Document:

Third amendment to Loan Agreement

 EXHIBIT 4.4 
  
 AMENDED AND RESTATED LOAN AGREEMENT 
  
 This AMENDED AND RESTATED LOAN AGREEMENT (“Agreement”) is made as of the April 27, 2004, by and between
WACHOVIA BANK, NATIONAL ASSOCIATION, formerly known as FIRST UNION NATIONAL BANK, (“Lender”) whose address is 10 South Jefferson Street – VA7391, Roanoke, Virginia 24011, and SUPERIOR UNIFORM GROUP, INC., a
Florida corporation, (together with all Subsidiaries, as hereinafter defined, and all Affiliates, as hereinafter defined, (“Borrower”), with its principal executive offices located at, and having a mailing address of, 10055 Seminole
Boulevard, Seminole, Florida 33772. This Amended and Restated Loan Agreement amends, supercedes, and restates in its entirety that certain Loan Agreement entered into by and between Lender and Borrower dated as of March 26, 1999, as amended by that
certain First Amendment to Loan Agreement and Revolving Credit Note dated as of October 16, 2000, and as amended by that certain Second Amendment to Loan Agreement and Other Loan Documents dated as of March 27, 2001. 
  
 WITNESSETH: 
  
 WHEREAS, Borrower desires to borrow from Lender, and Lender is willing to
make a loan or loans to Borrower, upon the terms and conditions set forth herein. 
  
 NOW, THEREFORE, in consideration of the terms and conditions contained herein, and of any extension of credit heretofore, now or hereafter made by Lender to Borrower, the parties hereto, intending to be legally bound,
hereby agree as follows: 
  
 1. GENERAL DEFINITIONS

  
 1.1. Definitions. When used herein, the following
terms shall have the following meanings: 
  
 Affiliate: as
defined in 11 U.S.C. Section 101, except that the term “debtor” therein shall be replaced by the term “Borrower”. 
  
 Agreement: this Amended and Restated Loan Agreement, together with any and all amendments, modifications, extensions, substitutions and renewals
hereof. 

 Closing Date: the date on which this Agreement is accepted by Lender as evidenced by its due
execution hereof whether or not any loans or advances are made pursuant to this Agreement on such date. 
  
 Confirmation: with respect to a Hedge Agreement, one or more documents exchanged between the parties which, taken together, confirm all of the
terms of such Hedge Agreement. 
  
 Coverage Ratio: as
defined in Section 7.1(c). 
  
 Default: an event or
condition which. with notice, lapse of time or the happening of any further condition, event or act, or any combination of the foregoing, would constitute an Event of Default. 
  
 ERISA: the Employee Retirement Income Security Act of 1974, as amended to the date hereof and from time to time
hereafter, and any successor statute. 
  
 Event of Default:
as defined in Section 8.1. 
  
 Financials: the audited
financial statements of Borrower for the period ended December 31, 2003, including without limitation, a balance sheet, profit and loss statement and statement of cash flows, with supporting schedules. The audited financial statements of Borrower
have been certified by DeLoitte & Touche, LLP as having been prepared in accordance with generally accepted accounting principles applied on a consistent basis and fairly representing the assets, liabilities, and financial condition and results
of operations of Borrower, without qualification. 
  
 Hedge
Agreement: that certain ISDA Master Swap Agreement, together with the Schedule thereto and the Confirmation delivered in connection therewith, each executed by and between Borrower and Lender on or about February 23, 1999, and all extensions,
modifications, supplements and replacements thereof or thereto. 
  
 Indebtedness: all of Borrower’s liabilities, obligations and indebtedness to Lender of any and every kind and nature (including, without limitation, principal, interest, charges, expenses, attorneys’ fees and other sums
chargeable to Borrower by Lender and future advances made to or for the benefit of Borrower), arising under this Agreement, under the Hedge Agreement or under any of the Other Agreements, whether heretofore, now or hereafter owing, arising, due or
payable from Borrower to Lender, including obligations of performance. 

 Liabilities: all liabilities, obligations and indebtedness of any and every kind and nature
(including, without limitation, liabilities, obligations and indebtedness to trade creditors) whether heretofore, now or hereafter owing, arising, due or payable from Borrower or any Subsidiary to any Person and howsoever evidenced, created,
incurred, acquired or owing, whether primary, secondary, direct, contingent, fixed, matured, liquidated or otherwise. Without in any way limiting the generality of the foregoing, Liabilities specifically includes (i) all indebtedness guaranteed,
directly or indirectly, in any manner, or endorsed (other than for collection or deposit in the ordinary course of business) or discounted with recourse; (ii) all obligations or liabilities of any Person that are secured by any Lien upon property
owned by Borrower or a Subsidiary, even though Borrower or such Subsidiary has not assumed or become liable for the payment thereof; (iii) all obligations or liabilities created or arising under any lease of real or personal property or conditional
sale or other title retention agreement with respect to property used or acquired by Borrower or a Subsidiary. even though the rights and remedies of the lessor, seller or lender thereunder are limited to repossession of such property; (iv) all
unfunded pension fund obligations and liabilities; and (v) deferred taxes. 
  
 Lien: any mortgage, pledge, security interest, encumbrance, lien, charge or claim upon property of any kind, whether or not voluntarily given (including any agreement to give any of the foregoing, any
conditional sale or other title retention agreement, any lease in the nature thereof, and the filing of, or agreement to give, any financing statement under the Uniform Commercial Code of any jurisdiction). 
  
 Minimum Tangible Net Worth: as defined in Section 7.1(d). 

 
 Notes: collectively, the Term Promissory Note and the Revolving
Credit Note, together with any and all amendments, modifications, extensions, substitutions and renewals thereof. 
  
 Other Agreements: all agreements, instruments and documents, including, without limitation, the Notes, and any other notes, guarantees, mortgages,
deeds of trust, chattel mortgages, pledges, powers of attorney, consents, assignments, contracts, notices, security agreements, leases, financing statements, subordination agreements, trust account agreements and all other written matter whether
heretofore, now or hereafter executed by or on behalf of Borrower with respect to, or in connection with, this Agreement, together with any and all amendments, modifications, extensions, substitutions and renewals thereof. 
  
 Person: any individual, sole proprietorship, partnership, joint
venture, trust, unincorporated organization, association, corporation, institution, entity, 

 
party or government (whether national, federal, state, county, city, municipal or otherwise, including, without limitation, any instrumentality, division,
agency, body or department thereof). 
  
 Plan: any employee
benefit plan of Borrower or any Subsidiary, as defined in Section 3(3) of ERISA, including, without limitation, any multi-employer plan or any employee welfare benefit plan which is maintained or has been maintained pursuant to a collective
bargaining agreement to which two or more unrelated employers contribute and in respect of which Borrower or any Subsidiary is an “employer” as defined in Section 3(5) of ERISA. 
  
 Revolving Credit Loan: as defined in Section 2.1. 
  
 Revolving Credit Loan Maturity Date: June 30, 2007. 
  
 Revolving Credit Note: that certain Renewal Revolving Line of Credit Note in the maximum principal amount of
$15,000,000.00 dated of even date herewith, made by Borrower payable to the order of Lender, together with any and all amendments, modifications, extensions, substitutions and renewals thereof. 
  
 Subsidiary: any corporation of which more than 50% of the outstanding
capital stock having ordinary voting power to elect a majority of the board of directors of such corporation (irrespective of whether, at the time, stock of any other class or classes of such corporation shall or might have voting power by reason of
the happening of any contingency) is at the time, directly or indirectly, owned by Borrower and/or one or more Subsidiaries. 
  
 Term Loan: as defined in Section 3.1. 
  
 Term Loan Maturity Date: April 1, 2009. 
  
 Term Promissory Note: that certain Term Promissory Note in the principal amount of $12,000,000.00 dated March 26, 1999, made by Borrower payable to
the order of Lender, together with any and all amendments, modifications, extensions, substitutions and renewals thereof. 
  
 Total Liabilities: all Liabilities of Borrower, including capitalized leases and all reserves for deferred taxes and other deferred sums appearing
on the liabilities side of a balance sheet, but excluding debt fully subordinated to Lender on terms and conditions acceptable to Lender. 

 1.2. Other Terms. Any accounting terms used in this Agreement which are not specifically defined
shall have the meanings customarily given them in accordance with generally accepted accounting principles. 
  
 2. REVOLVING CREDIT FACILITY 
  
 2.1. Revolving Credit Facility; Maximum Amount; Use of Proceeds; Advance Period. Subject to the terms and conditions hereof, and in reliance on the
representations and warranties herein set forth and in the Financials heretofore delivered to Lender, Lender agrees to make available for Borrower’s use a revolving credit facility (“Revolving Credit Facility”) pursuant to
which Lender shall from time to time make advances to Borrower, on a revolving basis (“Revolving Credit Loan”). The aggregate principal amount of the Revolving Credit Loan at any one time outstanding shall not exceed FIFTEEN
MILLION AND NO/100 Dollars ($15,000,000.00). The Revolving Credit Loan shall be used by Borrower only for general working capital and corporate purposes (to include possible asset purchases), and the issuance of trade letters of credit and
standby letters of credit, all of which must be legal and proper corporate purposes and consistent with all applicable laws and statutes. Lender’s obligation to make the Revolving Credit Loan shall be in effect beginning on the date hereof and
shall continue until the Revolving Credit Loan Maturity Date (“Revolving Credit Facility Term”). 
  
 2.2. Revolving Credit Note. The Revolving Credit Loan shall be evidenced by the Revolving Credit Note. 
  
 2.3. General Interest Rate. The Revolving Credit Loan shall bear
interest on the average daily outstanding balance of principal at the rate specified in the Revolving Credit Note. 
  
 2.4. Payment of Revolving Credit Loan. The Revolving Credit Loan and interest accrued thereon shall be due and payable as follows: 
  
 (a) interest accrued on the Revolving Credit Loan through the last calendar
day of each month shall be due and payable in full on the first Business Day of the following month; 
  
 (b) to the extent not otherwise payable pursuant to this Agreement and the Revolving Credit Note, the principal amount of the Revolving Credit Loan shall
be due and payable in full on the Revolving Credit Loan Maturity Date; and 
  
 (c) notwithstanding any term to the contrary herein or in any of the Other Agreements, upon the occurrence of an Event of Default, Lender shall have the right at any time to demand immediate payment of the entire
Indebtedness relating to the Revolving Credit Facility. 

 2.5. Other Limitations. Lender shall have no obligation to make advances under the Revolving
Credit Loan if at the time there exists a Default or Event of Default, or if after the giving thereof, the limit on advances would be exceeded, or after termination of this Agreement. 
  
 2.6. Letters of Credit. Any letter of credit obtained with proceeds of the Revolving Credit Loan must expire on or
before the Revolving Credit Loan Maturity Date. 
  
 2.7. Fee
for Unused Availability. In addition to all other amounts due to Lender, there shall be due and payable an unused fee equal to 0.15% per annum (15 basis points), billed quarterly in arrears, beginning June 1, 2004 and continuing on the first
Business Day of each and every calendar quarter thereafter on the average daily balance on the unused balance available of the $15,000,0000.00 principal on the Revolving Credit Loan. 
  
 2.8. Term Option. Provided no Event of Default hereunder has occurred and is continuing, Borrower shall have the
right and option to extend the Revolving Credit Loan Maturity Date for an additional twelve month period (“Term Option”) upon and in accordance with the following terms and conditions: (a) Borrower shall give written notice to Lender at
least 30 days prior to the Revolving Credit Loan Maturity Date of its intent to exercise the Term Option; (b) Borrower and any guarantor shall execute and deliver to Lender all documentation as reasonably required by Lender in connection with the
Term Option; and (c) Borrower shall pay to Lender its reasonable attorneys’ fees and costs in connection therewith. In the event Borrower exercises the Term Option, the outstanding principal balance of the Revolving Credit Note shall convert to
a term loan and shall be due and payable in equal consecutive monthly installments of principal and interest in an amount determined by Lender which would allow the outstanding principal balance thereof to be repaid in twelve months, and shall be
evidenced by, and Borrower hereby agrees to execute, a note or other documentation reasonably required by Lender to evidence the same. 
  
 3. TERM LOAN 
  
 3.1. Term Loan; Maximum Amount; Use of Proceeds. Lender has, subject to the terms and conditions hereof and in reliance on the representations and
warranties set forth herein, and in the Financials heretofore delivered to Lender, made a term loan to Borrower in the principal amount of TWELVE MILLION AND NO/ 100 DOLLARS ($12,000,000.00) (“Term Loan”) as evidenced by the
Term Note. The proceeds of the Term Loan shall be used by Borrower to fund asset acquisitions and to refinance existing debt. 

 3.2. Term Note. The Term Loan is evidenced by the Term Promissory Note. 
  
 3.3. General Interest Rate. The Term Loan shall bear interest on the
daily outstanding balance of principal at the rate specified in the Term Promissory Note. 
  
 3.4. Payment of Term Loan. The Term Loan and interest accrued thereon shall be due and payable as follows: 
  
 (a) the principal amount of the Term Loan, in the amounts set forth on the Amortization Schedule attached as Schedule 1 hereto and hereby made a part
hereof, together with interest accrued thereon, shall be due and payable on the dates set forth on such Amortization Schedule, with a final payment of all outstanding principal and interest due and payable in full on the Term Loan Maturity Date; and

  
 (b) notwithstanding any term herein to the contrary or any
term of any Other Agreements, upon the occurrence of an Event of Default, Lender shall have the right to demand immediate payment of the entire Indebtedness relating to the Term Loan. 
  
 4. CONDITIONS PRECEDENT 
  
 4.1. Conditions Precedent to Advances. Notwithstanding any other provision of this Agreement or the Other Agreements
and without affecting in any manner the rights of Lender under this Agreement, it is understood and agreed that Lender shall have no obligation to make any advance under this Agreement unless and until the following conditions have been, and
continue to be, satisfied, all in form and substance reasonably satisfactory to Lender and its counsel: 
  
 (a) Lender shall have received, on or prior to the Closing Date unless otherwise indicated, the following documents: 
  
 (i) the Notes, duly executed and delivered; 
  
 (ii) evidence of the qualification and good standing of Borrower in each
state in which it is required to be qualified to do business except where its failure to qualify or its lack of good standing would not have a material. adverse affect on Borrower or its ability to conduct its business as currently conducted;

 (iii) certified copies of the resolutions of the Board of Directors of Borrower (a) authorizing the
Loans and the Hedge Agreement, and (b) authorizing execution and delivery of this Agreement and the Other Agreements by officers of the Borrower; 
  
 (iv) certificates of the secretary of the Borrower certifying to the Lender the names of its officers, the offices that each holds, the authenticity of
their signatures, and the completeness and accuracy of its articles of incorporation and bylaws; 
  
 (v) an opinion of Borrower’s counsel, duly executed and delivered; and 
  
 (vi) the Other Agreements, duly executed and delivered; 
  
 (b) Borrower shall have executed and delivered such additional documents and instruments as have been requested by Lender;

  
 (c) the representations and warranties contained herein shall
be true on and as of the Closing Date, and there shall exist on the Closing Date no Default or Event of Default; 
  
 (d) the advances on the terms and conditions herein provided (including the use by Borrower of the proceeds of the advances) shall not violate any
applicable law or governmental regulation (including, without limitation, Regulations G, T, U and X of the Board of Governors of the Federal Reserve System) and shall not subject Lender to tax (other than income and franchise taxes) and Lender shall
have received such certificates or other evidence as Lender may reasonably request to establish compliance with this condition; and 
  
 (e) all corporate and other proceedings taken or to be taken in connection with the transactions contemplated hereby and all documents incident thereto
shall be in substance and form reasonably satisfactory to Lender and its counsel, and Lender and its counsel shall have received all such counterpart originals or certified or other copies of such documents as Lender or its counsel may reasonably
request. 

 5. DEFAULT RATE; MAXIMUM RATE; OTHER PAYMENT TERMS. 
  
 5.1. Default Rate. Upon any Event of Default, and continuing until
the Event of Default is cured, the outstanding principal of the Loan and all other Indebtedness shall bear interest at the Lender’s Prime Rate plus three percent (3.0%), payable on demand, which rate shall apply as well before as after judgment
is entered on the Notes. 
  
 5.2. Maximum Interest Rate. In
no contingency or event whatsoever shall the interest rate charged pursuant to the terms of this Agreement exceed the highest rate permissible under applicable state and federal law. In the event that Lender has received interest hereunder in excess
of the highest allowed rate, Lender shall promptly refund such excess interest to Borrower. 
  
 5.3. Payments. All payments to Lender shall be payable at Lender’s address set forth in Section 9.9 hereof or at such other place or places as Lender may designate from time to time in writing to Borrower.

  
 5.4. Costs, Fees and Expenses. Costs, fees, expenses
and all other payments due Lender for which a due date is not expressed pursuant to this Agreement and the Other Agreements shall be payable within two (2) Business Days after demand. 
  
 5.5. Prepayment. The principal amount of the Term Loan may be prepaid in whole or in part at any time provided that
Borrower pays Lender such additional amounts deemed necessary by Lender to compensate Lender for all losses, costs and expenses incurred by Lender, including, without limitation, the amount which Borrower is obligated to pay Lender under the Hedge
Agreement and all other agreements between Lender and Borrower. 
  
 5.6. Rights of Set Off. Borrower hereby grants to Lender the right to set off against the Indebtedness any funds of Borrower on deposit with Lender, which right may be exercised by Lender at any time following an Event of Default.

