action of corporate governance or otherwise to reduce the number
                of
                Available Shares below the Maximum Deliverable Share and (ii) Counterparty
                shall use its reasonable efforts to cause the number of Available
                Shares
                at all times to be greater than the Maximum Deliverable Share
                Amount.

               

              For
                this purpose, “Available
                Shares” means
                the number of Shares Counterparty currently has authorized (but not
                issued
                and outstanding) less the maximum number of Shares that may be required
                to
                be issued by Counterparty in connection with stock options, convertibles,
                and other commitments of Counterparty that may require the issuance
                or
                delivery of Shares in connection therewith.

            
	 	 	 
	
              Dividends:

            	 	 
	 	 	 
	
              Extraordinary
                Dividends

            	 	
              Any
                and all dividends declared by the Issuer for which the ex-dividend
                date
                occurs during the period from, and including, the Trade Date to,
                and
                including, the date on which Counterparty has fully performed its
                obligations to deliver Shares hereunder.

            
	 	 	 
	
              Adjustments:

            	 	 
	 	 	 
	
              Method
                of Adjustment:

            	 	
              Calculation
                Agent Adjustment

            
	 	 	 
	
              Extraordinary
                Events:

            	 	 
	
              Consequences
                of Merger Events:

            	 	
              (a)
                Share-for-Share: Cancellation
                and Payment (Calculation
                Agent Determination)

            

    

     

     

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              (b)
                Share-for-Other: Cancellation
                and Payment (Calculation
                Agent Determination)

               

              (c)
                Share-for-Combined: Cancellation
                and Payment (Calculation
                Agent Determination)

            
	 	 	 
	
              Tender
                Offer:

            	 	
              Applicable

            
	 	 	 
	
              Consequences
                of Tender Offers:

            	 	
              (a)
                Share-for-Share: Modified
                Calculation
                Agent Adjustment

               

              (b)
                Share-for-Other: Cancellation
                and Payment (Calculation
                Agent Determination)

               

              (b)
                Share-for-Combined: Component
                Adjustment (Calculation
                Agent Determination)

               

              With
                respect to any Extraordinary Events hereunder, upon the occurrence
                of
                Cancellation and Payment in whole or in part, the parties agree that
                the
                amount to be paid, in accordance with the Equity Definitions, shall
                constitute a Transaction Early Termination Amount, subject to satisfaction
                by the payment or delivery of Shares or cash as set forth in the
                Early
                Termination section below.

            
	 	 	 
	
              Nationalization,
                Insolvency or Delisting:

            	 	
              Cancellation
                and Payment (Calculation Agent Determination) (subject to satisfaction
                by
                payment or delivery of Shares or cash as set forth in “Early
                Termination”
                below). In addition to the provisions of Section 12.6(a)(iii) of
                the
                Equity Definitions, it will also constitute a Delisting if the Exchange
                is
                located in the United States and the Shares are not immediately re-listed,
                re-traded or re-quoted on any of the New York Stock Exchange, the
                American
                Stock Exchange,
                the NASDAQ Global Market or
                the
                NASDAQ Global Select Market
                (or their respective successors); if the Shares are immediately re-listed,
                re-traded or re-quoted on any such exchange or quotation system,
                such
                exchange or quotation system shall thereafter be deemed to be the
                Exchange.

            
	 	 	 
	
              Determining
                Party:

            	 	
              Lehman
                Brothers, acting in good faith and in a commercially reasonable
                manner

            
	 	 	 
	
              Additional
                Disruption Events:

            	 	 
	 	 	 
	
              Change
                in Law:

            	 	
              Applicable

            
	 	 	 
	
              Failure
                to Deliver:

            	 	
              Not
                Applicable

            
	 	 	 
	
              Insolvency
                Filing:

            	 	
              Applicable

            
	 	 	 
	
              Hedging
                Disruption Event:

            	 	
              Applicable

            
	 	 	 
	
              Increased
                Cost of Hedging:

            	 	
              Not
                Applicable

            
	 	 	 
	
              Loss
                of Stock Borrow:

            	 	
              Applicable.
                Section 12.9(b)(iv) of the Equity Definitions is hereby amended by
                deleting the text from and including “(A)” to and including “(B)” and by
                deleting the words “in each case”.

            

    

     

     

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              Maximum
                Stock Loan Rate:

            	 	
              0.60
                %

            
	 	 	 
	
              Increased
                Cost of Stock Borrow:

            	 	
              Applicable;
                provided that it shall be a condition to Counterparty’s right to make the
                election described in clause (C) of Section 12.9(b)(v) of the Equity
                Definitions that on the date of such election, none of Counterparty,
                its
                directors, executive officers, or any person controlling, or exercising
                influence over, its decision to make such election is in possession
                of any
                material non-public information with respect to Counterparty or the
                Shares; and provided further that, if Counterparty timely makes the
                election described in clause (A) or (B) of Section 12.9(b)(v) of
                the
                Equity Definitions, Counterparty shall thereafter remain entitled,
                subject
                to the foregoing condition, to terminate the Transaction pursuant
                to
                Section 12.9(b)(v)(C) of the Equity Definitions upon ten Scheduled
                Trading
                Days’ notice to Lehman Brothers. Section 12.9(b)(v) of the Equity
                Definitions is hereby amended by deleting the text from and including
                “(X)” to and including “(Y)”.

