Document:

Form of Indenture relating to the New Securities

 Exhibit 4.8 
 THE PMI GROUP, INC. 
 2.50% Senior Convertible Debentures due 2021 
  

 INDENTURE 
 Dated as of                     , 2006 
  

 The Bank of New York Trust Company,
N.A. 
 TRUSTEE 
  

 Certain Sections of this Indenture relating to Sections 310 through 318, 
 inclusive, of the Trust Indenture Act of 1939: 
  

			
	 Trust Indenture Act Section
	 	 Indenture Section

	 § 310(a)(1)
	 	7.10
	 (a)(2)
	 	7.10
	 (a)(3)
	 	Not Applicable
	 (a)(4)
	 	Not Applicable
	 (b)
	 	 7.8
 7.10

	 (c)
	 	Not Applicable
	 § 311(a)
	 	7.11
	 (b)
	 	7.11
	 (c)
	 	Not Applicable
	 § 312(a)
	 	2.5
	 (b)
	 	11.3
	 (c)
	 	11.3
	 § 313(a)
	 	7.6
	 (b)
	 	7.6
	 (c)
	 	 7.6
 11.2

	 (d)
	 	7.6
	 § 314(a)
	 	 4.2
 4.3

	 (b)
	 	Not Applicable
	 (c)(1)
	 	11.4
	 (c)(2)
	 	11.4
	 (c)(3)
	 	Not Applicable
	 (d)
	 	Not Applicable
	 (e)
	 	11.5
	 § 315(a)
	 	7.1
	 (b)
	 	 7.5
 7.1

	 (c)
	 	7.1
	 (d)
	 	7.1
	 (e)
	 	6.11
	 § 316(a)(1)(A)
	 	6.5
	 (a)(1)(B)
	 	6.4
	 (a)(2)
	 	Not Applicable
	 (b)
	 	6.7
	 (c)
	 	1.5
	 § 317(a)(1)
	 	6.8
	 (a)(2)
	 	6.9
	 (b)
	 	2.4
	 § 318(a)
	 	11.1

 NOTE: This reconciliation and tie shall
not, for any purpose, be deemed to be a part of the Indenture. 

 TABLE OF CONTENTS 
  

					
	 	 	 	  	Page
	ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE
			
	Section 1.1	 	Definitions	  	1
	Section 1.2	 	Other Definitions	  	4
	Section 1.3	 	Incorporation by Reference of Trust Indenture Act	  	5
	Section 1.4	 	Rules of Construction	  	6
	Section 1.5	 	Acts of Holders	  	6
	
	ARTICLE II THE SECURITIES
			
	Section 2.1	 	Form and Dating	  	7
	Section 2.2	 	Execution and Authentication	  	8
	Section 2.3	 	Registrar, Paying Agent, Conversion Agent and Calculation Agent	  	8
	Section 2.4	 	Paying Agent to Hold Money and Securities in Trust	  	9
	Section 2.5	 	Securityholder Lists	  	9
	Section 2.6	 	Transfer and Exchange	  	9
	Section 2.7	 	Replacement Securities	  	10
	Section 2.8	 	Outstanding Securities; Determinations of Holders’ Action	  	11
	Section 2.9	 	Temporary Securities	  	12
	Section 2.10	 	Cancellation	  	12
	Section 2.11	 	Persons Deemed Owners	  	12
	Section 2.12	 	Global Securities	  	13
	Section 2.13	 	CUSIP Numbers	  	16
	Section 2.14	 	Ranking	  	16
	
	ARTICLE III REDEMPTION AND PURCHASES
			
	Section 3.1	 	Company’s Right to Redeem; Notices to Trustee	  	16
	Section 3.2	 	Selection of Securities to Be Redeemed	  	17
	Section 3.3	 	Notice of Redemption	  	17
	Section 3.4	 	Effect of Notice of Redemption	  	18
	Section 3.5	 	Deposit of Redemption Price	  	18
	Section 3.6	 	Securities Redeemed in Part	  	18
	Section 3.7	 	Purchase of Securities by the Company at Option of the Holder	  	18
	Section 3.8	 	Purchase of Securities at Option of the Holder upon Change of Control	  	19
	Section 3.9	 	Company Notice	  	23
	Section 3.10	 	Effect of Purchase Notice or Change of Control Purchase Notice	  	24
	Section 3.11	 	Deposit of Purchase Price or Change of Control Purchase Price	  	25
	Section 3.12	 	Securities Purchased in Part	  	25
	Section 3.13	 	Covenant to Comply With Securities Laws Upon Purchase of Securities	  	26
	Section 3.14	 	Repayment to the Company	  	26

  

 i 

 ARTICLE IV COVENANTS 
  

					
	Section 4.1	 	Payment of Securities	  	26
	Section 4.2	 	SEC and Other Reports	  	27
	Section 4.3	 	Compliance Certificate	  	27
	Section 4.4	 	Further Instruments and Acts	  	27
	Section 4.5	 	Maintenance of Office or Agency	  	27
	Section 4.6	 	Delivery of Certain Information	  	28
	Section 4.7	 	Tax Treatment of Securities	  	28
	
	ARTICLE V SUCCESSOR CORPORATION
			
	Section 5.1	 	When Company May Merge or Transfer Assets	  	28
	
	ARTICLE VI DEFAULTS AND REMEDIES
			
	Section 6.1	 	Events of Default	  	29
	Section 6.2	 	Acceleration	  	31
	Section 6.3	 	Other Remedies	  	32
	Section 6.4	 	Waiver of Past Defaults	  	32
	Section 6.5	 	Control by Majority	  	32
	Section 6.6	 	Limitation on Suits	  	33
	Section 6.7	 	Rights of Holders to Receive Payment	  	33
	Section 6.8	 	Collection Suit by Trustee	  	33
	Section 6.9	 	Trustee May File Proofs of Claim	  	33
	Section 6.10	 	Priorities	  	34
	Section 6.11	 	Undertaking for Costs	  	34
	Section 6.12	 	Waiver of Stay, Extension or Usury Laws	  	35
	
	ARTICLE VII TRUSTEE
			
	Section 7.1	 	Duties of Trustee	  	35
	Section 7.2	 	Rights of Trustee	  	36
	Section 7.3	 	Individual Rights of Trustee	  	37
	Section 7.4	 	Trustee’s Disclaimer	  	38
	Section 7.5	 	Notice of Defaults	  	38
	Section 7.6	 	Reports by Trustee to Holders	  	38
	Section 7.7	 	Compensation and Indemnity	  	38
	Section 7.8	 	Replacement of Trustee	  	39
	Section 7.9	 	Successor Trustee by Merger	  	40
	Section 7.10	 	Eligibility; Disqualification	  	40
	Section 7.11	 	Preferential Collection of Claims Against Company	  	40
	
	ARTICLE VIII DISCHARGE OF INDENTURE
			
	Section 8.1	 	Discharge of Liability on Securities	  	40
	Section 8.2	 	Repayment to the Company	  	40

  

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 ARTICLE IX AMENDMENTS 
  

					
	Section 9.1	 	Without Consent of Holders	  	41
	Section 9.2	 	With Consent of Holders	  	41
	Section 9.3	 	Compliance with Trust Indenture Act	  	43
	Section 9.4	 	Revocation and Effect of Consents, Waivers and Actions	  	43
	Section 9.5	 	Notation on or Exchange of Securities	  	43
	Section 9.6	 	Trustee to Sign Supplemental Indentures	  	43
	Section 9.7	 	Effect of Supplemental Indentures	  	43
	
	ARTICLE X CONVERSIONS
			
	Section 10.1	 	Conversion Privilege	  	44
	Section 10.2	 	Conversion Procedure; Conversion Price; Fractional Shares.	  	46
	Section 10.3	 	Adjustment of Conversion Price for Common Stock.	  	48
	Section 10.4	 	Consolidation or Merger of the Company.	  	57
	Section 10.5	 	Notice of Adjustment.	  	59
	Section 10.6	 	Notice in Certain Events.	  	59
	Section 10.7	 	Company To Reserve Stock: Registration; Listing.	  	60
	Section 10.8	 	Taxes on Conversion.	  	61
	Section 10.9	 	Conversion After Record Date.	  	61
	Section 10.10	 	Company Determination Final.	  	61
	Section 10.11	 	Responsibility of Trustee for Conversion Provisions.	  	61
	Section 10.12	 	Unconditional Right of Holders to Convert.	  	62
	
	ARTICLE XI MISCELLANEOUS
			
	Section 11.1	 	Trust Indenture Act Controls	  	62
	Section 11.2	 	Notices	  	62
	Section 11.3	 	Communication by Holders with Other Holders	  	63
	Section 11.4	 	Certificate and Opinion as to Conditions Precedent	  	63
	Section 11.5	 	Statements Required in Certificate or Opinion	  	63
	Section 11.6	 	Separability Clause	  	64
	Section 11.7	 	Rules by Trustee, Paying Agent, Conversion Agent and Registrar	  	64
	Section 11.8	 	Legal Holidays	  	64
	Section 11.9	 	GOVERNING LAW	  	64
	Section 11.10	 	No Recourse Against Others	  	64
	Section 11.11	 	Successors	  	64
	Section 11.12	 	Multiple Originals	  	64

 EXHIBIT A Form of Global Security 
 EXHIBIT B Form of Certificated Security 
  

 iii 

 INDENTURE dated as of
                    , 2006 between THE PMI GROUP, INC., a Delaware corporation (“Company”), and THE BANK OF NEW YORK TRUST
COMPANY, N.A., a national banking association (“Trustee”). 
 Each party agrees as follows for the benefit of the
other party and for the equal and ratable benefit of the Holders of the Company’s 2.50% Senior Convertible Debentures due July 15, 2021: 
 ARTICLE I 
 DEFINITIONS AND INCORPORATION BY REFERENCE 
 Section 1.1 Definitions. 
 “Affiliate” of any specified person means any other person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified person. For the purposes of this
definition, “control” when used with respect to any specified person means the power to direct or cause the direction of the management and policies of such person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing. 
 “Applicable Procedures” means, with respect to any transfer or transaction involving a Global Security or beneficial interest therein, the rules and procedures of the Depositary for such Security, in each case to the
extent applicable to such transaction and as in effect from time to time. 
 “Board of Directors” means either the
board of directors of the Company or any duly authorized committee of such board. 
 “Board Resolution” means a
resolution of the Board of Directors. 
 “Business Day” means, with respect to any Security, a day that in the City
of New York, is not a day on which banking institutions are authorized by law or regulation to close. 
 “Calculation
Agent” shall mean initially The Bank of New York Trust Company, N.A. and its successors and assigns. 
 “Capital
Stock” for any corporation means any and all shares, interests, rights to purchase, warrants, options, participations or other equivalents of or interests in (however designated) stock issued by that corporation. 
 “Certificated Securities” means Securities that are in the form of the Securities attached hereto as Exhibit B. 

 “Common Stock” shall mean the Common Stock, $0.01 par value per share, of the
Company existing on the date of this Indenture or any other shares of Capital Stock of the Company into which such Common Stock shall be reclassified or changed. 
 “Company” means the party named as the “Company” in the first Section of this Indenture until a successor replaces it pursuant to the applicable provisions of this Indenture and,
thereafter, shall mean such successor. The foregoing sentence shall likewise apply to any subsequent such successor or successors. 
 “Company Request” or “Company Order” means a written request or order signed in the name of the Company by any two Officers. 
 “Conversion Price” means initially $44.155, subject to adjustment as set forth herein. 
 “Corporate Trust Office” means the principal office of the Trustee at which at any time its corporate trust business shall be
administered, which office at the date hereof is located at 700 South Florida Street, Suite 500, Los Angeles, California, 90017, Attention: Corporate Trust Administration, or such other address as the Trustee may designate from time to time by
notice to the Holders and the Company, or the principal corporate trust office of any successor Trustee (or such other address as a successor Trustee may designate from time to time by notice to the Holders and the Company). 
 “Default” means any event which is, or after notice or passage of time or both would be, an Event of Default. 
 “Global Securities” means Securities that are in the form of the Securities attached hereto as Exhibit A, and that are registered
in the register of Securities in the name of a Depositary or a nominee thereof. 
 “Holder” or
“Securityholder” means a person in whose name a Security is registered on the Registrar’s books. 
 “Indenture” means this Indenture, as amended or supplemented from time to time in accordance with the terms hereof, including the provisions of the TIA that are deemed to be a part hereof. 
 “Issue Date” of any Security means the date on which the Security was originally issued or deemed issued as set forth on the face
of the Security. 
 “NYSE” means The New York Stock Exchange, Inc. 
 “Officer” means the Chairman of the Board, the Vice Chairman, the Chief Executive Officer, the President, any Executive Vice
President, any Senior Vice President, the Treasurer, the Controller, or the Secretary or any Assistant Treasurer or Assistant Secretary of the Company. 
  

 2 

 “Officers’ Certificate” means a written certificate containing the
information specified in Sections 11.4 and 11.5, signed in the name of the Company by any two Officers, and delivered to the Trustee. An Officers’ Certificate given pursuant to Section 4.3 shall be signed by an authorized financial or
accounting Officer of the Company but need not contain the information specified in Sections 11.4 and 11.5. 
 “Opinion of
Counsel” means a written opinion containing the information specified in Sections 11.4 and 11.5, from legal counsel who is reasonably acceptable to the Trustee. The counsel may be an employee of, or counsel to, the Company or the
Trustee. 
 “Person” means any individual, corporation, limited liability company, partnership, joint venture,
association, joint-stock company, trust, unincorporated organization, or government or any agency or political subdivision thereof. 
 “PMI” shall mean PMI Mortgage Insurance Co., an Arizona corporation. 
 “PMI
Australia” shall mean PMI Mortgage Insurance Ltd, a company organized under the laws of Australia. 
 “PMI Australia
Holdings” shall mean PMI Mortgage Insurance Australia (Holdings) Pty Limited, a company organized under the laws of Australia. 
 “Redemption Date” or “redemption date” shall mean the date specified in a notice of redemption on which the Securities may be redeemed in accordance with the terms of the Securities and this Indenture.

 “Redemption Price” or “redemption price” shall have the meaning set forth in Section 5 of the
Securities. 
 “Responsible Officer” shall mean, when used with respect to the Trustee, any officer within the
corporate trust department of the Trustee, including any vice president, assistant vice president, assistant secretary, assistant treasurer, trust officer or any other officer of the Trustee who customarily performs functions similar to those
performed by the persons who at the time shall be such officers, respectively, or to whom any corporate trust matter is referred because of such person’s knowledge of and familiarity with the particular subject and who shall have direct
responsibility for the administration of this Indenture. 
 “Sale Price” of the shares of Common Stock or Exchange
Property, as applicable, on any date means the closing per share sale price (or, if no closing sale price is reported, the average of the bid and ask prices or, if more than one in either case, the average of the average bid and the average ask
prices) on such date as reported on the NYSE or, if the shares of Common Stock or Exchange Property, as applicable, are not listed on the NYSE, as reported on the principal other national or regional securities exchange on which the shares of Common
Stock or Exchange Property, as applicable, are then listed, or if not reported on a national or regional securities exchange, as reported by the Nasdaq system. In the absence of such quotations, the Company shall be entitled to determine the sales
price on the basis of such quotations as it considers appropriate. 
 “SEC” means the Securities and Exchange
Commission. 
  

 3 

 “Securities” means any of the Company’s 2.50% Senior Convertible Debentures
due 2021, as amended or supplemented from time to time, issued under this Indenture. 
 “Securityholder” or
“Holder” means a person in whose name a Security is registered on the Registrar’s books. 
 “Stated
Maturity”, when used with respect to any Security, means July 15, 2021. 
 “Subsidiary” means any
person of which at least a majority of the outstanding Voting Stock shall at the time directly or indirectly be owned or controlled by the Company or by one or more Subsidiaries or by the Company and one or more Subsidiaries. 
 “TIA” means the Trust Indenture Act of 1939 as in effect on the date of this Indenture, provided, however, that in the event the
TIA is amended after such date, TIA means, to the extent required by any such amendment, the TIA as so amended. 
 “Trading
Day” means a day during which trading in securities generally occurs on the NYSE or, if the Common Stock is not listed on the NYSE, on the principal other national or regional securities exchange on which the Common Stock then is listed
or, if the Common Stock is not listed on a national or regional securities exchange, on the National Association of Securities Dealers Automated Quotation System or, if the Common Stock is not quoted on the National Association of Securities Dealers
Automated Quotation System, on the principal other market on which the Common Stock is then traded. 
 “Trustee”
means the party named as the “Trustee” in the first paragraph of this Indenture until a successor replaces it pursuant to the applicable provisions of this Indenture and, thereafter, shall mean such successor. The foregoing sentence shall
likewise apply to any subsequent such successor or successors. 
 “Voting Stock” of a person means Capital Stock of
such person of the class or classes pursuant to which the holders thereof have the general voting power under ordinary circumstances to elect at least a majority of the board of directors, managers or trustees of such person (irrespective of whether
or not at the time Capital Stock of any other class or classes shall have or might have voting power by reason of the happening of any contingency). 
 Section 1.2 Other Definitions. 
  

			
	Term Section:	 	Defined in:
		
	“Agent Members”	 	2.12(b)
	“beneficial owner”	 	3.8(a)
	“Cash Amount”	 	10.2
	“Change of Control”	 	3.8(a)
	“Change of Control Purchase Date”	 	3.8(a)
	“Change of Control Purchase Notice”	 	3.8(c)
	“Change of Control Purchase Price”	 	3.8(a)
	“Company Notice”	 	3.9
	“Company Notice Date”	 	3.9

  

 4 

			
	“Continuing Director”	 	3.8(a)
	“Conversion Agent”	 	2.3
	“Conversion Date”	 	10.2(c)
	“Conversion Period”	 	10.1(b)
	“Conversion Rate”	 	10.1(b)
	“Conversion Value”	 	10.1(b)
	“Current Market Price”	 	10.3(g)
	“Daily Share Amount”	 	10.2(a)
	“Depositary”	 	2.1(a)
	“Designated Subsidiary”	 	6.1
	“DTC”	 	2.1(a)
	“Event of Default”	 	6.1
	“Exchange Property”	 	10.2(e)
	“Ex-Dividend Time”	 	10.1(b)
	“Excess Amount”	 	10.3(f)
	“Exchange Act”	 	2.12(b)
	“Expiration Time”	 	10.3(f)
	“Fair Market Value”	 	10.3(g)
	“Legal Holiday”	 	11.8
	“Net Shares”	 	10.2(a)
	“Notice of Default”	 	6.1
	“Parity Value”	 	10.1(b)
	“Paying Agent”	 	2.3
	“Purchase Date”	 	3.7
	“Purchase Notice”	 	3.7
	“Purchase Price”	 	3.7
	“Record Date”	 	10.3(g)
	“Reference Period”	 	10.3(d)
	“Registrar”	 	2.3
	“Rule 144A Information”	 	4.6
	“Securities Act”	 	4.6
	“Settlement Amount”	 	10.2(a)
	“Spin-Off”	 	10.3(d)
	“Total Assets”	 	6.1
	“Trading Price”	 	10.1(b)
	“Trigger Event”	 	10.3(d)

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

 5 

 “indenture security holder” means a Securityholder. 
 “indenture to be qualified” means this Indenture. 
 “indenture trustee” or “institutional trustee” means the Trustee. 
 “obligor”
on the indenture securities means the Company. 
 All other TIA terms used in this Indenture that are defined by the TIA, defined by TIA
reference to another statute or defined by SEC rule have the meanings assigned to them by such definitions. 
 Section 1.4 Rules of
Construction. Unless the context otherwise requires: 
 (1) a term has the meaning assigned to it; 
 (2) an accounting term not otherwise defined has the meaning assigned to it in accordance with generally accepted accounting principles as in effect from
time to time; 
 (3) “or” is not exclusive; 
 (4) “including” means including, without limitation; and 
 (5) words in the singular include the
plural, and words in the plural include the singular. 
 Section 1.5 Acts of Holders. (a) Any request, demand, authorization,
direction, notice, consent, waiver or other action provided by this Indenture to be given or taken by Holders may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Holders in person or by an agent
duly appointed in writing; and, except as herein otherwise expressly provided, such action shall become effective when such instrument or instruments are delivered to the Trustee and, where it is hereby expressly required, to the Company, as
described in Section 11.2. Such instrument or instruments (and the action embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of Holders signing such instrument or instruments. Proof of execution of
any such instrument or of a writing appointing any such agent shall be sufficient for any purpose of this Indenture and conclusive in favor of the Trustee and the Company, if made in the manner provided in this Section. 
 (b) The fact and date of the execution by any person of any such instrument or writing may be proved by the affidavit of a witness of such execution or
by a certificate of a notary public or other officer authorized by law to take acknowledgments of deeds, certifying that the individual signing such instrument or writing acknowledged to such officer the execution thereof. Where such execution is by
a signer acting in a capacity other than such signer’s individual capacity, such certificate or affidavit shall also constitute sufficient proof of such signer’s authority. The fact and date of the execution of any such instrument or
writing, or the authority of the person executing the same, may also be proved in any other manner which the Trustee deems sufficient. 
  

 6 

 (c) The principal amount and serial number of any Security and the ownership of Securities shall be
proved by the register for the Securities. 
 (d) Any request, demand, authorization, direction, notice, consent, waiver or other Act of the
Holder of any Security shall bind every future Holder of the same Security and the Holder of every Security issued upon the registration of transfer thereof or in exchange therefor or in lieu thereof in respect of anything done, omitted or suffered
to be done by the Trustee or the Company in reliance thereon, whether or not notation of such action is made upon such Security. 
 (e) If
the Company shall solicit from the Holders any request, demand, authorization, direction, notice, consent, waiver or other Act, the Company may, at its option, by or pursuant to a Board Resolution, fix in advance a record date for the determination
of Holders entitled to give such request, demand, authorization, direction, notice, consent, waiver or other Act, but the Company shall have no obligation to do so. If such a record date is fixed, such request, demand, authorization, direction,
notice, consent, waiver or other Act may be given before or after such record date, but only the Holders of record at the close of business on such record date shall be deemed to be Holders for the purposes of determining whether Holders of the
requisite proportion of outstanding Securities have authorized or agreed or consented to such request, demand, authorization, direction, notice, consent, waiver or other Act, and for that purpose the outstanding Securities shall be computed as of
such record date; provided that no such authorization, agreement or consent by the Holders on such record date shall be deemed effective unless it shall become effective pursuant to the provisions of this Indenture not later than six months after
the record date. 
 ARTICLE II 
 THE SECURITIES 
 Section 2.1 Form and Dating. The Securities and the Trustee’s certificate of authentication
shall be substantially in the form of Exhibits A and B, which are a part of this Indenture. The Securities may have notations, legends or endorsements required by law, stock exchange rule or usage (provided that any such notation, legend or
endorsement required by usage is in a form acceptable to the Company). The Company shall provide any such notations, legends or endorsements to the Trustee in writing. Each Security shall be dated the date of its authentication. 
 (a) Global Securities in General. Each Global Security shall represent such of the outstanding Securities as shall be specified therein and each
shall provide that it shall represent the aggregate amount of outstanding Securities from time to time endorsed thereon and that the aggregate amount of outstanding Securities represented thereby may from time to time be reduced or increased, as
appropriate, to reflect exchanges, redemptions, repurchases and conversions. 
 Any adjustment of the aggregate principal amount of a Global
Security to reflect the amount of any increase or decrease in the amount of outstanding Securities represented thereby shall be made by the Trustee in accordance with instructions given by the Holder thereof as required by Section 2.12 hereof
and shall be made on the records of the Trustee and The Depository Trust Company (“DTC”) or the nominee thereof (DTC, or any successor thereto, and any such nominee being hereinafter referred to as the
“Depositary”). 
  

 7 

 (b) Book-Entry Provisions. This Section 2.1(b) shall apply only to Global Securities
deposited with or on behalf of the Depositary. 
 The Company shall execute and the Trustee shall, in accordance with this
Section 2.1(b), authenticate and deliver initially one or more Global Securities that (a) shall be registered in the name of the Depositary, (b) shall be delivered by the Trustee to the Depositary or pursuant to the Depositary’s
instructions and (c) shall be substantially in the form of Exhibit A attached hereto. 
 (c) Certificated Securities.
Securities not issued as interests in the Global Securities will be issued in certificated form substantially in the form of Exhibit B attached hereto. 
 Section 2.2 Execution and Authentication. The Securities shall be executed on behalf of the Company by any Officer. The signature of the Officer on the Securities may be manual or facsimile. 
 Securities bearing the manual or facsimile signatures of individuals who were at the time of the execution of the Securities Officers shall bind the
Company, notwithstanding that such individuals or any of them have ceased to hold such offices prior to the authentication and delivery of such Securities or did not hold such offices at the date of authentication of such Securities. 
 No Security shall be entitled to any benefit under this Indenture or be valid or obligatory for any purpose unless there appears on such Security a
certificate of authentication substantially in the form provided for herein duly executed by the Trustee by manual signature of an authorized signatory, and such certificate upon any Security shall be conclusive evidence, and the only evidence, that
such Security has been duly authenticated and delivered hereunder. 
 The Trustee shall authenticate and deliver the Securities for original
issue in an aggregate principal amount of up to $             upon one or more Company Orders without any further action by the Company (other than as contemplated in Section 11.4 and
Section 11.5 hereof). The aggregate principal amount of the Securities due at the Stated Maturity thereof outstanding at any time may not exceed the amount set forth in the foregoing sentence, except upon the accrual of contingent interest as
contemplated in the form of Security attached hereto as Exhibit A. 
 The Securities shall be issued only in registered form without
coupons and only in denominations of $1,000 of principal amount and any integral multiple of $1,000. 
 Section 2.3 Registrar, Paying
Agent, Conversion Agent and Calculation Agent. The Company shall maintain an office or agency where Securities may be presented for registration of transfer or for exchange (“Registrar”), an office or agency where
Securities may be presented for purchase or payment (“Paying Agent”) and an office or agency where Securities may be presented for conversion (“Conversion Agent”). The Registrar shall keep a

  

 8 

 register of the Securities and of their transfer and exchange. The Company may have one or more co-registrars, one or
more additional paying agents and one or more additional conversion agents. The term Paying Agent includes any additional paying agent, including any named pursuant to Section 4.5. The term Conversion Agent includes any additional conversion
agent, including any named pursuant to Section 4.5. 
 The Company shall enter into an appropriate agency agreement with any Registrar,
Paying Agent, Conversion Agent, Calculation Agent or co-registrar (in each case, if such Registrar, agent or co-registrar is a Person other than the Trustee). The agreement shall implement the provisions of this Indenture that relate to such agent.
The Company shall notify the Trustee of the name and address of any such agent. If the Company fails to maintain a Registrar, Paying Agent or Conversion Agent, the Trustee shall act as such and shall be entitled to appropriate compensation therefor
pursuant to Section 7.7. The Company or any Subsidiary or an Affiliate of either of them may act as Paying Agent, Registrar, Conversion Agent or co-registrar. 
 The Company initially appoints the Trustee as Registrar, Conversion Agent, Calculation Agent and Paying Agent in connection with the Securities. 
 Section 2.4 Paying Agent to Hold Money and Securities in Trust. Except as otherwise provided herein, on or prior to each due date of payments in
respect of any Security, the Company shall deposit with the Paying Agent a sum of money (in immediately available funds if deposited on the due date) and shares of Common Stock, if any, sufficient to make such payments when so becoming due. The
Company shall require each Paying Agent (other than the Trustee) to agree in writing that the Paying Agent shall hold in trust for the benefit of Securityholders or the Trustee all money and shares of Common Stock held by the Paying Agent for the
making of payments in respect of the Securities and shall notify the Trustee of any default by the Company in making any such payment. At any time during the continuance of any such default, the Paying Agent shall, upon the written request of the
Trustee, forthwith pay to the Trustee all money and shares of Common Stock so held in trust. If the Company, a Subsidiary or an Affiliate of either of them acts as Paying Agent, it shall segregate the money and shares of Common Stock held by it as
Paying Agent and hold it as a separate trust fund. The Company at any time may require a Paying Agent to pay all money and shares of Common Stock held by it to the Trustee and to account for any funds and Common Stock disbursed by it. Upon doing so,
the Paying Agent shall have no further liability for the money or shares of Common Stock. 
 Section 2.5 Securityholder Lists. The
Trustee shall preserve in as current a form as is reasonably practicable the most recent list available to it of the names and addresses of Securityholders. If the Trustee is not the Registrar, the Company shall cause to be furnished to the Trustee
at least semiannually on January 1 and July 1 a listing of Securityholders dated within 15 days of the date on which the list is furnished and at such other times as the Trustee may request in writing a list in such form and as of such
date as the Trustee may reasonably require of the names and addresses of Securityholders. 
 Section 2.6 Transfer and Exchange.
(a) Subject to Section 2.12 hereof, upon surrender for registration of transfer of any Security, together with a written instrument of transfer satisfactory to the Registrar duly executed by the Securityholder or such 
  

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 Securityholder’s attorney duly authorized in writing, at the office or agency of the Company designated as Registrar
or co-registrar pursuant to Section 2.3, the Company shall execute, and the Trustee shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Securities of any authorized denomination or
denominations, of a like aggregate principal amount. The Company shall not charge a service charge for any registration of transfer or exchange, but the Company may require payment of a sum sufficient to pay all taxes, assessments or other
governmental charges that may be imposed in connection with the transfer or exchange of the Securities from the Securityholder requesting such transfer or exchange. 
 At the option of the Holder, Securities may be exchanged for other Securities of any authorized denomination or denominations, of a like aggregate principal amount upon surrender of the Securities to be exchanged,
together with a written instrument of transfer satisfactory to the Registrar duly executed by the Securityholder or such Securityholder’s attorney duly authorized in writing, at such office or agency. Whenever any Securities are so surrendered
for exchange, the Company shall execute, and the Trustee shall authenticate and deliver, the Securities which the Holder making the exchange is entitled to receive. 
 The Company shall not be required to make, and the Registrar need not register, transfers or exchanges of Securities selected for redemption (except, in the case of Securities to be redeemed in part, the portion
thereof not to be redeemed) or any Securities in respect of which a Purchase Notice or Change of Control Purchase Notice has been given and not withdrawn by the Holder thereof in accordance with the terms of this Indenture (except, in the case of
Securities to be purchased in part, the portion thereof not to be purchased) or any Securities for a period of 15 days before the mailing of a notice of redemption of Securities to be redeemed. 
 (b) Notwithstanding any provision to the contrary herein, so long as a Global Security remains outstanding and is held by or on behalf of the Depositary,
transfers of a Global Security, in whole or in part, shall be made only in accordance with Section 2.12 and this Section 2.6(b). Transfers of a Global Security shall be limited to transfers of such Global Security in whole or in part, to
the Depositary, to nominees of the Depositary or to a successor of the Depositary or such successor’s nominee. 
 (c) Successive
registrations and registrations of transfers and exchanges as aforesaid may be made from time to time as desired, and each such registration shall be noted on the register for the Securities. 
 (d) Any Registrar appointed pursuant to Section 2.3 hereof shall provide to the Trustee such information as the Trustee may reasonably require in
connection with the delivery by such Registrar of Securities upon transfer or exchange of Securities. 
 (e) No Registrar shall be required
to make registrations of transfer or exchange of Securities during any periods designated in the text of the Securities or in this Indenture as periods during which such registration of transfers and exchanges need not be made. 
 Section 2.7 Replacement Securities. If (a) any mutilated Security is surrendered to the Trustee, or (b) the Company and the Trustee
receive evidence to their satisfaction of the 
  

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 destruction, loss or theft of any Security, and there is delivered to the Company and the Trustee such security or
indemnity as may be required by them to save each of them harmless, then, in the absence of notice to the Company or the Trustee that such Security has been acquired by a bona fide purchaser, the Company shall execute and upon its written request
the Trustee shall authenticate and deliver, in exchange for any such mutilated Security or in lieu of any such destroyed, lost or stolen Security, a new Security of like tenor and principal amount, bearing a certificate number not contemporaneously
outstanding. 
 In case any such mutilated, destroyed, lost or stolen Security has become or is about to become due and payable, or is about
to be purchased by the Company pursuant to Article III hereof, the Company in its discretion may, instead of issuing a new Security, pay or purchase such Security, as the case may be. 
 Upon the issuance of any new Securities under this Section 2.7, the Company may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) connected therewith. 
 Every new Security issued pursuant to this Section 2.7 in lieu of any mutilated, destroyed, lost or stolen Security shall constitute an original additional contractual obligation of the Company, whether or not
the destroyed, lost or stolen Security shall be at any time enforceable by anyone, and shall be entitled to all benefits of this Indenture equally and proportionately with any and all other Securities duly issued hereunder. 
 The provisions of this Section 2.7 are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the
replacement or payment of mutilated, destroyed, lost or stolen Securities. 
 Section 2.8 Outstanding Securities; Determinations of
Holders’ Action. Securities outstanding at any time are all the Securities authenticated by the Trustee except for those cancelled by it, those paid pursuant to Section 2.7, those delivered to it for cancellation and those described in
this Section 2.8 as not outstanding. A Security does not cease to be outstanding because the Company or an Affiliate thereof holds the Security; provided, however, that in determining whether the Holders of the requisite principal amount of
Securities have given or concurred in any request, demand, authorization, direction, notice, consent, waiver or other Act hereunder, Securities owned by the Company or any other obligor upon the Securities or any Affiliate of the Company or such
other obligor shall be disregarded and deemed not to be outstanding, except that, in determining whether the Trustee shall be protected in relying upon any such request, demand, authorization, direction, notice, consent, waiver or other Act, only
Securities which a Responsible Officer of the Trustee actually knows to be so owned shall be so disregarded. Subject to the foregoing, only Securities outstanding at the time of such determination shall be considered in any such determination
(including, without limitation, determinations pursuant to Articles VI and IX). 
 If a Security is replaced pursuant to Section 2.7, it
ceases to be outstanding unless the Trustee receives proof satisfactory to it that the replaced Security is held by a bona fide purchaser. 
  

