Document:

EXECUTION
        COPY

     

      
        

      

    

     

    Registration
      Rights Agreement

     

    Dated
      as of June 20, 2007

     

    between

     

    Iconix
      Brand Group, Inc.

     

    and

     

    The
      Purchasers listed on the signature pages hereto

     

    
      

    

     

    
      
        
        

      

      
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    REGISTRATION
      RIGHTS AGREEMENT

     

    This
      Registration Rights Agreement (the “Agreement”) is made and entered into this 20
      day of June, 2007, between Iconix Brand Group, Inc., a Delaware corporation
      (the
“Company”), and the purchasers named on Schedule A hereto (collectively, the
“Purchasers”).

     

    This
      Agreement is made pursuant to the Purchase Agreement (the “Purchase Agreement”),
      dated June 14, 2007, between the Company and the Purchasers, which provides
      for
      the sale by the Company to the Purchasers of $250,000,000 aggregate principal
      amount ($287,500,000 aggregate principal amount if the Purchasers exercise
      their
      over-allotment option in full) of the Company’s 1.875% Convertible Senior
      Subordinated Notes due 2012 (the “Notes” and together with the shares of Common
      Stock of the Company into which the Notes are convertible, the “Securities”). In
      order to induce the Purchasers to enter into the Purchase Agreement, the Company
      has agreed to provide to the Purchasers and their direct and indirect
      transferees the registration rights set forth in this Agreement. The execution
      of this Agreement is a condition to the closing under the Purchase
      Agreement.

     

    In
      consideration of the foregoing, the parties hereto agree as
      follows:

     

    1.  Definitions.

     

    As
      used
      in this Agreement, the following capitalized defined terms shall have the
      following meanings:

     

    “1933
      Act”
shall
      mean the Securities Act of 1933, as amended from time to time.

     

    “1934
      Act”
shall
      mean the Securities Exchange Act of l934, as amended from time to
      time.

     

    “1939
      Act”
shall
      mean the Trust Indenture Act of 1939, as amended from time to time.

     

    “Additional
      Interest”
shall
      have the meaning set forth in Section 2.4 herein.

     

    “Agreement”
shall
      have the meaning set forth in the preamble.

     

    “Closing
      Date”
shall
      mean the Closing Time as defined in the Purchase Agreement.

     

    “Common
      Stock”
shall
      mean any shares of common stock, without par value, of the Company and any
      other
      shares of common stock as may constitute “Common Stock” for purposes of the
      Indenture.

     

    “Company”
shall
      have the meaning set forth in the preamble and shall also include the Company’s
      successors.

     

    
      
        
        

      

      
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    “Depositary”
shall
      mean The Depository Trust Company, or any other depositary appointed by the
      Company, provided,
      however,
      that
      such depositary must have an address in the Borough of Manhattan, in the City
      of
      New York.

     

    “Effectiveness
      Period”
shall
      have the meaning set forth in Section 2.1(b) herein.

     

    “Holder”
shall
      mean the Purchasers, for so long as they own any Registrable Securities, and
      their successors, assigns and direct and indirect transferees who become owners,
      beneficial or otherwise, of Registrable Securities under the
      Indenture.

     

    “Holders’
      Counsel”
shall
      have the meaning set forth in this Section 1.

     

    “Indenture”
shall
      mean the Indenture relating to the Securities, dated as of the date hereof,
      between the Company and The Bank of New York, a New York banking corporation,
      as
      Trustee, as the same may be amended, supplemented, waived or otherwise modified
      from time to time in accordance with the terms thereof.

     

    “Issuer
      Free Writing Prospectus”
shall
      have the meaning set forth in Section 2.1(f) herein.

     

    “Majority
      Holders”
shall
      mean the Holders of a majority of the aggregate principal amount of outstanding
      Registrable Securities; provided that,
      for
      purposes of this definition, (1) a Holder of shares of Common Stock that
      constitutes Registrable Securities which were issued upon conversion of the
      Notes shall be deemed to hold an aggregate principal amount of Registrable
      Securities (in addition to the principal amount of any Registrable Securities
      held by such Holder) equal to the principal amount of Registrable Securities
      which were converted into such shares of Common Stock and (2) such Registrable
      Securities which were converted into such shares of Common Stock shall be deemed
      to be outstanding; provided further,
      that
      whenever the consent or approval of Holders of a specified percentage of
      Registrable Securities is required hereunder, Registrable Securities held by
      the
      Company or any Affiliate (as defined in the Indenture) of the Company shall
      be
      disregarded in determining whether such consent or approval was given by the
      Holders of such required percentage amount.

     

    “Notes”
shall
      have the meaning set forth in the preamble.

     

    “Offering
      Memorandum”
shall
      mean the offering memorandum of the Company, dated June 14, 2007, related to
      the
      Securities.

     

    “Person”
shall
      mean an individual, partnership (general or limited), corporation, limited
      liability company, trust or unincorporated organization, or a government or
      agency or political subdivision thereof.

     

    “Prospectus”
shall
      mean the prospectus included in a Shelf Registration Statement, including any
      preliminary prospectus, and any such prospectus as amended or supplemented
      by
      any prospectus supplement, including any such prospectus supplement with respect
      to the terms of the offering of any portion of the Registrable Securities
      covered by a Shelf Registration Statement, and by all other amendments and
      supplements to a prospectus, including post-effective amendments, and in each
      case including all materials incorporated by reference therein.

     

    
      
        
        

      

      
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    “Purchase
      Agreement”
shall
      have the meaning set forth in the preamble.

     

    “Purchasers”
shall
      have the meaning set forth in the preamble.

     

    “Questionnaire”
shall
      have the meaning set forth in Section 2.1(d) herein.

     

    “Registrable
      Securities”
shall
      mean all or any of the Securities; provided,
      however,
      that
      any such Securities shall cease to be Registrable Securities at the earlier
      of
      when (i) a Shelf Registration Statement with respect to such Securities shall
      have been declared effective or otherwise become effective under the 1933 Act
      and such Securities shall have been disposed of pursuant to such Shelf
      Registration Statement, (ii) such Securities have been sold to the public
      pursuant to Rule 144 or may be sold or transferred pursuant to Rule l44(k)
      (or
      any similar provision then in force, but not Rule 144A) under the 1933 Act
      by
      holders who are not “affiliates” of the Company, or (iii) such Securities shall
      have ceased to be outstanding.

     

    “Registration
      Default”
shall
      have the meaning set forth in Section 2.4 herein.

     

    “Registration
      Expenses”
shall
      mean any and all expenses incident to performance of or compliance by the
      Company with this Agreement, whether or not a Shelf Registration Statement
      becomes effective, including without limitation: (i) all SEC, stock exchange
      or
      National Association of Securities Dealers, Inc. (the “NASD”) registration and
      filing fees, including, if applicable, the reasonable and documented fees and
      expenses of any “qualified independent underwriter” (and its counsel) that is
      required to be retained by any holder of Registrable Securities in accordance
      with the rules and regulations of the NASD, (ii) all fees and expenses incurred
      by the Company in connection with compliance with state securities or blue
      sky
      laws and compliance with the rules of the NASD (including reasonable and
      documented fees and disbursements of counsel for any underwriters or Holders
      in
      connection with blue sky qualification of any of the Registrable Securities
      and
      any filings with the NASD), (iii) all expenses of the Company in preparing
      or
      assisting in preparing, word processing, printing and distributing any Shelf
      Registration Statement, any Prospectus, any amendments or supplements thereto,
      any securities sales agreements and other documents relating to the performance
      of and compliance with this Agreement, (iv) all fees and expenses incurred
      by
      the Company in connection with the listing, if any, of any of the Registrable
      Securities on any securities exchange or exchanges, (v) all rating agency fees
      incurred by the Company, if any, (vi) the fees and disbursements of counsel
      for
      the Company and of the independent public accountants of the Company, including
      the expenses of any special audits or “comfort” letters required by or incident
      to such performance and compliance, (vii) the fees and expenses of the Trustee,
      and any escrow agent or custodian, (viii) the reasonable and documented fees
      and
      expenses of a single counsel to the Holders, which counsel shall be selected
      by
      the Majority Holders or the Purchasers on their behalf, (the “Holders’ Counsel”)
      in connection with the Shelf Registration Statement, and (ix) any fees and
      expenses of any special experts retained by the Company in connection with
      any
      Shelf Registration Statement, but excluding any underwriting discounts and
      commissions and transfer taxes, if any, relating to the sale or disposition
      of
      Registrable Securities by a Holder and the fees and expenses of any counsel
      to,
      or other experts retained by, the Holders, except as provided for in clause
      (viii) above.

     

    
      
        
        

      

      
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    “SEC”
shall
      mean the Securities and Exchange Commission or any successor agency or
      government body performing the functions currently performed by the United
      States Securities and Exchange Commission.

     

    “Securities”
shall
      have the meaning set forth in the preamble.

     

    “Shelf
      Registration”
shall
      mean a registration effected pursuant to Section 2.1 hereof.

     

    “Shelf
      Registration Statement”
shall
      mean a “shelf” registration statement of the Company pursuant to the provisions
      of Section 2.1 of this Agreement which covers all of the Registrable Securities
      on an appropriate form under Rule 415 under the 1933 Act, or any similar rule
      that may be adopted by the SEC, and all amendments and supplements to such
      registration statement, including post-effective amendments, in each case
      including the Prospectus contained therein, all exhibits thereto and all
      materials incorporated by reference therein.

     

    “Suspension
      Period”
shall
      have the meaning set forth in Section 2.5 herein.

     

    “Trustee”
shall
      mean the trustee with respect to the Securities under the
      Indenture.

     

    “Underwriter”
shall
      have the meaning set forth in Section 4(a).

     

    2.  Registration
      Under the 1933 Act.

     

    2.1  Shelf
      Registration.

     

    (a)  The
      Company shall, at its cost, no later than 90 days after the Closing Date, file
      with SEC, and thereafter shall use its commercially reasonable efforts to cause
      to be declared effective as promptly as practicable but no later than 180 days
      after making such filing, a Shelf Registration Statement (which may be an
      automatic shelf registration statement if the Company at the time such Shelf
      Registration Statement is filed is a well-known, seasoned issuer) relating
      to
      the offer and sale of the Registrable Securities by the Holders that have
      provided the information pursuant to Section 2.1(d).

     

    (b)  The
      Company shall, at its cost, use its commercially reasonable efforts, subject
      to
      Section 2.5, to keep the Shelf Registration Statement continuously effective
      in
      order to permit the Prospectus forming part thereof to be usable by Holders
      beginning upon the effective date of the Shelf Registration Statement (i) for
      a
      period of two years from the Closing Date or (ii) for such shorter period that
      will terminate when (A) all Securities covered by the Shelf Registration
      Statement have been sold pursuant to the Shelf Registration Statement, (B)
      when
      the Holders, other than “affiliates” (as defined in Rule 144 under the 1933 Act)
      of the Company are able to sell or transfer to the public all securities
      immediately without restriction pursuant to Rule 144 (or any similar provision
      then in force, including Rule 144 (k) but not Rule 144A) under the 1933 Act
      or
      (C) when all Registrable Securities cease to be outstanding or otherwise cease
      to be Registrable Securities (the “Effectiveness Period”).

     

    
      
        
        

      

      
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    (c)  Notwithstanding
      any other provisions hereof, the Company shall use its commercially reasonable
      efforts to provide that (i) any Shelf Registration Statement and any amendment
      thereto and any Prospectus forming part thereof and any supplement thereto
      complies in all material respects with the 1933 Act and the rules and
      regulations thereunder, (ii) any Shelf Registration Statement and any amendment
      thereto does not, when it becomes effective, contain an untrue statement of
      a
      material fact or omit to state a material fact required to be stated therein
      or
      necessary to make the statements therein not misleading and (iii) any Prospectus
      forming part of any Shelf Registration Statement, and any supplement to such
      Prospectus (as amended or supplemented from time to time), does not include
      an
      untrue statement of a material fact or omit to state a material fact necessary
      in order to make the statements therein, in light of the circumstances under
      which they were made, not misleading.

     

    (d)  Notwithstanding
      any other provision hereof, no Holder of Registrable Securities may include
      any
      of its Registrable Securities in the Shelf Registration Statement pursuant
      to
      this Agreement unless the Holder furnishes to the Company a fully completed
      notice and questionnaire in the form attached as Annex A to the Offering
      Memorandum (the “Questionnaire”) and such other information in writing as the
      Company may reasonably request in writing for use in connection with the Shelf
      Registration Statement or Prospectus included therein and in any application
      to
      be filed with or under state securities laws. At least 30 days prior to the
      filing of the Shelf Registration Statement, the Company will provide notice
      to
      the Holders of its intention to file the Shelf Registration Statement. In order
      to be named as a selling securityholder in the Prospectus at the time of
      effectiveness of the Shelf Registration Statement, each Holder must, before
      the
      filing of the Shelf Registration Statement and no later than the 20th day after
      being notified of the Company’s intention to file, furnish the completed
      Questionnaire and such other information that the Company may reasonably request
      in writing, if any, to the Company in writing and the Company shall include
      the
      information from the completed Questionnaire and such other information, if
      any,
      in the Shelf Registration Statement and the Prospectus in a manner so that
      upon
      effectiveness of the Shelf Registration Statement the Holder will be permitted
      to deliver the Prospectus to purchasers of the Holder’s Registrable Securities.
      From and after the date that the Shelf Registration Statement is first declared
      effective by the SEC or otherwise becomes effective, upon receipt of a completed
      Questionnaire and such other information that the Company may reasonably request
      in writing, if any, the Company will use its commercially reasonable efforts
      to
      file (i) within 20 business days any amendments to the Shelf Registration
      Statement or supplements to the Prospectus or (ii) within 10 business days
      any
      report filed with the SEC under the 1934 Act, if the Company is permitted to
      do
      so pursuant to the 1933 Act and the regulations thereunder, necessary for such
      Holder to be named as a selling securityholder in the Prospectus contained
      therein to permit such Holder to deliver the Prospectus to purchasers of the
      Holder’s Securities (subject to the Company’s right to suspend the Shelf
      Registration Statement as described in Section 2.5 below). Holders that do
      not
      deliver a completed written Questionnaire and such other information, as
      provided for in this Section 2.1(d), will not be named as selling
      securityholders in the Prospectus. Each Holder named as a selling securityholder
      in the Prospectus agrees to promptly furnish to the Company all information
      required to be disclosed in order to make information previously furnished
      to
      the Company by the Holder not materially misleading and any other information
      regarding such Holder and the distribution of such Holder’s Registrable
      Securities as the Company may from time to time reasonably request in
      writing.

     

    
      
        
        

      

      
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    (e)  During
      the Effectiveness Period, each Holder agrees not to sell any Registrable
      Securities pursuant to the Shelf Registration Statement without delivering,
      or
      causing to be delivered, a Prospectus to the purchaser thereof.

     

    (f)  The
      Company represents and agrees that, unless it obtains the prior consent of
      Holders of a majority in principal amount of the Registrable Securities that
      are
      registered under the Shelf Registration Statement at such time or the approval
      of Holders’ Counsel or the consent of the managing underwriter in connection
      with any underwritten offering of Registrable Securities, and each Holder
      represents and agrees that, unless it obtains the prior consent of the Company
      and any such underwriter, it will not make any offer relating to the Securities
      (which, for the avoidance of doubt, will not include any shares of Common Stock
      which are not Securities within the meaning of this Agreement) that would
      constitute an “issuer free writing prospectus,” as defined in Rule 433 under the
      1933 Act (an “Issuer Free Writing Prospectus”), or that would otherwise
      constitute a “free writing prospectus,” as defined in Rule 405 under the 1933
      Act, required to be filed with the SEC. The Company represents that any Issuer
      Free Writing Prospectus will not include any information that conflicts with
      the
      information contained in the Shelf Registration Statement or Prospectus and
      that
      any Issuer Free Writing Prospectus, when taken together with the information
      in
      the Shelf Registration Statement and the Prospectus, will not include any untrue
      statement of a material fact or omit to state any material fact necessary in
      order to make the statements therein, in light of the circumstances under which
      they were made, not misleading.

     

    The
      Company will not permit any securities other than Registrable Securities to
      be
      included in the Shelf Registration Statement. The Company agrees to supplement
      or amend the Shelf Registration Statement if required by the rules, regulations
      or instructions applicable to the registration form used by the Company if
      required by the 1933 Act, or to the extent the Company does not reasonably
      object, as reasonably requested in writing by any Holder with respect to
      information relating to such Holder, and to furnish to the Holders of
      Registrable Securities that are covered under such Shelf Registration Statement
      copies of any such supplement or amendment promptly after its being used or
      filed with the SEC in such amounts as they may reasonably request.

     

    2.2  Expenses.
      The
      Company shall pay all Registration Expenses in connection with the registration
      pursuant to Section 2.1. Each Holder shall pay all underwriting discounts and
      commissions and transfer taxes, if any, relating to the sale or disposition
      of
      such Holder’s Registrable Securities pursuant to the Shelf Registration
      Statement.

     

    2.3  Effectiveness.
      (a)
      The
      Company will be deemed not to have used its commercially reasonable efforts
      to
      cause the Shelf Registration Statement to become, or to remain, effective during
      the requisite period (subject to Section 2.5) if the Company voluntarily takes
      any action that would, or voluntarily omits to take any action which omission
      would, result in any such Shelf Registration Statement not being declared
      effective or in the Holders of Registrable Securities covered thereby not being
      able to offer and sell such Registrable Securities during that period as and
      to
      the extent contemplated hereby, unless such action or omission is required
      by
      applicable law.

     

    
      
        
        

      

      
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    (b)  A
      Shelf
      Registration Statement will not be deemed to have become effective unless it
      has
      been declared effective by the SEC or has become automatically effective under
      the 1933 Act; provided,
      however,
      that
      if, after it has been declared or become effective, the offering of Registrable
      Securities pursuant to a Shelf Registration Statement is interfered with by
      any
      stop order, injunction or other order or requirement of the SEC or any other
      governmental agency or court, such Shelf Registration Statement will not be
      deemed to be effective during the period of such interference, until the
      offering of Registrable Securities pursuant to such Shelf Registration Statement
      may legally resume.

     

    2.4  Interest.
      In the
      event that (a) a Shelf Registration Statement is not filed with the SEC on
      or
      before the 90th calendar day following the Closing Date, (b) a Shelf
      Registration Statement is not declared effective or otherwise becomes effective
      on or prior to the 180th calendar day following the making of such filing,
      (c)
      after effectiveness, subject to Section 2.5, the Shelf Registration Statement
      ceases to be effective or fails to be usable by the Holders without being
      succeeded within seven business days by a post-effective amendment or a report
      filed with the SEC pursuant to the 1934 Act that immediately cures the failure
      to be effective or usable, or (d) during the Effectiveness Period, the
      Prospectus is unusable by the Holders for any reason, exceeding the number
      of
      days set forth in Section 2.5 (each such event being a “Registration
      Default”),
      additional interest (“Additional
      Interest”)
      will
      accrue at a rate per annum of one-quarter of one percent (0.25%) of the
      principal amount of the Securities for the first 90 day period from the day
      following the Registration Default, and thereafter at a rate per annum of
      one-half of one percent (0.50%) of the principal amount of the Securities;
      provided
      that in
      no event shall Additional Interest accrue at a rate per annum exceeding one
      half
      of one percent (0.50%) of the issue price of the Securities; provided further
      that no
      Additional Interest shall accrue after the second anniversary of the Closing
      Date. Upon the cure of all Registration Defaults then continuing, the accrual
      of
      Additional Interest will automatically cease and the interest rate borne by
      the
      Securities will revert to the original interest rate at such time. Additional
      Interest shall be computed based on the actual number of days elapsed in each
      90-day period in which the Shelf Registration Statement or the Prospectus is
      not
      effective or is unusable. Holders who have received Common Stock in connection
      with the conversion of the Notes will not be entitled to receive any Additional
      Interest with respect to such Common Stock or the issue price of the Securities
      converted.

     

    The
      Company shall notify the Trustee within five business days after each and every
      date on which an event occurs in respect of which Additional Interest is
      required to be paid. Additional Interest shall be paid by depositing with the
      Trustee, in trust, for the benefit of the Holders of Registrable Securities,
      on
      or before the applicable semiannual interest payment date, in immediately
      available funds in sums sufficient to pay the Additional Interest then due.
      The
      Additional Interest due shall be payable in arrears on each interest payment
      date to the record Holder of Registrable Securities entitled to receive the
      interest payment to be paid on such date as set forth in the Indenture. Each
      obligation to pay Additional Interest shall be deemed to accrue from and
      including the day following the Registration Default to but excluding the day
      on
      which the Registration Default is cured.

     

    
      
        
        

      

      
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    A
      Registration Default under clause (a) above shall be cured on the date that
      the
      Registration Statement is filed with the SEC. A Registration Default under
      clause (b) above shall be cured on the date that the Shelf Registration
      Statement is declared effective by the SEC or deemed to become automatically
      effective under the 1933 Act. A Registration Default under clauses (c) or (d)
      above shall be cured on the date an amended Shelf Registration Statement is
      declared effective by the SEC or deemed to become automatically effective under
      the 1933 Act, or the Company otherwise declares the Shelf Registration Statement
      and the Prospectus useable, as applicable. The Company will have no liabilities
      for monetary or other damages other than the Additional Interest with respect
      to
      any Registration Default.

     

    2.5  Suspension.
      Notwithstanding any other provision hereof, the Company may suspend the use
      of
      any Prospectus, without incurring or accruing any obligation to pay Additional
      Interest pursuant to Section 2.4 hereof or being deemed in violation of any
      other provision hereof, for a period or periods (each, a “Suspension Period”)
      not to exceed an aggregate 60 calendar days in any three-month period, or an
      aggregate of 120 calendar days in any twelve-month period, if management of
      the
      Company shall have determined in good faith that because of valid business
      reasons (not including avoidance of the Company’s obligations hereunder),
      including without limitation proposed or pending corporate developments and
      similar events or because of filings with the SEC, it is in the best interests
      of the Company to suspend such use, and prior to suspending such use the Company
      provides the Holders with written notice of such suspension, which notice need
      not specify the nature of the event giving rise to such suspension. Each Holder
      shall keep confidential any communications received by it from the Company
      regarding the suspension of the use of the Prospectus, except as required by
      applicable law.

