Document:

EX-10.1

 EXHIBIT 10.1 
  
 STOCK AND WARRANT PURCHASE AGREEMENT 
  
 Insmed Incorporated  
  
 Ladies & Gentlemen: 
  
 The undersigned,
                                     (the
“Investor”), hereby confirms its agreement with you as follows: 
  
 1.
This Stock and Warrant Purchase Agreement is made as of November 5, 2004 between Insmed Incorporated, a Virginia corporation (the “Company”), and the Investor. 
  
 2. The Company has authorized the sale and issuance of up to 7,680,728 shares (the “Shares”) of common stock of the Company, $0.01
par value per share (the “Common Stock”), and warrants to purchase up to 3,840,360 shares (50% warrant coverage) (the “Warrant Shares”) of Common Stock at an exercise price per share of $2.00 (the “Warrants”) to certain
investors in a private placement (the “Offering”). 
  
 3. The Company
and the Investor agree that the Investor will purchase from the Company and the Company will issue and sell to the Investor Shares and a Warrant to purchase
                     Warrant Shares (50% warrant coverage), for a purchase price of $1.35 per share, or an aggregate purchase price of
$                    , pursuant to the Terms and Conditions for Purchase of Shares attached hereto as Annex I and incorporated herein by
reference as if fully set forth herein (the “Terms and Conditions”). This Stock and Warrant Purchase Agreement, together with the Terms and Conditions which are incorporated herein by reference as if fully set forth herein, may hereinafter
be referred to as the “Agreement”. Unless otherwise requested by the Investor, the Warrant and certificates representing the Shares purchased by the Investor will be registered in the Investor’s name and address as set forth below.
The Warrant shall have the rights, preferences, privileges and restrictions as set forth in the form of Warrant attached hereto as Exhibit B. 
  
 4. The Investor represents that, except as set forth below, (a) it has had no position, office or other material relationship within the past three months with the
Company or persons known to it to be affiliates of the Company, (b) neither it, nor any group of which it is a member or to which it is related, beneficially owns (including the right to acquire or vote) any securities of the Company, (c) it has no
direct or indirect affiliation or association with any NASD member as of the date hereof and (d) immediately following the Closing (as defined in Section 3 of this Agreement), it will not be a person or a member of a group of affiliated or
associated persons that has acquired, or obtained the right to acquire, beneficial ownership of 15% or more of the outstanding securities of the Company’s Common Stock (assuming that 38,409,643 shares of the Company’s Common Stock remain
outstanding at such time). Exceptions:
                                        
                                        
                                        . (If
no exceptions, write “none.” If left blank, response will be deemed to be “none.”) 
  
 Please confirm that the foregoing correctly sets forth the agreement between us by signing in the space provided below for that purpose. By executing this
Agreement, the Investor acknowledges that the Company may use the information in paragraph 4 above and the name and address information below in preparation of the Registration Statement (as defined in Annex 1). 
  
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	 AGREED AND ACCEPTED:
 Insmed Incorporated
	 	 	 	 Investor:
                                        
                                       
 

					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 Print Name:

	 By:
	 	 	 	 	 	 Title:

	 Title:
	 	 	 	 	 	 
	 	 	 	 	 	 	 Address: ___________________________________

	 	 	 	 	 	 	 ___________________________________________

	 	 	 	 	 	 	 Tax ID No.: __________________________________

	 	 	 	 	 	 	 Contact name: ________________________________

	 	 	 	 	 	 	 Telephone: ___________________________________

	 	 	 	 	 	 	 Name in which shares should be registered (if different):

  

 ANNEX I                

  
 TERMS AND CONDITIONS FOR PURCHASE OF SHARES AND WARRANTS

  
 1. Authorization and Sale of the Shares. Subject to
these Terms and Conditions, the Company has authorized the sale of up to 7,680,728 Shares and Warrants to purchase up to 3,840,364 Warrant Shares (50% warrant coverage). The Company reserves the right to increase or decrease this number. 

 
 2. Agreement to Sell and Purchase the Shares; Subscription Date.

  
 2.1 At the Closing (as defined in Section 3),
the Company will sell to the Investor, and the Investor will purchase from the Company, upon the terms and conditions hereinafter set forth, the number of Shares and a Warrant to purchase the number of Warrant Shares each as set forth in Section 3
of the Stock and Warrant Purchase Agreement to which these Terms and Conditions are attached at the purchase price set forth thereon. 
  
 2.2 The Company may enter into the same form of Stock and Warrant Purchase Agreement, including these Terms and Conditions, with certain
other investors (the “Other Investors”) and expects to complete sales of Shares and Warrants to them. (The Investor and the Other Investors are hereinafter sometimes collectively referred to as the “Investors,” and the Stock and
Warrant Purchase Agreement to which these Terms and Conditions are attached and the Stock and Warrant Purchase Agreements (including attached Terms and Conditions) executed by the Other Investors are hereinafter sometimes collectively referred to as
the “Agreements.”) The Company may accept executed Agreements from Investors for the purchase of Shares and Warrants commencing upon the date on which the Company provides the Investors with the proposed purchase price per Share plus
Warrant exercise price and concluding upon the date (the “Subscription Date”) on which the Company has (i) executed Agreements with Investors for the purchase of at least 6,000,000 Shares and Warrants to purchase at least 3,000,000 Warrant
Shares (50% warrant coverage), and (ii) notified Wells Fargo Securities, LLC, in its capacity as placement agent for this transaction, in writing that it is no longer accepting additional Agreements from Investors for the purchase of Shares and
Warrants. The Company may not enter into any Agreements after the Subscription Date. 
  
 2.3 The obligations of each Investor under any Agreement are several and not joint with the obligations of any Other Investor, and no
Investor shall be responsible in any way for the performance of the obligations of any other Investor under any Agreement. Nothing contained herein, and no action taken by any Investor hereto, shall be deemed to constitute the Investors as a
partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Investors are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated hereby, provided
that such obligations or the transactions contemplated hereby may be modified, amended or waived in accordance with Section 9 below. Each Investor shall be entitled to independently protect and enforce its rights, including without limitation the
rights arising out of this Agreement (provided, that such rights may be modified, amended or waived in accordance with Section 9 below) and the Warrant, and it shall not be necessary for any Other Investor to be joined as an additional party in any
proceeding for such purpose. 
  
 3. Delivery of the Shares and
Warrants at Closing. The completion of the purchase and sale of the Shares and Warrants (the “Closing”) shall occur (the “Closing Date”) on November 8, 2004, at the offices of the Company’s counsel. At the Closing, the
Company shall deliver to the Investor a Warrant representing the number of Warrant Shares and one or more stock certificates representing the number of Shares, in each case as is set forth in Section 3 of the Stock and Warrant Purchase Agreement,
each such certificate to be registered in the name of the Investor or, if so indicated on the signature page of the Stock and Warrant Purchase Agreement, in the name of a nominee designated by the Investor. 
  

 The Company’s obligation to issue the Shares and the Warrant to the Investor shall be subject to the
following conditions, any one or more of which may be waived by the Company: (a) receipt by the Company of a certified or official bank check or wire transfer of funds in the full amount of the purchase price for the Shares and the Warrant being
purchased hereunder as set forth in Section 3 of the Stock and Warrant Purchase Agreement; (b) completion of the purchases and sales under the Agreements with the Other Investors; and (c) the accuracy of the representations and warranties made by
the Investors and the fulfillment of those undertakings of the Investors to be fulfilled prior to the Closing. 
  
 The Investor’s obligation to purchase the Shares and the Warrant shall be subject to the following conditions, any one or more of which may be waived
by the Investor: (a) Investors shall have executed Agreements for the purchase of at least 6,000,000 Shares and Warrants for the purchase of at least 3,000,000 Warrant Shares (50% warrant coverage), (b) the representations and warranties of the
Company set forth herein shall be true and correct as of the Closing Date in all material respects (except for representations and warranties that speak as of a specific date, which representations and warranties shall be true and correct as of such
date) and (c) the Investor shall have received such documents as such Investor shall reasonably have requested, including, a standard opinion of the Company’s counsel as to the matters set forth in Section 4.2 and as to exemption from the
registration requirements of the Securities Act of 1933, as amended (the “Securities Act”), of the sale of the Shares and Warrants. 
  
 4. Representations, Warranties and Covenants of the Company. The Company hereby represents and warrants to, and covenants with, the Investor, as
follows: 
  
 4.1 Organization. The
Company is duly organized and validly existing in good standing under the laws of the jurisdiction of its organization. Each of the Company and its Subsidiaries (as defined in Rule 405 under the Securities Act) has full power and authority to own,
operate and occupy its properties and to conduct its business as presently conducted and as described in the documents filed by the Company under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), since the end of its
most recently completed fiscal year through the date hereof (the “Exchange Act Documents”) and is registered or qualified to do business and in good standing in each jurisdiction in which the nature of the business conducted by it or the
location of the properties owned or leased by it requires such qualification and where the failure to be so qualified would have a material adverse effect upon the condition (financial or otherwise), earnings, business or business prospects,
properties or operations of the Company and its Subsidiaries, considered as one enterprise (a “Material Adverse Effect”), and no proceeding has been instituted in any such jurisdiction, revoking, limiting or curtailing, or seeking to
revoke, limit or curtail, such power and authority or qualification. 
  
 4.2 Due Authorization and Valid Issuance. The Company has all requisite power and authority to execute, deliver and perform its obligations under the Agreements and the Warrants, and the Agreements and the
Warrants have been duly authorized and validly executed and delivered by the Company and constitute legal, valid and binding agreements of the Company enforceable against the Company in accordance with their terms, except as rights to indemnity and
contribution may be limited by state or federal securities laws or the public policy underlying such laws, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
creditors’ and contracting parties’ rights generally and except as enforceability may be subject to general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law). The Shares and
the Warrant being purchased by the Investor hereunder and the Warrant Shares issuable pursuant to the Warrant will, upon issuance and payment therefor pursuant to the terms hereof and thereof, be duly authorized, validly issued, fully-paid and
nonassessable. 
  
 4.3 Non-Contravention.
The execution and delivery of the Agreements and the Warrants, the issuance and sale of the Shares and the Warrants under the Agreements and the Warrant Shares under the Warrant, the fulfillment of the terms of the Agreements and the Warrants and
the 

  

 
consummation of the transactions contemplated thereby will not (A) conflict with or constitute a violation of, or default (with the passage of time or
otherwise) under, (i) any agreement or other instrument filed or incorporated by reference as an exhibit to any of the Exchange Act Documents (the “Exchange Act Exhibits”), (ii) the charter, by-laws or other organizational documents of the
Company or any Subsidiary, or (iii) any law, administrative regulation, ordinance or order of any court or governmental agency, arbitration panel or authority applicable to the Company or any Subsidiary or their respective properties, except in the
case of clauses (i) and (iii) for any such conflicts, violations or defaults which are not reasonably likely to have a Material Adverse Effect or (B) result in the creation or imposition of any lien, encumbrance, claim, security interest or
restriction whatsoever upon any of the material properties or assets of the Company or any Subsidiary or an acceleration of indebtedness pursuant to any obligation, agreement or condition contained in any Exchange Act Exhibit. No consent, approval,
authorization or other order of, or registration, qualification or filing with, any regulatory body, administrative agency, or other governmental body in the United States or any other person is required for the execution and delivery of the
Agreements and the Warrants, and the valid issuance and sale of the Shares and Warrants to be sold pursuant to the Agreements, and the valid issuance of the Warrant Shares under the Warrant, other than such as have been made or obtained, and except
for any post-closing securities filings or notifications required to be made under federal or state securities laws. 
  
 4.4 Capitalization. The capitalization of the Company as of June 30, 2004 is as set forth in the most recent applicable Exchange
Act Documents, increased as set forth in the next sentence. The Company has not issued any capital stock since that date other than pursuant to (i) employee benefit plans disclosed in the Exchange Act Documents, or (ii) outstanding warrants, options
or other securities disclosed in the Exchange Act Documents. The Shares and the Warrants to be sold pursuant to the Agreements, and the Warrant Shares to be issued pursuant to the Warrants, have been duly authorized, and when issued and paid for in
accordance with the terms of the Agreements and the Warrants, as the case may be, will be duly and validly issued, fully paid and nonassessable. The outstanding shares of capital stock of the Company have been duly and validly issued and are fully
paid and nonassessable, have been issued in compliance with all federal and state securities laws, and were not issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities. Except as set forth in or
contemplated by the Exchange Act Documents, there are no outstanding rights (including, without limitation, preemptive rights), warrants or options to acquire, or instruments convertible into or exchangeable for, any unissued shares of capital stock
or other equity interest in the Company or any Subsidiary, or any contract, commitment, agreement, understanding or arrangement of any kind to which the Company is a party or of which the Company has knowledge and relating to the issuance or sale of
any capital stock of the Company or any Subsidiary, any such convertible or exchangeable securities or any such rights, warrants or options. Without limiting the foregoing, no preemptive right, co-sale right, right of first refusal, registration
right, or other similar right exists with respect to the Shares, the Warrants or the Warrant Shares or the issuance and sale thereof, other than as provided in the Agreements. No further approval or authorization of any stockholder, the Board of
Directors of the Company or others is required for the issuance and sale of the Shares, the Warrants and the Warrant Shares. The Company owns the entire equity interest in each of its Subsidiaries, free and clear of any pledge, lien, security
interest, encumbrance, claim or equitable interest, other than as described in the Exchange Act Documents. Except as disclosed in the Exchange Act Documents, there are no stockholders agreements, voting agreements or other similar agreements with
respect to the Common Stock to which the Company is a party or, to the knowledge of the Company, between or among any of the Company’s stockholders. 
  
 4.5 Legal Proceedings. There is no material legal or governmental proceeding pending or, to the knowledge of the Company,
threatened to which the Company or any Subsidiary is or may be a party or of which the business or property of the Company or any Subsidiary is subject that is not disclosed in the Exchange Act Documents. There are no disagreements of any kind
presently existing between the accountants formerly or presently employed by the Company. 
  
 4.6 No Violations. Neither the Company nor any Subsidiary is (i) in violation of its charter, bylaws, or other organizational
document, (ii) in violation of any law, administrative regulation, 

  

 
ordinance or order of any court or governmental agency, arbitration panel or authority applicable to the Company or any Subsidiary, which violation,
individually or in the aggregate, would be reasonably likely to have a Material Adverse Effect, or (iii) in default (and there exists no condition which, with the passage of time or otherwise, would constitute a default) in any material respect in
the performance of any Exchange Act Exhibit, which would be reasonably likely to have a Material Adverse Effect. 
  
 4.7 Governmental Permits, Etc. With the exception of the matters which are dealt with separately in Sections 4.1, 4.12, 4.13, and
4.14, each of the Company and its Subsidiaries has all necessary franchises, licenses, certificates and other authorizations from any foreign, federal, state or local government or governmental agency, department, or body that are currently
necessary for the operation of the business of the Company and its Subsidiaries as currently conducted and as described in the Exchange Act Documents except where the failure to currently possess could not reasonably be expected to have a Material
Adverse Effect. 
  
 4.8 Intellectual
Property. Except as specifically disclosed in the Exchange Act Documents (i) each of the Company and its Subsidiaries owns or possesses sufficient rights to use all material patents, patent rights, trademarks, copyrights, licenses, inventions,
trade secrets, trade names and know-how (collectively, “Intellectual Property”) described or referred to in the Exchange Act Documents as owned or possessed by it or that are necessary for the conduct of its business as now conducted or as
proposed to be conducted as described in the Exchange Act Documents except where the failure to currently own or possess would not have a Material Adverse Effect, (ii) to the knowledge of the Company, neither the Company nor any of its Subsidiaries
is infringing, or has received any notice of, or has any knowledge of, any asserted infringement by the Company or any of its Subsidiaries of, any rights of a third party with respect to any Intellectual Property that, individually or in the
aggregate, would have a Material Adverse Effect and (iii) neither the Company nor any of its Subsidiaries has received any notice of, or has any knowledge of, infringement by a third party with respect to any Intellectual Property rights of the
Company or of any Subsidiary that, individually or in the aggregate, would have a Material Adverse Effect. 
  
 4.9 Financial Statements. The financial statements of the Company and the related notes contained in the Exchange Act Documents
present fairly, in accordance with generally accepted accounting principles, the financial position of the Company and its Subsidiaries as of the dates indicated, and the results of its operations and cash flows for the periods therein specified
consistent with the books and records of the Company and its Subsidiaries except that the unaudited interim financial statements were or are subject to normal and recurring year-end adjustments which are not expected to be material in amount. Such
financial statements (including the related notes) have been prepared in accordance with generally accepted accounting principles applied on a consistent basis throughout the periods therein specified, except as may be disclosed in the notes to such
financial statements, or in the case of unaudited statements, as may be permitted by the Securities and Exchange Commission (the “SEC”) on Form 10-Q under the Exchange Act and except as disclosed in the Exchange Act Documents. The other
financial information contained in the Exchange Act Documents has been prepared on a basis consistent with the financial statements of the Company. 
  
 4.10 No Material Adverse Change. Except as disclosed in the Exchange Act Documents, since June 30, 2004, there has not been (i) any
material adverse change in the financial condition or earnings of the Company and its Subsidiaries considered as one enterprise, (ii) any material adverse event affecting the Company or its Subsidiaries, (iii) any obligation, direct or contingent,
that is material to the Company and its Subsidiaries considered as one enterprise, incurred by the Company, except obligations incurred in the ordinary course of business, (iv) any dividend or distribution of any kind declared, paid or made on the
capital stock of the Company or any of its Subsidiaries, or (v) any loss or damage (whether or not insured) to the physical property of the Company or any of its Subsidiaries which has been sustained which has a Material Adverse Effect. 

 
 4.11 Disclosure. The representations and
warranties of the Company contained in this Section 4 as of the date hereof and as of the Closing Date, do not contain any 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, in light of the circumstances under
which they were made, not misleading. Except with respect to the material terms and conditions of the transaction contemplated by the Agreements and the Warrants, which shall be publicly disclosed by the Company pursuant to Section 16 hereof, the
Company confirms that neither it nor any person acting on its behalf has provided the Investors with any information that the Company believes constitutes material, non-public information. The Company understands and confirms that the Investors will
rely on the foregoing representations in effecting transactions in the securities of the Company. 
  
 4.12 NASDAQ Compliance. The Company’s Common Stock is registered pursuant to Section 12(g) of the Exchange Act and is listed
on The Nasdaq Stock Market, Inc. National Market (the “Nasdaq National 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 Exchange Act or
de-listing the Common Stock from the Nasdaq National Market, nor has the Company received any notification that the SEC or the National Association of Securities Dealers, Inc. (“NASD”) is currently contemplating terminating such
registration or listing. 
  
 4.13 Reporting
Status. The Company has filed in a timely manner all documents that the Company was required to file under the Exchange Act during the 12 months preceding the date of this Agreement. Pursuant to General Instruction I.B.3 of Form S-3, the Company
is eligible to use Form S-3 to register the Shares and Warrant Shares to be offered for the account of the Investors. The following documents complied in all material respects with the SEC’s requirements as of their respective filing dates, and
the information contained therein as of the date thereof did 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 in light of the circumstances
under which they were made not misleading: 
  
 (a) Annual Report
on Form 10-K for the year ended December 31, 2003 and Quarterly Report on Form 10-Q for the quarter ended June 30, 2004, Forms 8-K filed on February 11, 2004, April 15, 2004 and May 5, 2004, and Proxy Statement on Schedule 14A filed on April 6,
2004; and 
  
 (b) all other documents, if any, filed by the
Company with the SEC during the one-year period preceding the date of this Agreement pursuant to the reporting requirements of the Exchange Act. 
  
 4.14 Listing. The Company shall comply with all requirements of the NASD with respect to the issuance of the Shares, the Warrant
and the Warrant Shares, and the listing of the Shares and Warrant Shares on the Nasdaq National Market. 
  
 4.15 No Manipulation of Stock. The Company has not taken and will not, in violation of applicable law, take, any action designed to
or that might reasonably be expected to cause or result in stabilization or manipulation of the price of the Common Stock to facilitate the sale or resale of the Shares or the Warrant Shares. 
  
 4.16 Company not an “Investment Company”.
The Company has been advised of the rules and requirements under the Investment Company Act of 1940, as amended (the “Investment Company Act”). The Company is not, and immediately after receipt of payment for the Shares and the Warrants
and the Warrant Shares will not be, an “investment company” or an entity “controlled” by an “investment company” within the meaning of the Investment Company Act and shall conduct its business in a manner so that it
will not become subject to the Investment Company Act. 
  
 4.17 Foreign Corrupt Practices. Neither the Company, nor to the knowledge of the Company, any agent or other person acting on behalf of the Company, has (i) directly or indirectly, used any corrupt funds for unlawful contributions,
gifts, entertainment or other unlawful expenses related to 

  

 
foreign or domestic political activity, (ii) made any unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic
political parties or campaigns from corporate funds, (iii) failed to disclose fully any contribution made by the Company (or made by any person acting on its behalf of which the Company is aware) which is in violation of law, or (iv) violated in any
material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended. 
  
 4.18 Accountants. To the Company’s knowledge, Ernst & Young LLP, who the Company expects will consent to the incorporation
by reference of its report dated January 22, 2004 with respect to the consolidated financial statements of the Company included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2003 into the Registration Statement (as
defined below) and the prospectus which forms a part thereof, are and, during the periods covered by their reports, were independent accountants as required by the Securities Act and the rules and regulations promulgated thereunder. 
  
 4.19 Contracts. The contracts described in the
Exchange Act Documents that are material to the Company are in full force and effect on the date hereof, and neither the Company nor, to the Company’s knowledge, any other party to such contracts is in breach of or default under any of such
contracts which would have a Material Adverse Effect. 
  
 4.20 Taxes. The Company has filed all necessary federal, state and foreign income and franchise tax returns and has paid or accrued all taxes shown as due thereon, and the Company has no knowledge of a tax deficiency which has been
or might be asserted or threatened against it which would have a Material Adverse Effect. 
  
 4.21 Transfer Taxes. On the Closing Date, all stock transfer or other taxes (other than income taxes) which are required to be paid
in connection with the sale and transfer of the Shares and the Warrants to be sold to the Investor hereunder will be, or will have been, fully paid or provided for by the Company and all laws imposing such taxes will be or will have been fully
complied with. Upon the issuance of the Warrant Shares pursuant to the Warrant all stock transfer or other taxes (other than income taxes) which are required to be paid in connection therewith will be, or will have been, fully paid or provided for
by the Company and all laws imposing such taxes will be or will have been fully complied with. 
  
 4.22 Private Offering. Assuming the correctness of the representations and warranties of the Investors set forth in Section 5
hereof, the offer and sale of Shares and the Warrants hereunder is and, upon exercise of the Warrants, the issuance of the Warrant Shares will be exempt from registration under the Securities Act. The Company has not distributed and will not
distribute prior to the Closing Date any offering material in connection with this Offering and sale of the Shares and the Warrants other than the documents of which this Agreement is a part or the Exchange Act Documents. The Company has not in the
past nor will it hereafter take any action independent of the placement agent to sell, offer for sale or solicit offers to buy any securities of the Company which would bring the offer, issuance or sale of the Shares and the Warrants as contemplated
by this Agreement, or the issuance of the Warrant Shares pursuant to the Warrant, within the provisions of Section 5 of the Securities Act, unless such offer, issuance or sale was or shall be within the exemptions of Section 3 or Section 4 of the
Securities Act.  
  
 4.23 Disclosure
Controls and Procedures. The Company is in material compliance with all provisions of the Sarbanes-Oxley Act of 2002 which are applicable to it as of the Closing Date. The Company maintains a system of internal control over financial reporting
(as such term is defined in the Exchange Act) sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary to
permit preparation of financial statements in conformity with GAAP and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management’s general or specific authorization, and (iv) the recorded
accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. The Company’s certifying officers are 

  

 
responsible for establishing and maintaining disclosure controls and procedures (as defined in the Exchange Act) for the Company and they have (a) designed
such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under their supervision, to ensure that material information relating to the Company, including its Subsidiaries, is made known to the
certifying officers by others within those entities, particularly during the periods in which the Exchange Act Documents have been prepared; (b) evaluated the effectiveness of the Company’s disclosure controls and procedures and presented in
the applicable Exchange Act Documents their conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the periods covered by such Exchange Act Documents based on such evaluation; and (c) since the last
evaluation date referred to in (b) above, there have been no material changes in the Company’s internal control over financial reporting (as such term is defined in the Exchange Act) or, to the Company’s knowledge, in other factors that
could significantly affect the Company’s internal control over financial reporting. 
  
 4.24 Transactions With Affiliates. Except as disclosed in the Exchange Act Documents, none of the current officers or directors of
the Company is presently a party to any transaction with the Company or any Subsidiary (other than for services as employees, officers and directors), including any contract, agreement or other arrangement providing for the furnishing of services to
or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any officer or director or, to the knowledge of the Company, any entity in which any officer or director has a substantial interest or is
an officer, director, trustee or partner. 
  
 5.
Representations, Warranties and Covenants of the Investor. 
  
 5.1 The Investor represents and warrants to, and covenants with, the Company that: (i) the Investor is an “accredited investor” as defined in Regulation D under the Securities Act and the Investor is also
knowledgeable, sophisticated and experienced in making, and is qualified to make decisions with respect to investments in shares presenting an investment decision like that involved in the purchase of the Shares and the Warrant, including
investments in securities issued by the Company and investments in comparable companies, and has requested, received, reviewed and considered all information it deemed relevant in making an informed decision to purchase the Shares and the Warrant;
(ii) the Investor is acquiring the Warrant to purchase the number of Warrant Shares and the number of Shares, each as set forth in Section 3 of the Stock and Warrant Purchase Agreement, in the ordinary course of its business and for its own account
for investment only and with no present intention of distributing any of such Shares, Warrant or Warrant Shares or any arrangement or understanding with any other persons regarding the distribution of such Shares, Warrant or Warrant Shares; (iii)
the Investor will not, directly or indirectly, offer, sell, pledge, transfer or otherwise dispose of (or solicit any offers to buy, purchase or otherwise acquire or take a pledge of) any of the Shares, Warrant or Warrant Shares except in compliance
with the Securities Act, applicable state securities laws and the respective rules and regulations promulgated thereunder; (iv) the Investor has answered all questions on the Investor Questionnaire for use in preparation of the Registration
Statement and the answers thereto are true, correct and complete as of the date hereof and, unless otherwise disclosed to the Company in writing prior to the Closing Date, will be true, correct and complete as of the Closing Date; (v) the Investor
will notify the Company immediately of any change in any of such information which is required to be disclosed in the Registration Statement until such time as the Investor has sold all of its Shares and Warrant Shares or until the Company is no
longer required to keep the Registration Statement effective; and (vi) the Investor has, in connection with its decision to purchase the number of Shares and the Warrant to purchase the number of Warrant Shares, each as set forth in Section 3 of the
Stock and Warrant Purchase Agreement, relied only upon the Exchange Act Documents and the representations and warranties of the Company contained herein. The Investor understands that its acquisition of the Shares and the Warrant has not been
registered under the Securities Act or registered or qualified under any state securities law in reliance on specific exemptions therefrom, which exemptions may depend upon, among other things, the bona fide nature of the Investor’s investment
intent as expressed herein. Subject to compliance with the Securities Act, applicable securities laws and the respective rules and regulations promulgated thereunder, nothing contained herein shall be deemed a representation or warranty by such
Investor to hold the Shares, Warrant or Warrant Shares for any period of 

  

 
time. The Investor has completed or caused to be completed and delivered to the Company the Investor Questionnaire, which questionnaire is true, correct and
complete in all material respects. 
  
 5.2 The
Investor acknowledges, represents and agrees that no action has been or will be taken in any jurisdiction outside the United States by the Company that would permit an offering of the Shares, Warrant or Warrant Shares or possession or distribution
of offering materials in connection with the issue of the Shares, Warrant or Warrant Shares in any jurisdiction outside the United States where legal action by the Company for that purpose is required. Each Investor outside the United States will
comply with all applicable laws and regulations in each foreign jurisdiction in which it purchases, offers, sells or delivers Shares, the Warrant or Warrant Shares or has in its possession or distributes any offering material, in all cases at its
own expense. 
  
 5.3 The Investor hereby
covenants with the Company not to make any sale of the Shares, Warrant or Warrant Shares without complying with the provisions of this Agreement and without causing the prospectus delivery requirement under the Securities Act to be satisfied
(whether by delivery of the Prospectus or pursuant to and in compliance with an exemption from such requirement), and the Investor acknowledges that the certificates evidencing the Shares and Warrant Shares will be imprinted with a legend that
prohibits their transfer except in accordance therewith. The Investor acknowledges that there may occasionally be times when the Company determines that it must suspend the use of the Prospectus forming a part of the Registration Statement, as set
forth in Section 7.2(c). 
  
 5.4 The Investor
further represents and warrants to, and covenants with, the Company that (i) the Investor has full right, power, authority and capacity to enter into this Agreement and to consummate the transactions contemplated hereby and has taken all necessary
action to authorize the execution, delivery and performance of this Agreement, and (ii) this Agreement constitutes a valid and binding obligation of the Investor enforceable against the Investor in accordance with its terms, except as enforceability
may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ and contracting parties’ rights generally and except as enforceability may be subject to general principles of equity
(regardless of whether such enforceability is considered in a proceeding in equity or at law) and except as the indemnification agreements of the Investors herein may be legally unenforceable. 
  
 5.5 Between the time the Investor learned about the Offering
and the public announcement of the Offering, the Investor has not engaged in any short sales or similar transactions with respect to the Common Stock, nor has the Investor, directly or indirectly, caused any person to engage in any short sales or
similar transactions with respect to the Common Stock. Without limiting the foregoing, the Investor will not use any of the Shares or the Warrant acquired pursuant to this Agreement, or the Warrant Shares acquired pursuant to the Warrant, to cover
any short position in the Common Stock of the Company if doing so would be in violation of applicable securities laws. 
  
 5.6 The Investor understands that nothing in the Exchange Act Documents, this Agreement or any other materials presented to the Investor
in connection with the purchase and sale of the Shares and the Warrant constitutes legal, tax or investment advice. The Investor has consulted such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate
in connection with its purchase of Shares and the Warrant. 
  
 5.7 The Company acknowledges and agrees that Investor does not make or has not made any representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth in
Sections 5 and 16(a) of this Agreement, or in the Investor Questionnaire. 
  
 6. Survival of Representations, Warranties and Agreements. Notwithstanding any investigation made by any party to this Agreement, all covenants, agreements, representations and warranties made by the Company
and the Investor herein shall survive the execution of this Agreement, the delivery to the Investor of the Shares and the Warrant being purchased and the payment therefor . 
  

 7. Registration of the Shares; Compliance with the Securities Act; Participation Rights.

  
 7.1 Registration Procedures and Other
Matters. The Company shall: 
  
 (a) subject
to receipt of necessary information from the Investors, as set forth in the Selling Stockholder Notice and Questionnaire attached as Exhibit C hereto, after prompt request from the Company to the Investors to provide such information, prepare
and file with the SEC, within 10 days after the first business day following the Closing Date, a registration statement on Form S-3 (the “Registration Statement”) to enable the resale of the Shares and the Warrant Shares by the Investors
from time to time through the automated quotation system of the Nasdaq National Market or in privately-negotiated transactions; 
  
 (b) subject to receipt of necessary information from the Investors, as set forth in the Selling Stockholder Notice and Questionnaire
attached as Exhibit C hereto, after prompt request from the Company to the Investors to provide such information, use its best efforts to cause the Registration Statement to become effective within 60 days after the Registration Statement is
filed by the Company such efforts to include, without limiting the generality of the foregoing, preparing and filing with the SEC in such 60-day period any financial statements that are required to be filed prior to the effectiveness of such
Registration Statement; 
  
 (c) use its best
efforts to prepare and file with the SEC such amendments and supplements to the Registration Statement and the prospectus used in connection therewith (the “Prospectus”) as may be necessary to keep the Registration Statement current,
effective and free from any material misstatement or omission to state a material fact for a period not exceeding, with respect to each Investor’s Shares purchased hereunder and Warrant Shares purchased under the Warrant, the earlier of (i) two
years after the Closing Date, (ii) the date on which the Investor may sell all Shares and Warrant Shares then held by the Investor without restriction by the volume limitations of Rule 144(e) of the Securities Act, or (iii) such time as all Shares
purchased by such Investor in this Offering and Warrant Shares issuable pursuant to the Warrant have been sold pursuant to a registration statement; 
  
 (d) furnish to the Investor with respect to the Shares and Warrant Shares registered under the Registration Statement such number of
copies of the Registration Statement, Prospectuses and Preliminary Prospectuses in conformity with the requirements of the Securities Act and such other documents as the Investor may reasonably request, in order to facilitate the public sale or
other disposition of all or any of the Shares or Warrant Shares by the Investor; provided, however, that the obligation of the Company to deliver copies of Prospectuses or Preliminary Prospectuses to the Investor shall be subject to the receipt by
the Company of reasonable assurances from the Investor that the Investor will comply with the applicable provisions of the Securities Act and of such other securities or blue sky laws as may be applicable in connection with any use of such
Prospectuses or Preliminary Prospectuses; 
  
 (e)
file documents required of the Company for normal blue sky clearance in states specified in writing by the Investor and use its best efforts to maintain such blue sky qualifications during the period the Company is required to maintain the
effectiveness of the Registration Statement pursuant to Section 7.1(c); provided, however, that the Company shall not be required to qualify to do business or consent to service of process in any jurisdiction in which it is not now so qualified or
has not so consented; 
  
 (f) bear all expenses
in connection with the procedures in paragraph (a) through (e) of this Section 7.1 (other than underwriting discounts or commissions, brokers’ fees and similar selling expenses, and any other fees or expenses incurred by the Investor, including
attorneys’ fees) and the registration of the Shares and Warrant Shares pursuant to the Registration Statement; and 
  

 (g) advise the Investor, promptly after it shall receive notice or obtain knowledge of
the issuance of any stop order by the SEC delaying or suspending the effectiveness of the Registration Statement or of the initiation or threat of any proceeding for that purpose; and it will promptly use its best efforts to prevent the issuance of
any stop order or to obtain its withdrawal at the earliest possible moment if such stop order should be issued. 
  
 Notwithstanding anything to the contrary herein, the Registration Statement shall cover only the Shares and the Warrant Shares. In no event at any time
before the Registration Statement becomes effective with respect to the Shares and the Warrant Shares shall the Company publicly announce or file any other registration statement, other than registrations on Form S-8, without the prior written
consent of a majority in interest of the Investors. The Investor acknowledges and agrees that the Company shall not be regarded to have breached its “best efforts” obligation under Section 7.1(b) if, owing to a review of the Registration
Statement by the SEC staff, the Registration Statement does not become effective within 60 days after the Registration Statement is filed with the SEC, provided that following receipt of notice of such review, the Company shall have used its best
efforts to cause the Registration Statement to become effective at the earliest practicable date. 
  
 The Company understands that the Investor disclaims being an underwriter, but if the SEC deems the Investor to be an underwriter, the Company shall not be
relieved of any obligations it has hereunder; provided, however that if the Company receives notification from the SEC that the Investor is deemed an underwriter, then the period by which the Company is obligated to submit an
acceleration request to the SEC shall be extended to the earlier of (i) the 90th day after such SEC notification, or (ii) 120 days after the initial filing of the Registration Statement with the SEC. 
  
 Within five business days of the effectiveness date of the Registration
Statement, the Company shall cause its counsel to issue a blanket opinion to the transfer agent stating that the shares are subject to an effective registration statement and can be reissued free of restrictive legend upon notice of a sale by an
Investor and confirmation by such Investor that it has complied with the prospectus delivery requirements, provided that the Company has not advised the transfer agent orally or in writing that the opinion has been withdrawn. 
  
 7.2 Transfer of Shares and Warrant Shares After
Registration; Suspension. 
  
 (a) The
Investor agrees that it will not effect any disposition of the Shares or the Warrant Shares or its right to purchase the Shares or the Warrant Shares that would constitute a sale within the meaning of the Securities Act except as contemplated in the
Registration Statement referred to in Section 7.1 and as described below or as otherwise permitted by law, and that it will promptly notify the Company of any changes in the information set forth in the Registration Statement regarding the Investor
or its plan of distribution. 
  
 (b)
Except in the event that paragraph (c) below applies, the Company shall (i) if deemed necessary by the Company, prepare and file from time to time with the SEC a post-effective amendment to the Registration Statement or a supplement to the related
Prospectus or a supplement or amendment to any document incorporated therein by reference or file any other required document so that such Registration Statement 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, and so that, as thereafter delivered to purchasers of the Shares and Warrant Shares being sold thereunder, such Prospectus 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, in light of the circumstances under which they were made, not misleading; (ii) provide the Investor copies of
any documents filed pursuant to Section 7.2(b)(i) as the Investor may reasonably request; and (iii) inform each Investor that the Company has complied with its obligations in Section 7.2(b)(i) (or that, if the Company has filed a post-effective
amendment to the Registration Statement which has not yet been declared effective, the Company will notify the Investor to that effect, will use its best efforts to secure the effectiveness of such post-effective 

  

 
amendment as promptly as possible and will promptly notify the Investor pursuant to Section 7.2(b)(i) hereof when the amendment has become effective).