  
 6. WARRANTIES AND REPRESENTATIONS 
  
 6.1. General Warranties and Representations. Borrower warrants and
represents that: 
  
 (a) Borrower is a corporation which is duly
organized, validly existing and in good standing under the laws of the State of Florida and is qualified to do business and is in good standing in all other places where it is 

 
required to be so qualified except where its failure to qualify would not have a material, adverse affect on Borrower or its ability to conduct its business
as currently conducted; 
  
 (b) Borrower is not a party to any
contract or agreement or subject to any charge, corporate restriction, judgment, decree or order having a material adverse effect, taken as a whole, on its business, property. assets, operations or condition, financial or otherwise, or is a party to
any labor dispute which would have a material adverse effect on the financial condition of Borrower; 
  
 (c) Borrower is not in violation of any applicable statute, regulation or ordinance of any governmental authorities or of any applicable order, writ,
injunction or decree or any court or any Federal, state, municipal or other governmental authority, which would in any respect adversely affect its business; 
  
 (d) Borrower has not received notice to the effect that it is not in full compliance with any of the requirements of ERISA, and the regulations
promulgated thereunder and, to the best of its knowledge, there exists no event described in Section 4043(3) thereof (“Reportable Event”); 
  
 (e) Borrower’s books and records, including, without limitation, computer programs, printouts and other computer materials and records are at the
locations identified on Schedule 2 attached hereto and hereby made a part hereof; 
  
 (f) the address specified in Section 9.9 is Borrower’s chief executive office and principal place of business; 
  
 (g) Borrower has the right and power and is duly authorized and empowered to enter into, execute, deliver and perform this Agreement and the Other
Agreements to which it is a party, and the officers executing and delivering this Agreement and such Other Agreements on behalf of Borrower are duly authorized and empowered to do so; 
  
 (h) the execution, delivery and performance by Borrower of this Agreement and the Other Agreements will not constitute a
violation of any applicable law or a breach of any provision contained in Borrower’s Articles of Incorporation or By-Laws or contained in any agreement, instrument or document to which Borrower is now a party or by which Borrower is bound;

 (i) this Agreement and the Other Agreements are legal, valid and binding obligations of Borrower,
enforceable in accordance with their respective terms; 
  
 (j)
Borrower has, and is current and in good standing with respect to, all governmental approvals, permits, certificates, inspections, consents and franchises necessary to continue to conduct its business as heretofore conducted and to own or lease and
operate the assets now owned or leased by it; and no authorization, consent or approval of any federal, state, municipal or other governmental regulatory authority is required in connection with either the execution and delivery by Borrower of this
Agreement, the Notes or the Other Agreements to which Borrower is a party, or the performance of its obligations thereunder; and 
  
 (k) the Financials were prepared in accordance with generally accepted accounting principles and present fairly the assets, liabilities and financial
condition and results of operations of Borrower at, and as of, the date thereof; there has been no material and adverse change in the liabilities or financial condition of Borrower since the date of the Financials; and there is no material
litigation or bankruptcy or governmental actions or proceedings which are pending, or to the best of Borrower’s knowledge, threatened, against Borrower which might result in any material, adverse change in Borrower’s financial
condition. 
  
 6.2. Survival of Warranties and
Representations. All representations and warranties of Borrower contained in this Agreement and the Other Agreements shall survive the execution, delivery and acceptance thereof by the parties thereto and the closing of the transactions
described therein or related thereto. 
  
 7. COVENANTS AND
CONTINUING AGREEMENTS 
  
 7.1. Affirmative
Covenants. Borrower shall: 
  
 (a) prepare financial
statements and cause to be furnished to Lender the following: 
  
 (i) within ninety (90) days after the close of each fiscal year of Borrower, audited financial statements reflecting its operations during such fiscal year, including, without limitation, a balance sheet, profit and loss statement and
statement of cash flows, all with supporting schedules, all on a consolidated and consolidating basis and in reasonable detail; and 

 (ii) quarterly financial statements, including, without limitation, a balance sheet, profit and loss
statement and statement of cash flows, with supporting schedules, as soon as available and in any event within forty-five (45) days after the close of each such period, all in reasonable detail and prepared in conformity in all material respects
with that of the preceding year, which statements shall be certified as to their correctness by a principal financial officer of Borrower; and 
  
 (iii) copies of all filings with the Securities and Exchange Commission, including but not limited to 10-Q and 10-K reports, in the same manner and time
frame as required by the Securities and Exchange Commission; and 
  
 (iv) Subject to the provisions of Section 9.14, such other data and information (financial and otherwise) as Lender, from time to time, may reasonably request, bearing upon or related to Borrower’s financial condition or results of
operations or income. 
  
 (b) within forty-five (45) days after
the close of each quarter, submit to Lender a certificate of compliance executed by an authorized officer of Borrower certifying that the Borrower is in full compliance with all terms and conditions of this Agreement and the Other Agreements.

  
 (c) maintain a “Coverage Ratio” of not less
than 2.50 to 1.00, calculated at Borrower’s fiscal year end and quarterly on the last day of each fiscal quarter, on a rolling four quarters basis. For purposes hereof, “Coverage Ratio” shall mean the sum of earnings before
interest, taxes, depreciation, and amortization (EBITDA) divided by the sum of current maturities of long term debt and capital leases plus interest expense; if the Borrower acquires substantially all assets or stock of a previously unrelated
business entity, Borrower may utilize the historical income statement of the acquired entity in calculating the Coverage Ratio as if the acquired entity had been merged into Borrower for the prior four quarters; and, if the Coverage Ratio is
calculated inclusive of a merged entity historical income statement, the calculation of the ratio and the historical financial information of the acquired/merged entity must be presented in form and content acceptable to Lender. 
  
 (d) maintain a “Minimum Tangible Net Worth” of not less
than $75,000,000.00 as of December 31, 2003, increasing by fifty percent (50%) of Borrower’s net income (to the extent positive) annually thereafter, less the aggregate price paid by Borrower to purchase treasury stock of Borrower after
December 31, 2003. Borrower shall be permitted to purchase and retire up to $5,000,000.00 in the aggregate for treasury stock of Borrower acquired after December 31, 2003. “Tangible Net Worth” shall mean total assets excluding

 
assets owed to Borrower from an officer, an Affiliate or a Subsidiary, and excluding the aggregate amount of Borrower’s goodwill, franchises, licenses,
patents, trademarks, trade names, copyrights, service marks, brand names, and other intangible assets) minus Total Liabilities. 
  
 (e) at all times, maintain a ratio of Total Liabilities to Tangible Net Worth of not more than 1.00 to 1.00. 
  
 (f) notify Lender immediately upon its formation of any subsidiaries, which
subsidiaries shall execute any and all documents required by Lender, in its sole discretion, necessary to add them as guarantors of the Indebtedness. 
  
 (g) maintain a demand deposit account with Lender. 
  
 (h) pay in full immediately any draw made by Borrower on any letter of credit. 
  
 (i) maintain insurance on all of its assets in the full insurable value thereof and with insurers acceptable to Lender; and

  
 (j) Borrower shall cause any Subsidiary or Affiliate that is
more than 50% owned by Borrower to execute a guaranty of the Indebtedness in form and substance satisfactory to Lender. 
  
 7.2. Negative Covenants. Without Lender’s prior written consent, Borrower shall not: 
  
 (a) create, assume, or permit to exist any mortgage, security deed, deed of
trust, pledge, lien, charge or other encumbrance on any of its assets, whether now owned or hereafter acquired, other than (i) liens for taxes contested in good faith, or (ii) liens accruing by law for employee benefits, or (iii) liens identified on
Schedule 3 attached hereto; 
  
 (b) guarantee or otherwise become
responsible for obligations of any other person or entity in an amount in excess of $1,000,000.00 per fiscal year; 
  
 (c) merge or consolidate with any Person or acquire all or substantially all of the assets of, or 50% or more of any class of equity interest of, any
Person, or sell, lease, assign or otherwise dispose of a substantial portion of its assets (other than sales of obsolete or worn-out equipment and sales of inventory in the ordinary course of business), or sell or otherwise dispose of stock of any
Subsidiary provided that Borrower may merge with (so long as the 

 
Borrower is the survivor of such merger or the current shareholders of Borrower continue to own a majority of the voting stock of the survivor), or acquire
all or substantially all the assets of, a corporation or other entity as part of an acquisition of a business which is in the same line of business as the Borrower (so long as it is not a hostile takeover) if the aggregate consideration does not
exceed 35% of Borrower’s net worth; 
  
 (d) in no event
shall Borrower declare or pay a dividend if there shall exist an Event of Default or a condition which, upon the giving of notice or lapse of time or both, would become an Event of Default under this Agreement or the Other Agreements; or 

 
 (e) change its fiscal year. 
  
 7.3. Unfunded ERISA Liabilities. Borrower shall, and shall cause each
Subsidiary to, (i) keep in full force and effect any and all Plans (other than multi-employer Plans) and shall not withdraw from any multi-employer Plans, which may, from time to time, come into existence under ERISA, unless such Plans can be
terminated or such withdrawal can be effected without liability to Borrower or such Subsidiary in connection with such termination or withdrawal; (ii) make its contributions to all of the Plans in a timely manner and in a sufficient amount to comply
with the requirements of ERISA; (iii) comply with all material requirements of ERISA which relate to Plans (including without limitation the minimum funding requirements of Section 302 of ERISA); (iv) notify Lender promptly upon receipt by Borrower
or such Subsidiary of the institution of any proceeding or other action which may result in the termination of any Plans; (v) notify Lender in writing (x) promptly upon the occurrence of any Reportable Event other than a termination, partial
termination or merger of a Plan or a transfer of a Plan’s assets, and (y) prior to any termination, partial termination or merger of a Plan or a transfer of a Plan’s assets. 
  
 7.4. Insurance; Payment of Premiums. Borrower shall maintain insurance with financially sound and reputable insurers
in such amounts and against such liabilities and hazards as customarily is maintained by other companies operating similar businesses and, in any event, in an amount satisfactory to Lender. 
  
 7.5. Survival of Obligations Upon Termination of Agreement. No
termination (regardless of cause or procedure) of this Agreement or the Other Agreements shall in any way affect or impair the powers, obligations, duties, rights and liabilities of Borrower or Lender relating to (i) any transaction or event
occurring, or matter existing, prior to such termination, (ii) any undertaking, agreement, covenant, warranty or representation of Borrower or Lender with respect to such transaction, event or matter. 

 7.6. Deposit Account. Lender may credit any advance of the Revolving Credit Loan into the demand
deposit account maintained by Borrower with Lender, and Lender may debit such account for any amounts due to Lender. 
  
 8. EVENTS OF DEFAULT: RIGHTS AND REMEDIES ON DEFAULT 
  
 8.1. Events of Default. The occurrence of any one or more of the following events shall constitute an “Event
of Default”: 
  
 (a) Borrower fails to pay all or any
portion of the Indebtedness within five (5) Business Days after due and payable; 
  
 (b) Borrower, in the reasonable discretion of Lender, fails to perform, keep or observe any other material term, provision, condition, covenant, warranty or representation contained in this Agreement or in any of the
Other Agreements, which is required to be performed, kept or observed by Borrower; 
  
 (c) a default shall occur under any other agreement, document or instrument, other than this Agreement or the Other Agreements, to which Borrower is a party, if such default is in the performance of an obligation to
pay money or if the default would, in Lender’s judgment, have a material adverse effect on Borrower’s business or Borrower’s ability to repay the Indebtedness; 
  
 (d) any representation, warranty, statement, report, financial statement or certificate made or delivered by Borrower or
any of its officers, employees or agents, to Lender is not true and correct in any material respect; 
  
 (e) any of Borrower’s or any Subsidiary’s assets are attached, seized, levied upon, or subjected to, a writ or distress warrant, or come within
the possession of any receiver, trustee, custodian or assignee for the benefit of creditors, which is not discharged within thirty (30) days of commencement; or an application is made by any Person other than Borrower or a Subsidiary for the
appointment of a receiver, trustee or custodian for any of Borrower’s or any Subsidiary’s assets and such application is not discharged within thirty (30) days; 
  
 (f) an application is made by Borrower or a Subsidiary for the appointment of a receiver, trustee or custodian for any of
Borrower’s or any Subsidiary’s assets; a petition under any section or chapter of the Bankruptcy 

 
Code or any similar law or regulation shall be filed by Borrower or a Subsidiary; or Borrower or a Subsidiary makes an assignment for the benefit of its
creditors or any case or proceeding is filed by Borrower or a Subsidiary for its dissolution, liquidation or termination and such case or proceeding is not discharged within thirty (30) days; 
  
 (g) Borrower or a Subsidiary ceases to conduct its business as now conducted
or is enjoined, restrained or in any way prevented by court order from conducting all or any material part of its business affairs; or a petition under any section or chapter of the Bankruptcy Code or any similar law or regulation is filed against
Borrower or a Subsidiary for its dissolution or liquidation and such petition is not discharged within thirty (30) days; 
  
 (h) a notice of lien, levy or assessment is filed of record with respect to all or any of Borrower’s or any Subsidiary’s assets by the United
States government, or any department, agency or instrumentality thereof, or by any state, county, municipal or other governmental agency, or if any taxes or debts owing at any time or times hereafter to any one of these becomes a Lien upon any of
the Borrower’s or any Subsidiary’s assets other than inchoate liens; 
  
 (i) Borrower or a Subsidiary becomes insolvent or admits in writing its inability to pay its debts as they mature; 
  
 (j) any Plan shall be terminated within the meaning of Title IV of ERISA, or a trustee shall be appointed by an appropriate United States District Court
to administer any Plan or the Pension Benefit Guaranty Corporation (or any successor thereto) shall institute proceedings to terminate any Plan or to appoint a trustee to administer any Plan, which proceedings are not dismissed or withdrawn within
thirty (30) days thereafter, if, as of the date of such termination, withdrawal, appointment or institution of proceedings, the liability (after giving effect to the tax consequences thereof) of Borrower or any Subsidiary to the Pension Benefit
Guaranty Corporation (or any successor thereto) for unfunded guaranteed vested benefits under the Plan exceeds the current value of assets accumulated in such Plan by more than $100,000.00 (or, in the case of a termination involving Borrower or any
Subsidiary as a “substantial employer” (as defined in Section 4001(a)(2) of ERISA), the withdrawing employer’s proportionate share of such excess shall exceed such amount); 
  
 (k) any transfer of stock in Borrower which has the effect of changing the voting control of Borrower on the Closing Date;

  
 (l) the occurrence of a default in payment or performance by
Borrower of any of its obligations under any other loans, contracts, or agreements, or the occurrence of a default by any Subsidiary or Affiliate of Borrower under any loans, contracts or agreements with Lender or its affiliates; or 

 (m) any monetary judgment or assessment is entered against Borrower, in an amount greater than
$1,000,000.00, which is not discharged or stayed within thirty (30) days of entry. 
  
 8.2. Acceleration of Indebtedness. Upon the occurrence of an Event of Default, all of the Indebtedness may, at the option of Lender and without demand, notice or legal process of any kind, be declared, and
immediately shall become, due and payable. 
  
 8.3. Notice.
Any notice required to be given by Lender, if given ten (10) days prior to such proposed action, shall constitute commercially reasonable and fair notice thereof to Borrower. 
  
 9. MISCELLANEOUS 
  
 9.1. Assignment and Sale of Interests. Without Lender’s prior written consent, Borrower may not sell, assign or transfer this Agreement or the
Other Agreements or any portion hereof or thereof, including, without limitation, Borrower’s rights, title, interests, remedies, powers and/or duties hereunder or thereunder. 
  
 9.2. Expenses (Including Attorneys’ Fees). Borrower shall reimburse Lender on demand for all following fees,
costs, expenses and charges (including, but not limited to, attorneys’ fees) of, or incidental to: 
  
 (a) the preparation and administration of this Agreement, all Other Agreements, any amendment of or modification of this Agreement or the Other
Agreements; 
  
 (b) any litigation, contest, dispute, suit,
proceeding or action including, without limitation, trial, mediation, arbitration, administrative and bankruptcy proceedings and appeals therefrom, (whether instituted by Lender, Borrower or any other Person other than Borrower) in any way relating
to, or protecting Lender’s interests in or under, this Agreement or the Other Agreements; 
  
 (c) all state and federal taxes (other than income taxes) incurred by Lender in connection with the execution or recordation of this Agreement and any
Other Agreements or otherwise incurred by Lender in connection with the Indebtedness, including, without limitation, such documentary stamp taxes and intangible personal property taxes as are now or hereafter due and payable pursuant to the laws of
the State of Florida; and 

 (d) all fees, costs, expenses and charges incurred by Lender in connection with the filing and recording
of this Agreement and any Other Agreements in the public records or with any state or federal authority. 
  
 9.3. Waiver by Lender. Lender’s failure, at any time or times hereafter, to require strict performance by Borrower of any provision of this
Agreement shall not waive, affect or diminish any right of Lender thereafter to demand strict compliance and performance. Any suspension or waiver by Lender of an Event of Default shall not suspend, waive or affect any other Event of Default,
whether the same is prior or subsequent thereto and whether of the same or of a different type. None of the undertakings, agreements, warranties, covenants and representations contained in this Agreement or the Other Agreements and no Event of
Default shall be deemed to have been suspended or waived by Lender, unless such suspension or waiver is by an instrument in writing signed by an authorized officer of Lender and directed to Borrower specifying such suspension or waiver. 

 
 9.4. Severability. Wherever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid under applicable law. If, however, any provision of this Agreement shall be prohibited by, or be invalid under, applicable law, such provision shall be ineffective to the
extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement, unless the ineffectiveness of such provision materially and adversely alters the benefits accruing to
either party hereunder. 
  
 9.5. Parties. This Agreement
and the Other Agreements shall be binding upon and inure to the benefit of the successors and assigns of Borrower and Lender. This provision, however, shall not be deemed to modify Section 8.1 hereof. 
  
 9.6. Conflict of Terms. The Other Agreements and all Schedules and
Exhibits hereto are incorporated in this Agreement by this reference thereto. Except as otherwise provided in this Agreement and except as otherwise provided in the Other Agreements by specific reference to the applicable provision of this
Agreement, if any provision contained in this Agreement is in conflict with, or inconsistent with, any provision in the Other Agreements, the provision contained in this Agreement shall govern and control. 
  
 9.7. General Waivers by Borrower. Except as otherwise expressly
provided for in this Agreement, Borrower waives (i) presentment, demand and 

 
protest and notice of presentment, protest, default, non-payment, maturity, release, compromise, settlement, extension or renewal of any or all commercial
paper, accounts, contract rights, documents, instruments, chattel paper and guaranties at any time held by Lender on which Borrower may, in any way, be liable and hereby ratifies and confirms whatever Lender may do in this regard; (ii) all rights to
notice of a hearing prior to Lender’s taking possession or control of, or to Lender’s reply, attachment or levy upon, any bond or security which might be required by any court prior to allowing Lender to exercise any of Lender’s
remedies; and (iii) the benefit of all valuation, appraisement and exemption laws. Borrower acknowledges that it has been advised by counsel with respect to this Agreement and the transactions evidenced by this Agreement. 
  