     

    3.  Registration
      Procedures.

     

    In
      connection with the obligations of the Company with respect to the Shelf
      Registration, the Company shall, subject to the rights of the Company to invoke
      and maintain a Suspension Period in accordance with Section 2.5 without being
      in
      violation of any of the provisions hereunder:

     

    (a)  prepare
      and file with the SEC a Shelf Registration Statement, within the relevant time
      period specified in Section 2, on the appropriate form under the 1933 Act,
      which
      form (i) shall be selected by the Company, (ii) shall be available for the
      sale
      of the Registrable Securities by the selling Holders thereof, (iii) shall comply
      as to form in all material respects with the requirements of the applicable
      form
      and include or incorporate by reference all financial statements required by
      the
      SEC to be filed therewith or incorporated by reference therein, and (iv) shall
      comply in all respects with the applicable requirements of Regulation S-T under
      the 1933 Act, if any, and use commercially reasonable efforts to cause such
      Shelf Registration Statement to become effective and remain effective in
      accordance with Section 2 hereof;

     

    (b)  prepare
      and file with the SEC such amendments and post-effective amendments to the
      Shelf
      Registration Statement as may be necessary under applicable law to keep the
      Shelf Registration Statement effective for the Effectiveness Period, subject
      to
      Section 2.5; and cause each Prospectus to be supplemented by any required
      prospectus supplement, and as so supplemented to be filed pursuant to Rule
      424
      (or any similar provision then in force) under the 1933 Act and comply during
      the Effectiveness Period with the provisions of the 1933 Act, the 1934 Act
      and
      the rules and regulations thereunder required to enable the disposition of
      all
      Registrable Securities covered by the Shelf Registration Statement in accordance
      with the intended method or methods of distribution by the selling Holders
      thereof;

     

    
      
        
        

      

      
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    (c)  (i)
      notify each Holder of Registrable Securities of the filing of a Shelf
      Registration Statement with respect to the Registrable Securities; (ii) furnish
      to each Holder of Registrable Securities that has provided the information
      required by Section 2.1(d) and to each underwriter of an underwritten offering
      of Registrable Securities, if any, without charge, electronic copies of each
      Prospectus, including each preliminary Prospectus, and any amendment or
      supplement thereto and such other documents as such Holder or underwriter may
      reasonably request, including financial statements and schedules and, if the
      Holder so requests, all exhibits in order to facilitate the unrestricted sale
      or
      other disposition of the Registrable Securities; and (iii) subject to Section
      2.5 hereof and to any notice by the Company in accordance with Section 3(e)
      hereof of the existence of any fact of the kind described in Sections 3(e)(ii),
      (iii), (iv), (v) and (vi) hereof, hereby consent to the use of the Prospectus
      or
      any amendment or supplement thereto by each of the selling Holders of
      Registrable Securities that has provided the information required by Section
      2.1(d) in connection with the offering and sale of the Registrable
      Securities;

     

    (d)  use
      commercially reasonable efforts to register or qualify the Registrable
      Securities for exemptions under all applicable state securities or “blue sky”
laws of such jurisdictions as any Holder of Registrable Securities covered
      by a
      Shelf Registration Statement and each underwriter of an underwritten offering
      of
      Registrable Securities shall reasonably request, and do any and all other acts
      and things which may be reasonably necessary or advisable to enable each such
      Holder and underwriter to consummate the disposition in each such jurisdiction
      of such Registrable Securities owned by such Holder; provided,
      however,
      that
      the Company shall not be required to (i) qualify as a foreign corporation or
      as
      a dealer in securities in any jurisdiction where it would not otherwise be
      required to qualify but for this Section 3(d), or (ii) take any action which
      would subject it to general service of process or taxation in any such
      jurisdiction where it is not then so subject;

     

    (e)  notify
      promptly each Holder of Registrable Securities under a Shelf Registration
      Statement that has provided the information required by Section 2.1(d) and,
      if
      requested by such Holder, confirm such advice in writing promptly (i) when
      a
      Shelf Registration Statement has become effective and when any post-effective
      amendments thereto have become effective, (ii) of any request by the SEC or
      any
      state securities authority for post-effective amendments and supplements to
      a
      Shelf Registration Statement and Prospectus or for additional information
      relating thereto after the Shelf Registration Statement has become effective,
      (iii) of the issuance by the SEC or any state securities authority of any stop
      order suspending the effectiveness of a Shelf Registration Statement or the
      initiation of any proceedings for that purpose, (iv) of the happening of any
      event or the discovery of any facts during the period a Shelf Registration
      Statement is effective which makes any statement made in such Shelf Registration
      Statement or the related Prospectus untrue in any material respect or which
      requires the making of any changes in such Shelf Registration Statement or
      Prospectus in order to make the statements therein (in the case of the
      Prospectus in light of the circumstances under which they were made) not
      misleading, (v) of the receipt by the Company of any notification with respect
      to the suspension of the qualification of the Registrable Securities for sale
      in
      any jurisdiction or the initiation or threatening of any proceeding for such
      purpose and (vi) of any determination by the Company that a post-effective
      amendment to such Shelf Registration Statement would be appropriate, other
      than
      a post-effective amendment solely to add selling Holders;

     

    
      
        
        

      

      
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    (f)  furnish
      to Holders’ Counsel on behalf of the Holders of Registrable Securities (i)
      copies of any comment letters received from the SEC with respect to a Shelf
      Registration Statement, and, if requested, with respect to any documents
      incorporated therein and (ii) any other request by the SEC or any state
      securities authority for amendments or supplements to a Shelf Registration
      Statement and Prospectus or for additional information with respect to the
      Shelf
      Registration Statement and Prospectus;

     

    (g)  use
      commercially reasonable efforts to obtain the withdrawal of any order suspending
      the effectiveness of a Shelf Registration Statement at the earliest possible
      moment and provide prompt notice to each Holder of the withdrawal of such
      order;

     

    (h)  furnish
      to each Holder of Registrable Securities that has provided the information
      required by Section 2.1(d), and each underwriter, if any, without charge, at
      least one conformed copy of each Shelf Registration Statement and any
      post-effective amendment thereto, including financial statements and schedules
      (without documents incorporated therein by reference and all exhibits thereto,
      unless requested);

     

    (i)  if
      electronic global certificates for the Registrable Securities are not then
      available, cooperate with the selling Holders of Registrable Securities to
      facilitate the timely preparation and delivery of certificates representing
      Registrable Securities to be sold and not bearing any restrictive legends (other
      than as required by applicable law); and enable such Registrable Securities
      to
      be in such denominations (consistent with the provisions of the Indenture)
      and
      registered in such names as the selling Holders or the underwriters, if any,
      may
      reasonably request at least three business days prior to the closing of any
      sale
      of Registrable Securities;

     

    (j)  upon
      the
      occurrence of any event or the discovery of any facts, each as contemplated
      by
      Sections 3(e)(ii), (iii), (iv), (v) and (vi) hereof, as promptly as practicable
      after the occurrence of such an event, use commercially reasonable efforts
      to
      prepare a supplement or post-effective amendment to the Shelf Registration
      Statement or the related Prospectus or any document incorporated therein by
      reference or file any other required document so that, as thereafter delivered
      to the purchasers of the Registrable Securities, such Prospectus will not
      contain at the time of such delivery any untrue statement of a material fact
      or
      omit to state a material fact necessary to make the statements therein, in
      light
      of the circumstances under which they were made, not misleading or will remain
      so qualified. At such time as such public disclosure is otherwise made or the
      Company determines that such disclosure is not necessary, in each case to
      correct any misstatement of a material fact or to include any omitted material
      fact, the Company agrees promptly to notify each Holder of Registrable
      Securities covered by such Shelf Registration Statement of such determination
      and to furnish each Holder such number of copies of the Prospectus as amended
      or
      supplemented, as such Holder may reasonably request;

     

    
      
        
        

      

      
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    (k)  no
      less
      than three business days after the filing of any Shelf Registration Statement,
      any Prospectus, any amendment to a Shelf Registration Statement or amendment
      or
      supplement to a Prospectus (other than amendments and supplements that do
      nothing more than name Holders and provide information with respect thereto),
      provide copies of such document to the Trustee on behalf of such Holders, and
      make representatives of the Company, as shall be reasonably requested by the
      Holders’ Counsel, available for discussion of such document;

     

    (l)  obtain
      CUSIP numbers for all Registrable Securities not later than the effective date
      of the Shelf Registration Statement and provide the Trustee with printed
      certificates for the Registrable Securities in a form eligible for deposit
      with
      the Depositary;

     

    (m)  (i)
      cause
      the Indenture to be qualified under the 1939 Act in connection with the
      registration of the Registrable Securities, (ii) cooperate with the Trustee
      and
      the Holders to effect such changes to the Indenture as may be required for
      the
      Indenture to be so qualified in accordance with the terms of the 1939 Act,
      and
      (iii) execute, and use commercially reasonable efforts to cause the Trustee
      to
      execute, all documents as may be required to effect such changes, and all other
      forms and documents required to be filed with the SEC to enable the Indenture
      to
      be so qualified in a timely manner;

     

    (n)  subject
      to the last paragraph of this Section 3(n), enter into such customary agreements
      (including, if requested, an underwriting agreement in customary form) and
      take
      all other customary and appropriate actions, if any, as the Majority Holders
      shall reasonably request in writing in order to expedite or facilitate the
      disposition of such Registrable Securities, including, but not limited
      to:

     

    (i)  obtain
      opinions of counsel to the Company and updates thereof addressed to each selling
      Holder and the underwriters, if any, covering the matters set forth in the
      opinions of such counsel delivered at the Closing Date as are customarily
      covered in legal opinions in connection with underwritten offering of
      securities;

     

    (ii)  obtain
      “comfort” letters and updates thereof from the Company’s independent certified
      public accountants (and, if necessary, any other independent certified public
      accountants of the subsidiary of the Company or of any business acquired by
      the
      Company for which financial statements are, or are required to be, included
      in
      the Shelf Registration Statement) addressed to the underwriters, if any, and
      use
      commercially reasonable efforts to have such letter addressed to the selling
      Holders of Registrable Securities (to the extent consistent with Statement
      on
      Auditing Standards No. 72 of the American Institute of Certified Public
      Accounts);

     

    (iii)  if
      an
      underwriting agreement is entered into, use commercially reasonable efforts
      to
      cause the same to set forth indemnification provisions and procedures
      substantially equivalent to the indemnification provisions and procedures set
      forth in Section 4 hereof with respect to the underwriters and all other parties
      to be indemnified pursuant to said Section or, at the request of any
      underwriters, in the form customarily provided to such underwriters in similar
      types of transactions; and

     

    
      
        
        

      

      
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    (iv)  deliver
      such documents and certificates as may be reasonably requested and as are
      customarily delivered in similar offerings to the Holders of a majority in
      principal amount of the Registrable Securities being sold and the managing
      underwriters, if any.

     

    The
      above
      shall be done only in connection with any underwritten offering using such
      Shelf
      Registration Statement pursuant to an underwriting or similar agreement as
      and
      to the extent required thereunder, and as reasonably requested by the Majority
      Holders thereto. The Company will not be required to pay the costs and expenses
      of, or to participate in the marketing or “road show” presentations of, an
      underwritten offering of Registrable Securities unless requested by the Majority
      Holders; provided,
      however,
      that in
      no event shall an underwritten offering of Registrable Securities be made
      without the prior written agreement of the Company;

     

    (o)  if
      reasonably requested in connection with a disposition of Registrable Securities
      and reasonably necessary to complete such disposition, upon reasonable advance
      notice, make available for inspection during business hours by representatives
      of the Holders of the Registrable Securities, any underwriters participating
      in
      any disposition pursuant to a Shelf Registration Statement and any counsel
      or
      accountant retained by any of the foregoing, all appropriate financial and
      other
      records, pertinent corporate documents and properties of the Company reasonably
      requested in writing by any such persons, and cause the respective officers,
      directors, employees, and any other agents of the Company to supply all
      information reasonably requested by any such representative, underwriter,
      special counsel or accountant in connection with a Shelf Registration Statement,
      and make such representatives of the Company available for discussion of such
      documents as shall be reasonably requested by the Purchasers, in each case
      as is
      customary for “due diligence” investigations; provided
      that, to
      the extent the Company, in its reasonable discretion, agrees to disclose
      material non-public information, or other confidential information, such persons
      shall first agree in writing with the Company that any such non-public
      information, or other confidential information, shall be kept confidential
      by
      such persons and shall be used solely for the purposes of exercising rights
      under this Agreement and such person shall not engage in trading any securities
      of the Company until any such material non-public information becomes properly
      publicly available, unless (i) disclosure of such information is required by
      court or administrative order or is necessary to respond to inquiries of
      regulatory authorities, (ii) disclosure of such information is required by
      law
      (including any disclosure requirements pursuant to federal securities laws
      in
      connection with the filing of any Shelf Registration Statement or the use of
      any
      Prospectus referred to in this Agreement upon a customary opinion of counsel
      for
      such persons delivered and reasonably satisfactory to the Company), (iii) such
      information becomes generally available to the public other than as a result
      of
      a disclosure or failure to safeguard by any such person, (iv) such information
      becomes available to any such person from a source other than the Company and
      such source is not bound by a confidentiality agreement, or (v) such non-public
      information ceases to be material; provided further,
      that,
      the foregoing inspection and information gathering shall, to the greatest extent
      possible, be coordinated on behalf of all the Holders and the other parties
      entitled thereto by Holders’ Counsel;

     

    (p)  if
      requested in writing by any selling Holder of Registrable Securities that has
      provided the information required by Section 2.1(d), a reasonable time prior
      to
      filing the Shelf Registration Statement, any Prospectus forming a part thereof,
      any amendment to the Shelf Registration Statement or amendment or supplement
      to
      such Prospectus (other than amendments and supplements that do nothing more
      than
      name Holders and provide information with respect thereto), (i) provide copies
      of such document to the Holders of Registrable Securities that have provided
      the
      information required by Section 2.1(d), to Holders’ Counsel and to the
      underwriter or underwriters of an underwritten offering of Registrable
      Securities, if any, (ii) make such changes in any such document prior to the
      filing thereof as Holders’ Counsel or the underwriter or underwriters reasonably
      agree should be included therein and provide to the Company in writing for
      inclusion therein within three business days of delivery of such copies, (iii)
      if requested by any selling Holder of Registrable Securities that has provided
      the information required by Section 2.1(d), not file any such document in a
      form
      (A) to which the Majority Holders, Holders’ Counsel or any underwriter shall not
      have previously been advised and furnished a copy of or (B) to which the
      Majority Holders, Holders’ Counsel or any underwriter shall reasonably object
      within three business days of delivery of such copies, and (iv) make the
      representatives of the Company available for discussion of such document as
      shall be reasonably requested in writing by the Holders of Registrable
      Securities, Holders’ Counsel or any underwriter; provided,
      however,
      that
      the foregoing discussion shall be coordinated on behalf of the parties entitled
      thereto by the Holders’ Counsel and shall be kept confidential by the Holders in
      accordance with the terms of the first proviso of Section 3(o)
      hereof;

     

    
      
        
        

      

      
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    (q)  if
      requested by any selling Holder that has provided the information required
      by
      Section 2.1(d) and subject to the proviso in Section 2.1(d), or the
      underwriters, if any, incorporate in the Shelf Registration Statement or
      Prospectus, pursuant to a supplement or post-effective amendment if necessary,
      such information as such selling Holder or underwriter, if any, may reasonable
      request in writing to have included therein with respect to the name or names
      of
      such selling Holder, the number of shares of Common Stock or principal amount
      of
      Securities owned by such Holder, the plan of distribution of the Registrable
      Securities (as required by Item 508 of Regulation S-K), the principal amount
      of
      Securities or number of shares of Common Stock being sold, the purchase price
      being paid therefor, and any other terms of the offering of the Registrable
      Securities to be sold in such offering;

     

    (r)  use
      commercially reasonable efforts to cause all Notes to be listed on any
      securities exchange or inter-dealer quotation system on which similar debt
      securities issued by the Company are then listed if requested by the Majority
      Holders, or to use commercially reasonable efforts to cause all Registrable
      Securities to be listed on any securities exchange or inter-dealer quotation
      system on which similar equity securities issued by the Company are then listed
      if requested by the underwriter or underwriters of an underwritten offering
      of
      Registrable Securities, if any;

     

    (s)  use
      commercially reasonable efforts to cause the Registrable Securities to be rated
      by the appropriate rating agencies if requested by the underwriter or
      underwriters of an underwritten public offering of Registrable Securities,
      if
      any;

     

    (t)  otherwise
      comply with all applicable rules and regulations of the SEC and make available
      to its security holders, as soon as reasonably practicable, an earnings
      statement covering at least 12 months which shall satisfy the provisions of
      Section 11(a) of the 1933 Act and Rule 158 thereunder; and

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    (u)  cooperate
      and assist in any filings required to be made with the NASD and in the
      performance of any due
      diligence investigation by any underwriter and its counsel (including any
“qualified independent underwriter” that is required to be retained in
      accordance with the rules and regulations of the NASD).

     

    Without
      limiting the provisions of Section 2.1(d), the Company may (as a condition
      to
      such Holder’s participation in the Shelf Registration) require each Holder of
      Registrable Securities to furnish to the Company such information regarding
      the
      Holder and the proposed distribution by such Holder of such Registrable
      Securities as the Company may from time to time reasonably request in writing.
      

     

    Each
      Holder agrees that, upon receipt of any notice from the Company of the happening
      of any event or the discovery of any facts, each of the kind described in
      Section 3(e)(ii), (iii), (iv), (v) or (vi) hereof, such Holder will forthwith
      discontinue disposition of Registrable Securities pursuant to the Prospectus
      included in the Shelf Registration Statement until such Holder’s receipt of the
      copies of the supplemented or amended Prospectus contemplated by Section 3(j)
      hereof or written notice from the Company that the Shelf Registration Statement
      is again effective and no amendment or supplement is needed, and, if so directed
      by the Company, such Holder will deliver to the Company (at its expense) all
      copies in such Holder’s possession, other than permanent file copies then in
      such Holder’s possession, of the Prospectus covering such Registrable Securities
      current at the time of receipt of such notice.

     

    Except
      as
      set forth on Schedule B hereto, in the event that a Registration Default has
      occurred and is continuing, the Company and the Guarantors shall not file any
      Registration Statement with respect to any securities (within the meaning of
      2(l) of the 1933 Act) of the Company or any of its subsidiaries other than
      Registrable Securities.

     

    If
      any of
      the Registrable Securities covered by any Shelf Registration Statement are
      to be
      sold in an underwritten offering, the underwriter or underwriters and manager
      or
      managers that will manage such offering will be selected by the Majority Holders
      of such Registrable Securities included in such offering and shall be acceptable
      to the Company. No Holder of Registrable Securities may participate in any
      underwritten registration hereunder unless such Holder (a) agrees to sell such
      Holder’s Registrable Securities on the basis provided in any underwriting
      arrangements approved by the persons entitled hereunder to approve such
      arrangements and (b) completes and executes all questionnaires, powers of
      attorney, indemnities, underwriting agreements and other documents required
      under the terms of such underwriting arrangements.

     

    4.  Indemnification;
      Contribution.

     

    (a)  The
      Company agrees to indemnify and hold harmless each Holder, each Person who
      participates as an underwriter, if any (any such Person being an “Underwriter”)
      and each Person, if any, who controls any such Holder or Underwriter within
      the
      meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act as
      follows:

     

    (i)  against
      any and all loss, liability, claim, damage and expense whatsoever, as incurred,
      arising out of any untrue statement or alleged untrue statement of a material
      fact contained in any Shelf Registration Statement (or any amendment or
      supplement thereto) pursuant to which Registrable Securities were registered
      under the 1933 Act, including all documents incorporated therein by reference,
      or the omission or alleged omission therefrom of a material fact required to
      be
      stated therein or necessary to make the statements therein not misleading,
      or
      arising out of any untrue statement or alleged untrue statement of a material
      fact contained in any Prospectus (or any amendment or supplement thereto) or
      any
      Issuer Free Writing Prospectus (or any amendment or supplement thereto) or
      the
      omission or alleged omission therefrom of a material fact necessary in order
      to
      make the statements therein, in the light of the circumstances under which
      they
      were made, not misleading;

     

    
      
        
        

      

      
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    (ii)  against
      any and all loss, liability, claim, damage and expense whatsoever, as incurred,
      to the extent of the aggregate amount paid in settlement of any litigation,
      or
      any investigation or proceeding by any governmental agency or body, commenced
      or
      threatened, or of any claim whatsoever based upon any such untrue statement
      or
      omission, or any such alleged untrue statement or omission; provided
      that
      (subject to Section 4(d) below) any such settlement is effected with the written
      consent of the indemnifying party; and

     

    (iii)  against
      any and all expense whatsoever, as incurred (including the reasonable and
      documented fees and disbursements of counsel chosen by any indemnified party),
      reasonably incurred and documented in investigating, preparing or defending
      against any litigation, or any investigation or proceeding by any governmental
      agency or body, commenced or threatened, or any claim whatsoever based upon
      any
      such untrue statement or omission, or any such alleged untrue statement or
      omission, to the extent that any such expense is not paid under subparagraph
      (i)
      or (ii) above;

     

    provided,
      however,
      that
      this indemnity agreement shall not apply to any loss, liability, claim, damage
      or expense to the extent arising out of (A) any untrue statement or omission
      or
      alleged untrue statement or omission made in reliance upon and in conformity
      with written information furnished to the Company by or on behalf of any Holder
      or Underwriter, if any, expressly for use in a Shelf Registration Statement
      (or
      any amendment thereto), any Prospectus (or any amendment or supplement thereto)
      or any Issuer Free Writing Prospectus (or any amendment or supplement thereto),
      (B) use of a Prospectus during a period when use of such Prospectus has been
      validly suspended pursuant to Section 2.5 hereof, provided that such Holder
      has
      received prior notice of such suspension, and provided further that this clause
      (B) shall continue to apply in the event that such valid suspension continues
      beyond the relevant suspension period, or (C) failure of such Holder to deliver
      a prospectus, as then amended or supplemented, as required by applicable laws,
      provided that the Company shall have delivered to such Holder such Prospectus,
      as then amended or supplemented, or (D) any loss, liability, claim, damage
      or
      expense which, in the case of this clause (D), is finally judicially determined
      to have resulted from the gross negligence, willful misconduct or bad faith
      of
      any such party seeking indemnification.