  
 (c) Subject to paragraph (d) below, in the
event (i) of any request by the SEC or any other federal or state governmental authority during the period of effectiveness of the Registration Statement for amendments or supplements to a Registration Statement or related Prospectus or for
additional information; (ii) of the issuance by the SEC or any other federal or state governmental authority of any stop order suspending the effectiveness of a Registration Statement or the initiation of any proceedings for that purpose; (iii) of
the receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification of any of the Shares or the Warrant Shares for sale in any jurisdiction or the initiation or threatening of any
proceeding for such purpose; or (iv) of any event or circumstance which, upon the advice of its counsel, necessitates the making of any changes in the Registration Statement or Prospectus, or any document incorporated or deemed to be incorporated
therein by reference, so that, in the case of the Registration Statement, it will not contain any untrue statement of a material fact or any omission to state a material fact required to be stated therein or necessary to make the statements therein
not misleading, and that in the case of the Prospectus, it will not contain any untrue statement of a material fact or any omission to state a material fact required to be stated therein or necessary to make the statements therein, in the light of
the circumstances under which they were made, not misleading; then the Company shall deliver a certificate in writing to the Investor (the “Suspension Notice”) to the effect of the foregoing and, upon receipt of such Suspension Notice, the
Investor will refrain from selling any Shares and Warrant Shares pursuant to the Registration Statement (a “Suspension”) until the Investor’s receipt of copies of a supplemented or amended Prospectus prepared and filed by the Company,
or until it is advised in writing by the Company that the current Prospectus may be used, and has received copies of any additional or supplemental filings that are incorporated or deemed incorporated by reference in any such Prospectus. In the
event of any Suspension, the Company will use its best efforts to cause the use of the Prospectus so suspended to be resumed as soon as reasonably practicable within 20 business days after the delivery of a Suspension Notice to the Investor. In
addition to and without limiting any other remedies (including, without limitation, at law or at equity) available to the Investor, the Investor shall be entitled to specific performance in the event that the Company fails to comply with the
provisions of this Section 7.2(c). 
  
 (d)
Notwithstanding the foregoing paragraphs of this Section 7.2, the Company shall be limited to effecting Suspensions on more than two occasions of not more than 30 days each in any twelve month period, unless, in the good faith judgment of the
Company’s Board of Directors, upon the written opinion of counsel of the Company, the sale of Shares and Warrant Shares under the Registration Statement in reliance on this paragraph 7.2(d) would be reasonably likely to cause a violation of the
Securities Act or the Exchange Act and result in liability to the Company. 
  
 (e) Provided that a Suspension is not then in effect, the Investor may sell Shares and Warrant Shares under the Registration Statement, provided that it arranges for delivery of a current Prospectus to the transferee
of such Shares or Warrant Shares. Upon receipt of a reasonable request therefor, the Company has agreed to provide an adequate number of current Prospectuses to the Investor and to supply copies to any other parties requiring such Prospectuses.

  
 (f) In the event of a sale of Shares or
Warrant Shares by the Investor pursuant to the Registration Statement, the Investor must also deliver to the Company’s transfer agent, with a copy to the Company, a Certificate of Subsequent Sale substantially in the form attached hereto as
Exhibit A, so that the Shares and Warrant Shares may be properly transferred. 
  
 7.3 Indemnification. For the purpose of this Section 7.3: 
  
 (i) the term “Selling Stockholder” means the Investor and any affiliate of such Investor;

  

 (ii) the term “Registration Statement” shall include the Prospectus in the form
first filed with the SEC pursuant to Rule 424(b) of the Securities Act or filed as part of the Registration Statement at the time of effectiveness if no Rule 424(b) filing is required, and any exhibit, supplement or amendment included in or relating
to the Registration Statement referred to in Section 7.1; and 
  
 (iii) the term “untrue statement” shall include any untrue statement or alleged untrue statement, or any omission or alleged omission to state in the Registration Statement a material fact required to be
stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. 
  
 (a) The Company agrees to indemnify and hold harmless each Selling Stockholder from and against any losses, claims, damages or liabilities
to which such Selling Stockholder may become subject (under the Securities Act or otherwise) insofar as such losses, claims, damages or liabilities (or actions or proceedings in respect thereof) arise out of, or are based upon (i) any breach of the
representations or warranties of the Company contained herein or failure to comply with the covenants and agreements of the Company contained herein, (ii) any untrue statement of a material fact contained in the Registration Statement as amended at
the time of effectiveness or any omission of a material fact required to be stated therein or necessary to make the statements therein not misleading, or (iii) any failure by the Company to fulfill any undertaking included in the Registration
Statement as amended at the time of effectiveness, and the Company will reimburse such Selling Stockholder for any reasonable legal or other expenses reasonably incurred in investigating, defending or preparing to defend any such action, proceeding
or claim, or preparing to defend any such action, proceeding or claim, provided, however, that the Company shall not be liable to a Selling Stockholder in any such case to the extent that such loss, claim, damage or liability arises
out of, or is based upon, an untrue statement made in such Registration Statement or any omission of a material fact required to be stated therein or necessary to make the statements therein not misleading in reliance upon and in conformity with
written information furnished to the Company by or on behalf of such Selling Stockholder specifically for use in preparation of the Registration Statement, as amended or supplemented from time to time (including, without limitation, information set
forth in the Investor Questionnaire) or the failure of such Selling Stockholder to comply with its covenants and agreements contained in Section 7.2 hereof respecting sale of the Shares or Warrant Shares or any statement or omission in any
Prospectus that is corrected in any subsequent Prospectus that was delivered to the Selling Stockholder prior to the pertinent sale or sales by the Selling Stockholder. The Company shall reimburse each Selling Stockholder for the indemnifiable
amounts provided for herein on demand as such expenses are incurred. 
  
 (b) The Investor agrees to indemnify and hold harmless the Company (and each person, if any, who controls the Company within the meaning of Section 15 of the Securities Act, each officer of the Company who signs the
Registration Statement and each director of the Company) from and against any losses, claims, damages or liabilities to which the Company (or any such officer, director or controlling person) may become subject (under the Securities Act or
otherwise), insofar as such losses, claims, damages or liabilities (or actions or proceedings in respect thereof) arise out of, or are based upon, (i) any by Investor failure to comply with the covenants and agreements contained in Section 7.2
hereof respecting sale of the Shares and Warrant Shares, or (ii) any untrue statement of a material fact contained in the Registration Statement or any omission of a material fact required to be stated therein or necessary to make the statements
therein not misleading if such untrue statement or omission was made in reliance upon and in conformity with written information furnished by or on behalf of the Investor specifically for use in preparation of the Registration Statement as amended
or supplemented from time to time (including, without limitation, information set forth in the Investor Questionnaire), and the Investor will reimburse the Company (or such officer, director or controlling person), as the case may be, for any legal
or other expenses reasonably incurred in investigating, defending or preparing to defend any such action, proceeding or claim. The Investor shall reimburse the Company or such officer, director or controlling person, as the case may be, for the
indemnifiable amounts provided for herein on demand as such expenses are incurred. Notwithstanding the foregoing, the Investor’s aggregate obligation to indemnify the Company and such 

  

 
officers, directors and controlling persons shall be limited to the net amount received by the Investor from the sale of the Shares and Warrant Shares.

  
 (c) Promptly after receipt by any indemnified
person of a notice of a claim or the beginning of any action in respect of which indemnity is to be sought against an indemnifying person pursuant to this Section 7.3, such indemnified person shall notify the indemnifying person in writing of such
claim or of the commencement of such action, but the omission to so notify the indemnifying person will not relieve it from any liability which it may have to any indemnified person under this Section 7.3 (except to the extent that such omission
materially and adversely affects the indemnifying person’s ability to defend such action) or from any liability otherwise than under this Section 7.3. Subject to the provisions hereinafter stated, in case any such action shall be brought
against an indemnified person, the indemnifying person shall be entitled to participate therein, and, to the extent that it shall elect by written notice delivered to the indemnified person promptly after receiving the aforesaid notice from such
indemnified person, shall be entitled to assume the defense thereof, with counsel reasonably satisfactory to such indemnified person. After notice from the indemnifying person to such indemnified person of its election to assume the defense thereof,
such indemnifying person shall not be liable to such indemnified person for any legal expenses subsequently incurred by such indemnified person in connection with the defense thereof, provided, however, that if there exists or shall
exist a conflict of interest that would make it inappropriate, in the opinion of counsel to the indemnified person, for the same counsel to represent both the indemnified person and such indemnifying person or any affiliate or associate thereof, the
indemnified person shall be entitled to retain its own counsel at the expense of such indemnifying person; provided, however, that no indemnifying person shall be responsible for the fees and expenses of more than one separate counsel (together with
appropriate local counsel) for all indemnified parties. In no event shall any indemnifying person be liable in respect of any amounts paid in settlement of any action unless the indemnifying person shall have approved the terms of such settlement;
provided that such consent shall not be unreasonably withheld or delayed. No indemnifying person shall, without the prior written consent of the indemnified person, effect any settlement of any pending or threatened proceeding in respect of
which any indemnified person is or could have been a party and indemnification could have been sought hereunder by such indemnified person, unless such settlement includes an unconditional release of such indemnified person from all liability on
claims that are the subject matter of such proceeding. 
  
 (d) If the indemnification provided for in this Section 7.3 is unavailable to or insufficient to hold harmless an indemnified person under subsection (a) or (b) above in respect of any losses, claims, damages or liabilities (or actions or
proceedings in respect thereof) referred to therein, then each indemnifying person shall contribute to the amount paid or payable by such indemnified person as a result of such losses, claims, damages or liabilities (or actions in respect thereof)
in such proportion as is appropriate to reflect the relative fault of the Company on the one hand and the Investor, as well as any other Selling Shareholders under such Registration Statement on the other in connection with the statements or
omissions or other matters which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative fault shall be determined by reference to, among other
things, in the case of an Untrue Statement, whether the Untrue Statement relates to information supplied by the Company on the one hand or an Investor or other Selling Shareholder on the other and the parties’ relative intent, knowledge, access
to information and opportunity to correct or prevent such Untrue Statement. The Company and the Investor agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if
the Investor and other Selling Shareholders were treated as one entity for such purpose) or by any other method of allocation which does not take into account the equitable considerations referred to above in this subsection (d). The amount paid or
payable by an indemnified person as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such
indemnified person in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this subsection (d), the Investor shall not be required to contribute any amount in excess of the amount by which the net
amount received by the Investor from the sale of the Shares and Warrant Shares to which such loss relates exceeds the amount of any damages which such Investor has otherwise been required to pay by reason of such 

  

 
untrue statement. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent misrepresentation. The Investor’s obligations in this subsection to contribute shall be in proportion to its Investor sale of Shares and Warrant Shares to which such loss
relates and shall not be joint with any other Selling Shareholders. 
  
 (e) The parties to this Agreement hereby acknowledge that they are sophisticated business persons who were represented by counsel during the negotiations regarding the provisions hereof including, without limitation,
the provisions of this Section 7.3, and are fully informed regarding said provisions. They further acknowledge that the provisions of this Section 7.3 fairly allocate the risks in light of the ability of the parties to investigate the Company and
its business in order to assure that adequate disclosure is made in the Registration Statement as required by the Securities Act and the Exchange Act. The parties are advised that federal or state public policy as interpreted by the courts in
certain jurisdictions may be contrary to certain of the provisions of this Section 7.3, and the parties hereto hereby expressly waive and relinquish any right or ability to assert such public policy as a defense to a claim under this Section 7.3 and
further agree not to attempt to assert any such defense. 
  
 7.4 Termination of Conditions and Obligations. The conditions precedent imposed by Section 5 or this Section 7 upon the transferability of the Shares and Warrant Shares shall cease and terminate as to any
particular number of the Shares or Warrant Shares when such shares shall have been effectively registered under the Securities Act and sold or otherwise disposed of in accordance with the intended method of disposition set forth in the Registration
Statement covering such shares or at such time as an opinion of counsel reasonably satisfactory to the Company shall have been rendered to the effect that such conditions are not necessary in order to comply with the Securities Act. 
  
 7.5 Information Available. So long as the
Registration Statement is effective covering the resale of Shares and Warrant Shares owned by the Investor, the Company will furnish to the Investor: 
  
 (a) as soon as practicable after it is available, one copy of (i) its Annual Report to Stockholders (which Annual Report shall contain
financial statements audited in accordance with generally accepted accounting principles by a national firm of certified public accountants), (ii) its Annual Report on Form 10-K and (iii) its Quarterly Reports on Form 10-Q (the foregoing, in each
case, excluding exhibits); 
  
 (b) upon the
request of the Investor, all exhibits excluded by the parenthetical to subparagraph (a) of this Section 7.5 as filed with the SEC and all other information that is made available to shareholders; and 
  
 (c) upon the reasonable request of the Investor, an adequate
number of copies of the Prospectuses to supply to any other party requiring such Prospectuses; and upon the reasonable request of the Investor, the President or the Principal Financial Officer of the Company (or an appropriate designee thereof) will
meet with the Investor or a representative thereof at the Company’s headquarters to discuss all information relevant for disclosure in the Registration Statement covering the Shares and Warrant Shares and will otherwise cooperate with any
Investor conducting an investigation for the purpose of reducing or eliminating such Investor’s exposure to liability under the Securities Act, including the reasonable production of information at the Company’s headquarters; provided,
that the Company shall not be required to disclose any confidential information to or meet at its headquarters with any Investor until and unless the Investor shall have entered into a confidentiality agreement in form and substance reasonably
satisfactory to the Company with the Company with respect thereto. 
  

 7.6 Legend; Restrictions on Transfer. The certificate or certificates for the
Shares and Warrant Shares (and any securities issued in respect of or exchange for the Shares or Warrant Shares) shall be subject to a legend or legends restricting transfer under the Securities Act and referring to restrictions on transfer herein,
such legend to be substantially as follows: 
  
 THE SECURITIES
REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “ACT”) AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT OR, IN THE OPINION OF COUNSEL, IN
FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER OR HYPOTHECATION IS IN COMPLIANCE THEREWITH; PROVIDED THAT SUCH OPINION OF COUNSEL SHALL NOT BE REQUIRED IN CONNECTION WITH A PLEDGE OF THESE SECURITIES
PURSUANT TO A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY SUCH SECURITIES, IN EACH CASE, IN COMPLIANCE WITH THE ACT. 
  
 7.7 Default Fees. The Company hereby agrees to pay a fee (“Default Fee”) to the Investor under the following
circumstances: (a) if the Registration Statement is not filed by the Company on or prior to 10 days following the first business day after the Closing Date in accordance with Section 7.1(a) (such an event, a “Filing Default”); (b) if the
Registration Statement is not declared effective by the SEC on or prior to 60 days after the Closing Date in the event the SEC does not undertake a review of the Registration Statement, or 90 days after the Closing Date in the event of an SEC review
(either such event, an “Effectiveness Default”); or (c) if the Registration Statement (after its effectiveness date) ceases to be effective and available to the Investor for any continuous period that exceeds 30 days or for one or more
period that exceeds in the aggregate 60 days in any 12-month period (such an event, a “Suspension Default” and together with a Filing Default and an Effectiveness Default, a “Registration Default”). In the event of a Registration
Default, the Company shall pay the Default Fee to the Investor, for each 30-day period of a Registration Default, an amount in cash equal to 1% of the aggregate purchase price paid by the Investor pursuant to this Agreement; provided that in no
event shall the aggregate amount of cash to be paid as Default Fees pursuant to this Section 7.7 exceed 9% of the aggregate purchase price paid by the Investor. The Company shall pay the Default Fee as follows: (i) in connection with a Filing
Default, on the 31st day after the Closing Date, and each 30th day thereafter until the Registration Statement is
filed with the SEC; (ii) in connection with an Effectiveness Default, on the 61st day after the Closing Date in the event the SEC does not undertake a review of the Registration Statement, or on the 91st day after the Closing Date in the event of an
SEC review, and, in either case, each 30th day thereafter until the Registration Statement is declared effective by the SEC; or (iii) in connection with a Suspension Default, on either (x) the 31st consecutive day of any Suspension or (y) the 61st day (in the aggregate) of any Suspensions in any 12-month period, and each 30th day
thereafter until the Suspension is terminated in accordance with Section 7.2. Notwithstanding the foregoing, all periods shall be tolled in the event of any delays directly caused by the action or inaction of an Investor to return a completed
Selling Stockholder Notice and Questionnaire in substantially the form of Exhibit C attached hereto, and the Company shall have no liability to any Investor in respect of any such delay. The Default Fees payable herein shall apply on a pro
rata basis for any portion of a 30-day period of a Registration Default. Notwithstanding the foregoing, the Investor shall be entitled to specific performance and any other remedies at law or in equity in the event the Company fails to comply with
the provisions of Section 7.1 or 7.2. 
  
 7.8
Right of First Refusal. 
  
 (a) Right
of First Refusal. The Company shall not issue, sell or exchange, agree or obligate itself to issue, sell or exchange, or reserve or set aside for issuance, sale or exchange, in a transaction not involving a public offering, any (i) shares of
Common Stock, (ii) any other equity security of the Company, including without limitation, preferred shares, (iii) any debt security of the Company which by its terms is convertible into or exchangeable for any equity security of the Company, (iv)
any security of the Company that is a combination of debt and equity, or (v) any option, warrant or other right to subscribe for, purchase or otherwise acquire any such equity security or any such debt security of the Company, unless in each case
the Company shall have first offered to sell such securities (the “Offered Securities”) to the 

  

 
Investor as follows: The Investor shall have the right to purchase that portion of the Offered Securities as the number of shares of Common Stock then held
(including shares then issuable upon the exercise or conversion of outstanding securities) by the Investor bears to the total number of shares of issued and outstanding Common Stock of the Company calculated on a fully diluted basis to include (i)
the total number of shares of Common Stock subject to outstanding awards granted under stock plans of the Company and (ii) the total number of shares that could be issued upon the exercise or conversion of outstanding securities (“Pro Rata
Portion”), at a price and on such other terms as shall have been specified by the Company in writing delivered to the Investor (the “Offer”), which Offer by its terms shall remain open and irrevocable for a period of seven (7) days
from receipt of the Offer. 
  
 (b) Notice of
Acceptance. Notice of the Investor’s intention to accept, in whole or in part, any Offer made shall be evidenced by a writing signed by the Investor and delivered to the Company prior to the end of the 7-day period of such Offer, setting
forth such of the Investor’s Pro Rata Portion as the Investor elects to purchase (the “Notice of Acceptance”). 
  
 (c) Conditions to Acceptances and Purchase. 
  
 (i) Permitted Sales of Refused Securities. In the event that Notices of Acceptance are not given by
the Investors in respect of all the Offered Securities, the Company shall have ninety (90) days from the expiration of the period set forth above to close the sale of all or any part of such Offered Securities as to which a Notice of Acceptance has
not been given by the Investors (the “Refused Securities”), upon terms and conditions, including, without limitation, unit price and interest rates, which are no more favorable, in the aggregate, to such other person or persons or less
favorable to the Company than those set forth in the Offer. 
  
 (ii) Reduction in Amount of Offered Securities. In the event the Company shall propose to sell less than all the Refused Securities (any such sale to be in the manner and on the terms specified above), then the
Investor may, at its sole option and in its sole discretion, reduce the number of, or other units of the Offered Securities specified in its Notice of Acceptance to an amount which shall be not less than the amount of the Offered Securities which
the Investor elected to purchase pursuant to (b) above multiplied by a fraction, (i) the numerator of which shall be the amount of Offered Securities which the Company actually proposes to sell, and (ii) the denominator of which shall be the amount
of all Offered Securities the Company proposed to sell in its writing delivered pursuant to Section 7.8(a) above. In the event that the Investor so elects to reduce the number or amount of Offered Securities specified in its Notice of Acceptance,
the Company may not sell or otherwise dispose of more than the reduced amount of the Offered Securities until such securities have again been offered to the Investor in accordance with (a) above. 
  
 (iii) Closing. Upon the closing, which shall include
full payment to the Company, of the sale to such other person or persons of all or less than all the Refused Securities, the Investor shall purchase from the Company, and the Company shall sell to the Investor, the number of Offered Securities
specified in the Notice of Acceptance, as reduced pursuant to Section 7.8(b) above if the Investor has so elected, upon the terms and conditions specified in the Offer. The purchase by the Investor of any Offered Securities is subject in all cases
to the preparation, execution and delivery by the Company and the Investor of a purchase agreement relating to such Offered Securities reasonably satisfactory in form and substance to the Company and the Investor and their respective counsel.

  
 (d) Further Sale. In each case, any
Offered Securities not purchased by the Investor or other person or persons in accordance with Section 7.8(c)(iii) above may not be sold or otherwise disposed of until they are again offered to the Investor under the procedures specified in Section
7.8(c)(i)-(iii) above. 
  
 (e) Exceptions.
The rights of the Investor under this Section 7.8 shall not apply to: (i) Common Stock issued as a stock dividend to holders of Common Stock or upon any subdivision or 

  

 
combination of shares of Common Stock; (ii) any capital stock or derivative thereof granted to an employee, director or consultant under a Company stock or
stock option plan; (iii) any securities issued as consideration for the acquisition of another entity by the Company by merger or share exchange (whereby the Company owns no less than 51% of the voting power of the surviving entity) or purchase of
substantially all of such entity’s stock or assets; (iv) any securities issued in connection with a strategic partnership, joint venture or other similar agreement, provided that the purpose of such arrangement is not primarily the raising of
capital; (v) any securities issued to a financial institution in connection with a bank loan or lease with such financial institution; and (vi) securities issuable upon the exercise or conversion of securities outstanding on the Closing Date.

  
 (f) Termination of Right. The Right of
First Refusal set forth in this Section 7.8 shall survive for a period of one year following the Closing Date. 
  
 8. Notices. All notices, requests, consents and other communications hereunder shall be in writing, shall be mailed (A) if within the United States
by first-class registered or certified airmail, or nationally recognized overnight express courier, postage prepaid, or by facsimile, or (B) if delivered from outside the United States, by International Federal Express (or other recognized
international express courier) or facsimile, and shall be deemed given (i) if delivered by first-class registered or certified mail, three business days after so mailed, (ii) if delivered by nationally recognized overnight carrier, one business day
after so mailed, (iii) if delivered by International Federal Express (or other recognized international express courier), two business days after so mailed, (iv) if delivered by facsimile, upon electronic confirmation of receipt and shall be
delivered as addressed as follows: 
  

	 	(a)	if to the Company, to: 

  
 Insmed Incorporated 
 4851 Lake Brook Drive

 Glenn Allen, Virginia 23060 
 Attn: Kevin P. Tully, CGA 
 Phone: (804) 565-3000 
 Fax: (804) 565-3500 
  

	 	(b)	with a copy to: 

  
 Testa, Hurwitz & Thibeault, LLP 
 125 High
Street 
 Boston, Massachusetts 02110 
 Attn: Mitchell S. Bloom, Esq. 
 Phone: (617) 310-7000 
 Fax: (617) 248-7100 
  

	 	(c)	if to the Investor, at its address on the signature page hereto, or at such other address or addresses as may have been furnished to the Company in writing.

  
 9. Changes. This Agreement may be
modified, amended or waived only pursuant to a written instrument signed by the Company and (a) Investors holding a majority of the Shares issued and sold in the Offering, provided that such modification, amendment or waiver is made with
respect to all Agreements and does not adversely affect the Investor without adversely affecting all Investors in a similar manner; or (b) the Investor. 
  
 10. Headings. The headings of the various sections of this Agreement have been inserted for convenience of reference only and shall not be deemed
to be part of this Agreement. 
  

 11. 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. 
  
 12. Governing Law. This Agreement shall be governed by, and construed in accordance with, the internal laws of the
Commonwealth of Virginia, without giving effect to the principles of conflicts of law. 
  
 13. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall constitute an original, but all of which, when taken together, shall constitute but one instrument, and shall
become effective when one or more counterparts have been signed by each party hereto and delivered to the other parties. 
  
 14. Entire Agreement. This Agreement and the Warrants constitute the entire agreement between the parties hereto and supersedes any prior
understandings or agreements concerning the purchase and sale of the Shares and the Warrants and the resale registration of the Shares and Warrant Shares. 
  
 15. Rule 144. The Company covenants that it will timely file the reports required to be filed by it under the Securities Act and the Exchange Act
and the rules and regulations adopted by the SEC thereunder (or, if the Company is not required to file such reports, it will, upon the request of any Investor holding Shares purchased hereunder or Warrant Shares purchased under the Warrants made
after the first anniversary of the Closing Date, make publicly available such information as necessary to permit sales pursuant to Rule 144 under the Securities Act), and it will take such further action as any such Investor may reasonably request,
all to the extent required from time to time to enable such Investor to sell such Shares and Warrant Shares without registration under the Securities Act within the limitation of the exemptions provided by (a) Rule 144 under the Securities Act, as
such Rule may be amended from time to time, or (b) any similar rule or regulation hereafter adopted by the SEC. Upon the request of the Investor, the Company will deliver to such holder a written statement as to whether it has complied with such
information and requirements. 
  
 16. Confidential
Information. 
  
 (a) The Investor covenants
that it will maintain in confidence the existence of the transactions contemplated herein until such information (a) becomes generally publicly available other than through a violation of this provision by the Investor or its agents or (b) is
required to be disclosed in legal proceedings (such as by deposition, interrogatory, request for documents, subpoena, civil investigation demand, filing with any governmental authority or similar process), provided, however, that before making any
use or disclosure in reliance on this subparagraph (b) the Investor shall give the Company at least fifteen (15) days prior written notice (or such shorter period as required by law) specifying the circumstances giving rise thereto and will furnish
only that portion of the non-public information which is legally required and will exercise its best efforts to obtain reliable assurance that confidential treatment will be accorded any non-public information so furnished. 
  
 (b) The Company shall on the Closing Date issue a press
release, and within one business day following the Closing Date, file with the SEC a Form 8-K (which shall include as exhibits this Agreement and the form of the Warrant), in each case, disclosing the material terms of the transactions contemplated
hereby (including at least the number of Shares and Warrants sold and proceeds therefrom). The Company shall not publicly disclose the name of the Investor, or include the name of the Investor in any filing with the SEC or any regulatory agency or
the Nasdaq (other than the filing of the Agreements with the SEC pursuant to the Exchange Act), without the prior written consent of the Investor, except to the extent such disclosure is required by law or Nasdaq regulations. 
  

 17. No Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto
and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other person. 
  
 18. Acknowledgement of Counsel. Each of the Company and the Investor understands and acknowledges that, pursuant to a waiver agreement between the
Company and Wells Fargo Securities LLC, Testa, Hurwitz & Thibeault, LLP represents the Company and Wells Fargo Securities LLC, as placement agent, in connection with the Offering. Testa, Hurwitz & Thibeault, LLP does not represent the
Investors and each Investor should consult its own legal and tax advisors in connection therewith. 
  

 Insmed Incorporated 
  
 INVESTOR QUESTIONNAIRE 
  
 (ALL INFORMATION WILL BE TREATED CONFIDENTIALLY) 
  

	 	To:	Insmed Incorporated 

 4851 Lake Brook Drive 
 Glenn Allen, Virginia 23060 
  
 This Investor Questionnaire (“Questionnaire”) must be completed by each potential investor in connection with the offer and sale of the shares
of the common stock, par value $0.01 per share (the “Common Stock”), of Insmed Incorporated, together with warrants to purchase shares of Common Stock (collectively, the “Securities”). The Securities are being offered and sold by
Insmed Incorporated (the “Corporation”) without registration under the Securities Act of 1933, as amended (the “Act”), and the securities laws of certain states, in reliance on the exemptions contained in Section 4(2) of the Act
and on Regulation D promulgated thereunder and in reliance on similar exemptions under applicable state laws. The Corporation must determine that a potential investor meets certain suitability requirements before offering or selling Securities to
such investor. The purpose of this Questionnaire is to assure the Corporation that each investor will meet the applicable suitability requirements. The information supplied by you will be used in determining whether you meet such criteria, and
reliance upon the private offering exemption from registration is based in part on the information herein supplied. 
  
 This Questionnaire does not constitute an offer to sell or a solicitation of an offer to buy any security. Your answers will be kept strictly
confidential. However, by signing this Questionnaire you will be authorizing the Corporation to provide a completed copy of this Questionnaire to such parties as the Corporation deems appropriate in order to ensure that the offer and sale of the
Securities will not result in a violation of the Act or the securities laws of any state and that you otherwise satisfy the suitability standards applicable to purchasers of the Securities. All potential investors must answer all applicable
questions and complete, date and sign this Questionnaire. Please print or type your responses and attach additional sheets of paper if necessary to complete your answers to any item. 
  

	A.	BACKGROUND INFORMATION 

  
 Name:
                                        
                                        
                                        
                                        
                             
  
 Business Address:
                                        
                                        
                                        
                                        
             
 (Number and Street) 
  

					
	 
	(City)	  	(State)	  	(Zip Code)

  
 Telephone Number:
(            )
                                        
                                        
                                        
                                        

  
 Residence Address:
                                        
                                        
                                        
                                        
                 
 (Number and Street) 
  

					
	 
	(City)	  	(State)	  	(Zip Code)

  
 Telephone Number:
(            )
                                        
                                        
                                        
                                        

  
 If an individual: 
 Age:                     
                     Citizenship:
                                         
Where registered to vote:
                                        
     
  

 If a corporation, partnership, limited liability company, trust or other entity: 
  

			
	 Type of
entity:                                       
                                        
                                        
                                        
                         

	 State of
formation:                                      
                              
	  	Date of
formation:                                      
                                  
	
	Social Security or Taxpayer Identification
No.                                       
                                        
                                        
                     

  
 Send all correspondence to (check
one):              Residence Address              Business Address 
  
 Current ownership of securities of the Corporation: 
  
                      shares of common stock, par value $0.01 per share (the “Common Stock”) 
 options to purchase                      shares
of Common Stock 
  

	B.	STATUS AS ACCREDITED INVESTOR 

  
 The undersigned is an “accredited investor” as such term is defined in Regulation D under the Act, as at the time of the sale of the
Securities the undersigned falls within one or more of the following categories (Please initial one or more, as applicable):1 
  
  ̈ (1) a bank as defined in Section 3(a)(2) of the Act, or a savings and loan association or other institution as defined in Section 3(a)(5)(A) of the Act whether acting in
its individual or fiduciary capacity; a broker or dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934; an insurance company as defined in Section 2(13) of the Act; an investment company registered under the Investment
Corporation Act of 1940 or a business development company as defined in Section 2(a)(48) of that Act; a Small Business Investment Corporation licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business
Investment Act of 1958; a plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions for the benefit of its employees, if such plan has total assets in excess of
$5,000,000; an employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974 if the investment decision is made by a plan fiduciary, as defined in Section 3(21) of such Act, which is either a bank, savings and loan
association, insurance company, or registered investment adviser, or if the employee benefit plan has total assets in excess of $5,000,000 or, if a self-directed plan, with the investment decisions made solely by persons that are accredited
investors; 
  
  ̈ (2) a private business development company as defined in Section 202(a)(22) of the Investment Adviser Act of 1940; 
  
  ̈ (3) an
organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, corporation, Massachusetts or similar business trust, or partnership, not formed for the specific purpose of acquiring the Securities offered, with total
assets in excess of $5,000,000; 
  
  ̈ (4) a natural person whose individual net worth1, or joint net worth1 with that person’s spouse, at the time of such person’s purchase of the Securities exceeds $1,000,000; 
  

	1	As used in this Questionnaire, the term “net worth” means the excess of total assets over total liabilities. In computing net worth for the purpose of
subsection (4), the principal residence of the investor must be valued at cost, including cost of improvements, or at recently appraised value by an institutional lender making a secured loan, net of encumbrances. In determining income, the investor
should add to the investor’s adjusted gross income any amounts attributable to tax exempt income received, losses claimed as a limited partner in any limited partnership, deductions claimed for depiction, contributions to an IRA or KEOGH
retirement plan, alimony payments, and any amount by which income from long-term capital gains has been reduced in arriving at adjusted gross income. 

  

  ̈ (5) a natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person’s spouse in excess of $300,000 in each of those years and has a reasonable expectation of
reaching the same income level in the current year; 
  
  ̈ (6) a trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the Securities offered,
whose purchase is directed by a sophisticated person as described in Rule 506(b)(2)(ii) of Regulation D; and 
  
  ̈ (7) an entity in which all of the equity owners
are accredited investors (as defined above). 
  

	C.	REPRESENTATIONS 

  
 The undersigned hereby represents and warrants to the Corporation as follows: 
  

	1.	Any purchase of the Securities would be solely for the account of the undersigned and not for the account of any other person or with a view to any resale, fractionalization,
division, or distribution thereof. 

  

	2.	The information contained herein is complete and accurate and may be relied upon by the Corporation, and the undersigned will notify the Corporation immediately of any material
change in any of such information occurring prior to the closing, if any, with respect to the purchase of Securities by the undersigned or any co-purchaser. 

  

	3.	There are no suits, pending litigation, or claims against the undersigned that could materially affect the net worth of the undersigned as reported in this Questionnaire.

  

	4.	The undersigned acknowledges that there may occasionally be times when the Corporation determines that it must suspend the use of the Prospectus forming a part of the Registration
Statement (as such terms are defined in the Stock and Warrant Purchase Agreement to which this Questionnaire is attached), as set forth in Section 7.2(c) of the Stock and Warrant Purchase Agreement. The undersigned is aware that, in such event, the
Securities will not be subject to ready liquidation, and that any Securities purchased by the undersigned would have to be held during such suspension. The overall commitment of the undersigned to investments which are not readily marketable is not
excessive in view of the undersigned’s net worth and financial circumstances, and any purchase of the Securities will not cause such commitment to become excessive. The undersigned is able to bear the economic risk of an investment in the
Securities. 

  

	5.	The undersigned has carefully considered the potential risks relating to the Corporation and a purchase of the Securities, and fully understands that the Securities are speculative
investments which involve a high degree of risk of loss of the undersigned’s entire investment. Among others, the undersigned has carefully considered each of the risks identified in the Exchange Act Documents. 

  

 IN WITNESS WHEREOF, the undersigned has executed this Questionnaire this
     day of             , 2004, and declares under oath that it is truthful and correct. 
  

			
	 
	Print Name
		
	 By:
	 	 
	 	 	 Signature

		
	 Title:
	 	 
	 	 	(required for any purchaser that is a corporation, partnership, trust or other entity)

  

  
 [Company Letterhead]

  
                     , 200   
  

	 	Re:	Insmed Incorporated; Registration Statement on Form S-3 

  
 Dear Selling Shareholder: 
  
 Enclosed please find five (5) copies of a prospectus dated
                            ,      (the “Prospectus”) for
your use in reselling your shares of common stock, $0.01 par value (the “Shares”), of Insmed Incorporated (the “Company”), under the Company’s Registration Statement on Form S-3 (Registration No.
333-          ) (the “Registration Statement”), which has been declared effective by the Securities and Exchange Commission. As a selling shareholder under the Registration
Statement, you have an obligation to deliver a copy of the Prospectus to each purchaser of your Shares, either directly or through the broker-dealer who executes the sale of your Shares. 
  
 The Company is obligated to notify you in the event that it suspends trading
under the Registration Statement in accordance with the terms of the Stock and Warrant Purchase Agreement between the Company and you. During the period that the Registration Statement remains effective and trading thereunder has not been suspended,
you will be permitted to sell your Shares which are included in the Prospectus under the Registration Statement. Upon a sale of any Shares under the Registration Statement, you or your broker will be required to deliver to the Transfer Agent,
Wachovia Bank, N.A. (“WB”) (1) your restricted stock certificate(s) representing the Shares, and (2) instructions for transfer of the Shares sold, and deliver to WB and the Company a representation letter from your broker, or from you if
you are selling in a privately negotiated transaction, or from such other appropriate party, in the form of Exhibit A attached hereto (the “Representation Letter”). The Representation Letter confirms that the Shares have been
sold pursuant to the Registration Statement and in a manner described under the caption “Plan of Distribution” in the Prospectus and that such sale was made in accordance with all applicable securities laws, including the prospectus
delivery requirements. 
  
 Please note that you are under no
obligation to sell your Shares during the registration period. However, if you do decide to sell, you must comply with the requirements described in this letter or otherwise applicable to such sale. Your failure to do so may result in liability
under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. Please remember that all sales of your Shares must be carried out in the manner set forth under the caption “Plan of Distribution” in the
Prospectus if you sell under the Registration Statement. The Company may require an opinion of counsel reasonably satisfactory to the Company if you choose another method of sale. You should consult with your own legal advisor(s) on an ongoing
basis to ensure your compliance with the relevant securities laws and regulations. 
  