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 If the Paying Agent holds, in accordance with this Indenture, on a Redemption Date, or on the Business
Day following a Purchase Date or a Change of Control Purchase Date, or on Stated Maturity, money sufficient to pay Securities payable on that date, then immediately after such Redemption Date, Purchase Date, Change of Control Purchase Date or Stated
Maturity, as the case may be, such Securities shall cease to be outstanding and interest, including contingent interest and additional interest, if any, on such Securities shall cease to accrue; provided, that if such Securities are to be redeemed,
notice of such redemption has been duly given pursuant to this Indenture or provision therefor satisfactory to the Trustee has been made. 
 If a Security is converted in accordance with Article X, then from and after the time of conversion on the Conversion Date, such Security shall cease to be outstanding and interest, including contingent interest and additional interest, if
any, shall cease to accrue on such Security. 
 Section 2.9 Temporary Securities. Pending the preparation of definitive Securities,
the Company may execute, and upon Company Order the Trustee shall authenticate and deliver, temporary Securities which are printed, lithographed, typewritten, mimeographed or otherwise produced, in any authorized denomination, substantially of the
tenor of the definitive Securities in lieu of which they are issued and with such appropriate insertions, omissions, substitutions and other variations as the officers executing such Securities may determine, as conclusively evidenced by their
execution of such Securities. 
 If temporary Securities are issued, the Company will cause definitive Securities to be prepared without
unreasonable delay. After the preparation of definitive Securities, the temporary Securities shall be exchangeable for definitive Securities upon surrender of the temporary Securities at the office or agency of the Company designated for such
purpose pursuant to Section 2.3, without charge to the Holder. Upon surrender for cancellation of any one or more temporary Securities the Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a like
principal amount of definitive Securities of authorized denominations. Until so exchanged the temporary Securities shall in all respects be entitled to the same benefits under this Indenture as definitive Securities. 
 Section 2.10 Cancellation. All Securities surrendered for payment, purchase by the Company pursuant to Article III, conversion, redemption or
registration of transfer or exchange shall, if surrendered to any person other than the Trustee, be delivered to the Trustee and shall be promptly cancelled by it. The Company may at any time deliver to the Trustee for cancellation any Securities
previously authenticated and delivered hereunder which the Company may have acquired in any manner whatsoever, and all Securities so delivered shall be promptly cancelled by the Trustee. The Company may not issue new Securities to replace Securities
it has paid or delivered to the Trustee for cancellation or that any Holder has converted pursuant to Article X. No Securities shall be authenticated in lieu of or in exchange for any Securities cancelled as provided in this Section, except as
expressly permitted by this Indenture. All cancelled Securities held by the Trustee shall be disposed of by the Trustee in accordance with the Trustee’s customary procedure. 
 Section 2.11 Persons Deemed Owners. Prior to due presentment of a Security for registration of transfer, the Company, the Trustee and any agent of
the Company or the 
  

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 Trustee may treat the person in whose name such Security is registered as the owner of such Security for the purpose of
receiving payment of principal of the Security or the payment of any Redemption Price, Purchase Price or Change of Control Purchase Price in respect thereof, and interest thereon, for the purpose of conversion and for all other purposes whatsoever,
whether or not such Security be overdue, and neither the Company, the Trustee nor any agent of the Company or the Trustee shall be affected by notice to the contrary. 
 Section 2.12 Global Securities. (a) Notwithstanding any other provisions of this Indenture or the Securities, (A) transfers of a Global Security, in whole or in part, shall be made only in accordance
with Section 2.6 and Section 2.12(a)(i), (B) transfers of a beneficial interest in a Global Security for a Certificated Security shall comply with Section 2.6, Section 2.12(a)(ii) below and Section 2.12(b)(1) below, and
(C) transfers of a Certificated Security shall comply with Section 2.6 and Sections 2.12(a)(iii) and (iv) below. 
 (i) Transfer of Global Security. A Global Security may not be transferred, in whole or in part, to any person other than the Depositary or a nominee or any successor thereof, and no such transfer to any such other person may be
registered; provided that this clause (i) shall not prohibit any transfer of a Security that is issued in exchange for a Global Security but is not itself a Global Security. No transfer of a Security to any person shall be effective under this
Indenture or the Securities unless and until such Security has been registered in the name of such person. Nothing in this Section 2.12(a)(i) shall prohibit or render ineffective any transfer of a beneficial interest in a Global Security
effected in accordance with the other provisions of this Section 2.12(a). 
 (ii) Restrictions on Transfer of a
Beneficial Interest in a Global Security for a Certificated Security. A beneficial interest in a Global Security may not be exchanged for a Certificated Security except upon satisfaction of the requirements set forth below and in
Section 2.12(b)(1) below. Upon receipt by the Trustee of a transfer of a beneficial interest in a Global Security in accordance with Applicable Procedures for a Certificated Security in the form satisfactory to the Trustee, together with
written instructions to the Trustee to make, or direct the Registrar to make, an adjustment on its books and records with respect to such Global Security to reflect a decrease in the aggregate principal amount of the Securities represented by the
Global Security, such instructions to contain information regarding the Depositary account to be credited with such decrease then the Trustee shall cause, or direct the Registrar to cause, in accordance with the standing instructions and procedures
existing between the Depositary and the Registrar, the aggregate principal amount of the Securities represented by the Global Security to be decreased by the aggregate principal amount of the Certificated Security to be issued, shall issue such
Certificated Security and shall debit or cause to be debited to the account of the person specified in such instructions a beneficial interest in the Global Security equal to the principal amount of the Certificated Security so issued. 

(iii) Transfer and Exchange of Certificated Securities. When Certificated Securities are presented to the Registrar with a
request: 
 (y) to register the transfer of such Certificated Securities; or 
  

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 (z) to exchange such Certificated Securities for an equal principal amount of Certificated Securities of
other authorized denominations, the Registrar shall register the transfer or make the exchange as requested if its reasonable requirements for such transaction are met; provided, however, that the Certificated Securities surrendered for transfer or
exchange shall be duly endorsed or accompanied by a written instrument of transfer in form reasonably satisfactory to the Company and the Registrar, duly executed by the Holder thereof or his attorney duly authorized in writing. 
 (iv) Restrictions on Transfer of a Certificated Security for a Beneficial Interest in a Global Security. A Certificated Security
may not be exchanged for a beneficial interest in a Global Security except upon satisfaction of the requirements set forth below. 
 Upon
receipt by the Trustee of a Certificated Security, duly endorsed or accompanied by appropriate instruments of transfer, in form satisfactory to the Trustee, together with written instructions directing the Trustee to make, or to direct the Registrar
to make, an adjustment on its books and records with respect to such Global Security to reflect an increase in the aggregate principal amount of the Securities represented by the Global Security, such instructions to contain information regarding
the Depositary account to be credited with such increase, then the Trustee shall cancel such Certificated Security and cause, or direct the Registrar to cause, in accordance with the standing instructions and procedures existing between the
Depositary and the Registrar, the aggregate principal amount of Securities represented by the Global Security to be increased by the aggregate principal amount of the Certificated Security to be exchanged, and shall credit or cause to be credited to
the account of the person specified in such instructions a beneficial interest in the Global Security equal to the principal amount of the Certificated Security so cancelled. If no Global Securities are then outstanding, the Company shall issue and
the Trustee shall authenticate, upon written order of the Company in the form of an Officers’ Certificate, a new Global Security in the appropriate principal amount. 
 (b) The provisions of clauses (1), (2), (3) and (4) below shall apply only to Global Securities: 
  

	 	(1)	Notwithstanding any other provisions of this Indenture or the Securities, a Global Security shall not be exchanged in whole or in part for a Security registered in the name of any
person other than the Depositary or one or more nominees thereof, provided that a Global Security may be exchanged for Securities registered in the names of any person designated by the Depositary in the event that (i) the Depositary has
notified the Company that it is unwilling or unable to continue as Depositary for such Global Security or such Depositary has ceased to be a “clearing agency” registered under the Securities Exchange Act of 1934, as amended (the
“Exchange Act”), and a successor Depositary is not appointed by the Company within 90 days or (ii) an Event of Default has occurred and is continuing with respect to the Securities. Any Global Security exchanged pursuant
to clause (i) above shall be so exchanged in whole and not in part, and any Global Security exchanged pursuant to clause (ii) above may be exchanged in whole or from time to time in part as directed by the Depositary. Any

  

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 Security issued in exchange for a Global Security or any portion thereof shall be a Global Security;
provided that any such Security so issued that is registered in the name of a person other than the Depositary or a nominee thereof shall not be a Global Security. 
  

	 	(2)	Securities issued in exchange for a Global Security or any portion thereof shall be issued in definitive, fully registered form, without interest coupons, shall have an aggregate
principal amount equal to that of such Global Security or portion thereof to be so exchanged, shall be registered in such names and be in such authorized denominations as the Depositary shall designate and shall bear the applicable legends provided
for herein. Any Global Security to be exchanged in whole shall be surrendered by the Depositary to the Trustee, as Registrar. With regard to any Global Security to be exchanged in part, either such Global Security shall be so surrendered for
exchange or, if the Trustee is acting as custodian for the Depositary or its nominee with respect to such Global Security, the principal amount thereof shall be reduced, by an amount equal to the portion thereof to be so exchanged, by means of an
appropriate adjustment made on the records of the Trustee. Upon any such surrender or adjustment, the Trustee shall authenticate and deliver the Security issuable on such exchange to or upon the order of the Depositary or an authorized
representative thereof. 

  

	 	(3)	Subject to the provisions of clause (5) below, the registered Holder may grant proxies and otherwise authorize any person, including Agent Members (as defined below) and
persons that may hold interests through Agent Members, to take any action which a holder is entitled to take under this Indenture or the Securities. 

  

	 	(4)	In the event of the occurrence of any of the events specified in clause (1) above, the Company will promptly make available to the Trustee a reasonable supply of Certificated
Securities in definitive, fully registered form, without interest coupons. 

  

	 	(5)	Neither any members of, or participants in, the Depositary (collectively, the “Agent Members”) nor any other persons on whose behalf Agent Members may act
shall have any rights under this Indenture with respect to any Global Security registered in the name of the Depositary or any nominee thereof, or under any such Global Security, and the Depositary or such nominee, as the case may be, may be treated
by the Company, the Trustee and any agent of the Company or the Trustee as the absolute owner and holder of such Global Security for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall prevent the Company, the Trustee or any
agent of the Company or the Trustee from giving effect to any written certification, proxy or other authorization furnished by the Depositary or such nominee, as the case may be, or impair, as between the Depositary, its Agent Members and any other
person on whose behalf an Agent Member may act, the operation of customary practices of such Persons governing the exercise of the rights of a holder of any Security. 

  

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 Section 2.13 CUSIP Numbers. The Company may issue the Securities with one or more
“CUSIP” numbers (if then generally in use), and, if so, the Trustee shall use “CUSIP” numbers in notices of redemption as a convenience to Holders; provided that any such notice may state that no representation is made as to the
correctness of such numbers either as printed on the Securities or as contained in any notice of a redemption and that reliance may be placed only on the other identification numbers printed on the Securities, and any such redemption shall not be
affected by any defect in or omission of such numbers. The Company will promptly notify the Trustee of any change in the CUSIP numbers. 
 Section 2.14 Ranking. The indebtedness of the Company arising under or in connection with this Indenture and every outstanding Security issued under this Indenture from time to time constitutes and will constitute a senior unsecured
general obligation of the Company, ranking equally with other existing and future senior unsecured Indebtedness of the Company and ranking senior in right of payment to any future Indebtedness of the Company that is expressly made subordinate to the
Securities by the terms of such Indebtedness. For purposes of this Section 2.14 only, “Indebtedness” means, without duplication, the principal or face amount of (i) all obligations for borrowed money, (ii) all obligations
evidenced by debentures, notes or other similar instruments, (iii) all obligations in respect of letters of credit or bankers acceptances or similar instruments (or reimbursement obligations with respect thereto), (iv) all obligations to
pay the deferred purchase price of property or services, except trade accounts payable arising in the ordinary course of business, (v) all obligations as lessee which are capitalized in accordance with generally accepted accounting principles,
and (vi) all Indebtedness of others guaranteed by the Company or any of its Subsidiaries or for which the Company or any of its Subsidiaries is legally responsible or liable (whether by agreement to purchase indebtedness of, or to supply funds
or to invest in, others). 
 ARTICLE III 
 REDEMPTION AND PURCHASES 
 Section 3.1 Company’s Right to Redeem; Notices to Trustee. The
Company, at its option, may at any time redeem the Securities in accordance with the provisions of Section 5 of the Securities for cash as a whole, or from time to time in part, at a redemption price equal to the principal amount of those
Securities plus any accrued and unpaid interest, including contingent interest and additional interest, if any, on those Securities to the Redemption Date. If the Company elects to redeem Securities pursuant to Section 5 of the Securities, it
shall notify the Trustee in writing of the Redemption Date, the principal amount of Securities to be redeemed and the Redemption Price. 
 The Company shall give the notice to the Trustee provided for in this Section 3.1 by a Company Order, at least 40 days before the Redemption Date (unless a shorter notice shall be satisfactory to the Trustee). 
  

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 Section 3.2 Selection of Securities to Be Redeemed. If less than all the Securities are to be
redeemed, unless the procedures of the Depositary provide otherwise, the Trustee shall select the Securities to be redeemed by lot, on a pro rata basis or by another method the Trustee considers fair and appropriate (so long as such method is not
prohibited by the rules of any stock exchange on which the Securities are then listed). The Trustee shall make the selection within five Business Days after it receives the notice provided for in Section 3.1 from outstanding Securities not
previously called for redemption. The Trustee may select for redemption portions of the principal amount of Securities that have denominations larger than $1,000. 
 Securities and portions of Securities that the Trustee selects shall be in principal amounts of $1,000 or an integral multiple of $1,000. Provisions of this Indenture that apply to Securities called for redemption
also apply to portions of Securities called for redemption. The Trustee shall notify the Company promptly of the Securities or portions of the Securities to be redeemed. 
 Securities and portions of Securities that are to be redeemed are convertible by the Holder until the close of business on the second Business Day prior to the Redemption Date. If any Security selected for partial
redemption is converted in part before termination of the conversion right with respect to the portion of the Security so selected, the converted portion of such Security shall be deemed (so far as may be) to be the portion selected for redemption.
Securities which have been converted during a selection of Securities to be redeemed may be treated by the Trustee as outstanding for the purpose of such selection. 
 Section 3.3 Notice of Redemption. At least 30 days but not more than 60 days before a Redemption Date, the Company shall mail a notice of redemption by first-class mail, postage prepaid, to each Holder of
Securities to be redeemed. 
 The notice shall identify the Securities to be redeemed and shall state: 
  

	 	(1)	the Redemption Date; 

  

	 	(2)	the Redemption Price; 

  

	 	(3)	the Conversion Price; 

  

	 	(4)	the name and address of the Paying Agent and Conversion Agent; 

  

	 	(5)	that Securities called for redemption may be converted at any time before the close of business on the second Business Day prior to the Redemption Date; 

  

	 	(6)	that Holders who want to convert their Securities must satisfy the requirements set forth in Section 8 of the Securities; 

  

	 	(7)	that Securities called for redemption must be surrendered to the Paying Agent to collect the Redemption Price; 

  

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	 	(8)	if fewer than all of the outstanding Securities are to be redeemed, the certificate numbers, if any, and principal amounts of the particular Securities to be redeemed;

  

	 	(9)	that, unless the Company defaults in making payment of such Redemption Price, interest, including contingent interest and additional interest, if any, on Securities called for
redemption will cease to accrue interest on and after the Redemption Date; and 

  

	 	(10)	the CUSIP number(s) of the Securities. 

 At the
Company’s request, the Trustee shall give the notice of redemption in the Company’s name and at the Company’s expense, provided that the Company makes such request at least seven Business Days prior to the date by which such notice of
redemption must be given to Holders in accordance with this Section 3.3. 
 Section 3.4 Effect of Notice of Redemption. Once
notice of redemption is given, Securities called for redemption become due and payable on the Redemption Date and at the Redemption Price stated in the notice except for Securities which are converted in accordance with the terms of this Indenture.
Upon surrender to the Paying Agent, such Securities shall be paid at the Redemption Price stated in the notice. 
 Section 3.5 Deposit of
Redemption Price. Prior to 10:00 a.m. (New York City time), on the Redemption Date, the Company shall deposit with the Paying Agent (or if the Company or a Subsidiary or an Affiliate of either of them is the Paying Agent, shall segregate and
hold in trust) money sufficient to pay the Redemption Price of all Securities to be redeemed on that date other than Securities or portions of Securities called for redemption which on or prior thereto have been delivered by the Company to the
Trustee for cancellation or have been converted. The Paying Agent shall as promptly as practicable return to the Company any money not required for that purpose because of conversion of Securities pursuant to Article X. If such money is then held by
the Company in trust and is not required for such purpose it shall be discharged from such trust. 
 Section 3.6 Securities Redeemed in
Part. Upon surrender of a Security that is redeemed in part, the Company shall execute and the Trustee shall authenticate and deliver to the Holder a new Security in an authorized denomination equal in principal amount to the unredeemed portion
of the Security surrendered. 
 Section 3.7 Purchase of Securities by the Company at Option of the Holder. Securities shall be
purchased by the Company pursuant to Section 6 of the Securities at the option of the Holder on July 15, 2008, July 15, 2011 and July 15, 2016 (each, a “Purchase Date”), in cash, at a purchase price
equal to the principal amount of those Securities plus accrued and unpaid interest, including contingent interest and additional interest, if any, on such Purchase Date (the “Purchase Price”). Purchases of Securities
hereunder shall be made, at the option of the Holder thereof, upon: 
  

	 	(1)	delivery to the Paying Agent by the Holder of a written notice of purchase (a “Purchase Notice”) during the period beginning at any time from the

  

 18 

 opening of business on the date that is 20 Business Days prior to the relevant Purchase Date until the
close of business on the third Business Day prior to such Purchase Date stating: 
 (A) the certificate number, if any, of the Security which
the Holder will deliver to be purchased or the appropriate Depositary procedures if Certificated Securities have not been issued, 
 (B) the
portion of the principal amount of the Security which the Holder will deliver to be purchased, which portion must be in principal amounts of $1,000 or an integral multiple of $1,000, and 
 (C) that such Security shall be purchased by the Company as of the Purchase Date pursuant to the terms and conditions specified in Section 6 of the
Securities and in this Indenture; and 
  

	 	(2)	delivery of such Security to the Paying Agent at any time after delivery of the Purchase Notice (together with all necessary endorsements) at the offices of the Paying Agent, such
delivery being a condition to receipt by the Holder of the Purchase Price therefor; provided, however, that such Purchase Price shall be so paid pursuant to this Section 3.7 only if the Security so delivered to the Paying Agent shall conform in
all respects to the description thereof in the related Purchase Notice. 

 The Company shall purchase from the Holder thereof,
pursuant to this Section 3.7, a portion of a Security, if the principal amount of such portion is $1,000 or an integral multiple of $1,000. Provisions of this Indenture that apply to the purchase of all of a Security also apply to the purchase
of such portion of such Security. 
 Any purchase by the Company contemplated pursuant to the provisions of this Section 3.7 shall be
consummated by the delivery of the consideration to be received by the Holder promptly following the later of the Purchase Date and the time of delivery of the Security. 
 Notwithstanding anything herein to the contrary, any Holder delivering to the Paying Agent the Purchase Notice contemplated by this Section 3.7 shall have the right to withdraw such Purchase Notice at any time
prior to the close of business on the Purchase Date by delivery of a written notice of withdrawal to the Paying Agent in accordance with Section 3.10. 
 The Paying Agent shall promptly notify the Company of the receipt by it of any Purchase Notice or written notice of withdrawal thereof. 
 Section 3.8 Purchase of Securities at Option of the Holder upon Change of Control. (a) (1) If a Change of Control occurs (subject to certain exceptions set forth below), the Securities not previously
purchased by the Company shall be purchased by the Company, at the option of the Holder thereof, in cash, at a purchase price specified in Section 6 of the Securities (the “Change of Control Purchase Price”), as of the
date that is 30 days after the date of a 
  

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 notice of Change of Control delivered by the Company (the “Change of Control Purchase Date”),
subject to satisfaction by or on behalf of the Holder of the requirements set forth in Section 3.8(c). 
 A “Change of
Control” will be deemed to have occurred at such time after the Securities are originally issued when any of the following events shall occur: 
 (i) the acquisition by any person, including any syndicate or group deemed to be a “person” under Section 13(d) (3) of the Exchange Act of beneficial ownership, directly or indirectly through a
purchase, merger or other acquisition transaction or series of purchase, merger or other acquisition transactions, of shares of the Capital Stock of the Company entitling that person to exercise 50% or more of the total voting power of all shares of
the Capital Stock of the Company entitled to vote generally in elections of directors, other than any acquisition by the Company, any of its subsidiaries or any of its employee benefit plans (except that any of those persons shall be deemed to have
beneficial ownership of all securities it has the right to acquire, whether the right is currently exercisable or is exercisable only upon the occurrence of a subsequent condition); or 
 (ii) the first day on which a majority of the members of the board of directors of the Company are not Continuing Directors; or

 (iii) the Company consolidates or merges with or into any other person, any merger of another person into the Company, or
any conveyance, transfer, sale, lease or other disposition of all or substantially all of the Company’s properties and assets to another person, other than: (A) any transaction: (1) that does not result in any reclassification,
conversion, exchange or cancellation of outstanding shares of the Company’s Capital Stock; and (2) pursuant to which holders of the Company’s Capital Stock immediately prior to the transaction have the entitlement to exercise,
directly or indirectly 50% or more of the total voting power of all shares of Capital Stock entitled to vote generally in elections of directors of the continuing or surviving Person immediately after giving effect to such issuance; and (B) any
merger, share exchange, transfer of assets or similar transaction solely for the purpose of changing the Company’s jurisdiction of incorporation and resulting in a reclassification, conversion or exchange of outstanding shares of Common Stock,
if at all, solely into shares of common stock, ordinary shares or American Depositary Shares of the surviving Person or a direct or indirect parent of the surviving corporation. 
 A “Continuing Director” shall mean: 
 (x) An individual who was a member of the Board of Directors of the Company first elected by the stockholders or by the Board of Directors prior to the date hereof or prior to the time that any person becomes after
the date hereof the holder of record of in excess of 20% of the Capital Stock of the Company entitled to vote in the election of directors; or 
 (y) An individual designated (before such individual’s initial election as a director) as a Continuing Director by a majority of the then Continuing Directors. 
  

 20 

 (2) Notwithstanding the provisions of Section 3.8(a)(1), the Company shall not be required to purchase the
Securities of the Holders upon a Change of Control pursuant to this Section 3.8 if: 
  

	 	(i)	the Sale Price per share of Common Stock for any five Trading Days within (1) the period of 10 consecutive Trading Days ending immediately after the later of the Change of
Control or the public announcement of the Change of Control, in the case of a Change of Control under clause (i) or (ii) above, or (2) the period of 10 consecutive Trading Days ending immediately before the Change of Control, in the
case of a Change of Control under clause (iii) above, equals or exceeds 110% of the Conversion Price of the Securities in effect on each of those five Trading Days; or 

  

	 	(ii)	100% of the consideration in the transaction or transactions (other than cash payments for fractional shares and cash payments made in respect of dissenters’ appraisal rights)
constituting a Change of Control consists of shares of common stock, ordinary shares or American Depositary Shares traded or to be traded immediately following a Change of Control on a national securities exchange or the Nasdaq National Market, and,
as a result of the transaction or transactions, the Securities become convertible (subject to the provisions in Article X) into that common stock, ordinary shares or American Depositary Shares (and any rights attached thereto).

 For the purposes of this Section 3.8, (x) whether a person is a “beneficial owner” shall be determined in
accordance with Rule 13d-3 under the Exchange Act and (y) the term “person” includes any syndicate or group that would be deemed to be a “person” under Section 13(d)(3) of the Exchange Act. 
 (b) No later than 30 days after the occurrence of a Change of Control, the Company shall mail a written notice of the Change of Control by first-class
mail to the Trustee and to each Holder (and to beneficial owners as required by applicable law). The notice shall include a form of Change of Control Purchase Notice to be completed by the Holder and shall state: 
  

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

  

	 	(2)	the date by which the Change of Control Purchase Notice pursuant to this Section 3.8 must be delivered to the Paying Agent in order for a Holder to exercise the repurchase
rights; 

  

	 	(3)	the Change of Control Purchase Date; 

  

	 	(4)	the Change of Control Purchase Price; 

  

	 	(5)	the name and address of the Paying Agent and the Conversion Agent; 

  

 21 

	 	(6)	the Conversion Rate and any adjustments thereto; 

  

	 	(7)	that the Securities as to which a Change of Control Purchase Notice has been given may be converted if they are otherwise convertible pursuant to Article X hereof only if the Change
of Control Purchase Notice has been withdrawn in accordance with the terms of this Indenture; 

  

	 	(8)	that the Securities must be surrendered to the Paying Agent to collect payment; 

  

	 	(9)	that the Change of Control Purchase Price for any Security as to which a Change of Control Purchase Notice has been duly given and not withdrawn will be paid promptly following the
later of the Change of Control Purchase Date and the time of surrender of such Security as described in (8); 

  

	 	(10)	briefly, the procedures the Holder must follow to exercise rights under this Section 3.8; 

  

	 	(11)	briefly, the conversion rights, if any, of the Securities; 

  

	 	(12)	the procedures for withdrawing a Change of Control Purchase Notice; 

  

	 	(13)	that, unless the Company defaults in making payment of such Change of Control Purchase Price, interest, if any, on Securities surrendered for purchase by the Company will cease to
accrue on and after the Change of Control Purchase Date; and 

  

	 	(14)	the CUSIP number(s) of the Securities. 

 (c) A Holder may
exercise its rights specified in Section 3.8(a) upon delivery of a written notice of purchase (a “Change of Control Purchase Notice”) to the Paying Agent at any time on or prior to the close of business on the Business
Day immediately preceding the Change of Control Purchase Date that shall state: 
  

	 	(1)	the certificate number, if any, of the Security which the Holder will deliver to be purchased or the appropriate Depositary procedures if Certificated Securities have not been
issued; 

  

	 	(2)	the portion of the principal amount of the Security which the Holder will deliver to be purchased, which portion must be $1,000 or an integral multiple of $1,000; and

  

	 	(3)	that such Security shall be purchased pursuant to the terms and conditions specified in Section 6 of the Securities and in this Indenture. 

 The delivery of such Security to the Paying Agent with the Change of Control Purchase Notice (together with all necessary endorsements) at the offices of
the Paying Agent shall be a condition to the receipt by the Holder of the Change of Control Purchase Price 
  

 22 

 therefor; provided, however, that such Change of Control Purchase Price shall be so paid pursuant to this
Section 3.8 and Section 3.9 only if the Security so delivered to the Paying Agent shall conform in all respects to the description thereof set forth in the related Change of Control Purchase Notice. 
 The Company shall purchase from the Holder thereof, pursuant to this Section 3.8 and Section 3.9, a portion of a Security if the principal
amount of such portion is $1,000 or an integral multiple of $1,000. Provisions of this Indenture that apply to the purchase of all of a Security also apply to the purchase of such portion of such Security. 
 Any purchase by the Company contemplated pursuant to the provisions of this Section 3.8 and Section 3.9 shall be consummated by the delivery of
the consideration to be received by the Holder promptly following the later of the Change of Control Purchase Date and the time of delivery of the Security. 
 Notwithstanding anything herein to the contrary, any Holder delivering to the Paying Agent the Change of Control Purchase Notice contemplated by this Section 3.8(c) shall have the right to withdraw such Change of
Control Purchase Notice at any time prior to the close of business on the last Business Day immediately preceding the Change of Control Purchase Date by delivery of a written notice of withdrawal to the Paying Agent in accordance with
Section 3.10. 
 The Paying Agent shall promptly notify the Company of the receipt by it of any Change of Control Purchase Notice or
written withdrawal thereof. 
 Section 3.9 Company Notice. In connection with any purchase of Securities pursuant to Section 6 of
the Securities, the Company shall give notice to Holders setting forth information specified in this Section 3.9 (the “Company Notice”). The Company Notice shall be sent to Holders (and to beneficial owners as required
by applicable law) not less than 20 Business Days prior to such Purchase Date or Change of Control Purchase Date, as the case may be (the “Company Notice Date”). 
 Each Company Notice shall include a form of Purchase Notice or Change of Control Purchase Notice, as the case may be, to be completed by a Holder and
shall state: 
 (i) the Purchase Price or Change of Control Purchase Price, as the case may be, and the Conversion Rate;

 (ii) the name and address of the Paying Agent and the Conversion Agent; 
 (iii) that Securities as to which a Purchase Notice or Change of Control Purchase Notice, as the case may be, has been given may be
converted if they are otherwise convertible only in accordance with Article X hereof and Section 8 of the Securities if the applicable Purchase Notice or Change of Control Purchase Notice, as the case may be, has been withdrawn in accordance
with the terms of this Indenture; 
  

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 (iv) that Securities must be surrendered to the Paying Agent to collect payment;

 (v) that the Purchase Price or Change of Control Purchase Price, as the case may be, for any security as to which a
Purchase Notice or Change of Control Purchase Notice, as the case may be, has been given and not withdrawn will be paid promptly following the later of the Purchase Date or Change of Control Purchase Date, as the case may be, and the time of
surrender of such Security as described in (iv); 
 (vi) the procedures the Holder must follow to exercise its put rights
under Section 3.7 or 3.8, as the case may be, and a brief description of those rights; 
 (vii) briefly, the conversion
rights of the Securities; 
 (viii) the procedures for withdrawing a Purchase Notice or Change of Control Purchase Notice, as
the case may be; 
 (ix) that, unless the Company defaults in making payment on Securities for which a Purchase Notice or
Change of Control Purchase Notice, as the case may be, has been submitted, interest, if any, on such Securities will cease to accrue on the Purchase Date or Change of Control Purchase Date, as the case may be; and 
 (x) the CUSIP number of the Securities. 
 At the Company’s request, the Trustee shall give such Company Notice in the Company’s name and at the Company’s expense; provided, however, that, in all cases, the text of such Company Notice shall be
prepared by the Company. 
 Section 3.10 Effect of Purchase Notice or Change of Control Purchase Notice. Upon receipt by the Paying
Agent of the Purchase Notice or Change of Control Purchase Notice specified in Section 3.7(a) or Section 3.8(c), as applicable, the Holder of the Security in respect of which such Purchase Notice or Change of Control Purchase Notice, as
the case may be, was given shall (unless such Purchase Notice or Change of Control Purchase Notice, as the case may be, is withdrawn as specified in the following two paragraphs) thereafter be entitled to receive solely the Purchase Price or Change
of Control Purchase Price, as the case may be, with respect to such Security. Such Purchase Price or Change of Control Purchase Price shall be paid to such Holder, subject to receipts of funds by the Paying Agent, promptly following the later of
(x) the Purchase Date or the Change of Control Purchase Date, as the case may be, with respect to such Security (provided the conditions in Section 3.7(a) or Section 3.8(c), as applicable, have been satisfied) and (y) the time of
delivery of such Security to the Paying Agent by the Holder thereof in the manner required by Section 3.7(a) or Section 3.8(c), as applicable. Securities in respect of which a Purchase Notice or Change of Control Purchase Notice has been
given by the Holder thereof may not be converted pursuant to Article X hereof on or after the date of the delivery of such Purchase Notice or Change of Control Purchase Notice unless such Purchase Notice or Change of Control Purchase Notice has
first been validly withdrawn as specified in the following two paragraphs. 
  

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 A Purchase Notice or Change of Control Purchase Notice may be withdrawn by means of a written notice of
withdrawal delivered to the office of the Paying Agent in accordance with the Purchase Notice or Change of Control Purchase Notice, as the case may be, at any time prior to the close of business on the Purchase Date or the close of business on the
Business Day immediately preceding the Change of Control Purchase Date, as the case may be, specifying: 
  

	 	(1)	the certificate number, if any, of the Security in respect of which such notice of withdrawal is being submitted or the appropriate Depositary procedures if Certificated Securities
have not been issued, 

  

	 	(2)	the principal amount of the Security with respect to which such notice of withdrawal is being submitted, and 

  

	 	(3)	the principal amount, if any, of such Security which remains subject to the original Purchase Notice or Change of Control Purchase Notice, as the case may be, and which has been or
will be delivered for purchase by the Company. 