            
	 	 	 
	
              Initial
                Stock Loan Rate:

            	 	
              0.25%

            
	 	 	 
	
              Hedging
                Party:

            	 	
              Lehman
                Brothers

            
	 	 	 
	
              Determining
                Party:

            	 	
              Lehman
                Brothers

            
	 	 	 
	
              Non-Reliance:

            	 	
              Applicable

            
	 	 	 
	
              Agreements
                and Acknowledgments Regarding Hedging Activities:

            	 	
              Applicable

            
	 	 	 
	
              Additional
                Acknowledgments:

            	 	
              Applicable

            
	 	 	 
	
              Other
                Provisions:

            	 	 
	 	 	 
	
              Additional
                Agreements:

            	 	
              If
                Counterparty would be obligated to pay cash to Lehman Brothers pursuant
                to
                the terms of this Agreement for any reason without having had the
                right
                (other than pursuant to this paragraph) to elect to deliver Shares
                in
                satisfaction of such payment obligation, then Counterparty may elect
                to
                deliver to Lehman Brothers a number of Shares (whether registered
                or
                unregistered) having a cash value equal to the amount of such payment
                obligation.
                Such
                number of Shares to be delivered shall
                be
                the number of Shares,
                determined by the Calculation Agent,
                sufficient for Lehman Brothers
                to
                realize the cash equivalent of such payment obligation
                from proceeds of the sale of such number of Shares over a reasonable
                period of time
                taking into account any applicable discount (determined in a commercially
                reasonable manner) to reflect any restrictions on transfer as well
                as the
                market value of the Shares). Settlement relating to any delivery
                of Shares
                pursuant to this paragraph shall occur within a reasonable period
                of time.
                The number of Shares delivered pursuant to this paragraph shall not
                exceed
                the Maximum Deliverable Share Amount and shall be subject to the
                provisions under “Early Termination” hereof regarding Proceeds Amount and
                the provisions set forth in subsection (c) under “Additional Agreements,
                Representations and Covenants of Counterparty, Etc.”
                below.

            

    

     

     

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              Early
                Termination:

            	 	
              Notwithstanding
                any provision to the contrary, upon the designation of an Early
                Termination Date or the occurrence of Cancellation and Payment in
                whole or
                in part hereunder, Counterparty’s payment obligation in respect of this
                Transaction (which shall, in the case of an Early Termination Date
                be
                determined in accordance with Second Method and Loss
                (which shall be determined using commercially reasonable procedures
                in
                order to produce a commercially reasonable result)) (the “Transaction
                Early Termination Amount”)
                may, at the option of Counterparty, be satisfied by the delivery
                of a
                number of Shares equal to the Transaction Early Termination Amount
                divided
                by the Termination Price (“Early
                Termination Stock Settlement”);
                provided, however, that Counterparty must notify Lehman Brothers
                of its
                election of Early Termination Stock Settlement by the close of business
                on
                the day that is two Exchange Business Days following the day that
                the
                notice designating the Early Termination Date, or notice that an
                Extraordinary Event has resulted in the cancellation or termination
                of the
                Transaction in whole or in part, is effective. “Termination
                Price”
                means the market
                value per Share
                on
                the Early Termination Date, as determined by the Calculation Agent
                in a
                commercially reasonable manner taking into account any applicable
                discount
                to reflect any restrictions on transfer.

               

              A
                number of Shares calculated as being due in respect of any Early
                Termination Stock Settlement will be deliverable on the third Clearance
                System Business Day following the date that notice specifying the
                number
                of Shares deliverable is effective; provided
                that,
                if Counterparty is delivering Shares as a result of a Merger Event,
                the
                Settlement Date for such delivery will be immediately prior to the
                effective time of the Merger Event and the Shares will be deemed
                delivered
                at such time such that Lehman Brothers will be a holder of the Shares
                prior to such effective time. Section 6(d)(i) of the Agreement is
                hereby
                amended by adding the following words after the word “paid” in the fifth
                line thereof: “or any delivery is to be made, as applicable.”

               

              On
                or prior to the Early Termination Date or date on which notice that
                an
                Extraordinary Event has resulted in the cancellation or termination
                of the
                Transaction in whole or in part is effective, as applicable, if Early
                Termination Stock Settlement is elected and if so requested by Lehman
                Brothers upon advice of counsel, Counterparty shall (subject to its
                right
                to make the election described in the immediately succeeding paragraph)
                enter into a registration rights agreement with Lehman Brothers in
                form
                and substance reasonably acceptable to Lehman Brothers and Counterparty
                which agreement will contain among other things, customary representations
                and warranties and indemnification, restrictions on sales during
“blackout
                dates” as provided for in the Registration Rights Agreement and shall
                satisfy the conditions contained therein and Counterparty shall file
                and
                diligently pursue to effectiveness a Registration Statement pursuant
                to
                Rule 415 under the Securities Act. If and when such Registration
                Statement
                shall have been declared effective by the Securities and Exchange
                Commission, Counterparty shall have made available to Lehman Brothers
                such
                Prospectuses as Lehman Brothers may reasonably request to comply
                with the
                applicable prospectus delivery requirements for the resale by Lehman
                Brothers of such number of Shares as Lehman Brothers shall specify
                (or, if
                greater, the number of Shares that Counterparty shall specify). Such
                Registration Statement shall be effective and Prospectus shall be
                current
                until the earliest of the date on which (i) all Shares delivered
                by
                Counterparty in connection with an Early Termination Date
                have been sold,
                (ii) Lehman Brothers has advised Counterparty that it no longer requires
                that such Registration Statement be effective or (iii) all remaining
                Shares could be sold by Lehman Brothers without registration pursuant
                to
                Rule 144 promulgated under the Securities Act (the “Termination
                Registration Period”).
                It
                is understood that the Registration Statement and Prospectus will
                cover a
                number of Shares equal to the number of Shares plus the aggregate
                number
                of Shares (if any) reasonably estimated by Lehman Brothers to be
                potentially deliverable by Counterparty in connection with Early
                Termination Stock Settlement hereunder, but in no event exceeding
                the
                Maximum Deliverable Share Amount. On each day during the Termination
                Registration Period Counterparty shall represent that each of its
                filings
                under the Securities Act, the Exchange Act or other applicable securities
                laws that are required to be filed have been filed and that, as of
                the
                respective dates thereof and as of the date of this representation,
                they
                do not contain
                any untrue statement of a material fact or omission of a material
                fact
                required to be stated therein or necessary to make the statements
                made, in
                the light of the circumstances under which they were made, not
                misleading.

