Document:

Amended and Restated Employment and Noncompetition Agreement

 Exhibit 10.43 
 THIS AGREEMENT CONTAINS AN ARBITRATION PROVISION PURSUANT TO 
 THE FEDERAL ARBITRATION ACT (9 U.S.C. § 1 ET SEQ.) AND/OR THE S.C. 
 UNIFORM ARBITRATION ACT (S.C. CODE § 15-48-10 ET SEQ.) 
 AMENDED AND RESTATED

 EMPLOYMENT AND NONCOMPETITION AGREEMENT 
 THIS AMENDED AND RESTATED EMPLOYMENT AND NONCOMPETITION AGREEMENT (the “Agreement”) is made and entered into by and between
Blackbaud, Inc., a Delaware corporation (the “Company”), and Marc Chardon (“Executive”). 
 RECITALS 
 WHEREAS, the Company and Executive are parties to that November 28, 2005 Employment and
Noncompetition Agreement (the “Original Agreement”); 
 WHEREAS, the parties desire to amend and restate the
Original Agreement pursuant to the terms of this Agreement; 
 WHEREAS, the Company desires to continue employing Executive as
the President and Chief Executive Officer of the Company; 
 WHEREAS, Executive is willing to accept continued employment in
such positions with the Company in accordance with the terms of this Agreement; and 
 WHEREAS, the Original Agreement is
superseded and replaced in its entirety by this Agreement upon the parties’ execution of this Agreement; 
 NOW, THEREFORE,
in consideration of the foregoing premises and the mutual covenants of the parties set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are acknowledged, IT IS HEREBY AGREED AS FOLLOWS: 
 AGREEMENT 
 1. Employment; Term. Subject to and upon the terms and conditions herein provided, the Company hereby agrees to employ Executive and Executive hereby agrees to be employed by the Company for the
term of this Agreement, which term shall begin as of January 28, 2010 (the “Effective Date”) and shall continue thereafter until December 31, 2012 (the “Initial Term”), unless Executive’s employment
is earlier terminated as provided in Section 4 herein. After the expiration of the Initial Term, this Agreement shall automatically renew for successive one (1) year terms, which terms will run from January 1st to December 31st annually (each a “Renewal Term”). In the event either party elects not to renew this
Agreement prior to the expiration of the Initial Term or any Renewal Term, the non-renewing party will provide no less than ninety (90) days’ advance written notice of an intention not to renew the Agreement. For purposes of this
Agreement, any time period in which Executive is employed hereunder, whether during the Initial Term or any Renewal Term, will be referred to as the “Term.” 

 2. Executive Responsibilities. During the Term, Executive shall serve as President
and Chief Executive Officer of the Company, and shall have the power and authority to conduct the business of the Company commensurate with the office of Chief Executive Officer. Executive shall report directly to the Company’s Board of
Directors (the “Board”). Executive shall perform duties consistent with Executive’s knowledge, experience and position with the Company. In performing such duties, Executive shall be subject to and shall abide by all written
policies and procedures developed by the Company for, and all the written rules and regulations applicable to, senior executives of the Company, and such written policies, procedures, rules and regulations shall be provided to Executive. 

During the Term, and excluding any periods of vacation and sick leave to which Executive is entitled, Executive shall devote
substantially all of his business time, energies, skills and attention to the affairs and activities of the Company and the discharge of his duties and responsibilities; provided, however, that Executive shall be allowed to attend to
personal and family affairs and investments and he shall be allowed to serve on the board of directors of no more than three (3) for-profit or not-for-profit entities that are not affiliated with the Company and any additional boards of
directors as have been or may be approved in advance by the Chairman of the Board; and provided further, however, that while carrying out such activities and while serving on such boards, Executive’s ability to devote the
required time, energies, skills and attention to perform his duties hereunder will not be impaired. During the Term, the Board shall nominate Executive to be a member of the Board prior to the expiration of each of his terms as a director
of the Company. 
 3. Compensation and Benefits. 
 3.1 Base Salary. In consideration for the services provided hereunder, during the Term of this Agreement, the Company shall pay to
Executive an annual base salary of no less than $564,000.00, subject to applicable federal, state and local payroll taxes and other withholdings required by law or properly requested by Executive (as increased from time to time, the “Base
Salary”). The Base Salary shall not be decreased at any time (including after any increase) without Executive’s written consent. The Base Salary shall be payable in conformity with the Company’s customary payroll practices. The
Board (or a committee thereof) will consider increases to the Base Salary on an annual basis as part of the Company’s regular executive compensation review process; provided, however, that such Base Salary shall be increased
solely at the discretion of the Board (or a committee thereof). 
 3.2 Bonus. In each calendar year from January 1,
2010 to the end of the Term of this Agreement, Executive shall be eligible to receive a bonus (“Bonus Compensation”) targeted at 100% of Executive’s then current Base Salary. The payout scale and the formula to be used to
calculate the Bonus Compensation payable to Executive for calendar year 2010 is set out in Exhibit A hereto and will be mutually agreed upon annually for calendar years after 2010. It is agreed that the formula used to calculate the target
Bonus Compensation payable to Executive for each calendar year shall be reasonable and that, pursuant to such formula, Executive’s target Bonus Compensation for each calendar year shall be reasonably achievable. In the event such formula
changes by mutual agreement of the parties, the parties will sign and attach such revised formulae, if any, to Exhibit A (e.g., Exhibit A-1, etc.). Executive is eligible to earn up to two (2) times the annual target bonus if
certain performance goals are met, as

  

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further described in Exhibit A hereto. Bonus Compensation is payable in the year following the year in which it is earned, within thirty (30) calendar days after finalization
of financial results used to calculate the amount of Bonus Compensation. The Board (or a committee thereof) will consider increases to the Bonus Compensation on an annual basis as part of the Company’s regular executive compensation review
process; provided, however, that such Bonus Compensation shall be increased solely at the discretion of the Board (or a committee thereof). 
 3.3 Additional Compensation and Benefits. From January 1, 2010 to the end of the Term of this Agreement, Executive shall also be eligible for the following additional compensation and
benefits: 
 a. Executive, at the Company’s expense, shall be eligible to participate in all employee
benefit plans and fringe benefits (including post-retirement benefit plans and programs, if any) as may be provided by the Company from time to time on the same basis as other senior executives of the Company are eligible, subject to and to the
extent that Executive is eligible under such benefit plans in accordance with their respective terms. 
 b.
Executive shall be entitled to reasonable periods of paid vacation, personal and sick leave during the Term in accordance with the Company’s policies regarding vacation and other leaves for senior executives of the Company. 
 c. The Company shall pay or reimburse Executive for all of his out-of-pocket expenses reasonably incurred in the performance
of his duties hereunder on behalf of the Company, including, but not limited to, overnight delivery charges, long distance telephone and facsimile charges and travel expenses (including airfare, hotels, car rental expenses and meals), all in
accordance with the Company’s expense reimbursement policy. Payment shall be due after the Company’s receipt of Executive’s invoice or expense report therefor in accordance with the Company’s expense reimbursement policies. In
addition, the Company and Executive agree that the Company shall pay Executive’s counsel directly for Executive’s legal expenses incurred in connection with the negotiation and drafting of this Agreement; provided, however,
that the Company’s obligation to pay such expenses shall be capped at $15,000.00. 
 d. During the Term, the
Company shall provide Executive with health, life and short and long-term disability insurance, in scope and coverage equivalent to that provided to other senior executives of the Company; provided, however, that the short and
long-term disability insurance coverage shall be for an amount not less than 60% of Executive’s Base Salary and such coverage may be provided by the Company supplementing benefits provided under the Company’s existing group disability
policy, as necessary. 
 e. Executive will be granted stock appreciation rights (each a “Stock
Appreciation Right”) on the grant dates and in the amounts provided in the table below. Subject to the following sentence and Subsections 5.2(d) and 5.3(a),

  

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100% of each Stock Appreciation Right will vest on the vesting date provided in the table below, as long as Executive remains an employee of the Company as of the relevant vesting date. The terms
and conditions of each Stock Appreciation Right will be governed by and conditioned upon the execution of a stock appreciation rights agreement between Executive and the Company. 
  

					
	 Grant Date
	  	Number of Shares Subject To
Stock Appreciation Right	  	Vesting Date
	 02/10/2010
	  	100,000	  	11/10/2010
	 05/10/2010
	  	100,000	  	11/10/2011
	 08/10/2010
	  	100,000	  	11/12/2012

 The strike price for the shares subject to the Stock Appreciation Rights will be the
fair market value of the Company’s common stock on the grant date (i.e., the closing sales price for the Company’s common stock on the grant date as quoted on the stock exchange on which the Company’s stock is then traded).

 f. The Company will grant Executive an annual equity bonus payable in restricted stock (or
cash if the Company does not then have sufficient shares reserved under a stock plan) (each a “Restricted Stock Bonus”), with a value of no less than $562,500.00. Each Restricted Stock Bonus shall be awarded at the same time as the
annual long term incentive plan grants are awarded to other Company senior executives, but shall be granted whether or not such grants are awarded to other Company senior executives. The terms and conditions of each Restricted Stock Bonus will be
governed by and conditioned upon the execution of a separate restricted stock agreement between Executive and the Company which the parties agree to enter into. The number of shares to be included in each Restricted Stock Bonus will be determined by
dividing the value of such Restricted Stock Bonus by the average closing sales price of the Company’s common stock for the thirty (30) trading days preceding the grant date as quoted on the stock exchange on which the Company’s common
stock is then traded. As further detailed in the restricted stock agreements between Executive and the Company, the vesting of the restricted shares under each Restricted Stock Bonus will be as follows:  1/4th of the shares included in each Restricted Stock Bonus will vest
on each twelve-month anniversary of the grant date, provided that Executive remains employed by the Company as of the relevant vesting date. As further detailed in the restricted stock agreements between Executive and the Company, the vesting of any
unvested shares included in any Restricted Stock Bonus will accelerate and such shares will become fully vested upon a Change in Control (as defined in Section 4.7 hereof). 
 g. The Company will also grant Executive an annual equity bonus payable in stock appreciation rights (or cash if the Company
does not then have sufficient shares reserved under a stock plan) (each a “Stock Appreciation Rights Bonus”) with a value between zero and $1,000,000 (and with a target value of $500,000.00). The value of each Stock Appreciation
Rights Bonus, if any, will be determined by the Board (or a committee thereof) in its sole discretion based on a

  

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review of Executive’s performance during the Company’s regular executive compensation review process. The number of shares subject to each Stock Appreciation Rights Bonus, if any, will
be determined by dividing the value of the Stock Appreciation Rights Bonus by the value of a stock appreciation right covering one share of the Company’s common stock. The value of a stock appreciation right covering one share of the
Company’s common stock will be determined as if its strike price were the average closing sales price of the Company’s common stock for the thirty (30) trading days preceding the grant date as quoted on the stock exchange on which the
Company’s common stock is then traded and the value of such stock appreciation right will be determined by valuing it as if it were a stock option, using the Black-Scholes valuation methodology. Notwithstanding the foregoing method of
calculating the number of shares subject to each Stock Appreciation Rights Bonus, if any, the strike price for the Stock Appreciation Rights Bonus will be the closing sales price for the Company’s common stock on the grant date as quoted on the
stock exchange on which the Company’s common stock is then traded. Each Stock Appreciation Rights Bonus will be granted within thirty (30) calendar days following the determination of the value thereof by the Board (or a committee thereof)
and, subject to the terms and conditions of stock appreciation rights agreements between Executive and the Company,  1/4th of the shares subject to the Stock Appreciation Rights Bonus will vest on each twelve-month anniversary of the grant date, provided that Executive remains employed by the Company
as of the relevant vesting date. 
 With respect to each of the items of benefit listed in this Section 3 and any
vesting or other criteria for eligibility applicable thereto, Executive shall be credited with length of service beginning as of the initial date of his employment by the Company, except as otherwise required by law. The Company covenants and agrees
that the terms of each restricted stock agreement and stock appreciation rights agreement between Executive and the Company evidencing a Restricted Stock Bonus, the Stock Appreciation Rights and/or any Stock Appreciation Rights Bonus will
be in all respects consistent with the terms of this Agreement. 
 4. Termination. 
 4.1 For Cause by the Company. During the Term, the Company may terminate Executive’s employment under this Agreement at any time
for “Cause” and Executive shall thereafter be entitled to no compensation or benefits under this Agreement or otherwise, except as provided in Section 5.1 hereof. For purposes of this Agreement, “Cause” means:

 a. Executive’s conviction of, or plea of no contest to, any crime (whether or not involving the Company)
that constitutes a felony in the jurisdiction in which Executive is charged, other than unintentional motor vehicle felonies, routine traffic citations or a felony predicated exclusively on Executive’s Vicarious Liability. “Vicarious
Liability” for purposes of this Agreement shall mean any act for which Executive is constructively liable, including, but not limited to, any liability that is based on acts of the Company for which Executive is charged solely as a result of
his offices with the Company and in which he was not directly involved or did not have prior knowledge of such actions or intended actions; 
  

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 b. any act of theft, fraud or embezzlement, or any other willful misconduct
or willfully dishonest behavior by Executive, which is materially detrimental to the reputation, business, and/or operations of the Company; 
 c. Executive’s willful and repeated failure or refusal to perform his reasonably-assigned duties (consistent with past practice of the Company) under this Agreement in accordance with Section 2
(other than due to his incapacity due to illness or injury), provided that such willful and repeated failure or refusal is not corrected as promptly as practicable, and in any event within thirty (30) calendar days after Executive shall have
received written notice from the Company stating the nature of such failure or refusal; and/or 
 d.
Executive’s willful violation of any of his material obligations contained in Section 7 herein or in that certain Employee Nondisclosure and Developments Agreement dated as of November 28, 2005 and attached as Exhibit B hereto,
which violation materially injures the Company. 
 The Company may terminate Executive for Cause only after Executive has been
given an opportunity to be heard before the full Board, with the assistance of counsel, and, after such hearing, the Board gives the Executive written notice confirming that, in the good faith judgment of two-thirds of the members of the Board
(other than the Executive), “Cause” for terminating the Executive’s employment exists. The Executive’s termination for Cause shall thereupon take effect immediately. For purposes of this Agreement, no act or omission by Executive
shall be considered “willful” unless it is done or omitted in bad faith or without reasonable belief that the act or omission was in or not contrary to the best interests of the Company. Any act or omission based upon a resolution duly
adopted by the Board or upon advice of counsel for the Company shall be conclusively presumed to have been done or omitted in good faith and with a reasonable belief that the act or omission was in or not contrary to the best interests of the
Company. If the Company terminates Executive’s employment for Cause, the provisions of Section 5.4 shall also apply. 
 4.2 Termination Without Cause by the Company. During the Term, the Company may terminate Executive’s employment under this Agreement at any time and for any reason without Cause. If the Company terminates Executive’s
employment pursuant to the provisions of this Section 4.2, Executive shall receive the compensation and benefits described in Sections 5.1 and 5.2 hereof. In the event there is a Change in Control (as defined in Section 4.7 hereof) and if
the Company terminates Executive’s employment pursuant to the provisions of this Section 4.2 within twelve (12) months after a Change in Control, then Executive shall also receive any additional benefits described in Section 5.3
hereof. 
 4.3 Termination Without Good Reason by Executive. During the Term, Executive may voluntarily terminate his
employment under this Agreement by giving the Company written notice no less than sixty (60) calendar days in advance of the effective date of such termination. Any such voluntary termination by Executive shall not constitute a breach of

  

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this Agreement. If Executive voluntarily terminates his employment pursuant to the provisions of this Section 4.3, Executive shall thereafter be entitled to no further compensation or
benefits under this Agreement or otherwise, except as provided in Sections 5.1 and 5.5 hereof. 
 4.4 Termination for Good
Reason by Executive. During the Term, Executive may terminate his employment under this Agreement at any time for “Good Reason.” For purposes of this Agreement, “Good Reason” means any of the following occurrences,
provided, however, that Executive must first provide detailed written notice to the Company of such occurrence within sixty (60) days after Executive becomes aware of such occurrence and provided further that “Good
Reason” will not exist until the occurrence goes uncorrected by the Company for more than thirty (30) days after receiving detailed written notice from Executive: 
 a. Any materially adverse change or diminution in the office, title, duties, powers, authority or responsibilities of
Executive; 
 b. A failure of the Company to pay or provide Executive with any of the following compensation or
benefits that have become due and payable to Executive: (i) Base Salary, (ii) Bonus Compensation, (iii) Restricted Stock Bonus, (iv) Stock Appreciation Rights Bonus, (v) other compensation (including restricted stock and/or
any stock appreciation rights described in Section 3.3 hereof), (vi) benefits or (vii) reimbursements (unless there is a good faith dispute over reimbursement of expenses); 
 c. A reduction in Executive’s then Base Salary, Bonus Compensation opportunity, Restricted Stock Bonus opportunity,
Stock Appreciation Rights Bonus opportunity, or other compensation (including restricted stock and/or any stock appreciation rights described in Section 3.3 hereof), or a material reduction of any material employee benefit or perquisite enjoyed
by him (other than as consented to in writing by Executive); 
 d. Failure of the Company to obtain the
assumption in writing of its obligation to perform this Agreement by any purchaser of all or substantially all of the assets of the Company within fifteen (15) calendar days after a sale or transfer of such assets; 
 e. Failure of Executive to be elected as a director of the Company at or prior to the expiration of each of his terms as a
director of the Company during the Term of this Agreement or his removal from such position during such Term; and/or 
 f. A relocation of the Company’s principal office, or Executive’s own office location as assigned to him by the Company, to a location more than forty (40) miles from Charleston, S.C. In the event that Executive elects not to
terminate his employment under this Subsection 4.4(f), the Company shall promptly reimburse Executive for the reasonable expenses he incurs in relocating from his then-current location to the location of his new office, including, without
limitation, all moving expenses, legal expenses and commissions associated with selling his primary residence and all closing costs relating to his acquisition of a residence in the area of his new office. 
  