 There shall be no purchase of any Securities pursuant to Section 3.7 or
3.8 if there has occurred (prior to, on or after, as the case may be, the giving, by the Holders of such Securities, of the required Purchase Notice or Change of Control Purchase Notice, as the case may be) and is continuing an Event of Default
(other than a default in the payment of the Purchase Price or Change of Control Purchase Price, as the case may be, with respect to such Securities). The Paying Agent will promptly return to the respective Holders thereof any Securities
(x) with respect to which a Purchase Notice or Change of Control Purchase Notice, as the case may be, has been withdrawn in compliance with this Indenture, or (y) held by it during the continuance of an Event of Default (other than a
default in the payment of the Purchase Price or Change of Control Purchase Price, as the case may be, with respect to such Securities) in which case, upon such return, the Purchase Notice or Change of Control Purchase Notice with respect thereto
shall be deemed to have been withdrawn. 
 Section 3.11 Deposit of Purchase Price or Change of Control Purchase Price. Prior to 10:00
a.m. (local time in The City of New York) on the Business Day following the Purchase Date or the Change of Control Purchase Date, as the case may be, the Company shall deposit with the Trustee or with the Paying Agent (or, if the Company or a
Subsidiary or an Affiliate of either of them is acting as the Paying Agent, shall segregate and hold in trust as provided in Section 2.4) an amount of cash (in immediately available funds if deposited on such Business Day) sufficient to pay the
aggregate Purchase Price or Change of Control Purchase Price, as the case may be, of all the Securities or portions thereof which are to be purchased as of the Purchase Date or Change of Control Purchase Date, as the case may be. 
 Section 3.12 Securities Purchased in Part. Any Certificated Security which is to be purchased only in part shall be surrendered at the office of
the Paying Agent (with, if the Company or the Trustee so requires, due endorsement by, or a written instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the Holder thereof or such Holder’s attorney duly
authorized in writing) and the Company shall execute and the Trustee 
  

 25 

 shall authenticate and deliver to the Holder of such Security, without service charge, a new Security or Securities, of
any authorized denomination as requested by such Holder in aggregate principal amount equal to, and in exchange for, the portion of the principal amount of the Security so surrendered which is not purchased. 
 Section 3.13 Covenant to Comply With Securities Laws Upon Purchase of Securities. When complying with the provisions of Section 3.7 or 3.8
hereof (provided that such offer or purchase constitutes an “issuer tender offer” for purposes of Rule 13e-4 (which term, as used herein, includes any successor provision thereto) under the Exchange Act at the time of such offer or
purchase), and subject to any exemptions available under applicable law, the Company shall (i) comply with Rule 13e-4 and Rule 14e-1 (or any successor provision) under the Exchange Act, (ii) file the related Schedule TO (or any successor
schedule, form or report) under the Exchange Act, and (iii) otherwise comply with all Federal and state securities laws so as to permit the rights and obligations under Sections 3.7 and 3.8 to be exercised in the time and in the manner
specified in Sections 3.7 and 3.8; provided, however, that any period during which a Holder may exercise its rights under Sections 3.7 and 3.8 shall be extended as necessary in order to comply with Rule 13e-4 and Rule 14e-1 (or any
successor provision) under the Exchange Act. 
 Section 3.14 Repayment to the Company. The Trustee and the Paying Agent shall return
to the Company any cash that remains unclaimed as provided in Section 12 of the Securities, together with interest, if any, thereon (subject to the provisions of Section 7.1(f)), held by them for the payment of the Purchase Price or Change
of Control Purchase Price, as the case may be; provided, however, that to the extent that the aggregate amount of cash deposited by the Company pursuant to Section 3.11 exceeds the aggregate Purchase Price or Change of Control Purchase Price,
as the case may be, of the Securities or portions thereof which the Company is obligated to purchase as of the Purchase Date or Change of Control Purchase Date, as the case may be, then, unless otherwise agreed in writing with the Company, promptly
after the Business Day following the Purchase Date or Change of Control Purchase Date, as the case may be, the Trustee shall return any such excess to the Company together with interest, if any, thereon (subject to the provisions of
Section 7.1(f)). 
 ARTICLE IV 
 COVENANTS 
 Section 4.1 Payment of Securities. The Company shall promptly make all payments in respect of the
Securities on the dates and in the manner provided in the Securities or pursuant to this Indenture. Any amounts of cash or shares of Common Stock to be given to the Trustee or Paying Agent, shall be deposited with the Trustee or Paying Agent by
10:00 a.m., New York City time, by the Company. Principal amount plus accrued interest, if any, including contingent interest and additional interest, if any, Redemption Price, Purchase Price, Change of Control Purchase Price and cash interest, if
any, shall be considered paid on the applicable date due if on such date (or, in the case of a Purchase Price or Change of Control Purchase Price, on the Business Day following the applicable Purchase Date or Change of Control Purchase Date, as the
case may be) the Trustee or the Paying Agent holds, in accordance with this Indenture, cash or securities, if permitted hereunder, sufficient to pay all such amounts then due. 
  

 26 

 Section 4.2 SEC and Other Reports. The Company shall file with the Trustee, within 15 days after
it files such annual and quarterly reports, information, documents and other reports with the SEC, copies of its annual report and of the information, documents and other reports (or copies of such portions of any of the foregoing as the SEC may by
rules and regulations prescribe) which the Company is required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act. In the event the Company is at any time no longer subject to the reporting requirements of Section 13
or 15(d) of the Exchange Act, it shall continue to provide the Trustee with reports containing substantially the same information as would have been required to be filed with the SEC had the Company continued to have been subject to such reporting
requirements. In such event, such reports shall be provided at the times the Company would have been required to provide reports had it continued to have been subject to such reporting requirements. The Company also shall comply with the other
provisions of TIA Section 314(a). Delivery of such reports, information and documents to the Trustee is for informational purposes only and the Trustee’s receipt of such shall not constitute constructive notice of any information contained
therein or determinable from information contained therein, including the Company’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to rely conclusively on Officers’ Certificates). 
 Section 4.3 Compliance Certificate. The Company shall deliver to the Trustee within 120 days after the end of each fiscal year of the Company
(beginning with the fiscal year ending on December 31, 2006) an Officers’ Certificate, stating whether or not to the knowledge of the signers thereof, the Company is in default in the performance and observance of any of the terms,
provisions and conditions of this Indenture (without regard to any period of grace or requirement of notice provided hereunder) and if the Company shall be in default, specifying all such defaults and the nature and status thereof of which they may
have knowledge. 
 Section 4.4 Further Instruments and Acts. Upon request of the Trustee, the Company will execute and deliver such
further instruments and do such further acts as may be reasonably necessary or proper to carry out more effectively the purposes of this Indenture. 
 Section 4.5 Maintenance of Office or Agency. The Company will maintain in the Borough of Manhattan, The City of New York, an office or agency of the Trustee, Registrar, Paying Agent and Conversion Agent (which may be an office of the
Trustee or an affiliate of the Trustee, Registrar, Paying Agent or Conversion Agent) where Securities may be presented or surrendered for payment, where Securities may be surrendered for registration of transfer, exchange, purchase, redemption or
conversion and where notices and demands to or upon the Company in respect of the Securities and this Indenture may be served. The office of The Bank of New York, 101 Barclay Street, Floor 7E, New York, New York 10286 (Attention: Evangeline
Gonzalez), shall initially be such office or agency for all of the aforesaid purposes. The Company shall give prompt written notice to the Trustee of the location, and of any change in the location, of any such office or agency (other than a change
in the location of the office of the Trustee). If at any time the Company shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders, notices and demands
may be made or served at the address of the Trustee set forth in Section 11.2. 
  

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 The Company may also from time to time designate one or more other offices or agencies where the
Securities may be presented or surrendered for any or all such purposes and may from time to time rescind such designations; provided, however, that no such designation or rescission shall in any manner relieve the Company of its obligation to
maintain an office or agency in the Borough of Manhattan, The City of New York, for such purposes. 
 Section 4.6 Delivery of Certain
Information. At any time when the Company is not subject to Section 13 or 15(d) of the Exchange Act, upon the request of a Holder or any beneficial owner of Securities or holder or beneficial owner of shares of Common Stock issued upon
conversion thereof, or in accordance with Section 3.8(c), the Company will promptly furnish or cause to be furnished Rule 144A Information (as defined below) to such Holder or any beneficial owner of Securities or holder or beneficial owner of
shares of Common Stock, or to a prospective purchaser of any such security designated by any such holder, as the case may be, to the extent required to permit compliance by such Holder or holder with Rule 144A under the Securities Act of 1933, as
amended (the “Securities Act”) in connection with the resale of any such security. “Rule 144A Information” shall be such information as is specified pursuant to Rule 144A(d)(4) under the Securities
Act. Whether a person is a beneficial owner shall be determined by the Company to the Company’s reasonable satisfaction. 
 Section 4.7
Tax Treatment of Securities. The Company agrees, and by acceptance of a beneficial ownership interest in the Securities, each beneficial holder of Securities will be deemed to have agreed, for U.S. federal income tax purposes, to treat the
Securities as indebtedness that is subject to Section 1.1275-4 of the U.S. Treasury Regulations. A Holder may obtain the comparable yield and projected payment schedule by telephoning The PMI Group, Inc. Investor Relations Department at
925-658-7878 or submitting a written request for it to the Company at the following address: The PMI Group, Inc., 3003 Oak Road, Walnut Creek, California 94597, Attention: Investor Relations Department. 
 ARTICLE V 
 SUCCESSOR CORPORATION

 Section 5.1 When Company May Merge or Transfer Assets. The Company shall not consolidate with or merge with or into any other
person or convey, transfer, sell, lease or otherwise dispose of all or substantially all of its properties and assets to any person, unless: 
 (a) either (1) the Company shall be the continuing corporation or (2) the Person (if other than the Company) formed by such consolidation or into which the Company is merged or the Person which acquires by conveyance, transfer or
lease all or substantially all of the properties and assets of the Company substantially as an entirety (i) shall be organized and validly existing under the laws of (A) the United States or any State thereof or the District of Columbia or
(B) Bermuda or the Cayman Islands and (ii) shall expressly assume, by an indenture supplemental hereto, executed and delivered to the Trustee, in form reasonably satisfactory to the Trustee, all of the obligations of the Company under the
Securities and this Indenture; 
  

 28 

 (b) immediately after giving effect to such transaction, no Event of Default, and no event that, after
notice or lapse of time or both, would become an Event of Default, shall have occurred and be continuing; and 
 (c) the Company shall have
delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that such (A) consolidation, merger, conveyance, transfer or lease and, if a supplemental indenture is required in connection with such transaction,
such supplemental indenture, comply with this Article V and that all conditions precedent herein provided for relating to such transaction have been satisfied and (B) in the case of a merger or consolidation in which the Company is not the
continuing corporation and in which the successor to the Company is an entity organized under the laws of Bermuda or the Cayman Islands, that such merger will not result in any material adverse tax consequences to any Holders of the Securities.

 For purposes of the foregoing, the transfer (by lease, assignment, sale or otherwise) of the properties and assets of one or more
Subsidiaries (other than to the Company or another Subsidiary), which, if such assets were owned by the Company, would constitute all or substantially all of the properties and assets of the Company, shall be deemed to be the transfer of all or
substantially all of the properties and assets of the Company. 
 The successor Person formed by such consolidation or into which the Company
is merged or the successor Person to which such conveyance, transfer or lease is made shall succeed to, and be substituted for, and may exercise every right and power of, the Company under this Indenture with the same effect as if such successor had
been named as the Company herein; and thereafter, except in the case of a lease and obligations the Company may have under a supplemental indenture, the Company shall be discharged from all obligations and covenants under this Indenture and the
Securities. Subject to Section 9.6, the Company, the Trustee and the successor Person shall enter into a supplemental indenture to evidence the succession and substitution of such successor Person and such discharge and release of the Company.

 ARTICLE VI 
 DEFAULTS
AND REMEDIES 
 Section 6.1 Events of Default. So long as any Securities are outstanding, each of the following shall be an
“Event of Default”: 
 (1) the Company fails to convert any portion of the principal amount of any Security following
the exercise by the Holder of the right to convert such Security into cash and, if applicable, Common Stock, pursuant to and in accordance with Article X hereof; 
 (2) the Company defaults in its obligation to repurchase any Security, or any portion thereof, upon the exercise by the Holder of such Holder’s right to require the Company to purchase such Securities pursuant to
and in accordance with Section 3.7 and 3.8 hereof; 
  

 29 

 (3) the Company defaults in its obligation to redeem any Security, or any portion thereof, called for
redemption by the Company pursuant to and in accordance with Section 3.1 hereof; 
 (4) the Company defaults in the payment of the
principal amount on any Security when the same becomes due and payable at its Stated Maturity; 
 (5) the Company defaults in the payment of
any accrued and unpaid interest, including contingent interest or additional interest, if any, in each case when due and payable, and continuance of such default for a period of 30 days; 
 (6) the Company fails to comply with any of its agreements or covenants in the Securities or this Indenture (other than those referred to in clause
(1) through (5) above) and such failure continues for 60 days after receipt by the Company of a Notice of Default; 
 (7) a failure
to pay when due at maturity or a default that results in the acceleration of maturity of any indebtedness for borrowed money of the Company or any Designated Subsidiary in an aggregate amount of $25.0 million or more, unless the acceleration is
rescinded, stayed or annulled within 30 days after written notice of default is given to the Company by the Trustee or Holders of not less than 25% in aggregate principal amount of the Securities then outstanding; 
 (8) the entry by a court having jurisdiction in the premises of (i) a decree or order for relief in respect of the Company or any of its
Subsidiaries that is a Designated Subsidiary or any group of two or more Subsidiaries that, taken as a whole, would constitute a Designated Subsidiary, in an involuntary case or proceeding under any applicable bankruptcy, insolvency, reorganization
or other similar law or (ii) a decree or order adjudging the Company or any of its Subsidiaries that is a Designated Subsidiary or any group of two or more Subsidiaries that, taken as a whole, would constitute a Designated Subsidiary, a
bankrupt or insolvent, or approving as properly filed a petition seeking reorganization, arrangement, adjustment or composition of or in respect of the Company or any of its Subsidiaries that is a Designated Subsidiary or any group of two or more
Subsidiaries that, taken as a whole, would constitute a Designated Subsidiary, under any applicable law, or appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official of the Company or of any substantial
part of its property, or ordering the winding up or liquidation of its affairs, and the continuance of any such decree or order for relief or any such other decree or order unstayed and in effect for a period of 60 consecutive days; or 

(9) the commencement by the Company or any of its Subsidiaries that is a Designated Subsidiary or any group of two or more Subsidiaries that, taken as
a whole, would constitute a Designated Subsidiary, of a voluntary case or proceeding under any applicable bankruptcy, insolvency, reorganization or other similar law or of any other case or proceeding to be adjudicated a bankrupt or insolvent, or
the consent by the Company or any of its Subsidiaries that is a Designated Subsidiary or any group of two or more Subsidiaries that, taken as a whole, would constitute a Designated Subsidiary, to the entry of a decree or order for relief in respect
of the Company or any of its Subsidiaries that is a Designated Subsidiary or any group of two or more Subsidiaries that, taken as a whole, would constitute a Designated Subsidiary, in an involuntary case or proceeding under any applicable
bankruptcy, insolvency, reorganization or other similar law or to the commencement of any bankruptcy or insolvency case or proceeding 
  

 30 

 against the Company, or the filing by the Company or any of its Subsidiaries that is a Designated Subsidiary or any group
of two or more Subsidiaries that, taken as a whole, would constitute a Designated Subsidiary, of a petition or answer or consent seeking reorganization or relief under any applicable law, or the consent by the Company to the filing of such petition
or to the appointment of or the taking possession by a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official of the Company or of any substantial part of its property, or the making by the Company or any of its
Subsidiaries that is a Designated Subsidiary or any group of two or more Subsidiaries that, taken as a whole, would constitute a Designated Subsidiary, of an assignment for the benefit of creditors, or the admission by the Company or any of its
Subsidiaries that is a Designated Subsidiary or any group of two or more Subsidiaries that, taken as a whole, would constitute a Designated Subsidiary, in writing of its inability to pay its debts generally as they become due, or the taking of
corporate action by the Company or any of its Subsidiaries that is a Designated Subsidiary or any group of two or more Subsidiaries that, taken as a whole, would constitute a Designated Subsidiary, expressly in furtherance of any such action.

 A Default under clause (6) above is not an Event of Default until the Trustee notifies the Company, or the Holders of at least 25% in
aggregate principal amount of the Securities at the time outstanding notify the Company and the Trustee, of the Default and the Company does not cure such Default (and such Default is not waived) within the time specified in clause (6) above
after actual receipt of such notice. Any such notice must specify the Default, demand that it be remedied and state that such notice is a “Notice of Default”. 
 “Designated Subsidiary” shall mean each of PMI, PMI Australia Holdings, PMI Australia and any other existing or future, direct or
indirect, Subsidiary of the Company whose assets constitute 25% or more of the total assets of the Company on a consolidated basis (“Total Assets”); provided that neither SPS Holding Corp. nor any of its Subsidiaries
(nor any successor by merger or similar transaction to any of the foregoing) shall in any circumstance be deemed a Designated Subsidiary or considered together with any other Subsidiary or Subsidiaries of the Company to determine whether such group
of Subsidiaries, taken as a whole, would constitute a Designated Subsidiary; and provided further that in the case of any Subsidiary that is not accounted for as a consolidated entity in the Company’s consolidated financial statements in
accordance with generally accepted accounting principles in the United States, only the Company’s proportionate share of the assets of such Subsidiary based on the Company’s direct or indirect ownership of equity interests in such
Subsidiary shall be counted for purposes of determining (i) whether such Subsidiary’s assets constitute 25% or more of Total Assets or (ii) whether such Subsidiary, considered together with any other Subsidiary or Subsidiaries, taken as a
whole, would constitute a Designated Subsidiary. 
 The Trustee shall, within 90 days of the occurrence of a Default, give to the Holders of
the Securities notice of all uncured Defaults known to it and written notice of any event which with the giving of notice or the lapse of time, or both, would become an Event of Default, its status and what action the Company is taking or proposes
to take with respect thereto; provided, however, the Trustee shall be protected in withholding such notice if it, in good faith, determines that the withholding of such notice is in the best interest of such Holders, except in the case of a
Default in the payment of the principal of or interest on any of the Securities when due or in the payment of any redemption or purchase obligation of the Company. 
 Section 6.2 Acceleration. If an Event of Default (other than an Event of Default specified in Section 6.1(8) or (9)) occurs and is continuing, the Trustee by notice to the 
  

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 Company, or the Holders of at least 25% in aggregate principal amount of the Securities at the time outstanding by notice
to the Company and the Trustee, may declare the principal amount plus accrued and unpaid interest, including contingent interest and additional interest, if any, on all the Securities to be immediately due and payable. Upon such a declaration, such
accelerated amount shall be due and payable immediately. If an Event of Default specified in Section 6.1(8) or (9) occurs and is continuing, the principal amount plus accrued and unpaid interest, including contingent interest and
additional interest, if any, on all the Securities shall become and be immediately due and payable without any declaration or other act on the part of the Trustee or any Securityholders. The Holders of a majority in aggregate principal amount of the
Securities at the time outstanding, by notice to the Trustee (and without notice to any other Securityholder) may rescind an acceleration and its consequences if the rescission would not conflict with any judgment or decree and if all existing
Events of Default have been cured or waived except nonpayment of the principal amount plus accrued and unpaid interest, including contingent interest and additional interest, if any, that have become due solely as a result of acceleration and if all
amounts due to the Trustee under Section 7.7 have been paid. No such rescission shall affect any subsequent Default or impair any right consequent thereto. 
 Section 6.3 Other Remedies. If an Event of Default occurs and is continuing, the Trustee may pursue any available remedy to collect the payment of the principal amount plus accrued and unpaid interest,
including contingent interest and additional interest, if any, on the Securities or to enforce the performance of any provision of the Securities or this Indenture. 
 The Trustee may maintain a proceeding even if the Trustee does not possess any of the Securities or does not produce any of the Securities in the proceeding. A delay or omission by the Trustee or any Securityholder in
exercising any right or remedy accruing upon an Event of Default shall not impair the right or remedy or constitute a waiver of, or acquiescence in, the Event of Default. No remedy is exclusive of any other remedy. All available remedies are
cumulative. 
 Section 6.4 Waiver of Past Defaults. The Holders of a majority in aggregate principal amount of the Securities at the
time outstanding, by notice to the Trustee (and without notice to any other Securityholder), may waive an existing Default and its consequences except (1) an Event of Default described in Section 6.1(1) or (2), (2) a Default in
respect of a provision that under Section 9.2 cannot be amended without the consent of each Securityholder affected or (3) a Default which constitutes a failure to convert any Security in accordance with the terms of Article X. When a
Default is waived, it is deemed cured, but no such waiver shall extend to any subsequent or other Default or impair any consequent right. This Section 6.4 shall be in lieu of Section 316(a)1(B) of the TIA and such Section 316(a)1(B)
is hereby expressly excluded from this Indenture, as permitted by the TIA. 
 Section 6.5 Control by Majority. The Holders of a
majority in aggregate principal amount of the Securities at the time outstanding may direct the time, method and place of conducting any proceeding for any remedy available to the Trustee or of exercising any trust or power conferred on the Trustee.
However, the Trustee may refuse to follow any direction that conflicts with law or this Indenture or that the Trustee determines in good faith is unduly prejudicial to the rights of other Securityholders or would involve the Trustee in personal
liability unless the Trustee is offered indemnity satisfactory to it. This Section 6.5 shall be in lieu of Section 316(a)1(A) of the TIA and such Section 316(a)1(A) is hereby expressly excluded from this Indenture, as permitted by the
TIA. 
  

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 Section 6.6 Limitation on Suits. A Securityholder may not pursue any remedy with respect to this
Indenture or the Securities unless: 
 (1) the Holder gives to the Trustee written notice stating that an Event of Default is continuing;

 (2) the Holders of at least 25% in aggregate principal amount of the Securities at the time outstanding make a written request to the
Trustee to pursue the remedy; 
 (3) such Holder or Holders offer to the Trustee security or indemnity satisfactory to the Trustee against
any loss, liability or expense; 
 (4) the Trustee does not comply with the request within 60 days after receipt of such notice, request and
offer of security or indemnity; and 
 (5) the Holders of a majority in aggregate principal amount of the Securities at the time outstanding
do not give the Trustee a direction inconsistent with the request during such 60-day period. 
 A Securityholder may not use this Indenture
to prejudice the rights of any other Securityholder or to obtain a preference or priority over any other Securityholder. 
 Section 6.7
Rights of Holders to Receive Payment. Notwithstanding any other provision of this Indenture, the right of any Holder to receive payment of the principal amount, Redemption Price, Purchase Price, Change of Control Purchase Price or interest,
including contingent interest and additional interest, if any, in respect of the Securities held by such Holder, on or after the respective due dates expressed in the Securities or any Redemption Date, and to convert the Securities in accordance
with Article X, or to bring suit for the enforcement of any such payment on or after such respective dates or the right to convert, shall not be impaired or affected adversely without the consent of such Holder. 
 Section 6.8 Collection Suit by Trustee. If an Event of Default described in Section 6.1(2), (3) or (4) occurs and is continuing,
the Trustee may recover judgment in its own name and as trustee of an express trust against the Company for the whole amount owing with respect to the Securities and the amounts provided for in Section 7.7. 
 Section 6.9 Trustee May File Proofs of Claim. In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization,
arrangement, adjustment, composition or other judicial proceeding relative to the Company or any other obligor upon the Securities or the property of the Company or of such other obligor or their creditors, the Trustee (irrespective of whether the
principal amount, Redemption Price, Purchase Price, Change of Control Purchase Price or interest, including contingent interest and additional interest, if any, in respect of the Securities shall then be due and payable as therein expressed or by
declaration or otherwise and irrespective of whether the Trustee shall have made any demand on the Company for the payment of any such amount) shall be entitled and empowered, by intervention in such proceeding or otherwise, 
  

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 (a) to file and prove a claim for the whole amount of the principal amount, Redemption Price, Purchase
Price, Change of Control Purchase Price, or interest, including contingent interest and additional interest, if any, and to file such other papers or documents as may be necessary or advisable in order to have the claims of the Trustee (including
any claim for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel or any other amounts due the Trustee under Section 7.7) and of the Holders allowed in such judicial proceeding, and

 (b) to collect and receive any moneys or other property payable or deliverable on any such claims and to distribute the same; and any
custodian, receiver, assignee, trustee, liquidator, sequestrator or similar official in any such judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee and, in the event that the Trustee shall consent to the
making of such payments directly to the Holders, to pay the Trustee any amount due it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under
Section 7.7. 
 Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on
behalf of any Holder any plan of reorganization, arrangement, adjustment or composition affecting the Securities or the rights of any Holder thereof, or to authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding.

 Section 6.10 Priorities. If the Trustee collects any money pursuant to this Article VI, it shall pay out the money in the following
order: 
 FIRST: to the Trustee for amounts due under Section 7.7; 
 SECOND: to Securityholders for amounts due and unpaid on the Securities for the principal amount, Redemption Price, Purchase Price, Change of Control
Purchase Price or interest, including contingent interest and additional interest, if any, as the case may be, ratably, without preference or priority of any kind, according to such amounts due and payable on the Securities; and 
 THIRD: the balance, if any, to the Company. 
 The Trustee may fix a record date and payment date for any payment to Securityholders pursuant to this Section 6.10. At least 15 days before such record date, the Trustee shall mail to each Securityholder and the Company a notice that
states the record date, the payment date and the amount to be paid. 
 Section 6.11 Undertaking for Costs. In any suit for the
enforcement of any right or remedy under this Indenture or in any suit against the Trustee for any action taken or omitted by it as Trustee, a court in its discretion may require the filing by any party litigant (other than the Trustee) in the suit
of an undertaking to pay the costs of the suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’ fees and expenses, against any party litigant in the suit, having due regard to the merits and good
faith of the claims 
  

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 or defenses made by the party litigant. This Section 6.11 does not apply to a suit by the Trustee, a suit by a
Holder pursuant to Section 6.7 or a suit by Holders of more than 10% in aggregate principal amount of the Securities at the time outstanding. This Section 6.11 shall be in lieu of Section 315(e) of the TIA and such Section 315(e)
is hereby expressly excluded from this Indenture, as permitted by the TIA. 
 Section 6.12 Waiver of Stay, Extension or Usury Laws.
The Company covenants (to the extent that it may lawfully do so) that it will not at any time insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay or extension law or any usury or other law wherever
enacted, now or at any time hereafter in force, which would prohibit or forgive the Company from paying all or any portion of the principal amount, Redemption Price, Purchase Price or Change of Control Purchase Price in respect of Securities, or any
interest, including contingent interest and additional interest, if any, on such amounts, as contemplated herein, or which may affect the covenants or the performance of this Indenture; and the Company (to the extent that it may lawfully do so)
hereby expressly waives all benefit or advantage of any such law, and covenants that it will not hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer and permit the execution of every such power as though
no such law had been enacted. 
 ARTICLE VII 
 TRUSTEE 
 Section 7.1 Duties of Trustee. (a) If an Event of Default has occurred and is
continuing, the Trustee shall exercise the rights and powers vested in it by this Indenture and use the same degree of care and skill in its exercise as a prudent person would exercise or use under the circumstances in the conduct of such
person’s own affairs. 
  

	 	(b)	Except during the continuance of an Event of Default: 

  

	 	(1)	the Trustee need perform only those duties that are specifically set forth in this Indenture and no others; and 

  

	 	(2)	in the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture, but in the case of any such certificates or opinions which by any provision hereof are specifically required to be furnished to the Trustee, the
Trustee shall examine the certificates and opinions to determine whether or not they conform to the requirements of this Indenture, but need not confirm or investigate the accuracy of mathematical calculations or other facts stated therein. This
Section 7.1(b) shall be in lieu of Section 315(a) of the TIA and such Section 315(a) is hereby expressly excluded from this Indenture, as permitted by the TIA. 

  

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 (c) The Trustee may not be relieved from liability for its own negligent action, its own negligent
failure to act or its own willful misconduct, except that: 
  

	 	(1)	this Section (c) does not limit the effect of Section (b) of this Section 7.1; 

  

	 	(2)	the Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer unless it is proved that the Trustee was negligent in ascertaining the
pertinent facts; and 

  

	 	(3)	the Trustee shall not be liable with respect to any action it takes or omits to take in good faith in accordance with a direction received by it pursuant to Section 6.5.

 Subparagraphs (c)(1), (2) and (3) shall be in lieu of Sections 315(d)(1), 315(d)(2) and 315(d)(3) of the TIA and such Sections
315(d)(1), 315(d)(2) and 315(d)(3) are hereby expressly excluded from this Indenture, as permitted by the TIA. 
 (d) Every provision of this
Indenture that in any way relates to the Trustee is subject to paragraphs (a), (b), (c) and (e) of this Section 7.1. 
 (e)
The Trustee may refuse to perform any duty or exercise any right or power or extend or risk its own funds or otherwise incur any financial liability unless it receives indemnity satisfactory to it against any loss, liability or expense. 

(f) Money held by the Trustee in trust hereunder need not be segregated from other funds except to the extent required by law. The Trustee (acting in
any capacity hereunder) shall be under no liability for interest on any money received by it hereunder unless otherwise agreed in writing with the Company. 
 Section 7.2 Rights of Trustee. Subject to its duties and responsibilities under the TIA, 
 (a) the
Trustee may conclusively rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of
indebtedness or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties; 
 (b) whenever in the administration of this Indenture the Trustee shall deem it desirable that a matter be proved or established prior to taking, suffering or omitting any action hereunder, the Trustee (unless other evidence be herein
specifically prescribed) may, in the absence of bad faith on its part, conclusively rely upon an Officers’ Certificate; 
 (c) the
Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys and the Trustee shall not be responsible for any misconduct or negligence on the part of any agent or
attorney appointed with due care by it hereunder; 
  

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 (d) the Trustee shall not be liable for any action taken, suffered, or omitted to be taken by it in good
faith which it believes to be authorized or within its rights or powers conferred under this Indenture; 
 (e) the Trustee may consult with
counsel selected by it and any advice or Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken or suffered or omitted by it hereunder in good faith and in accordance with such advice or Opinion of
Counsel; 
 (f) the Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the
request, order or direction of any of the Holders, pursuant to the provisions of this Indenture, unless such Holders shall have offered to the Trustee security or indemnity satisfactory to it against the costs, expenses and liabilities which may be
incurred therein or thereby; 
 (g) any request or direction of the Company mentioned herein shall be sufficiently evidenced by a Company
Request or Company Order and any resolution of the Board of Directors may be sufficiently evidenced by a Board Resolution; 
 (h) the Trustee
shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness
or other paper or document, but the Trustee, in its discretion, may make such further inquiry or investigation into such facts or matters as it may see fit, and, if the Trustee shall determine to make such further inquiry or investigation, it shall
be entitled to examine the books, records and premises of the Company, personally or by agent or attorney at the sole cost of the Company and shall incur no liability or additional liability of any kind by reason of such inquiry or investigation;

 (i) the Trustee shall not be deemed to have notice of any Default or Event of Default unless a Responsible Officer of the Trustee has
actual knowledge thereof or unless written notice of any event which is in fact such a default is received by the Trustee at the Corporate Trust Office of the Trustee, and such notice references the Securities and this Indenture; 
 (j) the rights, privileges, protections, immunities and benefits given to the Trustee, including, without limitation, its right to be indemnified, are
extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder, and to each agent, custodian and other person employed to act hereunder; and 
 (k) the Trustee may request that the Company deliver an Officers’ Certificate setting forth the names of individuals and/or titles of officers authorized at such time to take specified actions pursuant to this
Indenture, which Officers’ Certificate may be signed by any person authorized to sign an Officers’ Certificate, including any person specified as so authorized in any such certificate previously delivered and not superseded. 
 Section 7.3 Individual Rights of Trustee. The Trustee in its individual or any other capacity may become the owner or pledgee of Securities and
may otherwise deal with the 
  

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 Company or its Affiliates with the same rights it would have if it were not Trustee. Any Paying Agent, Registrar,
Conversion Agent or co-registrar may do the same with like rights. However, the Trustee must comply with Sections 7.10 and 7.11. 
 Section
7.4 Trustee’s Disclaimer. The Trustee makes no representation as to the validity or adequacy of this Indenture or the Securities, it shall not be accountable for the Company’s use or application of the proceeds from the Securities,
it shall not be responsible for any statement in the registration statement for the Securities under the Securities Act or in any offering document for the Securities, the Indenture or the Securities (other than its certificate of authentication),
or the determination as to which beneficial owners are entitled to receive any notices hereunder. 
 Section 7.5 Notice of Defaults.
If a Default occurs and if it is known to the Trustee, the Trustee shall give to each Securityholder notice of the Default within 90 days after it occurs or, if later, within 15 days after it is known to the Trustee, unless such Default shall have
been cured or waived before the giving of such notice. Notwithstanding the preceding sentence, except in the case of a Default described in Section 6.1(1) or (2), the Trustee may withhold the notice if and so long as a committee of its
Responsible Officers in good faith determines that withholding the notice is in the interest of the Securityholders. The preceding sentence shall be in lieu of the proviso to Section 315(b) of the TIA and such proviso is hereby expressly
excluded from this Indenture, as permitted by the TIA. The Trustee shall not be deemed to have knowledge of a Default unless a Responsible Officer of the Trustee has received written notice of such Default, which notice specifically references this
Indenture and the Securities. 
 Section 7.6 Reports by Trustee to Holders. Within 60 days after each May 15 beginning with the
May 15 following the date of this Indenture, the Trustee shall mail to each Securityholder a brief report dated as of such May 15 that complies with TIA Section 313(a), if required by such Section 313(a). The Trustee also shall
comply with TIA Section 313(b). 
 A copy of each report at the time of its mailing to Securityholders shall be filed with the SEC and
each securities exchange, if any, on which the Securities are listed. The Company agrees to notify the Trustee promptly whenever the Securities become listed on any securities exchange and of any delisting thereof. 
 Section 7.7 Compensation and Indemnity. The Company agrees: 
 (a) to pay to the Trustee from time to time such compensation as the Company and the Trustee shall from time to time agree in writing for all services rendered by it hereunder (which compensation shall not be limited
(to the extent permitted by law) by any provision of law in regard to the compensation of a trustee of an express trust); 
 (b) to reimburse
the Trustee upon its request for all reasonable expenses, disbursements and advances incurred or made by the Trustee in accordance with any provision of this Indenture (including the reasonable compensation and the expenses, advances and
disbursements of its agents and counsel), except any such expense, disbursement or advance as may be attributable to its negligence or bad faith; and 
  

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 (c) to indemnify the Trustee or any predecessor Trustee and their agents for, and to hold them harmless
against, any loss, damage, claim, liability, cost or expense (including attorney’s fees and expenses, and taxes (other than taxes based upon, measured by or determined by the income of the Trustee)) incurred without negligence or bad faith on
its part, arising out of or in connection with the acceptance or administration of this trust, including the costs and expenses of defending itself against any claim (whether asserted by the Company or any Holder or any other person) or liability in
connection with the exercise or performance of any of its powers or duties hereunder. 
 To secure the Company’s payment obligations in
this Section 7.7, the Trustee shall have a lien prior to the Securities on all money or property held or collected by the Trustee, except that held in trust to pay the principal amount, Redemption Price, Purchase Price, Change of Control
Purchase Price or interest, including contingent interest and additional interest, if any, as the case may be, on particular Securities. 
 The Company’s payment obligations pursuant to this Section 7.7 shall survive the discharge of this Indenture and the resignation or removal of the Trustee. When the Trustee incurs expenses after the occurrence of a Default
specified in Section 6.1(5) or (6), the expenses including the reasonable charges and expenses of its counsel, are intended to constitute expenses of administration under any bankruptcy law. 
 Section 7.8 Replacement of Trustee. The Trustee may resign by so notifying the Company; provided, however, no such resignation shall be effective
until a successor Trustee has accepted its appointment pursuant to this Section 7.8. The Holders of a majority in aggregate principal amount of the Securities at the time outstanding may remove the Trustee by so notifying the Trustee and the
Company. The Company shall remove the Trustee if: 
  

	 	(1)	the Trustee fails to comply with Section 7.10; 

  

	 	(2)	the Trustee is adjudged bankrupt or insolvent; 

  

	 	(3)	a receiver or public officer takes charge of the Trustee or its property; or 

  

	 	(4)	the Trustee otherwise becomes incapable of acting. 