 9.8. GOVERNING LAW. THIS AGREEMENT AND, UNLESS OTHERWISE EXPRESSLY
PROVIDED THEREIN, THE OTHER AGREEMENTS, SHALL BE INTERPRETED, AND THE RIGHTS AND LIABILITIES OF THE PARTIES HERETO SHALL FOR ALL PURPOSES BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF FLORIDA APPLICABLE TO
AGREEMENTS EXECUTED, DELIVERED AND PERFORMED WITHIN SUCH STATE NOTWITHSTANDING EXECUTION OF THIS AGREEMENT AND THE OTHER AGREEMENTS OUTSIDE THE STATE OF FLORIDA, WITHOUT GIVING EFFECT TO THE PRINCIPLES AND CONFLICTS OF LAWS. AS PART OF THE
CONSIDERATION FOR NEW VALUE THIS DAY RECEIVED, BORROWER HEREBY CONSENTS TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT LOCATED WITHIN THE CITY OF TAMPA, STATE OF FLORIDA, AND WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS UPON BORROWER, AND
CONSENTS THAT ALL SUCH SERVICE OF PROCESS BE MADE BY REGISTERED MAIL DIRECTED TO BORROWER AT THE ADDRESS STATED ON THE FIRST PAGE HEREOF AND SERVICE SO MADE SHALL BE DEEMED TO BE COMPLETED UPON ACTUAL RECEIPT THEREOF. BORROWER WAIVES ANY OBJECTION
TO VENUE OF ANY ACTION INSTITUTED HEREUNDER AND CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY THE COURT. 
  
 9.9. Notice. Except as otherwise provided herein, any notices, requests and demands to or upon a party hereto shall be in writing and shall be sent
by certified or registered mail, return receipt requested, by personal delivery against receipt, or by telegraph, telex or telecopy, addressed as follows, and shall be deemed validly served and given on the date of receipt as shown on the return
receipt if delivered by certified mail, on the date of delivery if done by personal delivery and upon confirmation of receipt if sent by telegraph, telex or telecopy: 

					
	Lender:	 	WACHOVIA BANK, NATIONAL ASSOCIATION
	 	 	10 South Jefferson Street – VA7391
	 	 	Roanoke, Virginia 24011
	 	 	And
	 	 	WACHOVIA BANK, NATIONAL ASSOCIATION
	 	 	POST OFFICE BOX 13327
	 	 	Mail Code VA7391
	 	 	Roanoke, Virginia 24040
		
	With Copy to:        	 	WACHOVIA BANK, NATIONAL ASSOCIATION
	 	 	100 S. Ashley Street
	 	 	Tampa, Florida 33601
	 	 	Attn:    Timothy J. Coop, Senior Vice President
	 	 	Telephone:	 	(813) 276-6467
	 	 	Telecopy:	 	(813) 276-6454
		
	Borrower:	 	SUPERIOR UNIFORM GROUP, INC.
	 	 	10055 Seminole Boulevard
	 	 	Seminole, Florida 33772-2539
	 	 	Attn:    Andrew D. Demott, Jr.,
	 	 	 Chief Financial Officer

	 	 	Telephone:	 	(727) 397-9611
	 	 	Telecopy:	 	(727) 803-2641
		
	With Copy to:	 	 __________________________________

	 	 	__________________________________
	 	 	__________________________________
	 	 	Attn:  _____________________________
	 	 	Telephone:  (            )_________________
	 	 	Telecopy:    (            )_________________

  
 or to such other address as each party
may designate for itself by like notice given in accordance with this Section 9.9. Notice shall also be deemed validly served and given on the date that a party rejects or refuses to accept delivery or the date of an inability to effectuate delivery
because of a changed address of which no notice was given in accordance with this Section. Any written notice that is not sent in conformity with the provisions hereof shall be nevertheless be effective on the date that such notice is actually
received by the noticed party. 
  
 9.10. Section Titles.
The section titles contained in this Agreement are, and shall be, without substantive meaning or content of any kind whatsoever and are not a part of the agreement between the parties hereto. 

 9.11. Modification of Agreement. This Agreement and the Other Agreements may not be modified,
altered or amended, except in writing signed by Borrower and Lender. 
  
 9.12. Tax Indemnity. Borrower and Lender have concluded that Florida document excise taxes are not due in connection with this Agreement or any of the other Loan Documents because the Loan Documents have been executed by Borrower and
the other signatories, and delivered to Lender, outside the State of Florida. Nevertheless, Borrower shall pay to Lender in full, on demand, the amount of all document excise taxes, including interest and penalties, that either Lender or the Florida
Department of Revenue later deem to be due and applicable with respect to the Notes or any of the other Loan Documents, or any other agreement between or among Borrower, the Subsidiaries, and Lender. In addition, Borrower shall reimburse Lender for
any document excise taxes, including penalties and interest, paid by Lender and all costs and attorney’s fees that Lender incurs in defending against an imposition of such taxes on any of the Notes, this Agreement, the other Loan Documents and
any other agreement between or among Borrower, the Subsidiaries and Lender. 
  
 9.13. Waiver of Claims. Borrower hereby knowingly, voluntarily, irrevocably, and intentionally waives and releases Lender (and its officers, directors, shareholders, representatives, and agents) from : (a) all
claims, demands, suits, and causes of action, whether at law or in equity, that Borrower ever had, has now, or might have in the future, by reason of any matter, cause or thing whatsoever arising before the date and time of execution of this
amendment, with respect to: (i) any breach by Lender (or an officer, director, shareholder, representative, or agent of lender) of its obligations or promises under the Loan Documents or otherwise; and (ii) any action or inaction by Lender (or an
officer, director, shareholder, representative, or agent of Lender) that is alleged to have had an injurious effect on the business, operation or management of Borrower; and (b) any defense, counterclaim, setoff, right of recoupment or abatement, or
other claim against Lender (or an officer, director, shareholder, representative, or agent of Lender) relating to any matter, cause or thing whatsoever arising before the date and time of execution of this amendment. 
  
 9.14. Confidentiality. Lender agrees to take, and to cause its
Affiliates to take, normal and reasonable precautions and exercise due diligence to maintain the confidentiality of all non-public information provided to it by Borrower or any Subsidiary under this Agreement, and neither the Lender nor its
Affiliates shall use any such information other than in connection with other business now or hereafter existing or contemplated by Borrower or any Subsidiary; except the extent such information (a) was or becomes generally 

 
available to the public other than as a result of disclosure by Lender; or (b) was or becomes available on a non-confidential basis from a source other than
Borrower or any of its Affiliates, provided that such source is not bound by a confidentiality agreement with Borrower or any of Borrower’s Affiliates, provided, however, that Lender may disclose such information (i) at the request or pursuant
to any requirement of any governmental authority to which Lender is subject or in connection with an examination of Lender by any such authority; (ii) pursuant to subpoena or other court process; (iii) to the extent reasonably required in connection
with the exercise of any remedy hereunder; (iv) to Lender’s independent auditors and other professional advisors; (v) to any participant or assignee, actual or potential (or their respective professional advisors), or to any counterparty (or
its professional advisors) to any swap, securitization or derivative transaction referencing or involving any of its rights or obligations as a lender under this Agreement, actual or potential, provided that such Person agrees in writing to keep
such information confidential to the same extent required of Lender hereunder; and (vi) as expressly permitted under the terms of any other document or agreement to which Borrower or any Subsidiary is party with Lender or its Affiliates. 

 
 IN WITNESS WHEREOF, and intending to be legally bound hereby, this
Agreement has been duly executed and delivered by the undersigned as of the day and year specified at the beginning hereof. 
  

			
	 BORROWER:

	
	SUPERIOR UNIFORM GROUP, INC.,
	 A Florida Corporation

		
	 By:
	 	 /s/ Andrew D. Demott, Jr.

	 	 	 Andrew D. Demott, Jr.,

	 	 	 As a Senior President & Chief Financial Officer

	
	 LENDER:

	
	WACHOVIA BANK, NATIONAL ASSOCIATION
		
	 By:
	 	 /s/ Timothy J. Coop

	 	 	Timothy J. Coop
	 	 	As a Senior Vice President

 STATE OF
                  ) 
 COUNTY OF
              ) 
  
 The foregoing instrument was acknowledged before me on                 , 2004 by Andrew D. Demott, Jr., as a Senior Vice President
and as the Chief Financial Officer of SUPERIOR UNIFORM GROUP, INC., a Florida corporation, on behalf of the corporation.              This person is personally known to me or
             produced a driver’s license as identification (check one). 
  

	
	

	 Notary Public

	 Commission No.
                                        
                    

	 Commission Expiration Date:
                    

  
 STATE OF
                  ) 
 COUNTY OF
              ) 
  
 The foregoing instrument was acknowledged before me on                 , 2004 by Timothy J. Coop, as a Senior Vice President of
WACHOVIA BANK, NATIONAL ASSOCIATION, on behalf of the bank.              This person is personally known to me or
             produced a driver’s license as identification (check one). 
  

	
	

	 Notary Public

	 Commission No.
                                        
                    

	 Commission Expiration Date:
                    

 Schedule 1 
  

Amortization Schedule 

 Schedule 2 
  

Locations 
  

			
	 Superior Uniform Group, Inc.
	  	 10055 Seminole Boulevard
 Seminole, Florida 33772-2539

		
	 Fashion Seal Corporation
	  	 2325-B Renaissance Drive, Suite 10
 Las Vegas, Nevada 89119

 Schedule 3 
  

Liens 
  
 1. Liens for taxes or assessments or other government charges or levies if not yet due and payable or, if due and payable, being contested in good faith
by appropriate proceedings. 
  
 2. Purchase money security
interests perfected in accordance with applicable law. 
  
 3.
Liens reflected by Uniform Commercial Code financing statements filed in respect of Capital Leases permitted hereunder and true leases of the Borrower and its Subsidiaries, including, without limitation, the following: 
  

							
	 Secured Party

	 	 Date Filed

	 	 File No.

	 	 Collateral

	 Winthrop Resources
 Corporation
 11100 Wayzata Blvd
 Suite 800
 Minnetonka, MN 55305
	 	Nov. 15, 1999	 	990000259482	 	Computer Equipment
				
	 Winthrop Resources
 Corporation
 11100 Wayzata Blvd
 Suite 800
 Minnetonka, MN 55305
	 	Aug. 7, 2000	 	200000181175	 	Computer Equipment
				
	 Winthrop Resources
 Corporation
 11100 Wayzata Blvd
 Suite 800
 Minnetonka, MN 55305
	 	February 20, 2001	 	200100038758	 	Computer Equipment

  
 4. The Borrower
acquired certain assets of Univogue, Inc. pursuant to that certain Asset Purchase Agreement by and between Univogue, Inc., Curtis Hougland, Sylvia Hougland and Superior Uniform Group, Inc. dated February 19, 2004 (the “Asset Purchase
Agreement”). Under the Asset Purchase Agreement, certain equipment leases were assigned to, and assumed by, the Borrower. The following financing statements on file with the Texas Secretary of State, which show the Debtor as Univogue, Inc.,
12091 Forestgate Dr., Dallas, Texas 75243, describe equipment under equipment leases assumed by Borrower. 

							
	 Secured Party

	 	 Date Filed

	 	 File No.

	 	 Collateral

	 Newcourt Communications
 Finance Corp.
 2 Gatehall Drive
 Parsippany, NJ 07054
	 	Dec. 2, 1999	 	99-238966	 	 Computer and Telecommunications
 Equipment

				
	 IBM Credit Corp.
 1 Northcastle Drive
 Armonk, NY 10504-2575
	 	Feb. 7, 2002	 	02-0018638816	 	Computer Equipment
				
	 Dell Financial Services, L.P.
 14050 Summit Drive
 Building A, Suite 101
 Austin, TX 78758
	 	June 25, 2002	 	02-0034992584	 	Computer Equipment
				
	 IBM Credit Corp.
 1 Northcastle Drive
 Armonk, NY 10504-2575
	 	July 5, 2002	 	02-0036124402	 	Computer Equipment
				
	 Dell Financial Services
 3500-A Wadley Place
 Austin, TX 78758
	 	Nov. 12, 2002	 	03-0007848404	 	Computer Equipment
				
	 Guaranty Bank
 8333 Douglas Avenue
 Dallas, TX 75225
	 	Nov. 12, 2002	 	03-0007941822	 	Inkjet Plotter

  
 5. Liens imposed by
the operation of law, such as mechanics’, materialmen’s, landlords’, warehousemen’s, and carriers’ Liens, and other similar Liens, securing obligations incurred in the ordinary course of business which are not past due for
more than thirty (30) days or which are being contested in good faith by appropriate proceedings. 
  
 6. Liens under workers’ compensation, unemployment insurance, Social Security, or similar legislation which, in the aggregate, do not materially
interfere with the occupation, use, and enjoyment by Borrower or any Subsidiary of the property or assets encumbered thereby in the normal course of its business or materially impair the value of the property subject thereto. 

 THIS RENEWAL REVOLVING LINE OF CREDIT PROMISSORY NOTE SUPERCEDES AND REPLACES IN ITS ENTIRETY THAT CERTAIN RENEWAL
REVOLVING CREDIT NOTE BETWEEN THE PARTIES DATED MARCH 27, 2001 IN THE ORIGINAL STATED PRINCIPAL AMOUNT OF $15,000,000.00. 
  
 THIS RENEWAL REVOLVING LINE OF CREDIT PROMISSORY NOTE WAS EXECUTED BY BORROWER AND DELIVERED TO LENDER OUTSIDE OF THE STATE OF FLORIDA, IS NOT SECURED BY FLORIDA REAL
ESTATE, AND IS EXEMPT FROM DOCUMENTARY STAMP TAXATION. 
  
 RENEWAL REVOLVING LINE OF CREDIT PROMISSORY NOTE 
  

			
	 $15,000,000.00
	 	April 27, 2004

  
 SUPERIOR UNIFORM GROUP, INC.

 10055 Seminole Boulevard 
 Seminole, Florida 33772-2539

 (“Borrower”) 
  
 WACHOVIA BANK, NATIONAL ASSOCIATION, 
 f/k/a FIRST UNION NATIONAL
BANK 
 214 North Hogan Street - FL0070 
 Jacksonville,
Florida 32202 
 (Hereinafter referred to as “Bank”) 
  
 Borrower promises to pay to the order of Bank, in lawful money of the United States of America, at its office indicated above or wherever else Bank may specify, the sum
of Fifteen Million and No/100 Dollars ($15,000,000.00) or such sum as may be advanced and outstanding from time to time, with interest on the unpaid principal balance at the rate and on the terms provided in this Promissory Note (including all
renewals, extensions or modifications hereof, this “Note”). 
  
 LINE OF CREDIT. Borrower may borrow, repay and re-borrow, and, upon the request of Borrower, Bank shall advance and re-advance under this Note from time to time until the maturity hereof (each an “Advance” and together the
“Advances”), so long as the total principal balance outstanding under this Note at any one time does not exceed the principal amount stated on the face of this Note, subject to the limitations described in any loan agreement to which this
Note is subject. Bank’s obligation to make Advances under this Note shall terminate if a Default (as defined in the other Loan Documents) under any Loan Document occurs. As of the date of each proposed Advance, Borrower shall be deemed to
represent that each representation made in the Loan Documents is true as of such date. 

 If Borrower subscribes to Bank’s cash management services and if such services are applicable to this line of
credit, the terms of such service shall control the manner in which funds are transferred between the applicable demand deposit account and the line of credit for credit or debit to the line of credit. 
  
 USE OF PROCEEDS. Borrower shall use the proceeds of the loan(s) evidenced by this Note
for the commercial purposes of Borrower, as follows: business purposes. 
  
 SECURITY. This Note is extended on an unsecured basis, provided however, that Borrower shall at all times be in compliance with Section 8.2 of the Amended and Restated Loan Agreement. 
  
 INTEREST RATE. Interest shall accrue on the unpaid principal balance of this Note
during each Interest Period from the date hereof at the LIBOR Market Index Rate plus 0.60%, as that rate may change from day to day in accordance with changes in the LIBOR Market Index Rate (“Interest Rate”). “LIBOR Market Index
Rate” means the rate for 1 month U.S. dollar deposits as reported on Telerate page 3750 as of 11:00 a.m., London time, on such day, or if such day is not a London business day, then the immediately preceding London business day (or if not so
reported, then as determined by the Bank from another recognized source or interbank quotation). 
  
 DEFAULT RATE. In addition to all other rights contained in this Note, if a default in the payment of Obligations occurs, all outstanding Obligations, other than Obligations under any swap agreements (as defined
in 11 U.S.C. § 101) between Borrower and Bank or its affiliates, shall bear interest at the Interest Rate plus 3% (“Default Rate”). The Default Rate shall also apply from demand until the Obligations or any judgment thereon is paid in
full. 
  
 INTEREST AND FEE(S) COMPUTATION (ACTUAL/360). Interest and fees,
if any, shall be computed on the basis of a 360-day year for the actual number of days in the applicable period (“Actual/360 Computation”). The Actual/360 Computation determines the annual effective yield by taking the stated (nominal)
rate for a year’s period and then dividing said rate by 360 to determine the daily periodic rate to be applied for each day in the applicable period. Application of the Actual/360 Computation produces an annualized effective interest rate
exceeding the nominal rate. 
  
 REPAYMENT TERMS. This Note shall be due and
payable in consecutive monthly payments of accrued interest only, commencing on April 26, 2004, and 

 continuing on the same day of each month thereafter until fully paid. In any event, this Note shall be due and payable in
full, including all principal and accrued interest, on June 30, 2007, the “Maturity Date” of this Note. Provided Borrower is not in default under this Note or under any of the “Loan Documents” (as hereinafter defined), Borrower
shall have the right and option to extend the Maturity Date for an additional twelve month period (“Term Option”) upon and in accordance with the following terms and conditions: (a) Borrower shall give written notice to Bank at least 30
days prior to the Maturity Date of its intent to exercise the Term Option; (b) Borrower and any guarantor shall execute and deliver to Bank all documentation as reasonably required by Bank in connection with the Term Option; and (c) Borrower shall
pay to Bank its reasonable attorneys’ fees and costs in connection therewith. 
  
 In the event Borrower exercises the Term Option, the outstanding principal balance of this Note shall convert to a term loan and shall be due and payable in equal consecutive monthly installments of principal and interest in an amount
determined by Bank which would allow the outstanding principal balance hereof to be repaid in twelve months, and shall be evidenced by, and Borrower hereby agrees to execute a note or other documentation reasonably required by Bank to evidence the
same. 
  
 As used herein, “Loan Documents” shall mean this Note, the
Amended and Restated Loan Agreement of even date herewith, and all other documents executed and delivered in connection therewith. 
  
 AUTOMATIC DEBIT. Borrower hereby directs Lender to debit its Account No. 2000002261874 maintained with Lender to make all payments required hereunder. 

 
 RESCISSION OF PAYMENTS. If any payment received by Bank under this Note or under
any of the other Loan Documents is rescinded, avoided or for any reason returned to Bank because of any adverse claim or threatened action, the returned payment shall remain as an obligation of all persons and entities liable under this Note or the
other Loan Documents as though such payment had not been made. 
  