     

    (b)  Each
      Holder, severally, but not jointly, agrees to indemnify and hold harmless the
      Company, each Underwriter, if any, and the other selling Holders, and each
      of
      their respective directors and officers, and each Person, if any, who controls
      the Company, any Underwriter or any other selling Holder within the meaning
      of
      Section 15 of the 1933 Act or Section 20 of the 1934 Act, against any and all
      loss, liability, claim, damage and expense described in the indemnity contained
      in Section 4(a)(i)-(iii) hereof, as incurred and documented, but only with
      respect to untrue statements or omissions, or alleged untrue statements or
      omissions, made in the Shelf Registration Statement (or any amendment thereto)
      or any Prospectus included therein (or any amendment or supplement thereto)
      or
      any Issuer Free Writing Prospectus in reliance upon and in conformity with
      written information with respect to such Holder furnished to the Company by
      or
      on behalf of such Holder expressly for use in the Shelf Registration Statement
      (or any amendment thereto) or such Prospectus (or any amendment or supplement
      thereto) or any Issuer Free Writing Prospectus; provided,
      however,
      that no
      such Holder shall be liable for any claims hereunder in excess of the amount
      of
      net proceeds received by such Holder from the sale of Registrable Securities
      pursuant to such Shelf Registration Statement.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    (c)  Each
      indemnified party shall give notice as promptly as reasonably practicable to
      each indemnifying party of any action or proceeding commenced against it in
      respect of which indemnity may be sought hereunder, but failure to so notify
      an
      indemnifying party shall not relieve such indemnifying party from any liability
      hereunder to the extent it is not materially prejudiced as a result thereof
      and
      in any event shall not relieve it from any liability which it may have otherwise
      than on account of this indemnity agreement. In case any such action, claim,
      suit, investigation or proceeding shall be brought against any indemnified
      party
      and it shall notify the indemnifying party of the commencement thereof, the
      indemnifying party shall be entitled to participate therein and to assume the
      defense thereof; provided,
      however,
      that in
      the event that any such action, claim, suit, investigation or proceeding
      includes both an indemnified party and the indemnifying party, and such
      indemnified party reasonably concludes that there may be legal defenses
      available to it or other indemnified parties that are different from or in
      addition to those available to the indemnifying party, or if the indemnifying
      party fails to assume the defense of the action, claim, suit, investigation
      or
      proceeding, in either case in a timely manner, then such indemnified party
      may
      employ separate counsel to represent or defend it in any such action, claim,
      suit, investigation or proceeding and the indemnifying party will pay the
      reasonable fees and disbursements of such counsel; provided, further, that
      the
      indemnifying party will not be required to pay the fees and disbursements of
      more than one counsel for all indemnified parties (and one separate local
      counsel). In any action, claim, suit, investigation or proceeding the defense
      of
      which the indemnifying party assumes, the indemnified party will have the right
      to participate in such litigation and to retain its own counsel at such
      indemnified party’s own expense. No indemnifying party shall (i) without the
      prior written consent of the indemnified parties (which consent shall not be
      unreasonably withheld), settle or compromise or consent to the entry of any
      judgment with respect to any litigation, or any investigation or proceeding
      by
      any governmental agency or body, commenced or threatened, or any claim
      whatsoever in respect of which indemnification or contribution could be sought
      under this Section 4 (whether or not the indemnified parties are actual or
      potential parties thereto), unless such settlement, compromise or consent (A)
      includes an unconditional release of each indemnified party from all liability
      arising out of such litigation, investigation, proceeding or claim and (B)
      does
      not include a statement as to or an admission of fault, culpability or a failure
      to act by or on behalf of any indemnified party or (ii) be liable for any
      settlement of any such action effected without its prior written consent (which
      consent shall not be unreasonably withheld).

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    (d)  Notwithstanding
      clause (ii) of Section 4(c), if at any time an indemnified party shall have
      requested an indemnifying party to reimburse the indemnified party for fees
      and
      expenses of counsel, such indemnifying party agrees that, subject to the proviso
      in the last paragraph of Section 4.1(a), it shall be liable for any settlement
      of the nature contemplated by Section 4(a)(ii) effected without its written
      consent if (i) such settlement is entered into more than 60 days after receipt
      by such indemnifying party of the aforesaid request, (ii) such indemnifying
      party shall have received notice of the terms of such settlement at least 30
      days prior to such settlement being entered into and (iii) such indemnifying
      party shall not have reimbursed such indemnified party in accordance with such
      request prior to the date of such settlement.

     

    (e)  If
      the
      indemnification provided for in this Section 4 is for any reason unavailable
      to
      or insufficient to hold harmless an indemnified party in respect of any losses,
      liabilities, claims, damages or expenses referred to therein, then each
      indemnifying party shall contribute to the aggregate amount of such losses,
      liabilities, claims, damages and expenses incurred by such indemnified party,
      as
      incurred, in such proportion as is appropriate to reflect the relative fault
      of
      the Company on the one hand and the Holders on the other hand in connection
      with
      the statements or omissions which resulted in such losses, liabilities, claims,
      damages or expenses, as well as any other relevant equitable
      considerations.

     

    The
      relative fault of the Company on the one hand and the Holders on the other
      hand
      shall be determined by reference to, among other things, whether any such untrue
      or alleged untrue statement of a material fact or omission or alleged omission
      to state a material fact relates to information supplied by the Company, or
      by
      the Holders and the parties’ relative intent, knowledge, access to information
      and opportunity to correct or prevent such statement or omission.

     

    The
      Company and the Holders agree that it would not be just and equitable if
      contribution pursuant to this Section 4 were determined by pro rata allocation
      or by any other method of allocation which does not take account of the
      equitable considerations referred to above in this Section 4. The aggregate
      amount of losses, liabilities, claims, damages and expenses incurred and
      documented by an indemnified party and referred to above in this Section 4
      shall
      be deemed to include any legal or other expenses reasonably incurred by such
      indemnified party in investigating, preparing or defending against any
      litigation, or any investigation or proceeding by any governmental agency or
      body, commenced or threatened, or any claim whatsoever based upon any such
      untrue or alleged untrue statement or omission or alleged omission.

     

    Notwithstanding
      the provisions of this Section 4, no Purchaser shall be required to contribute
      any amount in excess of the amount by which the total price at which the
      Securities sold by it were offered exceeds the amount of any damages which
      such
      Purchaser has otherwise been required to pay by reason of such untrue or alleged
      untrue statement or omission or alleged omission.

     

    No
      Person
      guilty of fraudulent misrepresentation (within the meaning of Section 11(f)
      of
      the 1933 Act) shall be entitled to contribution from any Person who was not
      guilty of such fraudulent misrepresentation.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    For
      purposes of this Section 4, each Person, if any, who controls any Purchaser
      or
      any Holder within the meaning of Section 15 of the 1933 Act or Section 20 of
      the
      1934 Act shall have the same rights to contribution as such Purchaser or the
      Holder, and each director of the Company, and each Person, if any, who controls
      the Company within the meaning of Section 15 of the 1933 Act or Section 20
      of
      the 1934 Act shall have the same rights to contribution as the Company. The
      obligations of the Company, each Purchaser and the Holders pursuant to this
      Section 4 shall be in addition to any liability that such party may otherwise
      have.

     

    5.  Miscellaneous.

     

    5.1  Rule
      144 and Rule 144A.
      During
      the Effectiveness Period, for so long as the Company is subject to the reporting
      requirements of Section 13 or 15(d) of the 1934 Act, the Company covenants
      that
      it will file the reports required to be filed by it under Section 13 of 15(d)
      of
      the 1934 Act and the rules and regulations adopted by the SEC thereunder. If
      during the Effectiveness Period the Company ceases to be so required to file
      such reports, the Company covenants that it will upon the request of any Holder
      of Registrable Securities (a) make publicly available such information as is
      necessary to permit sales pursuant to Rule 144 under the 1933 Act, (b) deliver
      such information to a prospective purchaser as is necessary to permit sales
      pursuant to Rule 144A under the 1933 Act and it will take such further action
      as
      any Holder of Registrable Securities may reasonably request for such purpose,
      and (c) take such further action that is reasonable in the circumstances, in
      each case, to the extent required from time to time to enable such Holder to
      sell its Registrable Securities without registration under the 1933 Act within
      the limitation of the exemptions provided by (i) Rule 144 under the 1933 Act,
      as
      such Rule may be amended from time to time, (ii) Rule 144A under the 1933 Act,
      as such Rule may be amended from time to time, or (iii) any similar rules or
      regulations hereafter adopted by the SEC. During the Effectiveness Period,
      upon
      the request of any Holder of Registrable Securities, the Company will deliver
      to
      such Holder a written statement as to whether it has complied with such
      requirements.

     

    5.2  No
      Inconsistent Agreements.
      The
      Company has not entered into and the Company shall not, after the date of this
      Agreement, enter into any agreement which is inconsistent in any material
      respect with the rights granted to the Holders of Registrable Securities in
      this
      Agreement or otherwise conflicts with the provisions hereof. The rights granted
      to the Holders hereunder do not and will not for the term of this Agreement
      in
      any way conflict with the rights granted to the holders of any of the Company’s
      other issued and outstanding securities under any such agreements.

     

    5.3  No
      Adverse Actions Affecting Registration Rights.
      Subject
      to the rights of the Company to invoke and maintain a Suspension Period, the
      Company shall not, directly or indirectly, intentionally take any action with
      respect to the Registrable Securities as a class that would adversely affect
      the
      ability of the Holders of Registrable Securities to include such Registrable
      Securities in a registration undertaken pursuant to this Agreement.

     

    5.4  Amendments
      and Waivers.
      The
      provisions of this Agreement, including the provisions of this sentence, may
      not
      be amended, modified or supplemented, and waivers or consents to departures
      from
      the provisions hereof may not be given unless the Company has obtained the
      written consent of the Majority Holders affected by such amendment,
      modification, supplement, waiver or departure. Notwithstanding the foregoing,
      this Agreement may be amended by a written agreement between the Company and
      the
      Purchasers, without the consent of the Holders of the Registrable Securities,
      in
      order to cure any ambiguity or to correct or supplement any provision contained
      herein, provided that no such amendment shall adversely affect the interest
      of
      the Holders of Registrable Securities. Each Holder of Registrable Securities
      outstanding at the time of any amendment, modification, waiver or consent
      pursuant to this Section 5.4, shall be bound by such amendment, modification,
      waiver or consent, whether or not any notice or writing indicating such
      amendment, modification, waiver or consent is delivered to such
      Holder.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    5.5  Notices.
      All
      notices and other communications provided for or permitted hereunder shall
      be
      made in writing by hand delivery, registered first-class mail, facsimile, or
      any
      courier guaranteeing overnight delivery (a) if to a Holder, at the most current
      address given by such Holder to the Company in a Questionnaire or by means
      of a
      notice given in accordance with the provisions of this Section 5.5, which
      address initially is the address set forth in the Purchase Agreement with
      respect to the Purchasers; and (b) if to the Company, initially at the Company’s
      address set forth in the Purchase Agreement, and thereafter at such other
      address of which notice is given in accordance with the provisions of this
      Section 5.5.

     

    All
      such
      notices and communications shall be deemed to have been duly given: at the
      time
      delivered by hand, if personally delivered; two business days after being
      deposited in the mail, postage prepaid, if mailed; when receipt is acknowledged,
      if sent by facsimile; and on the next business day if timely delivered to an
      overnight courier.

     

    So
      long
      as the Notes remain outstanding, copies of all such notices, demands, or other
      communications shall be concurrently delivered by the person giving the same
      to
      the Trustee under the Indenture, at the address specified in such
      Indenture.

     

    5.6  Successors
      and Assigns.
      This
      Agreement shall inure to the benefit of and be binding upon the successors,
      assigns and transferees of each of the parties, including, without limitation
      and without the need for an express assignment, subsequent Holders; provided
      that
      nothing herein shall be deemed to permit any assignment, transfer or other
      disposition of Registrable Securities in violation of the terms of the Purchase
      Agreement or the Indenture. If any transferee of any Holder shall acquire
      Registrable Securities, in any manner, whether by operation of law or otherwise,
      such Registrable Securities shall be held subject to all of the terms of this
      Agreement, and by taking and holding such Registrable Securities such person
      shall be conclusively deemed to have agreed to be bound by and to perform all
      of
      the terms and provisions of this Agreement, including the restrictions on resale
      set forth in this Agreement and, if applicable, the Purchase Agreement, and
      such
      person shall be entitled to receive the benefits hereof.

     

    5.7  Third
      Party Beneficiaries.
      Each
      Purchaser (even if such Purchaser is not a Holder of Registrable Securities)
      shall be a third party beneficiary to the agreements made hereunder between
      the
      Company, on the one hand, and the Holders, on the other hand, and shall have
      the
      right to enforce such agreements directly to the extent it deems such
      enforcement necessary or advisable to protect its rights or the rights of
      Holders hereunder. Each Holder of Registrable Securities shall be a third party
      beneficiary to the agreements made hereunder between the Company, on the one
      hand, and the Purchasers, on the other hand, and shall have the right to enforce
      such agreements directly to the extent it deems such enforcement necessary
      or
      advisable to protect its rights hereunder.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    5.8  Specific
      Enforcement.
      Without
      limiting the remedies available to the Purchasers and the Holders, the Company
      acknowledges that any failure by the Company to comply with its obligations
      under Section 2.1 hereof may result in material irreparable injury to the
      Purchasers or the Holders for which there is no adequate remedy at law, that
      it
      may not be possible to measure damages for such injuries precisely and that,
      in
      the event of any such failure, the Purchasers or any Holder may seek such relief
      as may be required to specifically enforce the Company’s obligations under
      Section 2.1 hereof; provided,
      however,
      that
      without limiting the ability of the Initial Purchasers or any Holder to
      specifically enforce such obligations, in the case of any terms of this
      Agreement for which Additional Interest pursuant to Section 2.4 are expressly
      provided as a remedy for a violation of such terms, such Additional Interest
      shall be the sole monetary damages for such violation. .

     

    5.9  Counterparts.
      This
      Agreement may be executed in any number of counterparts and by the parties
      hereto in separate counterparts, each of which when so executed shall be deemed
      to be an original and all of which taken together shall constitute one and
      the
      same agreement.

     

    5.10  Headings.
      The
      headings in this Agreement are for convenience of reference only and shall
      not
      limit or otherwise affect the meaning hereof.

     

    5.11  GOVERNING
      LAW.
      THIS
      AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
      THE
      STATE OF NEW YORK.

     

    5.12  Severability.
      In the
      event that any one or more of the provisions contained herein, or the
      application thereof in any circumstance, is held invalid, illegal or
      unenforceable, the validity, legality and enforceability of any such provision
      in every other respect and of the remaining provisions contained herein shall
      not be affected or impaired thereby.

     

    5.13  Entire
      Agreement.
      This
      Agreement is intended by the parties as a final expression of their agreement
      and intended to be a complete and exclusive statement of the agreement and
      understanding of the parties hereto in respect of the subject matter contained
      herein. There are no restrictions, promises, warranties or undertakings, other
      than those set forth or referred to herein with respect to the registration
      rights granted by the Company with respect to the Registrable Securities. This
      Agreement supersedes all prior agreements and understandings between the parties
      with respect to such subject matter.

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

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

     

    ICONIX
      BRAND GROUP, INC.

     

     

    By  
      /s/ Neil
      Cole                                          

    Name:
      Neil Cole

    Title:
      Chairman, President and CEO

     

     

     

     

     

    
      Registration
        Rights Agreement

      Signature
        Page

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Confirmed
      and accepted as

    of
      the
      date first above written:

     

    

     

    MERRILL
      LYNCH, PIERCE, FENNER & SMITH 

    INCORPORATED

     

     

    By: 
      /s/ Laurent
      Gaudry                             

    Name:
      Laurent Gaudry

    Title:
      Director

     

    

     

    LEHMAN
      BROTHERS INC.

     

     

    By: 
      /s/ Dana
      Weinstein                             

    Name:
      Dana Weinstein

    Title:
      Senior Vice President

     

     

     

    

     

    Registration
      Rights Agreement

    Signature
      Page

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Schedule
      A

     

    

     

    Merrill
      Lynch, Pierce, Fenner & Smith

    Incorporated

    Lehman
      Brothers Inc.EXECUTION
      COPY

     

    
      

    

     

     

     

    ICONIX
      BRAND GROUP, INC.

     

    (a
      Delaware corporation)

     

    1.875%
      Convertible Senior Subordinated Notes due 2012

     

    PURCHASE
      AGREEMENT

     

    

     

    

     

    

     

    Dated:
      June 14, 2007

     

     

     

      
        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

    

    Iconix
      Brand Group, Inc.

     

    (a
      Delaware corporation)

     

    $250,000,000

     

    1.875%
      Convertible Senior Subordinated Notes due 2012

     

    PURCHASE
      AGREEMENT

     

    June
      14,
      2007

     

    MERRILL
      LYNCH & CO.

    Merrill
      Lynch, Pierce, Fenner & Smith

    Incorporated

    Lehman
      Brothers Inc.

    

    as
      Initial Purchasers

    

    
      	
              c/o

            	
              Merrill
                Lynch & Co.

            

    

    Merrill
      Lynch, Pierce, Fenner & Smith

    Incorporated

    4
      World
      Financial Center

    New
      York,
      New York 10080

     

    Lehman
      Brothers Inc.

    745
      Seventh Avenue

    New
      York,
      New York 10019

    

     

    Ladies
      and Gentlemen:

     

    Iconix
      Brand Group, Inc., a Delaware corporation (the “Company”), confirms its
      agreement with Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner &
Smith Incorporated (“Merrill Lynch”) and Lehman Brothers Inc. (“Lehman
      Brothers”) (together, the “Initial Purchasers), with respect to the issue and
      sale by the Company and the purchase by the Initial Purchasers of $250,000,000
      aggregate principal amount of the Company’s 1.875% Convertible Senior
      Subordinated Notes due 2012 (the “Securities”), and with respect to the grant by
      the Company to the Initial Purchasers of the option described in Section 2(b)
      hereof to purchase all or any part of an additional $37,500,000 principal amount
      of Securities to cover over-allotments, if any. The aforesaid $250,000,000
      principal amount of Securities (the “Initial Securities”) to be purchased by the
      Initial Purchasers and all or any part of the $37,500,000 principal amount
      of
      Securities subject to the option described in Section 2(b) hereof (the “Option
      Securities”) are hereinafter called, collectively, the “Securities.” The
      Securities are to be issued pursuant to an indenture to be dated as of June
      20,
      2007 (the “Indenture”) between the Company and The Bank of New York, as trustee
      (the “Trustee”). Securities issued in book-entry form will be issued to Cede
& Co. as nominee of the Depository Trust Company (“DTC”) pursuant to a
      letter agreement, to be dated as of the Closing Time (as defined in Section
      2(c)) (the “DTC Agreement”), among the Company, the Trustee and
      DTC.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    The
      Securities are convertible, subject to certain conditions as described in the
      Offering Memorandum (as defined below), prior to maturity into cash up to the
      principal amount of the Securities and, with respect to any excess conversion
      value, into cash, shares of common stock, with $0.001 par value per share,
      of
      the Company (the “Common Stock”), or a combination of cash and Common Stock, at
      the Company’s option in accordance with the terms of the Securities and the
      Indenture.

     

    On
      or
      prior to the Closing Time (as defined in Section 2(c)), the Company will enter
      into a registration rights agreement with the Initial Purchasers (the
“Registration Rights Agreement”), pursuant to which, subject to the conditions
      set forth therein, the Company will be required to file and use its commercially
      reasonable efforts to have declared effective a registration statement (the
      “Registration Statement”) under the 1933 Act to register resales of the
      Securities and the shares of Common Stock issuable upon conversion
      thereof.

     

    The
      Company understands that the Initial Purchasers propose to make an offering
      of
      the Securities on the terms and in the manner set forth herein and agrees that
      the Initial Purchasers may resell, subject to the conditions set forth herein,
      all or a portion of the Securities to purchasers (“Subsequent Purchasers”) at
      any time after this Agreement has been executed and delivered. The Securities
      are to be offered and sold through the Initial Purchasers without being
      registered under the Securities Act of 1933, as amended (the “1933 Act”), in
      reliance upon exemptions therefrom. Pursuant to the terms of the Securities
      and
      the Indenture, investors that acquire Securities may only resell or otherwise
      transfer such Securities if such Securities are hereafter registered under
      the
      1933 Act or if an exemption from the registration requirements of the 1933
      Act
      is available (including the exemption afforded by Rule 144A (“Rule 144A”) of the
      rules and regulations promulgated under the 1933 Act by the Securities and
      Exchange Commission (the “Commission”)).

     

    The
      Company has (a) prepared and delivered to the Initial Purchasers copies of
      a
      preliminary offering memorandum dated June 13, 2007 (the “Preliminary Offering
      Memorandum”) and (b) has prepared and will deliver to the Initial Purchasers, as
      promptly as possible prior to the Closing Time, copies of a final offering
      memorandum dated June 14, 2007 (the “Final Offering Memorandum”), each for use
      by such Initial Purchasers in connection with its solicitation of purchases
      of,
      or offering of, the Securities. “Offering Memorandum” means, with respect to any
      date or time referred to in this Agreement, the most recent offering memorandum
      (whether the Preliminary Offering Memorandum or the Final Offering Memorandum,
      as amended and supplemented at such time), including exhibits thereto, if any,
      and any documents incorporated therein by reference, which has been prepared
      and
      delivered by the Company to the Initial Purchasers in connection with its
      solicitation of purchases of, or offering of, the Securities.

     

    All
      references in this Agreement to financial statements and schedules and other
      information which is “contained,” “included” or “stated” in the Offering
      Memorandum (or other references of like import) shall be deemed to also include
      all such financial statements and schedules and other information, respectively,
      which are incorporated by reference in the Offering Memorandum; and all
      references in this Agreement to amendments or supplements to the Offering
      Memorandum shall be deemed to also include the filing after the date of such
      Offering Memorandum of any document under the Securities Exchange Act of 1934,
      as amended (the “1934 Act”) which is incorporated by reference in the Offering
      Memorandum.

     

    SECTION
      1.  Representations
      and Warranties by the Company.

     

    (a)  Representations
      and Warranties.
      The
      Company represents and warrants to each Initial Purchaser as of the date hereof
      and as of Closing Time referred to in Section 2(c) hereof, and as of each Date
      of Delivery (if any) referred to in Section 2(b) hereof, and agrees with each
      Initial Purchaser, as follows:

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (i)  Disclosure
      Package and Final Offering Memorandum.
      As of
      the Applicable Time (as defined below), neither (x) the Preliminary Offering
      Memorandum as of the Applicable Time as supplemented by the final pricing term
      sheet, in the form attached hereto as Schedule C (the “Pricing Supplement”) and
      as otherwise supplemented or amended at such time, all considered together
      (collectively, the “Disclosure Package”), nor (y) any individual Supplemental
      Offering Materials (as defined below), when considered together with the
      Disclosure Package, included any untrue statement of a material fact or omitted
      to state a material fact necessary in order to make the statements therein,
      in
      the light of the circumstances under which they were made, not misleading.
      “Applicable Time” means 8:00 a.m. (Eastern time) on June 14, 2007 or such
      other time as agreed by the Company and the Initial Purchasers. 

     

    “Supplemental
      Offering Materials” means any “written communication” (within the meaning of the
      1933 Act Regulations (as defined below)) prepared by or on behalf of the
      Company, or used or referred to by the Company, that constitutes an offer to
      sell or a solicitation of an offer to buy the Securities other than the
      Preliminary Offering Memorandum or the Final Offering Memorandum or amendments
      or supplements thereto (including the Pricing Supplement), including, without
      limitation, any “written communication” used during any road show relating to
      the Securities. 