 If
the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any reason, the Company shall promptly appoint, by resolution of its Board of Directors, a successor Trustee. 
 A successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Company satisfactory in form and substance
to the retiring Trustee and the Company. Thereupon the resignation or removal of the retiring Trustee shall become effective, and the successor Trustee shall have all the rights, powers and duties of the Trustee under this Indenture. The successor
Trustee shall mail a notice of its succession to Securityholders. The retiring Trustee shall promptly transfer all property held by it as Trustee to the successor Trustee, subject to the lien provided for in Section 7.7. 
  

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 If a successor Trustee does not take office within 30 days after the retiring Trustee resigns or is
removed, the retiring Trustee, the Company or the Holders of a majority in aggregate principal amount of the Securities at the time outstanding may petition any court of competent jurisdiction at the expense of the Company for the appointment of a
successor Trustee. 
 If the Trustee fails to comply with Section 7.10, any Securityholder may petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor Trustee. 
 Section 7.9 Successor Trustee by Merger. If
the Trustee consolidates with, merges or converts into, or transfers all or substantially all its corporate trust business or assets to, another corporation, the resulting, surviving or transferee corporation without any further act shall be the
successor Trustee. 
 Section 7.10 Eligibility; Disqualification. The Trustee shall at all times satisfy the requirements of TIA
Sections 310(a)(1) and 310(b). The Trustee (or its parent holding company) shall have a combined capital and surplus of at least $50,000,000 as set forth in its most recent published annual report of condition. Nothing herein contained shall prevent
the Trustee from filing with the Commission the application referred to in the penultimate paragraph of TIA Section 310(b). 
 Section
7.11 Preferential Collection of Claims Against Company. The Trustee shall comply with TIA Section 311(a), excluding any creditor relationship listed in TIA Section 311(b). A Trustee who has resigned or been removed shall be subject
to TIA Section 311(a) to the extent indicated therein. 
 ARTICLE VIII 
 DISCHARGE OF INDENTURE 
 Section 8.1 Discharge of Liability on
Securities. When (i) the Company delivers to the Trustee all outstanding Securities (other than Securities replaced or repaid pursuant to Section 2.7) for cancellation or (ii) all outstanding Securities have become due and payable
and the Company deposits with the Trustee cash sufficient to pay all amounts due and owing on all outstanding Securities (other than Securities replaced pursuant to Section 2.7), and if in either case the Company pays all other sums payable
hereunder by the Company, then this Indenture shall, subject to Section 7.7, cease to be of further effect. The Trustee shall join in the execution of a document prepared by the Company acknowledging satisfaction and discharge of this Indenture
on demand of the Company accompanied by an Officers’ Certificate and Opinion of Counsel and at the cost and expense of the Company. 
 Section 8.2 Repayment to the Company. The Trustee and the Paying Agent shall return to the Company upon written request any money or securities held by them for the payment of any amount with respect to the Securities that remains
unclaimed for two years, subject to applicable unclaimed property law. After return to the Company, Holders entitled to the money or securities must look to the Company for payment as general creditors unless an 
  

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 applicable abandoned property law designates another person and the Trustee and the Paying Agent shall have no further
liability to the Securityholders with respect to such money or securities for that period commencing after the return thereof. 
 ARTICLE
IX 
 AMENDMENTS 
 Section 9.1 Without Consent of Holders. The Company and the Trustee may amend this Indenture or the Securities without the consent of any Securityholder to: 
 (a) add to the covenants of the Company for the benefit of the Holders of Securities; 
 (b) surrender any right or power herein conferred upon the Company; 
 (c) provide for conversion rights of Holders of Securities if any reclassification or change of the Common Stock or any consolidation, merger or sale of all or substantially all of the Company’s assets occurs;

 (d) provide for the assumption of the Company’s obligations to the Holders of Securities in the case of a merger, consolidation,
conveyance, transfer or lease pursuant to Article V hereof; 
 (e) reduce the Conversion Price; provided, however, that such reduction
in the Conversion Price shall not adversely affect the interests of the Holders of Securities (after taking into account tax and other consequences of such reduction); 
 (f) comply with the requirements of the SEC in order to effect or maintain the qualification of this Indenture under the TIA; 
 (g) cure any ambiguity, to correct or supplement any provision herein which may be inconsistent with any other provision herein or which is otherwise defective; provided, however, that such action pursuant to
this clause (g) does not, in the good faith opinion of the Board of Directors of the Company (as evidenced by a Board Resolution) and the Trustee, adversely affect the interests of the Holders of Securities in any material respect; and

 (h) add or modify any other provisions herein with respect to matters or questions arising hereunder which the Company and the Trustee may
deem necessary or desirable and which will not adversely affect the interests of the Holders of Securities. 
 Section 9.2 With Consent of
Holders. Except as provided below in this Section 9.2, this Indenture or the Securities may be amended, modified or supplemented, and noncompliance in any particular instance with any provision of this Indenture or the Securities may be
waived, in each case with the written consent of the Holders of at least a majority of the principal amount of the Securities at the time outstanding. 
  

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 Without the written consent or the affirmative vote of each Holder of Securities affected thereby, an
amendment or waiver under this Section 9.2 may not: 
 (a) change the maturity of the principal amount of, or any installment of
interest, including contingent interest or additional interest, on, any Security; 
 (b) reduce the principal amount of, or interest,
including contingent interest or additional interest, payable on, or the Redemption Price, Purchase Price or Change of Control Purchase Price of any Security; 
 (c) impair or adversely affect the conversion rights of any Holder of Securities; 
 (d) reduce the value of
the Common Stock to which reference is made in determining whether an interest adjustment will be made on the Securities, or change the method by which this value is calculated; 
 (e) change the currency of any amount owed or owing under the Security or any interest thereon from U.S. Dollars; 
 (f) alter or otherwise modify the rate of interest, including contingent interest or additional interest, on any Security, or the manner of calculation
thereof, or extend time for payment of any amounts due and payable to the Holders of the Securities; 
 (g) impair the right of any Holder to
institute suit for the enforcement of any payment or with respect to, or conversion of, any Security; 
 (h) modify the obligation of the
Company to maintain an office or agency in The City of New York pursuant to Section 4.5; 
 (i) except as otherwise permitted or
contemplated by Article V or X, adversely affect the purchase right of the Holders of the Securities as provided in Article III or the right of the Holders of the Securities to convert any Security as provided in Article X; 
 (j) modify the provisions of Article III in a manner adverse to the Holders of the Securities; 
 (k) modify any of the provisions of this Section, or reduce the percentage of the principal amount of outstanding Securities required to waive a default,
except to provide that certain other provisions of this Indenture cannot be modified or waived without the consent of the Holder of each outstanding Security affected thereby; or 
 (l) reduce the percentage of the principal amount of the outstanding Securities the consent of whose Holders is required for any supplemental indenture
or the consent of whose Holders is required for any waiver provided for in this Indenture. 
 It shall not be necessary for the consent of
the Holders under this Section 9.2 to approve the particular form of any proposed amendment, but it shall be sufficient if such consent approves the substance thereof. 
  

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 After an amendment under this Section 9.2 becomes effective, the Company shall mail to each Holder a
notice briefly describing the amendment. 
 Nothing in this Section 9.2 shall impair the ability of the Company and the Trustee to amend
this Indenture or the Securities without the consent of any Securityholder to provide for the assumption of the Company’s obligations to the Holders of Securities in the case of a merger, consolidation, conveyance, transfer or lease pursuant to
Article V hereof. 
 Section 9.3 Compliance with Trust Indenture Act. Every supplemental indenture executed pursuant to this Article
shall comply with the TIA. 
 Section 9.4 Revocation and Effect of Consents, Waivers and Actions. Until an amendment, waiver or other
action by Holders becomes effective, a consent thereto by a Holder of a Security hereunder is a continuing consent by the Holder and every subsequent Holder of that Security or portion of the Security that evidences the same obligation as the
consenting Holder’s Security, even if notation of the consent, waiver or action is not made on the Security. However, any such Holder or subsequent Holder may revoke the consent, waiver or action as to such Holder’s Security or portion of
the Security if the Trustee receives the notice of revocation before the date the amendment, waiver or action becomes effective. After an amendment, waiver or action becomes effective, it shall bind every Securityholder. 
 Section 9.5 Notation on or Exchange of Securities. Securities authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article may, and shall if required by the Trustee, bear a notation in form approved by the Trustee as to any matter provided for in such supplemental indenture. If the Company shall so determine, new Securities so modified as to
conform, in the opinion of the Trustee and the Board of Directors, to any such supplemental indenture may be prepared and executed by the Company and authenticated and delivered by the Trustee in exchange for outstanding Securities. 
 Section 9.6 Trustee to Sign Supplemental Indentures. The Trustee shall sign any supplemental indenture authorized pursuant to this Article IX if
the amendment contained therein does not adversely affect the rights, duties, liabilities or immunities of the Trustee. If it does, the Trustee may, but need not, sign such supplemental indenture. In signing such supplemental indenture the Trustee
shall receive, and (subject to the provisions of Section 7.1) shall be fully protected in relying upon, an Officers’ Certificate and an Opinion of Counsel stating that such amendment is authorized or permitted by this Indenture.

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

  

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 ARTICLE X 
 CONVERSIONS 
 Section 10.1 Conversion Privilege. (a) Subject to and upon compliance with
the provisions of this Article X, a Holder of a Security shall have the right, at such Holder’s option, to convert all or any portion (if the portion to be converted is $1,000 or an integral multiple of $1,000) of such Security into cash and,
if applicable, shares of Common Stock at the Conversion Price in effect on the Conversion Date: 
 (1) during any Conversion
Period, if the Sale Price of the Common Stock for at least 20 Trading Days in the 30 Trading Day period ending on the first day of such Conversion Period was more than 120% of the Conversion Price in effect on such 30th Trading Day (in the event
that the Conversion Price on such thirtieth Trading Day is not the same as the Conversion Price in effect for each of such thirty Trading Days, the Conversion Agent shall make such adjustments as it, in its discretion, deems appropriate in
determining whether the foregoing condition has been met); 
 (2) during the five Business Day period following any 10
consecutive Trading Day period in which the average of the Trading Prices of the Securities for such 10 Trading Day period was less than 105% of the average of the Parity Values of the Securities during the same period; 
 (3) at any time prior to the close of business on the second Business Day preceding the date fixed for redemption, if such Security has
been called for redemption pursuant to Article III hereof; 
 (4) during any period after the 30th day following the original
issuance of the Securities in which (A) the credit rating assigned to the Securities by both Moody’s Investor Services, Inc. and Standard & Poor’s Rating Services is below Baa3 or BBB-, respectively, (B) the credit
rating assigned to the Securities by both such rating agencies is suspended or withdrawn or (C) neither of such rating agencies is then rating the Securities; or 
 (5) as provided in Section (b) of this Section 10.1. 
 The Conversion Agent shall, on behalf of the Company, determine on a daily basis whether the Securities shall be convertible as a result of the
occurrence of an event specified in clause (1) or clause (2) above and, if the Securities shall be so convertible, the Conversion Agent shall promptly deliver to the Company and the Trustee written notice thereof. Whenever the Securities
shall become convertible pursuant to Section 10.1, the Company or, at the Company’s request, the Trustee in the name and at the expense of the Company, shall notify the Holders of the event triggering such convertibility in the manner
provided in Section 11.2, and the Company shall also publicly announce such information and publish it on the Company’s Web site. Any notice so given shall be conclusively presumed to have been duly given, whether or not the Holder
receives such notice. 
  

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 (b) In addition, in the event that: 
 (1) (A) the Company distributes to all holders of its shares of Common Stock rights or warrants entitling them (for a period expiring
within 60 days of the Record Date for such distribution) to subscribe for or purchase shares of Common Stock, at a price per share less than the Sale Price of the Common Stock on the Business Day immediately preceding the announcement of such
distribution, (B) the Company distributes to all holders of its shares of Common Stock, cash or other assets, debt securities or rights or warrants to purchase its securities, where the Fair Market Value (as determined by the Board of
Directors) of such distribution per share of Common Stock exceeds 10% of the Sale Price of a share of Common Stock on the Business Day immediately preceding the date of declaration of such distribution, or (C) a Change of Control occurs but
Holders of Securities do not have the right to require the Company to purchase their Securities as a result of such Change of Control, because of the provisions set forth in Section 3.8(a)(2), then, in each case, the Securities may be
surrendered for conversion at any time on and after the date that the Company gives notice to the Holders of such right, which shall be not less than 20 days prior to the Ex-Dividend Time for such distribution, in the case of (A) or (B), or
within 30 days after the occurrence of the Change of Control, in the case of (C), until the earlier of the close of business on the Business Day immediately preceding the Ex-Dividend Time or the date the Company announces that such distribution will
not take place, in the case of (A) or (B), or the earlier of 30 days after the Company’s delivery of the Change of Control Purchase Notice or the date the Company announces that the Change of Control will not take place, in the case of
(C). 
 (2) the Company consolidates with or merges into another corporation, or is a party to a binding share exchange
pursuant to which the shares of Common Stock would be converted into cash, securities or other property as set forth in Section 10.4 hereof, then the Securities may be surrendered for conversion at any time from and after the date which is 15
days prior to the date announced by the Company as the anticipated effective time of such transaction until 15 days after the actual date of such transaction. 
 “Conversion Period” means the period from and including the thirtieth Trading Day in a fiscal quarter to, but not including, the thirtieth Trading Day in the immediately following fiscal
quarter. 
 “Parity Value”, on any day, means the product of (x) the Sale Price for the Common Stock multiplied
by (x) the then-current Conversion Rate. 
 “Conversion Value”, on any day, means the product of (x) the
average of the Sale Prices of the Common Stock for the Trading Days during the Cash Settlement Period multiplied by (y) the then-current Conversion Rate. 
 “Cash Settlement Period” means, with respect to any Securities, the ten consecutive Trading Days beginning on the second Trading Day after the Conversion Date. 
 “Ex-Dividend Time” means, with respect to any issuance or distribution on shares of Common Stock, the first date on which the
shares of Common Stock trade regular way on the principal securities market on which the shares of Common Stock are then traded without the right to receive such issuance or distribution. 
  

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 The “Trading Price” of the Securities, on any date of determination, means the
average of the secondary market bid quotations per Security obtained by the Company or the Calculation Agent for $10,000,000 principal amount at maturity of Securities at approximately 3:30 p.m., New York City time, on such determination date from
three independent nationally recognized securities dealers selected by the Company, provided that if at least three such bids cannot reasonably be obtained by the Company or the Calculation Agent, but two such bids are obtained, then the average of
the two bids shall be used, and if only one such bid can reasonably be obtained by the Company or the Calculation Agent, this one bid shall be used. If either the Company or the Calculation Agent cannot reasonably obtain at least one bid for
$10,000,000 principal amount at maturity of Securities from a nationally recognized securities dealer or in the reasonable judgment of the Company, the bid quotations are not indicative of the secondary market value of the Securities, then the
trading price of the Securities will equal (a) the then-current Conversion Rate multiplied by (b) the Sale Price of the Common Stock on such determination date. 
 The “Conversion Rate”, at any time, shall equal (A) $1,000 divided by (B) the Conversion Price at such time, rounded to three decimal places (rounded up if the fourth decimal place
thereof is 5 or more and otherwise rounded down). 
 Section 10.2 Conversion Procedure; Conversion Price;
Fractional Shares. 
 (a) Each Security shall be convertible at the office of the Conversion Agent into cash and, if applicable, fully
paid and nonassessable shares (calculated to the nearest 1/100th of a share) of Common Stock. The Security will be converted into (i) cash in an amount (the “Cash Amount”) equal to the lesser of (w) the principal
amount of the Security and (x) the Conversion Value of the Security and (ii) if the Conversion Value of the Security is greater than the Cash Amount, then a number of shares of Common Stock (the “Net Shares”, and
together with the Cash Amount, the “Settlement Amount”) equal to the greater of (x) zero and (y) the sum of the Daily Share Amounts for each of the ten consecutive Trading Days in the Cash Settlement Period. The
“Daily Share Amount” for each day in the Cash Settlement Period is equal to the quotient of (A) .10 multiplied by the difference between (I) the product of the then-current Conversion Rate multiplied by the Sale
Price of the Common Stock on such Trading Day and (II) $1,000 divided by (B) the Sale Price of the Common Stock on such Trading Day. No payment or adjustment shall be made in respect of dividends on the Common Stock or accrued interest on a
converted Security, except as described in Section 10.9 hereof. The Company shall not issue any fraction of a share of Common Stock in connection with any conversion of Securities, but instead shall, subject to Section 10.3(h) hereof, make
a cash payment (calculated to the nearest cent) equal to such fraction multiplied by the Sale Price of the Common Stock on the last Trading Day prior to the Conversion Date. Notwithstanding the foregoing, a Security in respect of which a Holder has
delivered a Purchase Notice or Change of Control Purchase Notice exercising such Holder’s option to require the Company to repurchase such Security may be converted only if such notice of exercise is withdrawn in accordance with
Section 3.10 hereof. 
  

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 (b) Before any Holder of a Security shall be entitled to convert the same, such Holder shall, in the case
of Securities issued in global form, comply with the procedures of the Depositary in effect at that time, and in the case of definitive Securities, surrender such Securities, duly endorsed to the Company or in blank, at the office of the Conversion
Agent, and shall give written notice to the Company at said office or place that such Holder elects to convert the same and shall state in writing therein the principal amount of Securities to be converted and the name or names (with addresses) in
which such Holder wishes the certificate or certificates for Common Stock, if any, to be issued. 
 Before any such conversion, a Holder also
shall pay all funds required, if any, relating to interest on the Securities, as provided in Section 10.9, and all taxes or duties, if any, as provided in Section 10.8. 
 If more than one Security shall be surrendered for conversion at one time by the same Holder, the amount of cash and number of full shares of Common
Stock, if any, which shall be deliverable upon conversion shall be computed on the basis of the aggregate principal amount of the Securities (or specified portions thereof to the extent permitted thereby) so surrendered. Subject to the next
succeeding sentence, the Company will, on the third Business Day following the final day of the Cash Settlement Period with respect to the Security to be converted, issue and deliver at said office or place to such Holder of a Security, or to such
Holder’s nominee or nominees, the amount of cash and certificates for the number of full shares of Common Stock, if any, to which such Holder shall be entitled as aforesaid, together, subject to the last sentence of Section (a) above, with
cash in lieu of any fraction of a share to which such Holder would otherwise be entitled. The Company shall not be required to deliver certificates for shares of Common Stock while the stock transfer books for such stock or the security register are
duly closed for any purpose, but certificates for shares of Common Stock shall be issued and delivered as soon as practicable after the opening of such books or security register. 
 (c) A Security shall be deemed to have been converted as of the close of business on the date of the surrender of such Securities for conversion as
provided above (the “Conversion Date”), and the person or persons entitled to receive the Common Stock, if any, issuable upon such conversion shall be treated for all purposes as the record Holder or Holders of such Common
Stock as of the close of business on such date. 
 (d) In case any Security shall be surrendered for partial conversion, the Company shall
execute and the Trustee shall authenticate and deliver to or upon the written order of the Holder of the Security so surrendered, without charge to such Holder (subject to the provisions of Section 10.8 hereof), a new Security or Securities in
authorized denominations in an aggregate principal amount equal to the unconverted portion of the surrendered Securities. 
 (e) If a Holder
tenders Securities for conversion and the Conversion Value is being determined at a time when the Securities are convertible into other property (the “Exchange Property”) in addition to, or in lieu of, Common Stock, the
Conversion Value of each Security and the Daily Share Amount shall be determined based on the value thereof during the Cash Settlement Period. For the purposes of this Section, the “Sale Price of the Common Stock” shall be deemed to equal
the sum of (A) the Sale Price of a share of Common Stock (to the extent the Securities are still convertible into Common Stock), (B) 100% of the value of any 
  

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 Exchange Property consisting of cash received per share of Common Stock, (C) the Sale Price of any Exchange Property
received per share of Common Stock consisting of securities that are traded on a U.S. national securities exchange or approved for quotation on the National Association of Securities Dealers Automated Quotation System and (D) the fair market
value of any other Exchange Property received per share, as determined by a nationally recognized investment bank selected by the Company for this purpose. 
 (f) Settlement (in cash and/or shares) will occur on the third Business Day following the final day of the Cash Settlement Period. Any amount of the Net Shares to be delivered shall be paid in Exchange Property in
addition to or in lieu of shares of Common Stock to the extent Securities are convertible into Exchange Property at such time in addition to or in lieu of shares of Common Stock. If the Securities are convertible into more than one kind of property,
the amount of each kind to be delivered in respect of the Net Shares shall be in the proportion that the value (as calculated in Section 10.2(e)) of such kind bears to the value of all such Exchange Property and/or Common Stock. If the
foregoing calculations would require the Company to deliver a fractional share or unit of Exchange Property to a Holder of Securities being converted, the Company shall deliver cash in lieu of such fractional share or unit based on the value of the
Exchange Property. 
 Section 10.3 Adjustment of Conversion Price for Common Stock. 
 The Conversion Price shall be adjusted from time to time as follows: 
 (a) In case the Company shall, at any time or from time to time while any of the Securities are outstanding, pay a dividend or make a distribution in shares of Common Stock to all holders of its outstanding shares of
Common Stock, then the Conversion Price in effect at the opening of business on the date following the record date fixed for the determination of stockholders entitled to receive such dividend or other distribution shall be reduced by multiplying
such Conversion Price by a fraction: 
 (1) the numerator of which shall be the number of shares of Common Stock outstanding
at the close of business on the Record Date fixed for such determination; and 
 (2) the denominator of which shall be the sum
of such number of shares and the total number of shares constituting such dividend or other distribution. 
 Such reduction shall become
effective immediately after the opening of business on the day following the Record Date fixed for such determination. If any dividend or distribution of the type described in this Section 10.3(a) is declared but not so paid or made, the
Conversion Price shall again be adjusted to the Conversion Price which would then be in effect if such dividend or distribution had not been declared. 
 (b) In case the Company shall, at any time or from time to time while any of the Securities are outstanding, subdivide its outstanding shares of Common Stock into a greater number of shares of Common Stock, then the
Conversion Price in effect at the opening of business on the day following the day upon which such subdivision becomes effective shall be proportionately reduced, and conversely, in case the Company shall, at any time or from time to time while any
of the Securities are outstanding, combine its outstanding shares of Common 
  

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 Stock into a smaller number of shares of Common Stock, then the Conversion Price in effect at the opening of business on
the day following the day upon which such combination becomes effective shall be proportionately increased. 
 Such reduction or increase, as
the case may be, shall become effective immediately after the opening of business on the day following the day upon which such subdivision or combination becomes effective. 
 (c) In case the Company shall, at any time or from time to time while any of the Securities are outstanding, issue rights or warrants (other than any
rights or warrants referred to in Section 10.3(d)) to all holders of its shares of Common Stock entitling them to subscribe for or purchase shares of Common Stock (or securities convertible into shares of Common Stock) at a price per share (or
having a conversion price per share) less than the Sale Price on the Business Day immediately preceding the date of the announcement of such issuance (treating the conversion price per share of the securities convertible into Common Stock as equal
to (x) the sum of (i) the price for a unit of the security convertible into Common Stock and (ii) any additional consideration initially payable upon the conversion of such security into Common Stock divided by (y) the number of
shares of Common Stock initially underlying such convertible security), then the Conversion Price shall be adjusted so that the same shall equal the price determined by multiplying the Conversion Price in effect at the opening of business on the
date after such date of announcement by a fraction: 
 (1) the numerator of which shall be the number of shares of Common
Stock outstanding on the close of business on the date of announcement, plus the number of shares or securities which the aggregate offering price of the total number of shares or securities so offered for subscription or purchase (or the aggregate
conversion price of the convertible securities so offered) would purchase at such Sale Price of the Common Stock; and 
 (2)
the denominator of which shall be the number of shares of Common Stock outstanding at the close of business on the date of announcement, plus the total number of additional shares of Common Stock so offered for subscription or purchase (or into
which the convertible securities so offered are convertible). 
 Such adjustment shall become effective immediately after the opening of
business on the day following the date of announcement of such issuance. To the extent that shares of Common Stock (or securities convertible into shares of Common Stock) are not delivered pursuant to such rights or warrants, upon the expiration or
termination of such rights or warrants, the Conversion Price shall be readjusted to the Conversion Price which would then be in effect had the adjustments made upon the issuance of such rights or warrants been made on the basis of the delivery of
only the number of shares of Common Stock (or securities convertible into shares of Common Stock) actually delivered. In the event that such rights or warrants are not so issued, the Conversion Price shall again be adjusted to be the Conversion
Price which would then be in effect if the date fixed for the determination of stockholders entitled to receive such rights or warrants had not been fixed. In determining whether any rights or warrants entitle the holders to subscribe for or
purchase shares of Common Stock at less than such Sale Price, and in determining the aggregate offering price of such shares of Common Stock, there shall be taken into account any consideration received for such rights or warrants, the value of such
consideration if other than cash, to be determined by the Board of Directors. 
  

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 (d) In case the Company shall, at any time or from time to time while any of the Securities are
outstanding, by dividend or otherwise, distribute to all holders of its shares of Common Stock (including any such distribution made in connection with a consolidation or merger in which the Company is the continuing corporation and the Common Stock
is not changed or exchanged), cash, shares of its capital stock (other than any dividends or distributions to which Section 10.3(a) applies), evidences of its Indebtedness or other assets, including securities, but excluding (i) any rights
or warrants referred to in Section 10.3(c), (ii) dividends or distributions of stock, securities or other property or assets (including cash) in connection with a reclassification, change, merger, consolidation, statutory share exchange,
combination, sale or conveyance to which Section 10.4 applies and (iii) dividends and distributions paid exclusively in cash (such capital stock, evidence of its indebtedness, cash, other assets or securities being distributed hereinafter
in this Section 10.3(d) called the “distributed assets”), then, in each such case, subject to the third and fourth succeeding paragraphs and the last Section of this Section 10.3(d), the Conversion Price shall be reduced so that
the same shall be equal to the price determined by multiplying the Conversion Price in effect immediately prior to the close of business on the Record Date with respect to such distribution by a fraction: 
 (1) the numerator of which shall be the Current Market Price of the Common Stock, less the Fair Market Value on such date of the portion
of the distributed assets so distributed applicable to one share of Common Stock (determined on the basis of the number of shares of Common Stock outstanding on the Record Date)(determined as provided in Section 10.3(g)) on such date; and

 (2) the denominator of which shall be such Current Market Price. 
 Such reduction shall become effective immediately prior to the opening of business on the day following the Record Date for such distribution. In the event that such
dividend or distribution is not so paid or made, the Conversion Price shall again be adjusted to be the Conversion Price which would then be in effect if such dividend or distribution had not been declared. 
 If the Board of Directors determines the Fair Market Value of any distribution for purposes of this Section 10.3(d) by reference to the actual or
when issued trading market for any distributed assets comprising all or part of such distribution, it must in doing so consider the prices in such market over the same period (the “Reference Period”) used in computing the
Current Market Price pursuant to Section 10.3(g) to the extent possible, unless the Board of Directors determines in good faith that determining the Fair Market Value during the Reference Period would not be in the best interest of the Holders.

 In the event any such distribution consists of shares of capital stock of, or similar equity interests in, one or more of the
Company’s Subsidiaries (a “Spin-Off”), the Fair Market Value of the securities to be distributed shall equal the average of the closing sale prices of such securities on the principal securities market on which such
securities are traded for the five consecutive Trading Days commencing on and including the sixth day of trading of those securities after the effectiveness of the Spin-Off, and the Current Market Price shall be measured 
  

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 for the same period. In the event, however, that an underwritten initial public offering of the securities in the
Spin-Off occurs simultaneously with the Spin-Off, Fair Market Value of the securities distributed in the Spin-Off shall mean the initial public offering price of such securities and the Current Market Price shall mean the Sale Price for the Common
Stock on the same Trading Day. 
 Rights or warrants distributed by the Company to all holders of its shares of Common Stock entitling them
to subscribe for or purchase shares of the Company’s capital stock (either initially or under certain circumstances), which rights or warrants, until the occurrence of a specified event or events (“Trigger Event”),
(i) are deemed to be transferred with such shares of Common Stock, (ii) are not exercisable and (iii) are also issued in respect of future issuances of shares of Common Stock shall be deemed not to have been distributed for purposes
of this Section 10.3(d) (and no adjustment to the Conversion Price under this Section 10.3(d) will be required) until the occurrence of the earliest Trigger Event. If such right or warrant is subject to subsequent events, upon the
occurrence of which such right or warrant shall become exercisable to purchase different distributed assets, evidences of indebtedness or other assets, or entitle the holder to purchase a different number or amount of the foregoing or to purchase
any of the foregoing at a different purchase price, then the occurrence of each such event shall be deemed to be the date of issuance and record date with respect to a new right or warrant (and a termination or expiration of the existing right or
warrant without exercise by the holder thereof). In addition, in the event of any distribution (or deemed distribution) of rights or warrants, or any Trigger Event or other event (of the type described in the preceding sentence) with respect
thereto, that resulted in an adjustment to the Conversion Price under this Section 10.3(d): 
 (1) in the case of any
such rights or warrants which shall all have been redeemed or repurchased without exercise by any holders thereof, the Conversion Price shall be readjusted upon such final redemption or repurchase to give effect to such distribution or Trigger
Event, as the case may be, as though it were a cash distribution, equal to the per share redemption or repurchase price received by a holder of shares of Common Stock with respect to such rights or warrants (assuming such holder had retained such
rights or warrants), made to all holders of shares of Common Stock as of the date of such redemption or repurchase; and 
 (2)
in the case of such rights or warrants which shall have expired or been terminated without exercise, the Conversion Price shall be readjusted as if such rights and warrants had never been issued. 
 For purposes of this Section 10.3(d) and Sections 10.3(a), 10.3(b) and 10.3(c), any dividend or distribution to which this Section 10.3(d) is
applicable that also includes (i) shares of Common Stock, (ii) a subdivision or combination of shares of Common Stock to which Section 10.3(b) applies or (iii) rights or warrants to subscribe for or purchase shares of Common
Stock to which Section 10.3(c) applies (or any combination thereof), shall be deemed instead to be: 
 (1) a dividend or
distribution of the evidences of indebtedness, assets, shares of capital stock, rights or warrants, other than such shares of Common Stock, such subdivision or combination or such rights or warrants to which Sections 10.3(a), 10.3(b) 
  

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 and 10.3(c) apply, respectively (and any Conversion Price reduction required by this Section 10.3(d)
with respect to such dividend or distribution shall then be made), immediately followed by 
 (2) a dividend or distribution
of such shares of Common Stock, such subdivision or combination or such rights or warrants (and any further Conversion Price reduction required by Sections 10.3(a), 10.3(b) and 10.3(c) with respect to such dividend or distribution shall then be
made), except: 
 (A) the Record Date of such dividend or distribution shall be substituted as (i) “the date fixed
for the determination of stockholders entitled to receive such dividend or other distribution,” “Record Date fixed for such determinations” and “Record Date” within the meaning of Section 10.3(a), (ii) “the
day upon which such subdivision becomes effective” and “the day upon which such combination becomes effective” within the meaning of Section 10.3(b), and (iii) as “the date fixed for the determination of stockholders
entitled to receive such rights or warrants,” “the Record Date fixed for the determination of the stockholders entitled to receive such rights or warrants” and such “Record Date” within the meaning of Section 10.3(c);
and 
 (B) any shares of Common Stock included in such dividend or distribution shall not be deemed “outstanding at the
close of business on the date fixed for such determination” within the meaning of Section 10.3(a) and any reduction or increase in the number of shares of Common Stock resulting from such subdivision or combination shall be disregarded in
connection with such dividend or distribution. 
 In the event of any distribution referred to in this Section 10.3(d) in which
(1) the Fair Market Value (as determined by the Board of Directors) of such distribution applicable to one share of Common Stock (determined as provided above) equals or exceeds the average of the Sale Prices of the Common Stock over the ten
consecutive Trading Day period ending on the Record Date for such distribution or (2) the average of the Sale Prices of the Common Stock over the ten consecutive Trading Day period ending on the Record Date for such distribution exceeds the
Fair Market Value of such distribution by less than $1.00, then, from and after the Record Date for such distribution, the Conversion Value and the Daily Share Amount will be calculated based upon, in addition to the shares of Common Stock into
which the Security is convertible (before taking into account the net share settlement provisions set forth in Section 10.2), the kind and amount of securities, cash or other assets comprising the distribution that a holder of a number of
shares of Common Stock equal to the then-current Conversion Rate would have received if such Holder had converted the Security immediately prior to the Record Date for determining the holders of Common Stock entitled to receive the distribution.