 LOAN
AGREEMENT; LOAN DOCUMENTS; OBLIGATIONS. This Note is subject to the terms and conditions of that certain Amended and Restated Loan Agreement of even date herewith between Bank and Borrower (the “Loan Agreement”). All capitalized terms
not otherwise defined herein shall have such meaning as assigned to them in the Loan Agreement. The term “Obligations” used in this Note refers to any and all indebtedness and all other obligations under this Note, all other obligations as
defined in the respective Loan Documents, and all obligations under any swap agreements as defined in 11 U.S.C. § 101 between Bank and Borrower whenever executed. 

 APPLICATION OF PAYMENTS. Monies received by Bank from any source for application toward payment of the Obligations
shall be applied to accrued interest and then to principal. Upon the occurrence of a default in the payment of the Obligations or a Default (as defined in the other Loan Documents) under any other Loan Document, monies may be applied to the
Obligations in any manner or order deemed appropriate by Bank. 
  
 If any payment
received by Bank under this Note or other Loan Documents is rescinded, avoided or for any reason returned by Bank because of any adverse claim or threatened action, the returned payment shall remain payable as an obligation of all persons liable
under this Note or other Loan Documents as though such payment had not been made. 
  
 LATE CHARGE. If any payments are not timely made, Borrower shall also pay to Bank a late charge equal to 5% of each payment past due for 10 or more days. 
  
 Acceptance by Bank of any late payment without an accompanying late charge shall not be deemed a waiver of Bank’s right to collect such
late charge or to collect a late charge for any subsequent late payment received. 
  
 ATTORNEYS’ FEES AND OTHER COLLECTION COSTS. Borrower shall pay all of Bank’s reasonable expenses incurred to enforce or collect any of the Obligations including, without limitation, reasonable arbitration, paralegals’,
attorneys’ and experts’ fees and expenses, whether incurred without the commencement of a suit, in any trial, arbitration, or administrative proceeding, or in any appellate or bankruptcy proceeding. 
  
 EVENTS OF DEFAULT. An “Event of Default” shall exist if any one or more of
the following events shall occur (individually, an “Event of Default”, and collectively, “Events of Default”): Non-payment; Non-performance. The failure of timely payment or performance of the Obligations. Event of
Default under other Loan Documents. The occurrence of any Event of Default under any of the other Loan Documents. 
  
 USURY. If at any time the effective interest rate under this Note would, but for this paragraph, exceed the maximum lawful rate, the effective interest rate under
this Note shall be the maximum lawful rate, and any amount received by Bank in excess of such rate shall be applied to principal and then to fees and expenses, or, if no such amounts are owing, returned to Borrower. 

 REMEDIES. Upon the occurrence of a default in the payment of the Obligations or a Default (as defined in the other
Loan Documents) under any other Loan Document, Bank may at any time thereafter, take the following actions: Bank Lien. Foreclose its security interest or lien against Borrower’s accounts without notice. Cumulative. Exercise any
rights and remedies as provided under the Note and the other Loan Documents, or as provided by law or equity. 
  
 FINANCIAL AND OTHER INFORMATION. Borrower shall deliver to Bank such information as Bank may reasonably request from time to time, including without limitation, financial statements and information pertaining
to Borrower’s financial condition. Such information shall be true, complete, and accurate. 
  
 WAIVERS AND AMENDMENTS. No waivers, amendments or modifications of this Note and other Loan Documents shall be valid unless in writing and signed by an officer of Bank. No waiver by Bank of any Default (as
defined in the other Loan Documents) shall operate as a waiver of any other Default or the same Default on a future occasion. Neither the failure nor any delay on the part of Bank in exercising any right, power, or remedy under this Note and other
Loan Documents shall operate as a waiver thereof, nor shall a single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or remedy. 
  
 Except to the extent otherwise provided by the Loan Documents or prohibited by law, each
Borrower and each other Person liable under this Note waives presentment, protest, notice of dishonor, notice of intention to accelerate maturity, notice of acceleration of maturity, notice of sale and all other notices of any kind. Further, each
agrees that Bank may (i) extend, modify or renew this Note or make a novation of the loan evidenced by this Note, and/or (ii) grant releases, compromises or indulgences with respect to any collateral securing this Note, or with respect to any
Borrower or other person liable under this Note or any other Loan Documents, all without notice to or consent of each Borrower and other such person, and without affecting the liability of each Borrower and other such person; provided, Bank may not
extend, modify or renew this Note or make a novation of the loan evidenced by this Note without the consent of the Borrower, or if there is more than one Borrower, without the consent of at least one Borrower; and further provided, if there is more
than one Borrower, Bank may not enter into a modification of this Note which increases the burdens of a Borrower without the consent of that Borrower. 
  
 MISCELLANEOUS PROVISIONS. Assignment. This Note and the other Loan Documents shall inure to the benefit of and be binding upon the parties and their respective
heirs, legal representatives, successors and assigns. Bank’s interests in and rights under this Note and the other Loan Documents are freely assignable, in whole or in part, by Bank. In addition, nothing in this Note or any 

 of the other Loan Documents shall prohibit Bank from pledging or assigning this Note or any of the other Loan Documents
or any interest therein to any Federal Reserve Bank. Borrower shall not assign its rights and interest hereunder without the prior written consent of Bank, and any attempt by Borrower to assign without Bank’s prior written consent is null and
void. Any assignment shall not release Borrower from the Obligations. Applicable Law; Conflict Between Documents. This Note and, unless otherwise provided in any other Loan Document, the other Loan Documents shall be governed by and construed
under the laws of the state named in Bank’s address on the first page hereof without regard to that state’s conflict of laws principles. If the terms of this Note should conflict with the terms of any loan agreement or any commitment
letter that survives closing, the terms of this Note shall control. Borrower’s Accounts. Except as prohibited by law, Borrower grants Bank a security interest in all of Borrower’s accounts with Bank and any of its affiliates.
Swap Agreements. All swap agreements (as defined in 11 U.S.C. § 101), if any, between Borrower and Bank or its affiliates are independent agreements governed by the written provisions of said swap agreements, which will remain in full
force and effect, unaffected by any repayment, prepayment, acceleration, reduction, increase or change in the terms of this Note, except as otherwise expressly provided in said written swap agreements, and any payoff statement from Bank relating to
this Note shall not apply to said swap agreements unless expressly referred to in such payoff statement. Jurisdiction. Borrower irrevocably agrees to non-exclusive personal jurisdiction in the state named in Bank’s address on the first
page hereof. Severability. If any provision of this Note or of the other Loan Documents shall be prohibited or invalid under applicable law, such provision shall be ineffective but only to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of this Note or other such document. Notices. Any notices to Borrower shall be sufficiently given, if in writing and mailed or delivered to the Borrower’s address
shown above or such other address as provided hereunder, and to Bank, if in writing and mailed or delivered to Wachovia Bank, National Association, Mail Code VA7391, P. O. Box 13327, Roanoke, VA 24040 or Wachovia Bank, National Association, Mail
Code VA7391, 10 South Jefferson Street, Roanoke, VA 24011 or such other address as Bank may specify in writing from time to time. Notices to Bank must include the mail code. In the event that Borrower changes Borrower’s address at any time
prior to the date the Obligations are paid in full, Borrower agrees to promptly give written notice of said change of address by registered or certified mail, return receipt requested, all charges prepaid. Plural; Captions. All references in
the Loan Documents to Borrower, guarantor, person, document or other nouns of reference mean both the singular and plural form, as the case may be, and the term “person” shall mean any individual, person or entity. The captions contained
in the Loan Documents are inserted for convenience only and shall not affect the meaning or interpretation of the Loan Documents. Advances. Bank may, in its sole discretion, make other advances which shall be deemed to 

 be advances under this Note, even though the stated principal amount of this Note may be exceeded as a result thereof.
Posting of Payments. All payments received during normal banking hours after 2:00 p.m. local time at the office of Bank first shown above shall be deemed received at the opening of the next banking day. Joint and Several Obligations.
If there is more than one Borrower, each is jointly and severally obligated. Fees and Taxes. Borrower shall promptly pay all documentary, intangible recordation and/or similar taxes on this transaction whether assessed at closing or arising
from time to time. LIMITATION ON LIABILITY; WAIVER OF PUNITIVE DAMAGES. EACH OF THE PARTIES HERETO, INCLUDING BANK BY ACCEPTANCE HEREOF, AGREES THAT IN ANY JUDICIAL, MEDIATION OR ARBITRATION PROCEEDING OR ANY CLAIM OR CONTROVERSY BETWEEN OR
AMONG THEM THAT MAY ARISE OUT OF OR BE IN ANY WAY CONNECTED WITH THIS AGREEMENT, THE LOAN DOCUMENTS OR ANY OTHER AGREEMENT OR DOCUMENT BETWEEN OR AMONG THEM OR THE OBLIGATIONS EVIDENCED HEREBY OR RELATED HERETO, IN NO EVENT SHALL ANY PARTY HAVE A
REMEDY OF, OR BE LIABLE TO THE OTHER FOR, (1) INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES OR (2) PUNITIVE OR EXEMPLARY DAMAGES. EACH OF THE PARTIES HEREBY EXPRESSLY WAIVES ANY RIGHT OR CLAIM TO PUNITIVE OR EXEMPLARY DAMAGES THEY MAY HAVE OR WHICH MAY
ARISE IN THE FUTURE IN CONNECTION WITH ANY SUCH PROCEEDING, CLAIM OR CONTROVERSY, WHETHER THE SAME IS RESOLVED BY ARBITRATION, MEDIATION, JUDICIALLY OR OTHERWISE. Patriot Act Notice. To help fight the funding of terrorism and money laundering
activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. For purposes of this section, account shall be understood to include loan accounts. 

 
 WAIVER OF JURY TRIAL. TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH OF BORROWER
BY EXECUTION HEREOF AND BANK BY ACCEPTANCE HEREOF, KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHT EACH MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED ON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS NOTE, THE LOAN
DOCUMENTS OR ANY AGREEMENT CONTEMPLATED TO BE EXECUTED IN CONNECTION WITH THIS NOTE, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY WITH RESPECT HERETO. THIS PROVISION IS A MATERIAL
INDUCEMENT TO BANK TO ACCEPT THIS NOTE. EACH OF THE PARTIES AGREES THAT THE TERMS HEREOF SHALL SUPERSEDE AND REPLACE ANY PRIOR AGREEMENT RELATED TO ARBITRATION OF DISPUTES BETWEEN THE PARTIES CONTAINED IN ANY LOAN DOCUMENT OR ANY OTHER
DOCUMENT OR AGREEMENT HERETOFORE EXECUTED IN CONNECTION WITH, RELATED TO OR BEING REPLACED, SUPPLEMENTED, EXTENDED OR MODIFIED BY, THIS NOTE. 

 IN WITNESS WHEREOF, Borrower, on the day and year first above written, has caused this Note to be executed under
seal. 
  

			
	SUPERIOR UNIFORM GROUP, INC.,
	 A Florida Corporation

		
	 By:
	 	 /s/ Andrew D. Demott, Jr.

	 	 	 Andrew D. Demott, Jr.,

	 	 	 As a Senior Vice President and
 As the Chief Financial Officer

  
 STATE OF
                  ) 
 COUNTY OF
              ) 
  
 The foregoing instrument was acknowledged before me on                 , 2004 by Andrew D. Demott, Jr., as a Senior Vice President
and as the Chief Financial Officer of SUPERIOR UNIFORM GROUP, INC., a Florida corporation, on behalf of the corporation.              This person is personally known to me or
             produced a driver’s license as identification (check one). 
  

	
	

	 Notary Public

	 Commission No.                                   
                          

	 Commission Expiration Date:FORM OF PURCHASE AGREEMENT

 Exhibit 4.1 
  

PURCHASE AGREEMENT 
  
 dated as of March 15, 2005 
  
 by and between 
  
 INSMED INCORPORATED 
  
 and 
  
 [NAME OF
PURCHASER] 
  

  
 5.5% SENIOR CONVERTIBLE NOTE DUE 2008-2010 
  
 and 
  
 COMMON STOCK PURCHASE WARRANT 
  

 INSMED INCORPORATED 
  
 PURCHASE AGREEMENT 
  
 5.5% SENIOR CONVERTIBLE NOTE DUE 2008-2010 
  
 and 
  
 COMMON STOCK PURCHASE WARRANT 
  
 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	 1.
	  	 Definitions
	  	1
	 2.
	  	 Purchases and Sales of the Note and Warrant
	  	5
	 2.1
	  	 Purchase and Sale
	  	5
	 2.2
	  	 Closing
	  	6
	 3.
	  	 Representations and Warranties of the Company
	  	6
	 3.1
	  	 Organization, Good Standing and Qualification
	  	6
	 3.2
	  	 Authorization
	  	6
	 3.3
	  	 Capitalization
	  	6
	 3.4
	  	 Valid Issuance, Enforceable Obligation
	  	7
	 3.5
	  	 Consents
	  	7
	 3.6
	  	 Delivery of SEC Filings; Business; Non-Public Information
	  	7
	 3.7
	  	 Use of Proceeds
	  	8
	 3.8
	  	 No Material Adverse Change
	  	8
	 3.9
	  	 Registration Statements
	  	9
	 3.10
	  	 Form S-3 Eligibility
	  	9
	 3.11
	  	 No Conflict, Breach, Violation or Default
	  	9
	 3.12
	  	 Tax Matters
	  	10
	 3.13
	  	 Title to Properties
	  	10
	 3.14
	  	 Certificates, Licenses, Authorizations and Permits
	  	10
	 3.15
	  	 No Labor Disputes
	  	11
	 3.16
	  	 Intellectual Property
	  	11
	 3.17
	  	 Environmental Matters
	  	11
	 3.18
	  	 Litigation
	  	12
	 3.19
	  	 Financial Statements
	  	12
	 3.20
	  	 Insurance Coverage
	  	12
	 3.21
	  	 Compliance with Nasdaq Continued Listing Requirements
	  	12
	 3.22
	  	 Acknowledgement of Potential Dilution
	  	12
	 3.23
	  	 Brokers and Finders
	  	13
	 3.24
	  	 No Directed Selling Efforts or General Solicitation
	  	13
	 3.25
	  	 Private Offering
	  	13
	 3.26
	  	 Internal Accounting Controls
	  	13

  

 - i - 

					
	 3.27
	  	 Sarbanes-Oxley Act
	  	13
	 3.28
	  	 Disclosures
	  	14
	 3.29
	  	 Rights Agreement
	  	14
	 4.
	  	 Representations and Warranties of the Purchaser
	  	14
	 4.1
	  	 Purchase Entirely for Own Account
	  	14
	 4.2
	  	 Investment Experience
	  	14
	 4.3
	  	 Disclosure of Information
	  	14
	 4.4
	  	 Restricted Securities
	  	15
	 4.5
	  	 Investor Status
	  	15
	 4.6
	  	 No General Solicitation
	  	15
	 4.7
	  	 Residency of Purchaser
	  	15
	 4.8
	  	 Brokers and Finders
	  	15
	 4.9
	  	 Authorization
	  	15
	 4.10
	  	 Risk Factors
	  	15
	 4.11
	  	 Reliance
	  	15
	 4.12
	  	 Absence of Certain Transactions
	  	16
	 4.13
	  	 Survival
	  	16
	 5.
	  	 Registration Rights Agreement
	  	16
	 6.
	  	 Certain Covenants of the Company and the Purchaser
	  	16
	 6.1
	  	 Rule 144
	  	16
	 6.2
	  	 Limitation on Certain Transactions
	  	16
	 6.3
	  	 Right of the Purchasers to Participate in Future Transactions
	  	17
	 6.4
	  	 Reports and Information
	  	20
	 6.5
	  	 Press Releases
	  	21
	 6.6
	  	 No Conflicting Agreements
	  	21
	 6.7
	  	 Insurance
	  	21
	 6.8
	  	 Compliance with Laws
	  	21
	 6.9
	  	 Listing of Underlying Shares and Warrant Shares and Related Matters
	  	21
	 6.10
	  	 Form 8-K
	  	21
	 6.11
	  	 Legends
	  	22
	 6.12
	  	 Limitation on Certain Actions
	  	23
	 6.13
	  	 Reasonable Best Efforts
	  	23
	 6.14
	  	 Debt Obligation
	  	23
	 6.15
	  	 Limitation on Material Non-Public Information
	  	23
	 7.
	  	 Conditions to Closing
	  	24
	 7.1
	  	 Conditions to the Company’s Obligations to Issue and Sell
	  	24
	 7.2
	  	 Conditions to the Purchaser’s Obligations to Purchase
	  	24
	 8.
	  	 Miscellaneous
	  	25
	 8.1
	  	 Successors and Assigns
	  	25
	 8.2
	  	 Counterparts
	  	26
	 8.3
	  	 Titles and Subtitles
	  	26
	 8.4
	  	 Notices
	  	26
	 8.5
	  	 Expenses
	  	26
	 8.6
	  	 Amendments and Waivers
	  	27

  

 - ii - 

					
	 8.7
	  	 Severability
	  	27
	 8.8
	  	 Entire Agreement
	  	27
	 8.9
	  	 Further Assurances
	  	28
	 8.10
	  	 Applicable Law
	  	28
	 8.11
	  	 Remedies
	  	28
	 8.12
	  	 Jurisdiction
	  	28
	 8.13
	  	 Survival
	  	28
	 8.14
	  	 Construction; Purchaser Status
	  	29
	 8.15
	  	 Acknowledgment
	  	29
	 8.16
	  	 Certain Waivers
	  	29

  
 EXHIBITS 
  

	
	 Exhibit A – Form of Note

	 Exhibit B – Form of Warrant

	 Exhibit C – Form of Registration Rights Agreement

	 Exhibit D – Form of Opinion of Goodwin Procter LLP to Be Delivered on Closing Date

	 Exhibit E – Form of Opinion of Woods Rogers PLC to Be Delivered on Closing Date

	 Exhibit F – Form of Press Release

  
 SCHEDULES 
  

			
	 Schedule 3.3
	  	Capitalization

  

 - iii - 

 PURCHASE AGREEMENT 
  
 THIS PURCHASE AGREEMENT, dated as of March 15, 2005 (this “Agreement”), by and between INSMED
INCORPORATED, a Virginia corporation (the “Company”), and [NAME OF PURCHASER] (the “Purchaser”). 
  