     

    As
      of its
      issue date and as of the Closing Time (and, if any Option Securities are
      purchased, at the Date of Delivery), the Final Offering Memorandum will not
      include an untrue statement of a material fact or omit to state a material
      fact
      necessary in order to make the statements therein, in the light of the
      circumstances under which they were made, not misleading.

     

    The
      representations and warranties in this subsection shall not apply to statements
      in or omissions from the Disclosure Package, any supplemental offering materials
      or the Final Offering Memorandum made in reliance upon and in conformity with
      written information furnished to the Company by the Initial Purchasers or either
      of them expressly for use therein.

     

    (ii)  Incorporated
      Documents.
      The
      Offering Memorandum as delivered from to time to time shall incorporate by
      reference the most recent Annual Report of the Company on Form 10-K filed with
      the Commission and each Quarterly Report of the Company on Form 10-Q and each
      Current Report of the Company on Form 8-K filed with the Commission since the
      end of the fiscal year to which such Annual Report relates. The documents
      incorporated or deemed to be incorporated by reference in the Offering
      Memorandum at the time they were or hereafter are filed with the Commission
      complied and will comply in all material respects with the requirements of
      the
      1934 Act and the rules and regulations of the Commission thereunder (the “1934
      Act Regulations”), and, when read together with the other information in the
      Disclosure Package at the Applicable Time, and the Disclosure Package and Final
      Offering Memorandum at the Closing Time, did not and will not contain an untrue
      statement of a material fact or omit to state a material fact required to be
      stated therein or necessary to make the statements therein not
      misleading.

     

    (iii)  Independent
      Accountants.
      The
      accountants who certified the financial statements and supporting schedules
      included in the Disclosure Package and Final Offering Memorandum are independent
      public accountants as required by the 1933 Act and the rules and regulations
      thereunder (the “1933 Act Regulations”).

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (iv)  Financial
      Statements.
      The
      financial statements included in the Disclosure Package and Final Offering
      Memorandum, together with the related schedules and notes, present fairly in
      all
      material respects the financial position of the Company, its consolidated
      subsidiaries at the dates indicated and the statement of operations,
      stockholders’ equity and cash flows of the Company and its consolidated
      subsidiaries for the periods specified; said financial statements have been
      prepared in conformity with generally accepted accounting principles (“GAAP”)
      applied on a consistent basis throughout the periods involved, except as set
      forth in the financial statements. The
      financial statements of the businesses or entities acquired by the Company
      included in the Disclosure Package and Final Offering Memorandum, or
      incorporated by reference therein, together with any related schedules and
      notes, present fairly in all material respects the financial position of such
      business or entities, their consolidated subsidiaries, if any, at the dates
      indicated and the statement of operations, stockholders’ equity and cash flows
      of such businesses or entities for the periods specified; said financial
      statements have been prepared in conformity with GAAP applied on a consistent
      basis throughout the periods involved, except as set forth in the financial
      statements.
      The
      supporting schedules, if any, included in the Disclosure Package and Final
      Offering Memorandum, present fairly in accordance with GAAP the information
      required to be stated therein. The selected financial data and the summary
      financial information included in the Disclosure Package and Final Offering
      Memorandum present fairly the information shown therein and have been compiled
      on a basis consistent with that of the audited financial statements included
      in
      the Disclosure Package and Final Offering Memorandum. The pro forma financial
      statements and the related notes thereto included in the Disclosure Package
      and
      Final Offering Memorandum present fairly in all material respects the
      information shown therein, have been prepared in accordance with the
      Commission’s rules and guidelines with respect to pro forma financial statements
      and have been properly compiled on the bases described therein, and the
      assumptions used in the preparation thereof are reasonable and the adjustments
      used therein are appropriate to give effect to the transactions and
      circumstances referred to therein.

     

    (v)  No
      Material Adverse Change in Business.
      Since
      the respective dates as of which information is given in the Disclosure Package
      and Final Offering Memorandum, except as otherwise stated therein, (A) there
      has
      been no material adverse change in the condition, financial or otherwise, or
      in
      the earnings, business affairs or business prospects of the Company and its
      subsidiaries considered as one enterprise, whether or not arising in the
      ordinary course of business (a “Material Adverse Effect”), (B) there have been
      no transactions entered into by the Company or any of its subsidiaries, other
      than those in the ordinary course of business, which are material with respect
      to the Company and its subsidiaries considered as one enterprise, and (C) there
      has been no dividend or distribution of any kind declared, paid or made by
      the
      Company on any class of its capital stock.

     

    (vi)  Good
      Standing of the Company.
      The
      Company has been duly organized and is validly existing as a corporation in
      good
      standing under the laws of the State of Delaware and has corporate power and
      authority to own, lease and operate its properties and to conduct its business
      as described in the Disclosure Package and Final Offering Memorandum and to
      enter into and perform its obligations under this Agreement; and the Company
      is
      duly qualified as a foreign corporation to transact business and is in good
      standing in each other jurisdiction in which such qualification is required,
      whether by reason of the ownership or leasing of property or the conduct of
      business, except where the failure so to qualify or to be in good standing
      would
      not result in a Material Adverse Effect.

     

    (vii)  Good
      Standing of its Subsidiaries.
      Each
“significant subsidiary” of the Company (as such term is defined in Rule 1-02 of
      Regulation S-X) (each a “Subsidiary” and, collectively, the “Subsidiaries”) has
      been duly organized and is validly existing as a corporation in good standing
      under the laws of the jurisdiction of its incorporation, has corporate power
      and
      authority to own, lease and operate its properties and to conduct its business
      as described in the Disclosure Package and Final Offering Memorandum and is
      duly
      qualified as a foreign corporation to transact business and is in good standing
      in each jurisdiction in which such qualification is required, whether by reason
      of the ownership or leasing of property or the conduct of business, except
      where
      the failure so to qualify or to be in good standing would not result in a
      Material Adverse Effect; except as otherwise disclosed in the Disclosure Package
      and Final Offering Memorandum, all of the issued and outstanding capital stock
      of each such Subsidiary has been duly authorized and validly issued, is fully
      paid and non-assessable and is owned by the Company, directly or through
      subsidiaries, free and clear of any security interest, mortgage, pledge, lien,
      encumbrance, claim or equity; none of the outstanding shares of capital stock
      of
      any Subsidiary was issued in violation of the preemptive or similar rights
      of
      any securityholder of such Subsidiary. 

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (viii)  Capitalization
      and Other Capital Stock Matters.
      The
      authorized, issued and outstanding capital stock of the Company is as set forth
      in the Disclosure Package and Final Offering Memorandum in the column entitled
      “Actual” under the caption “Capitalization” as of the respective dates set forth
      therein, and the authorized, issued and outstanding number of shares of Common
      Stock of the Company is as set forth in the section entitled “Description of
      Existing Securities” in the Disclosure Package and Final Offering Memorandum as
      of the dates set forth therein, and there have been no changes to such amounts
      (except for subsequent issuances, if any, pursuant to this Agreement, described
      in the Disclosure Package and Final Offering Memorandum, pursuant to
      reservations, agreements or employee benefit plans referred to in the Disclosure
      Package and Final Offering Memorandum or pursuant to the exercise of convertible
      securities or options referred to in the Disclosure Package and Final Offering
      Memorandum). The Common Stock conforms in all material respects to the
      description thereof set forth in the Disclosure Package and Final Offering
      Memorandum. All of the outstanding shares of Common Stock have been duly
      authorized and are validly issued, fully paid and nonassessable. Upon issuance
      and delivery of the Securities in accordance with this Agreement and the
      Indenture, the Securities will be convertible, into cash up to the principal
      amount of the Securities and, with respect to any excess conversion value,
      into
      cash, shares of Common Stock, or a combination of cash and Common Stock, at
      the
      Company’s option in accordance with the terms of the Securities and the
      Indenture; the shares of Common Stock issuable upon conversion of the Securities
      have been duly authorized and reserved for issuance upon such conversion by
      all
      necessary corporate action and such shares, when issued upon such conversion
      in
      accordance with the terms of the Securities, will be validly issued and will
      be
      fully paid and non-assessable; no holder of such shares will be subject to
      personal liability by reason of being such a holder; and the issuance of such
      shares upon such conversion will not be subject to the preemptive or other
      similar rights of any securityholder of the Company. None of the outstanding
      shares of Common Stock was issued in violation of any preemptive rights or
      other
      similar rights granted by the Company to any securityholder of the Company.
      There are no authorized or outstanding options, warrants, preemptive rights,
      rights of first refusal or other rights to purchase, or equity or debt
      securities convertible into or exchangeable or exercisable for, any capital
      stock of the Company or its subsidiaries other than those described in the
      Disclosure Package and Final Offering Memorandum (except for subsequent
      issuances, if any, pursuant to this Agreement, pursuant to reservations,
      agreements, employee benefit plans referred to in the Disclosure Package and
      Final Offering Memorandum or pursuant to the exercise of convertible securities
      or options referred to in the Disclosure Package and Final Offering Memorandum).
      The description, if any, of the Company’s stock option, stock bonus and other
      stock plans or arrangements, and the options or other rights granted thereunder,
      set forth or incorporated by reference in the Disclosure Package and Final
      Offering Memorandum, accurately and fairly describes such plans, arrangements,
      options and rights in all material respects.

     

    
      
        
        

      

      
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    (ix)  Stock
      Exchange Listing.
      The
      Common Stock is registered pursuant to Section 12(b) of the 1934 Act and is
      listed on the Nasdaq Global Market, and the Company has taken no action designed
      to, or likely to have the effect of, terminating the registration of the Common
      Stock under the 1934 Act or delisting the Common Stock from the Nasdaq Global
      Market, nor has the Company received any notification that the Commission or
      the
      Nasdaq Global Market is contemplating terminating such registration or
      listing.

     

    (x)  Corporate
      Power.
      The
      Company has corporate right, power and authority to execute and deliver this
      Agreement, the Securities, the Indenture, and the Registration Rights Agreement
      (collectively, the “Transaction Documents”) and to perform its obligations
      hereunder and thereunder; and all action required to be taken for the due and
      proper authorization, execution and delivery of each of the Transaction
      Documents and the consummation of the transactions contemplated thereby has
      been
      duly and validly taken.

     

    (xi)  Authorization
      of Agreement.
      This
      Agreement has been duly authorized, executed and delivered by, and is a valid
      and binding agreement of, the Company, enforceable in accordance with its terms,
      except as the enforcement thereof may be limited by bankruptcy, insolvency
      (including, without limitation, all laws relating to fraudulent transfers),
      reorganization, moratorium or other similar laws relating to or affecting
      enforcement of creditors’ rights generally, by general principles of equity
      (regardless of whether enforcement is considered in a proceeding in equity
      or at
      law) and, as to rights of indemnification, by principles of public
      policy.

     

    (xii)  Authorization
      of the Indenture.
      The
      Indenture has been duly authorized by the Company and, when executed and
      delivered by the Company and the Trustee, will constitute a valid and binding
      agreement of the Company, enforceable against the Company in accordance with
      its
      terms, except as the enforcement thereof may be limited by bankruptcy,
      insolvency (including, without limitation, all laws relating to fraudulent
      transfers), reorganization, moratorium or other similar laws relating to or
      affecting enforcement of creditors’ rights generally and by general principles
      of equity (regardless of whether enforcement is considered in a proceeding
      in
      equity or at law).

     

    (xiii)  Authorization
      of the Registration Rights Agreement.
      The
      Registration Rights Agreement has been duly authorized by the Company and,
      at
      the Closing Time, will be duly executed and delivered by, and will constitute
      a
      valid and binding agreement of, the Company, enforceable in accordance with
      its
      terms, except as the enforcement thereof may be limited by bankruptcy,
      insolvency (including, without limitation, all laws relating to fraudulent
      transfers), reorganization, moratorium or other similar laws relating to or
      affecting enforcement of creditors’ rights generally, by general principles of
      equity (regardless of whether enforcement is considered in a proceeding in
      equity or at law) and, as to rights of indemnification, by principles of public
      policy.

     

    (xiv)  Authorization
      of the Securities.
      The
      Securities have been duly authorized and, at Closing Time, will have been duly
      executed by the Company and, when authenticated, issued and delivered in the
      manner provided for in the Indenture and delivered against payment of the
      purchase price therefor as provided in this Agreement, will constitute valid
      and
      binding obligations of the Company, enforceable against the Company in
      accordance with their terms, except as the enforcement thereof may be limited
      by
      bankruptcy, insolvency (including, without limitation, all laws relating to
      fraudulent transfers) reorganization, moratorium or other similar laws affecting
      enforcement of creditors’ rights generally and by general principles of equity
      (regardless of whether enforcement is considered in a proceeding in equity
      or at
      law), and will be in the form contemplated by, and entitled to the benefits
      of,
      the Indenture.

     

    
      
        
        

      

      
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    (xv)  Description
      of Transaction Documents.
      The
      description of the Transaction Documents and the rights, preferences and
      privileges of the capital stock of the Company, including shares of Common
      Stock
      issuable upon conversion of the Securities, contained in the Disclosure Package
      and Final Offering Memorandum, are accurate in all material
      respects.

     

    (xvi)  Absence
      of Defaults and Conflicts.
      Neither
      the Company nor any of its subsidiaries is in violation of its charter or
      by-laws or in default in the performance or observance of any obligation,
      agreement, covenant or condition contained in any contract, indenture, mortgage,
      deed of trust, loan or credit agreement, note, lease or other agreement or
      instrument to which the Company or any of its subsidiaries is a party or by
      which any of them may be bound, or to which any of the property or assets of
      the
      Company or any subsidiary is subject (collectively, “Agreements and
      Instruments”) except for such defaults that would not result in a Material
      Adverse Effect; and the execution, delivery and performance of the Transaction
      Documents and any other agreement or instrument entered into or issued or to
      be
      entered into or issued by the Company in connection with the transactions
      contemplated hereby or thereby or in the Disclosure Package and Final Offering
      Memorandum and the consummation of the transactions contemplated herein and
      in
      the Disclosure Package and Final Offering Memorandum (including the issuance
      and
      sale of the Securities and the use of the proceeds from the sale of the
      Securities as described in the Disclosure Package and Final Offering Memorandum
      under the caption “Use of Proceeds”) and compliance by the Company with its
      obligations hereunder have been duly authorized by all necessary corporate
      actions and do not and will not, whether with or without the giving of notice
      or
      passage of time or both, conflict with or constitute a breach of, or default
      or
      Repayment Event (as defined below), or result in the creation or imposition
      of
      any lien, charge or encumbrance upon any property or assets of the Company
      or
      any subsidiary pursuant to, the Agreements and Instruments (except for such
      conflicts, breaches, defaults or Repayment Events or liens, charges or
      encumbrances that would not result in a Material Adverse Effect), nor will
      such
      action result in any violation of the provisions of the charter or by-laws
      of
      the Company or its subsidiaries or any applicable law, statute, rule,
      regulation, judgment, order, writ or decree of any government, government
      instrumentality or court, domestic or foreign, having jurisdiction over the
      Company or any subsidiary or any of their assets, properties or operations.
      As
      used herein, a “Repayment Event” means any event or condition which gives the
      holder of any note, debenture or other evidence of indebtedness (or any person
      acting on such holder’s behalf) the right to require the repurchase, redemption
      or repayment of all or a portion of such indebtedness by the Company or any
      subsidiary.

     

    (xvii)  Absence
      of Labor Dispute.
      No
      labor dispute with the employees of the Company or any subsidiary exists or,
      to
      the knowledge of the Company, is imminent, and the Company is not aware of
      any
      existing or imminent labor disturbance by the employees of any of its or any
      subsidiary’s principal suppliers, manufacturers, customers or contractors,
      which, in either case, would result in a Material Adverse Effect.

     

    (xviii)  Absence
      of Proceedings.
      There
      is no action, suit, proceeding, inquiry or investigation before or brought
      by
      any court or governmental agency or body, domestic or foreign, now pending,
      or,
      to the knowledge of the Company, threatened, against or affecting the Company
      or
      any subsidiary, which is required to be disclosed in the Disclosure Package
      and
      Final Offering Memorandum (other than as disclosed therein), or which could
      reasonably be expected to result in a Material Adverse Effect, or which might
      reasonably be expected to materially and adversely affect the properties or
      assets thereof or the consummation of the transactions contemplated in this
      Agreement or the performance by the Company of its obligations hereunder; the
      aggregate of all pending legal or governmental proceedings to which the Company
      or any subsidiary is a party or of which any of their respective property or
      assets is the subject which are not described in the Disclosure Package and
      Final Offering Memorandum, including ordinary routine litigation incidental
      to
      the business, could not reasonably be expected to result in a Material Adverse
      Effect.

     

    
      
        
        

      

      
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    (xix)  Possession
      of Intellectual Property.
      The
      Company and its Subsidiaries own, possess, license, or can acquire on reasonable
      terms all necessary or appropriate rights in, all trademarks, servicemarks,
      trade names, patents, copyrights and any registrations and applications for
      each
      of the foregoing, domain names, trade secrets, know-how (including other
      unpatented and/or unpatentable proprietary or confidential information, systems
      or procedures), inventions, technology and other similar intellectual property
      necessary to conduct its business as now conducted (collectively, “Intellectual
      Property Rights”). The Company is not a party to or bound by any licenses or
      agreements with respect to the Intellectual Property Rights of any other person
      or entity that are required to be set forth in the Disclosure Package and Final
      Offering Memorandum and are not described therein accurately in all material
      respects. Neither Company nor any of its Subsidiaries has received any notice
      of
      and is not in breach of any of its material obligations under any licenses
      or
      agreements to which it is a party or by which it is bound with respect to any
      Intellectual Property Rights and, to the Company’s knowledge, no other party to
      such licenses or agreements is in material breach thereof. None of the
      technology employed by the Company has been obtained or is being used by the
      Company in violation of any contractual obligation binding on the Company or,
      to
      the Company’s knowledge, any of its officers, directors or employees. Except as
      set forth in the Disclosure Package and Final Offering Memorandum or as would
      not, individually or in the aggregate, reasonably be expected to result in
      a
      Material Adverse Effect, (i) to the Company’s knowledge, there is no
      infringement by any third party of any Intellectual Property Rights owned by
      or
      exclusively licensed to the Company or any of its Subsidiaries; (ii) there
      is no pending or, to the Company’s knowledge, threatened (in writing) action,
      suit, proceeding or claim by others against the Company or any of its
      Subsidiaries for any claim of infringement or misappropriation by the Company
      or
      any of its Subsidiaries or conflict with asserted Intellectual Property Rights
      of such others or challenging the Company’s or such Subsidiary’s rights in or to
      any Intellectual Property Rights owned by or exclusively licensed to the
      Company, and the Company is unaware of any existing facts which would form
      a
      reasonable basis for any such claims; and (iii) there is no pending or, to
      the
      Company’s knowledge, threatened action, suit, proceeding or claim by others
      against the Company or any of its Subsidiaries challenging the validity or
      scope
      of any Intellectual Property Rights owned by or exclusively licensed to the
      Company, and the Company is unaware of any existing facts which would form
      a
      reasonable basis for any such claim; to the Company’s knowledge, such
      Intellectual Property Rights owned by, or exclusively licensed to, the Company
      are valid and enforceable.

     

    (xx)  Absence
      of Further Requirements.
      No
      filing with, or authorization, approval, consent, license, order, registration,
      qualification or decree of, any court or governmental authority or agency is
      necessary or required for the performance by the Company of its obligations
      hereunder, in connection with the offering, issuance or sale of the Securities
      hereunder or the consummation of the transactions contemplated by the
      Transaction Documents, except (A) such as have been already obtained or will
      be
      made on or prior to the Closing Time, (B) as may be required under the
      securities or blue sky laws of the various states in which the Securities will
      be offered or sold, the 1933 Act with respect to the registration of the resale
      of the Securities under the 1933 Act pursuant to the Registration Rights
      Agreement and the Trust Indenture Act of 1939, and (C) the listing requirements
      of the Nasdaq Global Market, except those which, singly or in the aggregate,
      if
      not made would not result in a Material Adverse Effect or would have a material
      effect on the consummation of the transactions contemplated by the Transaction
      Documents.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (xxi)  Absence
      of Manipulation.
      Neither
      the Company nor any affiliate of the Company under the “control,” as such term
      is defined in Rule 405 under the 1933 Act, of the Company nor, to the Company’s
      knowledge, any affiliate of the Company not under the “control” of the Company
      has taken, nor will the Company or any such affiliate of the Company take,
      directly or indirectly, any action which is designed to or which has constituted
      or which would be expected to cause or result in stabilization or manipulation
      of the price of any security of the Company to facilitate the sale or resale
      of
      the Securities.

     

    (xxii)  Possession
      of Licenses and Permits.
      The
      Company and its subsidiaries possess such permits, licenses, approvals, consents
      and other authorizations (collectively, “Governmental Licenses”) issued by the
      appropriate federal, state, local or foreign regulatory agencies or bodies
      necessary to conduct the business now operated by them, except where the failure
      so to possess would not, singly or in the aggregate, result in a Material
      Adverse Effect; the Company and its subsidiaries are in compliance with the
      terms and conditions of all such Governmental Licenses, except where the failure
      so to comply would not, singly or in the aggregate, result in a Material Adverse
      Effect; all of the Governmental Licenses are valid and in full force and effect,
      except when the invalidity of such Governmental Licenses or the failure of
      such
      Governmental Licenses to be in full force and effect would not, singly or in
      the
      aggregate, result in a Material Adverse Effect; and neither the Company nor
      any
      of its subsidiaries has received any notice of proceedings relating to the
      revocation or modification of any such Governmental Licenses which, singly
      or in
      the aggregate, if the subject of an unfavorable decision, ruling or finding,
      would result in a Material Adverse Effect.

     

    (xxiii)  Leased
      Property.
      All of
      the leases and subleases material to the business of the Company and its
      subsidiaries, considered as one enterprise, and under which the Company or
      any
      of its subsidiaries holds properties described in the Disclosure Package and
      Final Offering Memorandum, are in full force and effect, and neither the Company
      nor any subsidiary has any notice of any material claim of any sort that has
      been asserted by anyone adverse to the rights of the Company or any subsidiary
      under any of the leases or subleases mentioned above, or affecting or
      questioning the rights of the Company or such subsidiary to the continued
      possession of the leased or subleased premises under any such lease or
      sublease.

     

    (xxiv)  Investment
      Company Act.
      The
      Company is not required, and after giving effect to the issuance and sale of
      the
      offered Securities and the application of the net proceeds therefrom as
      described in the Disclosure Package and in the Final Offering Memorandum under
      “Use of Proceeds,” will not be required, to register as an “investment company”
under the Investment Company Act of 1940, as amended (the “1940
      Act”).