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 In the event Executive terminates employment with the Company pursuant to the provisions of
this Section 4.4, Executive shall receive the compensation and benefits described in Sections 5.1 and 5.2 hereof. In the event there is a Change in Control as defined in Section 4.7 hereof and if Executive terminates his employment with
the Company pursuant to the provisions of this Section 4.4 within twelve (12) months after a Change in Control, then Executive shall also receive any additional benefits described in Section 5.3 hereof. 
 4.5 Termination for Disability or Death. During the Term, Executive’s employment may be terminated by either party in the event
Executive suffers a physical or mental disability (as defined below), as determined in the reasonable opinion of a medical doctor selected by the agreement of the Company and Executive. In the event that the parties cannot agree on a medical doctor,
each party shall select a medical doctor and the two doctors shall select a third who shall be the approved medical doctor for this purpose. To the extent that the expenses associated with any such medical determination are not covered by medical
insurance, the Company shall bear all such costs. Executive will be deemed to suffer a disability if Executive is unable, due to a physical or mental disability, to perform the essential functions of his job, with or without a reasonable
accommodation, for a period of ninety (90) consecutive calendar days or one hundred eighty (180) nonconsecutive calendar days during any three hundred sixty five (365) calendar day period. If Executive is terminated because of a
disability under this Section 4.5, he shall be entitled to such benefits as are generally available under the Company’s disability insurance policies, if any, and any additional coverage required pursuant to Subsection 3.3(d). If Executive
dies or is terminated due to a disability under this Section 4.5, Executive or his estate shall be entitled to only the compensation and benefits described in Section 5.1 and 5.6 hereof. 
 4.6 Termination due to Non-Renewal. During both the Initial Term and any Renewal Term, either party may allow this Agreement and
Executive’s employment hereunder to terminate by notifying the other party of an intention not to renew the Initial Term or a Renewal Term, as applicable, in accordance with the provisions of Section 1 hereof. If Executive notifies the
Company of his intention not to renew the Term in accordance with Section 1 and Executive’s employment hereunder thereafter terminates upon the expiration of the Term, then Executive shall be entitled to only the compensation and benefits
described in Sections 5.1 and 5.5 hereof. If the Company notifies Executive of its intention not to renew the Term in accordance with Section 1 and Executive’s employment hereunder thereafter terminates upon the expiration of the Term,
then Executive shall be entitled to only the compensation and benefits described in Sections 5.1 and 5.7 hereof. 
 4.7
Definition of Change in Control. For purposes of this Agreement only, a “Change in Control” shall mean the consummation of (a) a merger or consolidation in which the shareholders of the Company immediately prior to the
merger or consolidation cease to own at least 50% of the combined entity immediately following the merger or consolidation; (b) a sale of all or substantially all of the assets of the Company; (c) the acquisition by any individual, entity
or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities and Exchange Act of 1934, as amended) of beneficial ownership of any capital stock of the

  

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Company, if, after such acquisition, such individual, entity or group owns more than 50% of either (i) the then-outstanding common stock of the Company or (ii) the combined voting power
of the then-outstanding securities of the Company entitled to vote in the election of directors; or (iv) the liquidation or dissolution of the Company. 
 4.8 Board Seat. Upon termination of Executive’s employment by either party for any reason, Executive will resign his position on the Board and any other positions he may hold with or for the
benefit of the Company and/or its affiliates, including, but not limited to, as an officer and/or director of any Company subsidiaries. 
 5. Payment Obligations Upon Termination. 
 5.1 Accrued Compensation and
Benefits. Upon termination of Executive’s employment hereunder by either party for any reason, Executive (or his heirs, successors, personal representatives or assigns) will receive from the Company: (a) payment for any accrued, unpaid
Base Salary through the termination date; (b) payment for any Bonus Compensation which has been awarded but not paid for calendar years prior to the year in which termination of Executive’s employment occurs, (c) payment for any
accrued, unpaid vacation time through the termination date; (d) reimbursement for any unreimbursed expenses in accordance with the Company’s policies; (e) participation in plans, programs, arrangements and/or other agreements of the
Company and any affiliate through the termination date and thereafter in accordance with the terms thereof; and (f) payment of other amounts, entitlements and/or benefits, if any, in accordance with applicable plans, programs, arrangements
and/or other agreements of the Company and any affiliate (collectively, the “Accrued Compensation”). 
 5.2
Termination by the Company Without Cause or by Executive for Good Reason. In addition to payment of the Accrued Compensation due to Executive pursuant to Section 5.1 hereof, if the Company terminates Executive’s employment hereunder
without Cause during the Term (other than due to Executive’s death or disability) or if Executive terminates his employment hereunder for Good Reason, then the Company will provide the following severance payments, benefits and entitlements to
Executive (provided, however, that the Company will not have any obligation to pay any amounts under Subsections (a) and (b) of this Section 5.2 or to provide the benefits and entitlements described in Subsections
(c) and (d) of this Section 5.2 until after Executive has executed Exhibit C hereto within sixty (60) days of his termination date and until after the expiration of any revocation periods required by applicable law):

 (a) The Company will make a lump-sum payment equal to a pro rata share (based upon the number of days in the
year of termination through his termination date relative to 365) of Executive’s annual target Bonus Compensation at the rate in effect on the termination date, less any required taxes and withholdings, payable within sixty (60) calendar
days of the termination date; 
 (b) The Company will continue paying Executive his annual Base Salary at the
rate in effect on the termination date, less any required taxes and withholdings, for a period of twenty four (24) months after the termination date; 
  

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 (c) The Company will continue Executive’s participation in the
Company’s health benefits at the same level as in effect on the termination date for a period of eighteen (18) months after the termination date or until Executive is eligible (following the expiration of any applicable waiting periods)
for equivalent health benefits from another employer, whichever is sooner. If the Company’s health benefit plans or programs do not allow for Executive’s continued participation in such plans or programs after termination of employment,
the Company agrees to reimburse Executive for continuing coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”) for a period of eighteen (18) months after the termination date; provided,
however, that such reimbursement will be conditioned upon Executive’s timely election of continued coverage under COBRA; and 
 (d) Executive will be entitled to twelve (12) months acceleration of the vesting of any then-unvested stock options, stock appreciation rights and restricted stock granted to Executive pursuant to
this Agreement, and/or the Original Agreement or pursuant to any other written agreement between Executive and the Company, such that all of Executive’s stock options, stock appreciation rights and restricted stock will be vested on
Executive’s termination date as if Executive’s termination date were twelve (12) months later. All of Executive’s stock options, stock appreciation rights and restricted stock which remain unvested after giving effect to the
acceleration provided for in the preceding sentence, will be forfeited as of the termination date. Executive will have two (2) years after termination of employment with the Company to exercise all of Executive’s vested stock appreciation
rights granted hereunder. Pursuant to Executive’s equity award agreements, Executive will have 90 days after termination of employment with the Company to exercise all of Executive’s vested stock appreciation rights not granted hereunder
and 180 days after termination of employment with the Company to exercise all of Executive’s vested stock options. In no event shall Executive be able to exercise any equity awards later than the specified expiration dates of such awards.

 5.3 Termination Within 12 Months After a Change in Control. In addition to payment of any Accrued Compensation due to
Executive pursuant to Section 5.1 hereof, if a Change in Control (as defined in Section 4.7 hereof) occurs, and, within 12 months after a Change in Control, the Company terminates Executive’s employment hereunder without Cause (and
not due to Executive’s death or disability) or if Executive terminates his employment hereunder for Good Reason, then the Company will provide the following severance payments, benefits and entitlements to Executive (provided,
however, that the Company will not have any obligation to pay any amounts under this Section 5.3 or to provide the benefits and entitlements described in this Section 5.3 until after Executive has executed Exhibit C hereto,
which will be appropriately modified to provide for the payments, benefits and other entitlements to which Executive is entitled pursuant to this Section 5.3, within sixty (60) days of his termination date and until after the expiration of
any revocation periods required by applicable law) 
 (a) The Company will provide Executive with the severance
payments, benefits and entitlements described in Subsections 5.2(a)-(c). In

  

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addition to those payments and benefits, any then-unvested options, restricted stock and/or stock appreciation rights granted to Executive pursuant to this Agreement and/or the Original Agreement
or pursuant to any other written agreement between the Company and Executive will immediately be vested and shall be and remain exercisable by Executive for the balance of their original terms. 
 (b) Notwithstanding anything contained in this Agreement to the contrary, if any payments to be made to or for the benefit of
Executive are deemed to be “parachute payments” as that term is defined in Section 280G(b)(2) of the Internal Revenue Code of 1986, as amended (the “Code”), Executive may elect either to receive the full payment of
all severance payments, benefits and entitlements hereunder or to have the Company reduce the payment thereof to the minimum extent necessary to avoid imposition of any excise tax on Executive under Section 4999 of the Code or the disallowance
of a deduction to the Company under Section 280G of the Code. 
 5.4 Termination by the Company for Cause. If the
Company terminates Executive’s employment hereunder for Cause at any time during the Term, Executive will be entitled only to the compensation, benefits and entitlements described in Section 5.1 hereof and no further compensation, benefits
or entitlements. In addition, all unexercised stock options and stock appreciation rights, whether vested or unvested, will immediately terminate upon Executive’s termination for Cause and all unvested restricted stock held by
Executive will be forfeited immediately upon such termination. 
 5.5 Termination by Executive Without Good Reason or by
Executive for Nonrenewal. If Executive terminates employment with the Company without Good Reason during the Term, or if Executive delivers notice of an intention not to renew the Term in accordance with Section 1 and Executive’s
employment hereunder thereafter terminates upon the expiration of the Term, Executive will be entitled only to the compensation, benefits and entitlements described in Section 5.1 hereof. In addition, all of Executive’s then-unvested stock
options and stock appreciation rights will immediately terminate upon such termination of Executive and all of Executive’s unvested restricted stock will be forfeited immediately upon such termination. Executive will have one hundred eighty
(180) calendar days after termination of employment with the Company (but in no event later than any specified expiration date of such stock options or stock appreciation rights) to exercise any and all vested stock options and stock
appreciation rights; thereafter, any unexercised options and stock appreciation rights will terminate. 
 5.6 Termination Due
to Death or Disability. If Executive’s employment hereunder is terminated due to death or disability during the Term, Executive will be entitled to the compensation and benefits described in Sections 5.1 and 5.2(a) hereof. In addition, all
of Executive’s then-unvested stock options and stock appreciation rights will immediately terminate upon such termination of Executive and any unvested restricted stock will be forfeited immediately upon such termination. Executive will have
twelve (12) months after termination of employment with the Company (but in no event later than any specified expiration of such stock options or stock appreciation rights) to exercise any and all vested stock options and stock appreciation
rights; thereafter, any unexercised stock options and stock appreciation rights will terminate. 
  

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 5.7 Termination by the Company due to Non-Renewal.
 (a) In addition to the
compensation and benefits described in Section 5.1 hereof, if the Company notifies Executive of its intention not to renew the Term in accordance with Section 1, other than in the circumstances described in Section 5.7(b), and
Executive’s employment hereunder thereafter terminates upon the expiration of the Term, then the Company will treat Executive consistently with its past practice of providing severance benefits to other executive employees, based upon such
executives’ level and tenure, and will provide the following severance payments, benefits and entitlements to Executive (provided, however, that the Company will not have any obligation to pay any amounts under this Section 5.7 until after
Executive has executed a release of claims favoring the Company in substantially the form attached as Exhibit C hereto, which will be appropriately modified to comply with the Company’s obligations pursuant to this Section 5.7, within
sixty (60) days of his termination date and until after the expiration of any revocation periods required by applicable law): 
 (i) The Company will make a one-time, lump sum payment equal to twelve (12) months of Executive’s then current Base Salary, less any required taxes and withholdings; and 
 (ii) All of Executive’s then-unvested stock options and stock appreciation rights will immediately terminate upon
such termination of Executive and all of Executive’s unvested restricted stock will be forfeited immediately upon such termination. Executive will have twenty four (24) months after termination of employment with the Company (but in
no event later than any specified expiration date of such stock options or stock appreciation rights) to exercise any and all vested stock options and stock appreciation rights granted hereunder; thereafter, any unexercised options and stock
appreciation rights will terminate. 
 (b) In the event that, during discussions which lead to a
Change in Control or within 12 months after a Change in Control, the Company delivers notice of its intention not to renew the Term in accordance with Section 1 and Executive’s employment hereunder thereafter terminates
upon the expiration of the Term, such termination shall be treated for all purposes of this Agreement as a termination by the Company of Executive’s employment under this Agreement without Cause within 12 months after a Change in Control
and accordingly, in such event, Executive shall be entitled to receive the payments, benefits and entitlements provided for in Sections 5.1 and 5.3 on the terms and conditions set forth in Section 5.3. 
  