 W I T N E S S E T H: 
  
 WHEREAS, the Purchaser wishes to purchase from the Company, and the
Company wishes to sell and issue to the Purchaser, upon the terms and subject to the conditions of this Agreement, for the Purchase Price (i) a Note (such capitalized term and all other capitalized terms used herein having the respective meanings
provided herein) in principal amount set forth on the signature pages hereto and (ii) a Warrant initially entitling the holder to purchase the number of shares of Common Stock set forth on the signature pages hereto; and 
  
 WHEREAS, at or before the Closing, the parties hereto are executing
and delivering, one to the other, the Registration Rights Agreement, pursuant to which, among other things, the Company will agree to provide certain registration rights under the 1933 Act, and the rules and regulations promulgated thereunder, and
applicable state securities laws for the resale of the shares of Common Stock issuable upon conversion of, or otherwise issued in exchange for or respect of, the Note and issuable upon exercise of the Warrant; 
  
 NOW THEREFORE, in consideration of the premises and the mutual
covenants made herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
  
 1. Definitions. 
  
 1.1 As used in this Agreement, the terms “Agreement”, “Company” and “Purchaser” shall have the respective meanings assigned
to such terms in the introductory paragraph of this Agreement. 
  
 1.2 All the agreements or instruments herein defined shall mean such agreements or instruments as the same may from time to time be supplemented or amended or the terms thereof waived or modified to the extent permitted by, and in
accordance with, the terms thereof and of this Agreement. 
  
 1.3
The following terms shall have the following meanings (such meanings to be equally applicable to both the singular and plural forms of the terms defined): 
  
 “Affiliate” means, with respect to any Person, any other Person that directly, or indirectly through one or more intermediaries, controls, is
controlled by or is under common control with the subject Person. For purposes of this definition, “control” (including, with correlative meaning, the terms “controlled by” and “under common control with”), as used with

  

 
respect to any Person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of
such Person, whether through the ownership of voting securities or by contract or otherwise. 
  
 “AMEX” means the American Stock Exchange, Inc. 
  
 “Approved Markets” means Nasdaq, the NYSE and the AMEX. 
  
 “Board of Directors” means the Board of Directors of the Company. 
  
 “Business Day” means any day other than a Saturday, Sunday or a day on which commercial banks in The City of New
York are authorized or required by law or executive order to remain closed. 
  
 “Closing” means the closing of the purchase and sale of the Note and Warrant on the Closing Date. 
  
 “Closing Date” means 10:00 a.m., New York City time, the date that is one Business Days after the date this Agreement is executed and delivered
by the parties hereto, or such other time or date as mutually agreed by the parties hereto. 
  
 “Closing Location” means the offices of Goodwin Procter LLP, 599 Lexington Avenue, New York, New York. 
  
 “Common Stock” means the Common Stock, $0.01 par value, of the Company. 
  
 “Common Stock Equivalent” means any warrant, option, subscription or purchase right with respect to shares of
Common Stock, any security convertible into, exchangeable for, or otherwise entitling the holder thereof to acquire, shares of Common Stock or any warrant, option, subscription or purchase right with respect to any such convertible, exchangeable or
other security. 
  
 “Encumbrances” means all mortgages,
deeds of trust, claims, security interests, liens, pledges, leases, subleases, charges, escrows, options, proxies, rights of occupancy, rights of first refusal, preemptive rights, covenants, conditional limitations, hypothecations, prior
assignments, easements, title retention agreements, indentures, security agreements or any other encumbrances of any kind. 
  
 “Environmental Laws” shall have the meaning provided in Section 3.17. 
  
 “Event of Default” shall have the meaning to be provided or provided in the Note. 
  
 “Excluded Shares” shall have the meaning provided in Section
6.3(b). 
  

 - 2 - 

 “Generally Accepted Accounting Principles” means, for any Person, the United States generally
accepted accounting principles and practices applied by such Person from time to time in the preparation of its audited financial statements. 
  
 “Intellectual Property” means all franchises, patents, trademarks, service marks, tradenames (whether registered or unregistered), copyrights,
corporate names, licenses, trade secrets, proprietary software or hardware, proprietary technology, technical information, discoveries, designs and other proprietary rights, whether or not patentable, and confidential information (including, without
limitation, know-how, processes and technology) used in the conduct of the business of the Company or any Subsidiary, or in which the Company or any Subsidiary has an interest. 
  
 “Majority Holders” shall have the meaning to be provided or provided in the Note. 
  
 “Margin Stock” shall have the meaning provided in Regulation U of
the Board of Governors of the Federal Reserve System (12 C.F.R. Part 221). 
  
 “Material Adverse Effect” means a material adverse effect on (i) the business, properties, operations, condition (financial or other) results of operations or financial prospects of the Company and the
Subsidiaries, taken as a whole; (ii) the validity or enforceability of, or the ability of the Company to perform its obligations under, the Transaction Documents; or (iii) the rights and remedies of the Purchaser under the terms of the Transaction
Documents. 
  
 “1934 Act” means the Securities Exchange
Act of 1934, as amended, and the rules and regulations of the SEC promulgated thereunder. 
  
 “1933 Act” means the Securities Act of 1933, as amended, and the rules and regulations of the SEC promulgated thereunder. 
  
 “Nasdaq” means the Nasdaq National Market or the Nasdaq Small Cap Market. 
  
 “Note” means the 5.5% Senior Convertible Note due 2008-2010 in the
principal amount set forth on the signature page hereto and in the form attached as Exhibit A issuable or issued by the Company. 
  
 “NYSE” means the New York Stock Exchange, Inc. 
  

“Offering” means the offering that is the subject of this Agreement. 
  
 “Optional Redemption Price” shall have the meaning provided in the Note. 
  
 “Other Notes” means the 5.5% Senior Convertible Notes due 2008-2010
issued by the Company pursuant to the Other Purchase Agreements. 
  

 - 3 - 

 “Other Purchase Agreements” means the several Purchase Agreements, dated as of the date hereof,
between the Company and the purchasers parties thereto pursuant to which the Company is issuing other 5.5% Senior Convertible Notes due 2008-2010 and Common Stock Purchase Warrants. 
  
 “Person” means an individual, corporation, partnership, limited liability company, trust, business trust,
association, joint stock company, joint venture, pool, syndicate, sole proprietorship, unincorporated organization, governmental authority or any other form of entity not specifically listed herein. 
  
 “Preferred Share Purchase Rights” means the Preferred Share
Purchase Rights issued or issuable pursuant to the Rights Agreement (or any similar rights hereafter issued by the Company with respect to the Common Stock). 
  
 “Principal Market” shall have the meaning to be provided or provided in the Note. 
  
 “Pro Rata Share” means with respect to each capital raising transaction to which Section 6.3 applies an amount
equal to the product obtained by multiplying (x) an amount equal to all of the securities being issued in such capital raising transaction times (y) a fraction of which the numerator is the total number of shares of Common Stock which would
then be issuable upon conversion of the Note and upon exercise of the Warrant for cash (in each case determined without regard to any limitation on conversion or exercise thereof) and the denominator is the total number of shares of issued and
outstanding Common Stock calculated on a fully diluted basis to include the total number of shares of Common Stock that could be issued upon the exercise or conversion of all outstanding Common Stock Equivalents. 
  
 “Purchase Price” means the amount shown on the signature pages to
this Agreement as the Purchaser’s Purchase Price. 
  
 “Purchaser Share Notice” shall have the meaning provided in Section 6.11. 
  
 “Purchasers” shall mean the Purchaser of the Securities under this Agreement and the Purchasers purchasing securities under the Other Purchase Agreements. 
  
 “Registration Rights Agreement” means the Registration Rights
Agreement by and between the Company and the Purchaser in the form attached as Exhibit C. 
  
 “Registration Statement” shall have the meaning provided in the Registration Rights Agreement. 
  
 “Regulation D” means Regulation D adopted by the SEC under the 1933
Act. 
  
 “Repurchase Event” shall have the meaning to be
provided or provided in the Note. 
  

 - 4 - 

 “Restricted Ownership Percentage” shall have the meaning provided in Section 6.3(b).

  
 “Rights Agreement” mean the Rights Agreement, dated
as of May 16, 2001, between the Company and First Union National Bank, as Rights Agent. 
  
 “SEC” means the U.S. Securities and Exchange Commission. 
  
 “SEC Filings” means the 2003 10-K and all other reports filed by the Company pursuant to Section 13 or 15(d) of the 1934 Act since December 31,
2003 and on or before the date of this Agreement.  
  
 “Securities” means the Note, the Underlying Shares, the Warrant and the Warrant Shares. 
  
 “Subsidiary” means any corporation or other entity of which a majority of the capital stock or other ownership interests having ordinary voting
power to elect a majority of the board of directors or other persons performing similar functions are at the time directly or indirectly owned by the Company. 
  

“Trading Day” shall have the meaning to be provided or provided in the Note. 
  
 “Transaction Documents” means this Agreement, the Registration Rights Agreement, the Note and the Warrant.

  
 “2003 10-K” means the Company’s Annual Report
on Form 10-K for the year ended December 31, 2003, as filed as the SEC, as amended to the date of this Agreement. 
  
 “Underlying Shares” means the shares of Common Stock and the related Preferred Share Purchase Rights issued or issuable upon conversion of the
Note. 
  
 “Warrant” means the Company’s Common
Stock Purchase Warrant in the amount of shares of Common Stock set forth on the signature page and in the form attached as Exhibit B issuable or issued by the Company. 
  
 “Warrant Shares” means the shares of Common Stock and the related Preferred Share Purchase Rights issuable or
issued upon exercise of or otherwise pursuant to the Warrant. 
  
 2. Purchases and Sales of the Note and Warrant. 
  
 2.1 Purchase and Sale. Upon the terms and subject to the conditions of this Agreement, the Purchaser hereby agrees to purchase from the Company, and the Company hereby agrees to sell to the Purchaser, on the Closing Date, the
Note and the Warrant for the Purchase Price. The Closing shall be held at the Closing Location. The Purchase Price shall be allocated between the Note and the Warrant as may be agreed by the Company and the Purchaser. 
  

 - 5 - 

 2.2 Closing. (a) On the Closing Date, upon the terms and subject to the conditions provided
in this Agreement, the Company shall deliver or cause to be delivered to the Purchaser the following: 
  
 (1) the Note, duly executed by the Company, registered in the name of the Purchaser, and 
  
 (2) the Warrant, duly executed by the Company, registered in the name of the Purchaser. 
  
 (b) At the Closing, upon the terms and subject to the conditions
provided in this Agreement, the Purchaser shall deliver or cause to be delivered to the Company an amount equal to the Purchase Price, by wire transfer of immediately available funds to such account as shall be specified by the Company to the
Purchaser prior to the Closing Date. 
  
 3. Representations
and Warranties of the Company. The Company hereby represents and warrants to, and covenants and agrees with, the Purchaser that: 
  
 3.1 Organization, Good Standing and Qualification. The Company and each Subsidiary is a corporation duly incorporated, validly existing and
subsisting and in good standing under the laws of the jurisdiction of its incorporation and has all requisite corporate power and authority to carry on its business as now conducted and to own its properties. The Company and each Subsidiary is duly
qualified to do business as a foreign corporation and is in good standing in each jurisdiction in which the conduct of its business or its ownership or leasing of property makes such qualification or licensing necessary unless the failure to so
qualify could not be reasonably likely to have a Material Adverse Effect. The Company has no Subsidiaries other than those listed in Exhibit 21.1 to the 2003 10-K and has no investment in any other Person except such investments as would be
classified as current assets on a balance sheet of the Company, prepared in accordance with Generally Accepted Accounting Principles. 
  
 3.2 Authorization. The Company has full corporate power and authority, and all requisite action on the part of the Company, its officers,
directors and stockholders has been taken that is, necessary for (i) the authorization, execution and delivery of the Transaction Documents, (ii) authorization of the performance of all obligations of the Company under the Transaction Documents, and
(iii) the authorization, issuance (or reservation for issuance) and delivery of the Securities. The Transaction Documents constitute the legal, valid and binding obligations of the Company, enforceable against the Company in accordance with their
terms, subject to bankruptcy, insolvency, reorganization, moratorium and similar laws of general applicability, relating to or affecting creditors’ rights generally. 
  
 3.3 Capitalization. Set forth on Schedule 3.3 hereto is (a) the authorized capital stock of the Company
on the date hereof; (b) the number of shares of capital stock issued and outstanding on the date hereof; (c) the number of shares of capital stock issuable pursuant to the Company’s stock option, stock purchase, stock award and similar plans;
and (d) the number of shares of capital stock issuable and reserved for issuance pursuant to all Common Stock 

  

 - 6 - 

 
Equivalents outstanding or which the Company has agreed to issue (other than the Note, the Other Notes, the Warrant and the Warrants issuable pursuant to the
Other Purchase Agreements). All of the issued and outstanding shares of the Company’s capital stock have been duly authorized and validly issued and are fully paid, nonassessable. Except as set forth in Section 6.3 of this Agreement and the
Other Purchase Agreements and except as set forth on Schedule 3.3 hereto, no Person is entitled to preemptive or similar statutory or contractual rights with respect to any securities of the Company. Except as set forth on Schedule 3.3
or in the SEC filings, there are no outstanding Common Stock Equivalents or other rights, agreements or arrangements of any character under which the Company is or may be obligated to issue any Common Stock Equivalents or other equity securities
of any kind, and except as contemplated by this Agreement and the Other Purchase Agreements, the Company has no plans or proposals, and is not currently in negotiations, for the issuance of any Common Stock Equivalents or capital stock of any kind.
The Company has no knowledge of any voting agreements, buy-sell agreements, option or right of first purchase agreements or other agreements of any kind among any of the security holders of the Company relating to the securities of the Company held
by them. Except as set forth on Schedule 3.3, except in connection with the Other Purchase Agreements and except for registration rights relating to registration statements on file with the SEC as of the date of this Agreement, the Company
has not granted any Person the right (which is now outstanding or effective) to require the Company to register any securities of the Company under the 1933 Act, whether on a demand basis or in connection with the registration of securities of the
Company for its own account or for the account of any other Person. 
  
 3.4 Valid Issuance, Enforceable Obligation. The Company does not have any obligation to issue shares of Common Stock for which it has not reserved the number of shares of Common Stock it may obligated to issue. The Company has
duly reserved a sufficient number of shares of Common Stock for issuance upon conversion of the Notes and the Other Notes and upon exercise of the Warrants and the Warrants issuable pursuant to the Other Purchase Agreements. The Note and the Warrant
are duly authorized by all necessary actions, corporate or otherwise, on the part of the Company; the Underlying Shares and the Warrant Shares have been duly authorized and when issued in accordance herewith and with the terms of the Note and the
Warrant will be validly issued, fully paid, non-assessable and free and clear of all restrictions, except for restrictions on transfer imposed by applicable securities laws; and the Note and the Warrant, when issued in accordance with this
Agreement, will be free and clear of all restrictions, except for restrictions on transfer imposed by applicable securities laws and the requirements for transfer set forth in this Agreement and the other Transaction Documents. 
  
 3.5 Consents. The execution, delivery and performance by the
Company of the Transaction Documents and the offer, issuance and sale of the Securities do not require the consent of, action by or in respect of, or filing with, any Person, governmental body, agency, or official other than filings that have been
or will be made pursuant to applicable state securities laws and the requirements of the Nasdaq and other than the filing of a Form D by the Company with the SEC, each of which the Company undertakes to file within the applicable time periods.

  
 3.6 Delivery of SEC Filings; Business; Non-Public
Information. The Company has timely filed all material reports and other documents required to be filed with the SEC pursuant to the 1934 Act for the past twelve months preceding the date hereof. At their 

  

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respective times of filing with the SEC (or if amended or suspended by a filing prior to the date of the Agreement, then on the date of such filing, the SEC
Filings complied in all material respects with the requirements of the 1934 Act and did not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in the light of
the circumstances under which they were made, not misleading, in any such case that has not been corrected in a subsequent filing by the Company with the SEC under the 1934 Act made prior to the date of this Agreement. The Company and the
Subsidiaries are engaged only in the business described in the SEC Filings, and the SEC Filings contain a complete and accurate description of the business of the Company and the Subsidiaries in all material respects. The Company has not provided to
any Purchaser any information required to be filed or disclosed under the 1934 Act that has not been so filed or disclosed. 
  
 3.7 Use of Proceeds. The proceeds of the sale of the Note and the Warrant hereunder and of the exercise of the Warrant shall be used by the
Company for working capital and general corporate purposes. None of such proceeds will be used, directly or indirectly (A) to make any loan to or investment in any other Person or (B) for the purpose, whether immediate, incidental or ultimate, of
purchasing or carrying any Margin Stock or for the purpose of maintaining, reducing or retiring any indebtedness which was originally incurred to purchase or carry any stock that is currently a Margin Stock or for any other purpose which might
constitute the transactions contemplated by this Agreement a “purpose credit” within the meaning of such Regulation U of the Board of Governors of the Federal Reserve System; and neither the Company nor any agent acting on its behalf has
taken or will take any action which might cause this Agreement or the transactions contemplated hereby to violate Regulation T, Regulation U or any other regulation of the Board of Governors of the Federal Reserve System or to violate the 1934 Act,
in each case as in effect now or as the same may hereafter be in effect. 
  
 3.8 No Material Adverse Change. Since the filing of the 2003 Form 10-K with the SEC, and except as otherwise identified and described in the SEC Filings subsequently filed by the Company with the SEC
pursuant to the 1934 Act, there has not been: 
  
 (i) any material change in the consolidated assets, liabilities, financial condition or operating results of the Company and the Subsidiaries from that reflected in the financial statements included in the 2003 10-K, except changes in the
ordinary course of business which have not had, in the aggregate, a Material Adverse Effect; 
  
 (ii) any declaration or payment of any dividend, or any authorization or payment of any distribution, on any of the capital stock of the
Company, or any redemption or repurchase of any securities of the Company or any Subsidiary; 
  
 (iii) any material damage, destruction or loss, whether or not covered by insurance, to any assets or properties of the Company or any
Subsidiary; 
  
 (iv) any waiver by the Company or
any Subsidiary of a material right or of a material debt owed to it which waiver is adverse to the Company or any Subsidiary; 
  

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 (v) any satisfaction or discharge of any Encumbrance or payment of any obligation by the
Company or any Subsidiary, except in the ordinary course of business and which is not material to the assets, properties, prospects, financial condition, operating results or business of the Company and the Subsidiaries taken as a whole (as such
business is presently conducted and the Company has publicly disclosed it is proposed to be conducted); 
  
 (vi) any material change or amendment to a material contract or arrangement by which the Company or any Subsidiary or any of their
respective assets or properties is bound or subject; 
  
 (vii) any material labor difficulties or labor union organizing activities with respect to employees of or contract workers for the Company or any Subsidiary; 
  
 (viii) any material transaction entered into by the Company or any Subsidiary other than in the ordinary
course of business; or 
  
 (ix) any other event
or condition of any character that would be reasonably likely to have a Material Adverse Effect. 
  