            

    

     

     

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              If
                Counterparty elects not to deliver Shares subject to an effective
                Registration Statement (or if some or all of the Shares delivered
                cannot
                be used to close out stock loans in the shares of Counterparty entered
                into to establish or maintain short positions by Lehman Brothers
                in
                connection with this Transaction without a prospectus being required
                by
                applicable law to be delivered to such lender), the provisions of
                sub-paragraphs (B) and (C) set forth above under “Conditions to Net
                Physical Settlement” shall apply, mutatis mutandis, as if the Net Physical
                Settlement Amount were the Transaction Early Termination Amount.
                In no
                event shall Counterparty be required to deliver to Lehman Brothers
                a
                number of Shares greater than the Maximum Deliverable Share
                Amount.

            
	 	 	 
	
              Compliance
                With Securities Laws:

            	 	
              Counterparty
                represents and agrees that it has complied, and will comply, in connection
                with this Transaction and all related or contemporaneous sales and
                purchases of Shares, with the applicable provisions of the Securities
                Act,
                the Exchange Act and the rules and regulations promulgated thereunder,
                including, without limitation, Rule 10b-5 and 13e and Regulation
                M under
                the Exchange Act.

               

              Each
                party acknowledges that the offer and sale of the Transaction to
                it is
                intended to be exempt from registration under the Securities Act
                by virtue
                of Section 4(2) thereof. Accordingly, each party represents and warrants
                to the other party that (i) it has the financial ability to bear
                the
                economic risk of its investment in the Transaction and is able to
                bear a
                total loss of its investment, (ii) it is an “accredited investor” as that
                term is defined in Regulation D as promulgated under the Securities
                Act
                and (iii) the disposition of the Transaction is restricted under
                this
                Confirmation, the Securities Act and state securities laws.

               

              Counterparty
                further represents and warrants that:

               

              (a) Counterparty
                is not entering into this Transaction to create actual or apparent
                trading
                activity in the Shares (or any security convertible into or exchangeable
                for Shares) or to raise or depress or otherwise manipulate the price
                of
                the Shares (or any security convertible into or exchangeable for
                Shares);

            

    

     

     

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              (b) Counterparty
                represents and acknowledges that as of the date hereof and without
                limiting the generality of Section 13.1 of the Equity Definitions,
                Lehman
                Brothers is not making any representations or warranties with respect
                to
                the treatment of the Transaction under FASB Statements 149 or 150,
                EITF
                Issue No. 00-19 (or any successor issue statements) or under FASB’s
                Liabilities & Equity Project;

               

              (c) Counterparty
                is not, and after giving effect to the Transaction contemplated hereby,
                will not be, an “investment company” as such term is defined in the
                Investment Company Act of 1940, as amended;

               

              (d) As
                of the Trade Date and each date on which a payment or delivery is
                made by
                Counterparty hereunder, (i) the assets of Counterparty at their fair
                valuation exceed the liabilities of Counterparty, including contingent
                liabilities; (ii) the capital of Counterparty is adequate to conduct
                its
                business; and (iii) Counterparty has the ability to pay its debts
                and
                other obligations as such obligations mature and does not intend
                to, or
                believe that it will, incur debt or other obligations beyond its
                ability
                to pay as such obligations mature. 

            
	 	 	 
	
              Account
                Details:

            	 	
              Account
                for payments to Counterparty:

               

              To
                be advised.

               

              Account
                for payments to Lehman Brothers:

               

              To
                be advised.

               

              Account
                for delivery of Shares to Lehman Brothers:

               

              To
                be advised.

            
	
              Agreement
                Regarding Shares:

            	 	
              Counterparty
                agrees that, in respect of any Shares delivered to Lehman Brothers,
                such
                Shares shall be, upon such delivery, duly and validly authorized,
                issued
                and outstanding, fully paid and non-assessable and subject to no
                adverse
                claims of any other party. The issuance of such Shares does not and
                will
                not require the consent, approval, authorization, registration or
                qualification of any government authority, except such as shall have
                been
                obtained on or before the delivery date of any Shares or as may be
                required in connection with any Registration Statement filed with
                respect
                to any Shares.

            
	 	 	 
	
              Bankruptcy
                Rights:

            	 	
              In
                the event of Counterparty’s bankruptcy, Lehman Brothers’ rights in
                connection with this Transaction shall not exceed those rights held
                by
                common shareholders. For the avoidance of doubt, the parties acknowledge
                and agree that Lehman Brothers’ rights with respect to any other claim
                arising from this Transaction prior to Counterparty’s bankruptcy shall
                remain in full force and effect and shall not be otherwise abridged
                or
                modified in connection herewith.

            
	 	 	 
	
              Set-Off:

            	 	
              Each
                party waives any and all rights it may have to set-off,
                whether arising under any agreement, applicable law or
                otherwise.