  

 12 

 5.8 No Mitigation or Offset. In the event of any termination of employment under
Section 4, Executive shall be under no obligation to seek other employment and there shall be no offset against amounts due Executive under this Agreement on account of any remuneration attributable to any subsequent employment that he may
obtain or other service that he may provide, except as provided in Subsection 5.2(c) hereof. 
 6. Nondisclosure;
Developments; Return of Materials. As a condition of employment with the Company, Executive agrees that the November 28, 2005 Employee Nondisclosure and Developments Agreement between Executive and the Company, a copy of which is attached
hereto as Exhibit B and incorporated herein by reference as if fully set out herein, remains in full force and effect. Executive further agrees that upon termination of this Agreement, or upon request by the Company, Executive shall turn over
to the Company all documents, files, office supplies and any other material or work product in his possession or control which were created pursuant to or derived from Executive’s services to the Company. Notwithstanding any other provision
hereof, Executive will be entitled to retain (a) papers and other materials of a personal nature, including without limitation personal photographs, personal correspondence, personal diaries, personal calendars and personal rolodexes, personal
phone books and files relating to his personal affairs, (b) information showing Executive’s compensation or relating to his reimbursement of business related expenses, (c) information Executive reasonably believes may be needed for
the planning and preparation of his personal tax returns and (d) copies of plans, programs, arrangements and other agreements with the Company or an affiliate relating to Executive’s employment with or separation from the Company.

 7. Noncompetition. In exchange for the Company’s one-time, lump sum payment to Executive of the sum of Five
Hundred Dollars ($500.00), less any withholdings required by law, and other consideration offered hereunder, the receipt and sufficiency of which is hereby acknowledged by Executive, Executive agrees as follows. 
 7.1 Noncompetition Provisions. Executive recognizes and agrees that the Company has many substantial, legitimate business interests
that can be protected only by Executive agreeing not to compete with the Company or its subsidiaries under certain circumstances. These interests include, without limitation, the Company’s contacts and relationships with its customers, the
Company’s reputation and goodwill in the industry, the financial and other support afforded by the Company, and the Company’s rights in its confidential information. Executive therefore agrees that during his employment with the Company
and for the twelve (12) month period of time following the termination of such employment by either party for any reason, he will not, without the prior written consent of the Company, engage in any of the following activities in the United
States (the “Protected Zones”), relating to the Protected Businesses (as defined below): 
 a.
engage in, manage, operate, control or supervise, or participate in the management, operation, control or supervision of, any business or entity which provides products or services directly competitive with those being actively developed,
manufactured, marketed, sold or otherwise provided by the Company or its subsidiaries as of the date hereof (the “Protected Businesses”) in the Protected Zones; 
  

 13 

 b. have any ownership or financial interest, directly or indirectly, in any
entity in the Protected Zones engaged in the Protected Businesses, including, without limitation, as an individual, partner, shareholder (other than as an owner of an entity in which Executive owns less than 5% of the economic interests), officer,
directly, executive, principal, agent or consultant; 
 c. solicit, acquire or conduct any Protected Business
from or with any customers of the Company or its subsidiaries (as defined below) in the Protected Zones; 
 d.
solicit any of the employees or independent contractors of the Company or its subsidiaries or induce any such persons to terminate their employment or contractual relationships with any such entities; and/or 
 e. serve as an officer or director of any entity engaged in any of the Protected Businesses in the Protected Zones.

 For purposes of this Section 7, customers of the Company or its subsidiaries shall include those customers to whom the
Company or its subsidiaries were providing products or services at the termination of Executive’s employment, or had proposals outstanding for the provision of services, at the time of such termination. 
 7.2 Separate Covenants. The parties understand and agree that the noncompetition agreement set forth in this Section 7 shall be
construed as a series of separate covenants not to compete: one covenant for each country, state and province within the Protected Zone, one for each separate line of business of the Company, and one for each month of the noncompetition period. If
any restriction set forth in this Section 7 is held by a court of competent jurisdiction to be unenforceable with respect to one or more geographic areas, lines of business and/or months of duration, then Executive agrees, and hereby submits,
to the reduction and limitation of such restriction to the minimal extent necessary so that the provisions of this Section 7 shall be enforceable. 
 7.3 Limitations. Nothing contained in this Agreement or in Exhibit B attached hereto shall prohibit Executive from utilizing his skill, acumen or experience after the termination of his
employment with the Company, provided that such activities do not otherwise violate this Section 7. In addition, nothing in Section 7 shall prohibit Executive from becoming an employee of, or from otherwise providing services to, a
separate division or operating unit of a multi-divisional business or enterprise (a “Division”) if: (i) the Division in which Executive is employed, or to which Executive provides services, does not engage in the Protected Businesses
(as defined in Section 7.1 (a) hereof), (ii) Executive does not provide services, directly or indirectly, to any other division or operating unit of such multi-divisional business or enterprise that engages in the Protected Businesses
(individually, a “Competitive Division” and collectively, the “Competitive Divisions”) and (iii) any Competitive Divisions of the third party with whom Executive is employed or engaged to provide services, in the aggregate,
accounted for less than one-third of the multi-divisional business or enterprises’ consolidated revenues for the fiscal year, and each subsequent quarterly period, prior to Executive’s commencement of employment or engagement with such
Division. Finally, notwithstanding any other provision

  

 14 

 
hereof, nothing in Section 7 shall prohibit Executive from becoming an employee of, or from otherwise providing services to, any business or enterprise (including without limitation a
separate division or operating unit of a multi-divisional business or enterprise) if the amount of sales by such business or enterprise (or separate division or operating unit of a multi-divisional business or enterprise, as the case
may be) of products or services which are competitive with the Protected Businesses is less than 5% of the Company’s consolidated sales for the fiscal year, and each subsequent quarterly period, prior to Executive’s commencement of
employment or engagement with such business or enterprise (or separate division or operating unit of a multi-dimensional business or enterprise, as the case may be). 
 8. Indemnification. 
 8.1 General Indemnification Provisions. The
Company agrees that if Executive is made a party, or is threatened to be made a party, to any action, suit or proceeding, whether civil, criminal, administrative or investigative (a “Proceeding”), by reason of the fact that he is or
was a director, officer or employee of the Company or is or was serving at the request of the Company as a director, officer, member, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, including service
with respect to employee benefit plans, whether or not the basis of such Proceeding is Executive’s alleged action in an official capacity while serving as a director, officer, member, employee or agent, Executive shall be indemnified and held
harmless by the Company to the fullest extent legally permitted or authorized by the Company’s certificate of incorporation or bylaws or resolutions of the Board, or if greater, by the laws of the State of Delaware, against all costs, expenses,
liabilities and losses (including, without limitation, attorneys’ fees, judgments, fines, ERISA excise taxes or penalties and amounts paid or to be paid in settlement) reasonably incurred or suffered by Executive in connection therewith, and
such indemnification shall continue as to Executive even if he has ceased to be a director, officer, member, employee or agent of the Company or other entity and shall inure to the benefit of Executive’s heirs, successors, personal
representatives, assigns, executors and administrators. The Company shall advance to Executive all reasonable costs and expenses incurred by him in connection with a Proceeding within twenty (20) calendar days after receipt by the Company of a
written request for such advance. Such request shall include an undertaking by Executive to repay the amount of such advance if it shall ultimately be determined that he is not entitled to be indemnified against such costs and expenses. 

8.2 Insurance Coverage. The Company agrees to continue and maintain a directors and officers’ liability insurance policy
covering Executive to the extent the Company provides such coverage for its other executive officers and directors. 
 9.
Saving Provision. The Company and Executive agree and stipulate that the agreements set out in Section 7 of this Agreement and in the November 28, 2005 Employee Nondisclosure and Developments Agreement attached hereto as Exhibit
B (which remains in full force and effect) are fair and reasonably necessary for the protection of the business, goodwill, confidential information, and other protectable interests of the Company in light of all of the facts and circumstances of
the relationship between Executive and the Company. In the event a court of competent jurisdiction should decline to enforce those provisions, such provisions shall be deemed to be modified to restrict Executive to the maximum extent which the court
shall find

  

 15 

 
enforceable; provided, however, in no event shall the above provisions be deemed to be more restrictive to Executive than those contained herein. 
 10. Injunctive Relief. Executive acknowledges that the breach or threatened breach of any of the nondisclosure or noncompetition
covenants contained herein or in Exhibit B hereto would give rise to irreparable injury to the Company, which injury would be inadequately compensable in money damages. Accordingly, notwithstanding the provisions of Section 20 hereof,
the Company may seek and obtain a restraining order and/or injunction from a court of competent jurisdiction, prohibiting the breach or threatened breach of any of the nondisclosure or noncompetition covenants contained herein or in Exhibit B
hereto, in addition to and not in limitation of any other legal remedies which may be available. Executive further acknowledges and agrees that the acknowledgements and covenants set out above are necessary for the protection of the Company’s
legitimate goodwill and business interests and are reasonable in scope and content. Similarly, the Company acknowledges and agrees, notwithstanding the provisions of Section 20 hereof, that Executive may seek equitable relief in a court of
competent jurisdiction with respect to any obligations related to the nondisclosure or noncompetition covenants contained herein or in Exhibit B hereto. 
 11. Enforcement. The provisions of this Agreement shall be enforceable, and payments and provision of benefits and other entitlements to Executive required to be made pursuant hereto shall be made
in accordance herewith, notwithstanding the existence of any claim or cause of action against the Company by Executive or against Executive by the Company, whether predicated on this Agreement or otherwise. 
 12. Governing Law. This Agreement, the employment relationship contemplated herein and any claim arising from such relationship,
whether or not arising under this Agreement, shall be governed by and construed in accordance with the internal laws of the State of South Carolina, without regard to conflict of law principles. 
 13. Waiver of Breach. The waiver of any breach of any provision of this Agreement or failure to enforce any provision hereof shall
not operate or be construed as a waiver of any subsequent breach by any party. 
 14. Notices. Any notice given to a
party shall be in writing and shall be deemed to have been given when delivered personally or sent by certified or registered mail, postage prepaid, return receipt requested, duly addressed to the party concerned at the address indicated below or to
such changed address as such party may subsequently give such notice of: 
  

			
	If to the Company:	  	Blackbaud, Inc.
		  	2000 Daniel Island Drive
		  	Charleston, South Carolina 29492
		  	Attention: Senior Vice President and General Counsel
		
	 With a copy to:
	  	Wyrick Robbins Yates & Ponton LLP
		  	4101 Lake Boone Trail, Suite 300
		  	Raleigh, North Carolina 27607
		  	Attention: Donald R. Reynolds, Esq.

  

 16 

			
	If to Executive:	  	Mr. Marc Chardon
		  	9 Elliott Street
		  	Charleston, SC 29401
		
	 With a copy to:
	  	Evans, Carter, Kunes & Bennett, P.A.
		  	115 Church Street
		  	Charleston, SC 29401
		  	Attention: Edward G.R. Bennett, Esq.

 15. Modification. This Agreement may be modified, and the rights, remedies and
obligations contained in any provision hereof may be waived, only in accordance with this Section. No waiver by either party of any breach by the other of any provision hereof shall be deemed to be a waiver of any later or other breach thereof or as
a waiver of any other provision of this Agreement. This Agreement shall be binding upon the parties and may not be modified in any manner, except by an instrument in writing of concurrent or subsequent date signed by duly authorized representatives
of the parties hereto (other than additional attachments to Exhibit A hereto as specified in Section 3). No modification or waiver by the Company shall be effective without the consent of at least a majority of the Board members then in
office at the time of such modification or waiver, excluding Executive’s vote as a director on such matters. 
 16.
Entirety. This Agreement, including the exhibits hereto, as it may be amended pursuant to the terms hereof, represents the complete and final agreement of the parties and shall control over any other statement, representation or agreement by
the Company related to the subject matter hereof (e.g., as may appear in employment or policy manuals). This Agreement supersedes in its entirety any prior negotiations, discussions or agreements, either written or oral, between the parties
with regard or relating to the employment of Executive by the Company. 
 17. Survival. The provisions of this Agreement
and in Exhibits B and C hereto relating to post-termination compensation, benefits and other entitlements (including, without limitation, severance benefits and related rights), confidentiality and noncompetition shall survive the
expiration or termination of this Agreement. 
 18. Severability. Without in any way limiting the provisions of Sections
7.2 and 9, in case any one or more of the provisions contained in this Agreement for any reason shall be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other
provision of this Agreement, but this Agreement shall be construed and reformed to the maximum extent permitted by law. 
 19.
Binding Effect; Successors. This Agreement shall inure to the benefit of Executive and his heirs, successors, personal representatives and assigns. Executive acknowledges that the services to be rendered by him thereunder are unique and
personal in nature. Accordingly, Executive may not assign or delegate any of his duties or obligations under this Agreement. The Company shall have the right to assign or transfer this Agreement to any successor of all of its business or assets
which assumes and agrees to perform this Agreement. As used in this Agreement, “Company” shall mean the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid which assumes and agrees to perform
this Agreement by operation of law or otherwise. 
  

 17 

 20. Arbitration. Other than with respect to any disputes concerning Executive’s
obligations under Section 7 of this Agreement or Exhibit B hereto, in the event of any dispute or claim arising out of or in connection with this Agreement or the enforcement of rights hereunder, such dispute or claim shall be submitted
to binding arbitration in accordance with S.C. Code Ann. § 15-48-10 et seq., as amended, and the then-current rules and procedures of the American Arbitration Association’s (the “AAA’s”) National
Rules for the Resolution of Employment Disputes. The arbitrator shall be selected by an agreement of the parties to the dispute or claim from the panel of arbitrators selected by the AAA, or, if the parties cannot agree on an arbitrator within
thirty (30) calendar days after the notice of a party’s desire to have a dispute settled by arbitration, then the arbitrator shall be selected by the AAA in Charleston, South Carolina. The arbitrator shall apply the laws of the State of
South Carolina, without reference to rules of conflict of law or statutory rules of arbitration, to the merits of any dispute or claim. The determination reached in such arbitration shall be final and binding on all parties hereto without any right
of appeal or further dispute. Execution of the determination by such arbitration may be sought in any court of competent jurisdiction. 
 In the event of any arbitration as provided under this Agreement, or the enforcement of rights hereunder, the arbitrator shall have the authority to, but shall not be required to, award the prevailing party his or its costs and reasonable
attorneys’ fees, to the extent permitted by applicable law. 
 21. Section 409A. 
 a. Notwithstanding anything to the contrary in this Agreement, if at the time of Executive’s termination of employment
with the Company (a) the Company has stock which is publicly-traded on an established securities market and (b) Executive is a “specified employee” within the meaning of Section 409A of the Code, then no payment,
compensation, benefit or entitlement payable or provided to the Executive in connection with his employment termination that is determined, in whole or in part, to constitute a payment from a “nonqualified deferred compensation
plan” within the meaning of Section 409A of the Code shall be paid or provided to Executive before the earlier of (i) Executive’s death or (ii) the day that is six (6) months plus one (1) day after the termination
date (the “New Payment Date”). The aggregate of any payments, compensation, benefits and entitlements that otherwise would have been paid to the Executive during the period between the termination date and the New Payment Date
shall be paid to the Executive in a lump sum on such New Payment Date. Thereafter, any payments, compensation, benefits and entitlements that remain outstanding as of the day immediately following the New Payment Date shall be paid without
delay over the time period originally scheduled, in accordance with the terms of this Agreement. 
 b. The
parties neither intend nor expect the payments under this Agreement to be subject to taxation, interest and/or penalties under Section 409A(a)(1)(B) of the Code (or any comparable successor section, referred to collectively as the
“Section 409A Tax”), but the parties recognize that the application of the Section 409A Tax is uncertain at this time. If, however,

  

 18 

 
Executive and his tax advisors conclude that the Section 409A Tax will apply, the Company agrees to pay Executive an additional cash amount (a “Grossup Payment”) when
making, or being deemed to make, any compensatory payment subject to the Section 409A Tax or as soon thereafter as Executive notifies the Company that additional payments are due. This Grossup Payment shall be sufficient such that the
net amount retained by Executive after deduction of any additional taxes imposed by the Section 409A Tax, and any federal, state and local income tax, employment tax and excise tax imposed upon the Grossup Payment, shall be equal to
the value of the compensatory payment subject to the Section 409A Tax before the application of such tax. Executive shall, at the Company’s expense, provide or approve a tax analysis to support the gross-up payments.