 In the event of any distribution referred to in Section 10.3(c) or 10.3(d), where, in the case of a distribution described in
Section 10.3(d), the Fair Market Value of such distribution per share of Common Stock (as determined by the Board of Directors) exceeds 10% of the Sale Price of a share of Common Stock on the Business Day immediately preceding the declaration
date for such distribution, then, if such distribution would also trigger a conversion right under 
  

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 Section 10.1(b) or the Securities are otherwise convertible pursuant to this Article X, the Company will be required
to give notice to the Holders of Securities at least 20 days prior to the Ex-Dividend Time for the distribution and, upon the giving of notice, the Securities may be surrendered for conversion at any time on and after the date that the Company gives
notice to the Holders of such conversion right, until the close of business on the Business Day prior to the Ex-Dividend Time or the Company announces that such distribution will not take place. No adjustment to the Conversion Price or the ability
of a Holder of a Security to convert will be made if the Holder will otherwise participate in such distribution without conversion. 
 (e) In
case the Company shall, at any time or from time to time while any of the Securities are outstanding, by dividend or otherwise, distribute to all holders of its shares of Common Stock, cash (excluding any cash that is distributed upon a
reclassification, change, merger, consolidation, statutory share exchange, combination, sale or conveyance to which Section 10.4 applies or as part of a distribution referred to in Section 10.3(d)), in an aggregate amount that, combined
together with: 
 (1) the aggregate amount of any other such distributions to all holders of shares of Common Stock made
exclusively in cash within the 12 months preceding the date of payment of such distribution, and in respect of which no adjustment pursuant to this Section 10.3(e) has been made; and 
 (2) the aggregate amount of any cash, plus the Fair Market Value (as determined by the Board of Directors) of consideration payable in
respect of any tender offer by the Company or any of its Subsidiaries for all or any portion of the shares of Common Stock concluded within the 12 months preceding the date of such distribution, and in respect of which no adjustment pursuant to
Section 10.3(f) has been made; 
 exceeds 10% of the product of the Current Market Price of the Common Stock on the Record Date with respect to such
distribution, times the number of shares of Common Stock outstanding on such date, then, and in each such case, immediately after the close of business on such date, the Conversion Price shall be reduced so that the same shall equal the price
determined by multiplying the Conversion Price in effect immediately prior to the close of business on such Record Date by a fraction: 
 (1) the numerator of which shall be equal to the Current Market Price on the Record Date, less an amount equal to the quotient of (x) the excess of such combined amount over such 10% and (y) the number of
shares of Common Stock outstanding on the Record Date; and 
 (2) the denominator of which shall be equal to the Current
Market Price on such date. 
 However, in the event that the then Fair Market Value (as so determined) of the portion of cash and other
securities, if any, so distributed applicable to one share of Common Stock is equal to or greater than the Current Market Price on the Record Date, in lieu of the foregoing adjustment, adequate provision shall be made so that each Holder shall have
the right to receive upon conversion of a Security (or any portion thereof) the amount of cash in excess of 
  

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 such 10% such Holder would have received had such Holder converted such Security (or portion thereof) immediately prior
to such Record Date. In the event that such dividend or distribution is not so paid or made, the Conversion Price shall again be adjusted to be the Conversion Price which would then be in effect if such dividend or distribution had not been
declared. 
 (f) In case a tender offer made by the Company or any of its Subsidiaries for all or any portion of the shares of Common Stock
shall expire and such tender offer (as amended upon the expiration thereof) shall require the payment to stockholders (based on the acceptance (up to any maximum specified in the terms of the tender offer) of shares tendered) of an aggregate
consideration having a Fair Market Value (as determined by the Board of Directors) that combined together with: 
 (1) the
aggregate amount of the cash, plus the Fair Market Value (as determined by the Board of Directors), as of the expiration of such tender offer, of consideration payable in respect of any other tender offers, by the Company or any of its Subsidiaries
for all or any portion of the shares of Common Stock expiring within the 12 months preceding the expiration of such tender offer and in respect of which no adjustment pursuant to this Section 10.3(f) has been made; and 
 (2) the aggregate amount of any distributions to all holders of shares of Common Stock made exclusively in cash within 12 months preceding
the expiration of such tender offer and in respect of which no adjustment pursuant to Section 10.3(e) has been made; 
 exceeds 10% of the product of
the Current Market Price of the Common Stock as of the last time (the “Expiration Time”) tenders could have been made pursuant to such tender offer (as it may be amended), times the number of shares of Common Stock
outstanding (including any tendered shares) on the Expiration Time (such excess, the “Excess Amount”), then, and in each such case, immediately prior to the opening of business on the day after the date of the Expiration
Time, the Conversion Price shall be adjusted so that the same shall equal the price determined by multiplying the Conversion Price in effect immediately prior to the close of business on the date of the Expiration Time by a fraction: 
 (1) the numerator of which shall be (x) the product of (i) the number of shares of Common Stock outstanding (including any
tendered shares) at the Expiration Time and (ii) the Current Market Price of the Common Stock at the Expiration Time, less (y) the Excess Amount; and 
 (2) the denominator shall be the product of the number of shares of Common Stock outstanding (including any tendered shares) at the
Expiration Time and the Current Market Price of the Common Stock at the Expiration Time. 
 Such reduction (if any) shall become effective
immediately prior to the opening of business on the day following the Expiration Time. In the event that the Company is obligated to purchase shares pursuant to any such tender offer, but the Company is permanently prevented by applicable law from
effecting any such purchases or all or a portion of such purchases are rescinded, the Conversion Price shall again be adjusted to be the Conversion Price which would 
  

 54 

 then be in effect if such (or such portion of the) tender offer had not been made. If the application of this
Section 10.3(f) to any tender offer would result in an increase in the Conversion Price, no adjustment shall be made for such tender offer under this Section 10.3(f). 
 Pursuant to rights issued under the Company’s preferred share purchase rights plan, if holders of the Securities exercising the right of conversion
attaching after the date the rights separate from the underlying Common Stock are not entitled to receive the rights that would otherwise be attributable (but for the date of conversion) to the shares of Common Stock received upon conversion, the
Conversion Price will be adjusted as though the rights were being distributed to holders of Common Stock on the date of such separation. If such an adjustment is made and the rights are later redeemed, invalidated or terminated, then a corresponding
reversing adjustment will be made to the conversion price on an equitable basis. 
 (g) For purposes of this Article X, the following terms
shall have the meanings indicated: 
 “Current Market Price” on any date means the average of the daily Sale Prices
per share of Common Stock for the ten consecutive Trading Days immediately prior to such date; provided, however, that if: 
 (1) the “ex” date (as hereinafter defined) for any event (other than the issuance or distribution requiring such computation) that requires an adjustment to the Conversion Price pursuant to
Section 10.3(a), (b), (c), (d), (e) or (f) occurs during such ten consecutive Trading Days, the Sale Price for each Trading Day prior to the “ex” date for such other event shall be adjusted by dividing such Sale Price by the
same fraction by which the Conversion Price is so required to be adjusted as a result of such other event; 
 (2) the
“ex” date for any event (other than the issuance or distribution requiring such computation) that requires an adjustment to the Conversion Price pursuant to Section 10.3(a), (b), (c), (d), (e) or (f) occurs on or after the
“ex” date for the issuance or distribution requiring such computation and prior to the day in question, the Sale Price for each Trading Day on and after the “ex” date for such other event shall be adjusted by dividing such Sale
Price by the reciprocal of the fraction by which the Conversion Price is so required to be adjusted as a result of such other event; and 
 (3) the “ex” date for the issuance or distribution requiring such computation is prior to the day in question, after taking into account any adjustment required pursuant to clause (1) or (2) of
this proviso, the Sale Price for each Trading Day on or after such “ex” date shall be adjusted by adding thereto the amount of any cash and the Fair Market Value (as determined by the Board of Directors in a manner consistent with any
determination of such value for purposes of Section 10.3(d), (e) or (f)) of the evidences of Indebtedness, shares of capital stock or assets being distributed applicable to one share of Common Stock as of the close of business on the day
before such “ex” date. 
 For purposes of any computation under Section 10.3(f), if the “ex” date for any event (other than the
tender offer requiring such computation) that requires an adjustment to the Conversion Price pursuant to Section 10.3(a), (b), (c), (d), (e) or (f) occurs on or after the Expiration Time for the 
  

 55 

 tender or exchange offer requiring such computation and prior to the day in question, the Sale Price for each Trading Day
on and after the “ex” date for such other event shall be adjusted by dividing such Sale Price by the reciprocal of the fraction by which the Conversion Price is so required to be adjusted as a result of such other event. For purposes of
this paragraph, the term “ex” date, when used: 
 (1) with respect to any issuance or distribution, means the first
date on which the shares of Common Stock trade regular way on the relevant exchange or in the relevant market from which the Sale Price was obtained without the right to receive such issuance or distribution; 
 (2) with respect to any subdivision or combination of shares of Common Stock, means the first date on which the shares of Common Stock
trade regular way on such exchange or in such market after the time at which such subdivision or combination becomes effective; and 
 (3) with respect to any tender or exchange offer, means the first date on which the shares of Common Stock trade regular way on such exchange or in such market after the Expiration Time of such offer. 
 Notwithstanding the foregoing, whenever successive adjustments to the Conversion Price are called for pursuant to this Section 10.3, such adjustments shall be made
to the Current Market Price as may be necessary or appropriate to effectuate the intent of this Section 10.3 and to avoid unjust or inequitable results as determined in good faith by the Board of Directors. 
 “Fair Market Value” shall mean the amount which a willing buyer would pay a willing seller in an arm’s length transaction
(as determined by the Board of Directors, whose determination shall be conclusive). 
 “Record Date” shall mean, with
respect to any dividend, distribution or other transaction or event in which the holders of shares of Common Stock have the right to receive any cash, securities or other property or in which the shares of Common Stock (or other applicable security)
is exchanged for or converted into any combination of cash, securities or other property, the date fixed for determination of stockholders entitled to receive such cash, securities or other property (whether such date is fixed by the Board of
Directors or by statute, contract or otherwise). 
 (h) The Company shall be entitled to make such additional reductions in the Conversion
Price, in addition to those required by Sections 10.3(a), (b), (c), (d), (e) and (f), as shall be necessary in order that any dividend or distribution of Common Stock, any subdivision, reclassification or combination of shares of Common Stock
or any issuance of rights or warrants referred to above shall not be taxable to the holders of Common Stock for U.S. Federal income tax purposes. 
 (i) To the extent permitted by applicable law, the Company may, from time to time, reduce the Conversion Price by any amount for any period of time, if such period is at least 20 days and the reduction is irrevocable during the period.
Whenever the Conversion Price is reduced pursuant to the preceding sentence, the Company shall mail to the Trustee and each 
  

 56 

 Holder at the address of such Holder as it appears in the register of the Securities maintained by the Registrar, at
least 15 days prior to the date the reduced Conversion Price takes effect, a notice of the reduction stating the reduced Conversion Price and the period during which it will be in effect. 
 (j) In any case in which this Section 10.3 shall require that any adjustment be made effective as of or retroactively immediately following a Record
Date, the Company may elect to defer (but only for five Trading Days following the filing of the statement referred to in Section 10.5) issuing to the Holder of any Securities converted after such Record Date the shares of Common Stock issuable
upon such conversion over and above the shares of Common Stock issuable upon such conversion on the basis of the Conversion Price prior to adjustment; provided, however, that the Company shall deliver to such Holder a due bill or other
appropriate instrument evidencing such Holder’s right to receive such additional shares upon the occurrence of the event requiring such adjustment. 
 (k) All calculations under this Section 10.3 shall be made to the nearest cent or one-hundredth of a share, with one-half cent and 0.005 of a share, respectively, being rounded upward. Notwithstanding any other
provision of this Section 10.3, the Company shall not be required to make any adjustment of the Conversion Price unless such adjustment would require an increase or decrease of at least 1% of such price. Any lesser adjustment shall be carried
forward and shall be made at the time of and together with the next subsequent adjustment which, together with any adjustment or adjustments so carried forward, shall amount to an increase or decrease of at least 1% in such price. Any adjustments
under this Section 10.3 shall be made successively whenever an event requiring such an adjustment occurs. 
 (l) In the event that at
any time, as a result of an adjustment made pursuant to this Section 10.3, the Holder of any Securities thereafter surrendered for conversion shall become entitled to receive any shares of stock of the Company other than shares of Common Stock
into which the Securities originally were convertible, the Conversion Price of such other shares so receivable upon conversion of any such Security shall be subject to adjustment from time to time in a manner and on terms as nearly equivalent as
practicable to the provisions with respect to Common Stock contained in subparagraphs (a) through (k) of this Section 10.3, and the provision of Sections 10.1, 10.2 and 10.4 through 10.9 with respect to the Common Stock shall apply on
like or similar terms to any such other shares and the determination of the Board of Directors as to any such adjustment shall be conclusive. 
 (m) No adjustment shall be made pursuant to this Section 10.3 (i) if the effect thereof would be to reduce the Conversion Price below the par value (if any) of the Common Stock or (ii) if the Holders of the Securities may
participate in the transaction that would otherwise give rise to an adjustment pursuant to this Section 10.3. 
 Section 10.4 Consolidation or Merger of the Company. 
 If any of the following events occurs, namely: 

(1) any reclassification or change of the outstanding Common Stock (other than a change in par value, or from par value to no par
value, or from no par value to par value, or as a result of a subdivision or combination); 
  

 57 

 (2) any merger, consolidation, statutory share exchange or combination of the Company
with another corporation as a result of which holders of Common Stock shall be entitled to receive stock, securities or other property or assets (including cash) with respect to or in exchange for such Common Stock; or 
 (3) any sale or conveyance of the properties and assets of the Company as, or substantially as, an entirety to any other corporation as a
result of which holders of Common Stock shall be entitled to receive stock, securities or other property or assets (including cash) with respect to or in exchange for such Common Stock; 
 the Company or the successor or purchasing corporation, as the case may be, shall execute with the Trustee a supplemental indenture (which shall comply with the Trust Indenture Act as in force at the date of execution
of such supplemental indenture, if such supplemental indenture is then required to so comply). The supplemental indenture shall provide that the Conversion Value and Daily Share Amount will be determined based upon the kind and amount of securities,
cash or other assets which a holder of a number of shares of Common Stock equal to the Conversion Rate would have received in any such reclassification, change, merger, consolidation, statutory share exchange, combination, sale or conveyance
assuming such holder was not a constituent Person or an Affiliate of a constituent Person to such transaction. In the event holders of the Common Stock have the opportunity to elect the form of consideration to be received in any such transaction,
the Company will make adequate provision whereby the Holders of the Securities shall have a reasonable opportunity to determine the form of consideration, into which all of the Securities, treated as a single class, shall be convertible from and
after the effective date of such transaction (subject to the Company’s ability to settle the conversion obligation in cash). Any such determination shall be subject to any limitations to which all of the holders of the Common Stock are subject,
such as pro-rata reductions applicable to any portion of the consideration to be paid, and shall be conducted in such a manner as to be completed by the date which is the earliest of (a) the deadline for elections to be made by holders of the
Common Stock in connection with such transaction, and (b) two Trading Days prior to the anticipated effective date of such event. The Company shall provide notice of the opportunity to determine the form of such consideration, as well as notice
of the determination made by Holders of the Securities by issuing a press release and providing a copy of such notice to the Trustee. The Company will not become a party to any such transaction unless its terms are consistent with the foregoing.

 Such supplemental indenture shall provide for adjustments which shall be as nearly equivalent as may be practicable to the adjustments provided for in
this Article X. If, in the case of any such reclassification, change, merger, consolidation, statutory share exchange, combination, sale or conveyance, the stock or other securities and assets receivable thereupon by a holder of Common Stock
includes shares of stock or other securities and assets of a corporation other than the successor or purchasing corporation, as the case may be, in such reclassification, change, merger, consolidation, statutory share exchange, combination, sale or
conveyance, then such supplemental indenture shall also be executed by such other corporation and shall contain such 
  

 58 

 additional provisions to protect the interests of the Holders of the Securities as the Board of Directors shall
reasonably consider necessary by reason of the foregoing, including to the extent practicable the provisions providing for the repurchase rights set forth in Article III hereof. 
 The Company shall cause notice of the execution of such supplemental indenture to be mailed to each Holder, at the address of such Holder as it appears
on the register of the Securities maintained by the Registrar, within 20 days after execution thereof. Failure to deliver such notice shall not affect the legality or validity of such supplemental indenture. 
 The above provisions of this Section 10.4 shall similarly apply to successive reclassifications, mergers, consolidations, statutory share exchanges,
combinations, sales and conveyances. 
 If this Section 10.4 applies to any event or occurrence, Section 10.3 shall not apply.

 Section 10.5 Notice of Adjustment. 
 Whenever an adjustment in the Conversion Price with respect to the Securities is required: 
 (1) the Company shall forthwith place on file with the Trustee and any Conversion Agent for such securities a certificate of the Treasurer of the Company, stating the adjusted Conversion Price determined as provided herein and setting forth
in reasonable detail such facts as shall be necessary to show the reason for and the manner of computing such adjustment; and 
 (2) a notice stating that the Conversion Price has been adjusted and setting forth the adjusted Conversion Price shall forthwith be given by the Company or, at the Company’s request, by the Trustee in the name and at the expense of the
Company, to each Holder in the manner provided in Section 11.2. Any notice so given shall be conclusively presumed to have been duly given, whether or not the Holder receives such notice. 
 Section 10.6 Notice in Certain Events. 
 In case: 
 (1) of a consolidation or merger to which the Company is a party and for which
approval of any stockholders of the Company is required, or of the sale or conveyance to another Person or entity or group of Persons or entities acting in concert as a partnership, limited partnership, syndicate or other group (within the meaning
of Rule 13d-3 under the Securities Exchange Act of 1934, as amended) of all or substantially all of the property and assets of the Company; or 
 (2) of the voluntary or involuntary dissolution, liquidation or winding up of the Company; or 
 (3) of any action triggering an adjustment of the Conversion Price referred to in clauses (x) or (y) below; 
  

 59 

 then, in each case, the Company shall cause to be filed with the Trustee and the Conversion Agent, and shall cause to be
given, to the Holders of the Securities in the manner provided in Section 11.2, at least 15 days prior to the applicable date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of any
distribution or grant of rights or warrants triggering an adjustment to the Conversion Price pursuant to this Article X, or, if a record is not to be taken, the date as of which the holders of record of Common Stock entitled to such distribution,
rights or warrants are to be determined, or (y) the date on which any reclassification, consolidation, merger, sale, conveyance, dissolution, liquidation or winding up triggering an adjustment to the Conversion Price pursuant to this Article X
is expected to become effective, and the date as of which it is expected that holders of Common Stock of record shall be entitled to exchange their Common Stock for securities or other property deliverable upon such reclassification, consolidation,
merger sale, conveyance, dissolution, liquidation or winding up. 
 Failure to give such notice or any defect therein shall not affect the
legality or validity of the proceedings described in clause (1), (2) or (3) of this Section 10.6. 
 Section 10.7 Company To Reserve Stock: Registration; Listing. 
 (a) The Company shall, in accordance with the laws
of the State of Delaware, at all times reserve and keep available, free from preemptive rights, out of its authorized but unissued shares of Common Stock, for the purpose of effecting the conversion of the Securities, such number of its duly
authorized shares of Common Stock as shall from time to time be sufficient to effect the conversion of all Securities then Outstanding into such Common Stock at any time (assuming that, at the time of the computation of such number of shares or
securities, all such Securities would be held by a single Holder); provided, however, that nothing contained herein shall preclude the Company from satisfying its obligations in respect of the conversion of the Securities by delivery
of purchased shares of Common Stock which are then held in the treasury of the Company. The Company covenants that all shares of Common Stock which may be issued upon conversion of Securities will upon issue be fully paid and nonassessable and free
from all liens and charges and, except as provided in Section 10.8, taxes with respect to the issue thereof. 
 (b) If any shares of
Common Stock which would be issuable upon conversion of Securities hereunder require registration with or approval of any governmental authority before such shares or securities may be issued upon such conversion, the Company will in good faith and
as expeditiously as possible endeavor to cause such shares or securities to be duly registered or approved, as the case may be. The Company further covenants that so long as the Common Stock shall be listed on the New York Stock Exchange, the
Company will, if permitted by the rules of such exchange, list and keep listed all Common Stock issuable upon conversion of the Securities, and the Company will endeavor to list the shares of Common Stock required to be delivered upon conversion of
the Securities prior to such delivery upon any other national securities exchange upon which the outstanding Common Stock is listed at the time of such delivery. 
  

 60 

 Section 10.8 Taxes on Conversion. 
 The issue of stock certificates on conversion of Securities shall be made without charge to the converting Holder for any documentary, stamp or similar
issue or transfer taxes in respect of the issue thereof, and the Company shall pay any and all documentary, stamp or similar issue or transfer taxes that may be payable in respect of the issue or delivery of shares of Common Stock on conversion of
Securities pursuant hereto. The Company shall not, however, be required to pay any such tax which may be payable in respect of any transfer involved in the issue or delivery of shares of Common Stock or the portion, if any, of the Securities which
are not so converted in a name other than that in which the Securities so converted were registered, and no such issue or delivery shall be made unless and until the Person requesting such issue has paid to the Company the amount of such tax or has
established to the satisfaction of the Company that such tax has been paid. 
 Section 10.9 Conversion After Record Date.

 Except as provided below, if any Securities are surrendered for conversion on any day other than an Interest Payment Date, the Holder of
such Securities shall not be entitled to receive any interest that has accrued on such Securities since the prior Interest Payment Date. By delivery to the Holder of the number of shares of Common Stock or other consideration issuable upon
conversion in accordance with this Article X, any accrued and unpaid interest on such Securities will be deemed to have been paid in full. 
 If any Securities are surrendered for conversion subsequent to the Record Date preceding an Interest Payment Date but on or prior to such Interest Payment Date, the Holder of such Securities at the close of business on such Record Date
shall receive the interest payable on such Securities on such Interest Payment Date notwithstanding the conversion thereof. Securities surrendered for conversion during the period from the close of business on any Record Date preceding any Interest
Payment Date to the opening of business on such Interest Payment Date shall (except in the case of Securities which have been called for redemption on a Redemption Date within such period) be accompanied by payment by Holders, for the account of the
Company, in New York Clearing House funds or other funds of an amount equal to the interest payable on such Interest Payment Date on the Securities being surrendered for conversion. Except as provided in this Section 10.9, no adjustments in
respect of payments of interest on Securities surrendered for conversion or any dividends or distributions or interest on the Common Stock issued upon conversion shall be made upon the conversion of any Securities. 
 Section 10.10 Company Determination Final. 
 Any determination that the Company or the Board of Directors must make pursuant to this Article X shall be conclusive if made in good faith and in accordance with the provisions of this Article, absent manifest error,
and set forth in a Board Resolution. 
 Section 10.11 Responsibility of Trustee for Conversion Provisions. 
 The Trustee has no duty to determine when an adjustment under this Article X should be made, how it should be made or what it should be. The Trustee makes
no representation as to the validity or value of any securities or assets issued upon conversion of 
  

 61 

 Securities. The Trustee shall not be responsible for any failure of the Company to comply with this Article X. Each
Conversion Agent other than the Company shall have the same protection under this Section 10.11 as the Trustee. 
 The rights,
privileges, protections, immunities and benefits given to the Trustee under the Indenture including, without limitation, its rights to be indemnified, are extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder, and
each Paying Agent or Conversion Agent acting hereunder. 
 Section 10.12 Unconditional Right of Holders to Convert.

 Notwithstanding any other provision in this Indenture, the Holder of any Security shall have the right, which is absolute and
unconditional, to convert its Security in accordance with this Article X and to bring an action for the enforcement of any such right to convert, and such rights shall not be impaired or affected without the consent of such Holder. 
 ARTICLE XI 
 MISCELLANEOUS

 Section 11.1 Trust Indenture Act Controls. If any provision of this Indenture limits, qualifies, or conflicts with another
provision which is required to be included in this Indenture by the TIA, the required provision shall control. 
 Section 11.2
Notices. Any request, demand, authorization, notice, waiver, consent or communication shall be in writing and delivered in person or mailed by first-class mail, postage prepaid, addressed as follows or transmitted by facsimile transmission
(confirmed by guaranteed overnight courier) to the following facsimile numbers: 
 if to the Company: 
 The PMI Group, Inc. 
 3003 Oak Road

 Walnut Creek, CA 94597 
 Attn:
General Counsel and Secretary 
 Facsimile No. (925) 658-6175 
 if to the Trustee: 
 The Bank of New York
Trust Company, N.A. 
 700 South Flower Street, Suite 500 
 Los Angeles, California 90017 
 Facsimile No. (213) 630-6210 
 Attention: Corporate Trust Administration 
 The Company or the Trustee by notice given to the other in the manner provided above may designate additional or different addresses for subsequent notices or communications. 
  

 62 

 Any notice or communication given to a Securityholder shall be mailed to the Securityholder, by
first-class mail, postage prepaid, at the Securityholder’s address as it appears on the registration books of the Registrar and shall be sufficiently given if so mailed within the time prescribed. 
 Failure to mail a notice or communication to a Securityholder or any defect in it shall not affect its sufficiency with respect to other Securityholders.
If a notice or communication is mailed in the manner provided above, it is duly given, whether or not received by the addressee. 
 If the
Company mails a notice or communication to the Securityholders, it shall mail a copy to the Trustee and each Registrar, Paying Agent, Conversion Agent or co-registrar. 
 Section 11.3 Communication by Holders with Other Holders. Securityholders may communicate pursuant to TIA Section 312(b) with other Securityholders with respect to their rights under this Indenture or
the Securities. The Company, the Trustee, the Registrar, the Paying Agent, the Conversion Agent and anyone else shall have the protection of TIA Section 312(c). 
 Section 11.4 Certificate and Opinion as to Conditions Precedent. Upon any request or application by the Company to the Trustee to take any action under this Indenture, the Company shall furnish to the
Trustee: 
 (1) an Officers’ Certificate stating that, in the opinion of the signers, all conditions precedent, if any, provided for in
this Indenture relating to the proposed action have been complied with; and 
 (2) an Opinion of Counsel stating that, in the opinion of such
counsel, all such conditions precedent have been complied with. 
 Section 11.5 Statements Required in Certificate or Opinion.
Each Officers’ Certificate or Opinion of Counsel with respect to compliance with a covenant or condition provided for in this Indenture shall include: 
 (1) a statement that each person making such Officers’ Certificate or Opinion of Counsel has read such covenant or condition; 
 (2) a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such Officers’ Certificate or Opinion of Counsel are based; 
 (3) a statement that, in the opinion of each such person, he has made such examination or investigation as is necessary to enable such person to express
an informed opinion as to whether or not such covenant or condition has been complied with; and 
 (4) a statement that, in the opinion of
such person, such covenant or condition has been complied with. 
  

 63 

 Section 11.6 Separability Clause. In case any provision in this Indenture or in the Securities
shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 
 Section 11.7 Rules by Trustee, Paying Agent, Conversion Agent and Registrar. The Trustee may make reasonable rules for action by or a meeting of Securityholders. The Registrar, the Conversion Agent and the
Paying Agent may make reasonable rules for their functions. 
 Section 11.8 Legal Holidays. A “Legal Holiday”
is any day other than a Business Day. If any specified date (including a date for giving notice) is a Legal Holiday, the action shall be taken on the next succeeding day that is not a Legal Holiday, and, if the action to be taken on such date is a
payment in respect of the Securities, no interest, if any, shall accrue for the intervening period. 
 Section 11.9 GOVERNING LAW.
THIS INDENTURE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 
 Section 11.10 No Recourse
Against Others. A director, officer, employee or stockholder, as such, of the Company shall not have any liability for any obligations of the Company under the Securities or this Indenture or for any claim based on, in respect of or by reason of
such obligations or their creation. By accepting a Security, each Securityholder shall waive and release all such liability. The waiver and release shall be part of the consideration for the issue of the Securities. 
 Section 11.11 Successors. All agreements of the Company in this Indenture and the Securities shall bind its successor. All agreements of the
Trustee in this Indenture shall bind its successor. 
 Section 11.12 Multiple Originals. The parties may sign any number of copies of
this Indenture. Each signed copy shall be an original, but all of them together represent the same agreement. One signed copy is enough to prove this Indenture. 
  

 64 

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

			
	THE PMI GROUP, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	 THE BANK OF NEW YORK TRUST COMPANY, N.A.
 As Trustee

		
	By:	 	  

	Name:	 	
	Title:	 	

  

 65 

 EXHIBIT A 
 [FORM OF FACE OF GLOBAL SECURITY] 
 UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
 TRANSFERS OF THIS
GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS TO NOMINEES OF THE DEPOSITORY TRUST COMPANY, OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE
WITH THE RESTRICTIONS SET FORTH IN ARTICLE TWO OF THE INDENTURE REFERRED TO ON THE REVERSE HEREOF. 
 PURSUANT TO SECTION 4.7 OF THE
INDENTURE, THE PMI GROUP, INC. AGREES, AND BY ACCEPTANCE OF A BENEFICIAL OWNERSHIP INTEREST IN THE SECURITY, EACH BENEFICIAL HOLDER OF THE SECURITIES WILL BE DEEMED TO HAVE AGREED, FOR U.S. FEDERAL INCOME TAX PURPOSES, TO TREAT THE SECURITIES AS
INDEBTEDNESS THAT IS SUBJECT TO SECTION 1.1275-4 OF THE U.S. TREASURY REGULATIONS (THE “CONTINGENT PAYMENT DEBT REGULATIONS”). YOU MAY OBTAIN THE AMOUNT OF ORIGINAL ISSUE DISCOUNT, ISSUE DATE, YIELD TO MATURITY, COMPARABLE YIELD AND
PROJECTED PAYMENT SCHEDULE FOR THE SECURITY BY TELEPHONING THE PMI GROUP, INC. INVESTOR RELATIONS DEPARTMENT AT (925) 658-7878 OR SUBMITTING A WRITTEN REQUEST FOR SUCH INFORMATION TO: THE PMI GROUP, INC., 3003 OAK ROAD, WALNUT CREEK, CALIFORNIA
94597, ATTENTION: INVESTOR RELATIONS DEPARTMENT. 

 THE PMI GROUP, INC. 
 2.50% Senior Convertible Debentures due 2021 
  

			
	No.	  	CUSIP:
		
	Issue Date:                     , 2006	  	Principal Amount: $                    

 THE PMI GROUP, INC., a Delaware corporation, promises to pay to Cede & Co. or registered
assigns, the principal amount of
                                        
dollars ($                    ) on July 15, 2021. 
 Interest Payment Dates: January 15 and July 15, commencing January 15, 2007. 
 Record Dates: January 1 and
July 1. 
 Reference is hereby made to the further provisions of this Security set forth on the reverse side of this Security, which further
provisions shall for all purposes have the same effect as if set forth at this place. 
 IN WITNESS WHEREOF, the Company has caused this
instrument to be duly executed. 
  