            

    

     

     

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              Transfer:

            	 	
              Neither
                party may transfer its rights or delegate its obligations under this
                Transaction without the prior written consent of the other party,
                except
                that Lehman Brothers,
                after payment in full of the Premium,
                may assign its rights and delegate its obligations hereunder, in
                whole or
                in part, to any other person (an “Assignee”)
                without the prior consent of the Counterparty, effective (the
                “Transfer
                Effective Date”)
                upon delivery to Counterparty of an executed acceptance and assumption
                by
                the Assignee (an “Assumption”)
                of the transferred obligations of Lehman Brothers under this Transaction
                (the “Transferred
                Obligations”).
                Notwithstanding any other provision in this Confirmation to the contrary
                requiring or allowing Lehman Brothers to purchase, sell, receive
                or
                deliver any Shares or other securities to or from Counterparty, Lehman
                Brothers may designate any of its affiliates to purchase, sell, receive
                or
                deliver such Shares or other securities and otherwise to perform
                Lehman
                Brothers’ obligations in respect of this Transaction and any such designee
                may assume such obligations. Lehman Brothers shall be discharged
                of its
                obligations to Counterparty to the extent of any such
                performance.

            
	 	 	 
	
              Indemnity:

            	 	
              Seller
                agrees to indemnify Lehman Brothers, its Affiliates and their respective
                directors, officers, agents and controlling parties (each such person
                being an “Indemnified Party”) from and against any and all losses, claims,
                damages and liabilities, joint and several, to which such Indemnified
                Party may become subject because of a breach of any representation
                or
                covenant hereunder, in the Agreement or any other agreement relating
                to
                the Agreement or Transaction and will reimburse Indemnified Party
                for all
                reasonable expenses (including reasonable legal fees and expenses)
                as they
                are incurred in connection with the investigation of, preparation
                for, or
                defense of, any pending or threatened claim or any action or proceeding
                arising therefrom, whether or not such Indemnified Party is a party
                thereto. Seller will not be liable to an Indemnified Party under
                the
                foregoing Indemnity provision to the extent that any loss, claim,
                damage,
                liability or expense is found in a final judgment by a court to have
                resulted from that Indemnified Party’s gross negligence or willful
                misconduct.

            

    

     

    Additional
      Agreements, Representations and Covenants of Counterparty, Etc.:

     

    
      	
              (a)

            	
              Counterparty
                hereby represents and warrants to Lehman Brothers, on each day from
                the
                Trade Date to and including the earlier of (i) July 20, 2007 (ii)
                the date
                by which Lehman Brothers is able to initially complete a hedge of
                its
                position created
                by this Transaction, that:

            

    

     

    
      	 	
              (1)

            	
              it
                will not, and will not permit any person or entity subject to its
                control
                to, bid for or purchase Shares during such period except pursuant
                to
                transactions or arrangements which have been approved by Lehman Brothers
                or an affiliate of Lehman Brothers;
                and

            

    

     

    
      	 	
              (2)

            	
              it
                has publicly disclosed all material information necessary for it
                to be
                able to purchase or sell Shares in compliance with applicable federal
                securities laws.

            

    

    
       

      
        	
                (b)

              	
                No
                  collateral shall be required by either party for any reason in
                  connection
                  with this Transaction.

              

      

       

    

    
      	
              (c)

            	
              Notwithstanding
                anything to the contrary herein, Lehman Brothers shall not be entitled
                to
                exercise any Warrant or receive any Shares deliverable hereunder,
                and
                Automatic Exercise shall not apply with respect to any Warrant to
                the
                extent (but only to the extent) that after such receipt of any Shares
                upon
                the exercise of such Warrant or otherwise hereunder Lehman Brothers,
                or
                its ultimate parent entity would, directly or indirectly, be the
                beneficial owner (as such term is defined for purposes of Section
                13(d) of
                the Exchange Act) at any time of more than 8.0 percent of the class
                of the
                Counterparty’s outstanding equity securities that is comprised of the
                Shares (an “Excess
                Share Owner”).

            

    

     

     

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    Lehman
      Brothers shall provide prior notice to Counterparty if the exercise of any
      Warrant or delivery of Shares hereunder would cause Lehman Brothers to become
      directly or indirectly, an Excess Share Owner; provided
      that
      the
      failure of Lehman Brothers to provide such notice shall not alter the
      effectiveness of the provisions set forth in the preceding sentence and any
      purported exercise or delivery in violation of such provisions shall be void
      and
      have no effect. If any delivery owed to Lehman Brothers hereunder is not made,
      in whole or in part, as a result of this provision, Counterparty’s obligation to
      make such delivery shall not be extinguished and Counterparty shall make such
      delivery as promptly as practicable after Lehman Brothers gives notice that
      such
      delivery would not result in Lehman Brothers being an Excess Share
      Owner.

     

    If
      Lehman
      Brothers is not entitled to exercise any Warrant because such exercise would
      cause Lehman Brothers to become, directly or indirectly, an Excess Share Owner
      and Lehman Brothers thereafter disposes of Shares owned by it or any action
      is
      taken that would then permit Lehman Brothers to exercise such Warrant without
      such exercise causing it to become, directly or indirectly, an Excess Share
      Owner, then Lehman Brothers shall provide notice of the taking of such action
      to
      Counterparty and such Warrant shall then become exercisable by Lehman Brothers
      to the extent such Warrant is otherwise or had otherwise become exercisable
      hereunder. In such event, the Expiration Date with respect to such Warrant
      shall
      be the date on which Counterparty receives such notice from Lehman Brothers,
      and
      the related Settlement Date shall be as soon as reasonably practicable after
      receipt of such notice but no more than three (3) Exchange Business Days
      thereafter (but in no event shall the Settlement Date occur prior to the date
      on
      which it would have otherwise occurred but for the provisions of this
      subsection); provided
      that
      the
      related Net Physical Settlement Amount shall be the same as the Net Physical
      Settlement Amount but for the provisions of this subsection. In addition, within
      30 calendar days of any Settlement Date, Counterparty shall use its reasonable
      efforts to refrain from activities that could reasonably be expected to result
      in Lehman Brothers’ ownership of Shares exceeding 10% of all issued and
      outstanding Shares.