 [THE NEXT PAGE IS THE SIGNATURE PAGE] 
  

 19 

 IN WITNESS WHEREOF, the undersigned have executed this Amended and Restated Employment and
Noncompetition Agreement effective as of the Effective Date set forth above. 
  

			
	COMPANY:
	
	BLACKBAUD, INC.
		
	By:	 	 /s/ Andrew Leitch

	Name:	 	 Andrew Leitch

	Title:	 	 Chairman of the Board

	
	EXECUTIVE:
	
	 /s/ Marc Chardon
 Marc Chardon

  

 20 

 EXHIBIT A 
 BONUS COMPENSATION FORMULA 
 Bonus plan based on the
Blackbaud 2010 Corporate Incentive Plan Summary, but also includes a subjective portion administered at the Board’s discretion. Bonus is based 80% on attainment of key financial goals (the “Quantitative Award”) and 20% on the
Board’s subjective evaluation of CEO performance (the “Subjective Award”). Target bonus shall be no less than the then current Base Salary (100% of Base Salary) based on achievement of the financial plan and full utilization of
the Subjective Award. Amounts could be greater or less than this amount based on actual results and the Board’s review of CEO performance. Total bonus shall not exceed two (2) times the target bonus. 
 The Quantitative Award will function as follows: 
  

	 	•	 	 Performance against budget, both Revenue and “Adjusted” EBIT (EBIT before bonus expense), will determine the size of award.

  

	 	•	 	 In calculating performance achievement, Revenue will receive a 50% weighting and “Adjusted” EBIT a 50% weighting.

  

	 	•	 	 Actual Revenue and Actual “Adjusted” EBIT must BOTH achieve at least 90% of budget in order for CEO to qualify for a bonus.

  

	 	•	 	 Quantitative Award will be determined based upon a factor calculated as follows: 

 Factor =             .5 x Actual Revenue
            +     .5 x Actual “Adjusted” EBIT 
 Budgeted Revenue            Budgeted “Adjusted” EBIT 
 When the factor equals 1.00, Quantitative Award will be 100% of the target. 
 The
Subjective Award will be determined by the Board (or a committee thereof) based on its review of CEO performance. 
  

 A-1 

 EXHIBIT B 
 EMPLOYEE NONDISCLOSURE AND DEVELOPMENTS AGREEMENT 
 THIS EMPLOYEE NONDISCLOSURE AND DEVELOPMENTS AGREEMENT IS made and entered into this 28th day of November 2005, by and between Blackbaud, Inc., a Delaware corporation (the “Company”) and Marc
Chardon (“Employee”). 
 WHEREAS, the Company desires to employ Employee subject to the terms and conditions
set forth herein; and 
 Employee desires to be employed by the Company and is willing to agree to the terms and conditions set
forth herein; and 
 Employee understands that, in its business, the Company has developed and uses commercially valuable
technical and nontechnical information and that, to guard the legitimate interests of the Company, it is necessary for the Company to keep such information confidential and to protect such information as trade secrets or by patent or copyright; and

 Employee recognizes that the computer programs, system documentation, manuals and other materials developed by the Company
are the proprietary information of the Company, that the Company regards this information as valuable trade secrets and that its use and disclosure must be carefully controlled; and 
 Employee further recognizes that, although some of the Company’s customers and suppliers are well known, other customers, suppliers and
prospective customers and suppliers are not so known, and the Company views the names and identities of these customers, suppliers and prospective customers and suppliers, as well as the content of any sales proposals, as being the Company’s
trade secrets; and 
 Employee further recognizes that any ideas, software or Company processes that presently are not being
sold, and that therefore are not public knowledge, are considered trade secrets of the Company; and 
 Employee understands that
special hardware and/or software developed by the Company is subject to the Company’s proprietary rights and that the Company may treat those developments, whether hardware or software, as either trade secrets, copyrighted material or
patentable material, as applicable; and 
 Employee understands that all such information is vital to the success of the
Company’s business and that Employee, through Employee’s employment, has or may become acquainted with such information and may contribute to that information through inventions, discoveries, improvements, software development, or in some
other manner; 
  

 B-1 

 NOW, THEREFORE, in consideration of the foregoing premises and Employee’s employment
and/or continuation of employment, the parties agree as follows: 
 1. Employee will not at any time, whether during or after
the termination of his employment, reveal to any person or entity any of the trade secrets or confidential information concerning the organization, business or finances of the Company or of any third party that the Company is under an obligation to
keep confidential (including, but not limited to, trade secrets or confidential information respecting inventions, research, products, designs, methods, know-how, formulae, techniques, systems, processes, software programs, works of authorship,
customer lists, projects, plans and proposals), except (i) as may be required in the ordinary course of performing his duties as an employee of the Company or (ii) when required to do so by a court of law, by any governmental agency having
supervisory authority over the business of the Company or by any administrative or legislative body (including a committee thereof) with apparent jurisdiction to order him to divulge, disclose or make accessible such information, and Employee shall
keep secret all matters entrusted to him and shall not use or attempt to use any such information in any manner that may injure or cause loss to the Company. 
 2. If at any time or times during Employee’s employment, Employee shall (either alone or with others) make, conceive, discover or reduce to practice any invention, modification, discovery, design,
development, improvement, process, software program, work of authorship, documentation, formula, data, technique, know-how, secret or intellectual property right whatsoever or any interest therein (whether or not patentable or registrable under
copyright or similar statutes or subject to analogous protection) that relates to the business of the Company or any of the products or services being developed, manufactured or sold by the Company or that may be used in relation therewith (herein
called the “Developments”), such Developments and the benefits thereof shall immediately become the sole and absolute property of the Company and its assigns, and Employee shall promptly disclose to the Company each such Development
and hereby assigns any rights Employee may have or acquire in the Developments and benefits and/or rights resulting therefrom to the Company and its assigns without further compensation and shall communicate, without cost or delay, and without
publishing the same, all available information relating thereto to the Company. Upon the request of the Company and without further remuneration by the Company, but at the expense of the Company, Employee will execute and deliver all documents and
do other acts which are or may be necessary to document such transfer or to enable the Company to file and prosecute applications for and to acquire, maintain, extend and enforce any and all patents, trademark registrations or copyrights under
United States or foreign law with respect to any such Developments. 
 3. During Employee’s employment, and for a period of
twelve (12) months thereafter, Employee will not solicit business from any person or entity to whom the Company or any of its affiliates has sold its products or services; nor shall Employee contact, communicate with, solicit or attempt to
recruit or hire, any employee of the Company or any of its affiliates with the intent or effect of inducing or encouraging said employee to leave the employ of the Company or any of its affiliates or to breach other obligations to the Company.

 4. Employee understands that this Agreement does not create an obligation on the Company or any other person or entity to
continue Employee’s employment. 
 5. Employee represents that the Developments, if any, identified on Exhibit 1
attached hereto comprise all the unpatented and uncopyrighted Developments that Employee has

  

 B-2 

 
made or conceived prior to or otherwise not in connection with Employee’s employment by the Company, which Developments are excluded from this Agreement. Employee understands that it is
necessary only to list the title and purpose of such Developments but not the details thereof. 
 Employee further represents
that Employee’s performance of all the terms of this Agreement and as an employee of the Company does not and will not breach any agreement to keep in confidence proprietary information acquired by Employee in confidence or in trust prior to
Employee’s employment by the Company. Employee has not entered into, and Employee agrees he will not enter into, any agreement either written or oral in conflict herewith. 
 6. Any waiver by the Company of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent
breach of such provision or any other provision hereof. 
 7. Employee hereby agrees that each provision herein shall be treated
as a separate and independent clause, and the unenforceability of any one clause shall in no way impair the enforceability of any of the other clauses herein. Moreover, if one or more of the provisions contained in this Agreement shall for any
reason be held to be excessively broad as to scope, activity or subject so as to be unenforceable at law, such provision or provisions shall be construed by the appropriate judicial body by limiting and reducing it or them, so as to be enforceable
to the maximum extent compatible with the applicable law as it shall then exist. 
 8. Employee’s obligations under this
Agreement shall survive the termination of Employee’s employment regardless of the manner of such termination and shall be binding upon Employee’s heirs, executors, administrators and legal representatives. 
 9. As used in this Agreement, the term “Company” shall include Blackbaud, Inc. and any of its subsidiaries, subdivisions or
affiliates. The Company shall have the right to assign this Agreement to its successors and assigns, and all covenants and agreements hereunder shall inure to the benefit of and be enforceable by said successors or assigns. This Agreement may be
amended only in a writing signed by each of the parties hereto. 
 10. This Agreement shall be governed by and construed in
accordance with the laws of the State of South Carolina, without regard to conflict of laws principles. This Agreement may be executed in counterparts, but all such counterparts shall together constitute one and the same instrument. 
 [THE NEXT PAGE IS THE SIGNATURE PAGE] 
  

 B-3 

 IN WITNESS WHEREOF, the undersigned have executed this Employee Nondisclosure and
Developments Agreement as a sealed instrument as of the date first above written. 
  

					
	EMPLOYEE:
		
	 /s/ Marc Chardon
	 	(SEAL)
	Marc Chardon	 	
	
	COMPANY:
	
	BLACKBAUD, INC.
		
	By:	 	 /s/ Timothy Williams

	Name:	 	 Timothy Williams

	Title:	 	 Vice President and Chief Financial Officer

  

 B-4 

 EXHIBIT 1 
 PRIOR DEVELOPMENTS BY EMPLOYEE 
  

 B-5 

 EXHIBIT C 
 General Release 
                                  ,
200     
 VIA HAND DELIVERY 
 Mr. Marc Chardon 
 9 Elliott Street 
 Charleston, SC 29401 
 Re:
Separation Agreement and General Release of all Claims 
 Dear Marc: 
 As discussed, your employment with Blackbaud, Inc. (“Blackbaud”) will end on
                                 ,          (the
“Separation Date”). As soon as possible and no later than the Separation Date, please return all Blackbaud property, including, but not limited to, any equipment, keys or passes, software, files, samples, training materials,
programs and documents (including any copies) to Blackbaud’s Vice President of Human Resources or his/her designee, except as otherwise specifically provided in Section 7 of the enclosed Separation Agreement and General Release of all
Claims (the “Agreement”). 
 The Agreement contains the severance benefits you are entitled to pursuant to
Section 5.2 of the Employment and Noncompetition Agreement, in exchange for your complete release of claims against Blackbaud. Therefore, Blackbaud encourages you to read the enclosed Agreement carefully and to consult with an attorney before
signing it. 
 If you agree with the terms of the enclosed Agreement and wish to receive the severance benefits described in the
Agreement, you must sign and date the enclosed Agreement and return the signed and dated copy to Blackbaud’s Vice President of Human Resources by hand delivery or by depositing it in the U.S. mail in the enclosed self-addressed, stamped
envelope by the close of business on the twenty-first (21st) calendar day after you receive this Agreement. Once you sign this Agreement, you will have seven (7) days to revoke your acceptance by giving written notice of such revocation to
Blackbaud’s Vice President of Human Resources. To be effective, the notice of revocation must actually be received by Blackbaud’s Vice President of Human Resources within the seven (7) day revocation period. 
  

 C-1 

 By dating and signing below in the space provided below, you are acknowledging only that you
received this letter and the enclosed Agreement on the date indicated. 
  

			
	BLACKBAUD, INC.
		
	By:	 	  

			
	Print Name:	 	
	Its:	 	

 ****************************************************************************** 
 I hereby acknowledge that I
have received a copy of this letter and the Separation Agreement and General Release of all Claims on this date. 
  

					
	  
	  		  	  

	Marc Chardon	  		  	Date

  

 C-2 

 THIS AGREEMENT CONTAINS AN ARBITRATION PROVISION PURSUANT TO 
 THE FEDERAL ARBITRATION ACT (9 U.S.C. § 1 ET SEQ.) AND/OR THE S.C. 
 UNIFORM ARBITRATION ACT (S.C. CODE § 15-48-10 ET SEQ.) 
 SEPARATION AGREEMENT AND GENERAL RELEASE OF ALL CLAIMS 
 THIS SEPARATION
AGREEMENT AND GENERAL RELEASE OF ALL CLAIMS (the “Agreement”) is entered into by and between Marc Chardon (“Employee”), residing at 9 Elliott Street, Charleston, SC 29401, and BLACKBAUD, INC.
(“Blackbaud”), having its principal office at 2000 Daniel Island Drive, Charleston, SC 29492. 
 WHEREAS,
Employee and Blackbaud are parties to that certain Amended and Restated Employment and Noncompetition Agreement, effective as of January 28, 2010 (the “Employment Agreement”); 
 WHEREAS, Employee and Blackbaud are terminating the employment relationship between them pursuant to Section
[            ] of the Employment Agreement, and wish to resolve any and all claims or disputes that may exist between them by executing this Agreement; and 
 WHEREAS, unless otherwise defined herein, capitalized terms not specifically defined in this Agreement will have the same definition as
provided in the Employment Agreement. 
 NOW, THEREFORE, in consideration of the covenants and mutual promises contained herein,
as well as the payment of certain benefits to Employee as hereinafter recited, the receipt and sufficiency of which are hereby acknowledged by Employee, it is agreed as follows: 
  

	 	1.	Separation of Employment; Accrued Compensation. Employee’s last date of employment with Blackbaud will be
                                         
                    (the “Separation Date”). Regardless of whether Employee signs this Agreement, in accordance with Section 5.1
of the Employment Agreement, Blackbaud will make payment to Employee for: (a) any accrued, unpaid Base Salary through the Separation Date; (b) payment for any Bonus Compensation which has been awarded but not paid for calendar years prior
to the year in which termination of Employee’s employment occurs, (c) any accrued, unpaid vacation time through the Separation Date; (d) reimbursement for any unreimbursed expenses in accordance with Blackbaud’s policies;
(e) participation in plans, programs, arrangements and/or other agreements of Blackbaud and any affiliate through the Separation Date and thereafter in accordance with the terms thereof; and (f) payment of other amounts, entitlements
and/or benefits, if any, in accordance with applicable plans, programs, arrangements and/or other agreements of the Company and any affiliate. 

  

	 	2.	Severance Benefits. If Employee executes this Agreement in accordance with Section 5.2 of the Employment Agreement and does not revoke it as permitted by
Section 14 hereof, Employee will receive the following severance benefits: 

 a. Blackbaud
will make a lump-sum payment equal to a pro rata share (based upon the number of days in the year of termination through the Separation Date relative to 365) of the Employee’s annual

 
target Bonus Compensation at the rate in effect on the Separation Date, less any required taxes and withholdings, payable within sixty (60) calendar days of the Separation Date; 

b. Blackbaud will continue paying Employee his annual Base Salary at the rate in effect on the Separation Date, less any
required taxes and withholdings, for a period of twenty four (24) months after the Separation Date; 
 c.
Blackbaud will continue Employee’s participation in Blackbaud’s health benefits at the same level as in effect on the Separation Date for a period of eighteen (18) months after the Separation Date or until Employee is eligible
(following the expiration of any applicable waiting periods) for equivalent health benefits from another employer, whichever is sooner. If Blackbaud’s health benefit plans or programs do not allow for Employee’s continued participation in
such plans or programs after termination of employment, Blackbaud agrees to reimburse Employee for continuing coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”) for a period of eighteen
(18) months after the Separation Date; provided, however, that such reimbursement will be conditioned upon Employee’s timely election of continued coverage under COBRA; and 
 d. Employee will be entitled to twelve (12) months acceleration of the vesting of any then-unvested stock options,
stock appreciation rights and restricted stock granted to Employee pursuant to this Agreement, and/or the Original Agreement or pursuant to any other written agreement between Employee and Blackbaud, such that all Employee’s stock options,
stock appreciation rights and restricted stock will be vested on Employee’s Separation Date as if Employee’s Separation Date were twelve (12) months later. All of Employee’s stock options, stock appreciation rights and restricted
stock which remain unvested after giving effect to the acceleration provided for in the preceding sentence will be forfeited as of the Separation Date. Employee will have two (2) years after termination of employment with Blackbaud (but in no
event later than any specified expiration date of Employee’s stock options or stock appreciation rights) to exercise any and all of Employee’s vested stock options or stock appreciation rights. 
 Employee further acknowledges and agrees that except as specifically provided in this Agreement, he is not eligible for, and will not
receive, any additional payments, compensation, benefits or entitlements from Blackbaud. 
  