 In order to maintain the accuracy of the Prospectus, you must notify the undersigned upon the sale, gift, or other transfer of any Shares by you, including the number of Shares being transferred, and in the event
of any other change in the information regarding you which is contained in the Prospectus. For example, you must notify the undersigned if you enter into any arrangement with a broker-dealer for the sale of shares through a block trade, special
offering, exchange distribution or secondary distribution or a purchase by a broker-dealer. Depending on the circumstances, such transactions may require the filing of a 

  

 
supplement to the prospectus in order to update the information set forth under the caption “Plan of Distribution” in the Prospectus.

  
 Should you need any additional copies of the Prospectus,
or if you have any questions concerning the foregoing, please write to me at Insmed Incorporated, 4851 Lake Brook Drive, Glenn Allen, Virginia 23060. Thank you. 
  

Sincerely, 
  

  
 Exhibit A 

 
 CERTIFICATE OF SUBSEQUENT SALE 
  
 Wachovia Bank, N.A. 
 1525 West W. T. Harris Blvd. 
 3C3 Charlotte, NC 28262-1153 
  

	 	RE:	Sale of Shares of Common Stock of Insmed Incorporated (the “Company”) pursuant to the Company’s Prospectus dated
                            ,      (the “Prospectus”)

  
 Dear Sir/Madam: 
  
 The undersigned hereby certifies, in connection with the sale of shares of
Common Stock of the Company included in the table of Selling Shareholders in the Prospectus, that the undersigned has sold the shares pursuant to the Prospectus and in a manner described under the caption “Plan of Distribution” in the
Prospectus and that such sale complies with all securities laws applicable to the undersigned, including, without limitation, the Prospectus delivery requirements of the Securities Act of 1933, as amended. 
  

			
	Selling Shareholder (the beneficial owner):	  	 

			
		
	Record Holder (e.g., if held in name of nominee):	  	 

			
		
	Restricted Stock Certificate No.(s):	  	 

			
		
	Number of Shares Sold:	  	 

			
		
	Date of Sale:	  	 

  
 In the event that you
receive a stock certificate(s) representing more shares of Common Stock than have been sold by the undersigned, then you should return to the undersigned a newly issued certificate for such excess shares in the name of the Record Holder and
BEARING A RESTRICTIVE LEGEND. Further, you should place a stop transfer on your records with regard to such certificate. Notwithstanding the foregoing, in the event that the undersigned executes and delivers to you and to the Company the
certification set forth on Appendix I, upon instructions from the Company, you should return to the undersigned a newly issued certificate for such excess shares of Common Stock in the name of the Record Holder without any restrictive legend.

  

									
	 	 	 	 	 Very truly yours,

					
	Dated:	 	 	 	 	 	 By:
	 	 
					
	 	 	 	 	 	 	 Print Name:
	 	 
					
	 	 	 	 	 	 	 Title:
	 	 

  

	cc:	Insmed Incorporated 

 4851 Lake Brook Drive 
 Glenn Allen, Virginia 23060 
 Attn: Principal
Financial Officer 
  

  
 Appendix I 

 
 In connection with any excess shares to be returned to the Selling
Stockholder upon a sale of shares of Common Stock of Insmed Incorporated (the “Company “) included in the table of Selling Shareholders in the Prospectus, the undersigned hereby certifies to the Company and a Wachovia Bank, N.A., that:

  

	 	1.	In connection with the sale by the undersigned stockholder of any of the shares of Common Stock, the undersigned stockholder will deliver a copy of the Prospectus included in the
Registration Statement to the purchaser directly or through the undersigned stockholder’s broker-dealer in compliance with the requirements of the Securities Act of 1933 and the Securities Exchange Act of 1934. 

  

	 	2.	Any such sale will be made only in the manner described under “Plan of Distribution” in the Prospectus. 

  

	 	3.	The undersigned stockholder will only sell the shares of Common Stock while the Registration Statement is effective, unless another exemption from registration is available.

  

	 	4.	The Company and its attorneys may rely on this letter to the same extent as if it were addressed to them. 

  

	 	5.	The undersigned stockholder agrees to notify you immediately of any development or occurrence which to his, her or its knowledge would render any of the foregoing representations
and agreements inaccurate. 

  
 All terms not defined
herein are as defined in the Stock and Warrant Purchase Agreement, among the undersigned and the Company, dated November     , 2004. 
  

									
	 	 	 	 	 Very truly yours,

					
	Dated:	 	 	 	 	 	 By:
	 	 
					
	 	 	 	 	 	 	 Print Name:
	 	 
					
	 	 	 	 	 	 	 Title:
	 	 

  

 Exhibit B 
  

WARRANT 
  
 THE SECURITIES EVIDENCED BY THIS WARRANT CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “ACT”) AND MAY NOT BE OFFERED, SOLD OR
OTHERWISE TRANSFERRED, OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT OR, IN THE OPINION OF COUNSEL, IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER OR HYPOTHECATION IS IN COMPLIANCE
THEREWITH. 
  
 WARRANT 
 TO PURCHASE COMMON STOCK 
 OF

 INSMED INCORPORATED 
  
 (void after November 5, 2009) 
  
 No. W-         
  
 THIS CERTIFIES THAT, for value received,
                                        
             or registered assigns (the “Holder”), from and after the Commencement Date (as defined below), and subject to the terms and conditions herein set forth, is
entitled to purchase from Insmed Incorporated, a Virginia corporation (the “Company”), at any time before 5:00 p.m. New York City time on November 5, 2009 (the “Termination Date”),
                                        
         shares (the “Warrant Shares”) of the Company’s common stock, $.01 par value per share (the “Common Stock”), at a price per share equal to the Warrant Price (as defined
below) upon exercise of this Warrant pursuant to Section 5 hereof. The number of Warrant Shares is subject to adjustment under Section 2. 
  
 1. Definitions. As used in this Warrant, the following terms have the definitions ascribed to them below: 
  
 (a) “Commencement Date” means May 5, 2005.

  
 (b) “Issuance Date” means November
5, 2004. 
  
 (c) “Offering Warrants”
shall have the meaning ascribed to the term in Section 8. 
  
 (d) “Person” means any individual, corporation, partnership, limited liability company, trust, incorporated or unincorporated association, joint venture, joint stock company, governmental authority or other
entity of any kind, and shall include any successor (by merger or otherwise) of such entity. 
  
 (e) “Purchase Agreement” means that certain Stock and Warrant Purchase Agreement dated as of November 5, 2004 between the
Company and the initial Holder of this Warrant. 
  
 (f) “Warrant Price” means $2.00 per share subject to adjustment under Section 2. 
  

 2. Adjustments and Notices. The Warrant Price and/or the Warrant Shares shall be subject to adjustment from time
to time in accordance with this Section 2. The Warrant Price and/or the Warrant Shares shall be adjusted to reflect all of the following events that occur on or after the Issuance Date. 
  
 (a) Subdivision, Stock Dividends or Combinations. In case the Company shall at any time subdivide the outstanding
shares of the Common Stock or shall issue a stock dividend with respect to the Common Stock, the Warrant Price in effect immediately prior to such subdivision or the issuance of such dividend shall be proportionately decreased, and the number of
Warrant Shares for which this Warrant may be exercised immediately prior to such subdivision or the issuance of such dividend shall be proportionately increased. In case the Company shall at any time combine the outstanding shares of the Common
Stock, the Warrant Price in effect immediately prior to such combination shall be proportionately increased, and the number of Warrant Shares for which this Warrant may be exercised immediately prior to such combination shall be proportionately
decreased. In each of the foregoing cases, the adjustment shall be effective at the close of business on the date of such subdivision, dividend or combination, as the case may be. 
  
 (b) Reclassification, Exchange, Substitution, In-Kind Distribution. Upon any reclassification, exchange, substitution
or other event that results in a change of the number and/or class of the securities issuable upon exercise or conversion of this Warrant or upon the payment of a dividend in securities or property other than shares of the Common Stock, the Holder
shall be entitled to receive, upon exercise of this Warrant, the number and kind of securities and property that Holder would have received if this Warrant had been exercised immediately before the record date for such reclassification, exchange,
substitution, or other event or immediately prior to the record date for such dividend. The Company or its successor shall promptly issue to Holder a new warrant for such new securities or other property. The new warrant shall provide for
adjustments which shall be as nearly equivalent as may be practicable to the adjustments provided for in this Section 2 including, without limitation, adjustments to the Warrant Price and to the number of securities or property issuable upon
exercise or conversion of the new warrant. The provisions of this Section 2(b) shall similarly apply to successive reclassifications, exchanges, substitutions, or other events and successive dividends. 
  
 (c) Reorganization, Merger etc. In case of any merger or consolidation
of the Company into or with another corporation where the Company is not the surviving corporation, or sale, transfer or lease (but not including a transfer or lease by pledge or mortgage to a bona fide lender) of all or substantially all of the
assets of the Company, the Company, or such successor or purchasing corporation, as the case may be, shall, as a condition to closing any such reorganization, merger or sale, duly execute and deliver to the Holder hereof a new warrant so that the
Holder shall have the right to receive, at a total purchase price not to exceed that payable upon the exercise or conversion of the unexercised portion of this Warrant, and in lieu of the Warrant Shares theretofore issuable upon exercise or
conversion of this Warrant, the kind and amount of shares of stock, other securities, money and property that would have been receivable upon such reorganization, merger or sale by the Holder with respect to the Warrant Shares if this Warrant had
been exercised immediately before the consummation of such transaction. Such new warrant shall provide for adjustments that shall be as nearly equivalent as may be practicable to the adjustments provided for in this Section 2. The provisions of this
subparagraph (c) shall similarly apply to successive transactions of the type described in this subparagraph (c). 
  
 (d) Adjustment for Issuance of Shares of Common Stock Below Warrant Price. If the Company shall issue, or be deemed to issue (as provided below),
any additional shares of Common Stock other than Excluded Stock, as defined below (“Additional Shares of Common Stock”) for a consideration per share less than the Warrant Price in effect immediately prior to the issuance of such
Additional Shares of Common Stock (excluding subdivisions, stock dividends, combinations, reclassifications and reorganizations which are covered in Sections 2(a), 2(b) and 2(c) above), the Warrant Price shall be reduced concurrent with each such
issuance to a price calculated as follows: 
  

			
	 Adjusted Warrant Price =
	  	(Outstanding Stock x Warrant Price) + Additional Stock Consideration
	 	  	Outstanding Stock + No. of Additional Shares of Common Stock

  
 provided, however, that
notwithstanding any provision herein to the contrary, including this Section 2(d), under no circumstances shall the Adjusted Warrant Price be less than $1.70. 
  

 As used herein: 
  
 “Additional Stock Consideration” means the consideration received by the Company upon the issuance of the Additional Shares of Common Stock.

  
 “Convertible Securities” means any evidence of
indebtedness, shares or securities, in each case convertible into or exchange for Additional Shares of Common Stock. 
  
 “Excluded Stock” means (a) securities issued, or deemed issued (as provided below), to directors, officers, employees or consultants of the
Company or a subsidiary of the Company in connection with their service as directors of the Company or a subsidiary of the Company, their employment by the Company or a subsidiary of the Company or their retention as consultants by the Company or a
subsidiary of the Company under the Company’s 2000 Stock Purchase Plan and 2000 Stock Incentive Plan; (b) shares of Common Stock issuable upon exercise of warrants outstanding as of the date hereof; (c) shares of Common Stock issued, or deemed
issued (as provided below), pursuant to a merger, consolidation or stock or asset acquisition approved by the Company’s Board of Directors; (d) the issuance, or deemed issuance, of securities of the Company for any purpose and in any amount as
approved by the holders of Offering Warrants exercisable for a majority of the Warrant Shares issuable upon exercise of the then outstanding Offering Warrants; (e) shares issued, or deemed issued, to persons or entities with which the Company has
business relationships, provided such issuances are for other than primary equity financing purposes and provided that, at the time of such issuance, the aggregate of such issuance and similar issuances in the preceding twelve-month period does not
exceed 2% of the then outstanding Common Stock of the Company (assuming full conversion and exercise of all convertible and exercisable securities); and (f) shares issued, or deemed issued, pursuant to any equipment leasing arrangement or debt
financing from a bank or similar institution approved by the Board of Directors; provided such financing is primarily for non-equity purposes. 
  
 “No. of Additional Shares of Common Stock” means the number of units of Additional Shares of Common Stock issued in connection with the issuance
of the same. 
  
 “Options” means rights, options or
warrants to subscribe for, purchase or otherwise acquire shares of Common Stock or Convertible Securities. 
  
 “Outstanding Stock” means the total number of shares of Common Stock outstanding plus the total number of shares of Common Stock issuable upon
conversion or exercise of outstanding Convertible Securities (including this Warrant, all other warrants and any Options) immediately prior to the issuance of the Additional Shares of Common Stock; provided that the number of shares of Common
Stock outstanding at any given time shall not include shares owned or held by or for the account of the Company. 
  
 No adjustment in the Warrant Price need be made if such adjustment would result in a change in the Warrant Price of less than $0.01. Any such adjustment which is not made
shall be carried forward and shall be made at the time of and together with any subsequent adjustment which, on a cumulative basis, amounts to an adjustment of $0.01 or more in the Warrant Price. No adjustment in the Warrant Price of this Warrant
shall be made in respect of the issuance of Additional Shares of Common Stock unless the consideration per share for such Additional Shares of Common Stock issued or deemed to be issued (as provided below) by the Company is less than the Warrant
Price then in effect on the date of, and immediately prior to, such issue, for this Warrant. 
  
 For purposes of making any adjustment required under this Section 2(d), the consideration received by the Company for any issue or sale of securities shall (a) to the extent that it consists of cash be computed as the
amount of cash received by the Company without deduction of any underwriting or similar commissions, compensation or concessions paid or allowed by the Company in connection with such issue or sale, (b) to the extent that it consists of property
other than cash, be computed at the fair market value of that property as determined in good faith by the Board of Directors, and (c) if Additional Shares of Common Stock, 

  

 
Convertible Securities or right or Options are issued or sold together with other securities or other assets of the Company for a consideration which covers
both, be computed (as provided in clauses (a) and (b) above) as the portion of the consideration so received that may be reasonably determined in good faith by the Board of Directors to be allocable to such Additional Shares of Common Stock,
Convertible Securities or rights or Options. 
  
 If the holders of a
majority-in-interest of the warrants issued pursuant to the Purchase Agreement shall, in good faith, disagree with any determination made by the Board of Directors of the Company of the fair market value of any property (including without limitation
any securities other than shares of Common Stock) pursuant to the warrants issued pursuant to the Purchase Agreement (such holders hereinafter referred to as the “Requesting Holders”), and such disagreement is in respect of property valued
by the Board of Directors of the Company at more than $500,000, then the Requesting Holders may by written notice to the Company (an “Appraisal Notice”), given within 15 days after notice to the holders of the warrants issued pursuant to
the Purchase Agreement following such determination, elect to contest such determination; provided, however, that the holders of the warrants issued pursuant to the Purchase Agreement may not seek appraisal or any determination of fair market value
to the extent that the Company has received a fairness opinion or other appraisal from an independent appraiser selected by the Board of Directors of the Company in connection with the transaction giving rise to such determination. Within 15 days
after an Appraisal Notice, the Company shall engage an Appraiser (as defined below) to make an independent determination of such fair market value (the “Appraiser’s Determination”), and to deliver to the Company and the holder of this
Warrant a report describing its methodology and results in reasonable detail within 15 days of such engagement. The Company and the holder of this Warrant shall be afforded reasonable opportunities to discuss the appraisal with the Appraiser. The
Appraiser’s Determination shall be final and binding on the Company and the holder of this Warrant, absent manifest error. The costs of conducting an appraisal, including all fees and expenses of the Appraiser, shall be borne one half by the
Requesting Holders (among the Requesting Holders, pro rata according to the number of shares issuable upon exercise of outstanding warrants issued under the Purchase Agreement that are held by the Requesting Holders) and one half by the Company.
“Appraiser” means an independent appraiser chosen by the Board of Directors of the Company with the consent of the Requesting Holder with the greatest number of Shares issuable upon exercise of the warrants issued pursuant to the Purchase
Agreement, which consent shall not be unreasonably withheld or delayed. 
  
 For
purposes of the adjustment required under this Section 2(d), if at any time or from time to time after the Issuance Date, the Company issues or sells any Options or Convertible Securities, then in each case the Company shall be deemed to have issued
at the time of the issuance of such Options or Convertible Securities the maximum number of Additional Shares of Common Stock (as set forth in the instruments relating thereto, giving effect to any provision contained therein for a subsequent upward
adjustment of such number other than any provision requiring antidilution adjustments (based on price, recapitalizations, mergers, reorganizations or otherwise), which such antidilution provisions shall only result in upward adjustments upon the
triggering of such antidilution adjustment) issuable upon exercise or conversion thereof and to have received as consideration for the issuance of such shares of Common Stock an amount equal to the total amount of consideration, if any, received by
the Company for the issuance of such Options or Convertible Securities plus, in the case of such Options, the minimum amounts of consideration, if any (as set forth in the instruments relating thereto, giving effect to any provision contained
therein for a subsequent downward adjustment of such consideration), payable to the Company upon the exercise of such Options and, in the case of Convertible Securities, the minimum amounts of consideration, if any, payable to the Company upon the
subsequent conversion of any such Convertible Security (other than by cancellation of liabilities or obligations evidenced by such Convertible Securities). No further adjustment of the Warrant Price, adjusted upon the issuance of such Options or
Convertible Securities, shall be made as a result of the actual issuance of Additional Shares of Common Stock on the exercise of any such Options or the conversion of any such Convertible Securities. If any such Options or the conversion privilege
represented by any such Convertible Securities shall expire without having been exercised, the Warrant Price adjusted upon the issuance of such Options or Convertible Securities or upon the triggering of any antidilution adjustments (based on price,
recapitilization, mergers reorganizations or otherwise) thereunder shall be readjusted to the Warrant Price which would have been in effect had an adjustment been made on 

  

 
the basis that the only Additional Shares of Common Stock so issued were the Additional Shares of Common Stock, if any, actually issued or sold for the
consideration received by the Company for the granting of all such Options, whether or not exercised, plus the consideration received for issuing or selling the Convertible Securities actually converted plus the consideration, if any, actually
received by the Company (other than by cancellation of liabilities or obligations evidenced by such Convertible Securities) on the conversion of such Convertible Securities. Upon the happening of any of the following events, namely, if the purchase
price provided for in any Option, the additional consideration, if any, payable upon the conversion or exchange of any Convertible Securities, or the rate at which Convertible Securities are convertible into or exchangeable for Common Stock shall
change at any time (including, but not limited to, changes under or by reason of provisions designed to protect against dilution), the Warrant Price in effect at the time of such event shall forthwith be readjusted to the Warrant Price which would
have been in effect at such time had such Options or Convertible Securities still outstanding provided for such changed purchase price, additional consideration or conversion rate, as the case may be, at the time initially granted, issued or sold,
but only if as a result of such adjustment the Warrant Price then in effect hereunder is thereby reduced; and on the termination of any such Option or any such right to convert or exchange such Convertible Securities, the Warrant Price then in
effect hereunder shall forthwith be increased to the Warrant Price which would have been in effect at the time of such termination had such Option or Convertible Securities, to the extent outstanding immediately prior to such termination, never been
issued. 
  
 (e) Certificate of Adjustment. In each case of
an adjustment or readjustment of the Warrant Price, the Company, at its own expense, shall cause its Principal Financial Officer to compute such adjustment or readjustment in accordance with the provisions hereof and prepare a certificate showing
such adjustment or readjustment, and shall mail such certificate, by first class mail, postage prepaid, to the Holder. The certificate shall set forth such adjustment or readjustment, showing in detail the facts upon which such adjustment or
readjustment is based. No adjustment of the Warrant Price shall be required to be made unless it would result in an increase or decrease of at least one cent, but any adjustments not made because of this sentence shall be carried forward and taken
into account in any subsequent adjustment otherwise required hereunder. 
  
 (f) No Impairment. The Company shall not, by amendment of its charter, by-laws or other organizational documents, or through a reorganization, transfer of assets, consolidation, merger, dissolution, issue, or sale of securities or
any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed under this Warrant by the Company, but shall at all times in good faith assist in carrying out all of the provisions of
this Section 2 and in taking all such action as may be necessary or appropriate to protect the Holder’s rights under this Section 2 against impairment. 
  
 (g) Fractional Shares. No fractional shares shall be issuable upon exercise or conversion of the Warrant and the number of shares to be issued
shall be rounded down to the nearest whole share. If a fractional share interest arises upon any exercise or conversion of the Warrant, the Company shall eliminate such fractional share interest by paying the Holder an amount computed by multiplying
the fractional interest by the fair market value of a full share. 
  
 3. No
Shareholder Rights. This Warrant, by itself, as distinguished from any shares purchased hereunder, shall not entitle the Holder to any of the rights of a shareholder of the Company. 
  
 4. Reservation of Stock. The Company will reserve from its authorized and unissued stock a sufficient number of shares to provide for
the issuance of the Warrant Shares upon the exercise of this Warrant. Issuance of this Warrant shall constitute full authority to the Company’s officers who are charged with the duty of executing stock certificates to execute and issue the
necessary certificates for the Warrant Shares issuable upon the exercise of this Warrant. 
  

 5. Exercise of Warrant. 
  

(a) This Warrant may be exercised by the Holder hereof, in whole or in part, at any time from and after the Commencement Time and prior to the
termination of this Warrant, at the election of the Holder hereof (with the notice of exercise substantially in the form attached hereto as Attachment 1 duly completed and executed), by (a) the surrender of this Warrant at the principal
office of the Company and the payment to the Company, by certified or bank check, or by wire transfer to an account designated by the Company of an amount equal to the then applicable Warrant Price multiplied by the number of Warrant Shares then
being purchased or (b) exercise of the “Net Exercise” right provided for in Section 5(b) below. This Warrant shall be deemed to have been exercised immediately prior to the close of business on the date of its surrender for exercise as
provided above, and the person entitled to receive the Warrant Shares issuable upon such exercise shall be treated for all purposes as the holder of such shares of record as of the close of business on such date. As promptly as practicable after
such date, the Company shall issue and deliver to the person or persons entitled to receive the same a certificate or certificates for the number of full Warrant Shares issuable upon such exercise. 
  
 (b) In lieu of exercising this Warrant for cash, the Holder may elect to
receive shares equal to the value of this Warrant (or the portion thereof being exercised) by surrender of this Warrant at the principal office of the Company together with notice of such election substantially in the form attached hereto as
Attachment 1 duly completed and executed (a “Net Exercise”). The Company shall issue to a Holder who Net Exercises a number of Warrant Shares computed using the following formula: 
  

			
	 	  	Y (A - B)
	 X =
	  	 A

  

			
	Where	  	 
	 X =
	  	The number of Warrant Shares to be issued to the Holder.
		
	 Y =
	  	The number of Warrant Shares purchasable under this Warrant or, if only a portion of the Warrant is being exercised, the portion of the Warrant being cancelled (at the date of such
calculation).
		
	 A =
	  	The fair market value of one (1) Warrant Share (at the date of such calculation).
		
	 B =
	  	The Warrant Price (as adjusted to the date of such calculation).

  
 For purposes of this
Section 5, the fair market value of a Warrant Share shall mean: 
  

	 	(i)	If traded on a securities exchange, the Nasdaq National Market or Nasdaq SmallCap Market, the fair market value of the Common Stock shall be deemed to be the average of the closing
prices of the Common Stock on such exchange or market over the five trading days immediately prior to the Determination Date; 

  

	 	(ii)	If traded on the Nasdaq Stock Market (other than the Nasdaq National Market or Nasdaq SmallCap Market) or other over-the-counter system, the fair market value of the Common Stock
shall be deemed to be the average of the closing bid prices of the Common Stock over the five trading days immediately prior to the Determination Date; and 

  

	 	(iii)	If there is no public market for the Common Stock, the fair market value shall be the price per Warrant Share that the Company could obtain from a willing buyer for Warrant Shares
sold by the Company from authorized but unissued Warrant Shares, as such prices shall be determined in good faith by the Company’s Board of Directors. 

  
 In the event that this Warrant is exercised pursuant to this Section 5 in connection with the consummation of the Company’s sale of its
Common Stock or other securities pursuant to a registration statement under the Securities Act of 1933, as amended (other than a registration statement relating either to sale of securities to employees of the Company pursuant to its stock option,
stock purchase or similar plan or a 
  

 
Rule 145 transaction) (a “Public Offering”), the fair market value per Warrant Share shall be the per share offering price to the public of the
Public Offering. 
  
 (c) The Holder shall not have the right to
exercise any portion of this Warrant, pursuant to Section 5(a) or (b) or otherwise, to the extent that after giving effect to such issuance after exercise, the Holder (together with the Holder’s affiliates), as set forth on the applicable
Notice of Exercise, would beneficially own in excess of 4.99% of the number of shares of the Common Stock outstanding immediately after giving effect to such issuance. For purposes of the foregoing sentence, the number of shares of Common Stock
beneficially owned by the Holder and its affiliates shall include the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which the determination of such sentence is being made, but shall exclude the number of
shares of Common Stock which would be issuable upon (A) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by the Holder or any of its affiliates and (B) exercise or conversion of the unexercised or nonconverted
portion of any other securities of the Company (including, without limitation, any other warrants) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its
affiliates. Except as set forth in the preceding sentence, for purposes of this Section 5(c), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act. For purposes of this Section 5(c), in determining the number
of outstanding shares of Common Stock, the Holder may rely on the number of outstanding shares of Common Stock as reflected in (x) the Company’s most recent Form 10-Q or Form 10-K, as the case may be, (y) a more recent public announcement by
the Company or (z) any other notice by the Company or the Company’s transfer agent setting forth the number of shares of Common Stock outstanding. Upon the written request of the Holder, the Company shall within three trading days confirm in
writing or by electronic mail to the Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of
the Company, including this Warrant, by the Holder or its affiliates since the date as of which such number of outstanding shares of Common Stock was reported. 
  

6. Transfer of Warrant. This Warrant may be transferred or assigned by the Holder hereof as a whole or in part, provided that the transferor provides, at the
Company’s request, an opinion of counsel satisfactory to the Company that such transfer does not require registration under the Securities Act. 
  
 7. Legends. Upon issuance, the certificate or certificates evidencing any Warrant Shares shall bear legends as set forth in the Purchase Agreement. 
  
 8. Purchase Agreement. This Warrant is one of a number of warrants (the “Offering
Warrants”) issued pursuant to the Purchase Agreement, and the Warrant Shares shall be entitled to the rights conferred thereon under the Purchase Agreement, including without limitation the registration rights provided in Section 7 thereof.

  
 9. Termination. This Warrant shall terminate at 5:00 p.m. New York City
time on the Termination Date. 
  
 10. Miscellaneous. This Warrant shall be
governed by the laws of the Commonwealth of Virginia, as such laws are applied to contracts to be entered into and performed entirely in Virginia by Virginia residents. The headings in this Warrant are for purposes of convenience and reference only,
and shall not be deemed to constitute a part hereof. Neither this Warrant nor any term hereof may be changed or waived orally, but only by an instrument in writing signed by the Company and (a) holders of Offering Warrants exercisable for a majority
of the Warrant Shares issuable upon exercise of the then outstanding Offering Warrants, provided that such change or waiver does not adversely affect the Holder without adversely affecting all holders of Offering Warrants in a similar manner or (b)
the Holder. All notices and other communications from the Company to the Holder of this Warrant shall be delivered personally or by facsimile transmission or mailed by first class mail, postage prepaid, to the address or facsimile number furnished
to the Company in writing by the last Holder of this Warrant who shall have furnished an address 

  

 
or facsimile number to the Company in writing, and if mailed shall be deemed given three days after deposit in the United States mail. Upon receipt of
evidence satisfactory to the Company of the ownership of and the loss, theft, destruction or mutilation of any Warrant and, in the case of any such loss, theft or destruction, upon receipt of indemnity or security satisfactory to the Company or, in
the case of any such mutilation, upon surrender and cancellation of such Warrant, the Company will make and deliver, in lieu of such lost, stolen, destroyed or mutilated Warrant, a new Warrant of like tenor and representing the right to purchase the
same aggregate number of shares of Common Stock. 
  
 ISSUED: November 5, 2004

  

			
	INSMED INCORPORATED
		
	 By:
	 	 

			
		
	 Name:
	 	 

			
		
	 Title:
	 	 

  

 Attachment 1 
  
 NOTICE OF EXERCISE 
  

	TO:	INSMED INCORPORATED 

  

	1.	The undersigned hereby: 

  

	q	elects to purchase     shares of Common Stock of the Company pursuant to the terms of the attached Warrant, and tenders herewith payment of the purchase
price of such shares in full, or 

  

	q	elects to exercise its net issuance rights pursuant to Section 5(b) of the attached Warrant with respect to     shares of Common Stock.

  

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

  

					
	 	  	_______________________________	  	 
	 	  	(Name in which certificate(s) are to be issued)	  	 
			
	 	  	_______________________________	  	 
	 	  	(Address)	  	 

  

			
	 ___________________________________________

	(Name of Warrant Holder)
	
	 By:________________________________________

	
	 Title:_______________________________________

	
	 Date signed:_________________________________

  

 Exhibit C 
  

SELLING STOCKHOLDER NOTICE AND QUESTIONNAIRE 
  
 _______________________________________ 
 Name of Selling Stockholder (please print) 
  
 INSMED INCORPORATED 
  
 QUESTIONNAIRE FOR SELLING STOCKHOLDERS 
  
 IMPORTANT:
IMMEDIATE ATTENTION REQUIRED 
  
 This Questionnaire is being
furnished to all persons or entities (the “Investors”) electing to include shares of Common Stock (“Insmed Common Stock”) of Insmed Incorporated. (“Insmed”) held by them or issuable in connection with a warrant. This
Questionnaire relates to certain information required to be disclosed in the Registration Statement on Form S-3 (the “Form S-3”) being prepared by Insmed for filing with the United States Securities and Exchange Commission (the
“SEC”) by each of the Investors who wishes to sell Insmed Common Stock pursuant to the Form S-3. We must receive a completed Questionnaire from each stockholder in order to include such stockholder’s shares of Insmed Common
Stock for registration on the Form S-3.  
  
 The
furnishing of accurate and complete responses to the questions posed in this Questionnaire is an extremely important part of the registration process. The inclusion of inaccurate or incomplete disclosures in the Form S-3 can result in potential
liabilities, both civil and criminal, to Insmed and to the individuals who furnish the information. 
  
 PLEASE GIVE A RESPONSE TO EVERY QUESTION, indicating “None” or “Not Applicable” where appropriate. Please complete, sign,
and return one copy of this Questionnaire by facsimile and overnight courier as soon as possible. 
  
 Testa, Hurwitz & Thibeault, LLP 
 125 High
Street 
 Boston, Massachusetts 02110 
 Attn: Daniel Lavon-Krein 
 Facsimile Number: 617-790-0060 
  
 Unless stated otherwise, answers should be given as of the date you complete this Questionnaire. However, it
is your responsibility to inform us of any changes that may occur to your situation. If there is any situation about which you have any doubt, or if you are uncertain as to the meaning of any terms used in this Questionnaire, please contact Daniel
Lavon-Krein at 617-310-8674. 
  

 PART I - STOCK OWNERSHIP 
  
 Item 1. Beneficial Ownership. 
  

a. Deemed Beneficial Ownership. Please state the amount of securities of the Company you own on the date you complete this Questionnaire. (If
none, please so state in each case.) 
  

			
	 Amount Beneficially Owned1

	 	 Number of Shares of
 Common Stock Owned

	Total Shares:	 	__________________________________
		
	Of such shares:	 	 
		
	 Shares as to which you have sole
 voting power:
	 	__________________________________
		
	 Shares as to which you have shared
 voting power:
	 	__________________________________
		
	 Shares as to which you have sole
 investment power:
	 	__________________________________
		
	 Shares as to which you have shared
 investment power:
	 	__________________________________
	
	 Please state the number of shares owned by family members, trusts and
 other organizations with which you have a relationship, and any other
 shares of which you may be deemed to be the
“beneficial owner”1:

		
	Total Shares:	 	__________________________________
		
	Of such shares:	 	 
		
	 Shares as to which you have sole
 voting power:
	 	__________________________________
		
	 Shares as to which you have shared
 voting power:
	 	__________________________________
		
	 Shares as to which you have sole
 investment power:
	 	__________________________________
		
	 Shares as to which you have shared
 investment power:
	 	__________________________________
		
	 Shares which you will have a right to acquire before
 [                    ], through the exercise of
 options, warrants or otherwise:
	 	__________________________________

  
 Do you have any present plans to
exercise options or otherwise 
 acquire, dispose of or to transfer shares of Common Stock of the 
  

 Company between the date you complete this Questionnaire and the date which is 60 days after the date in which the
Registration Statement is filed. 
  
 Answer: 
  
 If so, please describe. 
  
 b. Pledged Securities. If any of such securities have been pledged or otherwise deposited as collateral or are the
subject matter of any voting trust or other similar agreement or of any contract providing for the sale or other disposition of such securities, please give the details thereof. 
  
 Answer: 
  
 c. Disclaimer of Beneficial Ownership. Do you wish to disclaim beneficial ownership1 of any of the shares reported in response to Item 1(a)? 
  
 Answer: 
  
 If the answer is “Yes”, please furnish the following information with respect to the person or persons who should be shown as the beneficial
owner(s)1 of the shares in question. 
  

					
	 Name and Address of Actual
 Beneficial Owner

	 	 Relationship of
 Such Person To You

	 	 Number of Shares
 Beneficially Owned

  
 Item 2. Major Shareholders. Please state below the names of persons or groups known by you to own beneficially1 more than 5% of the Company’s Common Stock. 
  
 Answer: 
  
 Item 3. Change of Control. Do you know of any contractual arrangements, including any pledge of securities of the Company, the operation of which may at a subsequent date result in a change of control of the Company?

  
 Answer: 
  
 Item 4. Relationship with the Company. Please
state the nature of any position, office or other material relationship you have, or have had within the past three years, with the Company or its affiliates. 
  

			
	 Name

	 	 Nature of Relationship

  

 PART II - CERTAIN TRANSACTIONS 
  
 Item 6. Transactions with the Company. If you, any of your associates2, or any member of your immediate family3 had or will have any direct or indirect material interest in any transactions4 or series of transactions to which the
Company or any of its subsidiaries was a party at any time since January 1, 2000, or in any currently proposed transactions or series of transactions in which the Company or any of its subsidiaries will be a party, in which the amount involved
exceeds $60,000, please specify (a) the names of the parties to the transaction(s) and their relationship to you, (b) the nature of the interest in the transaction, (c) the amount involved in the transaction, and (d) the amount of the interest in
the transaction. If the answer is “none”, please so state. 
  
 Answer: 
  
 Item 7. Third Party Payments. Please describe
any compensation paid to you by a third party pursuant to any arrangement between the Company and any such third party. 
  
 Answer: 
  
 PART III – PLAN OF DISTRIBUTION 
  
 The shares of common stock offered hereby may be sold from time to time by the selling stockholders for their own accounts. Insmed will receive none of
the proceeds from this offering. Insmed will bear substantially all costs and expenses incident to the offering and sale of the shares to the public, including legal fees and disbursements of counsel, “blue sky” expenses, accounting fees
and filing fees, but excluding any brokerage commissions, discounts or similar charges. 
  
 Resale of the shares by the selling stockholders are not subject to any underwriting agreement. The shares of common stock covered by this prospectus may be sold by the selling stockholders or by their permitted
pledgees, donees, transferees, beneficiaries, distributees or successors-in-interest selling shares received after the date of this prospectus from a selling stockholder as a gift, pledge, partnership distribution or other non-sale related transfer.
In addition, certain of the selling stockholders are corporations or partnerships which may, in the future, distribute their shares to their stockholders or partners, respectively. Those shares may later be sold by those stockholders or partners.
The selling stockholders will act independently of us in making decisions with respect to the timing, manner and size of each sale. The shares offered by each selling stockholder may be sold from time to time: 
  

	 	•	at market prices prevailing at the time of sale, 

  

	 	•	at prices relating to such prevailing market prices, or 

  

	 	•	at negotiated prices. 

  
 Such sales may be effected in the over-the-counter market, on the Nasdaq National Market, or on any exchange on which the shares may then be listed.
Insmed will supply the selling stockholders with reasonable quantities of this prospectus. The shares may be sold by one or more of the following: 
  

	 	•	one or more block trades in which a broker or dealer so engaged will attempt to sell all or a portion of the shares held by the selling stockholders as agent but may position and
resell a portion of the block as principal to facilitate the transaction; 

  

	 	•	purchases by a broker or dealer as principal and resale by such broker or dealer for its account pursuant to this prospectus; 

  

	 	•	ordinary brokerage transactions and transactions in which the broker solicits purchasers; 

  

	 	•	in negotiated transactions; and 

  

	 	•	through other means. 