     

    Matters
      Relating to Agent: 

     

    LBI
      is
      acting as agent on behalf of Buyer and Seller for the Transaction. LBI has
      no
      obligations, by guarantee, endorsement or otherwise, with respect to the
      performance of the Transaction by either party. 

     

    Regulatory
      Provisions:

     

    (a)  Buyer
      represents and warrants that it has received and read and understands the Notice
      of  Regulatory
      Treatment and the OTC Option Risk Disclosure Statement.

     

    (b)  The
      Agent
      will furnish Buyer upon written request a statement as to the source and amount
      of any  remuneration
      received or to be received by the Agent in connection with the Transaction
      evidenced hereby.

     

    ISDA
      Master Agreement: 

     

    With
      respect to the Agreement, Lehman Brothers and Counterparty each agree as
      follows:

     

    “Specified
      Entity” means
      in
      relation to Seller and in relation to Counterparty for purposes of this
      Transaction: Not applicable.

     

     

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    The
      definition of “Specified
      Transaction” in
      Section 14 of this Agreement is hereby amended by adding the text “commodity
      transaction, credit derivative transaction, repurchase or reverse purchase
      transaction, securities lending transaction, futures transaction, prime
      brokerage or margin lending transaction” after the words “foreign exchange
      transaction” in the sixth line thereof and by replacing the words “any other
      similar transaction” in the eighth line thereof with the text “any other
      transaction between the parties”. “Specified Transaction” shall exclude any
      default under a Specified Transaction if caused solely by the general
      unavailability of the currency in which payments under such Specified
      Transaction are denominated due to exchange controls or other governmental
      action.

     

    The
      “Cross
      Default” provisions
      of Section
      5(a)(vi) of
      the
      Agreement will not apply to Lehman Brothers and will not apply to
      Counterparty.

     

    The
      “Credit
      Event Upon Merger” provisions
      of Section
      5(b)(iv) of
      the
      Agreement will not apply to Lehman Brothers or
      to
      Counterparty.

     

    Additional
      Termination Event.

     

    Without
      limiting the generality of the definition of any Extraordinary Event hereunder,
      the occurrence of any of the following shall constitute an Additional
      Termination Event with respect to which the Transaction shall be the sole
      Affected Transaction and Issuer shall be the sole Affected Party; provided
      that
      with respect to any Additional Termination Event, Lehman Brothers may choose
      to
      treat part of the Transaction as the sole Affected Transaction, and, upon the
      termination of the Affected Transaction, a Transaction with terms identical
      to
      those set forth herein except with a Number of Warrants equal to the unaffected
      number of Warrants shall be treated for all purposes as the Transaction, which
      shall remain in full force and effect: 

     

    (i)
      within the period commencing on the Trade Date and ending on the second
      anniversary of the Premium Payment Date, Buyer reasonably determines that it
      is
      advisable to terminate a portion of the Transaction so that Buyer’s related
      hedging activities will comply with applicable securities laws, rules or
      regulations;

     

    (ii)
      the
      sale, lease, transfer, conveyance or other disposition (other than by way of
      merger or consolidation), in one or a series of related transactions, of all
      or
      substantially all of the properties and assets of the Issuer and its
      subsidiaries taken as a whole to any “person” (as such term is used in Section
      13(d)(3) of the Exchange Act) other than to one or more of the Issuer's
      wholly-owned subsidiaries; 

     

    (iii)
      the
      adoption of a plan relating to the liquidation or dissolution of the Issuer;
      

     

    (iv)
      the
      consummation of any transaction (including, without limitation, any merger
      or
      consolidation) the result of which is that any “person” or “group” (as such
      terms are used in Sections 13(d) and 14(d) of the Exchange Act) becomes the
      “beneficial owner” (as such term is defined in Rule 13d-3 and Rule 13d-5 under
      the Exchange Act, except that a person shall be deemed to have “beneficial
      ownership” of all securities that such person has the right to acquire, whether
      such right is currently exercisable or is exercisable only upon the occurrence
      of a subsequent condition), directly or indirectly, of more than 50% of the
      Voting Stock of the Issuer (measured by voting power rather than number of
      shares), other than any acquisition by the Issuer, any of the Issuer's
      subsidiaries or any of the Issuer's employee benefit plans; 

     

    (iv)
      the
      first day on which a majority of the members of the Board of Directors of the
      Issuer are not Continuing Directors; or 

     

    (v)
      the
      Issuer consolidates with, or merges with or into, any Person, or any Person
      consolidates with, or merges with or into, the Issuer, in any such event
      pursuant to a transaction in which any of the outstanding Voting Stock of the
      Issuer is converted into or exchanged for cash, securities or other property,
      other than any such transaction where the Voting Stock of the Issuer outstanding
      immediately prior to such transaction is converted into or exchanged for Voting
      Stock of the surviving or transferee Person constituting a majority of the
      outstanding shares of such Voting Stock of such surviving or transferee Person
      (immediately after giving effect to such issuance). 