	 	3.	Consideration to Employee. In consideration of Employee’s execution of this Agreement, Blackbaud will provide Employee with the payments and benefits
described in Section 2 herein. 

	 	4.	Blackbaud Benefits. Employee understands and agrees that except as specifically provided in Section 1 and Section 2(c) of this Agreement, his
entitlement to all Blackbaud-provided benefits will cease as of the Separation Date. 

  

	 	5.	Post-Termination Obligations. Employee acknowledges, agrees, and hereby affirms that while employed by Blackbaud, he was subject to valid and enforceable
non-solicitation and non-competition obligations (as provided in Section 7 of the Employment Agreement and in Exhibit B thereto, both of which are incorporated herein by reference as if fully set out herein) that placed certain
restrictions on Employee following his separation from employment with Blackbaud for any reason. Employee acknowledges and agrees that these non-solicitation and non-competition obligations are and at all times have been fully enforceable against
him. Employee acknowledges and agrees that such provisions of the Employment Agreement and related Employee Nondisclosure and Developments Agreement will remain and are fully enforceable. 

  

	 	6.	COBRA Election. Upon loss of health care coverage, Employee will be entitled to elect continuation of his health care coverage under the Consolidated Omnibus
Budget Reconciliation Act of 1986 (“COBRA”). Blackbaud will provide Employee with information explaining his right to continue his medical and dental coverage under COBRA after the Separation Date. 

  

	 	7.	Return of Blackbaud Property. Employee relinquishes all right, title and interest to, and will return to Blackbaud all property belonging to Blackbaud,
including, but not limited to, equipment, identification cards, keys, corporate credit card(s), customer lists, information, confidential information, trade secrets, developments, forms, formulae, plans, documents, systems, designs, methodologies,
product features, technology, and other written and computer materials, and copies of the same, belonging to Blackbaud, its affiliates, or any of their customers, within Employee’s possession or control and he will not at any time copy or
reproduce the same. Notwithstanding any other provision hereof, Employee will be entitled to retain (a) papers and other materials of a personal nature, including without limitation personal photographs, personal correspondence, personal
diaries, personal calendars and personal rolodexes, personal phone books and files relating to his personal affairs, (b) information showing Employee’s compensation or relating to his reimbursement of business related expenses,
(c) information Employee reasonably believes may be needed for the planning and preparation of his personal tax returns and (d) copies of plans, programs, arrangements and other agreements with Blackbaud or an affiliate relating to
Employee’s employment with or separation from Blackbaud. 

  

	 	8.	 Release of Claims. In consideration of the payments and benefits granted hereunder, Employee, on behalf of himself and his heirs and assigns,
hereby irrevocably and unconditionally releases and forever discharges, except as to obligations arising under this Agreement, Blackbaud, its officers, directors, affiliates, agents and employees, and their successors and assigns, from any and all
claims, causes of action, liability, damages, expenses and/or losses of whatever kind or nature (including related attorneys’ fees and costs), in law or equity,

	 	 
known or unknown, suspected or unsuspected, that Employee may now have or has ever had arising directly or indirectly out of the Employment Agreement (including any and all attachments thereto),
his employment, or his separation from employment, with Blackbaud, by reason of any act, omission, transaction, or event occurring up to and including the date of the signing of this Agreement. 

 This waiver, release and discharge includes, without limitation, any and all claims related to any wrongful or unlawful discharge, discipline
or retaliation, any contract of employment, whether express or implied, compensation including commissions, Blackbaud’s benefit plans and the management thereof, defamation, slander, libel, invasion of privacy, intentional or negligent
infliction of emotional distress, breach of any covenant of good faith and fair dealing, and any other claims relating to the Employee’s employment, or separation from employment, with Blackbaud. This waiver, release and discharge further
applies, but is not limited, to any or all claims arising under any state or federal employment discrimination law, including, but not limited to, Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the
Rehabilitation Act of 1973, the Older Workers Benefit Protection Act, the Americans with Disability Act, Executive Order 11246; the federal Family and Medical Leave Act; the South Carolina Payment of Wages Act (S.C. Code Ann. § 41-10-10
et seq.); the Employee Retirement Income Security Act of 1974; and any other applicable federal, state or local statute, regulation or common law regarding employment, employee benefits, discrimination in employment, or the
termination of employment. 
 Employee expressly waives all claims against Blackbaud, including those which he does not know or
suspect to exist in his favor as of the date of this Agreement. All such claims are forever barred by this Agreement whether they arise in contract or tort or under a statute or any other law. The final release of all claims by Employee against
Blackbaud (to the extent provided herein) constitutes a material part of the consideration flowing from Employee to Blackbaud under this Agreement; provided, however, that nothing in this Agreement prohibits Employee from filing,
cooperating with or participating in any proceeding before the Equal Employment Opportunity Commission or a state fair employment practices agency (except that Employee acknowledges that he may not be able to recover any monetary benefits in
connection with any such claim, charge or proceeding). Notwithstanding the foregoing or any other provision contained herein, Employee does not release any of the following: 
 (i) Employee’s rights under Section 17 of the Employment Agreement; 
 (ii) claims that Employee may have against Blackbaud under this Agreement; 
 (iii) claims that arise after the date of this Agreement; 
 (iv) claims with respect to any accrued or vested rights or entitlements that Employee has under any applicable written
plan, program, arrangement of, or other written agreement, including this Agreement, with, Blackbaud or an affiliate; 

 (v) Employee’s right to be indemnified and to have his expenses
reimbursed by Blackbaud pursuant to the Employment Agreement, the Certificate of Incorporation and Bylaws of Blackbaud and under applicable law and pursuant to Blackbaud’s directors’ and officers’ liability insurance policies with
respect to any liability and/or expenses he incurs or incurred as an employee, officer and/or director of Blackbaud or an affiliate; and 
 (vi) any right or entitlement Employee may have to obtain contribution as permitted by law in the event of entry of judgment against him as a result of any act or failure to act for which he, Blackbaud
and/or an affiliate and/or employee of Blackbaud and/or an affiliate are jointly liable. 
  

	 	9.	Entire Agreement. This Agreement constitutes the entire agreement and understanding between Employee and Blackbaud with respect to all matters pertaining to
Employee’s employment and termination, except that nothing herein will be deemed to modify or release any of Employee’s continuing obligations to Blackbaud under the Employment Agreement, or any other confidentiality, trade secret and
invention assignment agreement signed by Employee. 

  

	 	10.	Governing Law. This Agreement will be construed under the laws of South Carolina, without regard to conflict of law principles. 

  

	 	11.	Arbitration. In the event of any dispute or claim arising out of or in connection with this Agreement or the enforcement of rights hereunder, such dispute or
claim shall be submitted to binding arbitration in accordance with S.C. Code Ann. § 15-48-10 et seq., as amended, and the then-current rules and procedures of the American Arbitration Association’s (the
“AAA’s”) National Rules for the Resolution of Employment Disputes. The arbitrator shall be selected by an agreement of the parties to the dispute or claim from the panel of arbitrators selected by the AAA, or, if the parties
cannot agree on an arbitrator within thirty (30) calendar days after the notice of a party’s desire to have a dispute settled by arbitration, then the arbitrator shall be selected by the AAA in Charleston, South Carolina. The arbitrator
shall apply the laws of the State of South Carolina, without reference to rules of conflict of law or statutory rules of arbitration, to the merits of any dispute or claim. The determination reached in such arbitration shall be final and binding on
all parties hereto without any right of appeal or further dispute. Execution of the determination by such arbitration may be sought in any court of competent jurisdiction. Notwithstanding the foregoing, Blackbaud or Employee may bring a suit in any
court of competent jurisdiction regarding any dispute concerning Employee’s obligations under Section 7 of the Employment Agreement or Exhibit B thereto. 

 In the event of any arbitration as provided under this Agreement, or the enforcement of rights hereunder, the arbitrator shall have the
authority to, but

 
shall not be required to, award the prevailing party his or its costs and reasonable attorneys’ fees, to the extent permitted by applicable law. 
  

	 	12.	No Admissions. The promises and payments described herein are not to be construed as an admission of any liability by either party with respect to any federal,
state or local statute or regulation or other common law claims. The promises and payments made herein are in consideration of Employee’s release of claims against Blackbaud. 

  

	 	13.	Voluntary Execution. Employee understands and acknowledges that he was advised and is hereby advised in writing to consult with an attorney before executing this
Agreement, and further acknowledges that he has been given a reasonable opportunity to do so. By signing below, Employee acknowledges that he has been afforded at least twenty-one (21) days from the date of his receipt of this Agreement to
review and consider the Agreement’s terms. 

 Employee further acknowledges that he understands the contents
of this Agreement, that this Agreement is entered into freely and voluntarily, and that it is not predicated or influenced by any representations of Blackbaud or any of its employees or agents other than those stated in this Agreement. Employee has
carefully read, understands, and is voluntarily entering into this Agreement, and hereby attests that he fully understands the extent and importance of its provisions. Employee further acknowledges that he is fully competent to execute this
Agreement and that he does so voluntarily and without any coercion, undue influence, threat or intimidation of any kind or type. 
  

	 	14.	Right to Revoke. Employee understands, agrees, and acknowledges that he has seven (7) days following his execution of this Agreement to revoke the Agreement
and has been, and hereby is, advised that this Agreement will not become effective or enforceable, and all payments or obligations recited herein will not be paid, until the revocation period has expired. Revocation must be in writing and received
by Blackbaud’s Vice President of Human Resources before the end of business on the seventh (7th) day after Employee’s execution of this Agreement. 

  

	 	15.	Binding Effect. This Agreement is binding upon and shall inure to the benefit of the parties and their respective agents, assigns, heirs, executors, successors
and administrators. 

  

	 	16.	Section 409A.

 a. Notwithstanding anything to the contrary in this Agreement, if at the time of Employee’s termination of employment with Blackbaud: (a) Blackbaud has stock which is publicly-traded on an established securities market and
(b) Employee is a “specified employee” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (“Code”), then no payment, compensation, benefit or entitlement payable or provided
to the Employee in connection with his employment termination that is determined, in whole or in part, to constitute a payment from a “nonqualified deferred compensation plan” within the meaning of Section 409A of the Code shall
be

 
paid or provided to Employee before the earlier of (i) Employee’s death or (ii) the day that is six (6) months plus one (1) day after the Separation Date (the
“New Payment Date”). The aggregate of any payments, compensation, benefits and entitlements that otherwise would have been paid to the Employee during the period between the Separation Date and the New Payment Date shall be
paid to the Employee in a lump sum on such New Payment Date. Thereafter, any payments, compensation, benefits and entitlements that remain outstanding as of the day immediately following the New Payment Date shall be paid without delay over the
time period originally scheduled, in accordance with the terms of this Agreement. 
 b. The parties neither
intend nor expect the payments under this Agreement to be subject to taxation interest and/or penalties under Section 409A(a)(1)(B) of the Code (or any comparable successor section, referred to collectively as the “Section 409A
Tax”), but the parties recognize that the application of the Section 409A Tax is uncertain at this time. If, however, Employee and his tax advisors conclude that the Section 409A Tax will apply, Blackbaud agrees
to pay Employee an additional cash amount (a “Grossup Payment”) when making, or being deemed to make, any compensatory payment subject to the Section 409A Tax or as soon thereafter as Employee notifies Blackbaud that
additional payments are due. This Grossup Payment shall be sufficient such that the net amount retained by Employee after deduction of any additional taxes imposed by the Section 409A Tax, and any federal, state and local income tax,
employment tax and excise tax imposed upon the Grossup Payment, shall be equal to the value of the compensatory payment subject to the Section 409A Tax before the application of such tax. Employee shall, at
Blackbaud’s expense, provide or approve a tax analysis to support the gross-up payments. 
 Signed and accepted by Employee on
                                 , 20    : 

 

			
	EMPLOYEE
	
	  

	Marc Chardon
	
	BLACKBAUD, INC.
		
	By:	 	  

	Title:	 	  

	Date:Form of Tax Benefits Preservation Plan

 Exhibit 4.1 
 ICO GLOBAL COMMUNICATIONS (HOLDINGS) LIMITED 
 and

 MELLON INVESTOR SERVICES LLC, 
 as Rights Agent 
 TAX BENEFITS PRESERVATION PLAN 
 Dated as of January 29, 2010 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	Section 1.	  	Certain Definitions	  	1
	Section 2.	  	Appointment of Rights Agent	  	7
	Section 3.	  	Issuance of Rights Certificates	  	7
	Section 4.	  	Form of Rights Certificates	  	9
	Section 5.	  	Countersignature and Registration	  	9
	Section 6.	  	Transfer, Split Up, Combination and Exchange of Rights Certificates; Mutilated, Destroyed, Lost or Stolen Rights Certificates	  	10
	Section 7.	  	Exercise of Rights; Purchase Price; Expiration Date of Rights	  	10
	Section 8.	  	Cancellation and Destruction of Rights Certificates	  	12
	Section 9.	  	Reservation and Availability of Capital Stock	  	12
	Section 10.	  	Preferred Stock Record Date	  	14
	Section 11.	  	Adjustment of Purchase Price, Number and Kind of Shares or Number of Rights	  	14
	Section 12.	  	Certificate of Adjusted Purchase Price or Number of Shares	  	20
	Section 13.	  	Reserved	  	20
	Section 14.	  	Fractional Rights and Fractional Shares	  	20
	Section 15.	  	Rights of Action	  	22
	Section 16.	  	Agreement of Rights Holders	  	22
	Section 17.	  	Rights Certificate Holder Not Deemed a Stockholder	  	22
	Section 18.	  	Concerning the Rights Agent	  	23
	Section 19.	  	Merger or Consolidation or Change of Name of Rights Agent	  	23
	Section 20.	  	Duties of Rights Agent	  	23
	Section 21.	  	Change of Rights Agent	  	25
	Section 22.	  	Issuance of New Rights Certificates	  	26
	Section 23.	  	Redemption and Termination	  	26
	Section 24.	  	Exchange	  	27
	Section 25.	  	Notice of Certain Events	  	28
	Section 26.	  	Notices	  	29
	Section 27.	  	Supplements and Amendments	  	29
	Section 28.	  	Successors	  	30
	Section 29.	  	Determinations and Actions by the Board of Directors, etc	  	30
	Section 30.	  	Benefits of this Plan	  	30
	Section 31.	  	Process to Seek Exemption	  	30
	Section 32.	  	Severability	  	31
	Section 33.	  	Governing Law	  	31

  

 i 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page
	Section 34.	  	Counterparts	  	31
	Section 35.	  	Descriptive Headings	  	31
	Section 36.	  	Force Majeure	  	32
	Exhibit A.	  	Form of Class A Rights Certificate	  	A-1
	Exhibit B.	  	Form of Class B Rights Certificate	  	B-1
	Exhibit C.	  	Form of Summary of Rights	  	C-1
	Exhibit D.	  	Series A Certificate of Designation	  	D-1
	Exhibit E.	  	Series B Certificate of Designation	  	E-1