 3.9 Registration Statements. During the preceding two years, each registration statement and any amendment thereto filed by the Company
pursuant to the 1933 Act, as of the date such registration statement or amendment became effective, complied as to form in all material respects with the 1933 Act, and did not contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading; and each prospectus or supplement filed pursuant to Rule 424 under the
1933 Act, as of its issue date and as of the closing of any sale of securities pursuant thereto did not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make
the statements made therein, in the light of the circumstances under which they were made, not misleading. 
  
 3.10 Form S-3 Eligibility. The Company is currently eligible to register the resale of its Common Stock in a secondary offering on a
registration statement on Form S-3 under the 1933 Act, and the Company shall maintain such eligibility at least until the Registration Statement is ordered effective by the SEC. 
  
 3.11 No Conflict, Breach, Violation or Default. (a) The execution, delivery and performance of the Transaction
Documents by the Company and the issuance and sale of the Securities will not conflict with or result in a breach or violation of any of the terms and provisions of, or constitute a default under, or result in the creation or imposition of any lien,
charge, security interest or encumbrance under (i) the Company’s Certificate of Incorporation (including any articles of amendment or articles designating series of shares) or the Company’s Bylaws, (ii) any statute, rule, regulation or
order of any governmental agency or body or any court, domestic or foreign, having jurisdiction over the Company or any Subsidiary or any of their respective assets or properties, or (iii) any agreement or instrument to which the Company or any
Subsidiary is a party or by which the Company or any Subsidiary is bound or to which 

  

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any of the properties of the Company or any Subsidiary is subject, except for conflicts, breaches, violations, defaults or the creation or imposition of any
lien, charge, security interest or encumbrance that has not had or would not reasonably be expected to have a Material Adverse Effect. 
  
 (b) The Company and each Subsidiary (i) is not in violation of any statute, rule or regulation applicable to the Company or any Subsidiary or its assets,
(ii) is not in violation of any judgment, order or decree applicable to the Company or any Subsidiary or any of their respective assets, and (iii) is not in breach or violation of any agreement, note or instrument to which it or its assets are a
party or are bound or subject, except for breaches or violations which, individually or in aggregate, could not reasonably be likely to have a Material Adverse Effect. Except as described in the SEC Filings, to the best of the Company’s
knowledge, neither the Company nor any Subsidiary has received notice from any Person of any claim or investigation that, if adversely determined, would render the representations or warranties in the preceding sentence untrue or incomplete.

  
 3.12 Tax Matters. The Company and the
Subsidiaries have timely prepared and filed all tax returns required to have been filed by the Company with all appropriate governmental agencies and timely paid all taxes owed by them, except for taxes which it reasonably disputes in good faith or
where failure to make such payment would not reasonably be expected to have a Material Adverse Effect. The charges, accruals and reserves on the books of the Company and the Subsidiaries in respect of taxes for all fiscal periods are adequate in all
material respects, and there are no unpaid assessments against the Company or any Subsidiary nor, to the knowledge of the Company, any basis for the assessment of any additional taxes, penalties or interest for any fiscal period or audits by any
foreign, U.S. federal, state, or local taxing authority, except such as would not reasonably be expected to result in a Material Adverse Effect. All taxes and other assessments and levies that the Company or any Subsidiary is required to withhold or
to collect for payment have been duly withheld and collected and paid to the proper governmental entity or third party when due, except such as would not reasonably be expected to result in a Material Adverse Effect. There are no tax liens or claims
pending or, to the Company’s knowledge, threatened against the Company or any Subsidiary or any of their respective assets or property which if adversely decided, would have a Material Adverse Effect. 
  
 3.13 Title to Properties. Except as disclosed in the SEC
Filings, the Company and each Subsidiary has good and marketable title to all real properties and all other properties and assets owned by it, in each case free from Encumbrances and defects that would reasonably be expected to have a Material
Adverse Effect on the Company; and except as disclosed in the SEC Filings, the Company and each Subsidiary holds any leased real or personal property under valid and enforceable leases with no exceptions that would reasonably be expected to have a
Material Adverse Effect on the Company. 
  
 3.14
Certificates, Licenses, Authorizations and Permits. The Company and each Subsidiary possesses adequate certificates, licenses, authorizations or permits issued by appropriate governmental agencies or bodies necessary to conduct the business
now operated by it except for those which, if not possessed by the Company or such Subsidiary, individually or in the aggregate would not be reasonably likely to have a Material Adverse Effect, and has not 

  

 - 10 - 

 
received any notice of proceedings relating to the revocation or modification of any such certificate, license, authorization or permit that, if determined
adversely to the Company or any Subsidiary, would individually or in the aggregate be reasonably likely to have a Material Adverse Effect. 
  
 3.15 No Labor Disputes. Except such disputes as would not reasonably be expected to result in a Material Adverse Effect, no labor dispute
with the employees of or contract workers for the Company or any Subsidiary exists or, to the knowledge of the Company, is imminent. 
  
 3.16 Intellectual Property. Except as would not reasonably be expected to result in a Material Adverse Effect, (1) the Company and each
Subsidiary owns or possesses sufficient rights to use all Intellectual Property described or referred to in the Company’s filings pursuant to the 1934 Act as owned or possessed by the Company or that are necessary for the conduct of the
business as now conducted or proposed to be conducted; (2) the use of the Intellectual Property by the Company or any Subsidiary does not, to the knowledge of the Company, violate or infringe on the rights of any other Person; (3) neither the
Company nor any Subsidiary has received any written notice of any conflict between the asserted rights of others and the Company or any Subsidiary with respect to any Intellectual Property; (4) the Company and each Subsidiary has used its
commercially reasonable best efforts to protect its rights in and to all Intellectual Property used by it in its business or in which it has an interest; (5) the Company and each Subsidiary are in compliance with all material terms and conditions of
its agreements relating to the Intellectual Property; (6) neither the Company nor any Subsidiary is, or since December 31, 2001 has been, a defendant in any action, suit, investigation or proceeding relating to infringement or misappropriation by
the Company or any Subsidiary of any Intellectual Property nor has the Company or any Subsidiary been notified of any alleged claim of infringement or misappropriation by the Company or any Subsidiary of any Intellectual Property; (7) to the
knowledge of the Company, none of the products or services the Company and the Subsidiaries are researching, developing, propose to research and develop, make, have made, use, or sell, infringes or misappropriates any Intellectual Property right of
any third party; (8) none of the trademarks and service marks used by the Company or any Subsidiary, to the knowledge of the Company, infringes the trademark or service mark rights of any third party; and (9) to the Company’s knowledge none of
the processes and formulae, research and development results and other know-how relating to the Company’s or the Subsidiaries’ respective businesses, the value of which to the Company or any Subsidiary is contingent upon maintenance of the
confidentiality thereof, has been disclosed to any Person other than Persons bound by written confidentiality agreements. 
  
 3.17 Environmental Matters. Neither the Company nor any Subsidiary is in violation of any statute, rule, regulation, decision or order of
any governmental agency or body or any court, domestic or foreign, relating to the use, disposal or release of hazardous or toxic substances or relating to the protection or restoration of the environment or human exposure to hazardous or toxic
substances (collectively, “Environmental Laws”), owns or operates any real property contaminated with any substance that is subject to any Environmental Laws, is liable for any off-site disposal or contamination pursuant to any
Environmental Laws, or is subject to any claim relating to any Environmental Laws, except for any such violation, ownership or 

  

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operation of contaminated property, liability or claim that would individually or in the aggregate not be reasonably likely to have a Material Adverse
Effect; and neither the Company nor any Subsidiary is aware of any pending investigation that might lead to such a claim. 
  
 3.18 Litigation. Except as described in the SEC Filings, there are no pending actions, suits or proceedings against the Company or any
Subsidiary or any of their respective properties that, if determined adversely to the Company or such Subsidiary, would individually or in the aggregate have a Material Adverse Effect, or which could otherwise have a material adverse affect on the
validity or enforceability of, or the ability or authority of the Company to perform its obligations under the Transaction Documents; and to the Company’s knowledge, no such actions, suits or proceedings are threatened or contemplated.

  
 3.19 Financial Statements. The consolidated
financial statements included in each SEC Filing present fairly in all material respects the consolidated financial position of the Company and the Subsidiaries as of the dates reported and the consolidated results of operations, changes in
stockholders’ equity and cash flows for the periods reported, all in conformity with Generally Accepted Accounting Principles applied on a consistent basis and in conformity with the rules and regulations of the SEC under the 1934 Act
applicable to the Company, subject, in the case of unaudited financial statements, to (1) normal recurring year-end adjustments, all of which that are necessary for a fair presentation of such financial statements have been included, and (2) the
absence of all required notes thereto. Except as set forth in the consolidated financial statements of the Company included in the SEC Filings filed prior to the date hereof, neither the Company nor any Subsidiary has any liabilities, contingent or
otherwise, except those which individually or in the aggregate are not material to the financial condition or operating results of the Company and the Subsidiaries, taken as a whole. Generally Accepted Accounting Principles are applied on a
“consistent basis” when such principles applied in a current period are comparable in all material respects to those accounting principles applied in a preceding period. 
  
 3.20 Insurance Coverage. The Company and each Subsidiary maintains in full force and effect insurance coverage
which the Company believes to be customary for comparably situated companies. 
  
 3.21 Compliance with Nasdaq Continued Listing Requirements. The Company is in compliance with all applicable Nasdaq continued listing requirements, except where failure to comply would not result in
de-listing from or the imposition of restrictions or limitations by Nasdaq, and is in good standing on such market. There are no proceedings pending or to the Company’s knowledge threatened against the Company relating to the continued listing
of the Company’s Common Stock on Nasdaq and the Company has not received any notice of, nor to the knowledge of the Company is there any basis for, the suspension of trading of the Common Stock on, or delisting of the Common Stock from, Nasdaq.

  
 3.22 Acknowledgement of Potential Dilution. The
Company understands that the number of shares of Common Stock issuable pursuant to the Note, the Warrant, the Other Notes and the other securities issuable pursuant to the Other Purchase Agreements may be substantial and that such issuance may have
a dilutive effect on the Company’s equity capitalization. 
  

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 3.23 Brokers and Finders. The Purchaser shall have no liability or responsibility for the
payment of any commission or finder’s fee to any third party in connection with or resulting from this Agreement or the transactions contemplated by this Agreement by reason of any agreement of or action taken by the Company. 
  
 3.24 No Directed Selling Efforts or General Solicitation.
Notwithstanding anything contained on any schedule hereto, neither the Company nor any Person acting on its behalf has conducted any general solicitation or general advertising (as those terms are used in Regulation D) in connection with the offer
or sale of any of the Securities. 
  
 3.25 Private
Offering. Assuming the correctness of the representations and warranties of the Purchasers set forth in Section 4 of the Purchase Agreements, the offer and sale of Notes and the Warrants hereunder is and, upon conversion of the Notes or
exercise of the Warrants, the issuance of the Underlying Shares will be exempt from registration under the Securities Act. Neither the Company nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made
any offers or sales of any security or solicited any offers to buy any security, under circumstances that would (1) adversely affect reliance by the Company on Section 4(2) of the 1933 Act and Regulation D for the exemption from registration under
the 1933 Act for the transactions contemplated hereby or would require registration of the offer and sale of the Note, the Warrant, the Underlying Shares or the Warrant Shares to the Purchaser under the 1933 Act; or (2) require the integration of
the offering of the Securities with any other offering of securities for purposes of determining the need to obtain stockholder approval of the transactions contemplated hereby under the rules of Nasdaq. 
  
 3.26 Internal Accounting Controls. The Company and each of its
Subsidiaries maintain a system of internal accounting controls 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 Generally Accepted Accounting Principles and to maintain asset and liability accountability, (iii) access to assets or incurrence of liabilities is permitted only in
accordance with management’s general or specific authorization and (iv) the recorded accountability for assets and liabilities is compared with the existing assets and liabilities at reasonable intervals and appropriate action is taken with
respect to any difference. The Company maintains disclosure controls and procedures (as such term is defined in Rule 13a-15 under the 1934 Act) that are effective in ensuring that information required to be disclosed by the Company in the reports
that it files or submits under the 1934 Act is recorded, processed, summarized and reported, within the time periods specified in the rules and forms of the SEC, including, without limitation, controls and procedures designed to ensure that
information required to be disclosed by the Company in the reports that it files or submits under the 1934 Act is accumulated and communicated to the Company’s management, including its principal executive officer or officers and its principal
financial officer or officers, as appropriate, to allow timely decisions regarding required disclosure. 
  
 3.27 Sarbanes-Oxley Act. The Company is in material compliance with any and all applicable requirements of the Sarbanes-Oxley Act of 2002
that are effective as of the 

  

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date hereof, and any and all applicable rules and regulations promulgated by the SEC thereunder that are effective as of the date hereof. 
  
 3.28 Disclosures. For purposes of this Agreement and the
transactions contemplated hereby, none of the representations or warranties made by the Company under the Transaction Documents, and no written information furnished by the Company pursuant hereto, or in any other document, certificate or written
statement furnished at the Closing by the Company to the Purchaser or any authorized representative of the Purchaser, pursuant to the Transaction Documents or in connection therewith, contains any untrue statement of a material fact or omits to
state a material fact necessary in order to make the statements contained herein and therein, in light of the circumstances under which they were made, not misleading. 
  
 3.29 Rights Agreement. Assuming the correctness of the representations of the Purchasers in Section 4.14 of
this Agreement and the Other Purchaser Agreements, the execution and delivery of this Agreement by the Company, the issuance of the Securities as contemplated by the Transaction Documents and the other transactions contemplated by the Transaction
Documents will not result in any of the Purchasers becoming an “Acquiring Person,” as defined in the Rights Agreement; and the holders of the Note and the Warrants will be entitled, with respect to the Underlying Shares and the Warrant
Shares, and the holders of the Underlying Shares and the Warrant Shares will be entitled, in each case to the benefits available to the holders of Common Stock under the Rights Agreement. 
  
 3.30 Other Purchase Agreements. Each of the Other Purchase Agreements is identical to this Purchase Agreement
except to the extent that information particular to the Purchaser has been included therein and that in one particular of such agreements the Company has agreed to pay the legal fees of counsel for one purchaser, Alexandra Global Master Fund Ltd.,
in connection with the negotiation of the Transaction Documents and the term sheet related thereto. 
  
 4. Representations and Warranties of the Purchaser. The Purchaser hereby represents and warrants to the Company that: 
  
 4.1 Purchase Entirely for Own Account. The Securities to be
acquired by the Purchaser pursuant to this Agreement will be acquired for the Purchaser’s own account, not as nominee or agent, and not with a view to the resale or distribution of any part thereof in violation of applicable securities laws,
and the Purchaser has no present intention of selling, granting any participation in, or otherwise distributing the same in violation of applicable securities laws. 
  
 4.2 Investment Experience. The Purchaser acknowledges that it can bear the economic risk and complete loss of
its investment in the Securities and has such knowledge of and experience with securities and financial or business matters that it is capable of fending for itself and evaluating the merits and risks of the purchase of the Note and Warrant and any
conversion or exercise thereof into Underlying Shares or Warrant Shares. 
  
 4.3 Disclosure of Information. The Purchaser has had an opportunity to receive documents related to the Company and to ask questions of and receive answers from the 

  

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Company regarding the terms and conditions of the offering of the Securities; provided however, that neither such inquiries nor any other
investigation conducted by the Purchaser shall modify, amend, limit or otherwise affect the Purchaser’s right to rely on the Company’s representations and warranties contained in the Transaction Documents or made pursuant to the
Transaction Documents. 
  
 4.4 Restricted
Securities. The Purchaser understands that the Note, the Warrant and the Underlying Securities are characterized as “restricted securities” under the U.S. federal securities laws inasmuch as they are being acquired from the Company
in a transaction not involving a public offering and that under such laws and applicable regulations such securities may be resold without registration under the 1933 Act only in certain limited circumstances. 
  
 4.5 Investor Status. The Purchaser an “accredited
investor” as defined in Rule 501 of Regulation D or a “QIB” as defined in Rule 144A of the under the 1933 Act. 
  
 4.6 No General Solicitation. The Purchaser did not learn of the offering of the Note and Warrant through any public advertising or general
solicitation (as these terms are used in Regulation D). 
  
 4.7 Residency of Purchaser. The Purchaser is a resident of the state or other jurisdiction indicated below the Purchaser’s name on the signature pages to this Agreement. 
  
 4.8 Brokers and Finders. The Company shall have no liability or
responsibility for the payment of any commission or finder’s fee to any third party in connection with or resulting from this Agreement or the transactions contemplated by this Agreement by reason of any agreement of the Purchaser; and the
Purchaser has not engaged any such broker or finder in connection with the negotiation, execution and delivery of this Agreement. 
  
 4.9 Authorization. The Purchaser has full requisite power and authority and has taken all requisite action on the part of the Purchaser, its
partners, officers, directors and stockholders necessary for (i) the authorization, execution and delivery of the Transaction Documents and (ii) authorization of the performance of all obligations of the Purchaser under the Transaction Documents.
The Transaction Documents constitute the legal, valid and binding obligations of the Purchaser, enforceable against the Purchaser in accordance with their terms, subject to bankruptcy, insolvency, reorganization, moratorium and similar laws of
general applicability, relating to or affecting creditors’ rights generally. 
  
 4.10 Risk Factors. Without limiting any other representations and warranties under this Agreement, the Purchaser acknowledges that the Purchaser has reviewed and is aware of the risk factors described in
the SEC Filings. 
  
 4.11 Reliance. Without limiting
any other representations and warranties under this Agreement, the Purchaser has consulted its own financial, legal and tax advisors with respect to the economic, legal and tax consequences of an investment in the Note and Warrant and has 

  

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not relied on the SEC Filings or the Company, its officers, directors or professional advisors or any purchaser of Other Notes as to such consequences.

  
 4.12 Absence of Certain Transactions. From the
date the Purchaser first learned of the offering of the Notes and Warrants to the day prior to execution and delivery of this Agreement, the Purchaser has not made any short sales of the Common Stock. 
  
 4.13 Survival. The Purchaser acknowledges that the
representations, warranties and agreements made by the Purchaser herein shall survive the execution and delivery of this Agreement and the purchase of the Note and Warrant. 
  