     

    (xxv)  Accounting
      Controls and Disclosure Controls.
      (A) The
      Company and each of its subsidiaries maintain a system of internal accounting
      controls sufficient to provide reasonable assurances that (A) transactions
      are
      executed in accordance with management’s general or specific authorization; (B)
      transactions are recorded as necessary to permit preparation of financial
      statements in conformity with GAAP and to maintain accountability for assets;
      (C) access to assets is permitted only in accordance with management’s general
      or specific authorization; and (D) the recorded accountability for assets is
      compared with the existing assets at reasonable intervals and appropriate action
      is taken with respect to any differences. Except as described in the Disclosure
      Package and Final Offering Memorandum, since the end of the Company’s most
      recent audited fiscal year, there has been (1) no material weakness in the
      Company’s internal control over financial reporting (whether or not remediated)
      and (2) no change in the Company’s internal control over financial reporting
      that has materially affected, or is reasonably likely to materially affect,
      the
      Company’s internal control over financial reporting.

     

    
      
        
        

      

      
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    (B) The
      Company and its consolidated subsidiaries employ disclosure controls and
      procedures that are designed to ensure that information required to be disclosed
      by the Company in the reports that it files or submits under the 1934 Act is
      recorded, processed, summarized and reported, within the time periods specified
      in the Commission’s rules and forms, and is accumulated and communicated to the
      Company’s management, including its principal executive officer or officers and
      the principal financial officer or officers, as appropriate, to allow timely
      decisions regarding disclosure.

     

    (xxvi)  Compliance
      with the Sarbanes-Oxley Act.
      There
      is and has been no failure on the part of the Company or any of the Company’s
      directors or officers, in their capacities as such, to comply in all material
      respects with any provision of the Sarbanes-Oxley Act of 2002 and the rules
      and
      regulations promulgated in connection therewith (the “Sarbanes-Oxley Act”),
      including Section 402 related to loans and Sections 302 and 906 related to
      certifications.

     

    (xxvii)  Payment
      of Taxes.
      All
      United States federal income tax returns of the Company and its subsidiaries
      required by law to be filed have been filed and all taxes shown by such returns
      or otherwise assessed, which are due and payable, have been paid, except
      assessments against which appeals have been or will be promptly taken and as
      to
      which adequate reserves have been provided. The United States federal income
      tax
      returns of the Company through the fiscal year ended December 31, 2005 have
      been
      settled and no assessment in connection therewith has been made against the
      Company. The Company and its subsidiaries have filed all other tax returns
      that
      are required to have been filed by them pursuant to applicable foreign, state,
      local or other law except insofar as the failure to file such returns would
      not
      result in a Material Adverse Effect, and has paid all taxes due pursuant to
      such
      returns or pursuant to any assessment received by the Company and its
      subsidiaries, except for such taxes, if any, as are being contested in good
      faith and as to which adequate reserves have been provided. The charges,
      accruals and reserves on the books of the Company in respect of any income
      and
      corporation tax liability for any years not finally determined are adequate
      to
      meet any assessments or re-assessments for additional income tax for any years
      not finally determined, except to the extent of any inadequacy that would not
      result in a Material Adverse Effect. 

     

    (xxviii)  Insurance.
      The
      Company and its subsidiaries carry or are entitled to the benefits of insurance,
      with financially sound and reputable insurers, in such amounts and covering
      such
      risks that is reasonable and appropriate, and all such insurance is in full
      force and effect. The Company has no reason to believe that it or any subsidiary
      will not be able (A) to renew its existing insurance coverage as and when
      such policies expire or (B) to obtain comparable coverage from similar
      institutions as may be necessary or appropriate to conduct its business as
      now
      conducted and at a cost that would not result in a Material Adverse Effect.
      Since January 1, 2004, neither of the Company nor any subsidiary has been denied
      any insurance coverage which it has sought or for which it has applied.

     

    (xxix)  Registration
      Rights.
      There
      are no persons with registration rights or other similar rights to have any
      securities registered by the Company under the 1933 Act, except for those
      registration rights granted in connection with the earn-out provisions under
      the
      acquisition documents relating to the acquisitions of the Company’s Danskin and
      Rocawear brands and other than with respect to the registration of the resale
      of
      the Securities under the 1933 Act pursuant to the Registration Rights Agreement
      or with respect to Securities the resale of which has previously been registered
      under the 1933 Act.

     

    
      
        
        

      

      
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    (xxx)  Similar
      Offerings.
      Neither
      the Company nor to its knowledge any of its Affiliates has, directly or
      indirectly, solicited any offer to buy, sold or offered to sell or otherwise
      negotiated in respect of, or will solicit any offer to buy, sell or offer to
      sell or otherwise negotiate in respect of, in the United States or to any United
      States citizen or resident, any security which is or would be integrated with
      the sale of the Securities in a manner that would require the offered Securities
      to be registered under the 1933 Act.

     

    (xxxi)  Rule
      144A Eligibility.
      The
      Securities are eligible for resale pursuant to Rule 144A and will not be, at
      Closing Time, of the same class as securities listed on a national securities
      exchange registered under Section 6 of the 1934 Act, or quoted in a U.S.
      automated interdealer quotation system.

     

    (xxxii)  No
      General Solicitation.
      None of
      the Company, to its knowledge, its Affiliates or any person acting on its or
      any
      of their behalf (other than the Initial Purchasers, as to whom the Company
      makes
      no representation) has engaged or will engage, in connection with the offering
      of the offered Securities, in any form of general solicitation or general
      advertising within the meaning of Rule 502(c) under the 1933 Act.

     

    (xxxiii)  No
      Registration Required.
      Subject
      to compliance by the Initial Purchasers with the representations and warranties
      of the Initial Purchasers and the procedures set forth in Section 6 hereof,
      it
      is not necessary in connection with the offer, sale and delivery of the offered
      Securities to the Initial Purchasers and to each Subsequent Purchaser in the
      manner contemplated by this Agreement and the Disclosure Package and Final
      Offering Memorandum to register the Securities under the 1933 Act or to qualify
      the Indenture under the Trust Indenture Act of 1939, as amended (the “1939
      Act”).

     

    (xxxiv)  ERISA
      Compliance.
      The
      Company and its subsidiaries and any “employee benefit plan” (as defined under
      the Employee Retirement Income Security Act of 1974, as amended, and the
      regulations and published interpretations thereunder (collectively, “ERISA”))
      established or maintained by the Company, its subsidiaries or their “ERISA
      Affiliates” (as defined below) are in compliance in all material respects with
      ERISA. “ERISA Affiliate” means, with respect to the Company or its subsidiaries,
      any member of any group of organizations described in Section 414 of the
      Internal Revenue Code of 1986, as amended, and the regulations and published
      interpretations thereunder (the “Code”) of which the Company or its subsidiaries
      is a member. No “reportable event” (as defined under ERISA) has occurred or is
      reasonably expected to occur with respect to any “employee benefit plan”
established or maintained by the Company, its subsidiaries or any of their
      ERISA
      Affiliates. No “employee benefit plan” subject to Title IV of ERISA established
      or maintained by the Company, its subsidiaries or any of their ERISA Affiliates,
      if such “employee benefit plan” were terminated, would have any “amount of
      unfunded benefit liabilities” (as defined under ERISA). Neither the Company, its
      subsidiaries nor any of their ERISA Affiliates has incurred or reasonably
      expects to incur any liability under (i) Title IV of ERISA with respect to
      termination of, or withdrawal from, any “employee benefit plan” or (ii) Sections
      412, 4971, 4975 or 4980B of the Code. Each “employee benefit plan” established
      or maintained by the Company, its subsidiaries or any of their ERISA Affiliates
      that is intended to be qualified under Section 401 of the Code is so qualified
      and nothing has occurred, whether by action or failure to act, which would
      cause
      the loss of such qualification.

     

    
      
        
        

      

      
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    (xxxv)  Foreign
      Corrupt Practices Act.
      Neither
      the Company nor, to the knowledge of the Company, any director, officer, agent,
      employee, affiliate or other person acting on behalf of the Company or any
      of
      its subsidiaries is aware of or has taken any action, directly or indirectly,
      that would result in a violation by such persons of the Foreign Corrupt
      Practices Act of 1977, as amended, and the rules and regulations thereunder
      (the
“FCPA”), including, without limitation, making use of the mails or any means or
      instrumentality of interstate commerce corruptly in furtherance of an offer,
      payment, promise to pay or authorization of the payment of any money, or other
      property, gift, promise to give, or authorization of the giving of anything
      of
      value to any “foreign official” (as such term is defined in the FCPA) or any
      foreign political party or official thereof or any candidate for foreign
      political office, in contravention of the FCPA and the Company and, to the
      knowledge of the Company, its affiliates have conducted their businesses in
      compliance with the FCPA and have instituted and maintain policies and
      procedures designed to ensure, and which are reasonably expected to continue
      to
      ensure, continued compliance therewith.

     

    (xxxvi)  Money
      Laundering Laws.
      The
      operations of the Company are and have been conducted at all times in compliance
      with applicable financial recordkeeping and reporting requirements of the
      Currency and Foreign Transactions Reporting Act of 1970, as amended, the money
      laundering statutes of all applicable jurisdictions, the rules and regulations
      thereunder and any related or similar rules, regulations or guidelines, issued,
      administered or enforced by any governmental agency (collectively, the “Money
      Laundering Laws”) and no action, suit or proceeding by or before any court or
      governmental agency, authority or body or any arbitrator involving the Company
      with respect to the Money Laundering Laws is pending or, to the best knowledge
      of the Company, threatened.

     

    (xxxvii)  OFAC.
      Neither
      the Company nor, to the knowledge of the Company, any director, officer, agent,
      employee, affiliate or person acting on behalf of the Company is currently
      subject to any U.S. sanctions administered by the Office of Foreign Assets
      Control of the U.S. Treasury Department (“OFAC”); and the Company will not
      directly or indirectly use the proceeds of the offering, or lend, contribute
      or
      otherwise make available such proceeds to any subsidiary, joint venture partner
      or other person or entity, for the purpose of financing the activities of any
      person currently subject to any U.S. sanctions administered by
      OFAC.

     

    (b)  Officer’s
      Certificates.
      Any
      certificate signed by any officer of the Company or any of its subsidiaries
      delivered to the Initial Purchasers or to counsel for the Initial Purchasers
      shall be deemed a representation and warranty by the Company to each Initial
      Purchaser as to the matters covered thereby.

     

    SECTION
      2.  Sale
      and Delivery to the Initial Purchasers; Closing.

     

    (a)  Initial
      Securities.
      On the
      basis of the representations, warranties and agreements herein contained and
      subject to the terms and conditions herein set forth, the Company agrees to
      sell
      to each Initial Purchaser, severally and not jointly, and each Initial
      Purchaser, severally and not jointly, agrees to purchase from the Company,
      at
      the price set forth in Schedule A, $250,000,000 aggregate principal amount
      of
      Securities set forth in Schedule B opposite the name of such Initial Purchaser,
      plus any additional principal amount of Securities which such Initial Purchaser
      may purchase pursuant to the provision of Section 11 hereof.

     

    (b)  Option
      Securities.
      In
      addition, on the basis of the representations and warranties herein contained
      and subject to the terms and conditions herein set forth, the Company hereby
      grants an option to the Initial Purchasers, severally and not jointly, to
      purchase up to an additional $37,500,000 principal amount of Securities at
      the
      same price set forth in Schedule B for the Initial Securities, plus accrued
      interest, if any, from the Closing Time to the Date of Delivery (as defined
      below). Unless extended for up to one (1) day by the Company, the option hereby
      granted will expire 12 days after the date of the issuance of the Initial
      Securities and may be exercised in whole or in part from time to time during
      such 12 day period only for the purpose of covering over-allotments which may
      be
      made in connection with the offering and distribution of the Initial Securities
      upon notice by Merrill Lynch and Lehman Brothers to the Company setting forth
      the number of Option Securities as to which the several Initial Purchasers
      are
      then exercising the option and the time and date of payment and delivery for
      such Option Securities. Any such time and date of delivery (a “Date of
      Delivery”) and allocation among the Initial Purchasers shall be determined by
      the Initial Purchasers and communicated to the Company, but shall be in any
      event no later than 13 days after the Closing Time. 

     

    
      
        
        

      

      
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    (c)  Payment.
      Payment
      of the purchase price for, and delivery of certificates for, the Initial
      Securities shall be made at the offices of Shearman & Sterling LLP, 599
      Lexington Avenue, New York, NY 10022, or at such other place as shall be agreed
      upon by the Initial Purchasers and the Company, at 9:00 A.M. (Eastern time)
      on
      the third (fourth, if the pricing occurs after 4:30 P.M. (Eastern time) on
      any
      given day) business day after the date hereof (unless postponed in accordance
      with the provisions of Section 10), or such other time not later than ten
      business days after such date as shall be agreed upon by the Initial Purchasers
      and the Company (such time and date of payment and delivery being herein called
      “Closing Time”).

     

    In
      addition, in the event that any or all of the Option Securities are purchased
      by
      the Initial Purchasers, payment of the purchase price for, and delivery of
      certificates for, such Option Securities shall be made at the above-mentioned
      offices, or at such other place as shall be agreed upon by the Initial
      Purchasers and the Company, on each Date of Delivery as specified in the notice
      from the Initial Purchasers to the Company.

     

    Payment
      of the purchase price for the Initial Securities shall be made to the Company
      by
      wire transfer of immediately available funds to a bank account designated by
      the
      Company, against delivery to the Initial Purchasers for the respective accounts
      of the Initial Purchasers of certificates for the Securities to be purchased
      by
      them. 

     

    (d)  Denominations;
      Registration.
      Certificates for the Initial Securities and the Option Securities, if any,
      shall
      be in global form and registered in the name of Cede & Co., as nominee of
      the Depositary Trust Company. The certificates evidencing the Securities shall
      be delivered to the Trustee at the Closing Time or the relevant Date of
      Delivery, as the case may be, for the account of the Initial
      Purchasers.

     

    SECTION
      3.  Covenants
      of the Company.
      The
      Company covenants with the Initial Purchasers as follows:

     

    (a)  Final
      Offering Memorandum.
      The
      Company, as promptly as possible, will furnish to the Initial Purchasers,
      without charge, such number of copies of the Final Offering Memorandum and
      any
      amendments and supplements thereto and documents incorporated by reference
      therein as they may reasonably request.

     

    (b)  Notice
      and Effect of Material Events.
      The
      Company will promptly notify the Initial Purchasers, and confirm such notice
      in
      writing, of (x) any filing made by the Company of information relating to the
      offering of the Securities with any securities exchange or any other regulatory
      body in the United States or any other jurisdiction, and (y) prior to the
      completion of the placement of the offered Securities by the Initial Purchasers
      (and in any event for a period of not more than 14 days after the later of
      the
      Closing Time or the latest Date of Delivery, if any), any material changes
      in or
      affecting the condition, financial or otherwise, or the earnings, business
      affairs or business prospects of the Company and its subsidiaries considered
      as
      one enterprise which (i) make any statement of a material fact in the Disclosure
      Package, any Offering Memorandum or any Supplemental Offering Material false
      or
      misleading or (ii) are not disclosed in the Disclosure Package or the Offering
      Memorandum. In such event or if during such time any event shall occur as a
      result of which it is necessary, in the reasonable opinion of any of the
      Company, its counsel, the Initial Purchasers or counsel for the Initial
      Purchasers, to amend or supplement the Offering Memorandum in order that the
      Offering Memorandum not include any untrue statement of a material fact or
      omit
      to state a material fact necessary in order to make the statements therein
      not
      misleading in the light of the circumstances then existing, the Company will
      forthwith amend or supplement the Offering Memorandum by preparing and
      furnishing to the Initial Purchasers an amendment or amendments of, or a
      supplement or supplements to, the Offering Memorandum (in form and substance
      satisfactory in the reasonable opinion of counsel for the Initial Purchasers)
      so
      that, as so amended or supplemented, the Offering Memorandum will not include
      an
      untrue statement of a material fact or omit to state a material fact necessary
      in order to make the statements therein, in the light of the circumstances
      then
      existing, not misleading.

     

    
      
        
        

      

      
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    (c)  Amendment
      and Supplements to the Offering Memorandum; Preparation of Pricing Supplement;
      Supplemental Offering Materials.
      The
      Company will advise the Initial Purchasers promptly of any proposal to amend
      or
      supplement the Offering Memorandum and will not effect any such amendment or
      supplement without the consent of the Initial Purchasers, which consent shall
      not be unreasonably withheld. Neither the consent of the Initial Purchasers,
      nor
      the Initial Purchasers’ delivery of any such amendment or supplement, shall
      constitute a waiver of any of the conditions set forth in Section 5 hereof.
      The
      Company will prepare the Pricing Supplement, in form and substance satisfactory
      to the Initial Purchasers, and shall furnish prior to the Applicable Time to
      the
      Initial Purchasers, without charge, as many copies of the Pricing Supplement
      as
      such Initial Purchaser may reasonably request. The Company represents and agrees
      that, unless it obtains the prior consent of the Initial Purchasers, it has
      not
      made and will not make any offer relating to the Securities by means of any
      Supplemental Offering Materials.

     

    (d)  Qualification
      of Securities for Offer and Sale.
      The
      Company will use its best efforts to cooperate with the Initial Purchasers
      in
      the qualification of the Securities for offering and sale under the applicable
      securities laws of such states and other jurisdictions (domestic and foreign)
      as
      the Initial Purchasers may designate and to maintain such qualifications in
      effect as long as required for the sale of the Securities; provided, however,
      that the Company shall not be obligated to file any general consent to service
      of process or to qualify as a foreign corporation or as a dealer in securities
      business in any jurisdiction in which it is not otherwise so subject in any
      jurisdiction in which it is not so qualified or to subject itself to taxation
      in
      respect of doing so.

     

    (e)  Use
      of Proceeds.
      The
      Company will use the net proceeds received by it from the sale of the Securities
      in the manner specified in the Offering Memorandum under “Use of
      Proceeds.”

     

    (f)  Restriction
      on Sale of Securities.
      Except
      as otherwise contemplated by the Disclosure Package and Final Offering
      Memorandum and the Transaction Documents, during a period of 60 days from the
      date of the Final Offering Memorandum (the “Lock-up Period”), the Company shall
      not, without the prior written consent of Merrill Lynch or Lehman Brothers,
      directly or indirectly, (i) issue, sell, offer or agree to sell, grant any
      option for the sale of, or otherwise transfer or dispose of, any other debt
      securities of the Company, or other securities of the Company that are, in
      any
      such case, convertible into, or exchangeable for, the Securities or such other
      debt securities, (ii) offer, pledge, announce the intention to sell, sell,
      contract to sell, sell any option or contract to purchase, purchase any option
      or contract to sell, grant any option, right or warrant for the sale of, lend
      or
      otherwise transfer or dispose of any shares of Common Stock or securities
      convertible into or exchangeable or exercisable for or repayable with Common
      Stock or (iii) enter into any swap or other agreement or any transaction that
      transfers, in whole or in part, the economic consequences of ownership of the
      Common Stock, or any securities convertible into or exchangeable or exercisable
      for or repayable with Common Stock, whether any such swap or transaction
      described in clause (ii) or (iii) above is to be settled by delivery of Common
      Stock or such other securities, in cash or otherwise; provided,
      however,
      that
      the Company may offer, issue and sell shares of Common Stock or debt securities
      or other securities convertible into or exchangeable or exercisable for shares
      of Common Stock (A) pursuant to any employee, officer or director stock or
      benefit plan, (B) upon the conversion or exercise of the Securities or
      securities outstanding on the date hereof, or (C) issued or to be issued by
      the
      Company in connection with an acquisition, provided that (1) in the case of
      an
      acquisition of a private company, the recipient of such shares or securities
      shall enter into a lock up agreement for the balance of the Lock-up Period
      and
      (2) in the case of an acquisition of a public company, such shares or securities
      shall not be issued until the expiration of the Lock-up Period.

     

    
      
        
        

      

      
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    (g)  PORTAL
      Designation.
      The
      Company will use its best efforts to permit the Securities to be designated
      PORTAL securities in accordance with the rules and regulations adopted by the
      National Association of Securities Dealers, Inc. (“NASD”) relating to trading in
      the PORTAL Market.

     

    (h)  Listing
      on Securities Exchange.
      The
      Company will use its commercially reasonable efforts to cause all shares of
      Common Stock issuable upon conversion of the Securities to be listed on the
      Nasdaq Global Market or listed on another “national securities exchange”
registered under Section 6 of the 1934 Act on which shares of its Common Stock
      are then listed.

     

    (i)  Reservation
      of Shares of Common Stock.
      The
      Company shall reserve and keep available at all times, free of preemptive
      rights, shares of Common Stock for the purpose of enabling the Company to
      satisfy any obligations to issue shares of Common Stock upon conversion of
      the
      Securities.

     

    (j)  DTC.
      The
      Company will use its reasonable best efforts to permit the Securities to be
      eligible for clearance and settlement through the facilities of
      DTC.

     

    SECTION
      4.  Payment
      of Expenses.

     

    (a)  Expenses.
      The
      Company will pay or cause to be paid all expenses incident to the performance
      of
      its obligations under this Agreement, including (i) the preparation, printing,
      and delivery to the Initial Purchaser of the Disclosure Package and Final
      Offering Memorandum (including financial statements and any schedules or
      exhibits and any document incorporated therein by reference) and of each
      amendment or supplement thereto, (ii) the preparation, printing and delivery
      to
      the Initial Purchasers of this Agreement, the Indenture and such other documents
      as may be required in connection with the offering, purchase, sale, issuance
      or
      delivery of the Securities, (iii) the preparation, issuance and delivery of
      the
      certificates for the Securities to the Initial Purchasers and the certificates
      for the Common Stock issuable upon conversion thereof, including any transfer
      taxes, any stamp or other duties payable upon the sale, issuance and delivery
      of
      the Securities to the Initial Purchasers, the issuance and delivery of the
      Common Stock issuable upon conversion thereof and any charges of DTC in
      connection therewith, (iv) the fees and disbursements of the Company’s counsel,
      accountants and other advisors, (v) the qualification of the Securities and
      the
      shares of Common Stock issuable upon conversion thereof under securities laws
      in
      accordance with the provisions of Section 3(d) hereof, including filing fees
      and
      the reasonable fees and disbursements of counsel for the Initial Purchasers
      in
      connection therewith and in connection with the preparation of the Blue Sky
      Survey, (vi) the fees and expenses of the Trustee, including the reasonable
      and
      documented fees and disbursements of counsel for the Trustee in connection
      with
      the Indenture and the Securities, (vii) the costs and expenses of the Company
      relating to investor presentations on any “road show” undertaken in connection
      with the marketing of the Securities including, without limitation, expenses
      associated with the production of road show slides and graphics, fees and
      expenses of any consultants engaged in connection with the road show
      presentations, travel and lodging expenses of the representatives and officers
      of the Company and any such consultants, (viii) any fees payable in connection
      with the rating of the Securities, authorized by the Company, if any (ix) any
      fees and expenses payable in connection with the initial and continued
      designation of the Securities as PORTAL securities under the PORTAL Market
      Rules
      pursuant to NASD Rule 5322, (x) any fees of the NASD in connection with the
      Securities, and (xi) the fees and expenses of any transfer agent or registrar
      for the Common Stock.