  

 ii 

 TAX BENEFITS PRESERVATION PLAN 
 TAX BENEFITS PRESERVATION PLAN, dated as of January 29, 2010 (the “Plan”), between ICO Global Communications
(Holdings) Limited, a Delaware corporation (the “Company”), and Mellon Investor Services LLC (operating with the service name BNY Mellon Shareowner Services), a New Jersey limited liability company, as rights agent (the
“Rights Agent”). 
 WHEREAS, the Company has generated NOLs (as defined below) for United States federal income
tax purposes, and such NOLs may potentially provide valuable tax benefits to the Company that could be curtailed or lost if the Company were to undergo an “ownership change” within the meaning of Section 382 of the United States
Internal Revenue Code of 1986, as amended from time to time (the “Code”), and the Treasury Regulations (as defined below), and accordingly the Company desires to help preserve the ability to utilize fully such NOLs and certain other
tax benefits and, in furtherance of such objective, the Company desires to enter into this Plan; 
 WHEREAS, effective
January 29, 2010 (the “Rights Dividend Declaration Date”), the Board of Directors (as defined below) of the Company (i) authorized and declared a dividend of one Class A Right
(“Class A Right”) for each share of Class A common stock, par value $0.01 per share, of the Company (the “Class A Common Stock”) and one Class B Right (“Class B Right” and together
with the Class A Rights, the “Rights”) for each share of Class B common stock, par value $0.01 per share, of the Company (the “Class B Common Stock” and together with the Class A Common Stock, the
“Company Common Stock”) outstanding at the Close of Business on February 8, 2010 (the “Record Date”) and (ii) authorized the issuance of one Class A Right (as such number may hereinafter be adjusted
pursuant hereto) for each share of Class A Common Stock issued between the Record Date and the earlier of the Distribution Date and the Expiration Date and, in certain circumstances, for each share of Class A Common Stock issued after the
Distribution Date but before the Expiration Date and one Class B Right (as such number may hereinafter be adjusted pursuant hereto) for each share of Class B Common Stock issued between the Record Date and the earlier of the Distribution Date and
the Expiration Date and, in certain circumstances, for each share of Class B Common Stock issued after the Distribution Date but before the Expiration Date; and 
 WHEREAS, each Class A Right initially represents the right to purchase one Unit of Series A Junior Participating Preferred Stock, and each Class B Right initially represents the right to purchase one
Unit of Series B Junior Participating Preferred Stock, in each case upon the terms and subject to the conditions hereinafter set forth; 
 NOW, THEREFORE, in consideration of the premises and the mutual agreements herein set forth, the parties hereby agree as follows: 
 Section 1. Certain Definitions. For purposes of this Plan, the following terms have the meanings indicated: 
 (a) “Acquiring Person” shall mean any Person who or which, together with all Affiliates and Associates of such Person,
shall be the Beneficial Owner of 4.9% or more of the Company Stock (as defined below) then outstanding. Notwithstanding the foregoing: 
 (i) an “Acquiring Person” shall not include any of the following: 
 (A) the Company;

 (B) any Subsidiary of the Company; 
 (C) any employee benefit plan maintained by the Company or any of its Subsidiaries; 
 (D) any trustee or fiduciary with respect to such employee benefit plan acting in such capacity or a trustee or fiduciary
holding Company Stock for the purpose of funding any such plan; 
  

 1 

 (E) any Person whose Beneficial Ownership (together with the Beneficial
Ownership of all Affiliates and Associates of such Person) of 4.9% or more of the then-outstanding Company Stock does not or would not jeopardize or endanger the availability to the Company of its Tax Benefits or otherwise is or would be in the best
interests of the Company and its stockholders, in either case as determined by the Board of Directors in its sole discretion; provided, however, that a Person shall cease to be an Exempt Person (as defined below) pursuant to this
subclause (E) if the Board of Directors, in its sole discretion, makes a contrary determination with respect to the effect of such Person’s Beneficial Ownership (together with all Affiliates and Associates of such Person) with respect to
the availability to the Company of its Tax Benefits; and provided, further, that a Person shall cease to be an Exempt Person pursuant to this subclause (E) as of the date that such Person (together with all Affiliates and
Associates of such Person) ceases to beneficially own 4.9% or more of the then- outstanding Company Stock; and 
 (F) any Person that (together with all Affiliates and Associates of such Person) beneficially owns, as of the close of business on the date hereof, 4.9% or more of the outstanding Company Stock (an “Existing Holder”);
provided, however, that any such Person shall be deemed pursuant to this subclause (F) to be an Exempt Person only for so long as such Person (together with all Affiliates and Associates of such Person) does not acquire
Beneficial Ownership of additional Company Stock constituting one-half of one percent (0.5%) or more of the Company Stock outstanding as of the date hereof (adjusted for any stock splits, subdivisions and the like) following the date hereof (other
than as a result of acquisitions after the date hereof pursuant to (i) the grant or exercise of any options, warrants, rights or similar interests (including restricted stock) granted by the Company to such Person, (ii) a dividend or
distribution paid or made by the Company on the outstanding shares of Company Common Stock, (iii) a split or subdivision of the Company Common Stock, or (iv) any Exempt Transaction); and provided, further,
that any such Person shall cease to be deemed pursuant to this subclause (F) to be an Exempt Person as of the date that such Person (together with all Affiliates and Associates of such Person) ceases to beneficially own 4.9% or
more of the then-outstanding Company Stock; 
 and 
 (ii) no Person shall be deemed an “Acquiring Person” as a result of (1) the acquisition of Company Stock by the Company which, by reducing the amount of Company Stock outstanding, increases
the proportional amount beneficially owned by such Person; provided, however, that if (x) a Person would become an Acquiring Person (but for the operation of this subclause (ii)) as a result of the acquisition of Company
Stock by the Company, and (y) after such acquisition of Company Stock by the Company, such Person becomes the Beneficial Owner of additional Company Stock constituting one-half of one percent (0.5%) or more of the Company Stock outstanding as
of the date hereof (adjusted for any stock splits, subdivisions and the like) (other than as a result of acquisitions after the date hereof pursuant to (a) the grant or exercise of any options, warrants, rights or similar interests (including
restricted stock) granted by the Company to such Person, (b) a dividend or distribution paid or made by the Company on the outstanding shares of Company Common Stock, (c) a split or subdivision of the Company Common Stock, or (d) any
Exempt Transaction), then such Person shall be deemed an Acquiring Person unless, upon becoming the Beneficial Owner of such additional Company Stock, such Person is the Beneficial Owner of less than 4.9% of the then-outstanding Company Stock,
(2) the grant or exercise of any options, warrants, rights or similar interests (including restricted stock) granted by the Company to such Person, (3) any grant of any security made directly by the Company to such Person, or (4) any
Exempt Transaction, unless and until after such acquisition of shares of Company Stock pursuant to each of clauses (2) through (4), such Person becomes the Beneficial Owner of additional Company Stock constituting one-half of one percent (0.5%)
or more of the Company Stock outstanding as of the date hereof (adjusted for any stock splits, subdivisions and the like) (other than as a result of acquisitions after the date hereof pursuant to (a) the grant or exercise of any options,
warrants, rights or similar interests (including restricted stock) granted by the Company to such Person, (b) a dividend or distribution paid or made by the Company on the outstanding shares of Company Common Stock, (c) a split or
subdivision of the Company Common Stock, or (d) any Exempt Transaction), in which case such Person shall be deemed an Acquiring Person unless, upon becoming the Beneficial Owner of such additional Company Stock, such Person is the Beneficial
Owner of less than 4.9% of the then-outstanding Company Stock. 
  

 2 

 Notwithstanding the foregoing, the Board of Directors may, in its sole discretion, determine at any time
that any Person shall not be deemed to be, and shall not be, an Acquiring Person for any purposes of this Plan, and no Person shall be an Acquiring Person unless the Board of Directors shall have affirmatively determined, in its sole discretion,
within ten Business Days (or such later time as the Board of Directors shall determine) after any director has actual knowledge that such Person has otherwise met the requirements of this Section 1(a), that such Person shall be an Acquiring
Person. 
 Each Person identified in subclauses (A), (B), (C), (D), (E) and (F) or in the immediately preceding sentence of this
Section (1)(a) is individually an “Exempt Person” and collectively “Exempt Persons.” 
 (b) “Affiliate” and “Associate” shall have the respective meanings ascribed to such terms in Rule 12b-2 of the General Rules and Regulations under the Securities Exchange Act of 1934, as amended (the
“Exchange Act”), as in effect on the date hereof, and, to the extent not included within the foregoing clause of this Section 1(b), shall also include, with respect to any Person, any other Person (whether or not an Exempt
Person) whose Company Stock would be deemed constructively owned by such first Person, owned by a single “entity” as defined in Section 1.382-3(a)(1) of the Treasury Regulations, or otherwise aggregated with Company Stock owned by
such first Person pursuant to the provisions of the Code and the Treasury Regulations thereunder, provided, however, that a Person shall not be deemed to be the Affiliate or Associate of another Person solely because either or
both Persons are or were directors of the Company. 
 (c) A Person shall be deemed the “Beneficial Owner” of,
and shall be deemed to have “Beneficial Ownership” of and to “beneficially own,” any securities or interests: 
 (i) which such Person or any of such Person’s Affiliates or Associates, directly or indirectly, has the right to acquire (whether such right is exercisable immediately or only after the passage of
time) pursuant to any agreement, arrangement or understanding (whether or not in writing) or upon the exercise of conversion rights, exchange rights, warrants, options, or other rights (in each case, other than upon exercise or exchange of the
Rights); provided, however, that a Person shall not be deemed the “Beneficial Owner” of, to have “Beneficial Ownership” of or to “beneficially own” securities or interests (including rights, options or
warrants) which are convertible or exchangeable into Company Stock until such time as the convertible or exchangeable securities or interests are exercised and converted or exchanged into Company Stock except to the extent the acquisition or
transfer of such rights, options or warrants would be treated as exercised on the date of its acquisition or transfer under Section 1.382-4(d) of the Treasury Regulations; provided, further, that under this paragraph (c)(i) a
Person shall not be deemed the “Beneficial Owner” of, to have “Beneficial Ownership” of, or to “beneficially own,” any securities tendered pursuant to a tender or exchange offer made in accordance with Exchange Act
Regulations by such Person or any of such Person’s Affiliates or Associates until such tendered securities are accepted for purchase or exchange; 
 (ii) which such Person or any of such Person’s Affiliates or Associates, directly or indirectly, has the right to vote or dispose of or has “beneficial ownership” of under Rule 13d-3 of the
General Rules and Regulations under the Exchange Act (the “Exchange Act Regulations”) as in effect on the date hereof, including pursuant to any agreement, arrangement or understanding (whether or not in writing), but only if the
effect of such agreement, arrangement or understanding is to treat such Persons as an “entity” under Section 1.382-3(a)(1) of the Treasury Regulations; or 
 (iii) which are beneficially owned, directly or indirectly, by any other Person (or any Affiliate or Associate of such other
Person) with which such Person (or any of such Person’s Affiliates or Associates) has any agreement, arrangement or understanding (whether or not in writing), for the purpose of acquiring, holding, voting or disposing of such securities or
interests, but only if the effect of such agreement, arrangement or understanding is to treat such Persons as an “entity” under Section 1.382-3(a)(1) of the Treasury Regulations; provided, however, that a Person shall
not be deemed the “Beneficial Owner” of, to have “Beneficial Ownership” of or to “beneficially own” any security or interest (A) if such Person

  

 3 

 
has the right to vote such security pursuant to an agreement, arrangement or understanding (whether or not in writing) which (1) arises solely from a revocable proxy given to such Person in
response to a public proxy or consent solicitation made pursuant to, and in accordance with, the applicable rules and regulations of the Exchange Act and (2) would not also then be reportable on Schedule 13D under the Exchange Act (or any
comparable or successor report), or (B) if such beneficial ownership arises solely as a result of such Person’s status as a “clearing agency,” as defined in Section 3(a)(23) of the Exchange Act; further
provided, however, that nothing in this paragraph (c)(iii) shall cause a Person engaged in business as an underwriter of securities to be the “Beneficial Owner” of, to have “Beneficial Ownership” of, or to
“beneficially own,” any securities acquired through such Person’s participation in good faith in a firm commitment underwriting until the expiration of forty days after, but not including, the date of such acquisition or such later
date as the Board of Directors may determine. 
 provided, however, that under this paragraph (c) a Person shall not be
deemed the “Beneficial Owner” of, to have “Beneficial Ownership” of, or to “beneficially own,” any securities 
 (A) that may be issued upon exercise of Rights at any time prior to the occurrence of a Section 11(a)(ii) Event, or 
 (B) that may be issued upon exercise of Rights from and after the occurrence of a Section 11(a)(ii) Event, which Rights
were acquired by such Person or any of such Person’s Affiliates or Associates prior to the Distribution Date or pursuant to Section 3(c) or Section 22 hereof (the “Original Rights”) or pursuant to Section 11(i)
hereof in connection with an adjustment made with respect to any Original Rights; and 
 further provided, however, that:

 (x) no decision reached, or action taken, by the Board of Directors or any committee thereof shall cause any
Person (or any Affiliate or Associate of such Person) who is a member of the Board of Directors or such committee to be deemed, for the purposes of this Plan, to be a Beneficial Owner of any securities beneficially owned by any other Person (or any
Affiliate or Associate of such Person) who is a member of the Board of Directors or any committee thereof solely by reason of such membership of the Board of Directors or any committee thereof or participation in the decisions or actions thereof on
the part of either or both of such Persons, and 
 (y) no Person who is an officer, director or employee of an
Exempt Person shall be deemed, solely by reason of such Person’s status or authority as such, to be the “Beneficial Owner” of, to have “Beneficial Ownership” of, or to “beneficially own” any securities that are
“beneficially owned” (as defined in this paragraph (c)), including, without limitation, in a fiduciary capacity, by an Exempt Person or by any other such officer, director or employee of an Exempt Person. 
 Notwithstanding anything herein to the contrary, to the extent not within the foregoing provisions of this Section 1(c), a Person shall
be deemed the “Beneficial Owner” of and shall be deemed to “beneficially own” or have “beneficial ownership” of, securities and any other interest in Company Stock which such Person would be deemed to constructively own
or which otherwise would be aggregated with Company Stock owned by such Person pursuant to Section 382 of the Code and the Treasury Regulations thereunder. 
 (d) “Board of Directors” shall collectively mean the Company’s Board of Directors or any committee of members of the Board of Directors, which committee is authorized by the Board of
Directors (or the Certificate of Incorporation or bylaws of the Company) to take action in connection with this Plan. 
 (e)
“Business Day” shall mean any day other than a Saturday, a Sunday or a day on which banking institutions in the states of New York or New Jersey are authorized or obligated by law or executive order to close. 
  