					
	 Dated:                     ,
2006
	 	THE PMI GROUP, INC.
			
		 	By:	 	  

			
		 	Title:	 	  

  

			
	 TRUSTEE’S CERTIFICATE OF AUTHENTICATION
  
 THE BANK OF NEW YORK TRUST COMPANY, N.A.,
 as Trustee, certifies that this is one of the
Securities referred to in the within-mentioned Indenture.

		
	 By
	 	  

		 	Authorized Signatory
	
	Dated:                     , 2006

  

 A – 2 

 [FORM OF REVERSE OF GLOBAL SECURITY] 
 2.50% Senior Convertible Debentures due 2021 
 This Security is one of a duly
authorized issue of 2.50% Senior Convertible Debentures due 2021 (the “Securities”) of the PMI Group, Inc., a Delaware corporation (including any successor corporation under the Indenture hereinafter referred to, the “Company”),
issued under an Indenture, dated as of                     , 2006 (the “Indenture”), between the Company and The Bank of New York Trust
Company, N.A., as trustee (the “Trustee”). The terms of the Security include those stated in the Indenture, those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended (“TIA”), and those set forth
in this Security. This Security is subject to all such terms, and Holders are referred to the Indenture and the TIA for a statement of all such terms. To the extent permitted by applicable law, in the event of any inconsistency between the terms of
this Security and the terms of the Indenture, the terms of the Indenture shall control. Capitalized terms used but not defined herein have the meanings assigned to them in the Indenture referred to below unless otherwise indicated. 
 1. Interest 
 General. The Company promises to
pay Interest on the principal amount of the Securities plus accrued and unpaid interest, if any, including contingent interest and additional interest, if any, at the interest rate specified herein (the “Interest Rate”) from the date of
issuance until repayment in full at July 15, 2021, redemption or purchase. The Company will pay Interest on this Security semi-annually in arrears on January 15 and July 15 of each year (each, an “interest payment date”), commencing
January 15, 2007. 
 (a) The Securities shall bear interest from July 15, 2006 until the principal amount thereof is paid or made available
for payment, or until such date on which the Securities are converted, redeemed or purchased as provided herein at a rate of 2.50% per annum. 
 (b) Interest on the Securities shall be computed (i) for any full semi-annual period for which a particular Interest Rate is applicable, on the basis of a 360-day year of twelve 30-day months and (ii) for any period for which a particular
Interest Rate is applicable for less than a full semiannual period for which Interest is calculated, on the basis of a 30-day month and, for such periods of less than a month, the actual number of days elapsed over a 30-day month. For purposes of
determining the Interest Rate, the Trustee may assume that the Trading Price Condition has not been satisfied and that Reset Rate is not in effect unless the Trustee has received an Officers’ Certificate stating that the Trading Price Condition
has been satisfied and specifying the Reset Rate then in effect. 
 (c) The Interest Rate on this Security will increase to the Reset Rate
for any semi-annual period commencing on July 15, 2008, July 15, 2011 or July 15, 2016, each of which shall be referred to as a “Reset Rate Determination Date”, if the Trading Price Condition for that semi-annual period is satisfied. The
“Trading Price Condition” shall be satisfied for any semi-annual period if the Sale Price of the Common Stock for any 20 out of the last 30 Trading Days ending 
  

 A – 3 

 five days prior to the first day of such semi- annual period is less than or equal to 60% of the Conversion Price of the
Security in effect for each of those 20 Trading Days. Such interest payable at the Reset Rate is sometimes referred to herein as “contingent interest.” 
 Following an increase to the Reset Rate, the Interest Rate on the Security will remain at the Reset Rate unless and until the first day of a subsequent semi-annual period for which the Trading Price Condition is not
satisfied, at which time the Interest Rate on the Security will revert to 2.50% per annum and will remain at such rate unless and until the Trading Price Condition is satisfied for a semi-annual period commencing on a subsequent Reset Rate
Determination Date. 
 If the Reset Rate is in effect for a particular semi-annual period, the Company will pay a portion of any increase
represented by the change to the Reset Rate as cash interest at an annualized rate of 0.35% per annum (0.175% per semi-annual period) and any remaining increase in interest will be added to the principal amount of the Security (but which will
not affect the Conversion Price or Conversion Rate of the Security) and will be accrued and payable at maturity and upon any purchase by the Company at the option of the Holder or upon any optional redemption by the Company. Interest, additional
interest and contingent interest will accrue on any such remaining increase in interest and will be payable at such times as interest, additional interest and contingent interest is otherwise payable. 
 The “Reset Rate” determined as of each Reset Rate Determination Date will be equal to 75% of the rate that would, in the sole judgment of the
Reset Rate Agent, result in a trading price of par of a hypothetical issue of senior, nonconvertible, noncontingent, fixed-rate debt securities of the Company with (i) a final maturity comparable to the Security; (ii) an aggregate
principal amount equal to the aggregate principal amount of all Securities then outstanding; and (iii) covenants and other provisions that are, insofar as would be practicable for an issue of senior, nonconvertible, non-contingent fixed-rate
debt security, substantially identical to those of this Security, but which are not subject to repurchase by the Company at the option of the Holder. In no case, however, will the Reset Rate ever be greater than 12% or less than 2.85%. Also, if the
Reset Rate Agent has not established the Reset Rate for the applicable semi-annual period, or if the Reset Rate Agent determines in its sole judgment that there is no suitable reference rate from which the Reset Rate may by determined, the Reset
Rate for that period will be the Reset Rate most recently determined (except if there is no Reset Rate most recently determined, in which case the Reset Rate shall be a rate mutually agreed upon by the Reset Rate Agent and the Company reflecting
current market conditions), and such Reset Rate shall remain in effect until the Reset Rate Agent shall determine a new Reset Rate. 
 The
Company will appoint a Reset Rate Agent. For the determination of the Reset Rate, the Reset Rate Agent will seek indicative reference rates from three nationally-recognized investment banks, and the Reset Rate shall be the average of such three
indicative reference rates, provided that if at least three such indicative reference rates cannot reasonably be obtained by the Reset Rate Agent, but two such indicative reference rates are obtained, then the average of the two indicative reference
rates shall be used, and if only one such indicative reference rate can reasonably be obtained by the Reset Rate Agent, this one indicative reference rate shall be used. The determination of any Reset Rate will be conclusive and binding upon the
Reset Rate Agent, the Company, the Trustee and the Holders of the Security, in the absence of manifest error. The Company may remove the Reset Rate Agent and appoint a successor Reset Rate Agent at any time. 
  

 A – 4 

 The “sale price” of the Common Stock on any date means the closing per share sale price (or if
no closing sale price is reported, the average of the bid and ask prices or, if more than one in either case, the average of the average bid and the average ask prices) on that date as reported on the New York Stock Exchange or, if the Common Stock
is not listed on the New York Stock Exchange, on the principal other national or regional securities exchange on which the Common Stock is then listed or, if the Common Stock is not listed on a national or regional securities exchange, then as
reported by the Nasdaq system. 
 In the event contingent interest is payable, the Company will disseminate a press release through Bloomberg
Business News or the Dow Jones News Service containing this information or publish the information on the Company’s Web site or through such other public medium as the Company may use at that time. 
 (d) If this Security is redeemed or the Holder elects to require the Company to purchase this Security pursuant to Section 6 of this Security, on a
date that is after the record date and prior to the corresponding interest payment date, interest, including contingent interest, if any, accrued and unpaid hereon to but not including the applicable Redemption Date, Purchase Date or Change of
Control Purchase Date as the case may be will be paid to the same Holder to whom the Company pays the principal of this Security. 
 Interest
on Securities converted after a record date but prior to the corresponding interest payment date will be paid to the Holder of the Securities on the record date but, upon conversion, the Holder must pay the Company the interest, including contingent
interest, which has accrued and will be paid on such interest payment date. No such payment need be made with respect to Securities which will be redeemed after a record date and prior to the corresponding interest payment date. 
 If the principal amount hereof or any portion of such principal amount or any interest, including contingent interest and additional interest, if any, on
any Security is not paid when due (whether upon acceleration pursuant to Section 6.2 of the Indenture, upon the date set for payment of the Redemption Price pursuant to Section 5 hereof or the Purchase Price or Change of Control Purchase
Price pursuant to Section 6 hereof or upon the Stated Maturity of this Security), then in each such case the overdue amount shall, to the extent permitted by law, bear interest at the applicable Interest Rate, compounded semi-annually, which
interest shall accrue from the date of such overdue amount was originally due to the date of payment of such amount, including interest thereon, has been made or duly provided for. All such interest shall be payable on demand. 
 2. Method of Payment. 
 Except as provided below,
interest will be paid (i) on the Global Securities to DTC in immediately available funds, (ii) on any definitive Securities having an aggregate principal amount of $5,000,000 or less, by check mailed to the Holders of such Securities; and
(iii) on any definitive Securities having an aggregate principal amount of more than $5,000,000, by wire transfer in immediately available funds at the election of the Holders of these Securities. 
  

 A – 5 

 At Stated Maturity the Company will pay interest on definitive Securities at the Company’s office or
agency in New York City, which initially will be the Corporate Trust Office of the trustee in New York City. 
 Principal on definitive
Securities will be payable, upon Stated Maturity or when due, at the office or agency of the Company in New York City, maintained for such purpose, initially the Corporate Trust Office of the Trustee in New York City. 
 Subject to the terms and conditions of the Indenture, the Company will make payments in cash, shares of Common Stock or a combination thereof, as the
case may be, in respect of Redemption Prices, Purchase Prices, Change of Control Purchase Prices and at Stated Maturity to Holders who surrender Securities to a Paying Agent to collect such payments in respect of the Securities. The Company will pay
cash amounts in money of the United States that at the time of payment is legal tender for payment of public and private debts. However, the Company may make such cash payments by check payable in such money. 
 3. Paying Agent, Conversion Agent and Registrar. 
 Initially, The Bank of New York Trust Company, N.A. (the “Trustee”) will act as Paying Agent, Conversion Agent and Registrar. The Company may appoint and change any Paying Agent, Conversion Agent or Registrar without notice, other
than notice to the Trustee; provided that the Company will maintain at least one Paying Agent in the State of New York, City of New York, Borough of Manhattan, which shall initially be an office or agency of the Trustee or an affiliate of the
Trustee. The Company or any of its Subsidiaries or any of their Affiliates may act as Paying Agent, Conversion Agent or Registrar. 
 4. Indenture.

 The Securities are general unsecured obligations of the Company limited to aggregate principal amount. The Indenture does not limit other
indebtedness of the Company, secured or unsecured. 
 5. Redemption at the Option of the Company. 
 No sinking fund is provided for the Securities. The Securities are redeemable for cash at the option of the Company, in whole or in part, at any time or
from time to time, upon not less than 30 nor more than 60 days’ notice by mail for a redemption price equal to the principal amount of those Securities plus accrued and unpaid interest, including contingent interest and additional interest, if
any, up to the Redemption Date (the “Redemption Price”). 
 6. Purchase By the Company at the Option of the Holder. 
 Subject to the terms and conditions of the Indenture, the Company shall become obligated to purchase, at the option of the Holder, all or any portion of
the Securities held by such Holder on July 15, 2008, July 15, 2011 and July 15, 2016 in integral multiples of $1,000 at 
  

 A – 6 

 a Purchase Price equal to the principal amount of those Securities plus accrued and unpaid interest, including contingent
interest and additional interest, if any, of such Security on the Purchase Date. To exercise such right, a Holder shall deliver to the Company a Purchase Notice containing the information set forth in the Indenture, at any time from the opening of
business on the date that is 20 Business Days prior to such Purchase Date until the close of business on the third Business Day prior to such Purchase Date, and shall deliver the Securities to the Paying Agent as set forth in the Indenture. The
Purchase Price shall be paid in cash. 
 At the option of the Holder and subject to the terms and conditions of the Indenture, the Company
shall become obligated to offer to purchase the Securities held by such Holder within 30 days (which purchase shall occur 30 days after the date of such offer) after the occurrence of a Change of Control of the Company for a Change of Control
Purchase Price equal to the principal amount plus accrued and unpaid interest, including contingent interest and additional interest, if any, of such Security on the Change of Control Purchase Date. The Change of Control Purchase Price shall be paid
in cash. 
 Holders have the right to withdraw any Purchase Notice or Change of Control Purchase Notice, as the case may be, by delivering to
the Paying Agent a written notice of withdrawal in accordance with the provisions of the Indenture. 
 If cash sufficient to pay the Purchase
Price or Change of Control Purchase Price, as the case may be, of all Securities or portions thereof to be purchased as of the Purchase Date or the Change of Control Purchase Date, as the case may be, is deposited with the Paying Agent on the
Business Day following the Purchase Date or the Change of Control Purchase Date, interest will cease to accrue on such Securities (or portions thereof) immediately after such Purchase Date or Change of Control Purchase Date, and the Holder thereof
shall have no other rights as such other than the right to receive the Purchase Price or Change of Control Purchase Price upon surrender of such Security. 
 7. Notice of Redemption. 
 Notice of redemption pursuant to Section 5 of this Security will be mailed at least 30 days
but not more than 60 days before the Redemption Date to each Holder of Securities to be redeemed at the Holder’s registered address. If money sufficient to pay the Redemption Price of all Securities (or portions thereof) to be redeemed on the
Redemption Date is deposited with the Paying Agent prior to or on the Redemption Date, immediately after such Redemption Date interest ceases to accrue on such Securities or portions thereof. Securities in denominations larger than $1,000 of
principal amount may be redeemed in part but only in integral multiples of $1,000 of principal amount. 
 8. Conversion. 
 Subject to and in compliance with the provisions of the Indenture (including, without limitation, the conditions to conversion of this Security set forth
in Section 10.1 thereof), a Holder is entitled, at such Holder’s option, to convert the Holder’s Security (or any portion of the principal amount thereof that is $1,000 or an integral multiple $1,000), cash and, if applicable, fully
paid and nonassessable shares of Common Stock at the Conversion Price in 
  

 A – 7 

 effect on the Conversion Date. The Security will be converted into (i) cash in an amount (the “Cash
Amount”) equal to the lesser of (w) the principal amount of the Security and (x) the Conversion Value of the Security and (ii) if the Conversion Value of the Security is greater than the Cash Amount, then a number of shares of
Common Stock (the “Net Shares”, and together with the Cash Amount, the “Settlement Amount”) equal to the greater of (x) zero and (y) the sum of the Daily Share Amounts for each of the ten consecutive Trading Days in the Cash
Settlement Period. The “Daily Share Amount” for each day in the Cash Settlement Period is equal to the quotient of (A) .10 multiplied by the difference between (I) the product of the then-current Conversion Rate multiplied by the
Sale Price of the Common Stock on such Trading Day and (II) $1,000 divided by (B) the Sale Price of the Common Stock on such Trading Day. 
 “Conversion Value”, on any day, means the product of (x) the average of the Sale Prices of the Common Stock for the Trading Days during the Cash Settlement Period multiplied by (y) the then-current Conversion Rate.

 “Cash Settlement Period” means, with respect to any Securities, the ten consecutive Trading Days beginning on the second Trading
Day after the Conversion Date. 
 The “Conversion Rate”, at any time, shall equal (A) $1,000 divided by (B) the
Conversion Price at such time, rounded to three decimal places (rounded up if the fourth decimal place thereof is 5 or more and otherwise rounded down). 
 The Company will notify Holders of any event triggering the right to convert the Securities as specified above in accordance with the Indenture. 
 A Security in respect of which a Holder has delivered a Purchase Notice or Change of Control Purchase Notice, as the case may be, exercising the option
of such Holder to require the Company to purchase such Security may be converted only if such Purchase Notice or Change of Control Purchase Notice, as the case may be, is withdrawn in accordance with the terms of the Indenture. 
 The initial Conversion Price is $44.155, subject to adjustment in certain events described in the Indenture. 
 To surrender a Security for conversion, a Holder must (1) complete and manually sign the conversion notice below (or complete and manually sign a
facsimile of such notice) and deliver such notice to the Conversion Agent, (2) surrender the Security to the Conversion Agent, (3) furnish appropriate endorsements and transfer documents and (4) pay any transfer or similar tax, if
required. 
 No fractional shares of Common Stock shall be issued upon conversion of any Security. Instead of any fractional share of Common
Stock that would otherwise be issued upon conversion of such Security, the Company shall pay a cash adjustment as provided in the Indenture. 
 No payment or adjustment will be made for dividends on the shares of Common Stock, except as provided in the Indenture. 
  

 A – 8 

 If the Company (i) is a party to a consolidation, merger or binding share exchange
(ii) reclassifies the Common Stock or (iii) conveys, transfers or leases its properties and assets substantially as an entirety to any Person, the right to convert a Security into shares of Common Stock may be changed into a right to
convert it into securities, cash or other assets of the Company or such other Person, in each case in accordance with the Indenture. 
 9. Conversion
Arrangement on Call for Redemption. 
 Any Securities called for redemption, unless surrendered for conversion before the close of
business on the day that is two Business Days prior to the Redemption Date, may be deemed to be purchased from the Holders of such Securities at an amount not less than the Redemption Price, by one or more investment bankers or other purchasers who
may agree with the Company to purchase such Securities from the Holders, to convert them into shares of Common Stock and to make payment for such Securities to the Trustee in trust for such Holders. 
 10. Denominations; Transfer; Exchange. 
 The
Securities are in fully registered form, without coupons, in denominations of $1,000 of principal amount and integral multiples of $1,000. A Holder may transfer or exchange Securities in accordance with the Indenture. The Registrar may require a
Holder, among other things, to furnish appropriate endorsements and transfer documents and to pay any taxes and fees required by law or permitted by the Indenture. The Registrar need not transfer or exchange any Securities selected for redemption
(except, in the case of a Security to be redeemed in part, the portion of the Security not to be redeemed) or any Securities in respect of which a Purchase Notice or Change of Control Purchase Notice has been given and not withdrawn (except, in the
case of a Security to be purchased in part, the portion of the Security not to be purchased) or any Securities for a period of 15 days before the mailing of a notice of redemption of Securities to be redeemed. 
 11. Persons Deemed Owners. 
 The registered Holder of
this Security may be treated as the owner of this Security for all purposes. 
 12. Unclaimed Money or Securities. 
 The Trustee and the Paying Agent shall return to the Company upon written request any money or securities held by them for the payment of any amount with
respect to the Securities that remains unclaimed for two years, subject to applicable unclaimed property law. After return to the Company, Holders entitled to the money or securities must look to the Company for payment as general creditors unless
an applicable abandoned property law designates another person. 
 13. Amendment; Waiver. 
 Subject to certain exceptions set forth in the Indenture, (i) the Indenture or the Securities may be amended with the written consent of the Holders
of at least a majority in aggregate principal amount of the outstanding Securities and (ii) certain Defaults may be waived 
  

 A – 9 

 with the written consent of the Holders of a majority in aggregate principal amount of the outstanding Securities.
Subject to certain exceptions set forth in the Indenture, without the consent of any Securityholder, the Company and the Trustee may amend the Indenture or the Securities (i) to add to the covenants of the Company for the benefit of the Holders
of Securities, (ii) to surrender any right or power conferred upon the Company in the Indenture, (iii) to provide for conversion rights of Holders of Securities if any reclassification or change of the Company’s Common Stock or any
consolidation, merger or sale of all or substantially all of the Company’s assets occurs, (iv) to provide for the assumption of the Company’s obligations to the Holders of Securities in the case of a merger, consolidation, conveyance,
transfer or lease pursuant to Article V of the Indenture, (v) to reduce the Conversion Price; provided, however, that such reduction in the Conversion Price shall not adversely affect the interests of the Holders of Securities (after
taking into account tax and other consequences of such reduction), (vi) to comply with the requirements of the SEC in order to effect or maintain the qualification of the Indenture under the TIA, (vii) to cure any ambiguity, to correct or
supplement any provision in the Indenture which may be inconsistent with any other provision therein or which is otherwise defective, or to make any other provisions with respect to matters or questions arising under the Indenture which the Company
may deem necessary or desirable and which shall not be inconsistent with the provisions of the Indenture; provided, however, that such action pursuant to this clause does not, in the good faith opinion of the Board of Directors of the Company
(as evidenced by a Board Resolution) and the Trustee, adversely affect the interests of the Holders of Securities in any material respect, and (viii) to add or modify any other provisions in the Indenture with respect to matters or questions
arising hereunder which the Company and the Trustee may deem necessary or desirable and which will not adversely affect the interests of the Holders of Securities. 
 14. Defaults and Remedies. 
 If any Event of Default with respect to Securities shall occur and be continuing, the principal
of all the Securities may be declared due and payable in the manner and with the effect provided in the Indenture. 
 15. Trustee Dealings with the
Company. 
 Subject to certain limitations imposed by the TIA, the Trustee under the Indenture, in its individual or any other capacity,
may become the owner or pledgee of Securities and may otherwise deal with and collect obligations owed to it by the Company or its Affiliates and may otherwise deal with the Company or its Affiliates with the same rights it would have if it were not
Trustee. 
 16. Calculations in Respect of Securities. 
 The Company or its agents will be responsible for making all calculations called for under the Securities including, but not limited to, determination of the market prices for the Securities and of the Common Stock
and the amounts of interest and contingent payments, if any, on the Securities. Any calculations made in good faith and without manifest error will be final and binding on Holders of the Securities. The Company or its agents will be required to
deliver to the Trustee a schedule of its calculations and the Trustee will be entitled to conclusively rely upon the accuracy of such calculations without independent verification. 
  

 A – 10 

 17. No Recourse Against Others. 
 A director, officer, employee or shareholder, as such, of the Company shall not have any liability for any obligations of the Company under the Securities or the Indenture or for any claim based on, in respect of or
by reason of such obligations or their creation. By accepting a Security, each Securityholder waives and releases all such liability. The waiver and release are part of the consideration for the issue of the Securities. 
 18. Authentication. 
 This Security shall not be valid
until an authorized signatory of the Trustee manually signs the Trustee’s Certificate of Authentication on the other side of this Security. 
 19.
Abbreviations. 
 Customary abbreviations may be used in the name of a Securityholder or an assignee, such as TEN COM (=tenants in
common), TEN ENT (=tenants by the entireties), JT TEN (=joint tenants with right of survivorship and not as tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gift to Minors Act). 
 20. GOVERNING LAW. 
 THE LAWS OF THE STATE OF NEW YORK
SHALL GOVERN THE INDENTURE AND THIS SECURITY. 
 The Company will furnish to any Securityholder upon written request and without charge a
copy of the Indenture which has in it the text of this Security in larger type. Requests may be made to: 
 THE PMI GROUP, INC. 

3003 Oak Road 
 Walnut Creek, California
94597 
 Attn: General Counsel and Secretary 
 Facsimile No. (925) 658-6175 
  

 A – 11 

					
	 ASSIGNMENT FORM
	  	  	  	 CONVERSION NOTICE

	To assign this Security, fill in the form below:	  		  	To convert this Security into Common Stock of the Company, check the box  ̈
			
	 I or we assign and transfer this Security to
  
                                       
                                        
  
                                       
                                        
  
 (Insert assignee’s soc. sec. or tax ID no.)
  
                                       
                                        
  
                                       
                                        
  
                                       
                                        
  
 (Print or type assignee’s name, address and zip code)
  

and irrevocably appoint
  
                                       
               agent to transfer this Security on the books of the Company. The agent may substitute another to act for him.
	  		  	 To convert only part of this Security, state the principal amount to be converted (which must be $1,000 or an integral multiple of
$1,000):
  
 If you want the stock certificate made out in another person’s name fill
in the form below:
  
                                       
                                        
  
                                       
                                        
  
 (Insert the other person’s soc. sec. tax ID no.)
  
                                       
                                        
  
                                       
                                        
  
                                       
                                        
  
                                       
                                        
  
                                       
                                        
  
 (Print or type other person’s name, address and zip code)

  

			
	Date:                         	  	Your Signature:
                                        
                                        
    

                                       
                                        
                                        
                                       
 (Sign exactly as your name appears on the other side of this Security) 
 Signature Guaranteed 
                                       
                           
 Participant in a Recognized Signature 
 Guarantee Medallion Program 
  

			
	By:	 	  

		 	Authorized Signatory

  

 A – 12 

 SCHEDULE OF INCREASES AND DECREASES OF GLOBAL SECURITY 
 Initial Principal Amount of Global Security:
                    
($                    ). 
  

									
	 Date
	  	Amount of
Increase in
Principal
Amount of
Global Security	  	Amount of
Decrease in
Principal
Amount of
Global Security	  	Principal
Amount of
Global Security
After Increase or
Decrease	  	Notation by
Registrar or
Security
Custodian
		  		  		  		  	

  

 A – 13 

 EXHIBIT B 
 [FORM OF FACE OF CERTIFICATED SECURITY] 
 PURSUANT TO SECTION 4.7 OF THE INDENTURE, THE PMI GROUP, INC.
AGREES, AND BY ACCEPTANCE OF A BENEFICIAL OWNERSHIP INTEREST IN THE SECURITY, EACH BENEFICIAL HOLDER OF THE SECURITIES WILL BE DEEMED TO HAVE AGREED, FOR U.S. FEDERAL INCOME TAX PURPOSES, TO TREAT THE SECURITIES AS INDEBTEDNESS THAT IS SUBJECT TO
SECTION 1.1275-4 OF THE U.S. TREASURY REGULATIONS (THE “CONTINGENT PAYMENT DEBT REGULATIONS”). YOU MAY OBTAIN THE AMOUNT OF ORIGINAL ISSUE DISCOUNT, ISSUE DATE, YIELD TO MATURITY, COMPARABLE YIELD AND PROJECTED PAYMENT SCHEDULE FOR THE
SECURITY BY TELEPHONING THE PMI GROUP, INC. INVESTOR RELATIONS DEPARTMENT AT (925) 658-7878 OR SUBMITTING A WRITTEN REQUEST FOR SUCH INFORMATION TO: THE PMI GROUP, INC., 3003 OAK ROAD, WALNUT CREEK, CALIFORNIA 94597, ATTENTION: INVESTOR
RELATIONS DEPARTMENT. 

 THE PMI GROUP, INC. 
 2.50% Senior Convertible Debentures due 2021 
  

			
	 No.
 Issue
Date:                    , 2006
 Issue Price:
$1,000
	  	CUSIP:

 THE PMI GROUP, INC., a Delaware corporation, promises to pay to
                        , or registered assigns, the principal amount of
[                    ($ )] on July 15, 2021. 
 Interest Payment Dates: January 15 and July 15, commencing January 15, 2007. 
 Record Dates:
January 1 and July 1. 
 Reference is hereby made to the further provisions of this Security set forth on the reverse side of this
Security, which further provisions shall for all purposes have the same effect as if set forth at this place. 
 IN WITNESS WHEREOF, the
Company has caused this instrument to be duly executed. 
  

					
	Dated:	 	THE PMI GROUP, INC.
			
		 	By:	 	  

		 	Title:	 	

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 
 THE BANK OF NEW YORK TRUST COMPANY, N.A.,  
 as Trustee, certifies that this 
 is one of the Securities referred 
 to in the within-mentioned Indenture.

  

			
	By	 	  

		 	Authorized Signatory

 Dated: 
  

 B-2 

 [FORM OF REVERSE OF CERTIFICATED SECURITY IS IDENTICAL TO EXHIBIT A]Form of Subscription Agreement

 Exhibit 10.10 
 SUBSCRIPTION AGREEMENT 
 THIS SUBSCRIPTION AGREEMENT (this “Agreement”) is
made as of the date set forth on the signature page hereof between Innovive Pharmaceuticals, Inc., a Delaware corporation having a place of business at 555 Madison Avenue, 25th Floor, New York, New York 10022 (the “Company”), and the undersigned (the “Subscriber”). 
 W I T N E S S E T H: 
 WHEREAS, the Company
is offering (the “Offering”) to a limited number of persons who qualify as “accredited investors,” as defined in Rule 501(a) of Regulation D (“Regulation D”) promulgated under the Securities Act of 1933,
as amended (the “Securities Act”), shares (the “Shares”) of its Series A Convertible Preferred Stock, par value $0.001 per share (the “Series A Preferred,” and together with the shares of common
stock, $0.001 par value per share (the “Common Stock”), of the Company issuable upon conversion of the Series A Preferred, the “Securities”) on the terms and conditions described in this Agreement; 
 WHEREAS, the Offering is contingent upon the Company making sales of a number of shares of Preferred Stock which would provide the Company with aggregate
gross proceeds of at least $13,000,000 (the “Minimum Offering Amount”). The Company will sell a maximum number of shares of Series A Preferred Stock which would provide the Company with aggregate gross proceeds of $17,000,000 (the
“Maximum Offering Amount”) with an option in favor of the Company and the Placement Agent (as defined below) to offer additional shares of Series A Preferred Stock which would provide the Company with aggregate gross proceeds of up
to $5,000,000 to cover over-allotments (the “Over-Allotment”). 
 WHEREAS, Paramount BioCapital, Inc.
(“Paramount”) and Punk Ziegel & Company, L.P. are acting as co-exclusive placement agents (together, the “Placement Agents”) for the Offering; and 
 WHEREAS, on the terms and conditions hereinafter set forth, the Subscriber desires to purchase from the Company, and the Company desires to sell to the
Subscriber, a number of Shares. 
 NOW, THEREFORE, in consideration of the promises and the mutual representations and covenants hereinafter
set forth, the parties hereto do hereby agree as follows: 
 1. PURCHASE AND SALE OF SECURITIES. 
 1.1 Offering. The Company is offering the Securities to a limited number of persons who qualify as “accredited investors,” as defined in
Rule 501(a) of Regulation D of the Securities Act, on the terms and conditions described in this Agreement. The Minimum Offering Amount will be offered on an “all or none, best efforts” basis. Additional amounts, including the
Over-Allotment, if exercised, will be offered on a “best efforts” basis. The Subscriber understands, however, that this purchase of the Securities is contingent upon the Company 

 
making aggregate sales equal to or exceeding the “Minimum Offering Amount.” The per Share price shall be equal to $3.96 (the “Purchase
Price”). The minimum number of Shares purchasable by any single investor shall be equal to $100,000 divided by the Purchase Price, subject to the discretion of the Company to accept subscriptions for lesser amounts. 
 1.2 Closing. At each closing (each a “Closing,” and the date thereof, the “Closing Date”), provided the Company
has received the Minimum Offering Amount, the Company shall issue and sell to the Subscriber and the Subscriber shall purchase from the Company, a number of Shares equal to the quotient resulting from dividing (a) the total dollar amount of the
Subscriber’s subscription as set forth on the signature page hereof that is accepted by the Company and the Placement Agents (the “Aggregate Purchase Price” as further defined below) by (b) the Purchase Price (the
“Subscription Amount”), rounded down to the nearest whole share. 
 1.3 Closing Mechanics. The initial Closing shall
be held at a date and time designated by the Company and the Placement Agents prior to 11:59 p.m. Eastern Standard Time on April 30, 2006 (subject to extension at the discretion of the Company and the Placement Agents without notice to the
Subscriber of up to 60 days), which date shall be no later than five (5) Business Days (as defined in Article 5) after satisfaction or waiver of the closing conditions set forth in Article 4 hereof. The Closing shall occur at Paramount’s
offices, located at 787 Seventh Avenue, New York, New York 10019. Upon satisfaction or waiver of all conditions to the Closing, the Placement Agents and the Company shall instruct US Bank Trust National Association, as escrow agent (the
“Escrow Agent”), to release the proceeds of the Offering to the Company, less fees and expenses due to the Placement Agents. Interest, if any, that has accrued with respect to the Aggregate Purchase Price while in escrow shall also
be distributed to the Company at the Closing and the Subscriber will have no right to such interest, even if there is no Closing. 
 1.4
Payment of Aggregate Purchase Price. Upon, or prior to, the execution of this Agreement by the Subscriber, the Subscriber shall deposit the amount of readily available funds equal to the Aggregate Purchase Price in a segregated escrow account
with the Escrow Agent by check or wire transfer of immediately available funds pursuant to the instructions provided below. Subject to the terms and conditions of this Agreement (including, without limitation, the Company’s and the Placement
Agents’ option, each at its sole discretion, to refuse to accept subscriptions, in whole or in part, from any Subscriber), the Subscriber hereby subscribes for and agrees to purchase from the Company such number of Securities and the Company
agrees to sell such number of Securities to the Subscriber as is set forth upon the signature page hereof at the Aggregate Purchase Price as accepted by the Company and the Placement Agents. 
 US Bank Trust National Association 
 ABA Routing Number: 091000022

 US Bank and Trust Corp. Account Number: 180121167365 
 For: Paramount BioCapital & Innovive Pharma 
 SEI Number: 792697000 
 Reference: [Investor Name] 
 Attn:
Andrea Friesen 
  

 2 

 The Subscriber must complete and return a duly executed, unaltered copy of this Agreement (including the completed
Confidential Investor Questionnaire included in Article 7 hereof (the “Confidential Investor Questionnaire”)) to Paramount at its address indicated in the Memorandum (as defined below) on or before the date indicated to the
Subscriber by the Placement Agents to be eligible to participate in the Offering. The Company and the Placement Agents retain complete discretion to accept or reject any subscription unless and until the Company executes a counterpart to this
Agreement that includes such Subscriber’s signature. 
 1.5 Delivery of Certificates. The Company shall deliver, or cause to be
delivered, the certificates representing the Securities purchased by the Subscriber hereunder as soon as practical after the Closing to the Subscriber’s residential or business address indicated on the signature page hereto. 
 2. REPRESENTATIONS AND WARRANTIES OF SUBSCRIBER. 
 The Subscriber hereby represents and warrants to the Company as follows: 
 2.1 The Subscriber understands,
acknowledges and agrees that the purchase of the Securities involves a high degree of risk including, but not limited to, the following: (i) an investment in the Company is highly speculative, and only investors who can afford the loss of their
entire investment should consider investing in the Company and the Securities; (ii) the Subscriber may not be able to liquidate its investment; (iii) transferability of the Securities is extremely limited; (iv) in the event of a
disposition of the Securities, the Subscriber could sustain the loss of its entire investment; and (v) the Company has not paid any dividends on its Common Stock and does not anticipate the payment of dividends in the foreseeable future.