     

    
      
        
        

      

      
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    (b)  Termination
      of Agreement.
      If this
      Agreement is terminated by the Initial Purchasers in accordance with the
      provisions of Section 5 or Section 10(a)(i) hereof, the Company shall reimburse
      the Initial Purchasers for all of their out-of-pocket expenses that shall have
      been incurred by it in connection with the proposed purchase and sale of the
      Securities, including the reasonable and documented fees and disbursements
      of
      counsel for the Initial Purchaser.

     

    SECTION
      5.  Conditions
      of Initial Purchasers’ Obligations.
      The
      obligations of the Initial Purchasers hereunder are subject to the accuracy
      of
      the representations and warranties of the Company contained in Section 1 hereof
      as of the date hereof and as of the Closing Time, except for such
      representations and warranties that speak to a specific time, in which case
      the
      representation and warranty shall be accurate as of such specified time, or
      in
      certificates of any officer of the Company or its subsidiaries delivered
      pursuant to the provisions hereof, to the performance by the Company of its
      covenants and other obligations hereunder, and to the following further
      conditions:

     

    (a)  Opinions
      of Counsel for Company.
      At
      Closing Time, the Initial Purchasers shall have received (i) the favorable
      opinion, dated as of Closing Time, of Blank Rome, LLP, counsel for the Company,
      in form and substance satisfactory to counsel for the Initial Purchasers,
      together with signed or reproduced copies of such letter for each of the other
      Initial Purchasers to the effect set forth in Exhibit A-1 hereto and to such
      further effect as counsel to the Initial Purchasers may reasonably request;
      (ii)
      the favorable opinion, dated as of the Closing Time, of Andrew Tarshis, the
      General Counsel of the Company, regarding general corporate matters, in form
      and
      substance satisfactory to counsel for the Initial Purchasers, together with
      signed or reproduced copies of such letter for each of the other Initial
      Purchasers to the effect set forth in Exhibit A-2 hereto and to such further
      effect as counsel to the Initial Purchasers may reasonably request; and (iii)
      the favorable opinion, dated as of the Closing Time of Andrew Tarshis, the
      General Counsel of the Company, regarding Intellectual Property Rights, in
      form
      and substance satisfactory to counsel for the Initial Purchasers, together
      with
      signed or reproduced copies of such letter for each of the other Initial
      Purchasers to the effect set forth in Exhibit A-3 hereto and to such further
      effect as counsel to the Initial Purchasers may reasonably request.

     

    (b)  Opinion
      of Counsel for Initial Purchasers.
      At
      Closing Time, the Initial Purchaser shall have received the favorable opinion,
      dated as of Closing Time, of Shearman & Sterling LLP, counsel for the
      Initial Purchasers. Such counsel may state that, insofar as such opinion
      involves factual matters, they have relied, to the extent they deem proper,
      upon
      certificates of officers of the Company and its subsidiaries, upon the accuracy
      and truthfulness of the Company’s representations in Section 1 hereof or
      officers’ certificates delivered by or on behalf of the Company and certificates
      of public officials.

     

    (c)  Officers’
      Certificate.
      At
      Closing Time, there shall not have been, since the date hereof or since the
      respective dates as of which information is given in the Disclosure Package
      and
      Final Offering Memorandum (exclusive of any amendments or supplements thereto
      subsequent to the date of this Agreement), any material adverse change in the
      condition, financial or otherwise, or in the earnings, business affairs or
      business prospects of the Company and its subsidiaries considered as one
      enterprise, whether or not arising in the ordinary course of business, and
      the
      Initial Purchasers shall have received a certificate of the President or a
      Vice
      President of the Company and of the chief financial or chief accounting officer
      of the Company, dated as of Closing Time, to the effect that (i) there has
      been
      no such material adverse change, (ii) the representations and warranties in
      Section 1 hereof are true and correct with the same force and effect as though
      expressly made at and as of Closing Time, except for such representations and
      warranties that speak to a specific time, in which case the representation
      and
      warranty shall be accurate as of such specified time, and (iii) the Company
      has
      complied with all agreements and satisfied all conditions on its part to be
      performed or satisfied at or prior to Closing Time.

     

    
      
        
        

      

      
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    (d)  Accountants’
      Comfort Letter.
      At the
      time of the execution of this Agreement, the Initial Purchasers shall have
      received from BDO Seidman, LLP a letter dated such date, in form and substance
      satisfactory to the Initial Purchasers, together with signed or reproduced
      copies of such letter for each of the other Initial Purchasers containing
      statements and information of the type ordinarily included in accountants’
“comfort letters” to the Initial Purchaser with respect to the financial
      statements and certain financial information contained in the Offering
      Memorandum. 

     

    (e)  Bring-down
      Comfort Letter.
      At
      Closing Time, the Initial Purchasers shall have received from BDO Seidman,
      LLP,
      a letter, dated as of Closing Time, to the effect that BDO Seidman, LLP
      reaffirms the statements made in the letter furnished pursuant to subsection
      (d)
      of this Section, except that the specified date referred to shall be a date
      not
      more than three business days prior to Closing Time.

     

    (f)  PORTAL.
      At the
      Closing Time, the Securities shall have been designated for trading on
      PORTAL.

     

    (g)  Maintenance
      of Rating.
      Since
      the date of this Agreement, there shall not have occurred a downgrading in
      the
      rating assigned to any of the Company’s debt securities by any “nationally
      recognized statistical rating agency”, as that term is defined by the Commission
      for purposes of Rule 436(g)(2) under the 1933 Act, and no such securities rating
      agency shall have publicly announced that it has under surveillance or review,
      with possible negative implications, its rating of any of the Company’s debt
      securities.

     

    (h)  Lock-up
      Agreements.
      On or
      prior to the date of this Agreement, the Initial Purchasers shall have received
      an agreement substantially in the form of Exhibit B attached hereto signed
      by
      the persons listed in Schedule D hereto.

     

    (i)  Indenture
      and Registration Rights Agreement.
      At or
      prior to the Closing Time, each of the Company and the Trustee shall have
      executed and delivered the Indenture, and the Company shall have executed and
      delivered the Registration Rights Agreement signed by the Initial
      Purchasers.

     

    (j)  Conditions
      to Purchase of Option Securities.
      In the
      event that the Initial Purchasers exercises its option provided in Section
      2(b)
      hereof to purchase all or any portion of the Option Securities, the
      representations and warranties of the Company contained herein and the
      statements in any certificates furnished by the Company or any subsidiary of
      the
      Company hereunder shall be true and correct as of each Date of Delivery, except
      for such representations and warranties that speak to a specific time, in which
      case the representation and warranty shall be accurate as of such specified
      time, and, at the relevant Date of Delivery, the Initial Purchasers shall have
      received:

     

    (i)  Officers’
      Certificate.
      A
      certificate, dated such Date of Delivery, of the President or a Vice President
      of the Company and of the chief financial or accounting officer of the Company
      confirming that the certificate delivered at Closing Time pursuant to Section
      5(c) hereof remains true and correct as of such Date of Delivery.

     

    
      
        
        

      

      
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    (ii)  Opinion
      of Counsel for Company.
      The
      favorable opinion of Blank Rome, LLP, counsel for the Company, in form and
      substance satisfactory to counsel for the Initial Purchasers, dated such Date
      of
      Delivery, relating to the Option Securities to be purchased on such Date of
      Delivery and otherwise to the same effect as the opinion required by
      Section 5(a) hereof, the favorable opinion of the General Counsel of the
      Company, in form and substance satisfactory to counsel for the Initial
      Purchasers, dated such Date of Delivery, relating to general corporate matters
      and otherwise to the same effect as the opinion required by Section 5(a) hereof,
      and the favorable opinion of the General Counsel of the Company, in form and
      substance satisfactory to counsel for the Initial Purchasers, dated such Date
      of
      Delivery, relating to Intellectual Property Rights and otherwise to the same
      effect as the opinion required by Section 5(a) hereof.

     

    (iii)  Opinion
      of Counsel for the Initial Purchasers.
      The
      favorable opinion of Shearman & Sterling LLP, counsel for the Initial
      Purchasers, dated such Date of Delivery, relating to the Option Securities
      to be
      purchased on such Date of Delivery and otherwise to the same effect as the
      opinion required by Section 5(b) hereof.

     

    (iv)  Bring-down
      Comfort Letter.
      A
      letter from BDO Seidman, LLP, in form and substance satisfactory to the Initial
      Purchasers and dated such Date of Delivery, substantially in the same form
      and
      substance as the letter furnished to the Initial Purchasers pursuant to Section
      5(e) hereof, except that the “specified date” in the letter furnished pursuant
      to this paragraph shall be a date not more than five days prior to such Date
      of
      Delivery.

     

    (v)  No
      Downgrading.
      Subsequent to the date of this Agreement, no downgrading shall have occurred
      in
      the rating accorded any of the Company’s other securities by any “nationally
      recognized statistical rating organization”, as that term is defined by the
      Commission for purposes of Rule 436(g)(2) under the 1933 Act, and no such
      organization shall have publicly announced that it has under surveillance or
      review, with possible negative implications, its ratings of any of the Company’s
      debt securities.

     

    (k)  Additional
      Documents.
      At
      Closing Time and at each Date of Delivery counsel for the Initial Purchasers
      shall have been furnished with such documents and opinions as they may require
      for the purpose of enabling them to pass upon the issuance and sale of the
      Securities as herein contemplated, or in order to evidence the accuracy of
      any
      of the representations or warranties, or the fulfillment of any of the
      conditions, herein contained; and all proceedings taken by the Company in
      connection with the issuance and sale of the Securities as herein contemplated
      shall be satisfactory in form and substance to the Initial Purchasers and
      counsel for the Initial Purchasers.

     

    (l)  Termination
      of Agreement.
      If any
      condition specified in this Section 5 shall not have been fulfilled when and
      as
      required to be fulfilled, this Agreement, or in the case of any condition to
      the
      purchase of Option Securities, on a Date of Delivery which is after the Closing
      Time, the obligations of the Initial Purchasers to purchase the relevant Option
      Securities, may be terminated by the Initial Purchasers by notice to the Company
      at any time at or prior to Closing Time or such Date of Delivery, as the case
      may be, and such termination shall be without liability of any party to any
      other party except as provided in Section 4 and except that Sections 1, 7,
      8 and
      9 shall survive any such termination and remain in full force and
      effect.

     

    SECTION
      6.  Subsequent
      Offers and Resales of the Securities.

     

    (a)  Offer
      and Sale Procedures.
      The
      Initial Purchasers and the Company hereby establish and agree to observe the
      following procedures in connection with the offer and sale of the
      Securities:

     

    
      
        
        

      

      
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    (i)  Offers
      and Sales.
      Offers
      and sales of the Securities shall be made only to such persons and in such
      manner as is contemplated by the Offering Memorandum.

     

    (ii)  No
      General Solicitation.
      No
      general solicitation or general advertising (within the meaning of Rule 502(c)
      under the 1933 Act) will be used in the United States in connection with the
      offering or sale of the Securities.

     

    (iii)  Purchases
      by Non-Bank Fiduciaries.
      In the
      case of a non-bank subsequent purchaser of a Security acting as a fiduciary
      for
      one or more third parties, each third party shall, in the judgment of the
      Initial Purchaser, be a QIB.

     

    (iv)  Subsequent
      Purchaser Notification.
      The
      Initial Purchaser will take reasonable steps to inform, and cause each of its
      U.S. Affiliates to take reasonable steps to inform, persons acquiring Securities
      from the Initial Purchasers or their Affiliates, as the case may be, in the
      United States that the Securities shall bear the restrictive legend set forth
      in
      the Offering Memorandum in the section entitled “Transfer Restrictions” and (A)
      have not been and will not be registered under the 1933 Act, (B) are being
      sold
      to them without registration under the 1933 Act in reliance on Rule 144A or
      in
      accordance with another exemption from registration under the 1933 Act, as
      the
      case may be, and (C) may not be offered, sold or otherwise transferred except
      (1) to the Company or one of its subsidiaries, (2) outside the United States
      in
      accordance with Regulation S under the 1933 Act, or (3) inside the United States
      in accordance with (x) Rule 144A to a person whom the seller reasonably believes
      is a QIB that is purchasing such Securities for its own account or for the
      account of a QIB to whom notice is given that the offer, sale or transfer is
      being made in reliance on Rule 144A or (y) pursuant to another available
      exemption from registration under the 1933 Act.

     

    (v)  Minimum
      Principal Amount.
      No sale
      of the Securities to any one Subsequent Purchaser will be for less than U.S.
      $1,000 principal amount and no Security will be issued in a smaller principal
      amount. If the Subsequent Purchaser is a non-bank fiduciary acting on behalf
      of
      others, each person for whom it is acting must purchase at least U.S. $1,000
      principal amount of the Securities.

     

    (vi)  Transfer
      Restriction.
      The
      transfer restrictions and the other provisions set forth in the Offering
      Memorandum under the caption “Transfer Restrictions,” including the legend
      required thereby, shall apply to the Securities. Following the sale of the
      Securities by the Initial Purchasers to each Subsequent Purchaser pursuant
      to
      and in compliance with the terms hereof, the Initial Purchasers shall not be
      liable or responsible to the Company for any losses, damages or liabilities
      suffered or incurred by the Company, including any losses, damages or
      liabilities under the 1933 Act, arising from or relating to any subsequent
      resale or transfer of any Security.

     

    (b)  Covenants
      of the Company.
      The
      Company covenants with the Initial Purchaser as follows:

     

    (i)  Integration.
      The
      Company, relying on the “Black Box” and related no-action letters, agrees that
      it will not and will cause its Affiliates not to, directly or indirectly,
      solicit any offer to buy, sell or make any offer or sale of, or otherwise
      negotiate in respect of, securities of the Company of any class if, as a result
      of the doctrine of “integration” referred to in Rule 502 under the 1933 Act,
      such offer or sale would render invalid (for the purpose of (i) the sale of
      the
      offered Securities by the Company to the Initial Purchasers, (ii) the resale
      of
      the offered Securities by the Initial Purchasers to Subsequent Purchasers or
      (iii) the resale of the offered Securities by such Subsequent Purchasers to
      others) the exemption from the registration requirements of the 1933 Act
      provided by Section 4(2) thereof or by Rule 144A thereunder or
      otherwise.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    (ii)  Rule
      144A Information.
      The
      Company agrees that, in order to render the offered Securities eligible for
      resale pursuant to Rule 144A under the 1933 Act, while any of the offered
      Securities remain outstanding, it will make available, upon request, to any
      holder of offered Securities or prospective purchasers of Securities the
      information specified in Rule 144A(d)(4), unless the Company furnishes
      information to the Commission pursuant to Section 13 or 15(d) of the 1934
      Act.

     

    (iii)  Restriction
      on Resales.
      Until
      the expiration of two years after the issuance of the Initial Securities, the
      Company will not, and will cause its Affiliates not to, resell any offered
      Securities which are “restricted securities” (as such term is defined under Rule
      144(a)(3) under the 1933 Act), whether as beneficial owner or otherwise (except
      as agent acting as a securities broker on behalf of and for the account of
      customers in the ordinary course of business in unsolicited broker’s
      transactions) that have been reacquired by any of them and shall immediately
      upon any purchase of any such Securities submit such Securities to the Trustee
      for cancellation.

     

    (c)  Qualified
      Institutional Buyer.
      Each
      Initial Purchaser hereby represents and warrants to, and agrees with, the
      Company, that it is a QIB and an “accredited investor” within the meaning of
      Section 501(a) under the 1933 Act and has complied and will comply with the
      procedures applicable to it in this Section 6.

     

    SECTION
      7.  Indemnification.

     

    (a)  Indemnification
      of Initial Purchaser.
      The
      Company agrees to indemnify and hold harmless each Initial Purchaser, its
      affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each,
      an
“Affiliate”), its selling agents and each person, if any, who controls any
      Initial Purchaser within the meaning of Section 15 of the 1933 Act or Section
      20
      of the 1934 Act as follows:

     

    (i)  against
      any and all loss, liability, claim, damage and expense whatsoever, as incurred,
      arising out of any untrue statement or alleged untrue statement of a material
      fact contained in the Preliminary Offering Memorandum, the Disclosure Package,
      the Final Offering Memorandum (or any amendment or supplement thereto) or any
      Supplemental Offering Materials, or the omission or alleged omission therefrom
      of a material fact necessary in order to make the statements therein, in the
      light of the circumstances under which they were made, not
      misleading;

     

    (ii)  against
      any and all loss, liability, claim, damage and expense whatsoever, as incurred,
      to the extent of the aggregate amount paid in settlement of any litigation,
      or
      any investigation or proceeding by any governmental agency or body, commenced
      or
      threatened, or of any claim whatsoever based upon any such untrue statement
      or
      omission, or any such alleged untrue statement or omission; provided that
      (subject to Section 7(d) below) any such settlement is effected with the written
      consent of the Company; and

     

    (iii)  against
      any and all expense whatsoever, as incurred (including the fees and
      disbursements of counsel chosen by Merrill Lynch and Lehman Brothers),
      reasonably incurred in investigating, preparing or defending against any
      litigation, or any investigation or proceeding by any governmental agency or
      body, commenced or threatened, or any claim whatsoever based upon any such
      untrue statement or omission, or any such alleged untrue statement or omission,
      to the extent that any such expense is not paid under (i) or (ii)
      above;

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    provided,
      however,
      that
      this indemnity agreement shall not apply to any loss, liability, claim, damage
      or expense to the extent arising out of any untrue statement or omission or
      alleged untrue statement or omission made in reliance upon and in conformity
      with written information furnished to the Company by Merrill Lynch and Lehman
      Brothers expressly for use in any preliminary offering memorandum, the
      Disclosure Package, the Final Offering Memorandum (or any amendment or
      supplement thereto) or in any Supplemental Offering Materials.

     

    (b)  Indemnification
      of Company.
      Each
      Initial Purchaser severally agrees to indemnify and hold harmless the Company,
      its directors and each person, if any, who controls the Company within the
      meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act against
      any
      and all loss, liability, claim, damage and expense, whatsoever as incurred,
      described in the indemnity contained in subsection (a) of this Section, as
      incurred, but only with respect to untrue statements or omissions, or alleged
      untrue statements or omissions, made in any preliminary offering memorandum,
      the
      Disclosure Package, the Final Offering Memorandum or any Supplemental Offering
      Materials in reliance upon and in conformity with written information furnished
      to the Company by such Initial Purchaser through Merrill Lynch and Lehman
      Brothers expressly for use therein.

     

    (c)  Actions
      against Parties; Notification.
      Each
      indemnified party shall give notice as promptly as reasonably practicable to
      each indemnifying party of any action commenced against it in respect of which
      indemnity may be sought hereunder, but failure to so notify an indemnifying
      party shall not relieve such indemnifying party from any liability hereunder
      to
      the extent it is not prejudiced as a result thereof and in any event shall
      not
      relieve it from any liability which it may have otherwise than on account of
      this indemnity agreement. In the case of parties indemnified pursuant to Section
      7(a) above, counsel to the indemnified parties shall be selected by Merrill
      Lynch and Lehman Brothers, and, in the case of parties indemnified pursuant
      to
      Section 7(b) above, counsel to the indemnified parties shall be selected by
      the
      Company. An indemnifying party may participate at its own expense in the defense
      of any such action, with counsel reasonably satisfactory to the Indemnified
      Party. In the event that (i) that the indemnifying party fails to assume the
      defense of any such claim in a timely manner or (ii) if there exists or is
      reasonably likely to exist a conflict of interest that would make it
      inappropriate in the reasonable judgment of such indemnified party for the
      same
      counsel to represent both the indemnified party and the indemnifying party,
      or
      (iii) if the indemnifying party fails to employ counsel reasonably satisfactory
      to such indemnified party in a timely manner or (iv) counsel to such indemnified
      party determines that one or more defenses may be available to such indemnified
      party that are not available to the indemnifying party or another indemnified
      party, then such indemnified party may employ separate counsel to represent
      or
      defend it in any such action or proceeding and the indemnifying party will
      pay
      the reasonable and customary fees and disbursements of such counsel;
provided,
      however,
      that in
      no event shall the indemnifying parties be liable for fees and expenses of
      more
      than one counsel (in addition to any local counsel) separate from their own
      counsel for all indemnified parties in connection with any one action or
      separate but similar or related actions in the same jurisdiction arising out
      of
      the same general allegations or circumstances. In the absence of any of the
      foregoing, in any action or proceeding the defense of which the indemnifying
      party assumes, such indemnified party will have the right to participate in
      such
      litigation and to retain its own counsel at such indemnified party's own
      expense. No indemnifying party shall, without the prior written consent of
      the
      indemnified party, settle or compromise or consent to the entry of any judgment
      with respect to any litigation, or any investigation or proceeding by any
      governmental agency or body, commenced or threatened, or any claim whatsoever
      in
      respect of which indemnification or contribution could be sought under this
      Section 7 or Section 8 hereof (whether or not the indemnified parties are actual
      or potential parties thereto), unless such settlement, compromise or consent
      (i)
      includes an unconditional release of each indemnified party from all liability
      arising out of such litigation, investigation, proceeding or claim and (ii)
      does
      not include a statement as to or an admission of fault, culpability or a failure
      to act by or on behalf of any indemnified party.

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    (d)  Settlement
      without Consent if Failure to Reimburse.
      If at
      any time an indemnified party shall have requested an indemnifying party to
      reimburse the indemnified party for fees and expenses of counsel, such
      indemnifying party agrees that it shall be liable for any settlement of the
      nature contemplated by Section 7(a)(ii) effected without its written consent
      if
      (i) such settlement is entered into more than 45 days after receipt by such
      indemnifying party of the aforesaid request, (ii) such indemnifying party shall
      have received notice of the terms of such settlement at least 30 days prior
      to
      such settlement being entered into and (iii) such indemnifying party shall
      not
      have reimbursed such indemnified party in accordance with such request prior
      to
      the date of such settlement. 

     

    SECTION
      8.  Contribution.
      If the
      indemnification provided for in Section 7 hereof is for any reason unavailable
      to or insufficient to hold harmless an indemnified party in respect of any
      losses, liabilities, claims, damages or expenses referred to therein, then
      each
      indemnifying party shall contribute to the aggregate amount of such losses,
      liabilities, claims, damages and expenses incurred by such indemnified party,
      as
      incurred, (i) in such proportion as is appropriate to reflect the relative
      benefits received by the Company on the one hand and the Initial Purchasers
      on
      the other hand from the offering of the Securities pursuant to this Agreement
      or
      (ii) if the allocation provided by clause (i) is not permitted by applicable
      law, in such proportion as is appropriate to reflect not only the relative
      benefits referred to in clause (i) above but also the relative fault of the
      Company on the one hand and of the Initial Purchasers on the other hand in
      connection with the statements or omissions which resulted in such losses,
      liabilities, claims, damages or expenses, as well as any other relevant
      equitable considerations.