  
 To the extent permitted by law, the selling stockholders may enter into hedging transactions when selling the shares. For example, the selling
stockholders may: 
  

	 	•	sell shares short and redeliver such shares to close out their short positions; 

  

	 	•	enter into transactions involving short sales by the brokers or dealers; 

  

	 	•	enter into option or other types of transactions that require the selling stockholders to deliver shares to a broker or dealer, who then resells or transfer the shares under this
prospectus; or 

  

	 	•	loan or pledge the shares to a broker or dealer, who may sell the loaned shares or, in the event of default, sell the pledged shares. 

  
 There is no assurance that any of the selling stockholders will sell any or
all of the shares offered by them. 
  
 The selling stockholders
may effect sales through customary brokerage channels, either through broker-dealers acting as agents or brokers, or through broker-dealers acting as principals, who may then resell the shares, or at private sales or otherwise, at market prices
prevailing at the time of sale, at prices related to such prevailing market prices or at negotiated prices. The selling stockholders may effect such transactions by selling shares to or through broker-dealers, and such broker-dealers may receive
compensation in the form of underwriting discounts, concessions, commissions or fees from the selling stockholders and/or purchasers of the shares for whom such broker-dealers may act as agent or to whom they sell as principal, or both (which
compensation to a particular broker-dealer might be in excess of customary commissions). The selling stockholders may further agree to indemnify any broker-dealer or agent against certain liabilities related to the selling of the common stock,
including liabilities arising under the Securities Act of 1933. Any broker-dealers that participate with the selling stockholders in the distribution of the shares may be deemed to be underwriters, and any commissions received by them and any profit
on the resale of the shares positioned by them might be deemed to be underwriting compensation, within the meaning of the Securities Act of 1933, in connection with such sales. To the extent required, this prospectus may be amended or supplemented
from time to time to describe a specific plan of distribution. 
  
 Any shares covered by the prospectus that qualify for resale pursuant to Rule 144 under the Securities Act of 1933, as amended, may be sold under Rule 144 rather than pursuant to this prospectus. In addition to selling the shares of common
stock, the selling stockholders may transfer the shares by gift, distribution or other transfer not involving market makers or established trading markets. 
  
 I have reviewed the Plan of Distribution set forth above and do not have a present intention of effecting a sale in a manner not described therein. 
  

							
	                      Agree
	 	                     Disagree	 	 	 	 

  
 (If left blank,
response will be deemed to be “Agree”.) 
  

 SIGNATURE 
  

I understand that Insmed anticipates filing the Form S-3 on or about November     , 2004. If at any time any of the
information set forth in my responses to this Questionnaire has changed due to passage of time, or any development occurs which requires a change in any of my answers, or has for any other reason become incorrect, I agree immediately to furnish to
the individual to whom a copy of this Questionnaire is to be sent, as indicated and at the address shown on the first page hereof, any necessary or appropriate correcting information. Otherwise, Insmed is to understand that the above information
continues to be, to the best of my knowledge, information and belief, complete and correct. 
  
 I understand that the information that I am furnishing to you herein will be used by Insmed in the preparation of its Registration Statement on Form S-3. 
  

									
	 	 	 	 	 Name of Stockholder:

				
	 Date: November     , 2004
	 	 	 	 Signature:
	 	 
					
	 	 	 	 	 	 	 Print Name: 
	 	 
					
	 	 	 	 	 	 	 Title (if applicable): 
	 	 
					
	 	 	 	 	 	 	 Address:
	 	 
				
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 Street

				
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 City                      State               
          Zip Code

				
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 Telephone Number

				
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 Facsimile Number

  

 FOOTNOTES 
  

  

	1.	Beneficial Ownership. You are the beneficial owner of a security, as defined in Rule 13d-3 under the Securities Exchange Act of 1934 (the “Exchange Act”), if you,
directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise have or share: (1) voting power, which includes the power to vote, or to direct the voting of, such security, and/or (2) investment power, which
includes the power to dispose, or to direct the disposition of, such security. You are also the beneficial owner of a security if you, directly or indirectly, create or use a trust, proxy, power of attorney, pooling arrangement or any other
contract, arrangement, or device with the purpose or effect of divesting yourself of beneficial ownership of a security or preventing the vesting of such beneficial ownership. 

  
 You are deemed to be the beneficial owner of a security if
you have the right to acquire beneficial ownership of such security at any time within sixty days including, but not limited to, any right to acquire such security (a) through the exercise of any option, warrant or right, (b) through the
conversion of a security, or (c) pursuant to the automatic termination of, or the power to revoke a trust, discretionary account, or similar arrangement. 
  
 Ordinarily, shares held in the name of your spouse or minor child should be considered as beneficially owned by you absent special
circumstances to indicate that you do not have, as a practical matter, voting power or investment power over such shares. Similarly, absent countervailing facts, securities held in the name of relatives who share your home are to be reported as
being beneficially owned by you. In addition, securities held for your benefit in the name of others, such as nominees, trustees and other fiduciaries, securities held by a partnership of which you are a partner, and securities held by a corporation
controlled by you should be regarded as beneficially owned by you. 
  
 This definition of beneficial ownership is very broad; therefore, even through you may not actually have or share voting or investment power with respect to securities owned by persons in your family or living in your
home, you should include such shares in your beneficial ownership disclosure and may then disclaim beneficial ownership of such securities. 
  

	2.	Associate. The term “associate”, as defined in Rule 14a-1 under the Exchange Act, means (a) any corporation or organization (other than the Company or any of its
majority owned subsidiaries) of which you are an officer or partner or are, directly or indirectly, the beneficial owner of 10% or more of any class of equity securities, (b) any trust or other estate in which you have a substantial beneficial
interest or as to which you serve as trustee or in a similar capacity, and (c) your spouse, or any relative of yours or relative of your spouse living in your home or who is a director or officer of the Company or of any subsidiary. The term
“relative of yours” as used in this Questionnaire refers to any relative or spouse of yours, or any relative of such spouse, who has the same home as you or who is a director or officer of any subsidiary of the Company.

  
 Please identify your associate referred to in
your answer and indicate your relationship. 
  

	3.	Immediate Family. The members of your “immediate family” are deemed to include the following: your spouse; your parents; your children; your siblings; your
mother-in-law or father-in-law; your sons and daughters-in-law; and your brothers and sisters-in-law. 

  

	4.	Transactions. The term “transaction” is to be understood in its broadest sense, and includes the direct or indirect receipt of anything of value. Please note that
indirect as well as direct material interests in transactions are to be disclosed. Transactions in which you would have a direct interest would include your purchasing or leasing anything (stock in a business acquired by the Company, office space,
plants, Company apartments, computers, raw materials, finished goods, etc.) from or selling or leasing anything to, or borrowing or lending cash or other property from or to, the Company, or any subsidiary.FORM OF INDENTURE

 Exhibit 4.1 
  

REEBOK INTERNATIONAL LTD. 
  
 Series B 2% Convertible Debentures due May 1, 2024 
  

  
  
 INDENTURE 
  
 Dated as of November             , 2004 
  

 
  
 U.S. Bank National Association 
  
 TRUSTEE 
  

  
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	ARTICLE I
	
	DEFINITIONS AND INCORPORATION BY REFERENCE
			
	 Section 1.1
	  	Definitions	  	1
	 Section 1.2
	  	Other Definitions	  	5
	 Section 1.3
	  	Incorporation by Reference of Trust Indenture Act	  	6
	 Section 1.4
	  	Rules of Construction	  	7
	 Section 1.5
	  	Acts of Holders	  	7
	
	ARTICLE II
	
	THE SECURITIES
			
	 Section 2.1
	  	Form and Dating	  	8
	 Section 2.2
	  	Execution and Authentication	  	10
	 Section 2.3
	  	Registrar, Paying Agent and Conversion Agent	  	10
	 Section 2.4
	  	Paying Agent to Hold Money in Trust	  	11
	 Section 2.5
	  	Securityholder Lists	  	11
	 Section 2.6
	  	Transfer and Exchange	  	11
	 Section 2.7
	  	Replacement Securities	  	12
	 Section 2.8
	  	Outstanding Securities; Determinations of Holders' Action	  	13
	 Section 2.9
	  	Temporary Securities	  	14
	 Section 2.10
	  	Cancellation	  	14
	 Section 2.11
	  	Persons Deemed Owners	  	15
	 Section 2.12
	  	Global Securities	  	15
	 Section 2.13
	  	CUSIP Numbers	  	17
	 Section 2.14
	  	Interest	  	17
	 Section 2.15
	  	[reserved]	  	18
	 Section 2.16
	  	Contingent Interest	  	18
	
	ARTICLE III
	
	REDEMPTION AND PURCHASES
			
	 Section 3.1
	  	Right to Redeem; Notices to Trustee	  	18
	 Section 3.2
	  	Selection of Securities to be Redeemed	  	19
	 Section 3.3
	  	Notice of Redemption	  	19
	 Section 3.4
	  	Effect of Notice of Redemption	  	20
	 Section 3.5
	  	Deposit of Redemption Price	  	20
	 Section 3.6
	  	Securities Redeemed in Part	  	21
	 Section 3.7
	  	Purchase of Securities at Option of the Holder	  	21
	 Section 3.8
	  	Purchase of Securities at Option of the Holder upon Change in Control	  	23
	 Section 3.9
	  	Effect of Purchase Notice or Change in Control Purchase Notice	  	26

  

 i 

					
	 Section 3.10
	  	Securities Purchased in Part	  	28
	 Section 3.11
	  	Covenant to Comply With Securities Laws Upon Purchase of Securities	  	28
	 Section 3.12
	  	Repayment to the Company	  	28
	
	ARTICLE IV
	
	COVENANTS
			
	 Section 4.1
	  	Payment of Securities	  	29
	 Section 4.2
	  	SEC and Other Reports	  	29
	 Section 4.3
	  	Compliance Certificate	  	29
	 Section 4.4
	  	Further Instruments and Acts	  	30
	 Section 4.5
	  	Maintenance of Office or Agency	  	30
	 Section 4.6
	  	Delivery of Certain Information	  	30
	 Section 4.7
	  	Tax Treatment of Securities	  	30
	
	ARTICLE V
	
	SUCCESSOR CORPORATION
			
	 Section 5.1
	  	When Company May Merge or Transfer Assets	  	31
	
	 ARTICLE VI
  

	 DEFAULTS AND REMEDIES
  

			
	 Section 6.1
	  	Events of Default	  	32
	 Section 6.2
	  	Acceleration	  	34
	 Section 6.3
	  	Other Remedies	  	34
	 Section 6.4
	  	Waiver of Past Defaults	  	34
	 Section 6.5
	  	Control by Majority	  	35
	 Section 6.6
	  	Limitation on Suits	  	35
	 Section 6.7
	  	Rights of Holders to Receive Payment	  	35
	 Section 6.8
	  	Collection Suit by Trustee	  	36
	 Section 6.9
	  	Trustee May File Proofs of Claim	  	36
	 Section 6.10
	  	Priorities	  	37
	 Section 6.11
	  	Undertaking for Costs	  	37
	 Section 6.12
	  	Waiver of Stay, Extension or Usury Laws	  	37
	
	ARTICLE VII

	
	TRUSTEE
			
	 Section 7.1
	  	Duties of Trustee	  	38
	 Section 7.2
	  	Rights of Trustee	  	39
	 Section 7.3
	  	Individual Rights of Trustee	  	40
	 Section 7.4
	  	Trustee's Disclaimer	  	40
	 Section 7.5
	  	Notice of Defaults	  	40
	 Section 7.6
	  	Reports by Trustee to Holders	  	41
	 Section 7.7
	  	Compensation and Indemnity	  	41
	 Section 7.8
	  	Replacement of Trustee	  	42

  

 ii 

					
	 Section 7.9
	  	Successor Trustee by Merger	  	43
	 Section 7.10
	  	Eligibility; Disqualification	  	43
	 Section 7.11
	  	Preferential Collection of Claims Against Company	  	43
	
	ARTICLE VIII
	
	DISCHARGE OF INDENTURE
			
	 Section 8.1
	  	Discharge of Liability on Securities	  	43
	 Section 8.2
	  	Repayment to the Company	  	43
	
	ARTICLE IX
	
	AMENDMENTS
			
	 Section 9.1
	  	Without Consent of Holders	  	44
	 Section 9.2
	  	With Consent of Holders	  	44
	 Section 9.3
	  	Compliance with Trust Indenture Act	  	45
	 Section 9.4
	  	Revocation and Effect of Consents, Waivers and Actions	  	45
	 Section 9.5
	  	Notation on or Exchange of Securities	  	45
	 Section 9.6
	  	Trustee to Sign Supplemental Indentures	  	45
	 Section 9.7
	  	Effect of Supplemental Indentures	  	46
	
	ARTICLE X
	
	CONVERSIONS
			
	 Section 10.1
	  	Conversion Privilege	  	46
	 Section 10.2
	  	Conversion Procedure	  	49
	 Section 10.3
	  	Fractional Shares	  	51
	 Section 10.4
	  	Taxes on Conversion	  	51
	 Section 10.5
	  	Company to Provide Stock	  	51
	 Section 10.6
	  	Adjustment of Conversion Rate	  	52
	 Section 10.7
	  	When Adjustment May Be Deferred	  	56
	 Section 10.8
	  	When No Adjustment Required	  	56
	 Section 10.9
	  	Notice of Adjustment	  	57
	 Section 10.10
	  	Voluntary Decrease	  	57
	 Section 10.11
	  	Notice of Certain Transactions	  	57
	 Section 10.12
	  	Reorganization of the Company; Special Distributions	  	57
	 Section 10.13
	  	Company Determination Final	  	58
	 Section 10.14
	  	Trustee's Adjustment Disclaimer	  	58
	 Section 10.15
	  	Simultaneous Adjustments	  	59
	 Section 10.16
	  	Successive Adjustments	  	59
	
	ARTICLE XI
	
	MISCELLANEOUS
			
	 Section 11.1
	  	Trust Indenture Act Controls	  	59
	 Section 11.2
	  	Notices	  	59
	 Section 11.3
	  	Communication by Holders with Other Holders	  	60

  

 iii 

					
	 Section 11.4
	  	Certificate and Opinion as to Conditions Precedent	  	60
	 Section 11.5
	  	Statements Required in Certificate or Opinion	  	60
	 Section 11.6
	  	Separability Clause	  	61
	 Section 11.7
	  	Rules by Trustee, Paying Agent, Conversion Agent and Registrar	  	61
	 Section 11.8
	  	Legal Holidays	  	61
	 Section 11.9
	  	Governing Law	  	61
	 Section 11.10
	  	No Recourse Against Others	  	61
	 Section 11.11
	  	Successors	  	61
	 Section 11.12
	  	Multiple Originals	  	61

  

 iv 

 CROSS-REFERENCE TABLE* 
  

			
	 Trust Indenture Act Section
	  	Indenture Section
		
	 310(a)(1)
	  	7.10
	 (a)(2)
	  	7.10
	 (a)(3)
	  	N.A.
	 (a)(4)
	  	N.A.
	 (a)(5)
	  	N.A.
	 (b)
	  	7.8, 7.10
	 (c)
	  	N.A.
	 311(a)
	  	7.11
	 (b)
	  	7.11
	 (c)
	  	N.A.
	 312(a)
	  	2.5
	 (b)
	  	11.3
	 (c)
	  	11.3
	 313(a)
	  	7.6
	 (b)(1)
	  	7.6
	 (b)(2)
	  	7.6
	 (c)
	  	7.6
	 (d)
	  	7.6
	 314(a)
	  	4.2, 4.3
	 (b)
	  	N.A.
	 (c)(1)
	  	11.4
	 (c)(2)
	  	11.4
	 (c)(3)
	  	N.A.
	 (d)
	  	N.A.
	 (e)
	  	11.5
	 (f)
	  	N.A.
	 315(a)
	  	7.1(b)
	 (b)
	  	7.5
	 (c)
	  	7.1(a)
	 (d)
	  	7.1(c)
	 (e)
	  	6.11
	 316(a)(1)(A)
	  	6.5
	 (a)(1)(B)
	  	6.4
	 (a)(2)
	  	N.A.
	 (b)
	  	6.7
	 (c)
	  	1.5(e)
	 317(a)(1)
	  	6.8
	 (a)(2)
	  	6.9
	 (b)
	  	2.4
	 318(a)
	  	N.A.

  
 N.A. means not applicable. 

*This Cross-Reference Table is not part of the Indenture. 
  

 v 

 INDENTURE dated as of November         , 2004 between REEBOK
INTERNATIONAL LTD., a Massachusetts corporation (the “Company”), and U.S. BANK NATIONAL ASSOCIATION, a national banking association (the “Trustee”). 
  
 Each party agrees as follows for the benefit of the other party and for the equal and ratable benefit of the Holders of the
Company’s Series B 2% Convertible Debentures due May 1, 2024 (“Securities”): 
  
 ARTICLE I 
  
 DEFINITIONS AND INCORPORATION BY REFERENCE 
  
 Section
1.1     Definitions. 
  
 “Affiliate” of any specified person means any other person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified person. For the purposes of this definition,
“control” when used with respect to any specified person means the power to direct or cause the direction of the management and policies of such person, directly or indirectly, whether through the ownership of voting securities, by
contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing. 
  
 “Applicable Procedures” means, with respect to any transfer or transaction involving a Global Security or beneficial interest therein, the rules
and procedures of the Depositary for such Security, in each case to the extent applicable to such transaction and as in effect from time to time. 
  
 “Board of Directors” means either the board of directors of the Company or any duly authorized committee of such board. 
  
 “Board Resolution” means a copy of one or more resolutions,
certified by an Officer of the Company to have been duly adopted or consented to by the applicable Board of Directors and to be in full force and effect, and delivered to the Trustee. 
  
 “Business Day” means, with respect to any Security, a day that in the City of New York and the City of Boston,
Massachusetts is not a day on which banking institutions are authorized by law or regulation to close. 
  
 “Capital Stock” for any corporation means any and all shares, interests, rights to purchase, warrants, options, participations or other
equivalents of or interests in (however designated) stock issued by that corporation. 
  
 “Certificated Securities” means Securities that are in the form of the Securities attached hereto as Exhibit A-2. 
  
 “Closing Price” means, as of any date of determination, the closing per share sale price of the Common Shares on such date as reported by The
New York Stock Exchange, or if the Common Shares are not then quoted on The New York Stock 
  

 1 

 Exchange, such other principal national securities exchange on which the Common Shares are listed, or if no closing sale
price is reported, the average of the bid and ask prices, or if more than one in either case, the average of the average bid and the average asked prices, in either case, at 4:00 p.m. (or such earlier time as the last sale prior to 4:00 p.m.), New
York time, as reported in composite transactions for the principal United States securities exchange on which the Common Shares are traded. 
  
 “Common Shares” means shares of the Company’s Common Stock, $0.01 par value per share, together with the associated Common Stock Purchase
Rights, as they exist on the date of this Indenture or any other shares of Capital Stock of the Company into which the Common Shares shall be reclassified or changed. 
  
 “Common Stock Purchase Rights” means the Common Stock Purchase Rights issued under the Common Stock Rights
Agreement dated as of June 14, 1990 between the Company and The First National Bank of Boston, as Rights Agent, as amended from time to time. 
  
 “Company” means the party named as the “Company” in the first paragraph of this Indenture until a successor replaces it pursuant to
the applicable provisions of this Indenture and, thereafter, shall mean such successor. The foregoing sentence shall likewise apply to any subsequent such successor or successors. 
  
 “Company Request” or “Company Order” means a written request or order signed in the name of the Company
by any two Officers. 
  
 “Conversion Value” of a
Security means, as of any date of determination, the product of the Closing Price multiplied by the Conversion Rate. 
  
 “Corporate Trust Office” means the office of the Trustee at which at any time the trust created by this Indenture shall be administered, which
office at the date hereof is located at One Federal Street, 3rd Floor, Boston, MA 02110, Attention: Corporate Trust Services (Reebok Series B 2% Convertible Debentures due May 1, 2024), or such other address as the Trustee may designate from time to
time by notice to the Holders and the Company, or the principal corporate trust office of any successor Trustee (or such other address as a successor Trustee may designate from time to time by notice to the Holders and the Company). 
  
 “Default” means any event which is, or after notice or passage of
time or both would be, an Event of Default. 
  
 “Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder, as in effect from time to time. 
  
 “Extraordinary Cash Dividend” means any dividend or other cash distribution payable in respect of the Common Shares that is not a Regular Cash
Dividend. 
  

 2 

 “Global Securities” means Securities that are in the form of the Securities attached hereto as
Exhibit A-1. 
  
 “Holder” or “Securityholder”
means a person in whose name a Security is registered on the Registrar’s books. 
  
 “Indebtedness” means, without duplication, the principal or face amount of (i) all obligations for borrowed money, (ii) all obligations evidenced by debentures, notes or other similar instruments, (iii) all
obligations in respect of letters of credit or bankers acceptances or similar instruments (or reimbursement obligations with respect thereto), (iv) all obligations to pay the deferred purchase price of property or services, except trade accounts
payable arising in the ordinary course of business, (v) all obligations as lessee which are capitalized in accordance with generally accepted accounting principles, and (vi) all Indebtedness of others guaranteed by the Company or any of its
Subsidiaries or for which the Company or any of its Subsidiaries is legally responsible or liable (whether by agreement to purchase indebtedness of, or to supply funds or to invest in, others). 
  
 “Indenture” means this Indenture, as amended or supplemented from
time to time in accordance with the terms hereof, including the provisions of the TIA that are deemed to be a part hereof. 
  
 “Interest Payment Date” means May 1 and November 1, commencing on May 1, 2005. 
  
 “Issue Date” of any Security means the date on which the Security was originally issued or deemed issued as set
forth on the face of the Security. 
  
 “Non-Recourse
Indebtedness” means Indebtedness upon the enforcement of which recourse may be had by the holder(s) thereof only to identified assets of the Company or any Subsidiary and not to the Company or any Subsidiary personally. 
  
 “Officer” means the Chairman of the Board of Directors, the Chief
Executive Officer, the President, any Executive Vice President, any Senior Vice President, any Vice President, the Chief Financial Officer, the Treasurer or the Clerk, any Assistant Treasurer or Assistant Clerk or any Director of the Company.

  
 “Officers’ Certificate” means a written
certificate containing the information specified in Sections 11.4 and 11.5, signed in the name of the Company by any two Officers, and delivered to the Trustee. An Officers’ Certificate given pursuant to Section 4.3 shall be signed by an
authorized financial or accounting Officer of the Company but need not contain the information specified in Sections 11.4 and 11.5. 
  
 “Opinion of Counsel” means a written opinion containing the information specified in Sections 11.4 and 11.5, from legal counsel who is
acceptable to the Trustee. The counsel may be an employee of, or counsel to, the Company or the Trustee. 
  

 3 

 “Person” or “person” means any individual, corporation, limited liability company,
partnership, joint venture, association, joint-stock company, trust, unincorporated organization, or government or any agency or political subdivision thereof. 
  

“Principal Amount” or “principal amount” of a Security means the Principal Amount as set forth on the face of the Security.

  
 “Redemption Date” or “redemption date”
shall mean the date specified for redemption of the Securities in accordance with the terms of the Securities and this Indenture. 
  
 “Redemption Price” or “redemption price” shall have the meaning set forth in paragraph 5 of the Securities. 
  
 “Regular Cash Dividend” means the regular, fixed cash dividend in
respect of the Common Shares as declared by the Board of Directors as part of the dividend payment practice or stated cash dividend policy of the Company then in effect, whether publicly announced or not; provided that Regular Cash Dividends shall
not include any other dividends or distributions, such as any dividends designated by the Board of Directors as extraordinary, special or otherwise nonrecurring. 
  
 “Responsible Officer” means, when used with respect to the Trustee, any officer within the corporate trust
services department of the Trustee, including any vice president, assistant vice president, assistant secretary, assistant treasurer, trust officer or any other officer of the Trustee who customarily performs functions similar to those performed by
the Persons who at the time shall be such officers, respectively, or to whom any corporate trust matter is referred because of such person’s knowledge of and familiarity with the particular subject and who shall have direct responsibility for
the administration of this Indenture. 
  
 “Rights Plan”
means the Rights Agreement between the Company and American Stock Transfer and Trust Company, as successor Rights Agent to The First National Bank of Boston or any future rights agreement the Company may adopt. 
  
 “Rule 144A” means Rule 144A under the Securities Act (or any
successor provision), as it may be amended from time to time. 
  
 “SEC” means the Securities and Exchange Commission. 
  
 “Securities” means any of the Company’s Series B 2% Convertible Debentures due May 1, 2024, as amended or supplemented from time to time, issued under this Indenture. 
  
 “Securities Act” means the Securities Act of 1933, as amended, and
the rules and regulations promulgated thereunder, as in effect from time to time. 
  

 4 

 “Securityholder” or “Holder” means a person in whose name a Security is registered on
the Registrar’s books. 
  
 “Stated Maturity”, when
used with respect to any Security, means the date specified in such Security as the fixed date on which an amount equal to the Principal Amount of such Security is due and payable. 
  
 “Subsidiary” means any person of which at least a majority of the outstanding Voting Stock shall at the time
directly or indirectly be owned or controlled by the Company or by one or more Subsidiaries or by the Company and one or more Subsidiaries. 
  
 “TIA” means the Trust Indenture Act of 1939 as in effect on the date of this Indenture, provided, however, that in the event the TIA is amended
after such date, TIA means, to the extent required by any such amendment, the TIA as so amended. 
  
 “trading day” means a day during which trading in securities generally occurs on the New York Stock Exchange or, if the Common Shares are not
listed on the New York Stock Exchange, on the principal other national or regional securities exchange on which the Common Shares are then listed or, if the Common Shares are not listed on a national or regional securities exchange, on the National
Association of Securities Dealers Automated Quotation System or, if the Common Shares are not quoted on the National Association of Securities Dealers Automated Quotation System, on the principal other market on which the Common Shares are then
traded. 
  
 “Trustee” means the party named as the
“Trustee” in the first paragraph of this Indenture until a successor replaces it pursuant to the applicable provisions of this Indenture and, thereafter, shall mean such successor. The foregoing sentence shall likewise apply to any
subsequent such successor or successors. 
  
 “Voting
Stock” of a person means Capital Stock of such person of the class or classes pursuant to which the holders thereof have the general voting power under ordinary circumstances to elect at least a majority of the board of directors, managers or
trustees of such person (irrespective of whether or not at the time Capital Stock of any other class or classes shall have or might have voting power by reason of the happening of any contingency). 
  
 Section 1.2     Other Definitions. 
  
  

			
	 Term Section:
	  	Defined in:
		
	 “Act”
	  	1.5(a)
	 “Agent Members”
	  	2.12(e)
	 “Associate”
	  	3.8(a)
	 “beneficial owner”
	  	3.8(a)
	 “cash”
	  	3.7(b)
	 “Change in Control”
	  	3.8(a)
	 “Change in Control Purchase Date”
	  	3.8(a)

  

 5 

			
	 “Change in Control Purchase Notice”
	  	3.8(c)
	 “Change in Control Purchase Price”
	  	3.8(a)
	 “Closing Price Condition”
	  	10.1(a)
	 “Company Notice”
	  	3.7(c)
	 “Company Notice Date”
	  	3.7(c)
	 “Contingent Interest”
	  	2.14(b)
	 “Contingent Payment Regulations”
	  	4.7
	 “Conversion Agent”
	  	2.3
	 “Conversion Date”
	  	10.2
	 “Conversion Price”
	  	10.1(a)
	 “Conversion Rate”
	  	10.1(c)
	 “Current Market Price”
	  	10.6(f)
	 “Daily Conversion Value”
	  	10.1(c)
	 “Daily Net Share Settlement Value”
	  	10.1(c)
	 “Depositary”
	  	2.1(a)
	 “Designated Institution”
	  	10.2
	 “DTC”
	  	2.1(a)
	 “Effective Conversion Price”
	  	10.1(a)
	 “Event of Default”
	  	6.1
	 “Expiration Date”
	  	10.6(e)
	 “Expiration Time”
	  	10.6(e)
	 “Legal Holiday”
	  	11.8
	 “Market Price”
	  	3.7(d)
	 “Measurement Day”
	  	10.1(c)
	 “Notice of Default”
	  	6.1
	 “Paying Agent”
	  	2.3
	 “Purchase Date”
	  	3.7(a)
	 “Purchase Notice”
	  	3.7(a)
	 “Purchase Price”
	  	3.7(a)
	 “Registrar”
	  	2.3
	 “Rights Plan”
	  	10.6(c)
	 “Rule 144A Information”
	  	4.6
	 “Sale Price”
	  	10.1(b)
	 “Settlement Date”
	  	10.1(c)
	 “Trading Price”
	  	2.14(c)
	 “Trigger Event”
	  	10.6(c)
	 “Triggering Distribution”
	  	10.6(d)
	 “Volume Weighted Average Price”
	  	10.1(c)

   
 Section
1.3     Incorporation by Reference of Trust Indenture Act. Whenever this Indenture refers to a provision of the TIA, the provision is incorporated by reference in and made a part of this Indenture. The following TIA terms
used in this Indenture have the following meanings: 
  
 “Commission” means the SEC. 
  

 6 

 “indenture securities” means the Securities. 
  
 “indenture security holder” means a Securityholder. 
  
 “indenture to be qualified” means this Indenture. 
  
 “indenture trustee” or “institutional trustee” means the
Trustee. 
  
 “obligor” on the indenture securities means
the Company. 
  
 All other TIA terms used in this Indenture that
are defined by the TIA, defined by a TIA reference to another statute or defined by an SEC rule have the meanings assigned to them by such definitions. 
  
 Section 1.4     Rules of Construction. Unless the context otherwise requires: 
  
 (1)    a term has the meaning assigned to it; 

 
 (2)    an accounting term not otherwise defined has
the meaning assigned to it in accordance with generally accepted accounting principles as in effect from time to time; 
  
 (3)    “or” is not exclusive; 
  
 (4)    “including” means including, without limitation; and 
  
 (5)    words in the singular include the plural, and words in the plural include the singular.

  
 Section 1.5     Acts of Holders.

  
 (a)    Any request, demand, authorization,
direction, notice, consent, waiver or other action provided by this Indenture to be given or taken by Holders may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Holders in person or by agent
duly appointed in writing; and, except as herein otherwise expressly provided, such action shall become effective when such instrument or instruments are delivered to the Trustee and, where it is hereby expressly required, to the Company. Such
instrument or instruments (and the action embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of Holders signing such instrument or instruments. Proof of execution of any such instrument or of a writing
appointing any such agent shall be sufficient for any purpose of this Indenture and conclusive in favor of the Trustee and the Company, if made in the manner provided in this Section. 
  
 (b)    The fact and date of the execution by any Person of any such instrument or writing may be proved
by the affidavit of a witness of such execution or by a certificate of a notary public or other officer authorized by law to take 
  

 7 

 acknowledgments of deeds, certifying that the individual signing such instrument or writing acknowledged to such officer
the execution thereof. Where such execution is by a signer acting in a capacity other than such signer’s individual capacity, such certificate or affidavit shall also constitute sufficient proof of such signer’s authority. The fact and
date of the execution of any such instrument or writing, or the authority of the Person executing the same, may also be proved in any other manner which the Trustee deems sufficient. 
  
 (c)     The ownership of Registered Securities shall be proved by the Register. 
  
 (d)     Any request, demand, authorization, direction,
notice, consent, waiver or other Act of the Holder of any Security shall bind every future Holder of the same Security and the holder of every Security issued upon the registration of transfer thereof or in exchange therefor or in lieu thereof in
respect of anything done, omitted or suffered to be done by the Trustee or the Company in reliance thereon, whether or not notation of such action is made upon such Security. 
  
 (e)     If the Company shall solicit from the Holders any request, demand, authorization, direction,
notice, consent, waiver or other Act, the Company may, at its option, by or pursuant to a Board Resolution, fix, in advance, a record date for the determination of Holders entitled to give such request, demand, authorization, direction, notice,
consent, waiver or other Act, but the Company shall have no obligation to do so. If such a record date is fixed, such request, demand, authorization, direction, notice, consent, waiver or other Act may be given before or after such record date, but
only the Holders of record at the close of business on such record date shall be deemed to be Holders for the purposes of determining whether Holders of the requisite proportion of outstanding Securities have authorized or agreed or consented to
such request, demand, authorization, direction, notice, consent, waiver or other Act, and for that purpose the outstanding Securities shall be computed as of such record date; provided that no such authorization, agreement or consent by the Holders
on such record date shall be deemed effective unless it shall become effective pursuant to the provisions of this Indenture not later than six months after the record date. 
  
 ARTICLE II 
  
 THE SECURITIES 
  
 Section 2.1     Form and Dating. The Securities and the Trustee’s certificate of authentication shall be substantially in
the forms set forth on Exhibits A-1 and A-2, which are a part of this Indenture. The Securities may have notations, legends or endorsements required by law, stock exchange rule or usage (provided that any such notation, legend or endorsement
required by usage is in a form acceptable to the Company). The Company shall provide any such notations, legends or endorsements to the Trustee in writing. Each Security shall be dated the date of its authentication. 
  

 8 

 (a)     Global Securities. The Securities shall be issued in the form of a
Global Security which shall be deposited with the Trustee at its Corporate Trust Office, as custodian for the Depositary and registered in the name of The Depository Trust Company (“DTC”) or the nominee thereof (such depositary, or
any successor thereto, and any such nominee being hereinafter referred to as the “Depositary”), duly executed by the Company and authenticated by the Trustee as hereinafter provided. The aggregate principal amount of the Global
Securities may from time to time be increased or decreased by adjustments made on the records of the Trustee and the Depositary as hereinafter provided. 
  
 (b)     Global Securities in General. Each Global Security shall represent such of the outstanding Securities as shall be
specified therein and each shall provide that it shall represent the aggregate amount of outstanding Securities from time to time endorsed thereon and that the aggregate amount of outstanding Securities represented thereby may from time to time be
reduced or increased, as appropriate, to reflect exchanges, redemptions and conversions. 
  
 Any adjustment of the aggregate principal amount of a Global Security to reflect the amount of any increase or decrease in the amount of outstanding Securities represented thereby shall be made by the Trustee in
accordance with instructions given by the Holder thereof as required by Section 2.12 hereof and shall be made on the records of the Trustee and the Depositary. 
  

(c)     Book-Entry Provisions. The Company shall execute and the Trustee shall, in accordance with this Section 2.1(c),
authenticate and deliver initially one or more Global Securities that (a) shall be registered in the name of the depositary, (b) shall be delivered by the Trustee to the Depositary or pursuant to the Depositary’s instructions and (c) shall bear
legends substantially to the following effect: 
  
 “UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY TO REEBOK INTERNATIONAL LTD. (THE “COMPANY”) OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. TRANSFERS OF THIS GLOBAL
SECURITY SHALL BE LIMITED TO TRANSFERS TO NOMINEES OF THE DEPOSITORY TRUST COMPANY OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF 
  

 9 

 PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS
SET FORTH IN ARTICLE TWO OF THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.” 
  
 Section 2.2     Execution and Authentication. The Securities shall be executed on behalf of the Company by any Officer. The signature of the officer of the Company on the Securities may be
manual or facsimile. 
  
 Securities bearing the manual or
facsimile signatures of individuals who were at the time of the execution of the Securities the proper Officers of the Company shall bind the Company, notwithstanding that such individuals or any of them have ceased to hold such offices prior to the
authentication and delivery of such Securities or did not hold such offices at the date of authentication of such Securities. 
  
 No Security shall be entitled to any benefit under this Indenture or be valid or obligatory for any purpose unless there appears on such Security a
certificate of authentication substantially in the form provided for herein duly executed by the Trustee by manual signature of an authorized officer, and such certificate upon any Security shall be conclusive evidence, and the only evidence, that
such Security has been duly authenticated and delivered hereunder. 
  
 The Trustee shall authenticate and deliver Securities for original issue in an aggregate Principal Amount of up to $350,000,000 upon a Company Order without any further action by the Company. The aggregate Principal Amount of Securities
outstanding at any time may not exceed the amount set forth in the foregoing sentence, except as provided in Section 2.7. 
  
 The Securities shall be issued only in registered form without coupons and only in denominations of $1,000 of Principal Amount and any integral multiple
thereof. 
  
 Section 2.3     Registrar,
Paying Agent and Conversion Agent. The Company shall maintain an office or agency where Securities may be presented for registration of transfer or for exchange (“Registrar”), an office or agency where Securities may be
presented for purchase or payment (“Paying Agent”) and an office or agency where Securities may be presented for conversion (“Conversion Agent”). The Registrar shall keep a register of the Securities and of their
transfer and exchange. The Company may have one or more co-registrars, one or more additional paying agents and one or more additional conversion agents. The term Paying Agent includes any additional paying agent, including any named pursuant to
Section 4.5. The term Conversion Agent includes any additional conversion agent, including any named pursuant to Section 4.5. 
  