 4 

 (f) “Certificate of Incorporation” shall mean the Company’s Restated
Certificate of Incorporation, as amended from time to time. 
 (g) “Close of Business” on any given date shall
mean 5:00 P.M., Eastern Standard Time, on such date; provided, however, that if such date is not a Business Day it shall mean 5:00 P.M., Eastern Standard Time, on the next succeeding Business Day. 
 (h) “Company” has the meaning given it in the first paragraph of this Plan. 
 (i) “Company Stock” shall mean: (i) shares of Company Common Stock, (ii) shares of preferred stock of the Company
(other than preferred stock described in Section 1504(a)(4) of the Code), (iii) warrants, rights, or options (including options within the meaning of Treasury Regulation § 1.382-2T(h)(4)(v)) to purchase stock of the Company, and
(iv) any interest that would be treated as “stock” of the Company for purposes of Section 382 of the Code or pursuant to Treasury Regulation § 1.382-2T(f)(18). 
 (j) “Exempt Transaction” shall mean (i) the transactions contemplated by the rights offering approved by the Board of
Directors as of the date hereof, pursuant to which the holders of Class A Common Stock and Class B Common Stock will be offered subscription rights to purchase shares of Class A Common Stock, including the purchase of such shares of
Class A Common Stock upon exercise of such subscription rights; and (ii) any other transaction or transactions that the Board of Directors determines, in its sole discretion, is exempt, including, without limitation, pursuant to
Section 31. 
 (k) “NOLs” shall mean the Company’s net operating loss carryforwards. 
 (l) “Person” shall mean any individual, partnership, firm, limited liability company, corporation, association, trust,
unincorporated organization or other entity, any syndicate or group deemed to be a person under Section 14(d)(2) of the Exchange Act as in effect on the date hereof, as well as any group of persons making a “coordinated acquisition”
of shares or otherwise treated as an entity within the meaning of Section 1.382-3(a)(1) of the Treasury Regulations and includes any successor (by merger or otherwise) of such individual or entity. 
 (m) “Preferred Stock” shall mean (1) the Series A Junior Participating Preferred Stock, par value $0.01 per share (the
“Series A Preferred”), of the Company having the voting powers, designation, preferences and relative, participating, optional or other special rights and qualifications, limitations and restrictions described in the Certificate of
Incorporation, including the Series A Certificate of Designation in substantially the form set forth as Exhibit D hereto and as amended or restated from time to time and (2) the Series B Junior Participating Preferred Stock, par
value $0.01 per share (the “Series B Preferred”), of the Company having the voting powers, designation, preferences and relative, participating, optional or other special rights and qualifications, limitations and restrictions
described in the Certificate of Incorporation, including the Series B Certificate of Designation in substantially the form set forth as Exhibit E hereto and as amended or restated from time to time. 
 (n) “Stock Acquisition Date” shall mean (1) the first date of public announcement (including, without limitation, the
filing of any report, or any amendment to any report, pursuant to Section 13(d) of the Exchange Act (or any comparable or successor report)) by the Company or an Acquiring Person that an Acquiring Person has become such, provided,
however, that if such Person is determined not to have become an Acquiring Person pursuant to Section 1(a) hereof, then no Stock Acquisition Date shall be deemed to have occurred, or (2) such earlier date as the Board of Directors
shall determine that a Person has become an Acquiring Person. 
 (o) “Subsidiary” shall mean, with reference to
any Person, any other Person of which an amount of voting securities or equity interests sufficient to elect at least a majority of the directors or equivalent governing body of such other Person is beneficially owned, directly or indirectly, by
such Person, or any other Person otherwise controlled by such first-mentioned Person. 
 (p) “Tax Benefits”
shall mean the net operating loss carry-overs, capital loss carry-overs, general business credit carry-overs, alternative minimum tax credit carry-overs and foreign tax credit carry-overs, as well as any “net unrealized built-in loss”
within the meaning of Section 382, of the Company or any direct or indirect Subsidiary thereof. 
  

 5 

 (q) “Treasury Regulations” shall mean the regulations, including temporary
regulations or any successor regulations, promulgated under the Code, as amended from time to time. 
 In addition, the
following terms are defined in the Sections indicated below: 
  

			
	 Defined Term
	  	 Section Number

	Adjustment Shares	  	11(a)(ii)
	Class A Common Stock	  	Whereas clause
	Class A Right	  	Whereas clause
	Class A Rights Certificates	  	3(a)
	Class B Common Stock	  	Whereas clause
	Class B Right	  	Whereas clause
	Class B Rights Certificates	  	3(a)
	common stock equivalents	  	11(a)(iii)
	Company	  	Preamble
	Company Common Stock	  	Whereas clause
	current market price	  	11(d)
	Current Value	  	11(a)(iii)
	Distribution Date	  	3(a)
	Equivalent Preferred Stock	  	11(b)
	Exchange Act	  	1(b)
	Exchange Act Regulations	  	1(c)
	Exchange Ratio	  	24(a)
	Exempt Person	  	1(a)
	Exemption Request	  	31
	Existing Holder	  	1(a)(i)(F)
	Expiration Date	  	7(a)
	Final Expiration Date	  	7(a)
	Original Rights	  	1(c)
	Plan	  	Preamble
	Purchase Price	  	7(b) or 11(a)(ii), as applicable
	Record Date	  	Whereas clause
	Redemption Price	  	23(a)
	Registration Date	  	9(c)
	Registration Statement	  	9(c)
	Requesting Person	  	31
	Right	  	Whereas clause
	Rights Agent	  	Preamble
	Rights Certificates	  	3(a)
	Rights Dividend Declaration Date	  	Whereas clause
	Section 11(a)(ii) Event	  	11(a)(ii)
	Section 11(a)(iii) Trigger Date	  	11(a)(iii)
	Securities Act	  	9(c)
	Series A Preferred	  	1(m)
	Series B Preferred	  	1(m)
	Spread	  	11(a)(iii)
	Substitution Period	  	11(a)(iii)
	Summary of Rights	  	3(b)
	Trading Day	  	11(d)(i)
	Unit	  	7(b)

  

 6 

 Section 2. Appointment of Rights Agent. The Company hereby appoints the Rights
Agent to act as agent for the Company in accordance with the express terms and conditions hereof (and no implied terms or conditions), and the Rights Agent hereby accepts such appointment. The Company may from time to time appoint such co-rights
agents as it may deem necessary or desirable. The Rights Agent shall have no duty to supervise, and in no event shall be liable for, the acts or omissions of any such co-rights agent. 
 Section 3. Issuance of Rights Certificates. 
 (a) Until the earlier of (i) the Close of Business on the tenth Business Day after the Stock Acquisition Date (or, if the tenth Business Day after the Stock Acquisition Date occurs before the Record
Date, the Close of Business on the Record Date), and (ii) the Close of Business on the tenth Business Day (or such later date as may be determined by action of the Board of Directors) after the date that a tender or exchange offer by any Person
(other than an Exempt Person) is first published or sent or given within the meaning of Rule 14d-4(a) of the Exchange Act Regulations or any successor rule, if upon consummation thereof such Person would be an Acquiring Person (including, in
the case of both clause (i) and (ii), any such date which is after the date of this Plan and prior to the issuance of the Rights) (the earlier of (i) and (ii) above being the “Distribution Date”): 
 (x) the Rights will be evidenced (subject to the provisions of paragraph (b) of this Section 3) by the certificates
for shares of Company Common Stock registered in the names of the holders of shares of Company Common Stock as of and subsequent to the Record Date (which certificates for shares of Company Common Stock shall be deemed also to be certificates for
Rights) and not by separate certificates, 
 (y) the registered holders of shares of Company Common Stock shall
also be the registered holders of the Rights issued with respect thereto, and 
 (z) the Rights will be
transferable by, and only in connection with, the transfer of the underlying shares of Company Common Stock including a transfer to the Company; 
 provided, however, that if a tender or exchange offer is terminated prior to the occurrence of a Distribution Date, then no Distribution Date shall occur as a result of such tender or exchange offer. As soon as practicable
after the Distribution Date, the Company will prepare and execute, the Rights Agent will countersign, and the Company will send or cause to be sent (and the Rights Agent will, if requested and provided with all necessary information, send) by
first-class, insured, postage prepaid mail, (i) to each record holder of shares of Class A Common Stock as of the Close of Business on the Distribution Date, at the address of such holder shown on the records of the Company or the transfer
agent or registrar for the Company Common Stock, one or more Class A rights certificates, in substantially the form of Exhibit A hereto (the “Class A Rights Certificates”), evidencing one Class A Right for each
share of Class A Common Stock so held, subject to adjustment as provided herein, and (ii) to each record holder of shares of Class B Common Stock as of the Close of Business on the Distribution Date, at the address of such holder shown on
the records of the Company or the transfer agent or registrar for the Company Common Stock, one or more Class B rights certificates, in substantially the form of Exhibit B hereto (the “Class B Rights Certificates” and
together with the Class A Rights Certificates, the “Rights Certificates”), evidencing one Class B Right for each share of Class B Common Stock so held, subject to adjustment as provided herein. 
 The Company shall promptly notify the Rights Agent in writing upon the occurrence of the Distribution Date and, if such notification is
given orally, the Company shall confirm same in writing on or prior to the Business Day next following. Until such notice is received by the Rights Agent, the Rights Agent may presume conclusively for all purposes that the Distribution Date has not
occurred. 
 In the event that an adjustment in the number of Rights per share of Company Common Stock has been made pursuant to
Section 11(o) hereof, at the time of distribution of the Rights Certificates, the Company may make the necessary and appropriate rounding adjustments (in accordance with Section 14(a) hereof) so that Rights Certificates representing only
whole numbers of Rights are distributed and cash is paid in lieu of any fractional Rights. As of and after the Distribution Date, the Rights will be evidenced solely by such Rights Certificates. 
  

 7 

 (b) As promptly as practicable following the Record Date, the Company will mail or otherwise
make available a copy of a Summary of Rights to Purchase Preferred Stock, in substantially the form attached hereto as Exhibit C (the “Summary of Rights”), to each record holder of shares of Company Common Stock as of
the Close of Business on the Record Date. With respect to certificates for Company Common Stock outstanding as of the Record Date or issued subsequent to the Record Date but prior to the earlier of the Distribution Date and the Expiration Date,
until the Distribution Date the Rights will be evidenced by such certificates registered in the names of the holders thereof. Until the Distribution Date (or, if earlier, the Expiration Date), the surrender for transfer of any such certificate for
Company Common Stock outstanding as of the Record Date shall also constitute the transfer of the Rights associated with the Company Common Stock represented thereby. 
 (c) Rights shall, without any further action, be issued in respect of all shares of Company Common Stock which are issued (including any shares of Company Common Stock held in treasury) after the Record
Date but prior to the earlier of the Distribution Date and the Expiration Date. In addition, Rights shall be issued with respect to all shares of Company Common Stock described in the second sentence of Section 22 hereof, subject to the
provisions thereof. Certificates representing such shares of Company Common Stock issued after the Record Date shall bear a legend in substantially the following form: 
 This certificate also evidences and entitles the holder hereof to certain Rights as set forth in the Tax Benefits Preservation Plan between
ICO Global Communications (Holdings) Limited (the “Company”) and Mellon Investor Services LLC (the “Rights Agent”), dated as of January 29, 2010, as amended from time to time (the “Tax Benefits Plan”), the terms of
which are hereby incorporated herein by reference and a copy of which is on file at the office of the Company designated for such purpose. Under certain circumstances, as set forth in the Tax Benefits Plan, such Rights will be evidenced by separate
certificates and will no longer be evidenced by this certificate. The Company will mail to the holder of this certificate a copy of the Tax Benefits Plan, as in effect on the date of mailing, without charge promptly after receipt of a written
request therefor. UNDER CERTAIN CIRCUMSTANCES SET FORTH IN THE TAX BENEFITS PLAN, RIGHTS ISSUED TO, OR HELD BY, ANY PERSON WHO IS, WAS OR BECOMES AN ACQUIRING PERSON OR ANY AFFILIATE OR ASSOCIATE THEREOF (AS SUCH TERMS ARE DEFINED IN THE TAX
BENEFITS PLAN), WHETHER CURRENTLY HELD BY OR ON BEHALF OF SUCH PERSON OR BY ANY SUBSEQUENT HOLDER, MAY BECOME NULL AND VOID. 
 With respect to
certificates representing shares of Company Common Stock that bear the foregoing legend, until the earlier of the Distribution Date and the Expiration Date, the Rights associated with the shares of Company Common Stock represented by such
certificates shall be evidenced by such certificates alone and registered holders of the shares of Company Common Stock shall also be the registered holders of the associated Rights, and the transfer of any of such certificates shall also constitute
the transfer of the Rights associated with the shares of Company Common Stock represented by such certificates. 
 (d) In the
event that the Company purchases or acquires any shares of Company Common Stock after the Record Date but prior to the Distribution Date, any Rights associated with such shares of Company Common Stock shall be deemed canceled and returned so that
the Company shall not be entitled to exercise any Rights associated with the shares of Company Common Stock that are no longer outstanding. 
 (e) Notwithstanding anything to the contrary contained herein, shares of Company Common Stock and Rights (and any securities issuable on their exercise) may be issued and transferred by book-entry and not
represented by physical certificates. Where shares of Company Common Stock and Rights (and any securities issuable on their exercise) are held in uncertificated form, the Company and the Rights Agent shall cooperate in all respects to give effect to
the intent of the provisions contained herein. Without limiting the foregoing, with respect to Company Common Stock evidenced solely by book-entry (and not represented by physical certificates), (i) until the Distribution Date, the Rights
associated therewith will be evidenced by the balances indicated in the book-entry account system of the transfer agent for the Company Common Stock and not by separate Rights Certificates, (ii) until the earlier of the Distribution Date or the
Expiration Date, the transfer of shares of Company Common Stock evidenced solely by book-entry shall also constitute the transfer of Rights associated with such shares of Company Common tock, and (iii) confirmation and account statements sent
to holders of Company Common Stock evidenced solely by book-entry issued after the Record Date shall bear a statement in substantially the form of the legend set forth in subsection (c) of this Section 3. 
  

 8 

 Section 4. Form of Rights Certificates. 
 (a) The Class A Rights Certificates and Class B Rights Certificates (and the forms of election to purchase and of assignment and the
certificates to be printed on the reverse thereof) shall each be substantially in the respective forms set forth in Exhibit A and Exhibit B hereto, and may have such marks of identification or designation and such legends,
summaries or endorsements printed thereon as the Company may deem appropriate (but which do not affect the rights, duties, liabilities or responsibilities of the Rights Agent) and as are not inconsistent with the provisions of this Plan, or as may
be required to comply with any applicable law or any rule or regulation thereunder or with any rule or regulation of any stock exchange or automated quotation system on which the Rights may from time to time be listed or to conform to usage. Subject
to the provisions of Section 11 and Section 22 hereof, the Rights Certificates, whenever distributed, shall be dated as of the Record Date (or in the case of Rights issued with respect to Company Common Stock issued by the Company after
the Record Date, as of the date of issuance of such Company Common Stock) and on their face shall entitle the holders thereof to purchase such number of Units of Series A Preferred or Series B Preferred, as applicable, as shall be set forth therein
at the price set forth therein, provided, however, that the amount and type of securities, cash or other assets that may be acquired upon the exercise of each Right and the Purchase Price thereof shall be subject to adjustment as
provided herein. 
 (b) Any Rights Certificate that represents Rights which are null and void pursuant to Section 7(e) of
this Plan and any Rights Certificate issued pursuant to Section 6 or Section 11 hereof upon transfer, exchange, replacement or adjustment of any other Rights Certificate referred to in this sentence, shall contain (provided that the
Company has notified the Rights Agent in writing that this Section 4(b) applies and to the extent feasible) a legend in substantially the following form: 
 THE RIGHTS REPRESENTED BY THIS RIGHTS CERTIFICATE ARE OR WERE BENEFICIALLY OWNED BY A PERSON WHO WAS OR BECAME AN ACQUIRING PERSON OR AN AFFILIATE OR ASSOCIATE OF AN ACQUIRING PERSON (AS SUCH TERMS ARE
DEFINED IN THE TAX BENEFITS PLAN). ACCORDINGLY, THIS RIGHTS CERTIFICATE AND THE RIGHTS REPRESENTED HEREBY ARE NULL AND VOID. 
 The provisions
of Section 7(e) hereof shall be operative whether or not the foregoing legend is contained on any such Right Certificate. 
 Section 5. Countersignature and Registration. 
 (a) Any Rights Certificates shall be executed on behalf of
the Company by its Chief Executive Officer or one of its Vice Presidents and shall be attested by its Secretary, Treasurer or one of its Assistant Secretaries and shall have affixed thereto the Company’s seal (if any) or a facsimile thereof.
The signature of any of these officers on the Rights Certificates may be manual or facsimile. Rights Certificates bearing the manual or facsimile signatures of the individuals who were at any time the proper officers of the Company shall bind the
Company, notwithstanding that such individuals or any of them have ceased to hold such offices prior to the countersignature of such Rights Certificates or did not hold such offices at the date of such Rights Certificates. No Rights Certificate
shall be entitled to any benefit under this Plan or be valid for any purpose unless there appears on such Rights Certificate a countersignature duly executed by the Rights Agent by manual or facsimile signature of an authorized signatory, and such
countersignature upon any Rights Certificate shall be conclusive evidence, and the only evidence, that such Rights Certificate has been duly countersigned as required hereunder. 
 (b) Following the Distribution Date, receipt by the Rights Agent of notice to that effect and all other relevant information referred to in
Section 3(a), the Rights Agent will keep or cause to be kept, at its office designated for surrender of Rights Certificates upon exercise or transfer, books for registration and transfer of the Rights Certificates issued hereunder. Such books
shall show the name and address of each holder of the Rights Certificates, the number of Rights evidenced on its face by each Rights Certificate and the date of each Rights Certificate. 
  