 4.14 Rights Agreement. Except as otherwise disclosed to the Company in writing by the Purchaser and
based upon the number of outstanding shares of Common Stock of the Company set forth in Schedule 3.3, the Purchaser, following the purchase of the Securities, shall not, together with all affiliates and associates of such Person, be the
beneficial owner (within the meaning of Rule 13d-3 of 1934 Act) of 15% or more of the Common Stock. 
  
 5. Registration Rights Agreement. The Company acknowledges and agrees that the Company’s execution and delivery of, and full
performance of its obligations under, the Registration Rights Agreement is a material inducement to the Purchaser to execute and deliver this Agreement and purchase and pay for the Note and Warrant. The Company agrees to execute and deliver to the
Purchaser the Registration Rights Agreement at or before the Closing. 
  
 6. Certain Covenants of the Company and the Purchaser. 
  
 6.1 Rule 144. The Company acknowledges that, for purposes of determining the holding period under Rule 144 for Underlying Shares issued upon conversion of the Note, the holding period of such Underlying
Shares shall be tacked to the holding period of the Note and for purposes of determining the holding period under Rule 144 for Warrant Shares issued in a “net” or “cashless” exercise of the Warrant, the holding period of such
Warrant Shares may be tacked to the holding period of the Warrant. The Company agrees not to take a position contrary thereto unless the SEC or its staff by rule or interpretation changes its rules and interpretations thereof in effect on the date
of this Agreement or such rules or interpretations are held invalid or incorrect by a court of competent jurisdiction. 
  
 6.2 Limitation on Certain Transactions. 
  
 (a) Beginning as of the date of this Agreement and until the effective date of the Registration Statement as contemplated by the Registration Rights
Agreement, without the prior written consent of the Purchaser (which consent may be withheld in the Purchaser’s sole discretion), the Company shall not issue or sell or agree to issue or sell any securities in a capital raising transaction,
unless such securities will not be, and are not, registered for sale or resale under the 1933 Act until on or after the effective date of the Registration Statement, provided that the limitation of this Section 6.2(a) shall not apply to securities
issued pursuant to the Company’s duly adopted employee or director bona fide share and option plans or pursuant to 

  

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exercise or conversion of Common Stock Equivalents that are outstanding on the date of this Agreement. 
  
 (b) The Company shall not make an offering of its equity or debt securities,
other than any offering under the 1933 Act that constitutes a public offering that is exempt from the requirement for stockholder approval under Rule 4350(i) of Nasdaq, if such offering will be integrated with the Offering for purposes of Rule
4350(i) of Nasdaq rules and thereby constitute a sale of Common Stock, or Common Stock Equivalents convertible or exercisable, at a price less than the greater of book value or market value for purposes of Rule 4350(i), unless prior to issuance of
such securities the Company shall have obtained stockholder approval therefor that meets the requirements of Rule 4350(i). 
  
 (c) If the Company fails to comply with Section 6.2(b), then, in addition to any other rights and remedies of the Purchaser, at the election of the
Purchaser, the Company shall redeem within five days after such election all, or such portion as specified in writing to the Company by such Purchaser, of the Note for 120% of the Optional Redemption Price and otherwise as if such redemption were
made under Section 2(b) of the Note. 
  
 6.3 Right of the
Purchasers to Participate in Future Transactions. 
  
 (a) Right to Participate. The Purchaser will have a right to participate, on the terms and conditions set forth in this Section 6.3, in all sales by the Company of 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, in a capital raising transaction that occur within one year
after the Closing Date, other than any such sale that is a public offering underwritten on a firm commitment basis and registered with the SEC under the 1933 Act; provided, however, that if the only Persons eligible to purchase securities in
a particular such transaction are “accredited investors,” as defined in Regulation D, or “QIBs”, as defined in Rule 144A under the 1933 Act, as the case may be, then the Purchaser must be an accredited investor or QIB, as the
case may be, in order to purchase securities in such transactions. Subject to Section 6.15, for any such transaction during such period, the Company shall give five Business Days advance written notice to the Purchaser prior to any offer or sale of
any of the Company’s securities in such transaction by providing to the Purchaser a term sheet which (1) contains all significant business terms of such proposed transaction, (2) is sufficiently detailed so as to reasonably permit the Purchaser
the opportunity to determine whether or not to exercise its rights under this Section 6.3 and (3) is at least as detailed as the term sheet or summary of such transaction as the Company shall furnish to any offeree or broker in such transaction.
Unless the Purchaser shall have refused to receive such term sheet pursuant to Section 6.15, the Purchaser shall have the right to participate in such proposed transaction and to purchase its Pro Rata Share of such securities which are the subject
of such proposed transaction for the same consideration and on the same terms and conditions as contemplated for sales to third parties in such transaction (or such lesser portion thereof as specified by the Purchaser). If the Purchaser elects to
exercise its rights hereunder it must 

  

 - 17 - 

 
deliver written notice to the Company within three Business Days following receipt from the Company of the notice and term sheet meeting the requirements of
this Section 6.3, which notice from the Purchaser shall be conditional upon (1) the Purchaser’s receipt of satisfactory definitive documents for such transaction from the Company if the Company has not furnished final definitive documents for
such transaction to the Purchaser at or before the time the Company gives such notice of such transaction to the Purchaser, and (2) the satisfaction of the other conditions precedent to the obligations of purchasers generally in such transaction to
complete such transaction. If, subsequent to the Company giving notice to the Purchaser hereunder but prior to the Purchaser exercising its right to participate (or the expiration of the three Business Day period without response from the Purchaser
or the rejection of such offer for such financing by the Purchaser), the terms and conditions of the proposed sales to third parties in such transaction are changed from those disclosed in the term sheet provided to the Purchaser, the Company shall
be required to provide a new notice and term sheet meeting the requirements of this Section 6.3, reflecting such revised terms, to the Purchaser hereunder and the Purchaser shall have the right, which must be exercised within three Business Days of
such new notice and such revised term sheet, to exercise its rights to purchase the securities on such changed terms and conditions and otherwise as provided hereunder. If the Purchaser does not exercise its rights hereunder with respect to a
proposed transaction within the period or periods provided, or affirmatively declines to engage in such proposed transaction with the Company, then the Company may proceed with such proposed transaction on the same terms and conditions as noticed to
the Purchaser (assuming the Purchaser has consented to the transaction, if required, pursuant to Section 6.2(a) and such transaction does not violate any other term or provision of the Transaction Documents) with the Purchaser if it has elected to
participate in such proposed transaction, provided that if such proposed transaction is not consummated within 75 days following the Company’s notice hereunder, then the rights hereunder shall again be afforded to the Purchaser for such
proposed transaction. The rights and obligations of this Section 6.3 shall in no way limit or restrict the other rights of the Purchaser pursuant to this Section 6. 
  
 (b) Limitation on Right of First Refusal. Notwithstanding anything to the contrary contained herein, the
number of shares of Common Stock that may be acquired directly or through acquisition of Common Stock Equivalents by the Purchaser pursuant to any transaction to which this Section 6.3 applies shall not exceed a number that, when added to the total
number of shares of Common Stock deemed beneficially owned by the Purchaser (other than by virtue of the ownership of securities or rights to acquire securities (including the Note and the Warrant) that have limitations on the Purchaser’s right
to convert, exercise or purchase similar to the limitation set forth herein (the “Excluded Shares”)), together with all shares of Common Stock deemed beneficially owned at such time (other than by virtue of ownership of Excluded Shares) by
Persons whose beneficial ownership of Common Stock would be aggregated with the beneficial ownership of the Purchaser for purposes of determining whether a group exists or for purposes of determining the Purchaser’s beneficial ownership in
either case for purposes of Section 13(d) of the 1934 Act and Regulation 13D-G thereunder, would result in beneficial ownership by the Purchaser or such group of more than 9.9% of the shares of the Company’s Common Stock (the “Restricted
Ownership Percentage”), computed in accordance with Regulation 13D-G. The Purchaser shall have the right at any time and from time to time to reduce its Restricted Ownership Percentage immediately upon notice to the Company in the event and
only to the extent that Section 16 of the 1934 Act or the rules promulgated thereunder 

  

 - 18 - 

 
(or any successor statute or rules) is changed to reduce the beneficial ownership percentage threshold thereunder from 10%. If the Purchaser is unable by
reason of the Restricted Ownership Percentage to acquire the full amount of securities which the Purchaser would otherwise be entitled to acquire pursuant to this Section 6.3 then (1) the Company shall include in the terms of the securities which
the Purchaser is entitled to purchase under this Section 6.3 a provision comparable to Section 6(h) of the Note and (2) if, notwithstanding the inclusion of the provision required by the immediately preceding clause (1), the Purchaser remains unable
to acquire the full amount of securities which the Purchaser would otherwise be entitled to acquire under this Section 6.3, and thereafter, at any time until the date that is 90 days after the latest closing of the sale of securities in such
transaction by the Company to Persons other than (x) the Purchaser and (y) any Person who is entitled to purchase securities in such transaction pursuant to Section 6.3 of the Other Purchase Agreements, the Purchaser could acquire such securities
without exceeding its Restricted Ownership Percentage, then the Purchaser shall be entitled to acquire such securities at such time; provided, that nothing contained in the immediately preceding clause (2) shall be deemed to permit the
Purchaser to acquire such securities to the extent that such acquisition by the Purchaser would require the Company to obtain stockholder approval pursuant to the rules of the national securities exchange on which the common stock is then listed.
The Company will provide notice to the Purchaser of the date of such latest closing of the sale of securities in such transaction within five Business Days after such closing. 
  
 (c) Right Applicable to Successive Transactions. The rights of the Purchaser under this Section 6.3 shall
apply to all capital raising transactions described in Section 6.3(a) that occur during the period specified in Section 6.3(a). 
  
 (d) Right Inapplicable to Certain Issuances. The issuances of the following securities shall not be considered capital raising transactions
and shall not be subject to the rights of the Purchaser described in Section 6.3(a): 
  
 (1) the issuance by the Company of shares of Common Stock pro rata to all holders of the Common Stock; 
  
 (2) the issuance by the Company of the Notes or the Other
Warrants or shares of Common Stock upon conversion of the Notes or upon exercise of this Warrant or the Other Warrants, in each such case in accordance with the terms of thereof; 
  
 (3) the issuance by the Company of Common Stock upon grant or exercise of options for employees, directors
and consultants under the Company’s 2000 Stock Purchase Plan, the Company’s 2000 Stock Incentive Plan or any other employee benefit plan approved by the Board of Directors after the Closing Date, or the issuance by the Company of shares of
Common Stock to former employees in satisfaction of severance obligations if such issuance has been approved by the Board of Directors; 
  
 (4) the issuance by the Company of Common Stock or Common Stock Equivalents to parties that are suppliers, customers or strategic partners
investing in connection with a commercial relationship with the Company, the primary purpose of which issuance is not to raise capital; 
  

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 (5) the issuance by the Company of Common Stock or Common Stock Equivalents to the lessor
or vendor in any office lease or equipment lease or similar equipment financing transaction in which the Company or any Subsidiary obtains the use of such office space or equipment for its business; and 
  
 (6) the issuance by the Company of Common Stock upon
conversion or exercise of Common Stock Equivalents outstanding on the Closing Date if the amount of such shares so issuable is disclosed in this Agreement (or the Schedules hereto) or the SEC Filings, in accordance with the terms of such Common
Stock Equivalents in effect on the Closing Date. 
  
 6.4
Reports and Information. For so long as the Purchaser beneficially owns any of the Securities, the Company will furnish to the Purchaser the following reports and information, each of which shall be provided to the Purchaser by e-mail (at
such address as specified in writing by the Purchaser for such purpose) or reputable overnight courier: 
  
 (a) Quarterly Financial Information. In the absence of a Quarterly Report on Form 10-Q filed with the SEC for any of the Company’s
first three fiscal quarters in any fiscal year, within five days after the due date determined without regard to any permitted extensions) for filing such report with the SEC for such fiscal quarter consolidated balance sheets of the Company as at
the end of each of the Company’s first three fiscal quarters and the related consolidated statements of operations, stockholders’ equity and cash flows for such period and for the portion of the Company’s fiscal year ended on the last
day of such quarter, all in reasonable detail and certified by the principal financial officer of the Company to have been prepared in accordance with Generally Accepted Accounting Principles consistently applied, subject to (1) normal recurring
year-end adjustments, all of which that are necessary for a fair presentation of such financial statements shall be included in such financial statements, and (2) the absence of all required notes. 
  
 (b) Annual Financial Information. In the absence of an Annual
Report on Form 10-K timely filed with the SEC for a particular fiscal year, within 15 days after the due date (determined without regard to any permitted extensions) for filing such report with the SEC for such fiscal year a consolidated balance
sheet of the Company as at the end of each fiscal year and the related consolidated statements of earnings, stockholders’ equity and cash flows for such year, prepared in accordance with Generally Accepted Accounting Principles, consistently
applied, and accompanied by the report on such consolidated financial statements of the Company’s independent certified public accountant. 
  
 (c) Other Information. Such other information relating to the Company and the Subsidiaries as from time to time may reasonably be requested
by the Purchaser provided the Company or its Subsidiary has such information available to it in the ordinary course of its business, and further provided that the Company, solely in its own discretion, determines that such information is not
confidential in nature and disclosure to the Purchaser would not be harmful to the Company or its Subsidiary or violate applicable law. 
  

 - 20 - 

 (d) Rule 144. The Company agrees to make publicly available on a timely basis the
information required by Rule 144(c) under the 1933 Act. 
  
 6.5 Press Releases. The Company shall, contemporaneously with the Closing on the Closing Date or as promptly as possible thereafter on the Closing Date, issue a press release, in the form of Exhibit F hereto, concerning
the transactions contemplated hereby. The Company’s other press releases and other public information, to the extent any such press release specifically references the Purchaser, shall contain such information as reasonably requested by the
Purchaser and be reasonably approved by the Purchaser prior to issuance. 
  
 6.6 No Conflicting Agreements. The Company will not take any action, enter into any agreement or make any commitment that would conflict or interfere in any material respect with the obligations to the
Purchaser under the Transaction Documents. 
  
 6.7
Insurance. For so long as the Purchaser beneficially owns any of the Securities, the Company shall, and shall cause each Subsidiary to, have in full force and effect (a) insurance that the Company believes to be customary for companies
comparably situated to the Company. 
  
 6.8 Compliance with
Laws. So long as the Purchaser beneficially owns any Securities, the Company will use reasonable efforts to comply with all applicable laws, rules, regulations, orders and decrees of all governmental authorities, except to the extent
non-compliance (in one instance or in the aggregate) could not be reasonably likely to have a Material Adverse Effect. 
  
 6.9 Listing of Underlying Shares and Warrant Shares and Related Matters. The Company agrees to obtain the listing of the Underlying Shares
and Warrant Shares on Nasdaq and, to the extent necessary, to take such action to cause the Underlying Shares and the Warrant Shares to continue to be listed on the Nasdaq. The Company agrees that if the Company applies to have its Common Stock or
other securities traded on any other principal stock exchange or market, it will include in such application the Underlying Shares and Warrant Shares and will take such other action as is necessary to cause such Common Stock to be so listed. For so
long as any of the Note or the Warrant remains outstanding and for a period of at least 30 days immediately thereafter, the Company will take all actions necessary to continue the listing and trading of its Common Stock on at least one of the
Approved Markets, and will comply in all respects with the Company’s reporting, filing and other obligations under the bylaws or rules of such exchange or market, as applicable, to ensure the continued eligibility for trading of the Common
Stock thereon. 
  
 6.10 Form 8- K. Within four
Business Days after the Closing Date, the Company will publicly report the issue and sale of the Note and Warrant and the securities issued pursuant to the Other Purchase Agreements by filing with the SEC a Current Report on Form 8-K under the 1934
Act which report shall describe the material terms and include copies of the Transaction Documents as exhibits to such report. 
  

 - 21 - 

 6.11 Legends. Until registered for resale pursuant to the Registration Rights Agreement or,
in the absence of such registration, until sales under Rule 144(k) under the 1933 Act are permitted, certificates evidencing the Underlying Shares and the Warrant Shares may bear the following legend: 
  
 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 REASONABLY SATISFACTORY TO THE ISSUER
OF THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER OR HYPOTHECATION IS IN COMPLIANCE THEREWITH. 
  
 and such legend as may be required by the authorities of any state in connection with the qualification of the Underlying Shares and the Warrant Shares for sale, or exemption therefrom, in such state. Upon
registration for resale pursuant to the Registration Rights Agreement or, in the absence of such registration, upon Rule 144(k) under the 1933 Act becoming available, the Company shall promptly (but in no event later than five Business Days after
surrender of the legended certificates to the Company) cause certificates evidencing the Underlying Shares and Warrant Shares previously issued to be replaced with certificates which do not bear the restrictive legends specified above in this
Section 6.11, and all Underlying Shares and Warrant Shares subsequently issued shall not bear the restrictive legend specified above in this Section 6.11. If the Purchaser notifies the Company that, within three Business Days after surrender of such
legended certificates, the Purchaser has not received such certificates without such restrictive legends (each, a “Purchaser Share Notice”), and the Purchaser does not receive such certificates without such restrictive legends within two
Business Days after giving a particular Purchaser Share Notice, then the Company shall pay partial liquidated damages to the Purchaser in cash on demand, calculated at the rate of 1% per month of the original Purchase Price of the Note in respect of
which such Underlying Shares are issuable or issued, and the purchase price paid upon exercise of the Warrant in respect of which such Warrant shares are issuable or issued, and in any such case for which the certificates have not been provided in
compliance with the above, for each day so long as the Company fails to provide such certificates. Notwithstanding the foregoing the Company shall not be liable to the Purchaser for such partial liquidated damages to the extent the failure of the
Company to deliver or to cause to be delivered the unlegended securities results from fire, flood, storm, earthquake, shipwreck, strike, war, acts of terrorism, crash involving facilities of a common carrier, acts of God, or any similar event
outside the control of the Company (it being understood that the action or failure to act of the Company’s Transfer Agent shall not be deemed an event outside the control of the Company except to the extent resulting from fire, flood, storm,
earthquake, shipwreck, strike, war, acts of terrorism, crash involving facilities of a common carrier, acts of God, or any similar event outside the control of such Transfer Agent or the bankruptcy, liquidation or reorganization of such Transfer
Agent under any bankruptcy, insolvency or other similar law). The Purchaser agrees that any sale by the Purchaser of Underlying Shares and Warrant Shares pursuant to the Registration Statement shall be sold in a manner described under the caption
“Plan of Distribution” in such Registration Statement and (A) if such sale is made through a broker, the Purchaser shall instruct such broker to deliver the Prospectus to the purchaser or purchasers (or the broker or brokers therefore) in
connection with such sale, shall supply copies of the 

  

 - 22 - 

 
Prospectus to such broker or brokers and shall instruct such broker or brokers to deliver such Prospectus to the purchaser in such sale or such
purchaser’s broker, (B) if such sale is made in a transaction directly with a purchaser and not through the facilities of any securities exchange or market, the Purchaser shall deliver, or cause to be delivered, the Prospectus to such
purchaser; and (C) if such sale is made by any means other than those described in the immediately preceding clauses (A) and (B), the Purchaser shall otherwise comply with the prospectus delivery requirements of the 1933 Act applicable to such sale.
The Purchaser acknowledges that the removal of the restrictive legends from certificates representing Underlying Shares and Warrant Shares as provided in this Section 6.11 is predicated upon the Company’s reliance on the Purchaser’s
compliance with its covenants in this Section 6.11. 
  