 2.2 The Subscriber is an “accredited investor” as such term is defined in Rule 501(a) of Regulation D promulgated under the
Securities Act, as indicated by the Subscriber’s responses to the questions contained in the Confidential Investor Questionnaire, which are true and correct as of the date hereof and shall be true and correct as of the relevant Closing Date,
and that the Subscriber is able to bear the economic risk of an investment in the Company. If the Subscriber is a natural person, the Subscriber has reached the age of majority in the state or other jurisdiction in which the Subscriber resides, has
adequate means of providing for the Subscriber’s current financial needs and contingencies, is able to bear the substantial economic risks of an investment in the Securities for an indefinite period of time, has no need for liquidity in such
investment and, at the present time, could afford a complete loss of such investment. 
 2.3 The Subscriber understands, acknowledges and
agrees that: (i) the Subscriber is knowledgeable, sophisticated and has experience in making, and is qualified to make, decisions with respect to investments representing an investment decision like that involved in the purchase of the
Securities and has prior investment experience, including investments in securities which are non-listed, unregistered and/or not traded on the New York Stock Exchange, AMEX, the Nasdaq National Market or Capital Market (“NASDAQ”)
or any other national stock exchange; (ii) the investment in the Securities is of a highly speculative 

  

 3 

 
nature and involves a significant degree of risk, that the market price of the Common Stock has been and continues to be volatile and that Subscriber has
carefully evaluated the risks of an investment in the Securities; and (iii) the Subscriber is able to bear the economic risk of an investment in the Securities and the potential loss of such investment, which risk the Subscriber hereby assumes.

 2.4 The Subscriber has received and carefully reviewed this Agreement, the Company’s Confidential Offering Memorandum dated
March 30, 2006 (together with all exhibits, appendices, supplements or amendments thereto, and any documents which may have been made available upon request as reflected therein, the “Memorandum”). The Subscriber further
represents that the Subscriber has been furnished by the Company during the course of this transaction with all information regarding the Company which the Subscriber, its investment advisor, attorney and/or accountant has requested or desired to
know or which is otherwise relevant to an investment decision, has been afforded the opportunity to ask questions of and receive answers from duly authorized officers or other representatives of the Company concerning the terms and conditions of the
Offering, and has received any additional information which the Subscriber or its advisors or agents has requested. 
 2.5 (a) The
Subscriber has relied solely upon the information provided by the Company in making the decision to invest in the Securities. The Subscriber is familiar with and understands the terms of the Offering, including the rights to which the Subscriber is
entitled under this Agreement. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (whether oral or written) from the Company, or any agent, employee or Affiliate
of the Company other than as set forth in the Memorandum, in this Agreement or resulting from the Subscriber’s own independent investigation. The Subscriber understands and acknowledges that nothing in this Agreement, the Memorandum or any
other materials provided to the Subscriber in connection with the subscription for the Securities or sale of the Securities constitutes investment, tax or legal advice. To the extent deemed necessary or advisable by the Subscriber in its sole
discretion, the Subscriber has retained, at its sole expense, and relied upon appropriate professional advice regarding the investment, tax and legal merits and consequences of this Agreement and its purchase of the Securities hereunder. 

(b) No Securities were offered or sold to the Subscriber by means of any form of general solicitation or general advertising, and in connection
therewith the Subscriber did not: (A) receive or review any advertisement, article, notice or other communication published in a newspaper or magazine or similar media or broadcast over television or radio whether closed circuit, or generally
available; or (B) attend any seminar meeting or industry investor conference whose attendees were invited by any general solicitation or general advertising. 
 2.6 The Subscriber, either by reason of the Subscriber’s business or financial experience or the business or financial experience of the Subscriber’s professional advisors, has the capacity to protect the
Subscriber’s own interests in connection with the transaction contemplated hereby. 
  

 4 

 2.7 The Subscriber understands, acknowledges and agrees that the Offering has not been reviewed,
recommended or endorsed by the SEC or any state securities regulatory authority or other governmental body or agency, since the Offering is intended to be exempt from the registration requirements of Section 5 of the Securities Act pursuant to
Regulation D promulgated under the Securities Act. The Subscriber shall not sell or otherwise transfer the Securities unless such transfer is registered under the Securities Act or unless an exemption from such registration is available. The
Subscriber understands that if required by the laws or regulations or any applicable jurisdictions, the Offering contemplated hereby will be submitted to the appropriate authorities of such state(s) for registration or exemption therefrom.

 2.8 The Subscriber understands, acknowledges and agrees that the Securities have not been registered under the Securities Act in reliance
upon a claimed exemption under the provisions of the Securities Act which depends, in part, upon the Subscriber’s investment intention and the truth and accuracy of, and Subscriber’s compliance with, the representations, warranties,
acknowledgments and covenants of Subscriber set forth herein. In this connection, the Subscriber hereby represents that the representations, warranties, acknowledgments and covenants of Subscriber set forth herein are true and correct, the
Subscriber will comply with the covenants set forth herein, and the Subscriber is purchasing the Securities for the Subscriber’s own account for investment purposes only and not with a view toward the resale or distribution to others and has no
contract, undertaking, agreement or other arrangement, in existence or contemplated, to sell, pledge, assign or otherwise transfer the Securities to any other Person (as defined in Article 5). The Subscriber, if an entity, also represents that it
was not formed for the purpose of purchasing the Securities. 
 2.9 The Subscriber understands that the Securities will not be registered or
available for sale in the public markets except as specifically provided herein, and Rule 144 promulgated under the Securities Act (“Rule 144”) requires, among other conditions, a one-year holding period prior to the resale (in
limited amounts) of securities acquired in a non-public offering (and a two-year holding period for unlimited sales by non-Affiliates of the Company) without having to satisfy the registration requirements under the Securities Act. The Subscriber
understands and hereby acknowledges that the Company is under no obligation to register any of the Securities under the Securities Act or any state securities or “blue sky” laws or assist the Subscriber in obtaining an exemption from
various registration requirements, other than as set forth in Article 5 herein. 
 2.10 The Subscriber consents to the placement of a legend
on any certificate or other document evidencing the Securities substantially as set forth below, that such Securities have not been registered under the Securities Act or any state securities or “blue sky” laws and setting forth or
referring to the restrictions on transferability and sale thereof contained in this Agreement. The Subscriber is aware that the Company will make a notation in its appropriate records with respect to the restrictions on the transferability of the
Securities. 
 THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS 

  

 5 

 
AMENDED (THE “SECURITIES ACT”), OR UNDER THE SECURITIES LAWS OF ANY STATE. THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND
RESALE AND MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL IN FORM, SUBSTANCE AND SCOPE
REASONABLY SATISFACTORY TO THE COMPANY, TO THE EFFECT THAT REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. 
 2.11 The Subscriber agrees to supply the Company, within five (5) days after the Subscriber receives the request therefor from the Company, with such additional information concerning the Subscriber as the
Company deems necessary or advisable in order to establish or verify the Subscriber’s representations contained herein. 
 2.12 The
address of the Subscriber furnished by the Subscriber on the signature page hereof is the Subscriber’s principal residence if Subscriber is an individual or its principal business address if it is a corporation or other entity. 
 2.13 The Subscriber has full power and authority (corporate or otherwise) to execute, deliver, and perform this Agreement and to purchase the Securities
and has taken all action necessary to authorize the execution, delivery and performance of this Agreement. This Agreement constitutes the legal, valid and binding obligation of the Subscriber, enforceable against the Subscriber in accordance with
its terms, subject to laws of general application relating to bankruptcy, insolvency and the relief of debtors and rules of law governing specific performance, injunctive relief or other equitable remedies, and to limitations of public policy.

 2.14 If the Subscriber is a corporation, partnership, limited liability company, trust, employee benefit plan, individual retirement
account, Keogh Plan, or other entity (a) it is authorized and qualified to become an investor in the Company and the Person signing this Agreement on behalf of such entity has been duly authorized by such entity to do so and (b) it is duly
organized, validly existing and in good standing under the laws of the jurisdiction of its organization. 
 2.15 The Subscriber acknowledges
that if he or she is a Registered Representative of a National Association of Securities Dealers, Inc. (“NASD”) member firm, he or she must give such firm the notice required by the NASD Rules of Fair Practice, receipt of which must
be acknowledged by such firm in Section 7.4 below in accordance with such rules. 
 2.16 The Subscriber understands, acknowledges and
agrees that this subscription may be rejected, in whole or in part, by the Company or the Placement Agents, in each of their sole and absolute discretion, at any time before any Closing Date notwithstanding prior receipt by the Subscriber of notice
of acceptance of the Subscriber’s subscription. The 

  

 6 

 
Subscriber hereby authorizes and directs the Company to return, without interest, any funds for unaccepted subscriptions to the same account from which the
funds were drawn, including any customer account maintained by the Subscriber with either Placement Agent. 
 2.17 The Subscriber
understands, acknowledges and agrees with the Company that except as otherwise set forth herein, the subscription hereunder is irrevocable by the Subscriber, that, except as required by law, the Subscriber is not entitled to cancel, terminate or
revoke this Agreement or any agreements of the Subscriber hereunder and that this Agreement and such other agreements shall survive the death or disability of the Subscriber and shall be binding upon and inure to the benefit of the parties and their
heirs, executors, administrators, successors, legal representatives and permitted assigns. If the Subscriber is more than one Person, the obligations of the Subscriber hereunder shall be joint and several and the agreements, representations,
warranties and acknowledgments herein contained shall be deemed to be made by and be binding upon each such Person and its heirs, executors, administrators, successors, legal representatives and permitted assigns. 
 2.18 The Subscriber understands, acknowledges and agrees with the Company that the Offering is intended to be exempt from registration under the
Securities Act by virtue of Section 4(2) of the Securities Act and the provisions of Regulation D, and/or the provisions of Regulation S, that are in part dependent upon the truth, completeness and accuracy of the statements made by the
Subscriber. 
 2.19 The Subscriber understands, acknowledges and agrees that there can be no assurance that the Subscriber will be able to
sell or dispose of the Securities. It is understood than in order not to jeopardize the Offering’s exempt status under Section 4(2) of the Securities Act and Regulation D, in addition to any other restrictions on transfer set forth herein,
the Company may, at a minimum, require any transferee to fulfill the Subscriber suitability requirements thereunder and make the representations, warranties and covenants of Subscriber hereunder. 
 2.20 The Subscriber represents and warrants that during the period commencing upon the date that the Subscriber was first contacted with respect to the
Offering (the “First Date”) the Subscriber has not, directly or indirectly, through related parties, Affiliates or otherwise, sold “short” or “short against the box” (as such terms are generally understood) and
until the Registration Statement (as defined in Article 5) are declared effective, will not sell “short” or “short against the box” any equity security of the Company or take any action with respect to any equity security of the
Company which would violate the Securities Act or the rules and regulations promulgated thereunder and from the First Date through the relevant Closing Date or termination of this Agreement has not and will not take any action the intent or
reasonably foreseeable effect of which is to reduce the trading price of the Common Stock. 
 2.21 The Subscriber understands, acknowledges
and agrees that the existence of and information contained in this Agreement, the Memorandum or otherwise made available to the Subscriber by the Company (collectively, the “Confidential Information”) is to be used solely for the
purpose of evaluating a possible investment in the Securities and is confidential and 

  

 7 

 
non-public and agrees that all such Confidential Information shall be kept in confidence by the Subscriber and neither used by the Subscriber for the
Subscriber’s personal benefit (other than in connection with evaluating a possible investment in the Securities) nor disclosed to any third party for any reason and in any manner, notwithstanding that a Subscriber’s subscription may not be
accepted by the Company; provided, however, that this obligation shall not apply to any such Confidential Information that (i) is part of the public knowledge or literature and readily accessible at the date hereof (except as a
result of a breach of this provision by any party) or (ii) becomes part of the public knowledge or literature and readily accessible by publication (except as a result of a breach of this provision by any party). 
 2.22 If the Subscriber is purchasing the Securities in a fiduciary capacity for another Person, including without limitation a corporation, partnership,
trust or any other entity, the Subscriber has been duly authorized and empowered to execute this Agreement and all other subscription documents, and such other Person fulfills all the requirements for purchase of the Securities as such requirements
are set forth herein, concurs in the purchase of the Securities and agrees to be bound by the obligations, representations, warranties and covenants contained herein. Upon request of the Company, the Subscriber will provide true, complete and
correct copies of all relevant documents creating the Subscriber, authorizing its investment in the Company and/or evidencing the satisfaction of the foregoing. 
 2.23 No authorization, approval, consent or license of any Person is required to be obtained for the purchase of the Securities by the Subscriber, other than as have been obtained and are in full force and effect. The
execution and delivery of this Agreement does not, and the consummation of the transactions contemplated hereby will not, result in any violation of or constitute a default under any material agreement or other instrument to which the Subscriber is
a party or by which the Subscriber or any of its properties are bound, or to the best of the Subscriber’s knowledge, any permit, franchise, judgment, order, decree, statute, rule or regulation to which the Subscriber or any of its businesses or
properties is subject. 
 2.24 The Subscriber understands, acknowledges and agrees that the representations, warranties and agreements of the
Subscriber contained herein (including the Confidential Investor Questionnaire), in the Registration Questionnaire attached hereto as Appendix A (the “Registration Questionnaire”) and in any other writing delivered in
connection with the transactions contemplated hereby shall be true and correct on the date hereof and as of the relevant Closing Date as if made on and as of such date and shall survive the execution and delivery of this Agreement and the purchase
of the Securities. The Subscriber agrees that the Placement Agents shall be entitled to rely on the representations, warranties and agreements of the Subscriber contained herein as if such representations, warranties and agreements were made or
provided directly to the Placement Agents. 
 2.25 The Subscriber hereby covenants with the Company not to make any sale of the Securities
under the Registration Statement without effectively causing the prospectus delivery requirements under the Securities Act to be satisfied, and further agrees to comply with reasonable requests of the Company or its transfer agent to provide
additional information and representations concerning such sale. 
  

 8 

 2.26 (a) The Subscriber agrees, acknowledges and understands that the Placement Agents are acting as
co-placement agents for the Securities being offered hereby and will be compensated by the Company for acting in such capacity, including, but not limited to, by: (i) aggregate placement fees in cash equal to up to seven percent (7%) of
the proceeds received by the Company at each Closing; (ii) warrants (the “Placement Warrants”) to purchase a number of shares of Common Stock (the “Placement Warrant Shares”) in the aggregate equal to ten
percent (10%) of the number of Shares actually sold by the Company in connection with the Offering (not including shares of Common Stock issuable upon exercise or conversion of warrants or other securities for which no cash consideration was
received upon issuance); and (iii) reimbursement of their reasonable, documented expenses (including reasonable legal fees) incurred in connection with the Offering (which reimbursement shall not exceed $100,000 in the aggregate). The Placement
Warrants shall have an exercise price per share equal to 110% of the Purchase Price per Share (the “Warrant Exercise Price”). The Subscriber shall not be entitled to reimbursement of any expenses incurred by the Subscriber in
connection with the Offering. The Placement Agents will receive the commissions and Placement Warrants discussed above on all subsequent investments in Company securities made by investors introduced to the Company by the Placement Agents in
connection with this Offering for a period of 24 months from the final Closing Date. In addition, the Placement Agents, on a co-exclusive basis, and Paramount, on an exclusive basis after the co-exclusive period, will also have a right of first
refusal to act as the lead-finder, placement agent or other similar agent in relation to any securities offerings on the Company’s behalf during the 12-month period and 36-month period, respectively, following the final Closing Date.

 (b) The Subscriber agrees, acknowledges and understands that Paramount may engage other Persons, selected by it in its discretion, who
are members of the NASD or who are located outside the United States, to assist Paramount in connection with this Offering. 
 3. REPRESENTATIONS BY AND COVENANTS OF THE COMPANY. 
 The Company hereby represents and warrants to the Subscriber that:

 3.1 Organization, Good Standing and Qualification. The Company is a corporation duly organized, validly existing and in good
standing under the laws of the State of Delaware and has full corporate power and authority to conduct its business as currently conducted. The Company is duly qualified as a foreign corporation to do business and is in good standing in every
jurisdiction in which the property owned or leased by it or the nature of the business conducted by it makes such qualification necessary, except to the extent that the failure to be so qualified or in good standing would not reasonably be expected
to have, individually or in the aggregate, a material adverse effect on the business, operations, conditions (financial or otherwise), properties, assets, liabilities, or results of operations of that entity individually or of the Company and its
Subsidiaries (as defined below) as a whole (a “Material Adverse Effect”). For purposes of this Section, “Subsidiary” means any corporation, partnership, limited liability company, association, or other business
entity in which the Company owns or controls, directly or indirectly, any interest, including, without limitation, any joint venture, partnership, or similar arrangement. 
  

 9 

 3.2 Capitalization and Voting Rights. The authorized, issued and outstanding capital stock of the
Company is as set forth in the Memorandum and all issued and outstanding shares of the Company are validly issued, fully paid and nonassessable. Except as set forth in the Memorandum, there are no outstanding options, warrants, agreements,
convertible securities, preemptive rights or other rights to subscribe for or to purchase any shares of capital stock of the Company. Except as set forth in the Memorandum and as otherwise required by law, there are no restrictions upon the voting
or transfer of any of the shares of capital stock of the Company pursuant to the Company’s Certificate of Incorporation, as amended (the “Certificate of Incorporation”), By-Laws or other governing documents or any agreement or
other instruments to which the Company is a party or by which the Company is bound. 
 3.3 Authorization; Enforceability. The Company
has all corporate right, power and authority to enter into this Agreement and to consummate the transactions contemplated hereby. All corporate action on the part of the Company, its directors and stockholders necessary for the
(i) authorization execution, delivery and performance of this Agreement by the Company; and (ii) authorization, sale, issuance and delivery of the Securities contemplated hereby and the performance of the Company’s obligations
hereunder has been taken. This Agreement has been duly executed and delivered by the Company and constitutes a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, subject to laws of
general application relating to bankruptcy, insolvency and the relief of debtors and rules of law governing specific performance, injunctive relief or other equitable remedies, and to limitations of public policy. The Shares, when issued and fully
paid for in accordance with the terms of this Agreement, will be validly issued, fully paid and non-assessable. The Common Stock issuable upon conversion of the Shares, when issued in accordance therewith, will be validly issued, full paid and
non-assessable. The issuance and sale of the Securities contemplated hereby will not give rise to any preemptive rights or rights of first refusal on behalf of any person which have not been waived in connection with this Offering. 
 3.4 No Conflict; Governmental Consents. 
 (a) Except as would not reasonably be expected to have a Material Adverse Effect, the execution and delivery by the Company of this Agreement and the consummation of the transactions contemplated hereby will not result in the violation of
any law, statute, rule, regulation, order, writ, injunction, judgment or decree of any court or governmental authority to or by which the Company is bound, or of any provision of the Certificate of Incorporation or By-Laws of the Company, and will
not conflict with, or result in a breach or violation of, any of the terms or provisions of, or constitute (with due notice or lapse of time or both) a default under, any lease, loan agreement, mortgage, security agreement, trust indenture or other
agreement or instrument to which the Company is a party or by which it is bound or to which any of its properties or assets is subject, nor result in the creation or imposition of any lien upon any of the properties or assets of the Company.

  

 10 

 (b) No consent, approval, authorization or other order of any governmental authority or other third party
is required to be obtained by the Company in connection with the authorization, execution and delivery of this Agreement or with the authorization, issue and sale of the Securities, except such filings as may be required to be made with the SEC and
with any state or foreign blue sky or securities regulatory authority relating to an exemption from registration thereunder. 
 3.5
Licenses. Except as otherwise set forth in the Memorandum or as would not reasonably be expected to have a Material Adverse Effect, the Company has sufficient licenses, permits and other governmental authorizations currently required for the
conduct of its business or ownership of properties and is in all material respects complying therewith. 
 3.6 Litigation. There is no
pending, or to the Company’s knowledge, threatened legal or governmental proceedings against the Company which (i) adversely questions the validity of this Agreement or any agreements related to the transactions contemplated hereby or the
right of the Company to enter into any of such agreements, or to consummate the transactions contemplated hereby or thereby or (ii) could, if there were an unfavorable decision, have a Material Adverse Effect. There is no action, suit,
proceeding or investigation by the Company currently pending in any court or before any arbitrator or that the Company intends to initiate. 
 3.7 Investment Company The Company is not an “investment company” within the meaning of such term under the Investment Company Act of 1940, as amended, and the rules and regulations of the SEC thereunder. 
 3.8 Financial Statements. The financial statements of the Company included in the Memorandum (the “Financial Statements”) fairly
present in all material respects the financial condition and position of the Company at the dates and for the periods indicated; and have been prepared in conformity with generally accepted accounting principles in the United States
(“GAAP”) consistently applied throughout the periods covered thereby, except as may be otherwise specified in such Financial Statements or the notes thereto and except that unaudited financial statements may not contain all
footnotes required by GAAP, and fairly present in all material respects the financial position of the Company as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited
statements, to normal, immaterial, year-end audit adjustments. Since the date of the most recent balance sheet included as part of the Financial Statements, there has not been to the Company’s knowledge: (i) any change in the business,
conditions (financial or otherwise), properties, assets, liabilities, or results of operations of the Company from that reflected in the Financial Statements, other than changes in the ordinary course of business, none of which individually or in
the aggregate would reasonably be expected to have a Material Adverse Effect; or (ii) any other event or condition of any character that, either individually or cumulatively, would reasonably be expected to have a Material Adverse Effect,
except for the expenses incurred in connection with the transactions contemplated by this Agreement. 
  

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 3.9 Title to Properties and Assets; Liens, Etc. The Company has good and marketable title to its
properties and assets, including the properties and assets reflected in the most recent balance sheet included in the Financial Statements, and good title to its leasehold estates, in each case subject to no mortgage, pledge, lien, lease,
encumbrance or charge, other than (a) those resulting from taxes which have not yet become delinquent; (b) liens and encumbrances which do not materially detract from the value of the property subject thereto or materially impair the
operations of the Company; (c) those that have otherwise arisen in the ordinary course of business; and (d) those that would not reasonably be expected to have a Material Adverse Effect. The Company is in compliance with all material terms
of each lease to which it is a party or is otherwise bound. 
 3.10 Obligations to Related Parties. Except as disclosed in the
Memorandum or as would not reasonably be expected to have a Material Adverse Effect, there are no obligations of the Company to officers, directors, stockholders, or employees of the Company other than (a) for payment of salary or other
compensation for services rendered, (b) anti-dilution provisions in favor of the Company’s Chief Executive Officer, (c) reimbursement for reasonable expenses incurred on behalf of the Company, (d) standard indemnification
provisions in the certificate of incorporation and by-laws, and (e) for other standard employee benefits made generally available to all employees (including stock option agreements outstanding under any stock option plan approved by the Board
of Directors of the Company). Except as may be disclosed in the Financial Statements, the Company is not a guarantor or indemnitor of any indebtedness of any other person, firm or corporation. 
 3.11 Employee Relations; Employee Benefit Plans. The Company is not a party to any collective bargaining agreement or union contract. The Company
believes that its relations with its employees are good. No executive officer (as defined in Rule 501(f) of the Securities Act) of the Company has notified the Company that such officer intends to leave the Company or otherwise terminate such
officer’s employment with the Company. The Company is in compliance with all federal, state, local and foreign laws and regulations respecting employment and employment practices, terms and conditions of employment and wages and hours, except
where failure to be in compliance would not, either individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect. Except as disclosed in the Memorandum, the Company does not maintain any compensation or benefit
plan, agreement, arrangement or commitment (including, but not limited to, “employee benefit plans”, as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”)) for any
present or former employees, officers or directors of the Company or with respect to which the Company has liability or makes or has an obligation to make contributions, other than any such plans, agreements, arrangements or commitments made
generally available to the Company’s employees. 
 3.12 Environmental Laws. To the knowledge of the Company, it (i) is in
compliance with any and all Environmental Laws (as hereinafter defined), (ii) has received all permits, licenses or other approvals required of it under applicable Environmental Laws to conduct its business and (iii) is in compliance with
all terms and conditions of any such permit, license or approval where, in each of the foregoing clauses (i), (ii) and (iii), the failure to so 

  

 12 

 
comply would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. The term “Environmental Laws”
means all federal, state, local or foreign laws relating to pollution or protection of human health or the environment (including, without limitation, ambient air, surface water, groundwater, land surface or subsurface strata), including, without
limitation, laws relating to emissions, discharges, releases or threatened releases of chemicals, pollutants, contaminants, or toxic or hazardous substances or wastes (collectively, “Hazardous Materials”) into the environment, or
otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials, as well as all authorizations, codes, decrees, demands or demand letters, injunctions, judgments,
licenses, notices or notice letters, orders, permits, plans or regulations issued, entered, promulgated or approved thereunder. 
 3.13
Tax Status. To the knowledge of the Company, it (i) has made or filed all federal and state income and all other tax returns, reports and declarations required by any jurisdiction to which it is subject, (ii) has paid all taxes and
other governmental assessments and charges that are material in amount, shown or determined to be due on such returns, reports and declarations, except those being contested in good faith and (iii) has set aside on its books provision
reasonably adequate for the payment of all taxes for periods subsequent to the periods to which such returns, reports or declarations apply. There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any
jurisdiction, and the officers of the Company know of no basis for any such claim. 
 3.14 Proprietary Rights. To the Company’s
knowledge, the Company owns or possesses adequate and enforceable rights to use all patents, patent applications, trademarks, trade names, corporate names, copyrights, trade secrets, licenses, inventions, formulations, technology and know-how and
other intangible property used in the conduct of its business as described in the Memorandum (the “Proprietary Rights”). Except as described in the Memorandum, to the Company’s knowledge, the Company has not received any notice
of, and there are no facts known to the Company that reasonably indicate the existence of (i) any infringement or misappropriation by any third party of any of the Proprietary Rights or (ii) any claim by a third party contesting the
validity of any of the Proprietary Rights. The Company has not received any notice of any infringement, misappropriation or violation by the Company or any of its employees of any Proprietary Rights of third parties 
 3.15 Absence of Certain Changes. Except as set forth in the Memorandum, since the date of the Memorandum, there has been no material adverse
change in the business, operations, conditions (financial or otherwise), prospects, assets or results of operations of the Company or any of its Subsidiaries. 
 3.16 Disclosure. The information set forth in the Memorandum as of the date hereof contains no untrue statement of a material fact nor omits to state a material fact necessary in order to make the statements
contained therein, in light of the circumstances under which they were made, not misleading. 
  

 13 

 4. CONDITIONS TO OBLIGATIONS OF EACH PARTY. 
 4.1 Conditions to Obligations of the Company. The Company’s obligation to complete the sale and issuance of the Securities and deliver the
Shares to the Subscriber at a Closing is subject to the fulfillment on or prior to such Closing of the following conditions, which conditions may be waived at the option of the Company to the extent permitted by law: 
 (a) Representations and Warranties Correct. The representations and warranties made by the Subscriber in Article 2 hereof shall be true and
correct when made, and shall be true and correct on and as of the Closing Date. 
 (b) Covenants. All covenants, agreements and
conditions contained in this Agreement to be performed by the Subscriber on or prior to such sale and issuance shall have been performed or complied with in all material respects. 
 (c) No Legal Order Pending. There shall not then be in effect any legal or other order enjoining or restraining the transactions contemplated by
this Agreement. 
 (d) No Law Prohibiting or Restricting Such Sale. There shall not be in effect any law, rule or regulation
prohibiting or restricting the issuance and sale of the Securities or requiring any consent or approval of any Person which shall not have been obtained to issue or sell the Securities, or in either case to otherwise consummate the transactions
contemplated hereby (except as otherwise provided in this Agreement). 
 (e) Payment of Consideration. The Company shall have
received the full amount of the Aggregate Purchase Price for the Securities being purchased hereunder at such Closing. 
 (f)
Questionnaires. The Subscriber shall have completed, executed and delivered to the Company the Confidential Investor Questionnaire and the Registration Questionnaire, which questionnaires shall be true and correct as of such Closing and shall
be satisfactory to the Placement Agents and the Company, each in their sole discretion. 
 (g) Minimum Offering Amount. The Company
shall have received duly executed subscriptions and corresponding readily available funds in the Escrow Account from Subscribers equal to or in excess of the Minimum Offering Amount. 
 4.2 The Subscriber’s obligation to purchase the Securities at a Closing is subject to the fulfillment on or prior to such Closing of the following
conditions, which conditions may be waived at the option of each Subscriber to the extent permitted by law: 
 (a) Representations and
Warranties Correct. The representations and warranties made by the Company in Article 3 hereof shall be true and correct when made, and shall be true and correct on and as of the Closing Date (except for any representation or warranty that
speaks as of a specific date, which shall be true and correct as of such date). 
  

 14 

 (b) Covenants. All covenants, agreements and conditions contained in this Agreement to be
performed by the Company on or prior to such purchase shall have been performed or complied with in all material respects. 
 (c) No
Legal Order Pending. There shall not then be in effect any legal or other order enjoining or restraining the transactions contemplated by this Agreement. 
 (d) No Law Prohibiting or Restricting Such Sale. There shall not be in effect any law, rule or regulation prohibiting or restricting the issuance and sale of the Securities or requiring any consent or approval
of any Person which shall not have been obtained to issue or sell the Securities, or in either case to otherwise consummate the transactions contemplated hereby (except as otherwise provided in this Agreement). 
 (e) Minimum Offering. The Company shall have received duly executed subscriptions and corresponding readily available funds in the Escrow Account
from Subscribers equal to or in excess of the Minimum Offering Amount. 
 (f) Legal Opinion. The Placement Agents, on behalf of the
Subscribers, shall have received an opinion of Wyrick Robbins Yates & Ponton LLP, counsel to the Company, in substantially the form attached hereto as Appendix B. 
 5. REGISTRATION RIGHTS. 
 5.1 As used in this Agreement, the following terms shall have the following meanings: 
 (a) “Affiliate” shall
mean, with respect to any Person (as defined below), any other Person controlling, controlled by or under direct or indirect common control with such Person (for the purposes of this definition “control,” when used with respect to any
specified Person, shall mean the power to direct the management and policies of such Person, directly or indirectly, whether through ownership of voting securities, by contract or otherwise; and the terms “controlling” and
“controlled” shall have meanings correlative to the foregoing). 
 (b) “Business Day” shall mean a day Monday
through Friday on which banks are generally open for business in New York, New York. 
 (c) “Holders” shall mean the
Subscribers and any Person holding Registrable Securities or any Person to whom the rights under Article 5 have been transferred in accordance with Section 5.9 hereof. 
 (d) “Person” shall mean any person, individual, corporation, limited liability company, partnership, trust or other nongovernmental
entity or any governmental agency, court, authority or other body (whether foreign, federal, state, local or otherwise). 
  