 The Company shall enter into an appropriate agency agreement with any Registrar, Paying Agent, Conversion Agent or co-registrar (other than the Trustee).
The agreement shall implement the provisions of this Indenture that relate to such agent. The Company shall notify the Trustee of the name and address of any such agent. If the 
  

 10 

 Company fails to maintain a Registrar, Paying Agent or Conversion Agent, the Trustee shall act as such and shall be
entitled to appropriate compensation therefor pursuant to Section 7.7. The Company or any Subsidiary or an Affiliate of either of them may act as Paying Agent, Registrar, Conversion Agent or co-registrar. 
  
 The Company initially appoints the Trustee as Registrar, Conversion Agent and
Paying Agent in connection with the Securities. 
  
 Section
2.4     Paying Agent to Hold Money in Trust. Except as otherwise provided herein, on or prior to each due date of payments in respect of any Security, the Company shall deposit with the Paying Agent a sum of money (in
immediately available funds if deposited on the due date) sufficient to make such payments when so becoming due. The Company shall require each Paying Agent (other than the Trustee) to agree in writing that the Paying Agent shall hold in trust for
the benefit of Securityholders or the Trustee all money held by the Paying Agent for the making of payments in respect of the Securities and shall notify the Trustee of any default by the Company in making any such payment. At any time during the
continuance of any such default, the Paying Agent shall, upon the written request of the Trustee, forthwith pay to the Trustee all money so held in trust. If the Company, a Subsidiary or an Affiliate of either of them acts as Paying Agent, it shall
segregate the money held by it as Paying Agent and hold it as a separate trust fund. The Company at any time may require a Paying Agent to pay all money held by it to the Trustee and to account for any funds disbursed by it. Upon doing so, the
Paying Agent shall have no further liability for the money. 
  
 Section 2.5     Securityholder Lists. The Trustee shall preserve in as current a form as is reasonably practicable the most recent list available to it of the names and addresses of Securityholders. If the Trustee
is not the Registrar, the Company shall cause to be furnished to the Trustee at least semiannually on May 1 and November 1 a listing of Securityholders dated within 15 days of the date on which the list is furnished and at such other times as the
Trustee may request in writing a list in such form and as of such date as the Trustee may reasonably require of the names and addresses of Securityholders. 
  
 Section 2.6     Transfer and Exchange. Subject to Section 2.12 hereof, upon surrender for registration of transfer of any
Security, together with a written instrument of transfer satisfactory to the Registrar duly executed by the Securityholder or such Securityholder’s attorney duly authorized in writing, at the office or agency of the Company designated as
Registrar or co-registrar pursuant to Section 2.3, the Company shall execute and the Trustee shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Securities of any authorized denomination or
denominations, of a like aggregate Principal Amount. The Company shall not charge a service charge for any registration of transfer or exchange, but the Company may require payment of a sum sufficient to pay all taxes, assessments or other
governmental charges that may be imposed in connection with the transfer or exchange of the Securities from the Securityholder requesting such transfer or exchange. 
  

 11 

 At the option of the Holder, Securities may be exchanged for other Securities of any authorized
denomination or denominations, of a like aggregate Principal Amount, upon surrender of the Securities to be exchanged, together with a written instrument of transfer satisfactory to the Registrar duly executed by the Securityholder or such
Securityholder’s attorney duly authorized in writing, at such office or agency. Whenever any Securities are so surrendered for exchange, the Company shall execute, and the Trustee shall authenticate and deliver, the Securities that the Holder
making the exchange is entitled to receive. 
  
 The Company shall
not be required to make, and the Registrar need not register, transfers or exchanges of Securities selected for redemption (except, in the case of Securities to be redeemed in part, the portion thereof not to be redeemed) or any Securities in
respect of which a Purchase Notice or Change in Control Purchase Notice has been given and not withdrawn by the Holder thereof in accordance with the terms of this Indenture (except, in the case of Securities to be purchased in part, the portion
thereof not to be purchased) or any Securities for a period of 15 days before the mailing of a notice of redemption of Securities to be redeemed. 
  
 (a)     Notwithstanding any provision to the contrary herein, so long as a Global Security remains outstanding and is held by or on
behalf of the Depositary, transfers of a Global Security, in whole or in part, shall be made only in accordance with Section 2.12 and this Section 2.6. Transfers of a Global Security shall be limited to transfers of such Global Security in whole, or
in part, to nominees of the Depositary or to a successor of the Depositary or such successor’s nominee. 
  
 (b)     Successive registrations and registrations of transfers and exchanges as aforesaid may be made from time to time as desired,
and each such registration shall be noted on the register for the Securities. 
  
 (c)     Any Registrar appointed pursuant to Section 2.3 hereof shall provide to the Trustee such information as the Trustee may reasonably require in connection with the delivery by such Registrar
of Securities upon transfer or exchange of Securities. 
  
 (d)     No Registrar shall be required to make registrations of transfer or exchange of Securities during any periods designated in the text of the Securities or in this Indenture as periods during which such
registration of transfers and exchanges need not be made. 
  
 (e)     [reserved]. 
  
 Section
2.7     Replacement Securities. If any mutilated Security is surrendered to the Trustee, or the Company and the Trustee receive evidence to their satisfaction of the destruction, loss or theft of any Security, and there is
delivered to the Company and the Trustee such security or indemnity as may be required by them to save each of them harmless, then, in the absence of notice to the Company or the Trustee that such Security has been acquired by a protected purchaser,
the Company shall execute, 
  

 12 

 and upon the Company’s written request the Trustee shall authenticate and deliver, in exchange for any such
mutilated Security or in lieu of any such destroyed, lost or stolen Security, a new Security of like tenor and Principal Amount, bearing a number not contemporaneously outstanding. 
  
 In case any such mutilated, destroyed, lost or stolen Security has become or is about to become due and payable, or is about
to be purchased by the Company pursuant to Article 3 hereof, the Company in its discretion may, instead of issuing a new Security, pay or purchase such Security, as the case may be. 
  
 Upon the issuance of any new Securities under this Section, the Company may require the payment of a sum sufficient to cover
any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) connected therewith. 
  
 Every new Security issued pursuant to this Section in lieu of any mutilated, destroyed, lost or stolen Security shall
constitute an original additional contractual obligation of the Company, whether or not the destroyed, lost or stolen Security shall be at any time enforceable by anyone, and shall be entitled to all benefits of this Indenture equally and
proportionately with any and all other Securities duly issued hereunder. 
  
 The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities.

  
 Section 2.8     Outstanding Securities;
Determinations of Holders’ Action. Securities outstanding at any time are all the Securities authenticated by the Trustee except for those cancelled by it, those paid pursuant to Section 2.7 delivered to it for cancellation and those
described in this Section 2.8 as not outstanding. A Security does not cease to be outstanding because the Company or an Affiliate thereof holds the Security; provided, however, that in determining whether the Holders of the requisite
Principal Amount of Securities have given or concurred in any request, demand, authorization, direction, notice, consent or waiver hereunder, Securities owned by the Company or any other obligor upon the Securities or any Affiliate of the Company or
such other obligor shall be disregarded and deemed not to be outstanding, except that, in determining whether the Trustee shall be protected in relying upon any such request, demand, authorization, direction, notice, consent or waiver, only
Securities which a Responsible Officer of the Trustee actually knows to be so owned shall be so disregarded. Subject to the foregoing, only Securities outstanding at the time of such determination shall be considered in any such determination
(including, without limitation, determinations pursuant to Articles 6 and 9). 
  
 If a Security is replaced pursuant to Section 2.7, it ceases to be outstanding unless the Trustee receives proof satisfactory to it that the replaced Security is held by a protected purchaser. 
  

 13 

 If the Paying Agent holds, in accordance with this Indenture, on a Redemption Date, or on the Business
Day following a Purchase Date or a Change in Control Purchase Date, or on Stated Maturity, money sufficient to pay amounts owed with respect to Securities payable on that date, then immediately after such Redemption Date, Purchase Date, Change in
Control Purchase Date or Stated Maturity, as the case may be, such Securities shall cease to be outstanding and interest, if any, on such Securities shall cease to accrue; provided, that if such Securities are to be redeemed, notice of such
redemption has been duly given pursuant to this Indenture or provision therefor satisfactory to the Trustee has been made. 
  
 If a Security is converted in accordance with Article 10, then from and after the time of conversion on the Conversion Date, such Security shall cease to
be outstanding and interest, if any, shall cease to accrue on such Security. 
  
 Section 2.9     Temporary Securities. Pending the preparation of definitive Securities, the Company may execute and upon Company Order the Trustee shall authenticate and deliver, temporary
Securities that are printed, lithographed, typewritten, mimeographed or otherwise produced, in any authorized denomination, substantially of the tenor of the definitive Securities in lieu of which they are issued and with such appropriate
insertions, omissions, substitutions and other variations as the officers executing such Securities may determine, as conclusively evidenced by their execution of such Securities. 
  
 If temporary Securities are issued, the Company will cause definitive Securities to be prepared without unreasonable delay.
After the preparation of definitive Securities, the temporary Securities shall be exchangeable for definitive Securities upon surrender of the temporary Securities at the office or agency of the Company designated for such purpose pursuant to
Section 2.3, without charge to the Holder. Upon surrender for cancellation of any one or more temporary Securities, the Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a like Principal Amount of definitive
Securities of authorized denominations. Until so exchanged, the temporary Securities shall in all respects be entitled to the same benefits under this Indenture as definitive Securities. 
  
 Section 2.10     Cancellation. All Securities surrendered for payment, purchase by the Company
pursuant to Article 3, conversion, redemption or registration of transfer or exchange (other than Securities exchanged pursuant to Section 10.2) shall, if surrendered to any person other than the Trustee, be delivered to the Trustee and shall be
promptly cancelled by it. The Company may at any time deliver to the Trustee for cancellation any Securities previously authenticated and delivered hereunder that the Company may have acquired in any manner whatsoever, and all Securities so
delivered shall be promptly cancelled by the Trustee. The Company may not issue new Securities to replace Securities it has paid or delivered to the Trustee for cancellation or that any Holder has converted pursuant to Article 10. No Securities
shall be authenticated in lieu of or in exchange for any Securities cancelled as provided in this Section, except as expressly permitted by this Indenture. All cancelled Securities held by the Trustee shall be disposed of by the Trustee in
accordance with the Trustee’s customary procedure. 
  

 14 

 Section 2.11     Persons Deemed Owners. Prior to due presentment of a Security
for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name such Security is registered as the owner of such Security for the purpose of receiving payment of the Principal
Amount of the Security or the payment of any Redemption Price, Purchase Price or Change in Control Purchase Price in respect thereof, and accrued interest thereon, for the purpose of conversion and for all other purposes whatsoever, whether or not
such Security be overdue, and neither the Company, the Trustee nor any agent of the Company or the Trustee shall be affected by notice to the contrary. 
  
 Section 2.12     Global Securities. 
  
 (a)     A Global Security may not be transferred, in whole or in part, to any Person other than the Depositary or a nominee or any
successor thereof, and no such transfer to any such other Person may be registered; provided that the foregoing shall not prohibit any transfer of a Security that is issued in exchange for a Global Security but is not itself a Global
Security. No transfer of a Security to any Person shall be effective under this Indenture or the Securities unless and until such Security has been registered in the name of such Person. Notwithstanding any other provisions of this Indenture or the
Securities, transfers of a Global Security, in whole or in part, shall be made only in accordance with Section 2.6 and this Section 2.12. 
  
 (b)     [reserved]. 
  
 (c)     [reserved]. 
  
 (d)     As used in the preceding two paragraphs of this Section 2.12, the term “transfer” encompasses any sale, pledge,
transfer, hypothecation or other disposition of any Security. 
  
 (e)     The provisions of clauses (1), (2), (3) and (4) below shall apply only to Global Securities: 
  
 (1)     Notwithstanding any other provisions of this Indenture or the Securities, a Global Security shall not be exchanged in whole or
in part for a Security registered in the name of any Person other than the Depositary or one or more nominees thereof, provided that a Global Security may be exchanged for Securities registered in the names of any person designated by the Depositary
in the event that (i) the Depositary has notified the Company that it is unwilling or unable to continue as Depositary for such Global Security or such Depositary has ceased to be a “clearing agency” registered under the Exchange Act, and
a successor Depositary is not appointed by the Company within 90 days, or (ii) an Event of Default has occurred and is continuing with respect to the Securities. Any Global Security exchanged pursuant to clause (i) above shall be so exchanged in
whole and not in part, and any Global Security exchanged pursuant to clause (ii) above may be exchanged in whole or from time to time in part as directed by the Depositary. Any Security issued in exchange for a Global Security or any portion thereof
shall be a Global Security; provided that any such Security so issued that is 
  

 15 

 registered in the name of a Person other than the Depositary or a nominee thereof shall not be a Global Security.

  
 (2)     Securities issued in exchange for
a Global Security or any portion thereof shall be issued in definitive, fully registered form, without interest coupons, shall have an aggregate Principal Amount equal to that of such Global Security or portion thereof to be so exchanged, shall be
registered in such names and be in such authorized denominations as the Depositary shall designate and shall bear the applicable legends provided for herein. Any Global Security to be exchanged in whole shall be surrendered by the Depositary to the
Trustee, as Registrar. With regard to any Global Security to be exchanged in part, either such Global Security shall be so surrendered for exchange or, if the Trustee is acting as custodian for the Depositary or its nominee with respect to such
Global Security, the Principal Amount thereof shall be reduced, by an amount equal to the portion thereof to be so exchanged, by means of an appropriate adjustment made on the records of the Trustee. Upon any such surrender or adjustment, the
Trustee shall authenticate and deliver the Security issuable on such exchange to or upon the order of the Depositary or an authorized representative thereof. 
  
 (3)     Subject to the provisions of clause (5) below, the registered Holder may grant proxies and otherwise authorize any Person,
including Agent Members (as defined below) and persons that may hold interests through Agent Members, to take any action which a holder is entitled to take under this Indenture or the Securities. 
  
 (4)     In the event of the occurrence of any of the
events specified in clause (1) above, the Company will promptly make available to the Trustee a reasonable supply of Certificated Securities in definitive, fully registered form, without interest coupons. 
  
 (5)     Neither any members of, or participants in, the
Depositary (collectively, the “Agent Members”) nor any other Persons on whose behalf Agent Members may act shall have any rights under this Indenture with respect to any Global Security registered in the name of the Depositary or
any nominee thereof, or under any such Global Security, and the Depositary or such nominee, as the case may be, may be treated by the Company, the Trustee and any agent of the Company or the Trustee as the absolute owner and holder of such Global
Security for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall prevent the Company, the Trustee or any agent of the Company or the Trustee from giving effect to any written certification, proxy or other authorization
furnished by the Depositary or such nominee, as the case may be, or impair, as between the Depositary, its Agent Members and any other person on whose behalf an Agent Member may act, the operation of customary practices of such Persons governing the
exercise of the rights of a holder of any Security. 
  
 (f)     Notwithstanding anything to the contrary contained herein, in the case of Global Notes, notices may be delivered or withdrawn and other actions taken, and such Securities may be surrendered for transfer,
exchange, redemption or conversion in accordance with the Applicable Procedures as in effect from time to time. 
  

 16 

 Section 2.13     CUSIP Numbers. The Company may issue the Securities with one
or more “CUSIP” numbers (if then generally in use), and, if so, the Trustee shall use “CUSIP” numbers in notices of redemption as a convenience to Holders; provided that any such notice may state that no representation is made as
to the correctness of such numbers either as printed on the Securities or as contained in any notice of a redemption and that reliance may be placed only on the other identification numbers printed on the Securities, and any such redemption shall
not be affected by any defect in or omission of such numbers. The Company will promptly notify the Trustee of any change in the CUSIP numbers. 
  
 Section 2.14     Interest. 
  
 (a)     This Security shall accrue regular interest at a rate of 2% per annum. The Company promises to pay regular interest on the
Securities in cash semiannually in arrears on each May 1 and November 1, commencing May 1, 2005 through May 1, 2009, to Holders of record on the immediately preceding April 15 and October 15, respectively. After May 1, 2009, the Company will not pay
regular interest on the Securities prior to maturity. Regular interest on the Securities will accrue at a rate of 2%, compounded semiannually and is payable upon redemption, repurchase or final maturity. Interest will accrue from the most recent
date to which interest has been paid, or if no interest has been paid, from November 1, 2004, until the Principal Amount is paid or duly made available for payment. Interest will be computed on the basis of a 360-day year of twelve 30-day months.
The Company will pay regular interest on any overdue Principal Amount, and it shall pay interest on overdue installments of regular interest (without regard to any applicable grace period). 
  
 (b)     During any six-month period from November 1
through April 30 and from May 1 through October 31, commencing May 1, 2009, the Company shall pay contingent interest (“Contingent Interest”) on the Interest Payment Date for the applicable interest period if the average Trading
Price (as defined below) of the Securities during the five trading days ended on the third day immediately preceding the first day of the applicable interest period equals or exceeds 120% of the sum of the principal amount of, plus accrued and
unpaid regular interest on, the Securities. On any Interest Payment Date when Contingent Interest shall be payable, the Contingent Interest payable per $1,000 principal amount of Securities will equal 0.30% per year of the average Trading Price of
such $1,000 principal amount of Securities during the applicable five Trading Day reference period, payable in arrears. The Company shall notify the Holders of the Securities by press release or otherwise upon a determination that the Holders will
be entitled to receive Contingent Interest with respect to any six-month interest period. The Company shall also cause notice to be mailed to the Trustee on or prior to twenty (20) days following such determination. 
  
 The “Trading Price” of the Securities on any date of determination
means the average of the secondary bid quotations per Security obtained by the Calculation Agent, which will initially be the Trustee, for $5.0 million aggregate principal amount of Securities at approximately 3:30 p.m., New York City time, on such
determination date 
  

 17 

 from three independent nationally recognized securities dealers the Company selects, provided that if: 
  
 (1)     three such bids cannot reasonably
be obtained by the Calculation Agent, but two such bids can reasonably be obtained, then the average of the two bids shall be used; and 
  
 (2)     only one such bid can reasonably be obtained by the Calculation Agent, that one bid shall be used. 

 
 If the Calculation Agent cannot reasonably obtain at least one such bid,
or if, in the Company’s reasonable judgment, the bid quotations are not indicative of the secondary market value of the Securities, then the “Trading Price” of the Securities on any date of determination will equal (A) the applicable
Conversion Rate of the Securities as of such determination date multiplied by (B) the average Closing Price of the Common Shares on the five trading days ending on such determination date. 
  
 Section 2.15     [reserved]. 
  
 Section 2.16     Contingent Interest. If
Contingent interest is payable by the Company pursuant to Section 2.14(b) hereof, the Company shall deliver to the Trustee a certificate to that effect stating (i) the amount of such Contingent Interest per $1,000 principal amount of the Securities
that is payable, (ii) the facts and calculations supporting the determination of such amount and (iii) the date on which such interest is payable. Unless and until a Responsible Officer of the Trustee receives such a certificate, the Trustee may
assume without inquiry that no Contingent Interest is payable. 
  
 ARTICLE III 
  
 REDEMPTION AND PURCHASES 
  
 Section 3.1     Right to Redeem; Notices to
Trustee. 
  
 (a)     Optional
Redemption. The Company, at its option, may redeem the Securities in accordance with the provisions of paragraph 5 of the Securities in whole or in part, at any time or from time to time, on or after May 1, 2009 and prior to May 1, 2010 for a
redemption price equal to 100% of the principal amount of the Securities to be redeemed plus accrued and unpaid interest thereon up to but not including the Redemption Date, if the Volume Weighted Average Price of the Common Shares for 20 trading
days within a period of 30 consecutive trading days ending on the trading day before the date of mailing of the notice of redemption to the Trustee pursuant to clause (b) below exceeds 125% of the Conversion Price on such trading day; provided that
if the Redemption Date is on or after an interest record date but on or prior to the related interest payment date, interest will be payable to the Holders in whose names the Securities are registered at the close of business on the relevant record
date for payment of such interest. The Company, at its option, may redeem the Securities in accordance with the provisions of paragraph 5 of the Securities in whole or in part, at any time or from time to time, on or after May 1, 
  

 18 

 2010 for a redemption price equal to 100% of the principal amount of the Securities to be redeemed plus accrued and
unpaid interest thereon up to but not including the Redemption Date; provided that if the Redemption Date is on or after an interest record date but on or prior to the related interest payment date, interest will be payable to the Holders in whose
names the Securities are registered at the close of business on the relevant record date for payment of such interest. 
  
 (b)     Notice to Trustee. If the Company elects to redeem Securities pursuant to this Section 3.1, it shall notify the Trustee
in writing of the Redemption Date, the Principal Amount of Securities to be redeemed and the Redemption Price. The Company shall give the notice to the Trustee provided for in this Section 3.1(b) by a Company Order at least 20 days before the
Redemption Date (unless a shorter notice shall be satisfactory to the Trustee). 
  
 Section 3.2     Selection of Securities to be Redeemed. If less than all the Securities are to be redeemed, unless the procedures of the Depositary provide otherwise, the Trustee shall
select the Securities to be redeemed on a pro rata basis (so long as such method is not prohibited by the rules of any stock exchange on which the Securities are then listed). The Trustee shall make the selection at least 15 days but not more than
60 days before the Redemption Date from outstanding Securities not previously called for redemption. The Trustee may select for redemption portions of the Principal Amount of Securities that have denominations larger than $1,000. 
  
 Securities and portions of them the Trustee selects shall be in Principal
Amounts of $1,000 or an integral multiple of $1,000. Provisions of this Indenture that apply to Securities called for redemption also apply to portions of Securities called for redemption. The Trustee shall notify the Company promptly of the
Securities or portions of Securities to be redeemed. 
  
 If any
Security selected for partial redemption is converted in part before termination of the conversion right with respect to the portion of the Security so selected, the converted portion of such Security shall be deemed (so far as may be) to be the
portion selected for redemption. Securities that have been converted during a selection of Securities to be redeemed may be treated by the Trustee as outstanding for the purpose of such selection. 
  
 Section 3.3     Notice of Redemption. At least 15
days but not more than 60 days before a Redemption Date, the Company shall mail a notice of redemption by first-class mail, postage prepaid, to each Holder of Securities to be redeemed. 
  
 The notice shall identify the Securities to be redeemed and shall state: 
  
 (1) the Redemption Date; 
  
 (2) the Redemption Price; 
  
 (3) the Conversion Price; 
  

 19 

 (4)     the name and address of the Paying Agent and Conversion Agent; 
  
 (5)     that Securities called for redemption may be
converted at any time before the close of business on the Business Day immediately preceding the Redemption Date; 
  
 (6)     that Holders who want to convert Securities must satisfy the requirements set forth in paragraph 8 of the Securities;

  
 (7)     that Securities called for
redemption must be surrendered to the Paying Agent to collect the Redemption Price therefor, together with all accrued interest; 
  
 (8)     if fewer than all the outstanding Securities are to be redeemed, the certificate numbers, if any, and Principal Amounts of the
particular Securities to be redeemed; 
  
 (9)     that, unless the Company defaults in making payment of such Redemption Price, interest on Securities called for redemption will cease to accrue on and after the Redemption Date; and 
  
 (10)     the CUSIP number of the Securities. 

 
 At the Company’s request, the Trustee shall give the notice of
redemption in the Company’s name and at the Company’s expense, provided that the Company makes such request at least three Business Days prior to the date by which such notice of redemption must be given to Holders in accordance with this
Section 3.3. 
  
 Section 3.4     Effect of
Notice of Redemption. Once notice of redemption is given, Securities called for redemption become due and payable on the Redemption Date and at the Redemption Price stated in the notice, except for Securities which are converted in accordance
with the terms of this Indenture. Upon surrender to the Paying Agent, such Securities shall be paid at the Redemption Price stated in the notice, together with accrued interest up to but not including the Redemption Date. 
  
 Section 3.5     Deposit of Redemption Price. Prior
to 10:00 a.m. (New York City time) on the Redemption Date the Company shall deposit with the Paying Agent (or if the Company or a Subsidiary or an Affiliate of either of them is the Paying Agent, shall segregate and hold in trust) money sufficient
to pay the Redemption Price of all Securities to be redeemed on that date, together with accrued interest up to but not including the Redemption Date, other than Securities or portions of Securities called for redemption that on or prior thereto
have been delivered by the Company to the Trustee for cancellation or have been converted. The Paying Agent shall as promptly as practicable return to the Company any money not required for that purpose because of conversion of Securities pursuant
to Article 10. If such money is then held by the Company in trust and is not required for such purpose it shall be discharged from such trust. 
  

 20 

 Section 3.6     Securities Redeemed in Part. Upon surrender of a Security that
is redeemed in part, the Company shall execute and the Trustee shall authenticate and deliver to the Holder a new Security in an authorized denomination equal in Principal Amount to the unredeemed portion of the Security surrendered. 
  
 Section 3.7     Purchase of Securities at Option of
the Holder. 
  
 (a)     General.
Securities shall be purchased by the Company in accordance with the provisions of paragraph 6 of the Securities as of May 1, 2009, May 1, 2010, May 1, 2014 and May 1, 2019 (each, a “Purchase Date”) at a purchase price per Security
equal to 100% of the aggregate Principal Amount of the Security (the “Purchase Price”), together with accrued interest up to but not including the Purchase Date; provided that if the Purchase Date is on or after an interest
record date but on or prior to the related interest payment date, interest will be payable to the Holders in whose names the Securities are registered at the close of business on the relevant record date. 
  
 Purchases of Securities hereunder shall be made, at the option of the Holder
thereof, upon: 
  
  (1)     delivery to the
Paying Agent by the Holder of a written notice of purchase (a “Purchase Notice”) at any time from the opening of business on the date that is not less than 20 Business Days prior to the Purchase Date until the close of business on
the fifth Business Day prior to such Purchase Date stating: 
   
 (A)     the certificate number of the Security which the Holder will deliver to be purchased, 
  
 (B)     the portion of the Principal Amount of the Security which the Holder will deliver to be purchased, which
portion must be in principal amounts at maturity of $1,000 or an integral multiple thereof, 
  
 (C)     that such Security shall be purchased as of the Purchase Date pursuant to the terms and conditions specified
in paragraph 6 of the Securities and in this Indenture, 
  
 (D)     [reserved]. 
  
 (E)     delivery of such Security to the Paying Agent prior to, on or after the Purchase Date (together with all necessary endorsements) at the offices of the Paying Agent, such delivery being a condition to receipt by
the Holder of the Purchase Price therefor, together with all accrued interest; provided, however, that such Purchase Price, together with all accrued interest, shall be so paid pursuant to this Section 3.7 only if the Security so
delivered to the Paying Agent shall conform in all respects to the description thereof in the related Purchase Notice, as determined by the Company. 
  

 21 

 The Company shall purchase from the Holder thereof, pursuant to this Section 3.7, a portion of a Security
if the Principal Amount of such portion is $1,000 or an integral multiple of $1,000. Provisions of this Indenture that apply to the purchase of all of a Security also apply to the purchase of such portion of such Security. 
  
 Any purchase by the Company contemplated pursuant to the provisions of this
Section 3.7 shall be consummated by the delivery of the consideration to be received by the Holder promptly following the later of the Purchase Date and the time of delivery of the Security. 
  
 Notwithstanding anything herein to the contrary, any Holder delivering to the
Paying Agent the Purchase Notice contemplated by this Section 3.7(a) shall have the right to withdraw such Purchase Notice at any time prior to the close of business on the Purchase Date by delivery of a written notice of withdrawal to the Paying
Agent in accordance with Section 3.9. 
  
 The Paying Agent shall
promptly notify the Company of the receipt by it of any Purchase Notice or written notice of withdrawal thereof. 
  
 (b)     Manner of Payment of Purchase Price. The Purchase Price of Securities in respect of which a Purchase Notice pursuant to
Section 3.7(a) has been given shall be paid in U.S. legal tender (“cash”). 
  
 (c)     Payment of Purchase Price in Cash. The Company shall deposit cash, in respect of purchases under this Section 3.7, at the time and in the manner as provided in Section 3.10,
sufficient to pay the aggregate Purchase Price of all Securities, together with all accrued interest to, but not including, the Purchase Date, to be purchased pursuant to this Section 3.7. 
  
 (d)     [reserved]. 
  
 (e)     Company Notice. In connection with any
purchase of Securities pursuant to Section 3.7, the Company shall give written notice of the Purchase Date to the Holders (the “Company Notice”). The Company Notice shall be sent by first-class mail to the Trustee and to each Holder
(and to each beneficial owner as required by applicable law) not less than 20 Business Days prior to any Purchase Date (the “Company Notice Date”). Each Company Notice shall include a form of Purchase Notice to be completed by a
Securityholder and shall state: 
  
 (i)     the Purchase Price and the Conversion Price per $1,000 principal amount of Securities and any Securities and any adjustment thereto; 
  
 (ii)     the name and address of the Paying Agent and the Conversion Agent; 

 
 (iii)     [reserved]; 
  
 (iv)     [reserved]; 
  

 22 

 (v)     that Securities as to which a Purchase Notice has been given
may be converted if they are otherwise convertible only in accordance with Article 10 hereof and paragraph 8 of the Securities if the applicable Purchase Notice has been withdrawn in accordance with the terms of this Indenture; 
  
 (vi)     that Securities must be
surrendered to the Paying Agent to collect payment; 
  
 (vii)     that the Purchase Price for, and any accrued interest on, any Security as to which a Purchase Notice has been given and not withdrawn will be paid promptly following the later of the Purchase Date and the time
of surrender of such Security as described in subclause (vi) above; 
  
  (viii)     the procedures the Holder must follow to exercise rights under Section 3.7 and a brief description of those rights, including the dates that the Purchase Notices may be submitted;

   
 (ix)     briefly, the
conversion rights of the Securities; 
  
 (x)     the procedures for withdrawing a Purchase Notice (including pursuant to the terms of Section 3.9); 
  
 (xi)     that, unless the Company defaults in making payment on Securities for which a Purchase Notice has been
submitted, interest on such Securities will cease to accrue on the Purchase Date; and 
  
 (xii)     the CUSIP number of the Securities. 
  
 At the Company’s request, the Trustee shall give such Company Notice in the Company’s name and at the
Company’s expense; provided, however, that, in all cases, the text of such Company Notice shall be prepared by the Company. 
  
 Section 3.8     Purchase of Securities at Option of the Holder upon Change in Control. 
  
 (a)     If at any time the Securities remain outstanding
there shall have occurred a Change in Control, Securities shall be purchased by the Company, at the option of the Holder thereof, at a purchase price specified in paragraph 6 of the Securities (the “Change in Control Purchase
Price”), as of the date that is 45 Business Days after the occurrence of the Change in Control (the “Change in Control Purchase Date”), subject to satisfaction by or on behalf of the Holder of the requirements set forth in
Section 3.8(c). 
  
 A “Change in Control” shall be
deemed to have occurred at such time as either of the following events shall occur: 
  
 (i)     There shall be consummated any share exchange, consolidation or merger of the Company pursuant to which the
Common Shares would be converted into cash, securities or other property, in each case other than a share exchange, consolidation or merger of the Company in which the holders of the 

  

 23 

 
Common Shares immediately prior to the share exchange, consolidation or merger have, directly or indirectly, at least a majority of the total voting power in
the aggregate of all classes of Capital Stock of the continuing or surviving corporation immediately after the share exchange, consolidation or merger; or 
  
 (ii)     There is a report filed on Schedule 13D or TO (or any successor schedule, form or report) pursuant to the
Exchange Act, disclosing that any person (for the purposes of this Section 3.8 only, as the term “person” is used in Section 13(d)(3) or Section 14(d)(2) of the Exchange Act) has become the beneficial owner (as the term “beneficial
owner” is defined under Rule 13d-3 or any successor rule or regulation promulgated under the Exchange Act) of greater than 50% of the voting power of the Common Shares then outstanding; provided, however, that a person shall not
be deemed beneficial owner of, or to own beneficially, (A) any securities tendered pursuant to a tender or exchange offer made by or on behalf of such person or any of such person’s Affiliates or Associates until such tendered securities are
accepted for purchase or exchange thereunder, or (B) any securities if such beneficial ownership (1) arises solely as a result of a revocable proxy delivered in response to a proxy or consent solicitation made pursuant to the applicable rules and
regulations under the Exchange Act, and (2) is not also then reportable on Schedule 13D (or any successor schedule) under the Exchange Act. 
  
 Notwithstanding the foregoing provisions of this Section 3.8, a Change in Control shall not be deemed to have occurred by virtue of the Company, any Subsidiary, any
employee stock ownership plan or any other employee benefit plan of the Company or any Subsidiary, or any person holding Common Shares for or pursuant to the terms of any such employee benefit plan, filing or becoming obligated to file a report
under or in response to Schedule 13D or Schedule TO (or any successor schedule, form or report) under the Exchange Act disclosing beneficial ownership by it of shares of Common Shares, whether in excess of 50% or otherwise and, provided, further
that a Change in Control will not be deemed to have occurred if at least 90% of the total consideration paid or exchanged for the Common Shares is in the form of common stock of the acquiror or successor entity which is traded on a national
securities exchange. 
  
 “Associate” shall have the
meaning ascribed to such term in Rule 12b-2 of the General Rules and Regulations under the Exchange Act, as in effect on the date hereof. 
  
 (b)     Within 30 days after the occurrence of a Change in Control, the Company shall mail a written notice of the Change in Control
by first-class mail to the Trustee and to each Holder (and to beneficial owners as required by applicable law). The notice shall include a form of Change in Control Purchase Notice to be completed by the Securityholder and shall state: 

 
 (1)     briefly, the events causing a Change in
Control and the date of such Change in Control; 
  

 24 

 (2)     the date by which the Change in Control Purchase Notice pursuant to this
Section 3.8 must be given; 
  
 (3)     the
Change in Control Purchase Date; 
  
 (4)    
the Change in Control Purchase Price; 
  
 (5)     the name and address of the Paying Agent and the Conversion Agent; 
  
 (6)     the Conversion Price and any adjustments thereto; 
  
 (7)     that Securities as to which a Change in Control Purchase Notice has been given may be converted
pursuant to Article 10 hereof only if the Change in Control Purchase Notice has been withdrawn in accordance with the terms of this Indenture; 
  
 (8)     that Securities must be surrendered to the Paying Agent to collect payment; 
  
 (9)     that the Change in Control Purchase Price for any
Security as to which a Change in Control Purchase Notice has been duly given and not withdrawn will be paid promptly following the later of the Change in Control Purchase Date and the time of surrender of such Security as described in (8);

  
 (10)     briefly, the procedures the
Holder must follow to exercise rights under this Section 3.8; 
  
 (11)     briefly, the conversion rights of the Securities; 
  
 (12)     the procedures for withdrawing a Change in Control Purchase Notice; 
  
 (13)     that, unless the Company defaults in making payment of such Change in Control Purchase Price, interest on Securities
surrendered for purchase by the Company will cease to accrue on and after the Change in Control Purchase Date; and 
  
 (14)     the CUSIP number of the Securities. 
  

(c)     A Holder may exercise its rights specified in Section 3.8(a) upon delivery of a written notice of purchase (a
“Change in Control Purchase Notice”) to the Paying Agent at any time prior to the close of business on the fifth business day prior to the Change in Control Purchase Date, stating: 
  
 (1)     the certificate number of the Security that the
Holder will deliver to be purchased; 
  

 25 

 (2)     the portion of the Principal Amount of the Security which the Holder will
deliver to be purchased, which portion must be $1,000 or an integral multiple thereof; and 
  
 (3)     that such Security shall be purchased pursuant to the terms and conditions specified in paragraph 6 of the Securities. 
  
 The delivery of such Security to the Paying Agent prior to, on or after the Change in Control Purchase Date (together with
all necessary endorsements) at the offices of the Paying Agent shall be a condition to the receipt by the Holder of the Change in Control Purchase Price therefor; provided, however, that such Change in Control Purchase Price shall be
so paid pursuant to this Section 3.8 only if the Security so delivered to the Paying Agent shall conform in all respects to the description thereof set forth in the related Change in Control Purchase Notice. 
  
 The Company shall purchase from the Holder thereof, pursuant to this Section
3.8, a portion of a Security if the Principal Amount of such portion is $1,000 or an integral multiple of $1,000. Provisions of this Indenture that apply to the purchase of all of a Security also apply to the purchase of such portion of such
Security. 
  
 Any purchase by the Company contemplated pursuant to
the provisions of this Section 3.8 shall be consummated by the delivery of the consideration to be received by the Holder promptly following the later of the Change in Control Purchase Date and the time of delivery of the Security to the Paying
Agent in accordance with this Section 3.8. 
  
 Notwithstanding
anything herein to the contrary, any Holder delivering to the Paying Agent the Change in Control Purchase Notice contemplated by this Section 3.8(c) shall have the right to withdraw such Change in Control Purchase Notice at any time prior to the
close of business on the Change in Control Purchase Date by delivery of a written notice of withdrawal to the Paying Agent in accordance with Section 3.9. 
  