     

    The
      relative benefits received by the Company on the one hand and the Initial
      Purchasers on the other hand in connection with the offering of the Securities
      pursuant to this Agreement shall be deemed to be in the same respective
      proportions as the total net proceeds from the offering of the Securities
      pursuant to this Agreement (before deducting expenses) received by the Company
      and the total underwriting discount received by the Initial Purchasers, bear
      to
      the aggregate initial offering price of the Securities.

     

    The
      relative fault of the Company on the one hand and the Initial Purchaser on
      the
      other hand shall be determined by reference to, among other things, whether
      any
      such untrue or alleged untrue statement of a material fact or omission or
      alleged omission to state a material fact relates to information supplied by
      the
      Company or by the Initial Purchasers and the parties’ relative intent,
      knowledge, access to information and opportunity to correct or prevent such
      statement or omission.

     

    The
      Company and the Initial Purchasers agree that it would not be just and equitable
      if contribution pursuant to this Section were determined by pro rata allocation
      or by any other method of allocation which does not take account of the
      equitable considerations referred to above in this Section. The aggregate amount
      of losses, liabilities, claims, damages and expenses incurred by an indemnified
      party and referred to above in this Section shall be deemed to include any
      legal
      or other expenses reasonably incurred by such indemnified party in
      investigating, preparing or defending against any litigation, or any
      investigation or proceeding by any governmental agency or body, commenced or
      threatened, or any claim whatsoever based upon any such untrue or alleged untrue
      statement or omission or alleged omission.

     

    Notwithstanding
      the provisions of this Section, no Initial Purchaser shall be required to
      contribute any amount in excess of the amount by which the total price at which
      the Securities purchased and sold by it hereunder exceeds the amount of any
      damages which such Initial Purchaser has otherwise been required to pay by
      reason of such untrue or alleged untrue statement or omission or alleged
      omission.

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    No
      person
      guilty of fraudulent misrepresentation (within the meaning of Section 11(f)
      of
      the 1933 Act) shall be entitled to contribution from any person who was not
      guilty of such fraudulent misrepresentation.

     

    For
      purposes of this Section, each person, if any, who controls an Initial Purchaser
      within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934
      Act
      and each Initial Purchaser’s Affiliates and selling agents shall have the same
      rights to contribution as such Initial Purchaser, and each person, if any,
      who
      controls the Company within the meaning of Section 15 of the 1933 Act or Section
      20 of the 1934 Act shall have the same rights to contribution as the Company.
      

     

    SECTION
      9.  Representations,
      Warranties and Agreements to Survive.
      All
      representations, warranties and agreements contained in this Agreement or in
      certificates of officers of the Company or its subsidiaries submitted pursuant
      hereto shall remain operative and in full force and effect, regardless of (i)
      any investigation made by or on behalf of an Initial Purchaser or its Affiliates
      or selling agents, any person controlling the Initial Purchaser, its officers
      or
      directors or any person controlling the Company and (ii) delivery of and payment
      for the Securities.

     

    SECTION
      10.  Termination
      of Agreement.

     

    (a)  Termination;
      General.
      The
      Initial Purchasers may terminate this Agreement, by notice to the Company,
      at
      any time at or prior to Closing Time (i) if there has been, since the time
      of
      execution of this Agreement or since the date as of which information is given
      in the Preliminary Offering Memorandum, the Disclosure Package or the Final
      Offering Memorandum (exclusive of any amendments or supplements thereto
      subsequent to the date of this Agreement), a Material Adverse Effect, or
      (ii) if there has occurred any material adverse change in the financial
      markets in the United States or the international financial markets, any
      outbreak of hostilities or escalation thereof or other calamity or crisis or
      any
      change or development involving a prospective change in national or
      international political, financial or economic conditions, in each case the
      effect of which is such as to make it, in the judgment of the Initial
      Purchasers, impracticable or inadvisable to market the Securities or to enforce
      contracts for the sale of the Securities, or (iii) if trading in any
      securities of the Company has been suspended or materially limited by the
      Commission or the Nasdaq Global Market, or if trading generally on the American
      Stock Exchange or the New York Stock Exchange or in the Nasdaq Global Market
      has
      been suspended or materially limited, or minimum or maximum prices for trading
      have been fixed, or maximum ranges for prices have been required, by any of
      said
      exchanges or by such system or by order of the Commission, the National
      Association of Securities Dealers, Inc. or any other governmental authority,
      or
      (iv) a material disruption has occurred in commercial banking or securities
      settlement or clearance services in the United States, or (v) if a banking
      moratorium has been declared by either Federal or New York
      authorities.

     

    (b)  Liabilities.
      If this
      Agreement is terminated pursuant to this Section, such termination shall be
      without liability of any party to any other party except as provided in Section
      4 hereof, and provided further that Sections 1, 7, 8 and 9 shall survive such
      termination and remain in full force and effect.

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    SECTION
      11.  Default
      by One or More of the Initial Purchasers.
      If one
      of the Initial Purchasers shall fail at Closing Time or a Date of Delivery
      to
      purchase the Securities which it is obligated to purchase under this Agreement
      (the “Defaulted Securities”), the other Initial Purchaser (the “Non-Defaulting
      Initial Purchaser”) shall have the right, but not the obligation, within 24
      hours thereafter, to make arrangements to purchase all, or for any other Initial
      Purchaser to purchase all, but not less than all, of the Defaulted Securities
      upon the terms herein set forth; if, however, the Non-Defaulting Initial
      Purchaser shall not have competed such arrangements within such 24 hour period,
      then:

     

    (i)  if
      the
      number of Defaulted Securities does not exceed 10% of the aggregate principal
      amount of the Securities to be purchased on such date, the Non-Defaulting
      Initial Purchaser shall be obligated to purchase the full amount thereof,
      or

     

    (ii)  if
      the
      number of Defaulted Securities exceeds 10% of the aggregate principal amount
      of
      the Securities to be purchased on such date, this Agreement or, with respect
      to
      any Date of Delivery which occurs after the Closing Time, the obligation of
      the
      Non-Defaulting Initial Purchaser to purchase and of the Company to sell the
      Option Securities to be purchased and sold on such Date of Delivery, shall
      terminate without liability on the part of such Non-Defaulting Initial
      Purchaser.

     

    No
      action
      taken pursuant to this Section shall relieve any defaulting Initial Purchaser
      from liability in respect of its default.

     

    In
      the
      event of any such default which does not result in a termination of this
      Agreement or, in the case of a Date of Delivery which is after the Closing
      Time,
      which does not result in a termination of the obligation of the Initial
      Purchasers to purchase and the Company to sell the relevant Option Securities,
      as the case may be, either the (i) Initial Purchasers or (ii) the Company shall
      have the right to postpone Closing Time or the relevant Date of Delivery, as
      the
      case may be, for a period not exceeding seven days in order to effect any
      required changes in the Disclosure Package and Final Offering Memorandum or
      in
      any other documents or arrangements. As used herein, the term “Initial
      Purchaser” includes any person substituted for an Initial Purchaser under this
      Section 11.

     

    SECTION
      12.  Tax
      Disclosure.
      Notwithstanding any other provision of this Agreement, immediately upon
      commencement of discussions with respect to the transactions contemplated
      hereby, the Company (and each employee, representative or other agent of the
      Company) may disclose to any and all persons, without limitation of any kind,
      the tax treatment and tax structure of the transactions contemplated by this
      Agreement and all materials of any kind (including opinions or other tax
      analyses) that are provided to the Company relating to such tax treatment and
      tax structure. For purposes of the foregoing, the term “tax treatment” is the
      purported or claimed federal income tax treatment of the transactions
      contemplated hereby, and the term “tax structure” includes any fact that may be
      relevant to understanding the purported or claimed federal income tax treatment
      of the transactions contemplated hereby.

     

    SECTION
      13.  Notices.
      All
      notices and other communications hereunder shall be in writing and shall be
      deemed to have been duly given if mailed or transmitted by any standard form
      of
      telecommunication. Notices to the Initial Purchasers shall be directed to
      Merrill Lynch, Pierce, Fenner & Smith Incorporated at 4 World Financial
      Center, New York, New York 10080, attention of Global Origination Counsel Group
      and to Lehman Brothers Inc., 745 Seventh Avenue, New York, New York 10019,
      Attention: Syndicate Registration (Fax: 646-834-8133), with a copy, in the
      case
      of any notice pursuant to Section 7 hereof to the Director of Litigation, Office
      of the General Counsel, Lehman Brothers Inc., 399 Park Avenue, 10th
      Floor,
      New York, New York 10022 (Fax: 212-520-0421), with a copy to Shearman &
Sterling LLP, 599 Lexington Avenue, New York, New York 10022, attention of
      Robert Evans III; and notices to the Company shall be directed to it at 1450
      Broadway, New York, New York 10018, attention of General Counsel, with a copy
      to
      Blank Rome LLP, The Chrysler Building, 405 Lexington Avenue, New York, New
      York
      10174, attention of Robert Mittman.

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    SECTION
      14.  No
      Advisory or Fiduciary Relationship.
      The
      Company acknowledges and agrees that (a) the purchase and sale of the Securities
      pursuant to this Agreement, including the determination of the offering price
      of
      the Securities and any related discounts and commissions, is an arm’s-length
      commercial transaction between the Company, on the one hand, and the several
      Initial Purchasers, on the other hand, (b) in connection with the offering
      contemplated hereby and the process leading to such transaction each Initial
      Purchaser is and has been acting solely as a principal and is not the agent
      or
      fiduciary of the Company, or its shareholders, creditors, employees or any
      other
      party, (c) no Initial Purchaser has assumed and will not assume an advisory
      or
      fiduciary responsibility in favor of the Company with respect to the offering
      contemplated hereby or the process leading thereto (irrespective of whether
      such
      Initial Purchaser has advised or is currently advising the Company on other
      matters) and no Initial Purchaser has any obligation to the Company with respect
      to the offering contemplated hereby except the obligations expressly set forth
      in this Agreement, (d) the Initial Purchasers and their affiliates may be
      engaged in a broad range of transactions that involve interests that differ
      from
      those of the Company, and (e) the Initial Purchasers have not provided any
      legal, accounting, regulatory or tax advice with respect to the offering
      contemplated hereby and the Company has consulted its own legal, accounting,
      regulatory and tax advisors to the extent it deemed appropriate.

     

    SECTION
      15.  Integration.
      This
      Agreement supersedes all prior agreements and understandings (whether written
      or
      oral) between the Company and the Initial Purchasers with respect to the subject
      matter hereof.

     

    SECTION
      16.  Parties.
      This
      Agreement shall inure to the benefit of and be binding upon the Initial
      Purchasers and the Company and their respective successors. Nothing expressed
      or
      mentioned in this Agreement is intended or shall be construed to give any
      person, firm or corporation, other than the Initial Purchasers and the Company
      and their respective successors and the controlling persons and officers and
      directors and their heirs and legal representatives, any legal or equitable
      right, remedy or claim under or in respect of this Agreement or any provision
      herein contained. This Agreement and all conditions and provisions hereof are
      intended to be for the sole and exclusive benefit of the Initial Purchasers
      and
      the Company and their respective successors, and said controlling persons and
      officers and directors and their heirs and legal representatives, and for the
      benefit of no other person, firm or corporation. No purchaser of Securities
      from
      any Initial Purchaser shall be deemed to be a successor by reason merely of
      such
      purchase.

     

    SECTION
      17.  GOVERNING
      LAW.
      THIS
      AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
      THE
      STATE OF NEW YORK.

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    SECTION
      18.  TIME.
      TIME
      SHALL BE OF THE ESSENCE OF THIS AGREEMENT. EXCEPT AS OTHERWISE SET FORTH HEREIN,
      SPECIFIED TIMES OF DAY REFER TO NEW YORK CITY TIME.

     

    SECTION
      19.  Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which shall
      be
      deemed to be an original, but all such counterparts shall together constitute
      one and the same Agreement.

     

    SECTION
      20.  Effect
      of Headings.
      The
      Section headings herein are for convenience only and shall not affect the
      construction hereof.

     

    SECTION
      21.  Severability.
      In case
      any provision contained in this Agreement should be invalid, illegal or
      unenforceable in any respect, the validity, legality and enforceability of
      the
      remaining provisions contained herein shall not in any way be affected or
      impaired thereby.

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

    If
      the
      foregoing is in accordance with your understanding of our agreement, please
      sign
      and return to the Company a counterpart hereof, whereupon this instrument,
      along
      with all counterparts, will become a binding agreement between the Initial
      Purchasers and the Company in accordance with its terms.

     

    Very
      truly yours,

    

     

    ICONIX
      BRAND GROUP, INC.

    

     

    By  
      /s/ Neil
      Cole                                                   

    Name:
      Neil Cole

    Title:
      Chairman, President and CEO

     

    

    

    CONFIRMED
      AND ACCEPTED,

    as
      of the
      date first above written:

     

    MERRILL
      LYNCH & CO.

    LEHMAN
      BROTHERS INC.

    

    By:
      MERRILL LYNCH, PIERCE, FENNER & SMITH

    INCORPORATED

    

    

    By  
      /s/ Fred
      Fiddle                                                        

    Authorized
      Signatory

     

    By:
      LEHMAN BROTHERS INC.

    

    

    By  
      /s/ Dana
      Weinstein                                                

    Authorized
      Signatory

     

     

     

     

    
      Signature
        Page to Purchase Agreement

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      A

     

    
      	
              Initial
                Purchaser

            	 	
              Principal
                Amount

            	 
	 	 	 	 
	
              Merrill
                Lynch, Pierce, Fenner & Smith

              Incorporated

            	 	 	
              150,000,000

            	 
	
              Lehman
                Brothers Inc.

            	 	 	
              100,000,000

            	 
	 	 	 	 	 
	
              Total

            	 	
              $

            	
              250,000,000

            	 

    

    

    
      
        
        

      

      
        Sch
          A-1

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      B

     

    Iconix
      Brand Group, Inc.

     

    $250,000,000
      1.875% Convertible Senior Subordinated Notes due 2012

     

    1. The
      initial public offering price of the Securities shall be 100% of the principal
      amount thereof, plus accrued interest, if any, from the date of
      issuance.

     

    2. The
      purchase price to be paid by the Initial Purchaser for the Securities shall
      be
      97.75% of the principal amount thereof.

     

    3. The
      interest rate on the Securities shall be 1.875% per annum.

     

    
      
        
        

      

      
        Sch
          B-1

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      C

     

    Pricing
      Supplement

     

    Iconix
      Brand Group, Inc.

    (ICON/NASDAQ)

    144A
      Convertible Senior Subordinated Notes Due 2012

    

    Offering
      Size: $250,000,000

    Overallotment
      Option: $37,500,000

    Issue
      Price:
      $1,000.00
      per note (100%)

    Maturity:
      June
      30,
      2012

    Interest
      Rate: 1.875%
      payable semiannually in arrears in cash

    Last
      Sale (6/14/07):
      $21.20

    Conversion
      Price: Approximately $27.56

    Conversion
      Premium: 30.0%

    Conversion
      Rate: 36.2845

    Conversion
      Rate Cap: 47.1698

    Conversion
      Trigger Price: $35.83

    Aggregate
      Share Cap: In
      no
      event will the aggregate number of remaining shares of common stock to be issued
      upon conversion of any note exceed the aggregate share cap of 39.4 shares per
      $1,000 principal amount of notes, subject to adjustment. 

    Interest
      Payment Dates: June
      30
      and December 31, beginning December 31, 2007

    Redemption:
      None

    Put
      Dates: None

    Make
      Whole Premium upon a Fundamental Change: If
      a
      fundamental change occurs and a holder elects to convert in connection with
      such
      transaction, the conversion rate will be increased by a number of shares. The
      number of additional shares will be determined by reference to the following
      table and is based on the date on which such fundamental change becomes
      effective and the price paid per share of common stock on the effective
      date:

    

    
      	
              Stock
                Price on

            	 	
              Make
                Whole Premium Upon Fundamental Change (Increase in Applicable Conversion
                Rate)

            	 
	
              Effective
                Date

            	 	
              6/20/07

            	 	
              6/30/08

            	 	
              6/30/09

            	 	
              6/30/10

            	 	
              6/30/11

            	 	
              6/30/12

            	 
	
              $21.20

            	 	 	
              10.8853
                

            	 	 	
              10.8853
                

            	 	 	
              10.8853
                

            	 	 	
              10.8853
                

            	 	 	
              10.8853
                

            	 	 	
              10.8853

            	 
	
              $25.00

            	 	 	
              7.8277
                

            	 	 	
              7.6734
                

            	 	 	
              7.3829
                

            	 	 	
              6.8986
                

            	 	 	
              5.9690
                

            	 	 	
              3.7155
                

            	 
	
              $27.56

            	 	 	
              6.4018
                

            	 	 	
              6.1674
                

            	 	 	
              5.7831
                

            	 	 	
              5.1800
                

            	 	 	
              4.0763
                

            	 	 	
              0.0000
                

            	 
	
              $30.00

            	 	 	
              5.3592
                

            	 	 	
              5.0800
                

            	 	 	
              4.6496
                

            	 	 	
              3.9952
                

            	 	 	
              2.8499
                

            	 	 	
              0.0000
                

            	 
	
              $40.00

            	 	 	
              2.8770
                

            	 	 	
              2.5727
                

            	 	 	
              2.1522
                

            	 	 	
              1.5770
                

            	 	 	
              0.7514
                

            	 	 	
              0.0000
                

            	 
	
              $50.00

            	 	 	
              1.7491
                

            	 	 	
              1.4976
                

            	 	 	
              1.1723
                

            	 	 	
              0.7684
                

            	 	 	
              0.2884
                

            	 	 	
              0.0000
                

            	 
	
              $60.00

            	 	 	
              1.1547
                

            	 	 	
              0.9603
                

            	 	 	
              0.7200
                

            	 	 	
              0.4458
                

            	 	 	
              0.1687
                

            	 	 	
              0.0000
                

            	 
	
              $70.00

            	 	 	
              0.8056
                

            	 	 	
              0.6575
                

            	 	 	
              0.4827
                

            	 	 	
              0.2984
                

            	 	 	
              0.1215
                

            	 	 	
              0.0000
                

            	 
	
              $80.00

            	 	 	
              0.5833
                

            	 	 	
              0.4724
                

            	 	 	
              0.3472
                

            	 	 	
              0.2162
                

            	 	 	
              0.0944
                

            	 	 	
              0.0000
                

            	 
	
              $90.00

            	 	 	
              0.4409
                

            	 	 	
              0.3537
                

            	 	 	
              0.2592
                

            	 	 	
              0.1637
                

            	 	 	
              0.0751
                

            	 	 	
              0.0000
                

            	 
	
              100.00

            	 	 	
              0.3389
                

            	 	 	
              0.2700
                

            	 	 	
              0.1984
                

            	 	 	
              0.1269
                

            	 	 	
              0.0601
                

            	 	 	
              0.0000
                

            	 

    

     

    If
      the
      stock price on the effective date exceeds $100.00 per share, subject to
      adjustment, no adjustment to the applicable conversion rate will be
      made.

    If
      the
      stock price on the effective date is less than $21.20 per share, subject to
      adjustment, no adjustment to the applicable conversion rate will be
      made.

    

    Make
      Whole Premium upon a Specified Accounting Change: If
      we
      choose to redeem the notes upon a specified accounting change and a holder
      elects to convert in connection with such redemption, the conversion rate will
      be increased by a number of shares. The number of additional shares will be
      based on a formula as further described in the Offering Memorandum.

    

    Exercise
      Price of Sold Warrants: The
      sold
      warrants have an exercise price that is 100% higher than the closing price
      of
      our common stock on June 14, 2007

    

    

    Trade
      Date: 6/14/07

    Settlement
      Date (T+4): 6/20/07

    144A
      CUSIP: 451055AA5

    

    Bookrunners:

    
      
        	Merrill
                Lynch & Co. 	Lehman
                Brother	 

      

    

     

    
      
        
        

      

      
        Sch
          C-1

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      D

     

    List
      of
      Directors and Executive Officers of the Company Subject to Lock-Up

     

    Neil
      Cole

     

    David
      Conn

     

    Warren
      Clamen

     

    Andrew
      Tarshis

     

    Deborah
      Sorell Stehr

     

    
      
        
        

      

      
        Sch
          D-1

        
          

        

      

      
        
        

      

    

    Exhibit
      A-1

     

    FORM
      OF
      OPINION OF COMPANY’S COUNSEL

    TO
      BE
      DELIVERED PURSUANT TO

    SECTION
      5(a)

     

    (i)  The
      Company has been duly incorporated and is validly existing as a corporation
      in
      good standing under the laws of the State of Delaware. The Company has corporate
      power and authority to own, lease and operate its properties and to conduct
      its
      business as described in the Disclosure Package and Final Offering Memorandum
      and to enter into and perform its obligations under the Purchase
      Agreement.

     

    (ii)  The
      Company is duly qualified as a foreign corporation to transact business and
      is
      in good standing in each jurisdiction set forth on Schedule A
      hereto.

     

    (iii)  The
      shares of issued and outstanding capital stock of the Company have been duly
      authorized and validly issued and are fully paid and non-assessable; and none
      of
      the outstanding shares of capital stock of the Company was issued in violation
      of the preemptive or other similar rights of any securityholder of the Company
      under the DGCL, Certificate of Incorporation or the agreements listed in
      Schedule B hereto.

     

    (iv)  The
      issuance of the shares of Common Stock upon conversion of the Securities is
      not
      subject to the preemptive or other similar rights of any securityholder of
      the
      Company under the DGCL, Certificate of Incorporation or the agreements listed
      in
      Schedule B hereto.

     

    (v)  Each
      Subsidiary has been duly incorporated and is validly existing as a corporation
      in good standing under the laws of the jurisdiction of its incorporation, has
      corporate power and authority to own, lease and operate its properties and
      to
      conduct its business as described in the Disclosure Package and Final Offering
      Memorandum and is duly qualified as a foreign corporation and is in good
      standing in each jurisdiction set forth in Schedule A hereto; except as
      otherwise disclosed in the Disclosure Package and Final Offering Memorandum,
      all
      of the issued and outstanding capital stock of each Subsidiary has been duly
      authorized and validly issued, is fully paid and non-assessable and, to our
      knowledge, is owned by the Company, directly or through subsidiaries, free
      and
      clear of any security interest, mortgage, pledge, lien, encumbrance, claim
      or
      equity; none of the outstanding shares of capital stock of any Subsidiary was
      issued in violation of the preemptive or similar rights of any securityholder
      of
      such Subsidiary under the DGCL, Certificate of Incorporation or the agreements
      listed in Schedule B hereto..