 15 

 (e) The terms “register,” “registered” and
“registration” refer to the registration effected by preparing and filing a registration statement in compliance with the Securities Act, and the declaration or ordering of the effectiveness of such registration statement under the
Securities Act. 
 (f) “Registrable Securities” shall mean the Shares, the Shares of Common Stock issuable upon conversion
of the Shares, the Placement Warrant Shares and any shares of Common Stock issued as a dividend or distribution with respect to or in replacement of the Shares issued, directly or indirectly, in connection with this Offering; provided,
however, that securities shall only be treated as Registrable Securities if and only for so long as they (i) have not been sold (A) pursuant to a registration statement; (B) to or through a broker, dealer or underwriter in a
public distribution or a public securities transaction; and/or (C) in a transaction exempt from the registration and prospectus delivery requirements of the Securities Act under Section 4(1) thereof so that all transfer restrictions and
restrictive legends with respect thereto, if any, are removed upon the consummation of such sale; (ii) are held by a Holder or a permitted transferee; or (iii) are not eligible for sale pursuant to Rule 144(k) (or any successor thereto)
under the Securities Act. For purposes of this Agreement, “Placement Warrant Shares” shall mean the shares of Common Stock issuable upon exercise of the Placement Warrants. 
 (g) “Registration Expenses” shall mean all expenses incurred by the Company in complying with Section 5.2 hereof, including,
without limitation, all registration, qualification and filing fees, printing expenses, escrow fees, fees and expenses of counsel for the Company, blue sky fees and expenses and the expense of any special audits incident to or required by any such
registration (but excluding the fees of legal counsel for any Holder). 
 (h) “Selling Expenses” shall mean all
underwriting discounts and selling commissions applicable to the sale of Registrable Securities and all fees and expenses of legal counsel for any Holder. 
 (i) “Subsidiary” shall mean, with respect to any Person, any other Person of which more than fifty percent (50%) of the shares of stock or other interests entitled to vote in the election of
directors or comparable Persons performing similar functions (excluding shares or other interests entitled to vote only upon the failure to pay dividends thereon or other contingencies) are at the time owned or controlled, directly or indirectly
through one or more Subsidiaries, by such Person. 
 5.2 Subject to the terms, conditions and limitations set forth herein, the Company will
use its best efforts to (i) file a registration statement with the SEC on the appropriate form (the “Registration Statement”) within 60 days from the later of (x) the first date on which the Common Stock trades on a
national exchange or on the NASDAQ, including the OTC Bulletin Board (a “Trading Event”) and (y) the final Closing Date (the date such Registration Statement is actually filed, the “Filing Date”) to allow the
resale of the Registrable Securities (allocated on a pro rata basis among the Holders) under the Securities Act, and use its best efforts to have such Registration Statement declared effective by the SEC prior to the date which is the earlier of
(i) 120 days after the Filing Date, or if the Registration Statement is 

  

 16 

 
subject to review and comments from the staff of the SEC, 150 days after such date; and (ii) five trading days after the Company is notified by the SEC
that the Registration Statement will not be reviewed or is no longer subject to further review (the date following such 5, 120 or 150-day period, as applicable, the “Registration Effective Date”). The Company will use commercially
reasonable efforts to cause the Registration Statement to remain effective (the “Registration Period”) until the earliest of (i) the date on which the Subscriber may sell all the Shares (or the shares of Common Stock into which
the Shares are convertible) then held by the Subscriber pursuant to Rule 144(k) of the Securities Act and (ii) such time as all Securities held by the Subscriber and registered under the Registration Statement have been sold (A) pursuant
to a registration statement; (B) to or through a broker, dealer or underwriter in a public distribution or a public securities transaction; and/or (C) in a transaction exempt from the registration and prospectus delivery requirements of
the Securities Act under Section 4(1) thereof so that all transfer restrictions and restrictive legends with respect thereto, if any, are removed upon the consummation of such sale. To the extent permissible, such Registration Statement also
shall include, or subsequently be amended to include, to the extent allowable under the Securities Act and the rules promulgated thereunder (including Rule 416 under the Securities Act), such indeterminate number of additional shares of Common Stock
resulting from stock splits, stock dividends or similar transactions with respect to the Registrable Securities. In the event the Company has not filed the Registration Statement within 60 days from the earlier of the Trading Event and the final
Closing Date, or is not effective by the Registration Effective Date, then the Company shall make compensatory payments (the “Liquidated Damages”) to the Subscriber in an amount equal to one (1) percent of the aggregate
Purchase Price paid by the Subscriber hereunder for each 30-day period (or prorated portion thereof) in which the Company is in default of its obligations under Section 5.2, provided, however, that in no event shall the Company be required
hereunder to pay to any Subscriber pursuant to this Agreement an aggregate amount that exceeds 12.0% of the aggregate Purchase Price paid by any Subscriber for such Subscriber’s Registrable Securities. The Company shall pay any Liquidated
Damages to Subscribers within five (5) business days of the end of each 30-day period in which such Liquidated Damages have accrued. Notwithstanding the foregoing, the Company shall not be obligated to make compensatory payments to the Holder
in the event that it has not satisfied the requirements of this Section 5.2 because it was prohibited from including, or requested not to include, all or any of the Registrable Securities on the Registration Statement by the SEC (including the
staff of the SEC’s Division of Corporate Finance), the Securities Act, or the rules and regulations promulgated thereunder, provided, however, that the Company uses its reasonable best efforts to cause all such Registrable Securities to be
registered on a Registration Statement as soon as permitted by the SEC, the Securities Act, and the rules and regulations promulgated thereunder. 
 5.3 All Registration Expenses incurred in connection with any registration, qualification, exemption or compliance pursuant to Section 5.2 shall be borne by the Company. All Selling Expenses relating to the sale of securities
registered by or on behalf of Holders shall be borne by such Holders. 
 5.4 In the case of the registration, qualification, exemption or
compliance effected by the Company pursuant to this Agreement, the Company shall, upon reasonable request, inform each Holder as to the status of such registration, qualification, exemption and compliance. At its expense the Company shall:

 (a) use commercially reasonable efforts to keep such registration, and any qualification, exemption or compliance under state or federal
securities laws which the Company determines to obtain, continuously effective until the termination of the Registration Period; 
  

 17 

 (b) advise the Holders as soon as practicable: 
 (i) when the Registration Statement or any amendment thereto has been filed with the SEC and when the Registration Statement or any post-effective
amendment thereto has become effective; 
 (ii) of the issuance by the SEC of any stop order suspending the effectiveness of the
Registration Statement or the initiation of any proceedings for such purpose; 
 (iii) of the receipt by the Company of any notification
with respect to the suspension of the qualification of the Registrable Securities included therein for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose; and 
 (iv) of the happening of any event that requires the making of any changes in the Registration Statement or the prospectus so that, as of such date, the
statements therein are not misleading and do not omit to state a material fact required to be stated therein or necessary to make the statements therein (in the case of the prospectus, in the light of the circumstances under which they were made)
not misleading (which notice will be accompanied by an instruction to suspend the use of the prospectus until such changes have been made); 
 (c) make every reasonable effort to obtain the withdrawal of any order suspending the effectiveness of any Registration Statement at the earliest possible time; 
 (d) furnish to each Holder, without charge, at least one copy of such Registration Statement and any post-effective amendment thereto, including financial statements, all exhibits (including those incorporated by
reference) and schedules, if the Holder so requests in writing; 
 (e) during the Registration Period, deliver to each Holder, without
charge, as many copies of the prospectus included in such Registration Statement and any amendment or supplement thereto as such Holder may reasonably request; and the Company consents to the use, consistent with the provisions hereof, of the
prospectus or any amendment or supplement thereto by each of the selling Holders of Registrable Securities in connection with the offering and sale of the Registrable Securities covered by the prospectus or any amendment or supplement thereto.

  

 18 

 (f) prior to any public offering of Registrable Securities pursuant to the Registration Statement,
register or qualify or obtain an exemption for offer and sale under the securities or blue sky laws of such jurisdictions as any such Holders reasonably request in writing, provided that the Company shall not for any such purpose be required to
qualify generally to transact business as a foreign corporation in any jurisdiction where it is not so qualified or to consent to general service of process in any such jurisdiction, and do any and all other acts or things reasonably necessary or
advisable to enable the offer and sale in such jurisdictions of the Registrable Securities covered by such Registration Statement in the sole discretion of the Company; 
 (g) to the extent permitted under applicable rules and regulations promulgated under the Securities Act, cooperate with the Holders to facilitate the timely preparation and delivery of certificates representing
Registrable Securities to be sold pursuant to any Registration Statement free of any restrictive legends to the extent not required at such time and in such denominations and registered in such names as Holders may request; 
 (h) upon the occurrence of any event contemplated by Section 5.4(b)(iv) above, the Company shall promptly prepare a post-effective amendment to the
Registration Statement or a supplement to the related prospectus, or file any other required document so that, as thereafter promptly delivered to purchasers of the Registrable Securities included therein, the prospectus will not include any untrue
statement of a material fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; and 
 (i) use commercially reasonable efforts to comply with all applicable rules and regulations of the SEC, and use commercially reasonable efforts to make
generally available to its security holders not later than 45 days (or 90 days if the fiscal quarter is the fourth fiscal quarter) after the end of its fiscal quarter in which the first anniversary date of the effective date of the Registration
Statement occurs, an earnings statement satisfying the provisions of Section 11(a) of the Securities Act. 
 Notwithstanding the
foregoing, it shall be a condition precedent to the obligations of the Company to take any action pursuant to paragraphs (a) through (i) of this Section 5.4, that the Holder shall furnish to the Company such information regarding
itself, the Securities to be sold by the Holder and the intended method of disposition of such Securities as shall be required to effect the registration of the Securities, all of which information shall be furnished to the Company in writing
specifically for use in the Registration Statement. 
 5.5 The Holders shall have no right to take any action to restrain, enjoin or
otherwise delay any registration pursuant to Section 5.2 hereof as a result of any controversy that may arise with respect to the interpretation or implementation of this Agreement. 
 5.6 (a) To the extent permitted by law, the Company shall indemnify each Holder with respect to (i) any registration, qualification or
compliance effected pursuant to this Agreement against all claims, losses, damages and liabilities (or actions in respect thereof), 

  

 19 

 
including any of the foregoing incurred in settlement of any litigation, commenced or threatened (subject to Section 5.6(c) below), arising out of or
based on any untrue statement (or alleged untrue statement) of a material fact contained in the Registration Statement, or any amendment or supplement thereof, incident to any such registration, qualification or compliance, or based on any omission
(or alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, in light of the circumstances in which they were made, or (ii) any violation or alleged violation
by the Company of the Securities Act, the Exchange Act, or any rule or regulation promulgated under the Securities Act or the Exchange Act, and will reimburse each Holder for reasonable legal and other expenses reasonably incurred in connection with
investigating or defending any such claim, loss, damage, liability or action as incurred; provided, that the Company will not be liable in any such case to the extent that any such claim, loss, damage, liability or action arises out of,
relates to or is based upon: (i) any untrue statement or omission or allegation thereof is made in reliance upon and in conformity with written information furnished to the Company by or on behalf of such Holder and stated to be specifically
for use in preparation of such Registration Statement or prospectus; or (ii) the failure of the Holder to comply with the covenants and agreements contained in this Agreement respecting sales of Registrable Securities. Notwithstanding the
foregoing, the Company will not be liable in any such case where the claim, loss, damage, liability or action arises out of or is related to the failure of the Holder to comply with the covenants and agreements contained in this Agreement respecting
sales of Registrable Securities, and except that the foregoing indemnity agreement is subject to the condition that, insofar as it relates primarily to any such untrue statement or alleged untrue statement or omission or alleged omission made in the
preliminary prospectus but eliminated or remedied in the amended prospectus on file with the SEC at the time the Registration Statement becomes effective or in the amended prospectus filed with the Commission pursuant to Rule 424(b) or in the
prospectus subject to completion under Rule 434 promulgated under the Securities Act, which together meet the requirements of Section 10(a) of the Securities Act (the “Final Prospectus”), such indemnity agreement shall not
inure to the benefit of any such Holder, any such underwriter or any such controlling Person, if a copy of the Final Prospectus furnished by the Company to the Holder for delivery was not furnished by the Holder to the Person or entity asserting the
loss, liability, claim, damage or at or prior to the time such furnishing is required by the Securities Act and the Final Prospectus would have cured the defect giving rise to such loss, liability, claim, damage or action. 
 (b) Each Holder will severally, if Registrable Securities held by such Holder are included in the securities as to which such registration,
qualification or compliance is being effected, indemnify the Company, each of its directors and officers, each underwriter of the Registrable Securities and each Person who controls the Company within the meaning of Section 15 of the Securities
Act, against all claims, losses, damages and liabilities (or actions in respect thereof), including any of the foregoing incurred in settlement of any litigation, commenced or threatened (subject to Section 5.6(c) below), arising out of or
based on any untrue statement (or alleged untrue statement) of a material fact contained in any registration statement or prospectus, or any amendment or supplement thereof, incident to any such registration, qualification or compliance, or based on
any omission (or alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, in light 

  

 20 

 
of the circumstances in which they were made, and will reimburse the Company, such directors and officers, each underwriter of the Registrable Securities and
each Person controlling the Company for reasonable legal and any other expenses reasonably incurred in connection with investigating or defending any such claim, loss, damage, liability or action as incurred, in each case to the extent, but only to
the extent, that such untrue statement or omission or allegation thereof is made in reliance upon and in conformity with written information furnished to the Company by or on behalf of the Holder and stated to be specifically for use in preparation
of such registration statement or prospectus. Notwithstanding the foregoing, in no event shall a Holder be liable for any such claims, losses, damages or liabilities in excess of the net proceeds received by such Holder from the sale of its
Registrable Securities, except in the event of fraud or intentional misrepresentation by such Holder. 
 (c) Each party entitled to
indemnification under this Section 5.6 (the “Indemnified Party”) shall give notice to the party required to provide indemnification (the “Indemnifying Party”) promptly after such Indemnified Party has actual
knowledge of any claim as to which indemnity may be sought, and shall permit the Indemnifying Party to assume the defense of any such claim or any litigation resulting therefrom, provided that counsel for the Indemnifying Party, who shall conduct
the defense of such claim or litigation, shall be approved by the Indemnified Party (whose approval shall not unreasonably be withheld), and the Indemnified Party may participate in such defense at such Indemnified Party’s expense, and provided
further that the failure of any Indemnified Party to give notice as provided herein shall not relieve the Indemnifying Party of its obligations under this Agreement, unless such failure is materially prejudicial to the Indemnifying Party in
defending such claim or litigation. An Indemnifying Party shall not be liable for any settlement of an action or claim effected without its written consent (which consent will not be unreasonably withheld). 
 (d) If the indemnification provided for in this Section 5.6 is held by a court of competent jurisdiction to be unavailable to an Indemnified Party
with respect to any loss, liability, claim, damage or expense referred to therein, then the Indemnifying Party, in lieu of indemnifying such Indemnified Party thereunder, shall contribute to the amount paid or payable by such Indemnified Party as a
result of such loss, liability, claim, damage or expense in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party on the one hand and of the Indemnified Party on the other in connection with the statements or
omissions which resulted in such loss, liability, claim, damage or expense as well as any other relevant equitable considerations. The relative fault of the Indemnifying Party and of the Indemnified Party shall be determined by reference to, among
other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied by the Indemnifying Party or by the Indemnified Party and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Holders agree that it would not be just and equitable if contribution pursuant to this Section 5.6(d) was based solely upon
the number of entities from whom contribution was requested or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 5.6(d). The amount paid or payable by an Indemnified
Party as a result of the losses, claims, damages and liabilities (or actions in respect thereof) referred to above in this Section 5.6(d) shall be deemed to include any legal or other 

  

 21 

 
expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim, subject to the provisions of
Section 5.6(d) hereof. The parties agree that it would not be just and equitable if contributions pursuant to this Section 5.6 were determined by pro rata allocation or by any other method of allocation which does not take account of the
equitable considerations as set forth in this Section 5.6. Notwithstanding the provisions of this Section 5.6(d), in no event shall a Holder be required to contribute any amount or make any other payments under this Agreement which in the
aggregate exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. No Person guilty of fraudulent misrepresentation (within the meaning of the Securities Act) shall be entitled
to contribution from any Person who was not guilty of such fraudulent misrepresentation. 
 5.7 (a) Each Holder agrees that, upon
receipt of any notice from the Company of (i) the need for an amendment or supplement to the Registration Statement or the prospectus forming a part thereof or (ii) that the Board of Directors has determined in good faith that offers and
sales pursuant to the prospectus forming part of the Registration Statement should not be made by reason of the presence of material undisclosed circumstances or developments with respect to which the disclosure that would be required in the
Registration Statement would be premature or would have a Material Adverse Effect, each Holder will forthwith discontinue disposition of Registrable Securities pursuant to the Registration Statement contemplated by Section 5.2 until its receipt
of copies of the supplemented or amended prospectus from the Company or confirmation of the filing of such report with the SEC by the Company, any such prospectus to be forwarded promptly to the Holder by the Company, and, if so directed by the
Company, each Holder shall deliver to the Company all copies, other than permanent file copies then in such Holder’s possession, of the prospectus covering such Registrable Securities current at the time of receipt of such notice;
provided, that the Company may suspend the disposition of Registrable Securities pursuant to the Registration Statement pursuant to clause (ii) above for the shortest reasonable period in the circumstances, not more than one time (not to
exceed 90 days) during any six-month period, nor more than two times (not to exceed 90 days each) in any twelve-month period. 
 (b) As a
condition to the inclusion of its Registrable Securities, each Holder shall furnish to the Company such information regarding such Holder and the distribution proposed by such Holder as the Company may reasonably request in writing or as shall be
required in connection with any registration, qualification or compliance referred to in this Article 5, including the information required by the Registration Questionnaire attached hereto as Appendix A. 
 (c) Each Holder hereby covenants with the Company not to make any sale of the Registrable Securities without effectively causing the prospectus delivery
requirements under the Securities Act to be satisfied. 
 (d) Each Holder acknowledges and agrees that the Registrable Securities sold
pursuant to the Registration Statement described in this Section are not transferable on the books of the Company unless the stock certificate submitted to the transfer 

  

 22 

 
agent evidencing such Registrable Securities is accompanied by a certificate reasonably satisfactory to the Company to the effect that (i) the
Registrable Securities have been sold in accordance with such Registration Statement and (ii) the requirement of delivering a current prospectus has been satisfied. 
 (e) Each Holder agrees not to take any action with respect to any distribution deemed to be made pursuant to the Registration Statement which would constitute a violation of Regulation M under the Exchange Act or any
other applicable rule, regulation or law. 
 (f) At the end of the period during which the Company is obligated to keep the Registration
Statement current and effective as described above, the Holders of Registrable Securities included in the Registration Statement shall discontinue sales of shares pursuant to the Registration Statement upon receipt of notice from the Company of its
intention to remove from registration the shares covered by the Registration Statement which remain unsold, and such Holders shall notify the Company of the number of shares registered which remain unsold immediately upon receipt of such notice from
the Company. 
 5.8 With a view to making available to the Holders the benefits of certain rules and regulations of the SEC which at any time
permit the sale of the Registrable Securities to the public without registration, the Company shall use commercially reasonable efforts to: 
 (a) make and keep public information available, as those terms are understood and defined in Rule 144 under the Securities Act, at all times; 
 (b) file with the SEC in a timely manner all reports and other documents required of the Company under the Exchange Act; and 
 (c) so long as a Holder owns any unregistered Registrable Securities, furnish to such Holder, upon any reasonable request, a written statement by the Company as to its compliance with Rule 144 under the
Securities Act, and of the Exchange Act, a copy of the most recent annual or quarterly report of the Company, and such other reports and documents of the Company as such Holder may reasonably request in availing itself of any rule or regulation of
the SEC allowing a Holder to sell any such securities without registration. 
 5.9 The right to cause the Company to register Registrable
Securities granted to the Holders by the Company under Section 5.2 may be assigned in full by a Holder in connection with a transfer by such Holder of its Registrable Securities, but only if: (i) such transfer may otherwise be effected in
accordance with applicable securities laws; (ii) such Holder gives prior written notice of the proposed transfer to the Company including the name and address of such transferee and a copy of the transfer documents and agreements;
(iii) such transferee agrees in writing with the Company to be bound by and comply with the terms and provisions of this Agreement; (iv) the transferee is an “accredited investor” as that term is defined in Rule 501 of Regulation
D and ; (v) such transfer is otherwise in compliance with this Agreement. Except as specifically permitted by this Section 5.9, the rights of a Holder with 

  

 23 

 
respect to Registrable Securities as set out herein shall not be transferable to any other Person, the Company may impose stop transfer orders with respect
to any such transfer or attempted transfer, and any such transfer or attempted transfer shall be null and void. 
 5.10 The Company shall use
commercially reasonable efforts to cause all Registrable Securities covered by a Registration Statement to be listed on each securities exchange, interdealer quotation system or other market on which similar securities issued by the Company are then
listed. 
 5.11 With the written consent of the Company and the Holders holding at least a majority of the Registrable Securities that are
then outstanding, any provision of this Article 5 may be waived (either generally or in a particular instance, either retroactively or prospectively and either for a specified period of time or indefinitely) or amended. Upon the effectuation of each
such waiver or amendment, the Company shall promptly give written notice thereof to the Holders, if any, who have not previously received notice thereof or consented thereto in writing. 
 6. MISCELLANEOUS. 
 6.1 The Company and the Placement Agents reserve the right to reject the subscription made hereby in whole or in part in each of their sole discretion. Unless terminated earlier in the Placement Agents’ or the Company’s sole
discretion, the Offering will expire on April 30, 2006, (as such date may be extended by agreement of the Placement Agents and the Company in their sole discretion without notice to the Subscribers for an additional 60 days), if the conditions
to closing set forth in Article 4 have not been satisfied or waived by such time. 
 6.2 All notices, requests and other communications under
this Agreement shall be in writing, and shall be sufficiently given if delivered to the addressees in person or by recognized overnight courier, mailed by certified or registered mail, return receipt requested, or by facsimile or e-mail
transmission, as follows: 
  

			
	If to the Company:	  	Innovive Pharmaceuticals, Inc.
		  	555 Madison Avenue, 25th Floor
		  	New York, NY 10022
		  	Attn: President and CEO
		  	Fax: (212) 716-1811
		  	Email: skelly@innovivepharma.com
		
	With a copy to:	  	Wyrick Robbins Yates & Ponton LLP
		  	4101 Lake Boone Trail
		  	Suite 300
		  	Raleigh, NC 27607-7506
		  	Facsimile: (919) 781-4865
		  	Attn: W. David Mannheim, Esq.
		  	Email: dmannheim@wyrick.com
		
		  	and
		
		  	Paramount BioCapital, Inc.
		  	787 Seventh Avenue
		  	48th Floor
		  	New York, NY 10019
		  	Facsimile: (212) 554-4355
		  	Attn: General Counsel

  

 24 

 If to a Subscriber, at such address as such Subscriber shall have provided in writing to the Company or such other
addresses as such Subscriber furnishes by notice given in accordance with this Section or such other address as may be designated in writing hereafter, in the same manner, by such Person. 
 6.3 Except as provided in Section 5.11 above, this Agreement shall not be changed, modified or amended except by a writing signed by the parties to
be charged, and this Agreement may not be discharged except by performance in accordance with its terms or by a writing signed by the party to be charged. 
 6.4 Subject to the provisions of Section 5.9, this Agreement shall be binding upon and inure to the benefit of the parties hereto and to their respective heirs, legal representatives, successors and permitted
assigns. This Agreement sets forth the entire agreement and understanding between the parties as to the subject matter hereof and merges and supersedes all prior discussions, agreements and understandings of any and every nature among them.

 6.5 Upon the execution and delivery of this Agreement by the Subscriber, this Agreement shall become a binding obligation of the
Subscriber with respect to the purchase of the Securities as herein provided; subject, however, to the right hereby reserved to the Company to reject this subscription, enter into similar agreements with other subscribers and to add and/or delete
other Persons as subscribers. 
 6.6 Notwithstanding the place where this Agreement may be executed by any of the parties hereto, the parties
expressly agree that all the terms and provisions hereof shall be construed in accordance with and governed by the laws of the State of Delaware without regard to principles of conflicts of law. 
 6.7 The holding of any provision of this Agreement to be invalid or unenforceable by a court of competent jurisdiction shall not affect any other
provision of this Agreement, which shall remain in full force and effect. If any provision of this Agreement shall be declared by a court of competent jurisdiction to be invalid, illegal or incapable of being enforced in whole or in part, such
provision shall be interpreted so as to remain enforceable to the maximum extent permissible consistent with applicable law and the remaining conditions and provisions or portions thereof shall nevertheless remain in full force and effect and
enforceable to the extent they are valid, legal and enforceable, and no provisions shall be deemed dependent upon any other covenant or provision unless so expressed herein. 
  

 25 

 6.8 It is agreed that a waiver by either party of a breach of any provision of this Agreement shall not
operate, or be construed, as a waiver of any subsequent breach by that same party. 
 6.9 The parties agree to execute and deliver all such
further documents, agreements and instruments and take such other and further action as may be necessary or appropriate to carry out the purposes and intent of this Agreement. 
 6.10 This Agreement may be executed in two or more counterparts each of which shall be deemed an original, but all of which shall together constitute one
and the same instrument. 
 6.11 (a) The Subscriber agrees not to issue any public statement with respect to the Subscriber’s
investment or proposed investment in the Company or the terms of any agreement or covenant between them and the Company without the Company’s prior written consent, except such disclosures as may be required under applicable law or under any
applicable order, rule or regulation. 
 (b) The Company agrees not to disclose the names, addresses or any other information about the
Subscriber, except as required by law or court order and to satisfy its obligations under Article 5. 
 6.12 The Subscriber represents and
warrants that it has neither engaged, consented to nor authorized any broker, finder or intermediary to act on its behalf, directly or indirectly, as a broker, finder or intermediary in connection with the transactions contemplated by this
Agreement. The Subscriber hereby agrees to indemnify and hold harmless the Company from and against all fees, commissions or other payments owing to any such Person acting on behalf of the Subscriber hereunder. 
 6.13 This Agreement (including all exhibits, schedules and amendments hereto) (i) constitutes the entire Agreement and understandings of the parties
hereto and supersedes all prior agreements and understandings, both written and oral, between the parties hereto with respect to the subject matter hereof and (ii) is not intended to confer upon any other Person other than the parties hereto
any rights or remedies hereunder (except for the holders of Registrable Securities as set forth in Article 5). 
 [REMAINDER OF PAGE LEFT
BLANK – ARTICLE 7 FOLLOWS] 
  

 26 

 7. CONFIDENTIAL INVESTOR QUESTIONNAIRE. 
 7.1 The Subscriber represents and warrants that he, she or it comes within one category marked below, and that for any category marked, he, she or it has
truthfully set forth, where applicable, the factual basis or reason the Subscriber comes within that category. ALL INFORMATION IN RESPONSE TO THIS SECTION WILL BE KEPT STRICTLY CONFIDENTIAL except as otherwise required by law or as necessary for
inclusion in the Registration Statement. The undersigned agrees to furnish any additional information which the Company deems necessary in order to verify the answers set forth below. 
  

			
	Category A       	  	The undersigned is an individual (not a partnership, corporation, etc.) whose individual net worth, or joint net worth with his or her spouse, presently exceeds $1,000,000.
		
		  	Explanation: In calculating net worth you may include equity in personal property and real estate, including your principal residence, cash, short-term investments, stock and securities.
Equity in personal property and real estate should be based on the fair market value of such property less debt secured by such property.
		
	Category B       	  	The undersigned is an individual (not a partnership, corporation, etc.) who had an income in excess of $200,000 in each of the two most recent years, or joint income with his or her spouse in
excess of $300,000 in each of those years (in each case including foreign income, tax exempt income and full amount of capital gains and losses but excluding any income of other family members and any unrealized capital appreciation) and has a
reasonable expectation of reaching the same income level in the current year.
		
	Category C       	  	The undersigned is a director or executive officer of the Company which is issuing and selling the Securities.
		
	Category D       	  	The undersigned is a bank; a savings and loan association; insurance company; registered investment company; registered business development company; licensed small business investment
company (“SBIC”); or employee benefit plan within the meaning of Title 1 of ERISA and (a) the investment decision is made by a plan fiduciary which is either a bank, savings and loan association, insurance company or registered investment
advisor, or (b) the plan has total assets in excess of $5,000,000 or (c) is a self directed plan with investment decisions made solely by persons that are accredited investors. (describe entity)
		  	  

		  	  

  

 27 

			
	Category E       	  	The undersigned is a private business development company as defined in section 202(a)(22) of the Investment Advisors Act of 1940. (describe entity)
		  	  

		  	  

		
	 Category F       
	  	The undersigned is either a corporation, partnership, Massachusetts business trust, or non-profit organization within the meaning of Section 501(c)(3) of the Internal Revenue Code, in each case
not formed for the specific purpose of acquiring the Securities and with total assets in excess of $5,000,000.(describe entity)
		  	  

		  	  

		
	 Category G       
	  	The undersigned is a trust with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the Securities, where the purchase is directed by a “sophisticated
investor” as defined in Regulation 506(b)(2)(ii) under the Securities Act.
		
	 Category H       
	  	The undersigned is an entity (other than a trust) in which all of the equity owners are “accredited investors” within one or more of the above categories. If relying upon this Category
alone, each equity owner must complete a separate copy of this Agreement. (describe entity)
		  	  

 The undersigned agrees that the undersigned will notify the Company at any time on or prior to the Closing Date in
the event that the representations and warranties in this Agreement shall cease to be true, accurate and complete. 
 7.2 SUITABILITY
(please answer each question) 
 (a) For an individual Subscriber, please describe your current employment, including the company by which you are employed
and its principal business: 
  

  

  

  

 (b) For an individual Subscriber, please describe any college or graduate degrees held by you: 
  

  

  

  

 28 

 (c) For all Subscribers, please state whether you have you participated in other private placements before:

 YES                            NO        
     
 (d) If your answer to question (d) above was “YES”, please indicate frequency of such prior participation in
private placements of: 
  

							
	 	  	 Public Companies
	  	 Private Companies
	  	 Public or
Private
Biopharmaceutical Companies

	 Frequently
	  	  
	  	  
	  	  

	 Occasionally
	  	  
	  	  
	  	  

	 Never
	  	  
	  	  
	  	  

 (e) For individual Subscribers, do you expect your current level of income to significantly decrease in the
foreseeable future: 
 YES                            NO        
     
 (f) For trust, corporate, partnership and other institutional Subscribers, do you expect your total assets to significantly
decrease in the foreseeable future: 
 YES                            NO        
     
 (g) For all Subscribers, do you have any other investments or contingent liabilities which you reasonably anticipate could
cause you to need sudden cash requirements in excess of cash readily available to you: 
 YES                            NO        
     
 (h) For all Subscribers, are you familiar with the risk aspects and the non-liquidity of investments such as the securities
for which you seek to subscribe? 
 YES                            NO        
     
 (i) For all Subscribers, do you understand that there is no guarantee of financial return on this investment, that an
investment in the Securities is highly speculative and risky and that you run the risk of losing your entire investment? 
 YES                            NO        
     
  

 29 

 (j) For all Subscribers, will you have sufficient readily available cash to fund your obligation to purchase Securities
at the Closing pursuant to your subscription if and when the Closing occurs? 
 YES                            NO        
     
 7.3 MANNER IN WHICH TITLE IS TO BE HELD. (circle one) 
  

			
	(a)	  	Individual Ownership
		
	(b)	  	Community Property
		
	(c)	  	Joint Tenant with Right of Survivorship (both parties must sign)
		
	(d)	  	Partnership*
		
	(e)	  	Tenants in Common
		
	(f)	  	Corporation*
		
	(g)	  	Limited Liability Company*
		
	(h)	  	Trust*
		
	(i)	  	Other

	*	If Securities are being subscribed for by an entity, the attached Certificate of Signatory must also be completed. 

 7.4 NASD AFFILIATION. 
 Are you
affiliated or associated with an NASD member firm (please check one): 
 YES                            NO        
     
 If Yes, please describe: 
  

  

  

  

	*	If Subscriber is a Registered Representative with an NASD member firm, have the following acknowledgment signed by the appropriate party: 

 The undersigned NASD member firm acknowledges receipt of the notice required by Article 3, Sections 28(a) and (b) of the Rules of Fair Practice. 
  

			
	  

	Name of NASD Member Firm
		
	By:	 	  

		 	Authorized Officer
		
	Date:	 	  

  

 30 

 7.5 The undersigned is informed of the significance to the Company of the foregoing representations and
answers contained in the Confidential Investor Questionnaire contained in this Section 7 and such answers have been provided under the assumption that the Company will rely on them. 
  

			
	Signature:	  	  

		
		  	  

		  	(if purchased jointly)
		
	Print:	  	  

		
		  	  

		  	(if purchased jointly)
		
	Date:	  	  

 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK 
 SIGNATURE PAGE TO FOLLOW] 
  

 31 

 [Signature Page] 
  

			
	Aggregate Purchase Price:
$                                       
     
		
	  
	  	  

	Signature	  	Signature (if purchasing jointly)
		
	  
	  	  

	Name Typed or Printed	  	Name Typed or Printed
		
	  
	  	  

	Entity Name	  	Entity Name
		
	  
	  	  

	Address	  	Address
		
	  
	  	  

	City, State and Zip Code	  	City, State and Zip Code
		
	  
	  	  

	Telephone-Business	  	Telephone-Business
		
	  
	  	  

	Telephone-Residence	  	Telephone-Residence
		
	  
	  	  

	Facsimile-Business	  	Facsimile--Business
		
	  
	  	  

	Facsimile-Residence	  	Facsimile—Residence
		
	  
	  	  

	Email Address	  	Email Address
		
	  
	  	  

	Tax ID # or Social Security #	  	Tax ID # or Social Security #
	
	Name in which securities should be
issued:                                       
             
	
	Dated:                          , 2006

  

	INVESTORS:	PLEASE COMPLETE THE REGISTRATION QUESTIONNAIRE ATTACHED HERETO AS APPENDIX A. 

  

	This	Subscription Agreement is agreed to and accepted by the Company as of
                        , 200    . 

  

			
	INNOVIVE PHARMACEUTICALS, INC.
		
	By:	 	 /s/ Steven Kelly

	Name:	 	Steven Kelly
	Title:	 	President and Chief Executive Officer

  

 32 

 CERTIFICATE OF SIGNATORY 
 (To be completed if Securities are 
 being subscribed for by an entity) 
 I,
                            , am the
                             of
                             (the “Entity”). 
 I certify that I am empowered and duly authorized by the Entity to execute and carry out the terms of the Subscription Agreement and to purchase and hold
the Securities, and certify further that the Subscription Agreement has been duly and validly executed on behalf of the Entity and constitutes a legal and binding obligation of the Entity. 
 IN WITNESS WHEREOF, I have set my hand this      day of
                        , 2006. 
  
  

	
	  

	 (Signature)

  

 33

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