 The Paying Agent shall promptly notify the Company of the receipt by it of any Change in Control Purchase Notice or written withdrawal thereof.

  
 Section 3.9     Effect of Purchase
Notice or Change in Control Purchase Notice. Upon receipt by the Paying Agent of the Purchase Notice or Change in Control Purchase Notice specified in Section 3.7(a) or Section 3.8(c), as applicable, the Holder of the Security in respect of
which such Purchase Notice or Change in Control Purchase Notice, as the case may be, was given shall (unless such Purchase Notice or Change in Control Purchase Notice is withdrawn as specified in the following two paragraphs) thereafter be entitled
to receive solely the Purchase Price, together with all accrued interest to, but not including, the Purchase Date, or Change in Control Purchase Price, as the case may be, with respect to such Security. Such Purchase Price, together with all accrued
interest to, but not including, the Purchase Date, or Change in Control Purchase Price, as the case may be, shall be paid to such Holder, subject to receipt of funds and/or securities by the Paying Agent, promptly following the later of 

 

 26 

 (x) the Purchase Date or the Change in Control Purchase Date, as the case may be, with respect to such Security (provided
the conditions in Section 3.7(a) or Section 3.8(c), as applicable, have been satisfied) and (y) the time of delivery of such Security to the Paying Agent by the Holder thereof in the manner required by Section 3.7(a) or Section 3.8(c), as
applicable. Securities in respect of which a Purchase Notice or Change in Control Purchase Notice, as the case may be, has been given by the Holder thereof may not be converted pursuant to Article 10 hereof on or after the date of the delivery of
such Purchase Notice or Change in Control Purchase Notice, as the case may be, unless such Purchase Notice or Change in Control Purchase Notice, as the case may be, has first been validly withdrawn as specified in the following two paragraphs.

  
 A Purchase Notice or Change in Control Purchase Notice, as the
case may be, may be withdrawn by means of a written notice of withdrawal delivered to the office of the Paying Agent in accordance with the Purchase Notice or Change in Control Purchase Notice, as the case may be, at any time prior to the close of
business on the Purchase Date or the Change in Control Purchase Date, as the case may be, specifying: 
  
 (1)     the certificate number, if any, of the Security in respect of which such notice of withdrawal is being submitted, 

 
 (2)     the Principal Amount of the Security with
respect to which such notice of withdrawal is being submitted, and 
  
 (3)     the Principal Amount, if any, of such Security which remains subject to the original Purchase Notice or Change in Control Purchase Notice, as the case may be, and which has been or will be delivered for purchase
by the Company. 
  
 A written notice of withdrawal of a Purchase
Notice shall be in the form set forth in the preceding paragraph. 
  
 There shall be no purchase of any Securities pursuant to Section 3.7 or 3.8 if there has occurred (prior to, on or after, as the case may be, the giving, by the Holders of such Securities, of the required Purchase Notice or Change in
Control Purchase Notice, as the case may be) and is continuing an Event of Default (other than a default in the payment of the Purchase Price or Change in Control Purchase Price, as the case may be, with respect to such Securities). The Paying Agent
will promptly return to the respective Holders thereof any Securities (x) with respect to which a Purchase Notice or Change in Control Purchase Notice, as the case may be, has been withdrawn in compliance with this Indenture, or (y) held by it
during the continuance of an Event of Default (other than a default in the payment of the Purchase Price or Change in Control Purchase Price, as the case may be, with respect to such Securities) in which case, upon such return, the Purchase Notice
or Change in Control Purchase Notice with respect thereto shall be deemed to have been withdrawn. 
  
 (b)     Deposit of Purchase Price or Change in Control Purchase Price. Prior to 10:00 a.m. (local time in the City of New York)
on the Business Day following the Purchase Date or the Change in Control Purchase Date, as the case may be, the 
  

 27 

 Company shall deposit with the Trustee or with the Paying Agent (or, if the Company or a Subsidiary or an Affiliate of
either of them is acting as the Paying Agent, shall segregate and hold in trust as provided in Section 2.4) an amount of money (in immediately available funds if deposited on such Business Day) sufficient to pay the aggregate Purchase Price,
together with all accrued interest to, but not including, the Purchase Date, or Change in Control Purchase Price, as the case may be, of all the Securities or portions thereof which are to be purchased as of the Purchase Date or Change in Control
Purchase Date, as the case may be. 
  
 Section
3.10     Securities Purchased in Part. Any Certificated Security that is to be purchased only in part shall be surrendered at the office of the Paying Agent (with, if the Company or the Trustee so requires, due endorsement
by, or a written instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the Holder thereof or such Holder’s attorney duly authorized in writing) and the Company shall execute and the Trustee shall
authenticate and deliver to the Holder of such Security, without service charge, a new Security or Securities, of any authorized denomination as requested by such Holder in aggregate Principal Amount equal to, and in exchange for, the portion of the
Principal Amount of the Security so surrendered which is not purchased. 
  
 Section 3.11     Covenant to Comply With Securities Laws Upon Purchase of Securities. When complying with the provisions of Section 3.7 or 3.8 hereof (provided that such offer or purchase constitutes an
“issuer tender offer” for purposes of Rule 13e-4 (which term, as used herein, includes any successor provision thereto) under the Exchange Act at the time of such offer or purchase), the Company shall (i) comply in all material respects
with Rule 13e-4 and Rule 14e-1 under the Exchange Act, (ii) file the related Schedule TO (or any successor schedule, form or report) under the Exchange Act, and (iii) otherwise comply in all material respects with all Federal and state securities
laws so as to permit the rights and obligations under Sections 3.7 and 3.8 to be exercised in the time and in the manner specified in Sections 3.7 and 3.8. 
  
 Section 3.12     Repayment to the Company. The Trustee and the Paying Agent shall return to the Company any cash that remains
unclaimed as provided in paragraph 12 of the Securities, together with interest or dividends, if any, thereon (subject to the provisions of Section 7.1(f)), held by them for the payment of the Purchase Price or Change in Control Purchase Price, as
the case may be, and accrued interest; provided, however, that to the extent that the aggregate amount of cash deposited by the Company pursuant to Section 3.10 exceeds the aggregate Purchase Price or Change in Control Purchase Price,
as the case may be, of the Securities or portions thereof which the Company is obligated to purchase as of the Purchase Date or Change in Control Purchase Date, as the case may be, and accrued interest thereon, then, unless otherwise agreed in
writing with the Company, promptly after the Business Day following the Purchase Date or Change in Control Purchase Date, as the case may be, the Trustee shall return any such excess to the Company together with interest or dividends, if any,
thereon (subject to the provisions of Section 7.1(f)). 
  

 28 

 ARTICLE IV 
  
 COVENANTS 
  
 Section 4.1     Payment of Securities. The Company shall promptly make all payments in respect of the Securities on the dates
and in the manner provided in the Securities or pursuant to this Indenture. Any amounts to be given to the Trustee or Paying Agent shall be deposited with the Trustee or Paying Agent by 10:00 a.m. (New York City time) by the Company. Interest
installments, Principal Amount, Redemption Price, Purchase Price, Change in Control Purchase Price and interest, if any, due on overdue amounts shall be considered paid on the applicable date due if on such date (or, in the case of a Purchase Price
or Change in Control Purchase Price, on the Business Day following the applicable Purchase Date or Change in Control Purchase Date, as the case may be) the Trustee or the Paying Agent holds, in accordance with this Indenture, money sufficient to pay
all such amounts then due. 
  
 The Company shall, to the extent
permitted by law, pay interest on overdue amounts at the rate per annum set forth in paragraph 1 of the Securities, compounded semiannually, which interest shall accrue from the date such overdue amount was originally due to the date payment of such
amount, including interest thereon, has been made or duly provided for. All such interest shall be payable on demand. The accrual of such interest on overdue amounts shall be in addition to the continued accrual of interest on the Securities.

  
 Section 4.2     SEC and Other
Reports. The Company shall file with the Trustee, within 15 days after it files such annual and quarterly reports, information, documents and other reports with the SEC, copies of its annual report and of the information, documents and other
reports (or copies of such portions of any of the foregoing as the SEC may by rules and regulations prescribe) which the Company is required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act. In the event the Company is at any
time no longer subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, it shall continue to provide the Trustee with reports containing substantially the same information as would have been required to be filed with the SEC
had the Company continued to have been subject to such reporting requirements. In such event, such reports shall be provided at the times the Company would have been required to provide reports had it continued to have been subject to such reporting
requirements. 
  
 In addition, the Company shall comply with the
other provisions of TIA Section 314(a). 
  
 Section
4.3     Compliance Certificate. The Company shall deliver to the Trustee within 120 days after the end of each fiscal year of the Company (beginning with the fiscal year ending on December 31, 2004) an Officers’
Certificate, stating whether or not to the best knowledge of the signers thereof the Company is in default in the performance and observance of any of the terms, provisions and conditions of this Indenture (without regard to any period of grace or
requirement of notice provided 
  

 29 

 hereunder) and if the Company shall be in default, specifying all such defaults and the nature and status thereof of
which they may have knowledge. 
  
 Section
4.4     Further Instruments and Acts. Upon request of the Trustee, the Company will execute and deliver such further instruments and do such further acts as may be reasonably necessary or proper to carry out more
effectively the purposes of this Indenture. 
  
 Section
4.5     Maintenance of Office or Agency. The Company will maintain in the Borough of Manhattan, the City of New York, an office or agency of the Trustee, Registrar, Paying Agent and Conversion Agent where Securities may be
presented or surrendered for payment, where Securities may be surrendered for registration of transfer, exchange, purchase, redemption or conversion and where notices and demands to or upon the Company in respect of the Securities and this Indenture
may be served. The office of U.S. Bank Trust National Association, an Affiliate of the Trustee, 100 Wall Street, Suite 1600, Mail Station: Ex-NY-Wall, New York, NY 10005, Attention: Corporate Trust Services (Reebok 2% Convertible Debentures due May
1, 2024), shall initially be such office or agency for all of the aforesaid purposes. The Company shall give prompt written notice to the Trustee of the location, and of any change in the location, of any such office or agency (other than a change
in the location of the office of the Trustee). If at any time the Company shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders, notices and demands
may be made or served at the address of the Trustee set forth in Section 11.2. 
  
 The Company may also from time to time designate one or more other offices or agencies where the Securities may be presented or surrendered for any or all such purposes and may from time to time rescind such
designations; provided, however, that no such designation or rescission shall in any manner relieve the Company of its obligation to maintain an office or agency in the Borough of Manhattan, the City of New York, for such purposes. 
  
 Section 4.6     Delivery of Certain Information.
At any time when the Company is not subject to Section 13 or 15(d) of the Exchange Act, upon the request of a Holder or any beneficial owner of Securities or holder or beneficial owner of Common Shares delivered upon conversion thereof, the Company
will promptly furnish or cause to be furnished Rule 144A Information (as defined below) to such Holder or any beneficial owner of Securities or holder or beneficial owner of Common Shares, or to a prospective purchaser of any such security
designated by any such holder, as the case may be, to the extent required to permit compliance by such Holder or holder with Rule 144A under the Securities Act in connection with the resale of any such security. “Rule 144A Information”
shall be such information as is specified pursuant to Rule 144A(d)(4) under the Securities Act or any successor provisions. Whether a person is a beneficial owner shall be determined by the Company to the Company’s reasonable satisfaction.

  
 Section 4.7     Tax Treatment of
Securities. The Company agrees, and by purchasing a beneficial ownership interest in a Security each Holder and each Person 
  

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 (including an entity) that acquires a direct or indirect beneficial interest in the Securities will be deemed to have
agreed (i) for United States federal income tax purposes, to treat the Securities as indebtedness of the Company that is a continuation of the Company’s 2% Convertible Debentures due May 1, 2024 and is subject to Treas. Reg. Sec. 1.1275-4 (the
“Contingent Payment Regulations”), (ii) for purposes of the Contingent Payment Regulations, to treat the fair market value of any stock beneficially received by a beneficial holder upon any conversion of the Securities as a
contingent payment, (iii) to be bound by the Company’s determination that the Securities are contingent payment debt instruments subject to the “noncontingent bond method” of accruing original issue discount within the meaning of the
Contingent Payment Regulations with respect to the Securities, (iv) to accrue original issue discount at the comparable yield as determined by the Company and (v) to be bound by the Company’s projected payment schedule with respect to the
Securities, each unless otherwise required by judicial or administrative determination. The parties hereto acknowledge that the comparable yield and the schedule of projected payments are not determined for any purpose other than for the
determination of interest accruals and adjustment thereof in respect of the Securities for United States federal income tax purposes; and that the comparable yield and the schedule of projected payments do not constitute a projection or
representation regarding the future stock price or the amounts payable on the Securities. For purposes of the foregoing, the Company’s determination of the “comparable yield” is 4.61% per annum, compounded semiannually. A Holder of
Securities may obtain the amount of original issue discount, issue date, comparable yield and projected payment schedule by submitting a written request to: Reebok International Ltd., 1895 J.W. Foster Boulevard, Canton, Massachusetts 02021, Attn.:
Office of Investor Relations. 
  
 ARTICLE V 
  
 SUCCESSOR CORPORATION 
  
 Section 5.1     When Company May Merge or Transfer
Assets. The Company shall not consolidate with or merge with or into any other person or convey, transfer or lease its properties and assets substantially as an entirety to any person, unless: 
  
 (a)     (1) the Company shall be the continuing
corporation or (2) the person (if other than the Company) formed by such consolidation or into which the Company is merged or the person which acquires by conveyance, transfer or lease the properties and assets of the Company substantially as an
entirety (i) shall be organized and validly existing under the laws of the United States or any State thereof or the District of Columbia, or (B) if such merger, consolidation or other transaction would not impair the rights of Securityholders, any
other country and (ii) shall expressly assume, by an indenture supplemental hereto, executed and delivered to the Trustee, in form satisfactory to the Trustee, all of the obligations of the Company under the Securities and this Indenture;

  
 (b)     immediately after giving effect to
such transaction, no Default shall have occurred and be continuing; and 
  

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 (c)     the Company shall have delivered to the Trustee an Officers’ Certificate
and an Opinion of Counsel, each stating that such consolidation, merger, conveyance, transfer or lease and, if a supplemental indenture is required in connection with such transaction, such supplemental indenture, comply with this Article 5 and that
all conditions precedent herein provided for relating to such transaction have been satisfied. 
  
 For purposes of the foregoing, the transfer (by lease, assignment, sale or otherwise) of the properties and assets of one or more Subsidiaries (other than to the Company or another Subsidiary), which, if such assets
were owned by the Company would constitute all or substantially all of the properties and assets of the Company shall be deemed to be the transfer of all or substantially all of the properties and assets of the Company. 
  
 The successor person formed by such consolidation or into which the Company
is merged or the successor person to which such conveyance, transfer or lease is made shall succeed to, and be substituted for, and may exercise every right and power of, the Company under this Indenture with the same effect as if such successor had
been named as the Company herein; and thereafter, except in the case of a lease and obligations the Company may have under a supplemental indenture pursuant to Section 10.12, the Company shall be discharged from all obligations and covenants under
this Indenture and the Securities. Subject to Section 9.6, the Company, the Trustee and the successor person shall enter into a supplemental indenture to evidence the succession and substitution of such successor person and such discharge and
release of the Company. 
  
 ARTICLE VI 
  
 DEFAULTS AND REMEDIES 
  
 Section 6.1     Events of Default. An “Event
of Default” occurs if: 
  
 (1)     the
Company defaults in the payment of interest, if any, payable on any Security when the same becomes due and payable and such default continues for a period of 30 days after receipt by the Company of a Notice of Default; 
  
 (2)     the Company defaults in the payment of the
Principal Amount, Redemption Price, Purchase Price or Change in Control Purchase Price on any Security when the same becomes due and payable at its Stated Maturity, upon redemption, upon declaration, when due for purchase by the Company or
otherwise; 
  
 (3)     the Company defaults in
its obligation to convert any Securities into cash and, if applicable, Common Shares upon exercise of a Holder’s conversion right pursuant to Article 10 hereof and paragraph 8 of the Securities and such default continues for 10 Business Days
after receipt by the Company of a Notice of Default; 
  
 (4)     the Company fails to comply with any of its agreements in the Securities or this Indenture (other than those referred to in clauses (1) and (2) above) and such failure continues for 90 days after receipt by the
Company of a Notice of Default; 
  

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 (5)     an event of default, as defined in any indenture, including this Indenture,
or instrument evidencing or under which the Company, on the date any determination shall be made under this clause (5), shall have outstanding at least $25,000,000 aggregate principal amount of Indebtedness for borrowed money (other than
Non-Recourse Indebtedness), shall happen and be continuing and such event of default shall involve (x) the failure to pay the principal of or premium, if any, on such Indebtedness (or any part thereof) on the final maturity date thereof after the
expiration of any applicable grace period with respect thereto, or (y) such Indebtedness shall have been accelerated so that the same shall be or become due and payable prior to the date on which the same would otherwise have become due and payable,
and such acceleration shall not be rescinded or annulled within ten Business Days after notice thereof shall have been given to the Company by the Trustee (if such event be known to it) or to the Company and the Trustee by the Holders of at least
25% in aggregate principal amount of all of the Securities at the time outstanding; provided that, if such event of default under such indenture or instrument shall be remedied or cured by the Company or waived by the requisite holders of such
indebtedness, then the Event of Default by reason thereof shall be deemed likewise to have been thereupon remedied, cured or waived without further action upon the part of either the Trustee or any of the Securityholders; provided,
further, however, that subject to the provisions of Section 7.1 and 7.2, the Trustee shall not be charged with knowledge of any such event of default unless written notice thereof shall have been given to the Trustee by the Company, by
the holder or an agent of the holder of any such Indebtedness, by the trustee then acting under any indenture or other instrument under which such default shall have occurred, or by the Holders of not less than 25% in the aggregate principal amount
of the Securities at the time outstanding; 
  
 (6)     a court having jurisdiction in the premises shall enter a decree or order for relief in respect of the Company in an involuntary case under any applicable bankruptcy, insolvency or other similar law now or
hereafter in effect, or appointing a receiver, liquidator, assignee, custodian, trustee or sequestrator (or similar official) of the Company or for any substantial part of its property or ordering the winding up or liquidation of its affairs and
such decree or order shall remain unstayed and in effect for a period of 60 consecutive days; or 
  
 (7)     the Company shall commence a voluntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter
in effect, or consent to the entry of an order for relief in an involuntary case under any such law, or consent to the appointment of or taking possession by a receiver, liquidator, assignee, custodian, trustee or sequestrator (or similar official)
of the Company or for any substantial part of its property or make any general assignment for the benefit of creditors. 
  
 A Default under clause (4) or (5) above is not an Event of Default until the Trustee notifies the Company, or the Holders of at least 25% in aggregate
Principal Amount of the Securities at the time outstanding notify the Company and the Trustee, of the Default and the Company does not cure such Default (and such Default is not waived) within the time specified in clause (4) or (5) above after
actual receipt of such notice. 
  

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 Any such notice must specify the Default, demand that it be remedied and state that such notice is a “Notice of
Default.” 
  
 The Company shall deliver to the Trustee,
within 30 days after it becomes aware of the occurrence thereof, written notice of any event which with the giving of notice or the lapse of time, or both, would become an Event of Default under clauses (4) or (5) above, its status and what action
the Company is taking or proposes to take with respect thereto. 
  
 Section 6.2     Acceleration. If an Event of Default (other than an Event of Default specified in Section 6.1(6) or (7) occurs and is continuing, the Trustee by notice to the Company, or the Holders of at least
25% in aggregate Principal Amount of the Securities at the time outstanding by notice to the Company and the Trustee, may declare the Principal Amount of all the Securities plus all accrued interest thereon through the date of declaration to be
immediately due and payable. Upon such a declaration, such Principal Amount plus all accrued interest shall become and be immediately due and payable. If an Event of Default specified in Section 6.1(6) or (7) occurs and is continuing, the Principal
Amount of all the Securities plus all accrued interest thereon shall become and be immediately due and payable without any declaration or other act on the part of the Trustee or any Securityholders. The Holders of a majority in aggregate Principal
Amount of the Securities at the time outstanding, by notice to the Trustee (and without notice to any other Securityholder), may rescind an acceleration and its consequences if the rescission would not conflict with any judgment or decree and if all
existing Events of Default have been cured or waived except nonpayment of the Principal Amount plus all accrued interest that have become due solely as a result of acceleration and if all amounts due to the Trustee under Section 7.7 have been paid.
No such rescission shall affect any subsequent Default or impair any right consequent thereto. 
  
 Section 6.3     Other Remedies. If an Event of Default occurs and is continuing, the Trustee may pursue any available remedy to collect the payment of the Principal Amount of all the
Securities plus all accrued interest thereon or to enforce the performance of any provision of the Securities or this Indenture. 
  
 The Trustee may maintain a proceeding even if the Trustee does not possess any of the Securities or does not produce any of the Securities in the
proceeding. A delay or omission by the Trustee or any Securityholder in exercising any right or remedy accruing upon an Event of Default shall not impair the right or remedy or constitute a waiver of, or acquiescence in, the Event of Default. No
remedy is exclusive of any other remedy. All available remedies are cumulative to the extent permitted by law. 
  
 Section 6.4     Waiver of Past Defaults. The Holders of a majority in aggregate Principal Amount of the Securities at the time
outstanding, by notice to the Trustee (and without notice to any other Securityholder), may waive an existing Default and its consequences except (a) an Event of Default described in Section 6.1(1), 6.1(2) or 6.1(3), (b) a Default in respect of a
provision that under Section 9.2 cannot be 
  

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 amended without the consent of each Securityholder affected or (c) a Default which constitutes a failure to convert any
Security in accordance with the terms of Article 10. When a Default is waived, it is deemed cured, but no such waiver shall extend to any subsequent or other Default or impair any consequent right. This Section 6.4 shall be in lieu of Section
316(a)1(B) of the TIA and such Section 316(a)1(B) is hereby expressly excluded from this Indenture, as permitted by the TIA. 
  
 Section 6.5     Control by Majority. The Holders of a majority in aggregate Principal Amount of the Securities at the time
outstanding may direct the time, method and place of conducting any proceeding for any remedy available to the Trustee or of exercising any trust or power conferred on the Trustee. However, the Trustee may refuse to follow any direction that
conflicts with law or this Indenture or that the Trustee determines in good faith is unduly prejudicial to the rights of other Securityholders or would involve the Trustee in personal liability unless the Trustee is offered indemnity satisfactory to
it. This Section 6.5 shall be in lieu of Section 316(a)1(A) of the TIA and such Section 316(a)1(A) is hereby expressly excluded from this Indenture, as permitted by the TIA. 
  
 Section 6.6     Limitation on Suits. A Securityholder may not pursue any remedy with respect to
this Indenture or the Securities unless: 
  
 (1)     the Holder gives to the Trustee written notice stating that an Event of Default is continuing; 
  
 (2)     the Holders of at least 25% in aggregate Principal Amount of the Securities at the time outstanding make a written request to
the Trustee to pursue the remedy; 
  
 (3)    
such Holder or Holders offer to the Trustee security or indemnity satisfactory to the Trustee against any loss, liability or expense; 
  
 (4)     the Trustee does not comply with the request within 60 days after receipt of such notice, request and offer of security or
indemnity; and 
  
 (5)     the Holders of a
majority in aggregate Principal Amount of the Securities at the time outstanding do not give the Trustee a direction inconsistent with the request during such 60-day period. 
  
 A Securityholder may not use this Indenture to prejudice the rights of any other Securityholder or to obtain a preference or
priority over any other Securityholder. 
  
 Section
6.7     Rights of Holders to Receive Payment. Notwithstanding any other provision of this Indenture, the right of any Holder to receive payment of interest installments, the Principal Amount, Redemption Price, Purchase
Price, Change in Control Purchase Price or interest, if any, due on overdue amounts in respect of the Securities held by such Holder, on or after the respective due dates expressed in the Securities, and to convert the Securities in accordance with
Article 10, or to bring suit 
  

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 for the enforcement of any such payment on or after such respective dates or the right to convert, shall not be impaired
or affected adversely without the consent of such Holder. 
  
 Section 6.8     Collection Suit by Trustee. If an Event of Default described in Section 6.1(1) or 6.1(2) occurs and is continuing, the Trustee may recover judgment in its own name and as trustee of an express
trust against the Company for the whole amount owing with respect to the Securities and the amounts provided for in Section 7.7. 
  
 Section 6.9     Trustee May File Proofs of Claim. In case of the pendency of any receivership, insolvency, liquidation,
bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to the Company or any other obligor upon the Securities or the property of the Company or of such other obligor or their creditors, the Trustee
(irrespective of whether interest installments, the Principal Amount, Redemption Price, Purchase Price, Change in Control Purchase Price or interest, if any, due on overdue amounts in respect of the Securities shall then be due and payable as
therein expressed or by declaration or otherwise and irrespective of whether the Trustee shall have made any demand on the Company for the payment of any such amount) shall be entitled and empowered, by intervention in such proceeding or otherwise,

  
 (a)     to file and prove a claim for any
accrued and unpaid interest installments, the whole amount of the Principal Amount, Redemption Price, Purchase Price, Change in Control Purchase Price or interest, if any, due on overdue amounts in respect of the Securities, and to file such other
papers or documents as may be necessary or advisable in order to have the claims of the Trustee (including any claim for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel or any other amounts
due the Trustee under Section 7.7) and of the Holders allowed in such judicial proceeding, and 
  
 (b)     to collect and receive any moneys or other property payable or deliverable on any such claims and to distribute the same; 
  
 and any custodian, receiver, assignee, trustee, liquidator, sequestrator or similar official in any such judicial proceeding is hereby
authorized by each Holder to make such payments to the Trustee and, in the event that the Trustee shall consent to the making of such payments directly to the Holders, to pay the Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.7. 
  
 Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan of
reorganization, arrangement, adjustment or composition affecting the Securities or the rights of any Holder thereof, or to authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding. 
  

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 Section 6.10     Priorities. If the Trustee collects any money pursuant to
this Article 6, it shall pay out the money in the following order: 
  
 FIRST: to the Trustee for amounts due under Section 7.7; 
  
 SECOND: to Securityholders for amounts due and unpaid on the Securities for any accrued and unpaid interest installments, the Principal Amount, Redemption Price, Purchase Price, Change in Control Purchase Price or interest, if any, due on
overdue amounts in respect of the Securities, as the case may be, ratably, without preference or priority of any kind, according to such amounts due and payable on the Securities; and 
  
 THIRD: the balance, if any, to the Company. 
  
 The Trustee may fix a record date and payment date for any payment to Securityholders pursuant to this Section 6.10. At
least 15 days before such record date, the Trustee shall mail to each Securityholder and the Company a notice that states the record date, the payment date and the amount to be paid. 
  
 Section 6.11     Undertaking for Costs. In any suit for the enforcement of any right or remedy
under this Indenture or in any suit against the Trustee for any action taken or omitted by it as Trustee, a court in its discretion may require the filing by any party litigant (other than the Trustee) in the suit of an undertaking to pay the costs
of the suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’ fees and expenses, against any party litigant in the suit, having due regard to the merits and good faith of the claims or defenses made
by the party litigant. This Section 6.11 does not apply to a suit by the Trustee, a suit by a Holder pursuant to Section 6.7 or a suit by Holders of more than 10% in aggregate Principal Amount of the Securities at the time outstanding. This Section
6.11 shall be in lieu of Section 315(e) of the TIA and such Section 315(e) is hereby expressly excluded from this Indenture, as permitted by the TIA. 
  
 Section 6.12     Waiver of Stay, Extension or Usury Laws. The Company covenants (to the extent that it may lawfully do so) that
it will not at any time insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay or extension law or any usury or other law wherever enacted, now or at any time hereafter in force, which would prohibit
or forgive the Company from paying all or any portion of any interest installment, the Principal Amount, Redemption Price, Purchase Price, Change in Control Purchase Price or interest, if any, due on overdue amounts in respect of the securities, as
contemplated herein, or which may affect the covenants or the performance of this Indenture; and the Company (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law and covenants that it will not
hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer and permit the execution of every such power as though no such law had been enacted. 
  

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 ARTICLE VII 
  
 TRUSTEE 
  
 Section 7.1     Duties of Trustee. 
  
 (a)     If an Event of Default has occurred and is continuing, the Trustee shall exercise the rights and powers vested in it by this
Indenture and use the same degree of care and skill in its exercise as a prudent person would exercise or use under the circumstances in the conduct of such person’s own affairs. 
  
 (b)     Except during the continuance of an Event of Default: 
  
 (1)     the Trustee need perform only those duties that
are specifically set forth in this Indenture and no others; and 
  
 (2)     in the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the
Trustee and conforming to the requirements of this Indenture, but in case of any such certificates or opinions which by any provision hereof are specifically required to be furnished to the Trustee, the Trustee shall examine the certificates and
opinions to determine whether or not they conform to the requirements of this Indenture, but need not confirm or investigate the accuracy of mathematical calculations or other facts stated therein. This Section 7.1(b) shall be in lieu of Section
3.15(a) of the TIA and such Section 315(a) is hereby expressly excluded from this Indenture, as permitted by the TIA. 
  
 (c)     The Trustee may not be relieved from liability for its own negligent action, its own negligent failure to act or its own
willful misconduct, except that: 
  
 (1)    
this paragraph (c) does not limit the effect of paragraph (b) of this Section 7.1; 
  
 (2)     the Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer unless it is proved that the Trustee was negligent in ascertaining the pertinent facts;
and 
  
 (3)     the Trustee shall not be
liable with respect to any action it takes or omits to take in good faith in accordance with a direction received by it pursuant to Section 6.5. 
  
 Subparagraphs (c)(1), (2) and (3) shall be in lieu of Sections 315(d)(1), 315(d)(2) and 315(d)(3) of the TIA and such Sections 315(d)(1), 315(d)(2) and 315(d)(3) are
hereby expressly excluded from this Indenture, as permitted by the TIA. 
  
 (d)     Every provision of this Indenture that in any way relates to the Trustee is subject to paragraphs (a), (b), (c) and (e) of this Section 7.1. 
  

 38 

 (e)     The Trustee may refuse to perform any duty or exercise any right or power or
extend or risk its own funds or otherwise incur any financial liability unless it receives indemnity satisfactory to it against any loss, liability or expense. 
  

(f)     Money held by the Trustee in trust hereunder need not be segregated from other funds except to the extent required by law.
The Trustee (acting in any capacity hereunder) shall be under no liability for interest on any money received by it hereunder unless otherwise agreed in writing with the Company. 
  
 Section 7.2     Rights of Trustee. Subject to its duties and responsibilities under the TIA,

  
 (a)     the Trustee may conclusively rely
and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or
document believed by it to be genuine and to have been signed or presented by the proper party or parties; 
  
 (b)     whenever in the administration of this Indenture the Trustee shall deem it desirable that a matter be proved or established
prior to taking, suffering or omitting any action hereunder, the Trustee (unless other evidence be herein specifically prescribed) may, in the absence of bad faith on its part, conclusively rely upon an Officers’ Certificate; 
  
 (c)     the Trustee may execute any of the trusts or
powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys and the Trustee shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed with due care by it
hereunder; 
  
 (d)     the Trustee shall not
be liable for any action taken, suffered, or omitted to be taken by it in good faith which it believes to be authorized or within its rights or powers conferred under this Indenture; 
  
 (e)     the Trustee may consult with counsel selected by it and any advice or Opinion of Counsel shall
be full and complete authorization and protection in respect of any action taken or suffered or omitted by it hereunder in good faith and in accordance with such advice or Opinion of Counsel. 
  
 (f)     the Trustee shall be under no obligation to
exercise any of the rights or powers vested in it by this Indenture at the request, order or direction of any of the Holders, pursuant to the provisions of this Indenture, unless such Holders shall have offered to the Trustee security or indemnity
satisfactory to it against the costs, expenses and liabilities which may be incurred therein or thereby. 
  
 (g)     any request or direction of the Company mentioned herein shall be sufficiently evidenced by a Company Request or Company Order
and any resolution of the Board of Directors may be sufficiently evidenced by a Board Resolution; 
  

 39 

 (h)     the Trustee shall not be bound to make any investigation into the facts or
matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document, but the Trustee, in its discretion,
may make such further inquiry or investigation into such facts or matters as it may see fit, and, if the Trustee shall determine to make such further inquiry or investigation, it shall be entitled to examine the books, records and premises of the
Company, personally or by agent or attorney at the sole cost of the Company and shall incur no liability or additional liability of any kind by reason of such inquiry or investigation; 
  
 (i)     the Trustee shall not be deemed to have notice of any Default or Event of Default unless a
Responsible Officer of the Trustee has actual knowledge thereof or unless written notice of any event which is in fact such a default is received by the Trustee at the Corporate Trust Office of the Trustee, and such notice references the Securities
and this Indenture; 
  
 (j)     the rights,
privileges, protections, immunities and benefits given to the Trustee, including its right to be indemnified, are extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder, and to each agent, custodian and other
Person employed to act hereunder; and 
  
 (k)     the Trustee may request that the Company deliver an Officers’ Certificate setting forth the names of individuals and/or titles of officers authorized at such time to take specified actions pursuant to this
Indenture, which Officers’ Certificate may be signed by any person authorized to sign an Officers’ Certificate, including any person specified as so authorized in any such certificate previously delivered and not superseded. 
  
 Section 7.3     Individual Rights of Trustee. The
Trustee in its individual or any other capacity may become the owner or pledgee of Securities and may otherwise deal with the Company or its Affiliates with the same rights it would have if it were not Trustee. Any Paying Agent, Registrar,
Conversion Agent or co-registrar may do the same with like rights. However, the Trustee must comply with Sections 7.10 and 7.11. 
  
 Section 7.4     Trustee’s Disclaimer. The Trustee makes no representation as to the validity or adequacy of this Indenture
or the Securities, it shall not be accountable for the Company’s use or application of the proceeds from the Securities, it shall not be responsible for any statement in the registration statement for the Securities under the Securities Act or
in any offering document for the Securities, the Indenture or the Securities (other than its certificate of authentication), or the determination as to which beneficial owners are entitled to receive any notices hereunder. 
  
 Section 7.5     Notice of Defaults. If a Default
occurs and if it is known to the Trustee, the Trustee shall give to each Securityholder notice of the Default within 90 days after it occurs or, if later, within 15 days after it is known to the Trustee, unless 
  

 40 

 such Default shall have been cured or waived before the giving of such notice. Notwithstanding the preceding sentence,
except in the case of a Default described in Sections 6.1(1) and 6.1(2), the Trustee may withhold the notice if and so long as a committee of its Responsible Officers in good faith determines that withholding the notice is in the interests of
Securityholders. The second sentence of this Section 7.5 shall be in lieu of the proviso to Section 315(b) of the TIA and such proviso is hereby expressly excluded from this Indenture, as permitted by the TIA. The Trustee shall not be deemed to have
knowledge of a Default unless a Responsible Officer of the Trustee has received written notice of such Default. 
  
 Section 7.6     Reports by Trustee to Holders. Within 60 days after each May 15 beginning with the May 15 following the date of
this Indenture, the Trustee shall mail to each Securityholder a brief report dated as of such May 15 that complies with TIA Section 313(a), if required by such Section 313(a). The Trustee also shall comply with TIA Section 313(b). 
  
 A copy of each report at the time of its mailing to Securityholders shall be
filed with the SEC and each securities exchange, if any, on which the Securities are listed. The Company agrees to notify the Trustee promptly whenever the Securities become listed on any securities exchange and of any delisting thereof. 

 
 Section 7.7     Compensation and Indemnity. The
Company agrees: 
  
 (a)     to pay to the
Trustee from time to time such compensation as the Company and the Trustee shall from time to time agree in writing for all services rendered by it hereunder (which compensation shall not be limited (to the extent permitted by law) by any provision
of law in regard to the compensation of a trustee of an express trust); 
  
 (b)     to reimburse the Trustee upon its request for all reasonable out-of-pocket expenses, disbursements and advances incurred or made by the Trustee in accordance with any provision of this Indenture (including the
reasonable compensation and the expenses, advances and disbursements of its agents and counsel), except any such expense, disbursement or advance as may be attributable to its negligence, bad faith or willful misconduct; and 
  
 (c)     to indemnify the Trustee or any predecessor
Trustee and their agents for, and to hold them harmless against, any loss, damage, claim, liability, cost or expense (including attorney’s fees and taxes (other than taxes based upon, measured by or determined by the income of the Trustee))
incurred without negligence or bad faith on its part, arising out of or in connection with the acceptance or administration of this trust, including the costs and expenses of defending itself against any claim (whether asserted by the Company or any
Holder or any other Person) or liability in connection with the exercise or performance of any of its powers or duties hereunder. 
  