     

    (vi)  The
      Purchase Agreement has been duly authorized, executed and delivered by the
      Company.

     

    (vii)  The
      Indenture has been duly authorized, executed and delivered by the
      Company.

     

    (viii)  The
      Registration Rights Agreement has been duly authorized, executed and delivered
      by the Company.

     

    (ix)  The
      Securities are in the form contemplated by the Indenture, and have been duly
      authorized by the Company.

     

    (x)  Upon
      issuance and delivery of the Securities in accordance with the Purchase
      Agreement and the Indenture, the Securities shall be convertible into cash
      up to
      the principal amount of the Securities and, with respect to any excess
      conversion value, into cash, shares of Common Stock, or a combination of cash
      and Common Stock, at the Company’s option in accordance with the terms of the
      Securities and the Indenture; the shares of Common Stock issuable upon
      conversion of the Securities have been duly authorized and, as of the Closing
      Time, reserved for issuance upon such conversion by all necessary corporate
      action; such shares, when issued upon such conversion and assuming that at
      the
      time of such issuance the Company has a sufficient number of authorized and
      unissued shares of Common Stock available therefor, will be validly issued
      and
      will be fully paid and non-assessable.

     

    
      
        
        

      

      
        A-1-1

        
          

        

      

      
        
        

      

    

     

    (xi)  The
      Securities and the Indenture conform in all material respects to the
      descriptions thereof contained in the Disclosure Package and Final Offering
      Memorandum.

     

    (xii)  The
      documents incorporated by reference in the Disclosure Package and Final Offering
      Memorandum (other than the financial statements and supporting schedules therein
      or omitted therefrom, as to which we need express no opinion), when they were
      filed with the Commission complied as to form in all material respects with
      the
      requirements of the 1934 Act and the rules and regulations of the Commission
      thereunder.

     

    (xiii)  To
      our
      knowledge, there is not pending or threatened any action, suit, proceeding,
      inquiry or investigation, to which the Company or any subsidiary is a party,
      or
      to which the property of the Company or any subsidiary is subject, before or
      brought by any court or governmental agency or body, domestic or foreign, which
      would reasonably be expected to result in a Material Adverse Effect, or which
      would reasonably be expected to materially and adversely affect the consummation
      of the transactions contemplated in the Purchase Agreement or the performance
      by
      the Company of its obligations thereunder.

     

    (xiv)  The
      statements set forth in the Disclosure Package and Final Offering Memorandum
      and
      the Final Offering Memorandum under the caption “Certain U.S. Federal Income Tax
      Provisions,” insofar as such statements purport to summarize matters of U.S.
      federal income tax laws or legal conclusions with respect thereto, and subject
      to the limitations, qualifications and assumptions set forth therein, fairly
      summarize the matters set forth therein in all material respects.

     

    (xv)  The
      information in the Disclosure Package and Final Offering Memorandum under
“Capitalization,” “Description of Existing Securities,” “Legal Matters,” and
“Description of Securities,” to the extent that it constitutes matters of law,
      summaries of legal matters, the Company’s charter and by-laws or legal
      proceedings, or legal conclusions, has been reviewed by us and is correct in
      all
      material respects.

     

    (xvi)  All
      descriptions in the Disclosure Package and Final Offering Memorandum of
      contracts and other documents to which the Company or its subsidiaries are
      a
      party are accurate in all material respects.

     

    (xvii)  No
      filing
      with, or authorization, approval, consent, license, order, registration,
      qualification or decree of, any court or governmental authority or agency,
      domestic or foreign (other than as may be required under the securities or
      blue
      sky laws of the various states, as to which we express no opinion) which an
      attorney using prudent judgment would expect to be applicable to transactions
      of
      the type contemplated by the Purchase Agreement (“Governmental Approvals”) is
      necessary or required in connection with the due authorization, execution and
      delivery of the Purchase Agreement or the due execution, delivery or performance
      of the Indenture and the Registration Rights Agreement by the Company or for
      the
      offering, issuance, sale or delivery of the Securities to the Initial Purchaser
      or the initial resale of the Securities by the Initial Purchasers, in each
      case,
      in accordance with the terms of the Purchase Agreement.

     

    
      
        
        

      

      
        A-1-2

        
          

        

      

      
        
        

      

    

     

    (xviii)  In
      reliance upon the representations and warranties of the Company and the Initial
      Purchasers in the Purchase Agreement, it is not necessary in connection with
      the
      offer, sale and delivery of the Securities to the Initial Purchaser or in
      connection with the initial resale of the Securities by the Initial Purchasers,
      in each case, in the manner contemplated by the Purchase Agreement and the
      Disclosure Package and Final Offering Memorandum to register the Securities
      under the 1933 Act or to qualify the Indenture under the Trust Indenture Act
      of
      1939, it being understood that no opinion is expressed by us as to the
      securities or blue sky laws of the various states in which the Securities will
      be offered or sold or as to any resale of Securities subsequent to the resales
      thereof by the Initial Purchaser.

     

    (xix)  The
      execution, delivery and performance of the Purchase Agreement, the Indenture,
      the Registration Rights Agreement and the Securities and the consummation of
      the
      transactions contemplated in the Purchase Agreement and in the Disclosure
      Package and Final Offering Memorandum (including the use of the proceeds from
      the sale of the Securities as described in the Disclosure Package and Final
      Offering Memorandum under the caption “Use of Proceeds”) and compliance by the
      Company with its obligations under the Purchase Agreement, the Indenture, the
      Registration Rights Agreement and the Securities do not and will not, whether
      with or without the giving of notice or lapse of time or both, conflict with
      or
      constitute a breach of, or default or Repayment Event under or result in the
      creation or imposition of any lien, charge or encumbrance upon any property
      or
      assets of the Company or its subsidiaries thereof pursuant to any of the
      agreements listed on Schedule B hereto, nor will such action result in any
      violation of the provisions of the charter or by-laws of the Company or its
      subsidiaries, or any applicable law, statute, rule, regulation, judgment, order,
      writ or decree, known to us, of any government, government instrumentality
      or
      court, domestic or foreign, having jurisdiction over the Company or its
      subsidiaries or any of their respective properties, assets or operations except
      as disclosed in the Disclosure Package and Final Offering
      Memorandum.

     

    (xx)  The
      Company is not required, and after giving effect to the issuance and sale of
      the
      Securities and the application of the net proceeds therefrom as described in
      the
      Disclosure Package and Final Offering Memorandum will not be required to,
      register as “investment company” under the 1940 Act.

     

    Nothing
      has come to our attention that would lead us to believe that (1) as of the
      Applicable Time, the Disclosure Package (except for the financial statements
      and
      schedules and other financial data included or incorporated by reference therein
      or omitted therefrom, as to which we need make no statement) included any untrue
      statement of a material fact or omitted to state any material fact required
      to
      be stated therein or necessary to make the statements therein not misleading
      or
      (2) that the Offering Memorandum or any amendment or supplement thereto (except
      for financial statements and schedules and other financial data included or
      incorporated by reference therein or omitted therefrom as to which we need
      make
      no statement), at the time the Offering Memorandum was issued, at the time
      any
      such amended or supplemented Offering Memorandum was issued or at Closing Time,
      included or includes an untrue statement of a material fact or omitted or omits
      to state a material fact necessary in order to make the statements therein,
      in
      the light of the circumstances under which they were made, not
      misleading.

     

    In
      rendering such opinion, such counsel may rely, as to matters of fact (but not
      as
      to legal conclusions), to the extent they deem proper, on certificates of
      responsible officers of the Company and public officials. Such opinion shall
      not
      state that it is to be governed or qualified by, or that it is otherwise subject
      to, any treatise, written policy or other document relating to legal opinions,
      including, without limitation, the Legal Opinion Accord of the ABA Section
      of
      Business Law (1991).

     

    
      
        
        

      

      
        A-1-3

        
          

        

      

      
        
        

      

    

     

    Exhibit
      A-2

     

    FORM
      OF
      OPINION OF COUNSEL OF THE COMPANY

    TO
      BE
      DELIVERED PURSUANT TO SECTION 5(a)

     

    (i)  
      The
      Company is duly qualified as a foreign corporation to transact business and
      is
      in good standing in each jurisdiction in which such qualification is required,
      whether by reason of the ownership or leasing of property or the conduct of
      business, except where the failure so to qualify or to be in good standing
      would
      not result in a Material Adverse Effect.

     

    (ii)  The
      authorized, issued and outstanding capital stock of the Company is as set forth
      in the Disclosure Package and Final Offering Memorandum in the column entitled
      “Actual” under the caption “Capitalization.”

     

    (iii)  The
      shares of issued and outstanding capital stock of the Company have been duly
      authorized and validly issued and are fully paid and non-assessable; and none
      of
      the outstanding shares of capital stock of the Company was issued in violation
      of the preemptive or other similar rights of any securityholder of the Company
      under the DGCL, Certificate of Incorporation or any agreement to which the
      Company is a party.

     

    (iv)  The
      issuance of the shares of Common Stock upon conversion of the Securities is
      not
      subject to the preemptive or other similar rights of any securityholder of
      the
      Company under the DGCL, Certificate of Incorporation or any agreement known
      to
      us to which the Company is a party.

     

    (v)  None
      of
      the outstanding shares of capital stock of any Subsidiary was issued in
      violation of the preemptive or similar rights of any securityholder of such
      Subsidiary under the DGCL, Certificate of Incorporation or any agreement to
      which the Company is a party. 

     

    (vi)  The
      execution, delivery and performance of the Purchase Agreement, the Indenture,
      the Registration Rights Agreement and the Securities and the consummation of
      the
      transactions contemplated in the Purchase Agreement and in the Disclosure
      Package and Final Offering Memorandum (including the use of the proceeds from
      the sale of the Securities as described in the Disclosure Package and Final
      Offering Memorandum under the caption “Use of Proceeds”) and compliance by the
      Company with its obligations under the Purchase Agreement, the Indenture, the
      Registration Rights Agreement and the Securities do not and will not, whether
      with or without the giving of notice or lapse of time or both, conflict with
      or
      constitute a breach of, or default or Repayment Event under or result in the
      creation or imposition of any lien, charge or encumbrance upon any property
      or
      assets of the Company or its subsidiaries thereof pursuant to any contract,
      indenture, mortgage, deed of trust, loan or credit agreement, note, lease or
      any
      other agreement or instrument, known to us, to which the Company or its
      subsidiaries is a party or by which it or any of them may be bound, or to which
      any of the property or assets of the Company or its subsidiaries is subject
      (except for such conflicts, breaches, defaults or Repayment Events or liens,
      charges or encumbrances that would not have a Material Adverse Effect), nor
      will
      such action result in any violation of the provisions of the charter or by-laws
      of the Company or its subsidiaries, or any applicable law, statute, rule,
      regulation, judgment, order, writ or decree, known to me, of any government,
      government instrumentality or court, domestic or foreign, having jurisdiction
      over the Company or its subsidiaries or any of their respective properties,
      assets or operations except as disclosed in the Disclosure Package and Final
      Offering Memorandum.

     

    
      
        
        

      

      
        A-2-1

        
          

        

      

      
        
        

      

    

    Exhibit
      A-3

     

    FORM
      OF
      OPINION OF COUNSEL OF THE COMPANY REGARDING INTELLECTUAL

     PROPERTY
      RIGHTS

    TO
      BE
      DELIVERED PURSUANT TO SECTION 5(a)

    

    FORM
      OF
      IN-HOUSE OPINION OF INTELLECTUAL PROPERTY COUNSEL

     

     

    

     

    [To
      be
      placed on Company Letterhead]

     

    Merrill
      Lynch, Pierce, Fenner & Smith 

    Incorporated

    Lehman
      Brothers Inc.

    

    as
      Initial Purchasers

    

    c/o
      Merrill Lynch, Pierce, Fenner & Smith

    Incorporated

    Lehman
      Brothers Inc.

    

    Re:
      Iconix Brand Group, Inc.

    [____]
      Shares
      of Common Stock

     

    Ladies
      and Gentlemen:

     

    I
      am the
      general counsel of Iconix Brand Group, Inc., a Delaware corporation (the
“Company”).
      This
      opinion is being furnished pursuant to Section 5(a) of the Purchase Agreement,
      dated June 14, 2007 (the “Purchase
      Agreement”;
      terms
      not defined herein shall have the meanings ascribed to them in the Purchase
      Agreement), between the Company and Merrill Lynch & Co., Merrill Lynch,
      Pierce, Fenner & Smith Incorporated and Lehman Brothers Inc., as Initial
      Purchasers, in connection with the issue and sale by the Company of $250,000,000
      aggregate principal amount of the Company’s ●% Convertible Senior Subordinated
      Notes due 2012 (the “Securities”) by the several Initial
      Purchasers.

     

    I
      am
      familiar with the efforts of the Company and its subsidiaries (collectively,
      the
“Company
      Group”)
      to
      obtain trademarks in the United States and abroad. In connection with this
      opinion, I have reviewed the following documents and performed the following
      actions: 

     

    I
      have
      reviewed the statements in the Disclosure Package and Final Offering Memorandum,
      including statements under the captions “Risk Factors”, “____________” and
“______________” (collectively, the “Intellectual
      Property Sections”).

     

    I
      have
      reviewed all records, documents, instruments and agreements in our possession
      or
      under our control relating to the intellectual property matters of the Company
      Group, including those relating to the Company Group’s trademark registrations
      and applications and identified in Schedule A attached hereto and intellectual
      property agreements identified in Schedule B. In performing our review of such
      records, documents, instruments and agreements, we have assumed the genuineness
      of all signatures other than with respect to the Company Group, on the copies
      of
      such records, documents, instruments and agreements submitted to us as
      certified, conformed or photographic copies.

     

    
      
        
        

      

      
        A-3-1

        
          

        

      

      
        
        

      

    

     

    Based
      upon the foregoing, we are of the opinion that:

     

    
      	(i)  	
              Schedule
                A attached hereto sets forth a true and complete list of all trademark
                registrations and applications owned by the Company Group that are
                material to the business of the Company Group as presently conducted
                (collectively, the “Material
                Trademarks”).
                Schedule B attached hereto sets forth a true and complete list of
                all
                Material Trademark license and other agreements related to the Material
                Trademarks to which the Company or a subsidiary of the Company is
                a party
                (“Trademark
                Licenses”).
                No copyright (whether registered or unregistered) nor any patent,
                individually or in the aggregate, is material to the business of
                the
                Company Group as presently
                conducted.

            

    

     

    
      	(ii)  	
              The
                Company Group is the exclusive owner of all right, title, and interest
                in
                and to the Material Trademarks and to all other trademarks used in
                the
                business of the Company Group as presently conducted (the “Secondary
                Trademarks”
                and, together with the Material Trademarks, the “Company
                Trademarks”);
                each pending Material Trademark is being diligently prosecuted by
                the
                Company or a Company subsidiary. 

            

    

     

    
      	(iii)  	
              To
                the best of my knowledge, each Company Trademark has been duly maintained
                and is in full force and in effect. Each of the Material Trademarks
                and,
                to the best of my knowledge, each of the Secondary Trademarks, is
                valid
                and enforceable, and no Material Trademark and, to the best of my
                knowledge, no Secondary Trademark, has been adjudged invalid or
                unenforceable in whole or in part.

            

    

     

    
      	(iv)  	
              To
                the best of my knowledge, (A) each Trademark License is in full force
                and
                in effect, (B) neither any member of the Company Group nor any
                counterparty to any Trademark License is in material breach or default
                thereof, and (C) the Company is not engaged in any activity that
                would be
                prohibited under the terms of any Trademark License.

            

    

     

    
      	(v)  	
              The
                operation of the business of the Company Group, as presently conducted
                or
                as proposed in the Disclosure Package and Final Offering Memorandum
                to be
                conducted, together with the use of the Company Trademarks and Trademark
                Licenses, does not infringe, misappropriate or otherwise violate
                the
                intellectual property rights of any third party, which infringement,
                misappropriation or violation would reasonably be expected to have
                a
                Material Adverse Effect, as such term is defined in the Purchase
                Agreement. Except as disclosed in the Disclosure Package and Final
                Offering Memorandum, no actions, suits, claims or proceedings have
                been
                asserted or, to the best of my knowledge, threatened against the
                Company
                or any Company subsidiary in the past five (5) years alleging any
                of the
                foregoing or seeking to challenge, deny or restrict the operation
                of the
                business of the Company or any Company subsidiary or the ownership
                of the
                Company or any Company subsidiary of any Company Trademark or the
                validity
                or scope thereof, which action, suit, claim or proceeding would reasonably
                be expected to have a Material Adverse Effect, as such term is defined
                in
                the Purchase Agreement. No court, governmental agency or body, domestic
                or
                foreign, has issued any order, judgment, decree or injunction restricting
                the operation of the business of the Company or any Company subsidiary
                or
                the ownership or validity of any Company
                Trademark.

            

    

     

    
      
        
        

      

      
        A-3-2

        
          

        

      

      
        
        

      

    

     

    
      	(vi)  	
              To
                the best of my knowledge, no person or entity is engaging in any
                activity
                that infringes, misappropriates or violates the Company Trademarks
                in any
                material respect.

            

    

     

    
      	(vii)  	
              The
                statements and the information contained in the Intellectual Property
                Sections are accurate in all material respects, fairly represent
                the
                matters disclosed therein and do not contain any untrue statement
                of
                material fact or omit to state a material fact or facts necessary
                to make
                the statements therein, in the light of the circumstances under which
                they
                were made, not misleading. 

            

    

     

    Very
      truly yours, 

     

    Andrew
      Tarshis

    

    
      
        
        

      

      
        A-3-3

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      A

    

    Material
      Trademarks

     

    
      
        
        

      

      
        A-3-4

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      B

     

    Trademark
      Licenses

    

    
      
        
        

      

      
        A-3-5

        
          

        

      

      
        
        

      

    

     

    Exhibit
      B

     

    June
      11,
      2007

     

    MERRILL
      LYNCH & CO.

    Merrill
      Lynch, Pierce, Fenner & Smith

    Incorporated

    Lehman
      Brothers Inc.

     

    

    as
      Representatives of the several Initial Purchasers

    

    
      	
              c/o

            	
              Merrill
                Lynch & Co.

            

    

    Merrill
      Lynch, Pierce, Fenner & Smith

    Incorporated

    4
      World
      Financial Center

    New
      York,
      New York 10080

     

    Lehman
      Brothers Inc.

    745
      Seventh Avenue

    New
      York,
      New York 10019

    

    Re: Proposed
      Public Offering by Iconix Brand Group, Inc.

     

    Dear
      Sirs:

     

    The
      undersigned, an executive officer of Iconix Brand Group, Inc., a Delaware
      corporation (the “Company”),
      understands that Merrill Lynch & Co. and Merrill Lynch, Pierce, Fenner &
Smith Incorporated (“Merrill
      Lynch”)
      and
      Lehman Brothers Inc. (“Lehman
      Brothers”)
      propose to enter into a Purchase Agreement (the “Purchase Agreement”)
      with
      the Company, providing for the offering (the “Offering”),
      pursuant to Rule 144A under the Securities Act of 1933, as amended (the
“Securities Act”),
      of
      Convertible Senior Subordinated Notes due 2012 of the Company. Capitalized
      terms
      used herein and not otherwise defined shall have the meanings set forth in
      the
      Purchase Agreement.

     

    In
      recognition of the benefit that the Offering will confer upon the undersigned
      as
      an executive officer of the Company, and for other good and valuable
      consideration, the receipt and sufficiency of which are hereby acknowledged,
      the
      undersigned hereby agrees with each underwriter to be named in the Purchase
      Agreement that, during a period of 60 days from the date of the Final Offering
      Memorandum, the undersigned will not, without the prior written consent of
      Merrill Lynch and Lehman Brothers, directly or indirectly, (i) offer, pledge,
      sell, contract to sell, sell any option or contract to purchase, purchase any
      option or contract to sell, grant any option, right or warrant for the sale
      of,
      or otherwise lend or dispose of or transfer any shares of the Company’s Common
      Stock or any securities convertible into or exchangeable or exercisable for
      Common Stock, whether now owned or hereafter acquired by the undersigned or
      with
      respect to which the undersigned has or hereafter acquires the power of
      disposition (collectively, the “Lock-Up
      Securities”),
      or
      (ii) enter into any swap or any other agreement or any transaction that
      transfers, in whole or in part, directly or indirectly, the economic consequence
      of ownership of the Lock-Up Securities, whether any such swap or transaction
      is
      to be settled by delivery of Common Stock or other securities, in cash or
      otherwise.

     

    Notwithstanding
      the foregoing, and subject to the conditions below, the undersigned may transfer
      the Lock-Up Securities without the prior written consent of Merrill Lynch and
      Lehman Brothers, provided that (1) Merrill Lynch and Lehman Brothers receive
      a
      signed lock-up agreement for the balance of the lock up period from each donee,
      trustee, distributee, or transferee, as the case may be and (2) any such
      transfer shall not involve a disposition for value:

     

    
      
        
        

      

      
        B-1

        
          

        

      

      
        
        

      

    

     

    (i) as
      a bona
      fide gift or gifts; or

     

    (ii) to
      any
      trust for the direct or indirect benefit of the undersigned or the immediate
      family of the undersigned (for purposes of this lock-up agreement, “immediate
      family” shall mean any relationship by blood, marriage or adoption, not more
      remote than first cousin); or

     

    (iii) as
      a
      distribution to limited partners, stockholders or members of the undersigned;
      or

     

    (iv) by
      will
      or intestate succession; or

     

    (v) to
      the
      undersigned’s affiliates or to any investment fund or other entity controlled or
      managed by the undersigned.

     

    Furthermore,
      the undersigned may sell shares of Common Stock of the Company purchased by
      the
      undersigned on the open market if and only if (i) such sales are not required
      to
      be reported in any public report or filing with the Securities Exchange
      Commission, or otherwise; (ii) the undersigned does not otherwise voluntarily
      effect any public filing or report regarding such sales; (iii) the
      transferee/donee agrees to be bound by the terms of this lock-up letter
      agreement to the same extent as if the transferee/donee were a party thereto,
      and (iv) such Selling Shareholder notifies Merrill Lynch and Lehman Brothers
      at
      least two business days prior to proposed transfer or disposition.

     

    The
      undersigned also agrees and consents to the entry of stop transfer instructions
      with the Company’s transfer agent and registrar against the transfer of the
      Lock-Up Securities except in compliance with the foregoing
      restrictions.

    

    

    Very
      truly yours,

     

    Signature: _____________                   
      

     

    Print
      Name: _____________                 
      

     

    
      
        
        

      

      
        B-2

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