     

     

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    Notwithstanding
      anything to the contrary set forth herein, an event described in clauses (ii)
      through (v) above will not constitute an Additional Termination Event if 100%
      of
      the consideration for the Shares (excluding cash payments for fractional shares
      and cash payments made in respect of dissenters' appraisal rights) in the
      transaction or transactions otherwise constituting an Additional Termination
      Event consists of common stock or American Depositary Shares representing shares
      of common stock, in each case which are traded on any of the New York Stock
      Exchange, the American Stock Exchange, the NASDAQ Global Market or the NASDAQ
      Global Select Market (or their respective successors), or which will be so
      traded or quoted when issued or exchanged in connection with such event;
      provided that, with respect to an entity organized under the laws of a
      jurisdiction outside the United States, such entity has a worldwide total market
      capitalization of its equity securities of at least three times the market
      capitalization of the Issuer before giving effect to the consolidation or
      merger.

     

    “Person”
means
      any individual, corporation, partnership, limited liability company, joint
      venture, association, joint-stock company, trust, unincorporated organization,
      government or any agency or political subdivision thereof or any syndicate
      or
      group that would be deemed to be a “person” under Section 13(d)(3) of the
      Exchange Act or any other entity. “Continuing
      Directors”
means
      any member of the board of directors of the Issuer who (i) was a member of
      such
      board of directors on the date hereof or (ii) was nominated for election or
      elected to such board of directors with the approval of a majority of the
      Continuing Directors who were members of such board at the time of such
      nomination or election. “Voting
      Stock”
of
      a
      Person means all shares of capital stock or other interests (including
      partnership interests) of such Person normally entitled (without regard to
      the
      occurrence of any contingency within the control of such person to satisfy)
      to
      vote in elections of the board of directors, managers or trustees thereof.
      

     

    The
      “Automatic
      Early Termination” provision
      of Section
      6(a) of
      the
      Agreement will not apply to Lehman Brothers or to Counterparty.

     

    Payments
      on Early Termination. For
      the
      purpose of Section
      6(e) of
      the
      Agreement: (i) Loss
      (which
      shall be determined using commercially reasonable procedures in order to produce
      a commercially reasonable result) shall apply; and (ii) the Second Method shall
      apply.

     

    “Termination
      Currency”
means
      USD.

     

     

    Tax
      Representations.

     

    
      	
              (I)

            	
              Payer
                Representations. For
                the purpose of Section 3(e) of the Agreement, each party represents
                to the
                other party that it is not required by any applicable law, as modified
                by
                the practice of any relevant governmental revenue authority, of any
                Relevant Jurisdiction to make any deduction or withholding for or
                on
                account of any Tax from any payment (other than interest under Section
                2(e), 6(d)(ii), or 6(e) of the Agreement) to be made by it to the
                other
                party under the Agreement. In making this representation, each party
                may
                rely on (i) the accuracy of any representations made by the other
                party
                pursuant to Section 3(f) of the Agreement, (ii) the satisfaction
                of the
                agreement contained in Section 4(a)(i) or 4(a)(iii) of the Agreement,
                and
                the accuracy and effectiveness of any document provided by the other
                party
                pursuant to Section 4(a)(i) or 4(a)(iii) of the Agreement, and (iii)
                the
                satisfaction of the agreement of the other party contained in Section
                4(d)
                of the Agreement; provided
                that
                it will not be a breach of this representation where reliance is
                placed on
                clause (ii) above and the other party does not deliver a form or
                document
                under Section 4(a)(iii) of the Agreement by reason of material prejudice
                to its legal or commercial
                position.

            

    

     

    
      	
              (II)

            	
              Payee
                Representations. For
                the purpose of Section 3(f) of the Agreement, each party makes the
                following representations to the other
                party:

            

    

     

    (i) Lehman
      Brothers represents that it is a company organized under the laws of
Delaware.

     

     

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    (ii) Counterparty
      represents that it is a corporation incorporated in Delaware.

     

    Delivery
      Requirements. For
      the
      purpose of Sections
      4(a)(i)
      and
(ii)
      of the
      Agreement, Counterparty agrees to deliver the following documents:

    
       

      
        	
                (a)

              	
                Tax
                  forms, documents or certificates to be delivered
                  are:

              

      

    

     

    Counterparty
      agrees to complete (accurately and in a manner reasonably satisfactory to Lehman
      Brothers), execute, and deliver to Lehman Brothers,
      United
      States Internal Revenue Service Form W-9 or W-8 BEN, or any successor of such
      form(s): (i) before the first payment date under this agreement; (ii) promptly
      upon reasonable demand by Lehman
      Brothers; and (iii) promptly upon learning that any such form(s) previously
      provided by Counterparty
      has
      become obsolete or incorrect.

    
      
         

        
          	
                  (b)

                	
                  Other
                    documents to be delivered:

                

        

         

      

    

    
      	
              Party
                Required to Deliver Document

            	
              Document
                Required to be Delivered

            	
              When
                Required

            	
              Covered
                by Section 3(d) Representation

            
	
              Counterparty

            	
              Evidence
                of the authority and true signatures of each official or representative
                signing this Confirmation

            	
              Upon
                or before execution and delivery of this Confirmation

            	
              Yes

            
	
              Counterparty

            	
              Certified
                copy of the resolution of the Board of Directors or equivalent document
                authorizing the execution and delivery of this Confirmation and such
                other
                certificate or certificates as Lehman Brothers shall reasonably
                request

            	
              Upon
                or before execution and delivery of this Confirmation

            	
              Yes

            

    

     