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 To secure the Company’s payment obligations in this Section 7.7, the Trustee shall have a lien prior
to the Securities on all money or property held or collected by the Trustee, except that held in trust to pay interest installments, the Principal Amount, Redemption Price, Purchase Price, Change in Control Purchase Price or interest, if any, due on
overdue amounts, as the case may be, in respect of any Securities. 
  
 The Company’s payment obligations pursuant to this Section 7.7 shall survive the discharge of this Indenture. When the Trustee incurs expenses after the occurrence of a Default specified in Section 6.1(6), the expenses, including the
reasonable charges and expenses of its counsel, are intended to constitute expenses of administration under any bankruptcy law. 
  
 Section 7.8     Replacement of Trustee. The Trustee may resign by so notifying the Company; provided, however, that no such
resignation shall be effective until a successor Trustee has accepted its appointment pursuant to this Section 7.8. The Holders of a majority in aggregate Principal Amount of the Securities at the time outstanding may remove the Trustee by so
notifying the Trustee and the Company. The Company shall remove the Trustee if: 
  
 (1)     the Trustee fails to comply with Section 7.10; 
  
 (2)     the Trustee is adjudged bankrupt or insolvent; 
  
 (3)     a receiver or public officer takes charge of the Trustee or its property; or 
  
 (4)     the Trustee otherwise becomes incapable of
acting. 
  
 If the Trustee resigns or is removed or if a vacancy
exists in the office of Trustee for any reason, the Company shall promptly appoint, by resolution of its Board of Directors, a successor Trustee. 
  
 A successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Company satisfactory in form and substance to
the retiring Trustee and the Company. Thereupon the resignation or removal of the retiring Trustee shall become effective, and the successor Trustee shall have all the rights, powers and duties of the Trustee under this Indenture. The successor
Trustee shall mail a notice of its succession to Securityholders. The retiring Trustee shall promptly transfer all property held by it as Trustee to the successor Trustee, subject to the lien provided for in Section 7.7. 
  
 If a successor Trustee does not take office within 30 days after the retiring
Trustee resigns or is removed, the retiring Trustee, the Company or the Holders of a majority in aggregate Principal Amount of the Securities at the time outstanding may petition any court of competent jurisdiction at the expense of the Company for
the appointment of a successor Trustee. 
  

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 If the Trustee fails to comply with Section 7.10, any Securityholder may petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor Trustee. 
  
 Section 7.9     Successor Trustee by Merger. If the Trustee consolidates with, merges or converts into, or transfers all or substantially all its corporate trust business or assets
(including the administration of the trust created by this Indenture) to, another corporation, the resulting, surviving or transferee corporation without any further act shall be the successor Trustee. 
  
 Section 7.10     Eligibility; Disqualification.
The Trustee shall at all times satisfy the requirements of TIA Sections 310(a)(1) and 310(b). The Trustee (or its parent holding company) shall have a combined capital and surplus of at least $50,000,000 as set forth in its most recent published
annual report of condition. Nothing herein contained shall prevent the Trustee from filing with the SEC the application referred to in the penultimate paragraph of TIA Section 310(b). 
  
 Section 7.11     Preferential Collection of Claims Against Company. The Trustee shall comply with
TIA Section 311(a), excluding any creditor relationship listed in TIA Section 311(b). A Trustee who has resigned or been removed shall be subject to TIA Section 311(a) to the extent indicated therein. 
  
 ARTICLE VIII 
  
 DISCHARGE OF INDENTURE 
  
 Section 8.1     Discharge of Liability on Securities. When (i) the Company delivers to the Trustee all outstanding Securities
(other than Securities replaced pursuant to Section 2.7) for cancellation or (ii) all outstanding Securities have become due and payable and the Company deposits with the Trustee cash sufficient to pay all amounts due and owing on all outstanding
Securities (other than Securities replaced pursuant to Section 2.7), and if in either case the Company pays all other sums payable hereunder by the Company, then this Indenture shall, subject to Section 7.7, cease to be of further effect. The
Trustee shall join in the execution of a document prepared by the Company acknowledging satisfaction and discharge of this Indenture on demand of the Company accompanied by an Officers’ Certificate and Opinion of Counsel and at the cost and
expense of the Company. 
  
 Section 8.2    
Repayment to the Company. The Trustee and the Paying Agent shall return to the Company upon written request any money held by them for the payment of any amount with respect to the Securities that remains unclaimed for two years, subject to
applicable unclaimed property law. After return to the Company, as applicable, Holders entitled to the money must look to the Company for payment as general creditors unless an applicable abandoned property law designates another person and the
Trustee and the Paying Agent shall have no further liability to the Securityholders with respect to such money or securities for that period commencing after the return thereof. 
  

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 ARTICLE IX 
  
 AMENDMENTS 
  
 Section 9.1     Without Consent of Holders. The Company and the Trustee may amend this Indenture or the Securities without the
consent of any Securityholder, so long as such changes, other than those in clause (2), do not materially and adversely affect the interests of the Securityholder: 
  
 (1)     to cure any ambiguity, omission, defect or inconsistency; 
  
 (2)     to comply with Article 5 or Section 10.12;

  
 (3)     to secure the Company’s
obligations under the Securities and this Indenture; 
  
 (4)     to add to the Company’s covenants for the benefit of the Securityholders or to surrender any right or power conferred upon the Company; or 
  
 (5)     to make any change necessary for the registration of the Securities under the Securities Act or
to comply with the TIA, or any amendment thereto, or to comply with any requirement of the SEC in connection with the qualification of the Indenture under the TIA. 
  
 Section 9.2     With Consent of Holders. With the written consent of the Holders of at least a
majority in aggregate Principal Amount of the Securities at the time outstanding, the Company and the Trustee may amend this Indenture or the Securities. However, without the consent of each Securityholder affected, an amendment to this Indenture or
the Securities may not: 
  
 (1)     change the
record or payment dates for interest installments, or reduce the rate of interest referred to in paragraph 1 of the Securities, or extend the time for payment of interest on any Security; 
  
 (2)     reduce the Principal Amount or extend the Stated Maturity of any Security; 
  
 (3)     reduce the Redemption Price, Purchase Price or
Change in Control Purchase Price of any Security; 
  
 (4)     make any Security payable in money or securities other than that stated in the Security; 
  
 (5)     make any change in Section 6.4, Section 6.7 or this Section 9.2, except to increase any percentage set forth therein;

  
 (6)     make any change that adversely
affects the right to convert any Security; 
  

 44 

 (7)     make any change that adversely affects the right to require the Company to
purchase the Securities in accordance with the terms thereof and this Indenture; 
  
 (8)     impair a Holder’s right to institute suit for the enforcement of any payment with respect to, or conversion of, the Securities; or 
  
 (9)     reduce the percentage of the aggregate principal
amount of the Securities necessary to waive or amend provisions of the Indenture or the Securities. 
  
 It shall not be necessary for the consent of the Holders under this Section 9.2 to approve the particular form of any proposed amendment, but it shall be
sufficient if such consent approves the substance thereof. 
  
 After an amendment under this Section 9.2 becomes effective, the Company shall mail to each Holder a notice briefly describing the amendment. 
  
 Section 9.3     Compliance with Trust Indenture Act. Every supplemental indenture executed pursuant to this Article shall
comply with the TIA. 
  
 Section 9.4    
Revocation and Effect of Consents, Waivers and Actions. Until an amendment, waiver or other action by Holders becomes effective, a consent thereto by a Holder of a Security hereunder is a continuing consent by the Holder and every subsequent
Holder of that Security or portion of the Security that evidences the same obligation as the consenting Holder’s Security, even if notation of the consent, waiver or action is not made on the Security. However, any such Holder or subsequent
Holder may revoke the consent, waiver or action as to such Holder’s Security or portion of the Security if the Trustee receives the notice of revocation before the date the amendment, waiver or action becomes effective. After an amendment,
waiver or action becomes effective, it shall bind every Securityholder. 
  
 Section 9.5     Notation on or Exchange of Securities. Securities authenticated and delivered after the execution of any supplemental indenture pursuant to this Article 9 may, and shall if required by the Trustee,
bear a notation in form approved by the Trustee as to any matter provided for in such supplemental indenture. If the Company shall so determine, new Securities so modified as to conform, in the opinion of the Trustee and the Board of Directors of
the Company, to any such supplemental indenture may be prepared and executed by the Company and authenticated and delivered by the Trustee in exchange for outstanding Securities. 
  
 Section 9.6     Trustee to Sign Supplemental Indentures. The Trustee shall sign any supplemental
indenture authorized pursuant to this Article 9 if the amendment contained therein does not adversely affect the rights, duties, liabilities or immunities of the Trustee. If it does, the Trustee may, but need not, sign such supplemental indenture.
In signing such supplemental indenture the Trustee shall receive, and (subject to the provisions of Section 7.1) shall be fully protected in relying upon, an Officers’ Certificate and an Opinion of Counsel stating that such amendment is
authorized or permitted by this Indenture. 
  

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 Section 9.7     Effect of Supplemental Indentures. Upon the execution of any
supplemental indenture under this Article, this Indenture shall be modified in accordance therewith, and such supplemental indenture shall form a part of this Indenture for all purposes; and every Holder of Securities theretofore or thereafter
authenticated and delivered hereunder shall be bound thereby. 
  
 ARTICLE X 
  
 CONVERSIONS 
  
 Section 10.1     Conversion Privilege. 

 
 (a)     Subject to the further provisions of this
Article 10 and paragraph 8 of the Securities, a Holder of a Security may surrender for conversion on any Business Day the principal amount of such Security (or any portion thereof equal to $1,000 or any integral multiple of $1,000 in excess thereof)
if the average of the Closing Prices of the Common Shares for the immediately preceding twenty consecutive trading day period is more than 125% of the average of the Effective Conversion Prices of the Common Shares during such twenty trading day
period (the “Closing Price Condition”), subject to the exceptions provided below; provided, however, that, if such Security is called for redemption or submitted or presented for purchase pursuant to Article 3, such conversion right
shall terminate at the close of business on the Business Day immediately preceding the Redemption Date or Change in Control Purchase Date, as the case may be, for such Security or such earlier date as the Holder presents such Security for redemption
or for purchase (unless the Company shall default in making the redemption payment or Change in Control Purchase Price payment when due, in which case the conversion right shall not apply following the close of business on the date such default is
cured and such Security is redeemed or purchased, as the case may be). The “Conversion Price” at any particular time is the Conversion Price determined by dividing $1,000 by the then-applicable Conversion Rate. The initial Conversion Price
and the Conversion Rate shall be that set forth in paragraph 8 of the Securities. 
  
 The “Effective Conversion Price” per Common Share means (1) until May 1, 2009, $1,000 principal amount of Securities and (2) thereafter, the Principal Amount of, plus accrued and unpaid regular interest on,
$1,000 principal amount of Securities, in each case divided by the Conversion Rate. 
  

 46 

 (b)     Even if the Closing Price Condition is not satisfied, 
  
 (1)     if during any five consecutive trading day
period, the average of the Sale Prices for the Securities for that five consecutive trading day period was less than 96% of the average of the Conversion Values (as defined below) for the Securities during that period, a holder may surrender
Securities for conversion at any time during the following five business days; 
  
 The Conversion Agent will determine whether the Securities are convertible pursuant to this Section 10.1(b)(1) only after being instructed to do so by the Company. The Company has no obligation to so instruct the
Conversion Agent unless a Holder provides the Company with reasonable evidence that the provisions of this Section 10.1(b)(1) have been satisfied. If such reasonable evidence is so presented, the Company shall instruct the Conversion Agent to
determine the Sale Prices and Conversion Values for the applicable period. 
  
 “Sale Price” of the Securities on any date of determination means, on any date of determination, the average of the secondary bid quotations per Security obtained by the Conversion Agent for $5.0 million
aggregate principal amount of Securities at approximately 3:30 p.m., New York City time, on such determination date from three independent nationally recognized securities dealers the Company Selects, provided that if: 
  
 (i)     three such bids cannot reasonably
be obtained by the Conversion Agent, but two such bids can reasonably be obtained, then the average of the two bids shall be used; and 
  
 (ii)     only one such bid can reasonably be obtained by the Conversion Agent, that one bid shall be used. 

 
 If the Conversion Agent cannot reasonably obtain at least one such bid, or
if, in the Company’s reasonable judgment, the bid quotations are not indicative of the secondary market value of the Securities, then the “Sale Price” of the Securities on any date of determination shall be deemed to be less than 96%
of the Conversion Values of the Securities during that period. 
  
 (2)     if the credit ratings on the Securities are downgraded by Moody’s Investors Service, Inc. to or below “Ba2,” and by Standard and Poor’s Rating Services to or below “BB+,”
respectively, then, so long as such downgrades are in effect, Holders may surrender their Securities for conversion into Common Shares; 
  

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 (3)     a Holder may surrender for conversion a Security that has been called for
redemption pursuant to Section 3.1 at any time prior to close of business on the business day prior to the Redemption Date; 
  
 (4)     in the event that the Company declares: 
  
 (A)     a dividend or distribution of any rights or warrants to all holders of Common Shares entitling
them to subscribe for or purchase, for a period expiring within 60 days, Common Shares at a price per share less than the Current Market Price per share, or 
  
 (B)     a dividend or distribution of cash, debt securities (or other evidences of indebtedness), or other assets (excluding dividends
or distributions for which Conversion Rate adjustment is required to be made under Section 10.6(a) or Section 10.6(b) below), where the fair market value of such dividend or distribution, together with all other such dividends and distributions
within the preceding twelve months, has a per share value exceeding 10% of the Current Market Price of the Common Shares as of the trading day immediately preceding the declaration date for such dividend or distribution, then the Securities may be
surrendered for conversion beginning on the date the Company gives notice to the Holders of such right, which shall not be less than 20 days prior to the ex-dividend date for such dividend or distribution and Securities may be surrendered for
conversion at any time until the earlier of the close of business on the Business Day prior to the ex-dividend date of our announcement that such distribution will not take place. No adjustment to the ability of the holders to convert will be made
if the holders are entitled to participate in the distribution without conversion, and 
  
 (5)     in the event that the Company is a party to a consolidation, merger, transfer or lease of all or substantially all of its assets or a merger that reclassifies or changes the Common Shares
pursuant to which our common stock would be converted into cash, securities or other assets, the Securities may be surrendered for conversion at any time from or after the date which is 15 days prior to the anticipated effective time of the
transaction until 15 days after the actual date of such transaction. 
  
 (c)     The “Conversion Rate” is 19.5086 (subject to adjustment as provided in Section 10.6). Upon surrender for conversion a Holder is entitled to receive, per $1,000 principal amount of Securities
being converted, cash and, if applicable, Common Shares, with an aggregate value equal to the sum of the Daily Conversion Values (as defined below) calculated for each of the five trading days immediately following the Conversion Date (as defined
below) (each such trading day, a “Measurement Day”). The “Daily Conversion Value” for each Measurement Day is equal to one-fifth of the product of the Conversion Rate in effect on such Measurement Day multiplied by the
Volume Weighted Average Price (as defined below) per Common Share on such Measurement Day. 
  

 48 

 Upon surrender for conversion a Holder is entitled to receive per $1,000 principal amount of Securities
being converted for each of the five Measurement Days: 
  
 (1)     if the Daily Conversion Value for such Measurement Day exceeds $200 (representing one-fifth of the principal amount), (a) a cash payment of $200 and (b) the remaining Daily Conversion Value in excess of $200 (the
“Daily Net Share Settlement Value”) in Common Shares; or 
  
 (2)     if the Daily Conversion Value for such Measurement Day is less than or equal to $200, a cash payment equal to the Daily Conversion Value. 
  
 The number of Common Shares to be delivered under clause (1) above for any
Measurement Day will be determined by dividing the Daily Net Share Settlement Value for such Measurement Day by the Volume Weighted Average Price per Common Share on such Measurement Day. 
  
 The “Volume Weighted Average Price” per Common Share on any Measurement Day will be the volume weighted average
price on the New York Stock Exchange or, if the Common Shares are not listed on the New York Stock Exchange, on the principal exchange on which the Common Shares are then listed or traded, from 9:30 a.m. to 4:00 p.m. (New York City time) on that
trading day as displayed by Bloomberg (Bloomberg key-strokes: RBK Equity VAP) (or if such Volume Weighted Average Price is not available, the market value of one Common Share on such Measurement Day as the board of directors of the Company
determines in good faith using a volume weighted method). 
  
 Except as provided in the next paragraph, the cash and any Common Shares (including cash in lieu of fractional shares) due upon conversion of the Securities will be delivered through the Conversion Agent on the third trading day following
the last Measurement Day applicable to the Securities being converted (the “Settlement Date”). 
  
 If a Holder surrenders Securities for conversion on or after April 17, 2024, the conversion date will be deemed to be May 1, 2024. Upon such conversion, a
Holder will receive (i) the sum of the Daily Conversion Values calculated for the five trading days ending on the trading day prior to the Stated Maturity of the Securities and (ii) accrued interest up to but excluding the Stated Maturity of the
Securities. A Holder is entitled to receive cash and Common Shares due pursuant to this paragraph upon conversion of Securities on the Stated Maturity of the Securities. 
  
 Except as provided above with respect to Securities surrendered for conversion on or after April 17, 2024, Holders will not
receive any cash payment representing accrued and unpaid interest, upon conversion of a Security. Accrued and unpaid interest on such Securities shall be deemed paid in full rather than canceled, extinguished or forfeited. The Company will not
adjust the Conversion Rate to account for accrued interest, if any. 
  
 A Holder may convert a portion of the Principal Amount of a Security if the portion is $1,000 or an integral multiple of $1,000. Provisions of this Indenture that apply to conversion of all of a Security also apply to conversion of a
portion of a Security. 
  
 A Holder is not entitled to any rights
of a holder of Common Shares unless and until such Holder has converted its Securities to Common Shares, and only to the extent such Securities are deemed to have been converted into Common Shares pursuant to this Article 10. 
  
 Section 10.2     Conversion Procedure. To convert
a Security, a Holder must satisfy the requirements in paragraph 8 of the Securities. The first Business Day on which the Holder satisfies all those requirements is the conversion date (the “Conversion Date”). 
  
 On the Settlement Date, the Company shall deliver to the Holder, through the
Conversion Agent, cash and a certificate for the number of full Common Shares, if any, deliverable upon the conversion or exchange and cash in lieu of any fractional share 
  

 49 

 determined pursuant to Section 10.3. The person in whose name the certificate is registered shall be treated as a
shareholder of record on and after the next Business Day following the Conversion Date. Upon conversion of a Security, such person shall no longer be a Holder of such Security. No payment or adjustment will be made for dividends on, or other
distributions with respect to, any Common Shares except as provided in this Article 10. 
  
 If any Holder surrenders a Security for conversion (in whole or in part) during the period from the close of business on any regular record date for the payment of an installment of interest to the opening of business
on the next succeeding interest payment date, then such Security so surrendered shall be accompanied by payment in funds acceptable to the Company of an amount equal to the interest payable on such interest payment date on the Principal Amount of
such Security then being converted, and such interest installment shall be payable to such registered Holder notwithstanding the conversion of the Security, subject to the provisions of this Indenture relating to the payment of defaulted interest by
the Company. If the Company defaults in the payment of interest payable on such interest payment date, the Company shall promptly repay such funds to such Holder. 
  
 Nothing in this Section 10.2 shall affect the right of a Holder in whose name any Security is registered at the close of
business on a record date to receive the interest payable on such Security on the related interest payment date in accordance with the terms of this Indenture and the Securities. If the Holder converts more than one Security at the same time, the
amount of cash and the number of Common Shares, if any, deliverable upon the conversion shall be based on the total Principal Amount of the Securities converted. 
  
 If the last day on which a Security may be converted is a Legal Holiday, the Security may be surrendered on the next
succeeding day that is not a Legal Holiday. 
  
 Upon surrender of
a Security that is converted in part, the Company shall execute and the Trustee shall authenticate and deliver to the Holder, a new Security in an authorized denomination equal in Principal Amount to the unconverted portion of the Security
surrendered. 
  
 A Security in respect of which a Holder has
delivered a Purchase Notice pursuant to Section 3.7 or a Change in Control Purchase Notice pursuant to Section 3.8 exercising the option of such Holder to require the Company to purchase such Security may be converted only if such Purchase Notice or
Change in Control Purchase Notice is withdrawn by a written notice of withdrawal complying in all respects with each of the provisions of this Indenture relating to such notice and delivered to the Paying Agent prior to the close of business on the
Purchase Date or Change in Control Purchase Date, as the case may be. 
  
 Notwithstanding the foregoing in this Section 10.2, the Company shall have the option, exercisable at any time or from time to time by an instrument in writing signed by the Company and provided to the Conversion Agent, of designating a
financial institution 
  

 50 

 (the “Designated Institution”) to which the Conversion Agent will initially offer any Security
surrendered for conversion by a Holder for exchange in lieu of conversion. In such event, when a Holder surrenders any Security for conversion, the Conversion Agent will first offer on behalf of such Holder such Security to the Designated
Institution for exchange in lieu of conversion. In order to accept any such Security, the Designated Institution must agree to deliver to the Conversion Agent as soon as practicable but in no event later than one trading day following the last
Measurement Day applicable to such Security the amount of cash and, if applicable, Common Shares equal to the full amount of cash (including cash in lieu of fractional shares) and, if applicable, Common Shares that would have otherwise been due upon
conversion of such Security under this Article X. The Conversion Agent will then deliver such amount of cash and, if applicable, Common Shares to such surrendering Holder on the Settlement Date. The Company’s designation of the Designated
Institution will not require the Designated Institution to accept any Security offered by the Conversion Agent pursuant to this paragraph. If the Designated Institution declines to accept such Security in whole or in part, such Security will be
converted on the terms provided for in this Indenture. If the Designated Institution agrees to accept any such Security for exchange but does not timely deliver the appropriate cash and, if applicable Common Shares, such Security will be converted
on the terms provided for in this Indenture. Any Security accepted for exchange by the Designated Institution pursuant to this paragraph will remain outstanding. 
  
 Section 10.3     Fractional Shares. Securityholders will not receive a fractional share upon
conversion of a Security. A Holder that would otherwise be entitled to a fractional share for any Measurement Day will in lieu thereof receive cash equal to the product of such fraction (determined to the nearest 1/1,000th of a share) multiplied by
the Volume Weighted Average Price per Common Share on such Measurement Day. 
  
 Section 10.4     Taxes on Conversion. If a Holder submits a Security for conversion, the Company shall pay any documentary, stamp or similar issue or transfer tax due on the issue of Common
Shares upon the conversion. However, the Holder shall pay any such tax which is due because the Holder requests the Common Shares to be delivered in a name other than the Holder’s name. The Conversion Agent may refuse to deliver the
certificates representing the Common Shares being delivered in a name other than the Holder’s name until the Conversion Agent receives a sum sufficient to pay any tax which will be due because the shares are to be delivered in a name other than
the Holder’s name. Nothing herein shall preclude any tax withholding required by law or regulations. 
  
 Section 10.5     Company to Provide Stock. All Common Shares delivered upon conversion of the Securities shall be duly and
validly issued and fully paid and nonassessable, and shall be free from preemptive rights and free of any lien or adverse claim. The Company will endeavor promptly to comply with all federal and state securities laws regulating the offer and
delivery of Common Shares upon conversion of Securities, if any, and will list or cause to have quoted such Common Shares on each national securities exchange or in the over-the-counter market or such other market on which the Common Shares are then
listed or quoted. 
  

 51 

 Section 10.6     Adjustment of Conversion Rate. The Conversion Rate shall be
adjusted from time to time by the Company as follows: 
  
 (a)     In case the Company shall (1) pay a dividend on its Common Shares in Common Shares, (2) make a distribution on its Common Shares in Common Shares, (3) subdivide its outstanding Common Shares into a greater number
of shares, or (4) combine its outstanding Common Shares into a smaller number of shares, the Conversion Rate in effect immediately prior thereto shall be adjusted so that the same shall equal the rate determined by multiplying the Conversion Rate in
effect immediately prior to such event by a fraction of which the numerator shall be the number of Common Shares outstanding immediately after such event and the denominator of which shall be the number of Common Shares outstanding immediately prior
to such event. An adjustment made pursuant to this subsection (a) shall become effective immediately after the record date in the case of a dividend or distribution and shall become effective immediately after the effective date in the case of
subdivision or combination. 
  
 (b)     In
case the Company shall issue rights or warrants (other than pursuant to a Rights Plan) to all or substantially all holders of its Common Shares entitling them (for a period commencing no earlier than the record date described below and expiring not
more than 60 days after such record date) to subscribe for or purchase Common Shares (or securities convertible into Common Shares) at a price per share (or having a conversion price per share) less than the Closing Price per share of Common Shares
on the Business Day immediately prior to the date of announcement of such issuance, the Conversion Rate in effect shall be adjusted so that the same shall equal the rate determined by multiplying the Conversion Rate in effect immediately prior to
such announcement by a fraction of which the numerator shall be the number of Common Shares outstanding at the close of business on the date of announcement plus the number of additional Common Shares offered (or into which the convertible
securities so offered are convertible), and the denominator of which shall be the number of Common Shares outstanding at the close of business on the date of announcement plus the number of shares which the aggregate offering price of the total
number of Common Shares so offered (or the aggregate conversion price of the convertible securities so offered, which shall be determined by multiplying the number of Common Shares issuable upon conversion of such convertible securities by the
conversion price per Common Share pursuant to the terms of such convertible securities) would purchase at the Current Market Price per Common Share on the Business Day immediately preceding the date of announcement of such issuance. Such adjustment
shall be made successively whenever any such rights or warrants are issued, and shall become effective on the day following the date of announcement of such issuance. If at the end of the period during which such rights or warrants are exercisable
not all rights or warrants shall have been exercised, the adjusted Conversion Rate shall be immediately readjusted to what it would have been based upon the number of additional Common Shares actually issued (or the number of Common Shares issuable
upon conversion of convertible securities actually issued). 
  
 (c)     In case the Company shall distribute to all or substantially all holders of its Common Shares any shares of Capital Stock of the Company (other than Common Shares), Extraordinary Cash Dividends or any evidences
of indebtedness or 
  

 52 

 other non-cash assets (including securities of any person other than the Company but excluding dividends or distributions
referred to in subsection (a) of this Section 10.6), or shall distribute to all or substantially all holders of its Common Shares rights or warrants to subscribe for or purchase any of its securities (excluding those rights and warrants referred to
in subsection (b) of this Section 10.6 and also excluding the distribution of rights to all holders of Common Shares pursuant to the adoption of a Rights Plan or the detachment of such rights under the terms of such Rights Plan), then in each such
case the Conversion Rate shall be adjusted so that the same shall equal the rate determined by multiplying the Conversion Rate in effect immediately prior to such distribution by a fraction of which the numerator shall be the Current Market Price
per Common Share on the record date mentioned below and the denominator shall be the Current Market Price per Common Share on such record date less the fair market value on such record date (as determined by the Board of Directors, whose
determination shall be conclusive evidence of such fair market value and which shall be evidenced by an Officers’ Certificate delivered to the Trustee) of the portion of the Capital Stock, evidences of indebtedness or other non-cash assets so
distributed or of such rights or warrants applicable to one Common Share (determined on the basis of the number of Common Shares outstanding on the record date). Such adjustment shall be made successively whenever any such distribution is made and
shall become effective immediately after the record date for the determination of shareholders entitled to receive such distribution. 
  
 In the event the then fair market value (as so determined) of the portion of the Capital Stock, evidences of indebtedness or other non-cash assets so
distributed or of such rights or warrants applicable to one Common Share is equal to or greater than the Current Market Price per Common Share on such record date, in lieu of the foregoing adjustment, adequate provision shall be made so that each
holder of a Security shall have the right to receive upon conversion the amount of Capital Stock, evidences of indebtedness or other non-cash assets so distributed or of such rights or warrants such holder would have received had such holder
converted each Security on such record date. In the event that such dividend or distribution is not so paid or made, the Conversion Rate shall again be adjusted to be the Conversion Rate which would then be in effect if such dividend or distribution
had not been declared. If the Board of Directors determines the fair market value of any distribution for purposes of this Section 10.6 by reference to the actual or when issued trading market for any securities, it must in doing so consider the
prices in such market over the same period used in computing the Current Market Price of the Common Shares. 
  
 Upon conversion of the Securities into Common Shares, to the extent that a Rights Plan is in effect upon such conversion, the holders of Securities will
receive, in addition to the Common Shares, the rights described therein (whether or not the rights have separated from the Common Shares at the time of conversion), subject to the limitations set forth in the Rights Plan. Any distribution of rights
or warrants pursuant to a Rights Plan complying with the requirements set forth in the immediately preceding sentence of this paragraph shall not constitute a distribution of rights or warrants pursuant to this Article 10. 
  

 53 

 Rights or warrants distributed by the Company to all holders of Common Shares entitling the holders
thereof to subscribe for or purchase shares of the Company’s Capital Stock (either initially or under certain circumstances), which rights or warrants, until the occurrence of a specified event or events (“Trigger Event”): (i)
are deemed to be transferred with such Common Shares; (ii) are not exercisable; and (iii) are also issued in respect of future issuances of Common Shares, shall be deemed not to have been distributed for purposes of this Section 10.6 (and no
adjustment to the Conversion Rate under this 10.6 will be required) until the occurrence of the earliest Trigger Event, whereupon such rights and warrants shall be deemed to have been distributed and an appropriate adjustment (if any is required) to
the Conversion Rate shall be made under this Section 10.6. If any such right or warrant, including any such existing rights or warrants distributed prior to the date of this Indenture, are subject to events, upon the occurrence of which such rights
or warrants become exercisable to purchase different securities, evidences of indebtedness or other assets, then the date of the occurrence of any and each such event shall be deemed to be the date of distribution and record date with respect to new
rights or warrants with such rights (and a termination or expiration of the existing rights or warrants without exercise by any of the holders thereof). In addition, in the event of any distribution (or deemed distribution) of rights or warrants, or
any Trigger Event or other event (of the type described in the preceding sentence) with respect thereto that was counted for purposes of calculating a distribution amount for which an adjustment to the Conversion Rate under this Section 10.6 was
made, (1) in the case of any such rights or warrants, all of which shall have been redeemed or repurchased without exercise by any holders thereof, the Conversion Rate shall be readjusted upon such final redemption or repurchase to give effect to
such distribution or Trigger Event, as the case may be, as though it were a cash distribution, equal to the per share redemption or repurchase price received by a holder or holders of Common Shares with respect to such rights or warrants (assuming
such holder had retained such rights or warrants), made to all holders of Common Shares as of the date of such redemption or repurchase, and (2) in the case of such rights or warrants which shall have expired or been terminated without exercise by
any holders thereof, the Conversion Rate shall be readjusted as if such rights and warrants had not been issued. 
  
 (d)     In case the Company shall distribute a Regular Cash Dividend (a “Triggering Distribution”) to all or
substantially all holders of its Common Shares in excess of $0.15 in the aggregate in any semi-annual period, the Conversion Rate shall be adjusted so that the same shall equal the rate determined by multiplying such Conversion Rate in effect on the
Business Day immediately preceding the record date for such Triggering Distribution by a fraction of which the numerator shall be the Current Market Price per share of the Common Shares on the determination date, and the denominator shall be the
Current Market Price per share of the Common Shares on the determination date less the aggregate amount by which the cash so distributed applicable to one share of the Common Shares (determined on the basis of the number of Common Shares outstanding
on the determination date) exceeds $0.15 in the aggregate in any semi-annual period, such increase to become effective immediately prior to the opening of business on the day following the date on which the Triggering Distribution is paid. It is
expressly understood that a stock buyback, repurchase or similar transaction or program shall in no event be considered a Triggering Distribution for purposes of this Section 10.6(d) or Section 10.6(e). 
  

 54 

 (e)     In case the Company or any of its Subsidiaries shall purchase any of the
Company’s Common Shares (excluding stock options) by means of a tender offer, other than an odd-lot offer by the Company or any of its Subsidiaries, then, effective immediately prior to the opening of business on the day after the last date
(the “Expiration Date”) tenders could have been made pursuant to such tender offer (as it may be amended) (the last time at which such tenders could have been made on the Expiration Date is hereinafter sometimes called the
“Expiration Time”), the Conversion Rate shall be increased so that the same shall equal the rate determined by multiplying the Conversion Rate in effect at the close of business on the Expiration Date by a fraction of which the
numerator shall be the sum of (x) the aggregate consideration (determined as set forth below) payable to stockholders of the Company based on the acceptance (up to any maximum specified in the terms of the tender offer) of all shares validly
tendered and not withdrawn as of the Expiration Time (the shares deemed so accepted, up to any such maximum, being referred to as the “Purchased Shares”) and (y) the product of the number of Common Shares outstanding (less any
Purchased Shares and excluding any shares held in the treasury of the Company) immediately after the Expiration Time and the Current Market Price per share of the Common Shares (as determined in accordance with subsection (f) of this Section 10.6),
and the denominator shall be the product of the number of Common Shares outstanding (including Purchased Shares but excluding any shares held in the treasury of the Company) immediately prior to the Expiration Time multiplied by the Current Market
Price per share of the Common Shares (as determined in accordance with subsection (f) of this Section 10.6). For purposes of this Section 10.6(e), the aggregate consideration in any such tender offer shall equal the sum of the aggregate amount of
cash consideration and the aggregate fair market value (as determined by the Board of Directors, whose determination shall be conclusive evidence thereof and which shall be evidenced by an Officers’ Certificate delivered to the Trustee) of any
other consideration payable in such tender offer. In the event that the Company is obligated to purchase shares pursuant to any such tender offer, but the Company is permanently prevented by applicable law from effecting any or all such purchases or
any or all such purchases are rescinded, the Conversion Rate shall again be adjusted to be the Conversion Rate which would have been in effect based upon the number of shares actually purchased. If the application of this Section 10.6(e) to any
tender offer would result in a decrease in the Conversion Rate, no adjustment shall be made for such tender offer under this Section 10.6(e). For purposes of this Section 10.6(e), the term “tender offer” shall mean and include both tender
offers and exchange offers, all references to “purchases” of shares in tender offers (and all similar references) shall mean and include both the purchase of shares in tender offers and the acquisition of shares pursuant to exchange
offers, and all references to “tendered shares” (and all similar references) shall mean and include shares tendered in both tender offers and exchange offers. 
  
 (f)     For the purpose of any computation under subsections (b), (c) and (d) of this Section 10.6, the
current market price (the “Current Market Price”) per share of Common Shares on any date shall be deemed to be the average of the daily Closing Prices for the five (5) consecutive Trading Days commencing six (6) Trading Days

  

 55 

 before the date on which Common Shares traded on such date settles regular-way on the record date with respect to
distributions, issuances or other events requiring such computation under subsection (b), (c) or (d) of this Section 10.6. For purposes of any computation under subsection (e) of this Section 10.6, the Current Market Price per share of Common Shares
shall be deemed to be the average of the daily Closing Prices for the five (5) consecutive Trading Days commencing on the Trading Day next succeeding the Expiration Date. 
  
 (g)     In any case in which this Section 10.6 shall require that an adjustment be made following a
record date, an announcement date or a determination date or Expiration Date, as the case may be, established for purposes of this Section 10.6, the Company may elect to defer (but only until five Business Days following the filing by the Company
with the Trustee of the certificate described in Section 10.9) issuing to the Holder of any Security converted after such record date or announcement date or determination date or Expiration Date the Common Shares and other Capital Stock of the
Company issuable upon such conversion over and above the Common Shares and other Capital Stock of the Company issuable upon such conversion only on the basis of the Conversion Rate prior to adjustment; and, in lieu of the shares the issuance of
which is so defined, the Company shall issue or cause its transfer agents to issue due bills or other appropriate evidence prepared by the Company of the right to receive such shares. If any distribution in respect of which an adjustment to the
Conversion Rate is required to be made as of the record date or announcement date or determination date or Expiration Date therefor is not thereafter made or paid by the Company for any reason, the Conversion Rate shall be readjusted to the
Conversion Rate which would then be in effect if such record date had not been fixed or such announcement date or effective date or determination date or Expiration Date had not occurred. 
  
 (h)     No adjustment shall be made pursuant to this Section 10.6 if the Holders may participate in the
transaction that would otherwise give rise to an adjustment pursuant to this Section 10.6. 
  
 Section 10.7     When Adjustment May Be Deferred. No adjustment in the Conversion Rate need be made unless the adjustment would require an increase or decrease of at least 1% in the
Conversion Rate. Any adjustments that are not made shall be carried forward and taken into account in any subsequent adjustment. 
  
 All calculations under this Article 10 shall be made to the nearest cent or to the nearest 1/1,000th of a share, as the case may be. 
  
 Section 10.8     When No Adjustment Required. No
adjustment need be made for a transaction referred to in Section 10.6 or 10.12 if Securityholders are to participate in the transaction without conversion on a basis and with notice that the Board of Directors of the Company determines to be fair
and appropriate in light of the basis and notice on which holders of Common Shares participate in the transaction. No adjustment need be made for rights to purchase Common Shares pursuant to the Company plan for reinvestment of dividends or
interest. 
  