 6.12
Limitation on Certain Actions. From the date of execution and delivery of this Agreement by the parties hereto to the date of issuance of the Note, the Company (1) shall comply with Section 4 of the Note as if the Note were outstanding, (2)
shall not take any action which, if the Note were outstanding, (A) would constitute an Event of Default or, with the giving of notice or the passage of time or both, would constitute an Event of Default or (B) would constitute a Repurchase Event or,
with the giving of notice or the passage of time or both, would constitute a Repurchase Event. 
  
 6.13 Reasonable Best Efforts. Each of the parties shall use its reasonable best efforts timely to satisfy each of the conditions to the other party’s obligations to sell and purchase the Note and
Warrant set forth in Section 7.1 or 7.2, as the case may be, of this Agreement on or before the Closing Date. 
  
 6.14 Debt Obligation. So long as any portion of the Note is outstanding, the Company shall cause its books and records to reflect the
Note as a debt of the Company in its unpaid principal amount, shall cause its financial statements to reflect the Note as a debt of the Company in such amount as shall be the greatest amount permitted in accordance with Generally Accepted Accounting
Principles and as a valid senior debt obligation of the Company for money borrowed. 
  
 6.15 Limitation on Material Non-Public Information. Notwithstanding anything to the contrary contained in this Agreement, the Company shall not disclose material nonpublic information to the
Purchaser, or to advisors to or representatives of the Purchaser, unless prior to disclosure of such information the Company identifies such information as being material nonpublic information and provides the Purchaser, such advisors and
representatives with the opportunity to accept or refuse to accept such material nonpublic information for review. The Company may, as a condition to disclosing any material nonpublic information hereunder, require the Purchaser’s advisors and
representatives to enter into a confidentiality agreement (including an acknowledgement by such advisors and representatives as to their legal obligations regarding trading in Common Stock during such period of time as they are in possession of
material nonpublic information) in form reasonably satisfactory to the Company and the Purchaser. 
  

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 7. Conditions to Closing. 
  
 7.1 Conditions to the Company’s Obligations to Issue and Sell. The Company’s obligation to issue and
sell the Note and the Warrant to the Purchaser is conditioned upon satisfaction of the following conditions precedent on the Closing Date (any or all of which may be waived by the Company in its sole discretion): 
  
 (a) The closings under the Other Purchase Agreements shall have occurred;

  
 (b) No legal action, suit or proceeding shall be pending or
threatened which seeks to restrain or prohibit the transactions contemplated by this Agreement; and 
  
 (c) The representations and warranties of the Purchaser contained in this Agreement shall have been true and correct on the date of this Agreement and the
representations and warranties of the Purchaser contained in the Transaction Documents shall be true and correct on the Closing Date as if given on and as of the Closing Date (except for representations given as of a specific date, which
representations shall be true and correct as of such date), and on or before the Closing Date the Purchaser shall have performed all covenants and agreements of the Purchaser contained herein or in any of the other Transaction Documents required to
be performed by the Purchaser on or before the Closing Date. 
  
 7.2 Conditions to the Purchaser’s Obligations to Purchase. The Purchaser’s obligation to purchase the Note and Warrant is conditioned upon satisfaction of the following conditions precedent on the Closing Date (any
or all of which may be waived by the Purchaser in its sole discretion): 
  
 (a) The closings under the Other Purchase Agreements shall have occurred; 
  
 (b) No legal action, suit or proceeding shall be pending or threatened which seeks to restrain or prohibit the transactions contemplated by this Agreement; 
  
 (c) The representations and warranties of the Company contained in this Agreement shall have been true and correct on the
date of this Agreement and the representations and warranties of the Company contained in the Transaction Documents shall be true and correct on the Closing Date as if given on and as of the Closing Date (except for representations given as of a
specific date, which representations shall be true and correct as of such date), and on or before the Closing Date the Company shall have performed all covenants and agreements of the Company contained herein or in any of the other Transaction
Documents required to be performed by the Company on or before the Closing Date; 
  
 (d) No event which, if the Note were outstanding, would constitute an Event of Default or Repurchase Event or which, with the giving of notice or the passage of time, or both, would constitute an Event of Default or
Repurchase Event shall have occurred and be continuing; 
  

 - 24 - 

 (e) The Company shall have delivered to the Purchaser a certificate, dated the Closing Date, duly
executed by its Chief Executive Officer or Chief Financial Officer, to the effect set forth in subparagraphs (a), (b), (c) and (d) of this Section 7.2; 
  
 (f) The Company shall have delivered to the Purchaser a certificate, dated the Closing Date, of the Secretary of the Company certifying (A) the Articles
of Incorporation and By-Laws of the Company as in effect on the Closing Date, (B) all resolutions of the Board of Directors (and committees thereof) of the Company relating to this Agreement and the other Transaction Documents and the transactions
contemplated hereby and thereby, (C) the due election or appointment, incumbency and specimen signature of each officer of the Company who executes any Transaction Document, with provisions for counter-certification of the election or appointment,
incumbency and signature of the Secretary of the Company by another officer of the Company; 
  
 (g) The Purchaser shall have received an opinion of Goodwin Procter LLP, counsel for the Company, dated the Closing Date, addressed to the Purchaser, substantially in the form attached as Exhibit D and
otherwise in form, scope and substance reasonably satisfactory to the Purchaser; 
  
 (h) The Purchaser shall have received an opinion of Woods Rogers PLC, counsel for the Company, dated the Closing Date, addressed to the Purchaser, substantially in the form attached as Exhibit E and otherwise
in form, scope and substance reasonably satisfactory to the Purchaser; 
  
 (i) The Company shall have received confirmation from Nasdaq, and provided the Purchaser reasonable evidence or if such confirmation is in written form, a copy thereof, that the transactions contemplated hereby will not require stockholder
approved pursuant to Rule 4350(i) of Nasdaq rules; and 
  
 (j) On
the Closing Date, (i) trading in securities on the NYSE, the AMEX or Nasdaq shall not have been suspended or materially limited and (ii) a general moratorium on commercial banking activities in the State of New York shall not have been declared by
either federal or state authorities, nor shall there have occurred any material outbreak or escalation of hostilities or other national or international calamity or crisis of such magnitude in its effect on, or any material adverse change in any
United States financial market which, in each case, in the good faith judgment of the Purchaser, makes it impracticable or inadvisable to purchase the Note and Warrant. 
  
 8. Miscellaneous. 
  
 8.1 Successors and Assigns. This Agreement may not be assigned by the Company. This Agreement may not be assigned by the Purchaser prior to
the Closing without the prior written consent of the Company, which consent may not be unreasonably withheld or delayed. After the Closing, (1) without the prior written consent of the Company, but after notice given to the Company, the Purchaser
may assign its rights and delegate its duties hereunder in whole or in part to an Affiliate or an investment fund for which the investment 

  

 - 25 - 

 
advisor is the same as, or is an Affiliate of, the Purchaser’s investment advisor or (2) subject to and upon compliance with the assignment and transfer
provisions, if any, of the Securities, to any transferee of Securities from the Purchaser. The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and permitted assigns of the parties.
Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and permitted assigns any rights, remedies, obligations, or liabilities under or by reason of this
Agreement, except as expressly provided in this Agreement. 
  
 8.2 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
  
 8.3 Titles and Subtitles. The titles and subtitles used in this
Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement. 
  
 8.4 Notices. Unless otherwise provided, any notice required or permitted under this Agreement shall be given in writing and shall be deemed
effectively given only upon delivery to each party to be notified by (i) personal delivery, (ii) telephone line facsimile transmission (such delivery shall be deemed to occur upon receipt of confirmation of complete transmittal), or (iii) a
recognized overnight air courier, addressed to the party to be notified at the address as follows, or at such other address as such party may designate by ten days’ advance written notice to the other party (such delivery shall be deemed to
occur one day following the deposit with such overnight air courier): 
  
 If to the Company: 
  

			
	 Insmed Incorporated

	 4851 Lake Brook Drive

	 Glen Allen, Virginia 23060

		
	 Attention:
	  	Chief Financial Officer
		
	Telephone:	  	(804) 565-3000
	Fax:	  	(804) 565-3500

  
 If to the Purchaser:

  
 to the address set forth on the signature
pages hereto. 
  
 8.5 Expenses. The parties hereto
shall pay their own costs and expenses in connection herewith. The Company shall pay all fees and expenses of all finders, brokers, placement agents in connection with the transactions contemplated by this Agreement pursuant to any separate
agreement between one or more such parties and the Company. 
  

 - 26 - 

 8.6 Amendments and Waivers. 
  
 (a) No amendment, modification, waiver, discharge or termination of any provision of this Agreement on or prior to the
Closing Date nor consent to any departure by the Purchaser or the Company therefrom on or prior to the Closing Date shall in any event be effective unless the same shall be in writing and signed by the party to be charged with enforcement, and in
any such case shall be effective only in the specific instance and for the purpose for which given; 
  
 (b) No amendment, modification, waiver, discharge or termination of any provision of this Agreement after the Closing Date nor consent to any departure by
the Company therefrom after the Closing Date shall in any event be effective unless the same shall be in writing and signed (x) by the Company, if the Company is to be charged with enforcement or (y) by the Majority Holders, if the Purchaser is to
be charged with enforcement, and in any such case shall be effective only in the specific instance and for the purpose for which given; provided, however, that no such amendment modification, waiver, discharge or termination which (i)
increases the Purchaser’s liability, (ii) amends this Section 8.6, (iii) adversely affects the Purchaser’s rights under Sections 6.1, 6.2, 6.5, 6.6, 6.7, 6.8, 6.9, 6.10, 6.11, 6.14 and 6.15, (iv) modifies the provisions of this Agreement
in a manner that adversely treats the obligations or rights of the Purchaser differently than it treats the obligations or rights of the purchasers under the Other Purchase Agreements, or (v) decreases the Purchaser’s Restricted Ownership
Percentage, shall be effective unless in writing signed by the Purchaser; provided further, however, that any such amendment, modification, waiver, discharge or termination of a provision effected in accordance with this Section 8.6 shall be
binding upon each holder of any Securities purchased under this Agreement at the time outstanding, each future holder of all such securities, and the Company. Notwithstanding anything to the contrary contained herein, no amendment or waiver shall
increase or eliminate the Restricted Ownership Percentage, whether permanently or temporarily, unless, in addition to complying with the other requirements herein and obtaining the written consent of the Purchaser, such amendment or waiver shall
have been approved in accordance with the Virginia Stock Corporation Act and the Company’s by-laws by holders of a majority of the outstanding shares of Common Stock entitled to vote at a meeting or by written consent in lieu of such meeting.

  
 8.7 Severability. If one or more provisions of
this Agreement are held to be unenforceable under applicable law, such provision shall be excluded from this Agreement and the balance of this Agreement shall be interpreted as if such provision were so excluded and shall be enforceable in
accordance with its terms. 
  
 8.8 Entire Agreement.
This Agreement, including the Exhibits and Schedules hereto, the other Transaction Documents and other documents contemplated hereby and thereby constitute the entire agreement among the parties hereof with respect to the subject matter hereof and
thereof and supersede all prior agreements and understandings, both oral and written, between the parties with respect to the subject matter hereof and thereof and there are no representations or warranties, written or oral, by either party in
connection with this Agreement except as set forth herein and therein. 
  

 - 27 - 

 8.9 Further Assurances. The parties shall execute and deliver all such further instruments
and documents and take all such other actions as may reasonably be required to carry out the transactions contemplated hereby and to evidence the fulfillment of the agreements herein contained. 
  
 8.10 Applicable Law. This Agreement shall be governed by, and
construed in accordance with, the laws of the State of New York without regard to principles of conflicts of laws. 
  
 8.11 Remedies. 
  
 (a) The Purchaser shall be entitled to specific performance of the Company’s obligations under the Transaction Documents. 
  
 (b) The Company on the one hand and the Purchaser on the other hand shall
indemnify the other and hold it harmless from any loss, cost, expense or fees (including reasonable attorneys’ fees and expenses) arising out of any breach of any of its representations, warranties, covenants or agreements in any of the
Transaction Documents, or arising out of the enforcement of this Section 8.11. 
  
 8.12 Jurisdiction. The parties hereby agree that all actions or proceedings arising directly or indirectly from or in connection with this Agreement shall be litigated only in the Supreme Court of the
State of New York or the United States District Court for the Southern District of New York located in New York County, New York. The Company consents and submits to the jurisdiction and venue of the foregoing courts and consents that any process or
notice of motion or other application to either of said courts or a judge thereof may be served on the Company inside or outside the State of New York or the Southern District of New York (but with respect to any party hereto, such consent shall not
be deemed a general consent to jurisdiction and service for any third parties) by registered mail, return receipt requested, directed to the Company at its address provided in or pursuant to this Agreement (and service so made shall be deemed
complete three days after the same has been posted as aforesaid) or by personal service or in such other manner as may be permissible under the rules of said courts. The Company hereby waives any right to object to a proceeding in such courts based
on inconvenience of the forum and waives and right to a jury trial in connection with any litigation pursuant to this Agreement. 
  
 8.13 Survival. The respective representations, warranties, covenants and agreements of the Company and the Purchaser contained in this
Agreement and the documents delivered in connection with this Agreement shall survive the execution and delivery of this Agreement and the other Transaction Documents and the Closing and delivery of and payment for the Note and issuance of the
Warrant, and shall remain in full force and effect regardless of any investigation made by or on behalf of the Purchaser or any Person controlling or acting on behalf of the Purchaser or by the Company or any Person controlling or acting on behalf
of the Company. 
  

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 8.14 Construction; Purchaser Status. The language used in this Agreement will be deemed to
be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party. The Purchaser is not acting as part of a “group” (as that term is used in Section 13(d) of the
1934 Act) in negotiating and entering into this Agreement or purchasing the Note and the Warrant or acquiring, disposing of or voting any of the Underlying Shares or the Warrant Shares. The Company hereby confirms that it understands and agrees that
the Purchaser is not acting as part of any such group. 
  
 8.15 Acknowledgment. Each of the Company and the Purchaser understands that pursuant to a waiver agreement between the Company and Wells Fargo Securities, LLC, Goodwin Procter LLP represents both the Company and Wells Fargo
Securities, LLC in connection with the transactions contemplated by this Agreement. Goodwin Procter LLP has not acted as counsel to the Purchaser. Each of the parties hereto further acknowledges that each of the Wells Fargo Securities, LLC and C.E.
Unterberg Towbin, LLC is acting solely as a financial advisor and/or placement agent to the Company and has not provided advice, or made any representation, to any purchaser in connection with the transactions contemplated by this Agreement, and
that the role of either of Wells Fargo Securities, LLC or C.E. Unterberg Towbin, LLC in any due diligence is limited solely to assisting the Company in co-ordinating the work of the Company’s other professional advisors. 
  
 8.16 Certain Waivers. To the extent that the Purchaser is a
party to a Stock and Warrant Purchase Agreement with the Company dated November 5, 2004 (together with each other Stock and Warrant Purchase Agreement entered into by the Company dated November 5, 2004, the “Prior Purchase Agreements”) and
pursuant to Section 9 of the Prior Purchase Agreements, the undersigned Purchaser, individually, and, together with the other Purchasers who are parties to the Prior Purchase Agreements as the holders of at least a majority in interest of the Shares
(as defined in the Prior Purchase Agreements) held by all of the parties to the Prior Purchase Agreements (the “Prior Purchasers”), hereby permanently and irrevocably waives on behalf of such Purchaser and all of the Prior Purchasers any
and all rights of first refusal granted pursuant to Section 7.8 of the Prior Purchase Agreements, any other provision of the Prior Purchase Agreements or any other agreement, any other rights to purchase any of the Securities of the Company being
sold pursuant to this Agreement and the Other Purchase Agreements and any rights to receive notice pursuant to such rights of first refusal or in connection with such sales of Securities, other than to the extent such rights are being exercised in
connection with the purchase of Securities pursuant to this Agreement or any Other Purchase Agreement. The Purchaser acknowledges that it has a right to participate in future sales by the Company of any of the Company’s securities in certain
capital raising transactions in accordance with the terms and conditions of Section 6 of this Agreement and hereby further agrees to permanently and irrevocably waive and terminate its rights to purchase securities pursuant to Section 7.8 of such
Purchaser’s Prior Purchase Agreement in the event of any future issuance of securities by the Company that would otherwise be subject to the requirements of such Section 7.8. 
  
 [Signature Pages Follow] 
  

 - 29 - 

 IN WITNESS WHEREOF, the parties have caused this Purchase Agreement to be duly executed by their
respective officers or other representatives thereunto duly authorized as of the date first above written. 
  

					
	INSMED INCORPORATED
		
	 By:
	 	 
	 	 	 Name:
	 	 Kevin P. Tully

	 	 	 Title:
	 	 Chief Financial Officer

  

 - 30 - 

 PURCHASER AGREEMENT SIGNATURE PAGE 
  

			
	
	 
	[Name of Purchaser]

  

					
		
	 By:
	 	 

					
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 
		
	 Tax ID No.:
	 	 

					
		
	 Contact name:
	 	 

					
		
	 Telephone:
	 	 

  

			
	 Name in which shares should be registered (if
 different from name of Purchaser):

	
	 

  

			
	Address for Notices:
	
	 
	
	 

			
	
	Purchaser’s Residence:
	
	 

			
	
	FACSIMILE NUMBER:
	
	 

  

 - 31 - 

 PURCHASER INFORMATION 
  
 Purchaser Name: 
 Purchase Price: 
 Number of Warrant Shares: 
 Initial Conversion Price of Note: 
 Initial Exercise Price of Warrant: 
  

 - 32 -

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