    Addresses
      for Notices:
      For the
      purpose of Section
      12(a) of
      the
      Agreement:

     

    Address
      for notices or communications to Lehman Brothers for all
      purposes:

     

    
      	
              Address:

            	 	
              Lehman
                Brothers Inc., acting as Agent

            
	
            	 	
              Lehman
                Brothers OTC Derivatives Inc., acting as Principal

            
	
            	 	
              745
                Seventh Avenue

            
	
            	 	
              New
                York, NY 10019

            
	
            	 	
            
	Attention:	 	Andrew Yare - Transaction Management
              Group
	Telephone:	 	212 526 9986
	Facsimile: 	 	646 885 9546

    

      

    with
      a
      copy to:

     

    
      
        	
                Address:

              	 	
                Lehman
                  Brothers Inc., acting as Agent

              
	
              	 	
                Lehman
                  Brothers OTC Derivatives Inc., acting as Principal

              
	
              	 	
                745
                  Seventh Avenue

              
	
              	 	
                New
                  York, NY 10019

              
	
              	 	
              
	Attention:	 	Steve Roti - US Equity Linked
	Telephone:	 	212 526 0055
	Facsimile:	 	917 552 0561

      

       

       

      Global
        Deal ID: 311 7727 

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

       

      Execution
        Copy

       

    

    Address
      for notices or communications to Counterparty for all
      purposes:

    
       

      
        	Address:	 	1450 Broadway
	
              	 	New York, New York 10018
	
              	 	
              
	Attention:	 	Chief Executive Officer
	Facsimile No.:	 	212-391-0127
	Telephone No.:	 	212-730-0030

    

     

    In
      addition, in the case of notices or communications relating to Section 5, 6,
      11
      or 13 of this Agreement, a second copy of any such notice or communication
      shall
      be addressed to the attention of Counterparty’ General Counsel as
      follows:

    
       

      
        	Address:	 	1450 Broadway
	
              	 	New York, NY 10018
	
              	 	
              
	Attention:	 	General Counsel
	Facsimile No.:	 	212-391-0127
	Telephone No.:	 	212-819-2089
	
              	 	
              
	With a copy to:	 	
              
	
              	 	
              
	Firm:	 	Blank Rome LLP
	Address:	 	405 Lexington Avenue
	
              	 	New York, NY 10174
	
              	 	
              
	Attention:	 	Robert J. Mittman, Esq.
	Facsimile No.:	 	212-885-5001
	Telephone No.:	 	212-8855000

      

    

     

    Process
      Agent: For
      the
      purpose of Section 13(c) of the Agreement, Lehman Brothers does not appoint
      a
      Process Agent.

     

    Counterparty
      does not appoint a Process Agent.

     

    Multibranch
      Party. For
      the
      purpose of Section
      10(c)
      of the
      Agreement: Neither Lehman Brothers nor Counterparty is a Multibranch
      Party.

     

    Calculation
      Agent.
      "Calculation Agent" means Lehman Brothers, acting in good faith and in a
      commercially reasonable manner. 

     

    Credit
      Support Document.

     

    Lehman
      Brothers: Not Applicable.

     

    Counterparty:
      Not Applicable

     

     

    Global
      Deal ID: 311 7727 

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    Execution
      Copy

     

    Credit
      Support Provider.

     

    With
      respect to Lehman Brothers: Not Applicable. 

     

    With
      respect to Counterparty: Not Applicable.

     

    Governing
      Law. This
      Confirmation will be governed by, and construed in accordance with, the laws
      of
      the State of New York.

     

    Waiver
      of Jury Trial. Each
      party waives, to the fullest extent permitted by applicable law, any right
      it
      may have to a trial by jury in respect of any suit, action or proceeding
      relating to this Transaction. Each party (i) certifies that no representative,
      agent or attorney of the other party has represented, expressly or otherwise,
      that such other party would not, in the event of such a suit, action or
      proceeding, seek to enforce the foregoing waiver and (ii) acknowledges that
      it
      and the other party have been induced to enter into this Transaction, as
      applicable, by, among other things, the mutual waivers and certifications
      provided herein.

     

    Netting
      of Payments. The
      provisions of Section
      2(c) of
      the
      Agreement shall not be applicable to this Transaction.

     

    Basic
      Representations. Section
      3(a) of
      the
      Agreement is hereby amended by the deletion of “and” at the end of Section
      3(a)(iv); the
      substitution of a semicolon for the period at the end of Section
      3(a)(v) and
      the
      addition of Sections
      3(a)(vi), as
      follows:

     

    Eligible
      Contract Participant; Line of Business. Each
      party agrees and represents that it is an “eligible contract participant” as
      defined in Section 1 (a)(12)
      of
      the U.S. Commodity Exchange Act, as amended (“CEA”),
      this
      Agreement and the Transaction thereunder are subject to individual negotiation
      by the parties and have not been executed or traded on a “trading facility” as
      defined in Section 1(a)(33)
      of
      the CEA, and it has entered into this Confirmation and this Transaction in
      connection with its business or a line of business (including financial
      intermediation), or the financing of its business.

     

    Acknowledgements:

     

    
      	
              (a)

            	
              The
                parties acknowledge and agree that there are no other representations,
                agreements or other undertakings of the parties in relation to this
                Transaction, except as set forth in this
                Confirmation.