 56 

 No adjustment need be made for a change in the par value or no par value of the Common Shares.

  
 To the extent the Securities become convertible pursuant to
this Article 10 in whole or in part into cash, no adjustment need be made thereafter as to the cash. Interest will not accrue on the cash. 
  
 Section 10.9     Notice of Adjustment. Whenever the Conversion Rate is adjusted, the Company shall promptly mail to
Securityholders a notice of the adjustment. The Company shall file with the Trustee and the Conversion Agent such notice and a certificate from the Company’s independent public accountants briefly stating the facts requiring the adjustment and
the manner of computing it. The certificate shall be conclusive evidence that the adjustment is correct. Neither the Trustee nor any Conversion Agent shall be under any duty or responsibility with respect to any such certificate except to exhibit
the same to any Holder desiring inspection thereof. 
  
 Section
10.10     Voluntary Decrease. The Company from time to time may decrease the Conversion Rate by any amount for any period of time. Whenever the Conversion Rate is decreased, the Company shall mail to Securityholders and
file with the Trustee and the Conversion Agent a notice of the decrease. The Company shall mail the notice at least 15 days before the date the decreased Conversion Rate takes effect. The notice shall state the decreased Conversion Rate and the
period it will be in effect. A voluntary decrease of the Conversion Rate does not change or adjust the Conversion Rate otherwise in effect for purposes of this Section 10. 
  
 Section 10.11 Notice of Certain Transactions. If: 
  
 (1)     the Company takes any action that would require an adjustment in the Conversion Rate pursuant to
Section 10.6 (unless no adjustment is to occur pursuant to Section 10.8); or 
  
 (2)     the Company takes any action that would require a supplemental indenture pursuant to Section 10.12; or 
  
 (3)     there is a liquidation or dissolution of the Company; 
  
 then the Company shall mail to Securityholders and file with the Trustee and the Conversion
Agent a notice stating the proposed record date for a dividend or distribution or the proposed effective date of a subdivision, combination, reclassification, consolidation, merger, binding share exchange, transfer, liquidation or dissolution. The
Company shall file and mail the notice at least 15 days before such date. Failure to file or mail the notice or any defect in it shall not affect the validity of the transaction. 
  
 Section 10.12     Reorganization of the Company; Special Distributions. If the Company is a party
to a transaction subject to Section 5.1 (other than a sale of all or substantially all of the assets of the Company in a transaction in which the holders of Common Shares immediately prior to such transaction do not receive securities, cash or

  

 57 

 other assets of the Company or any other person) or a merger or binding share exchange which reclassifies or changes its
outstanding Common Shares, the person obligated to deliver securities, cash or other assets upon conversion of Securities shall enter into a supplemental indenture. If the issuer of securities deliverable upon conversion of Securities is an
Affiliate of the successor to the Company, that issuer shall join in the supplemental indenture. 
  
 The supplemental indenture shall provide that the Holder of a Security may convert it into the kind and amount of securities, cash or other assets which
such Holder would have received immediately after the consolidation, merger, binding share exchange or transfer if such Holder had converted the Security immediately before the effective date of the transaction, assuming (to the extent applicable)
that such Holder (i) was not a constituent person or an Affiliate of a constituent person to such transaction; (ii) made no election with respect thereto; and (iii) was treated alike with the plurality of non-electing Holders. The supplemental
indenture shall provide for adjustments which shall be as nearly equivalent as may be practical to the adjustments provided for in this Article 10. The Company shall mail to Securityholders a notice briefly describing the supplemental indenture.

  
 If this Section applies, Section 10.6 does not apply.

  
 If the Company makes a distribution to all holders of its
Common Shares of any of its assets, or debt securities or any rights, warrants or options to purchase securities of the Company that, but for the provisions of the last paragraph of Section 10.8, would otherwise result in an adjustment in the
Conversion Rate pursuant to the provisions of Section 10.8, then, from and after the record date for determining the holders of Common Shares entitled to receive the distribution, a Holder of a Security that converts such Security in accordance with
the provisions of this Indenture shall upon such conversion be entitled to receive, in addition to the cash, and if applicable, shares of Common Shares into which the Security is convertible, the kind and amount of securities, cash or other assets
comprising the distribution that such Holder would have received if such Holder had converted the Security immediately prior to the record date for determining the holders of Common Shares entitled to receive the distribution. 
  
 Section 10.13     Company Determination Final. Any
determination that the Company or its Board of Directors must make pursuant to Section 10.3, 10.6, 10.7, 10.8, 10.12 or 10.15 is conclusive, absent manifest error. 
  
 Section 10.14     Trustee’s Adjustment Disclaimer. The Trustee has no duty to determine when
an adjustment under this Article 10 should be made, how it should be made or what it should be. The Trustee has no duty to determine whether a supplemental indenture under Section 10.12 need be entered into or whether any provisions of any
supplemental indenture are correct. The Trustee shall not be accountable for and makes no representation as to the validity or value of any securities or assets delivered upon conversion of Securities. The Trustee shall not be responsible for the
Company’s failure to comply with this Article 10. Each Conversion Agent shall have the same protection under this Section 10.14 as the Trustee. Unless and until the 
  

 58 

 Trustee receives a certificate from the Company setting forth the particulars of an adjustment under this Article 10, the
Trustee may assume without inquiry that no such adjustment has been, or is required to be, made. 
  
 Section 10.15     Simultaneous Adjustments. In the event that this Article 10 requires adjustments to the Conversion Rate under
more than one circumstance set forth in Sections 10.6 and the record dates for the distributions giving rise to such adjustments shall occur on the same date, then such adjustments shall be made by applying the provisions of Section 10.6.

  
 Section 10.16     Successive
Adjustments. After an adjustment to the Conversion Rate under this Article 10, any subsequent event requiring an adjustment under this Article 10 shall cause an adjustment to the Conversion Rate as so adjusted. 
  
 ARTICLE XI 
  
 MISCELLANEOUS 
  
 Section 11.1     Trust Indenture Act Controls. If any provision of this Indenture limits, qualifies, or conflicts with another
provision which is required to be included in this Indenture by the TIA, the required provision shall control. 
  
 Section 11.2     Notices. Any request, demand, authorization, notice, waiver, consent or communication shall be in writing and
delivered in person or mailed by first-class mail, postage prepaid, addressed as follows or transmitted by facsimile transmission (confirmed by guaranteed overnight courier) to the following facsimile numbers: 
  
 if to the Company, to: 
  
 Reebok International Ltd. 
 1895 J.W. Foster Boulevard 
 Canton,
Massachusetts 02021 
 Attn: David A. Pace 
 Facsimile No.: (781) 401-4780 
  
 in either case, with a copy to: 
  
 Ropes & Gray LLP

 One International Place 
 Boston, Massachusetts 02110-2624 
 Attn: Keith F. Higgins, Esq. 
 Facsimile No.: (617) 951-7050 
  
 if to the Trustee, to: 
  
 U.S. Bank National Association 
 One Federal
Street, 3rd Floor 
 Boston, Massachusetts 02110 
 Attn: Corporate Trust Services 
  (Reebok Series B 2% Convertible Debentures due 
  May 1, 2024) 
 Facsimile No.: (617) 603-6668

  

 59 

 The Company or the Trustee by notice given to the other in the manner provided above may designate
additional or different addresses for subsequent notices or communications. 
  
 Any notice or communication given to a Securityholder shall be mailed to the Securityholder, by first-class mail, postage prepaid, at the Securityholder’s address as it appears on the registration books of the
Registrar and shall be sufficiently given if so mailed within the time prescribed. 
  
 Failure to mail a notice or communication to a Securityholder or any defect in it shall not affect its sufficiency with respect to other Securityholders. If a notice or communication is mailed in the manner provided
above, it is duly given, whether or not received by the addressee. 
  
 If the Company mails a notice or communication to the Securityholders, it shall mail a copy to the Trustee and each Registrar, Paying Agent, Conversion Agent or co-registrar. 
  
 Section 11.3     Communication by Holders with Other Holders. Securityholders may communicate
pursuant to TIA Section 312(b) with other Securityholders with respect to their rights under this Indenture or the Securities. The Company, the Trustee, the Registrar, the Paying Agent, the Conversion Agent and anyone else shall have the protection
of TIA Section 312(c). 
  
 Section 11.4    
Certificate and Opinion as to Conditions Precedent. Upon any request or application by the Company to the Trustee to take any action under this Indenture, the Company shall furnish to the Trustee: 
  
 (1)     an Officers’ Certificate stating that, in
the opinion of the signers, all conditions precedent, if any, provided for in this Indenture relating to the proposed action have been complied with; and 
  
 (2)     an Opinion of Counsel stating that, in the opinion of such counsel, all such conditions precedent have been complied with.

  
 Section 11.5     Statements Required in
Certificate or Opinion. Each Officers’ Certificate or Opinion of Counsel with respect to compliance with a covenant or condition provided for in this Indenture shall include: 
  
 (1)     a statement that each person making such Officers’ Certificate or Opinion of Counsel has
read such covenant or condition; 
  

 60 

 (2)     a brief statement as to the nature and scope of the examination or
investigation upon which the statements or opinions contained in such Officers’ Certificate or Opinion of Counsel are based; 
  
 (3)     a statement that, in the opinion of each such person, he has made such examination or investigation as is necessary to enable
such person to express an informed opinion as to whether or not such covenant or condition has been complied with; and 
  
 (4)     a statement that, in the opinion of such person, such covenant or condition has been complied with. 
  
 Section 11.6     Separability Clause. In case any
provision in this Indenture or in the Securities shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 
  
 Section 11.7     Rules by Trustee, Paying Agent,
Conversion Agent and Registrar. The Trustee may make reasonable rules for action by or a meeting of Securityholders. The Registrar, the Conversion Agent and the Paying Agent may make reasonable rules for their functions. 
  
 Section 11.8     Legal Holidays. A “Legal
Holiday” is any day other than a Business Day. If any specified date (including a date for giving notice) is a Legal Holiday, the action shall be taken on the next succeeding day that is not a Legal Holiday, and, if the action to be taken on
such date is a payment in respect of the Securities, no interest, if any, shall accrue for the intervening period. 
  
 Section 11.9     Governing Law. THE LAWS OF THE STATE OF NEW YORK SHALL GOVERN THIS INDENTURE AND THE SECURITIES. 

 
 Section 11.10     No Recourse Against Others. A
director, officer, employee or stockholder, as such, of the Company shall not have any liability for any obligations of the Company under the Securities or for any claim based on, in respect of or by reason of such obligations or their creation. By
accepting a Security, each Securityholder shall waive and release all such liability. The waiver and release shall be part of the consideration for the issue of the Securities. 
  
 Section 11.11     Successors. All agreements of the Company in this Indenture and the Securities
shall bind its successor. All agreements of the Trustee in this Indenture shall bind its successor. 
  
 Section 11.12     Multiple Originals. The parties may sign any number of copies of this Indenture. Each signed copy shall be an
original, but all of them together represent the same agreement. One signed copy is enough to prove this Indenture. 
  

 61 

 IN WITNESS WHEREOF, the undersigned, being duly authorized, have executed this Indenture on behalf of the
respective parties hereto as of the date first above written. 
  

			
	REEBOK INTERNATIONAL LTD.
		
	By:	 	 
	 	 	 Name:
 Title:

  

			
	 U.S. BANK NATIONAL ASSOCIATION,
 as
Trustee

		
	By:	 	 
	 	 	 Name:
 Title:

  
  

 62 

 EXHIBIT A-1 
  

[FORM OF FACE OF GLOBAL SECURITY] 
  
 FOR PURPOSES OF SECTIONS 1273 AND 1275 OF THE INTERNAL REVENUE CODE, THE ISSUE PRICE OF EACH SECURITY IS $1,000 PER $1,000 OF PRINCIPAL AMOUNT, THE ISSUE
DATE IS APRIL 30, 2004 AND THE COMPARABLE YIELD IS 4.61% PER ANNUM. U.S. HOLDERS OF THIS SECURITY MAY OBTAIN THE PROJECTED PAYMENT SCHEDULE FOR THIS SECURITY BY SUBMITTING A WRITTEN REQUEST FOR SUCH INFORMATION TO: REEBOK INTERNATIONAL LTD., 1895
J.W. FOSTER BOULEVARD, CANTON, MASSACHUSETTS 02021, ATTN.: OFFICE OF INVESTOR RELATIONS. 
  
 UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY TO REEBOK INTERNATIONAL LTD. (THE “COMPANY”) OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER
ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN. 
  
 TRANSFERS OF THIS GLOBAL SECURITY SHALL BE
LIMITED TO TRANSFERS TO NOMINEES OF THE DEPOSITORY TRUST COMPANY, OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET
FORTH IN ARTICLE TWO OF THE INDENTURE REFERRED TO ON THE REVERSE HEREOF. 
  

 A-1-1 

 REEBOK INTERNATIONAL LTD. 
  
 Series B 2% Convertible Debentures due May 1, 2024 
  

			
	 No.:
	 	CUSIP: 758110AG5
		
	 Issue Date:                 , 2004
	 	Principal Amount: $

  
 REEBOK INTERNATIONAL
LTD., a Massachusetts corporation, promises to pay to Cede & Co. or registered assigns, the Principal Amount of million dollars ($ ), on May 1, 2024, subject to the further provisions of this Debenture set forth on the reverse hereof, which
further provisions shall for all purposes have the same effect as if set forth at this place. This Security is convertible as specified on the other side of this Security. 
  
 Interest Payment Dates: May 1 and November 1, commencing May 1, 2005. 
  
 Record Dates: April 15 and October 15, commencing April 15, 2005. 

 
 Dated: 
  

			
	REEBOK INTERNATIONAL LTD.
		
	By:	 	 
	 	 	 Name:
 Title:

  

 A-1-2 

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 
  
 U.S. BANK NATIONAL ASSOCIATION, as Trustee, certifies that this is one of the Securities referred to in the within-mentioned
Indenture. 
  

			
		
	By:	 	 
	 	 	Authorized Signatory

  
 Dated: 
  

 A-1-3 

 [FORM OF REVERSE SIDE OF DEBENTURE] 
  
 REEBOK INTERNATIONAL LTD. 
  
 Series B 2% Convertible Debentures due May 1, 2024 
  
 1.     Interest. 
  
 This Security shall accrue regular interest at a rate of 2% per annum. The Company promises to pay regular interest on the Securities in cash semiannually
in arrears on each May 1 and November 1, commencing May 1, 2005 through May 1, 2009, to Holders of record on the immediately preceding April 15 and October 15, respectively. After May 1, 2009, the Company will not pay regular interest on the
Securities prior to maturity. Regular interest on the Securities will accrue at a rate of 2%, compounded semiannually and is payable upon redemption, repurchase or final maturity. Interest will accrue from the most recent date to which interest has
been paid, or if no interest has been paid, from November 1, 2004, until the Principal Amount is paid or duly made available for payment. Interest will be computed on the basis of a 360-day year of twelve 30-day months. The Company will pay regular
interest on any overdue Principal Amount and it shall pay interest on overdue installments of interest (without regard to any applicable grace period). 
  
 During any six month period from November 1 through April 30 and from May 1 through October 31, commencing May 1, 2009, the Company shall pay contingent
interest (“Contingent Interest”) on this Security on the Interest Payment Date for the applicable six-month period if the average Trading Price (as defined below) of the Securities during the five trading days ended on the third day
immediately preceding the first day of the applicable interest period equals or exceeds 120% of the sum of the principal amount of, plus accrued and unpaid regular interest on, the Securities. On any Interest Payment Date when Contingent Interest
shall be payable, the Contingent Interest payable per $1,000 principal amount of Securities will equal 0.30% per year of the average Trading Price of such $1,000 principal amount of Securities during the applicable five Trading Day reference period,
payable in arrears. The Company shall notify the Holders of the Securities by press release or otherwise upon a determination that the Holders will be entitled to receive Contingent Interest with respect to any six-month interest period. The Company
shall also cause notice to be mailed to the Trustee on or prior to twenty (20) days following such determination. 
  
 The “Trading Price” of the Securities on any date of determination means the average of the secondary bid quotations per Security obtained by
the Calculation Agent for $5.0 million aggregate principal amount of Securities at approximately 3:30 p.m., New York City time, on such determination date from three independent nationally recognized securities dealers the Company selects, provided
that if: 
  
 (1)     three
such bids cannot reasonably be obtained by the Calculation Agent, but two such bids are obtained, then the average of the two bids shall be used; and 
  

 A-1-4 

 (2)     if only one such bid can reasonably be obtained by the
Calculation Agent, that one bid shall be used; 
  
 If the
Calculation Agent cannot reasonably obtain at least one such bid, or, if, in the Company’s reasonable judgment, the bid quotations are not indicative of the secondary market value of the Securities, then the “Trading Price” of the
Securities on any date of determination will equal (A) the applicable Conversion Rate of the Securities as of such determination date multiplied by (B) the Closing Price (as such term is defined in the Indenture) of the Common Shares on the five
trading days ending on such determination date. 
  
 2.    
Method of Payment. 
  
 The Company will pay interest on
this Security (except defaulted interest) to the Person who is the registered Holder of this Security at the close of business on April 15 or October 15, as the case may be, next preceding the related interest payment date. Subject to the terms and
conditions of the Indenture, the Company will make payments in respect of the Redemption Price, Purchase Price, Change in Control Purchase Price and the Principal Amount at Stated Maturity, as the case may be, to the Holder who surrenders a Security
to a Paying Agent to collect such payments in respect of the Security. The Company will pay cash amounts in money of the United States that at the time of payment is legal tender for payment of public and private debts. However, the Company may pay
interest, the Redemption Price, Purchase Price, Change in Control Purchase Price and the Principal Amount at Stated Maturity, as the case may be, by check or wire payable in such money; provided, however, that a Holder holding
Securities with an aggregate Principal Amount in excess of $2,000,000 will be paid by wire transfer in immediately available funds at the election of such Holder. The Company may mail an interest check to the Holder’s registered address.
Notwithstanding the foregoing, so long as this Security is registered in the name of a Depositary or its nominee, all payments hereon shall be made by wire transfer of immediately available funds to the account of the Depositary or its nominee.

  
 3.     Paying Agent, Conversion Agent, Calculation
Agent and Registrar. 
  
 Initially, U.S. Bank National
Association (the “Trustee”) will act as Paying Agent, Conversion Agent, Calculation Agent and Registrar. The Company may appoint and change any Paying Agent, Conversion Agent, Calculation Agent or Registrar without notice, other than
notice to the Trustee; provided that the Company will maintain at least one Paying Agent in the State of New York, City of New York, Borough of Manhattan, which shall initially be an office or agency of the Trustee. The Company or any of its
Subsidiaries or any of their Affiliates may act as Paying Agent, Conversion Agent, Calculation Agent or Registrar. 
  
 4.     Indenture. 
  
 The Company issued the Securities under an Indenture dated as of November             , 2004
(the “Indenture”), between the Company and the Trustee. The terms 
  

 A-1-5 

 of the Securities include those stated in the Indenture and those made part of the Indenture by reference to the Trust
Indenture Act of 1939, as in effect from time to time (the “TIA”). Capitalized terms used herein and not defined herein have the meanings ascribed thereto in the Indenture. The Securities are subject to all such terms, and Securityholders
are referred to the Indenture and the TIA for a statement of those terms. 
  
 The Securities are general unsecured obligations of the Company limited to $350,000,000 aggregate Principal Amount subject to Section 2.7 of the Indenture. The Indenture does not limit other indebtedness of the
Company, secured or unsecured. 
  
 5.     Redemption at the
Option of the Company. 
  
 No sinking fund is provided for the
Securities. The Securities are not redeemable prior to May 1, 2009. Beginning on May 1, 2009 and prior to May 1, 2010 the Securities are redeemable in whole or in part, at any time or from time to time for a redemption price equal to 100% of the
principal amount of the Securities to be redeemed plus accrued and unpaid interest up to but not including the Redemption Date, if the Volume Weighted Average Price of the Common Shares for 20 trading days within a period of 30 consecutive trading
days ending on the trading day before the date of mailing of the notice of redemption exceeds 125% of the Conversion Price on such trading day. Beginning on May 1, 2010 the Securities are redeemable in whole or in part, at any time or from time to
time for a redemption price equal to 100% of the principal amount of the Securities to be redeemed plus accrued and unpaid interest up to but not including the Redemption Date; provided that, if the Redemption Date is on or after an interest record
date but on or prior to the related interest payment date, interest will be payable to the Holders in whose names the Securities are registered at the close of business on the relevant record date. 
  
 6.     Purchase By the Company at the Option of the Holder.

  
  Subject to the terms and conditions of the Indenture, the
Company shall become obligated to purchase, at the option of the Holder, all or any portion of the Securities held by such Holder, in any integral multiple of $1,000, on May 1, 2009, May 1, 2010, May 1, 2014 and May 1, 2019 (each, a “Purchase
Date”) at a purchase price per Security equal to 100% of the aggregate Principal Amount of the Security (the “Purchase Price”), together with accrued and unpaid interest up to but not including the Purchase Date (provided that, if the
Purchase Date is on or after an interest record date but on or prior to the related interest payment date, interest will be payable to the Holders in whose names the Securities are registered at the close of business on the relevant record date)
upon delivery of a Purchase Notice containing the information set forth in the Indenture, at any time from the opening of business on the date that is not less than 20 Business Days prior to such Purchase Date until the close of business on the
fifth Business Day prior to such Purchase Date, and upon delivery of the Securities to the Paying Agent by the Holder as set forth in the Indenture. The Company shall be required to pay the Purchase Price in cash, provided, however that if an
Accounting Event (as defined in the Indenture) has occurred, the Company may elect to pay the Purchase Price in cash or Common Shares value at Market Price or a combination thereof. 
   

 A-1-6 

 At the option of the Holder and subject to the terms and conditions of the Indenture, the Company shall
become obligated to purchase the Securities held by such Holder 45 Business Days after the occurrence of a Change in Control of the Company for a Change in Control Purchase Price equal to 100% of the Principal Amount thereof plus accrued and unpaid
interest up to but not including the Change in Control Purchase Date, which Change in Control Purchase Price shall be paid in cash. 
  
 Holders have the right to withdraw any Purchase Notice or Change in Control Purchase Notice, as the case may be, by delivering to the Paying Agent a
written notice of withdrawal in accordance with the provisions of the Indenture. 
  
 If cash sufficient to pay the Purchase Price or Change in Control Purchase Price, as the case may be, and accrued and unpaid interest, of all Securities or portions thereof to be purchased as of the Purchase Date or
the Change in Control Purchase Date, as the case may be, is deposited with the Paying Agent on the Business Day following the Purchase Date or the Change in Control Purchase Date, interest ceases to accrue on such Securities (or portions thereof)
immediately after such Purchase Date or Change in Control Purchase Date, and the Holder thereof shall have no other rights as such other than the right to receive the Purchase Price or Change in Control Purchase Price, as the case may be, upon
surrender of such Security. 
  
 7.     Notice of
Redemption. 
  
 Notice of redemption pursuant to paragraph 5
of this Security will be mailed at least 15 days but not more than 60 days before the Redemption Date to each Holder of Securities to be redeemed at the Holder’s registered address. If money sufficient to pay the Redemption Price of all
Securities (or portions thereof) to be redeemed on the Redemption Date is deposited with the Paying Agent prior to or on the Redemption Date, immediately after such Redemption Date interest ceases to accrue on such Securities or portions thereof.
Securities in denominations larger than $1,000 of Principal Amount may be redeemed in part but only in integral multiples of $1,000 of Principal Amount. 
  
 8.     Conversion. 
  
 A Holder of a Security may convert the principal amount of such Security (or any portion thereof equal to $1,000 or any integral multiple of $1,000 in
excess thereof) into cash and, if applicable, Common Shares on any Business Day, subject to the conditions set forth in Section 10.1 of the Indenture and the procedures set forth in the Indenture; provided, however, that, if such Security is called
for redemption or subject to purchase upon a Change in Control or upon exercise of the purchase right described in paragraph 6 above, the conversion right will terminate at the close of business on the Business Day immediately preceding the
Redemption Date the Change in Control Purchase Date or a Purchase Date, as the case may be, for such Security or such earlier date as the Holder presents such Security for redemption or purchase (unless the Company shall default in paying the
redemption payment, Change in Control Purchase Price or a Purchase Price, as the case may be, when due, in which case the conversion 
  

 A-1-7 

 right shall terminate at the close of business on the date such default is cured and such Security is redeemed or
purchased, as the case may be). 
  
 The initial conversion price
is $51.2594. The initial Conversion Rate is approximately 19.5086 Common Shares per $1,000 principal amount of Securities. Upon surrender for conversion a Holder is entitled to receive, per $1,000 principal amount of Securities being converted, cash
and, if applicable, Common Shares, with an aggregate value equal to the sum of the Daily Conversion Values (as defined below) calculated for each of the five trading days immediately following the Conversion Date (each such trading day, a
“Measurement Day”). The “Daily Conversion Value” for each Measurement Day is equal to one-fifth of the product of the Conversion Rate in effect on such Measurement Day multiplied by the Volume Weighted Average Price (as
defined below) per Common Share on such Measurement Day. 
  
 Upon
surrender for conversion a Holder is entitled to receive per $1,000 principal amount of Securities being converted for each of the five Measurement Days: 
  
 (1)     if the Daily Conversion Value for such Measurement Day exceeds $200 (representing one-fifth of the principal amount), (a) a
cash payment of $200 and (b) the remaining Daily Conversion Value in excess of $200 (the “Daily Net Share Settlement Value”) in Common Shares; or 
  
 (2)     if the Daily Conversion Value for such Measurement Day is less than or equal to $200, a cash
payment equal to the Daily Conversion Value. 
  
 The number of
Common Shares to be delivered under clause (1) above for any Measurement Day will be determined by dividing the Daily Net Share Settlement Value for such Measurement Day by the Volume Weighted Average Price per Common Share on such Measurement Day.

  
 The “Volume Weighted Average Price” per Common Share
on any Measurement Day will be the volume weighted average price on the New York Stock Exchange or, if the Common Shares are not listed on the New York Stock Exchange, on the principal exchange on which the Common Shares are then listed or traded,
from 9:30 a.m. to 4:00 p.m. (New York City time) on that trading day as displayed by Bloomberg (Bloomberg key-strokes: RBK Equity VAP) (or if such Volume Weighted Average Price is not available, the market value of one Common Share on such
Measurement Day as the board of directors of the Company determines in good faith using a volume weighted method). 
  
 Except as provided in the next paragraph, the cash and any Common Shares (including cash in lieu of fractional shares) due upon conversion of the
Securities will be delivered through the Conversion Agent on the third trading day following the last Measurement Day applicable to the Securities being converted (the “Settlement Date”). 
  
 If a Holder surrenders Securities for conversion on or after April 17, 2024,
the conversion date will be deemed to be May 1, 2024. Upon such conversion, a Holder will receive (i) the sum of the Daily Conversion Values calculated for the five trading days 
  

 A-1-8 

 ending on the trading day prior to the Stated Maturity of the Securities and (ii) accrued interest up to but excluding
the Stated Maturity of the Securities. A Holder is entitled to receive cash and Common Shares due pursuant to this paragraph upon conversion on the Stated Maturity of the Securities. 
  
 A Security in respect of which a Holder has delivered a Purchase Notice or Change in Control Purchase Notice exercising the
option of such Holder to require the Company to purchase such Security may be converted only if such notice of exercise is withdrawn in accordance with the terms of the Indenture. 
  
 To surrender a Security for conversion, a Holder must (1) complete and manually sign the conversion notice below (or
complete and manually sign a facsimile of such notice) and deliver such notice to the Conversion Agent, (2) surrender the Security to the Conversion Agent, (3) furnish appropriate endorsements and transfer documents, if required by the Conversion
Agent, (4) pay any transfer or similar tax, if required and (5) in the case of a conversion pursuant to section 10.1(b)(1) of the Indenture, provide the Company with reasonable evidence that the conditions to such conversion have been satisfied.

  
 9.     Denominations; Transfer; Exchange.

  
 The Securities are in fully registered form, without coupons,
in denominations of $1,000 of Principal Amount and integral multiples of $1,000. A Holder may transfer or exchange Securities in accordance with the Indenture. The Registrar may require a Holder, among other things, to furnish appropriate
endorsements and transfer documents and to pay any taxes and fees required by law or permitted by the Indenture. The Registrar need not transfer or exchange any Securities selected for redemption (except, in the case of a Security to be redeemed in
part, the portion of the Security not to be redeemed) or any Securities in respect of which a Purchase Notice or a Change in Control Purchase Notice has been given and not withdrawn (except, in the case of a Security to be purchased in part, the
portion of the Security not to be purchased) or any Securities for a period of 15 days before the mailing of a notice of redemption of Securities to be redeemed. 
  
 10.     Persons Deemed Owners. 
  
 The registered Holder of this Security may be treated as the owner of this Security for all purposes. 
  
 11.     Unclaimed Money or Securities. 
  
 The Trustee and the Paying Agent shall return to the Company upon written
request any money or securities held by them for the payment of any amount with 
  

 A-1-9 

 respect to the Securities that remains unclaimed for two years, subject to applicable unclaimed property law. After
return to the Company, Holders entitled to the money or securities must look to the Company, for payment as general creditors unless an applicable abandoned property law designates another person. 
  
 12.     Amendment; Waiver. 
  
 Subject to certain exceptions set forth in the Indenture, (i) the Indenture
or the Securities may be amended with the written consent of the Holders of at least a majority in aggregate Principal Amount of the Securities at the time outstanding and (ii) certain Defaults may be waived with the written consent of the Holders
of a majority in aggregate Principal Amount of the Securities at the time outstanding. Subject to certain exceptions set forth in the Indenture, without the consent of any Securityholder, the Company and the Trustee may amend the Indenture or the
Securities so long as such changes, other than those in clause (ii), do not materially and adversely affect the interest of Securityholders (i) to cure any ambiguity, omission, defect or inconsistency, (ii) to comply with Article 5 or Section 10.14
of the Indenture, (iii) to add to the covenants of the Company for the benefit of Securityholders or to secure the Company’s obligations under the Securities and this Indenture, or (iv) to comply with any requirement of the SEC in connection
with the qualification of the Indenture under the TIA. 
  
 13.     Defaults and Remedies. 
  
 Under the Indenture, Events of Default include (i) default for 30 days in payment of any interest on any Securities after receipt by the Company of a Notice of Default, (ii) default in payment of the Principal Amount, Redemption Price,
Purchase Price or Change in Control Purchase Price, as the case may be, in respect of the Securities when the same becomes due and payable, (iii) default for 10 Business Days in converting any Securities after receipt by the Company of a Notice of
Default, (iv) failure by the Company to comply with other agreements in the Indenture or the Securities, subject to notice and lapse of time; (v) default by the Company in the payment at the final maturity thereof, after the expiration of any
applicable grace period, of principal of or interest on indebtedness for money borrowed, other than non recourse indebtedness, in the principal amount then outstanding of $25 million or more, or acceleration of any indebtedness in such principal
amount so that it becomes due and payable prior to the date on which it would otherwise have become due and payable and such acceleration is not rescinded within 10 business days after notice to the Company in accordance with the Indenture; and (vi)
certain events of bankruptcy or insolvency. 
  
 Securityholders
may not enforce the Indenture or the Securities except as provided in the Indenture. The Trustee may refuse to enforce the Indenture or the Securities unless it receives reasonable indemnity or security. Subject to certain limitations, Holders of a
majority in aggregate Principal Amount of the Securities at the time outstanding may direct the Trustee in its exercise of any trust or power. The Trustee may withhold from Securityholders notice of any continuing Default (except a Default in
payment of amounts specified in clause (i) or (ii) above) if it determines that withholding notice is in their interests. 
  

 A-1-10 

 14.     Trustee Dealings with the Company. 
  
 Subject to certain limitations imposed by the TIA, the Trustee under the
Indenture, in its individual or any other capacity, may become the owner or pledgee of Securities and may otherwise deal with and collect obligations owed to it by the Company or its Affiliates and may otherwise deal with the Company or its
Affiliates with the same rights it would have if it were not Trustee. 
  
 15.     No Recourse Against Others. 
  
 A director, officer, employee or shareholder, as such, of the Company shall not have any liability for any obligations of the Company under the Securities or the Indenture or for any claim based on, in respect of or by reason of such
obligations or their creation. By accepting a Security, each Securityholder waives and releases all such liability. The waiver and release are part of the consideration for the issue of the Securities. 
  
 16.     Authentication. 
  
 This Security shall not be valid until an authorized signatory of the Trustee
manually signs the Trustee’s Certificate of Authentication on the other side of this Security. 
  
 17.     Abbreviations. 
  
 Customary abbreviations may be used in the name of a Securityholder or an assignee, such as TEN COM (“tenants in common”), TEN ENT (“tenants by the entireties”), JT TEN (“joint tenants with
right of survivorship and not as tenants in common”), CUST (“custodian”) and U/G/M/A (“Uniform Gift to Minors Act”). 
  
 18.     Governing Law. 
  
 THE LAWS OF THE STATE OF NEW YORK SHALL GOVERN THE INDENTURE AND THIS SECURITY. 
  
 The Company will furnish to any Securityholder upon written request and without charge a copy of the Indenture which has in
it the text of this Security in larger type. Requests may be made to: 
  
 Reebok International Ltd. 
 1895 J.W. Foster Boulevard 
 Canton, Massachusetts 02021 
 Attn: David A. Pace 
 Facsimile No.: (781) 401-4780 
  

 A-1-11 

			
	 ASSIGNMENT FORM

	  	 CONVERSION NOTICE

	 To assign this Security, fill in the form below:
	  	 To convert this Security into cash and, if applicable, Common Shares of the Company, check the box
[     ]
  

	 I or we assign and transfer this Security to
  

  

  
 (Insert assignee’s soc. sec. or tax ID no.)
  

  

  

 (Print or type assignee’s name, address and zip code)
  
 and irrevocably appoint
  
                      agent to transfer this Security on the books of the Company. The agent may substitute
another to act for him.
	  	 To convert only part of this Security, state the Principal Amount to be converted (which must be $1,000 or an integral multiple of
$1,000):
  
 If you want the stock certificate made out in another person’s
name fill in the form below:
  

  

 (Insert the other person’s soc. sec. tax ID no.)
  

  

  

  

  

 (Print or type other person’s name, address and zip code)

	 	  	 
	  
 Date:                                     
                                        
              Your
Signature:                                      
                                        
     

	 	  	 

 (Sign exactly as your name appears on the other side of this Security) 
  
 Signature Guaranteed 
  

 Participant in a Recognized Signature 
 Guarantee Medallion Program 
  

			
		
	By:	 	 
	 	 	Authorized Signatory

  

 A-1-12 

 EXHIBIT A-2 
  

[Form of Certificated Security] 
  
 FOR PURPOSES OF SECTIONS 1273 AND 1275 OF THE INTERNAL REVENUE CODE, THE ISSUE PRICE OF EACH SECURITY IS $1,000 PER $1,000 OF PRINCIPAL AMOUNT, THE ISSUE
DATE IS APRIL 30, 2004 AND THE COMPARABLE YIELD IS 4.61% PER ANNUM. U.S. HOLDERS OF THIS SECURITY MAY OBTAIN THE PROJECTED PAYMENT SCHEDULE FOR THIS SECURITY BY SUBMITTING A WRITTEN REQUEST FOR SUCH INFORMATION TO: REEBOK INTERNATIONAL LTD., 1895
J.W. FOSTER BOULEVARD, CANTON, MASSACHUSETTS 02021, ATTN.: OFFICE OF INVESTOR RELATIONS. 
  

 A-2-1 

 REEBOK INTERNATIONAL LTD. 
  
 Series B 2% Convertible Debentures due May 1, 2024 
  

			
	 No.:
	 	CUSIP: 758110AG5
		
	 Issue Date:                 , 2004
	 	Principal Amount: $

  
 REEBOK INTERNATIONAL
LTD., a Massachusetts corporation, promises to pay to Cede & Co. or registered assigns, the Principal Amount of million dollars ($ ) on May 1, 2024, subject to the further provisions of this Debenture set forth on the reverse hereof, which
further provisions shall for all purposes have the same effect as if set forth at this place. This Security is convertible as specified on the other side of this Security. 
  
 Interest Payment Dates: May 1 and November 1, commencing May 1, 2005. 
  
 Record Dates: April 15 and October 15, commencing April 15, 2005. 

 
 Dated: 
  

			
	REEBOK INTERNATIONAL LTD.
		
	By:	 	 
	 	 	 Name:
 Title:

  
  

 A-2-2 

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 
  
 U.S. BANK NATIONAL ASSOCIATION, as Trustee, certifies that this is one of the Securities referred to in the within-mentioned
Indenture. 
  

			
		
	By:	 	 
	 	 	Authorized Signatory

  
 Dated: 
  

 A-2-3 

 [FORM OF REVERSE SIDE IS IDENTICAL TO EXHIBIT A-1] 
  

 A-2-4

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