            

    

    
       

      
        	
                (b)

              	
                The
                  parties hereto intend for:

              

      

    

     

    
      	 	
              (i)

            	
              Buyer
                to be a “financial institution” as defined in Section 101(22) of Title 11
                of the United States Code (the “Bankruptcy
                Code”)
                and this Transaction to be a “securities contract” as defined in Section
                741(7) of the Bankruptcy Code and
                a “swap agreement” as defined in Section 101(53C) of the Bankruptcy
                Code, qualifying
                for the protections of, among other sections, Sections 362(b)(6),
                362
                (b)(17), 546(e), 546(g), 555 and 560 of the Bankruptcy
                Code;

            

    

     

    
      	 	
              (ii)

            	
              a
                party’s right to liquidate this Transaction and to exercise any other
                remedies upon the occurrence of any Event of Default under the Agreement
                with respect to the other party to constitute a “contractual right” as
                defined in the Bankruptcy Code;

            

    

     

    
      	 	
              (iii)

            	
              all
                payments for, under or in connection with this Transaction, all payments
                for the Shares and the transfer
                of such Shares to constitute “settlement payments” as defined in the
                Bankruptcy Code.

            

    

     

    
      	
              (c)

            	
              The
                parties acknowledge and agree that in the event of an Early Termination
                Date as a result of an Event of Default that is within Counterparty’s
                control, the amount payable under the Agreement will be a cash amount
                calculated as described therein and that any delivery specified in
                this
                Transaction will no longer be
                required.

            

    

     

     

    Global
      Deal ID: 311 7727 

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    Execution
      Copy

     

    Amendment
      of Section
      6(d)(ii).
      Section
      6(d)(ii) of the Agreement is modified by deleting the words “on the day” in the
      second line thereof and substituting therefor “on the day that is three Local
      Business Days after the day”. Section
      6(d)(ii)
      is
      further modified by deleting the words “two Local Business Days” in the fourth
      line thereof and substituting therefor “three Local Business Days.”

     

    Amendment
      of Definition of Reference Market-Makers. The
      definition of “Reference Market-Makers” in Section
      14 is
      hereby
      amended by adding in clause (a) after the word “credit” and before the word
“and” the words “or to enter into transactions similar in nature to the
      Transactions.”

     

    Consent
      to Recording. Each
      party consents to the recording of the telephone conversations of trading and
      marketing personnel of the parties and their Affiliates in connection with
      this
      Confirmation. To the extent that one party records telephone conversations
      (the
“Recording Party”) and the other party does not (the “Non-Recording Party”), the
      Recording Party shall in the event of any dispute, make a complete and unedited
      copy of such party’s tape of the entire day’s conversations with the
      Non-Recording Party’s personnel available to the Non-Recording Party. The
      Recording Party’s tapes may be used by either party in any forum in which a
      dispute is sought to be resolved and the Recording Party will retain tapes
      for a
      consistent period of time in accordance with the Recording Party’s policy unless
      one party notifies the other that a particular transaction is under review
      and
      warrants further retention.

     

    Disclosure.
      Each
      party hereby acknowledges and agrees that Lehman Brothers has authorized
      Counterparty to disclose this Transaction and any related hedging transaction
      between the parties if and to the extent that Counterparty reasonably determines
      (after consultation with Lehman Brothers) that such disclosure is required
      by
      law or by the rules of the New York Stock Exchange or any securities exchange.
      Notwithstanding the foregoing, effective from the date of commencement of
      discussions concerning the Transaction, Counterparty and each of its employees,
      representatives, or other agents may disclose to any and all persons, without
      limitation of any kind, the tax treatment and tax structure of the Transaction
      and all materials of any kind (including opinions or other tax analyses) that
      are provided to Counterparty relating to such tax treatment and tax
      structure.

     

    Severability.
      If
      any
      term, provision, covenant or condition of this Confirmation, or the application
      thereof to any party or circumstance, shall be held to be invalid or
      unenforceable in whole or in part for any reason, the remaining terms,
      provisions, covenants, and conditions hereof shall continue in full force and
      effect as if this Confirmation had been executed with the invalid or
      unenforceable provision eliminated, so long as this Confirmation as so modified
      continues to express, without material change, the original intentions of the
      parties as to the subject matter of this Confirmation and the deletion of such
      portion of this Confirmation will not substantially impair the respective
      benefits or expectations of parties to this Agreement; provided,
      however, that
      this
      severability provision shall not be applicable if any provision of Section
      2,
      5,
      6
      or
13
      of the
      Agreement (or any definition or provision in Section
      14 to
      the
      extent that it relates to, or is used in or in connection with any such Section)
      shall be so held to be invalid or unenforceable.

     

    Affected
      Parties. For
      purposes of Section
      6(e) of
      the
      Agreement, each party shall be deemed to be an Affected Party in connection
      with
      Illegality and any Tax Event.

     

     [Signatures
      follow on separate page]

     

     

    Global
      Deal ID: 311 7727 

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    Please
      confirm that the foregoing correctly sets forth the terms of our agreement
      by
      executing the copy of this Confirmation enclosed for that purpose and returning
      it to us.

     

    Very
      truly yours,

    LEHMAN
      BROTHERS OTC DERIVATIVES INC.

    

    

    By:
      /s/ Anatoly
      Kozlov                                      

    Name:
      Anatoly Kozlov

    Title:
      Authorized Signatory

     

    Confirmed
      as of the date first above written: 

     

    ICONIX
      BRAND GROUP, INC.

     

    By:
      /s/ Neil
      Cole                                             

    Name:
      Neil Cole

    Title:
      Chairman, President and CEO

     

     

    Acknowledged
      and agreed as to matters to the Agent:

     

    LEHMAN
      BROTHERS INC., 

     

    Solely
      in
      its capacity as Agent hereunder

     

    By:
      /s/
      illegible                                                

    Name:
      

    Title:
      Authorized Signatory

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