 9 

 Section 6. Transfer, Split Up, Combination and Exchange of Rights Certificates;
Mutilated, Destroyed, Lost or Stolen Rights Certificates. 
 (a) Subject to the provisions of Sections 4, 7(e) and 14
hereof, at any time after the Close of Business on the Distribution Date, and at or prior to the Close of Business on the Expiration Date, any Rights Certificate or Certificates may be transferred, split up, combined or exchanged for another Rights
Certificate or Certificates, entitling the registered holder to purchase a like number of Units of the applicable series of Preferred Stock (or, following a Section 11(a)(ii) Event, other securities, cash or other assets, as the case may be) as
the Rights Certificate or Certificates surrendered then entitled such holder (or former holder, in the case of a transfer) to purchase. Any registered holder desiring to transfer, split up, combine or exchange any Rights Certificate or Certificates
shall make such request in writing delivered to the Rights Agent, and shall surrender the Rights Certificate or Certificates to be transferred, split up, combined or exchanged at the office of the Rights Agent designated for such purpose. The Rights
Certificates are transferable only on the registry books of the Rights Agent. Neither the Rights Agent nor the Company shall be obligated to take any action whatsoever with respect to the transfer of any such surrendered Rights Certificate until the
registered holder shall have (i) properly completed and duly executed the certificate set forth in the form of assignment on the reverse side of such Rights Certificate, (ii) provided such additional evidence of the identity of the
Beneficial Owner (or former Beneficial Owner) of the Rights represented by such Rights Certificate or Affiliates or Associates thereof as the Company or the Rights Agent shall reasonably request, and (iii) paid a sum sufficient to cover any tax
or charge that may be imposed in connection with any transfer, split up, combination or exchange of Right Certificates as required by Section 9(e) hereof. Thereupon the Rights Agent shall, subject to the provisions of Section 4,
Section 7(e), Section 14 and Section 24 hereof, manually or by facsimile, countersign and deliver to the Person entitled thereto a Rights Certificate or Rights Certificates, as the case may be, as so requested. The Rights Agent shall
forward any such sum collected by it to the Company or to such Persons as the Company shall specify by written notice. The Rights Agent shall have no duty or obligation under any Section of this Plan which requires the payment of taxes or charges
unless and until it is satisfied that all such taxes and/or charges have been paid. 
 (b) Subject to Section 7(e) hereof,
if a Rights Certificate shall be mutilated, lost, stolen or destroyed, upon request by the registered holder of the Rights represented thereby and upon payment to the Company and the Rights Agent of all reasonable expenses incidental thereto, and
upon surrender to the Rights Agent and cancellation of the mutilated Rights Certificate, or in substitution for the lost, stolen or destroyed Rights Certificate, the Company will make and deliver a new Rights Certificate in substantially the form of
the prior Rights Certificate, of like tenor and representing the equivalent number of Rights, to the Rights Agent for countersignature and delivery to the registered holder in lieu of the Rights Certificate so lost, stolen, destroyed or mutilated,
but in the case of loss, theft or destruction, only upon receipt of evidence satisfactory to the Company and the Rights Agent of such loss, theft or destruction of such Rights Certificate and, if requested by the Company or the Rights Agent,
indemnity also satisfactory to it. 
 Section 7. Exercise of Rights; Purchase Price; Expiration Date of Rights.

 (a) Prior to the earlier of (i) the Close of Business on the tenth (10th) anniversary hereof (the “Final Expiration
Date”), (ii) the time at which the Rights are redeemed as provided in Section 23 hereof or exchanged as provided in Section 24 hereof, and (iii) the repeal of Section 382 of the Code or any successor statute if the
Board of Directors determines that this Plan is no longer necessary for the preservation of Tax Benefits, at which time the Rights are deemed terminated (the earlier of (i), (ii), and (iii) being the “Expiration Date”), the
registered holder of any Rights Certificate may, subject to the other provisions hereof, including without limitation Sections 7(e), 7(f), 9(c), 11(a) and 23 hereof, exercise the Rights evidenced thereby, in whole or in part, at any time after
the Distribution Date upon surrender of the Rights Certificate, with the form of election to purchase and the certificate on the reverse side thereof properly completed and duly executed, to the Rights Agent at the office of the Rights Agent
designated for such purpose, together with payment of the aggregate Purchase Price for the number and series of Units of Preferred Stock (or, following a Section 11(a)(ii) Event, other securities, cash or other assets, as the case may be) for
which such surrendered Rights are then exercisable, and an amount equal to any tax or charge required to be paid under Section 9(e) hereof, by certified check, cashier’s check, bank draft or money order

  

 10 

 
payable to the order of the Company. Except for those provisions herein which expressly survive the termination of this Plan, this Plan shall terminate at such time as the Rights are no longer
exercisable hereunder. If the Expiration Date occurs as a result of (iii) above, the Company shall give the Rights Agent written notice of the Expiration Date, and the Rights Agent shall not be deemed to have knowledge of the Expiration Date
unless and until it has received such written notice. 
 (b) The purchase price for each one one-thousandth of a share (each
such one one-thousandth of a share being a “Unit”) of Preferred Stock upon exercise of Rights shall be $12.40, subject to adjustment from time to time as provided in Section 11 hereof (such purchase price, as so adjusted, being
the “Purchase Price”), and shall be payable in lawful money of the United States of America in accordance with paragraph (c) below. 
 (c) Upon receipt of a Rights Certificate representing exercisable Rights, with the form of election to purchase and the certificate properly completed and duly executed, accompanied by payment, with
respect to each Right so exercised, of the Purchase Price for the Units of Preferred Stock (or, following a Section 11(a)(ii) Event, other securities, cash or other assets, as the case may be) to be purchased thereby as set forth below and an
amount equal to any applicable tax or charge required to be paid under Section 9(e) hereof, by certified check, cashier’s check, bank draft or money order payable to the order of the Company, or evidence satisfactory to the Company and the
Rights Agent of payment of such tax or charge, the Rights Agent shall, subject to Section 20(k) hereof, thereupon promptly: 
 (i)(A) requisition from any transfer agent of the Preferred Stock (or make available, if the Rights Agent is the transfer agent for the Preferred Stock) a certificate or certificates for the number
of Units of the applicable series of Preferred Stock to be purchased, and the Company hereby irrevocably authorizes each such transfer agent to comply with all such requests, or (B) if the Company shall have elected to deposit the total number
of Units of Preferred Stock issuable upon exercise of the Rights hereunder with a depositary agent, requisition from the depositary agent depositary receipts representing interests in such number of Units of the applicable series of Preferred Stock
as are to be purchased (in which case certificates for the Units of Preferred Stock represented by such receipts shall be deposited by the transfer agent with the depositary agent) and the Company hereby directs each such depositary agent to comply
with such request, 
 (ii) after receipt of such certificates or depositary receipts, cause the same to be
delivered to or, upon the order of the registered holder of such Rights Certificate, registered in such name or names as may be designated by such holder, 
 (iii) when necessary to comply with this Plan requisition from the Company the amount of cash to be paid in lieu of fractional shares in accordance with Section 14 hereof, and 
 (iv) when necessary to comply with this Plan, after receipt thereof, deliver such cash to or upon the order of the registered
holder of such Rights Certificate. 
 In the event that the Company is obligated to issue Company Common Stock or other securities of the
Company, pay cash and/or distribute other property pursuant to Section 11(a) hereof, the Company will make all arrangements necessary so that such Company Common Stock, other securities, cash and/or other property are available for distribution
by the Rights Agent, if and when necessary to comply with this Plan. The payment of the Purchase Price (as such amount may be reduced pursuant to Section 11(a)(iii) hereof) shall be made in cash or by certified or bank check or money order
payable to the order of the Company. 
 (d) In case the registered holder of any Rights Certificate shall exercise less than all
the Rights evidenced thereby, a new Rights Certificate evidencing the Rights remaining unexercised shall be issued by the Rights Agent and delivered to, or upon the order of, the registered holder of such Rights Certificate, registered in such name
or names as may be designated by such holder, subject to the provisions of Sections 6 and 14 hereof. 
 (e)
Notwithstanding anything in this Plan to the contrary, from and after the first occurrence of any Section 11(a)(ii) Event, any Rights beneficially owned by: 
 (i) an Acquiring Person or an Associate or Affiliate of an Acquiring Person, 
  

 11 

 (ii) a transferee of an Acquiring Person (or of any such Associate or
Affiliate) which becomes a transferee after the Acquiring Person becomes such, or 
 (iii) a transferee of an
Acquiring Person (or of any such Associate or Affiliate) which becomes a transferee prior to or concurrently with the Acquiring Person becoming such and which receives such Rights pursuant to either (A) a transfer (whether or not for
consideration) from the Acquiring Person (or any such Associate or Affiliate) to holders of equity interests in such Acquiring Person (or any such Associate or Affiliate) or to any Person with whom the Acquiring Person (or such Associate or
Affiliate) has any continuing agreement, arrangement or understanding regarding the transferred Rights, Company Stock or the Company or (B) a transfer which the Board of Directors has determined to be part of a plan, arrangement or
understanding which has as a primary purpose or effect the avoidance of this Section 7(e), 
 shall be null and void without any further
action, and no holder of such Rights shall have any rights whatsoever with respect to such Rights, whether under any provision of this Plan or otherwise. The Company shall use all reasonable efforts to ensure that the provisions of this
Section 7(e) and Section 4(b) hereof are complied with, but neither the Company nor the Rights Agent shall have any liability to any holder of Rights or any other Person as a result of the Company’s failure to make or delay in making
any determinations with respect to an Acquiring Person or its Affiliates or Associates or any transferee or any of them hereunder. 
 (f) Notwithstanding anything in this Plan or any Rights Certificate to the contrary, neither the Rights Agent nor the Company shall be obligated to undertake any action with respect to a registered holder of Rights or any other securities
upon the occurrence of any purported exercise by such registered holder unless such registered holder shall have (i) properly completed and duly executed the certificate following the form of election to purchase set forth on the reverse side
of the Rights Certificate surrendered for such exercise, (ii) not indicated an affirmative response to clause 1 or 2 thereof, and (iii) provided such additional evidence of the identity of the Beneficial Owner (or former Beneficial Owner)
of the Rights represented by such Rights Certificate or Affiliates or Associates thereof as the Company or the Rights Agent shall reasonably request. 
 Section 8. Cancellation and Destruction of Rights Certificates. All Rights Certificates surrendered for the purpose of exercise, transfer, split up, combination or exchange shall, if
surrendered to the Company or any of its agents, be delivered to the Rights Agent for cancellation or in cancelled form, or, if surrendered to the Rights Agent, shall be cancelled by it, and no Rights Certificates shall be issued in lieu thereof
except as expressly permitted by this Plan. The Company shall deliver to the Rights Agent for cancellation and retirement, and the Rights Agent shall so cancel and retire, any Rights Certificates acquired by the Company otherwise than upon the
exercise thereof. The Rights Agent shall deliver all cancelled Rights Certificates to the Company, or shall, at the written request of the Company, destroy such cancelled Rights Certificates, and in such case shall deliver a certificate of
destruction thereof to the Company. 
 Section 9. Reservation and Availability of Capital Stock. 
 (a) The Company shall, at all times prior to the occurrence of a Section 11(a)(ii) Event, cause to be reserved and kept available, out
of its authorized and unissued shares of preferred stock or its authorized and issued shares of preferred stock held in its treasury, and, after the occurrence of a Section 11(a)(ii) Event, to the extent reasonably practical, cause to be
reserved and kept available, out of its authorized but unissued shares of preferred stock, Company Common Stock and/or other securities or its authorized and issued shares held in its treasury, the number of shares of Series A Preferred and Series B
Preferred (and, following the occurrence of a Section 11(a)(ii) Event, Company Common Stock and/or other securities) that, as provided in this Plan, will be sufficient to permit the exercise in full of all outstanding Rights. Upon the
occurrence of any events resulting in an increase in the aggregate number of shares of Preferred Stock (or other equity securities of the Company) issuable upon exercise of all outstanding Rights above the number then reserved, the Company shall
make appropriate increases in the number of shares so reserved to the extent reasonably practicable. 
  

 12 

 (b) If the shares of Preferred Stock (and, following the occurrence of a
Section 11(a)(ii) Event, Company Common Stock and/or other securities) to be issued and delivered upon the exercise of the Class A Rights may be listed on any national securities exchange or automated quotation system, the Company shall
use reasonable efforts (as determined by the Board of Directors) to cause, from and after the time that the Class A Rights become exercisable, all securities reserved for such issuance to be listed on such exchange or quotation system upon
official notice of issuance upon such exercise. If the shares of Preferred Stock (and, following the occurrence of a Section 11(a)(ii) Event, Company Common Stock and/or other securities) to be issued and delivered upon the exercise of the
Class B Rights may be listed on any national securities exchange or automated quotation system, the Company also may elect to endeavor to cause any of such securities to be listed on any exchange or quotation system if the Board of Directors so
determines, in its sole discretion. 
 (c) If the Company determines that registration under the Securities Act of 1933, as
amended (the “Securities Act”) or qualification under any state securities or “blue sky” laws is required, then the Company shall use reasonable efforts (as determined by the Board of Directors): 
 (i) as soon as practicable following the earliest date after (x) the occurrence of a Section 11(a)(ii) Event and a
determination by the Company of the consideration to be delivered by the Company upon exercise of the Rights (including in accordance with Section 11(a)(iii) hereof) or (y) if so required by law, the Distribution Date (such date being the
“Registration Date”), to file a registration statement on an appropriate form under the Securities Act, with respect to the securities that may be acquired upon exercise of the Rights (the “Registration Statement”),

 (ii) to cause the Registration Statement to become effective as soon as practicable after such filing,

 (iii) to cause the Registration Statement to continue to be effective (and to include a prospectus complying
with the requirements of the Securities Act) until the earlier of (A) the date as of which the Rights are no longer exercisable for the securities covered by the Registration Statement, and (B) the Expiration Date, and 
 (iv) to take as soon as practicable following the Registration Date such action as may be required to ensure that any
acquisition of securities upon exercise of the Rights complies with any applicable state securities or “blue sky” laws. 
 The Company
may temporarily suspend the exercisability of the Rights in order to prepare and file such registration statement and permit it to become effective. Upon any such suspension, the Company shall issue a public announcement stating that the
exercisability of the Rights has been temporarily suspended, as well as a public announcement at such time as the suspension is no longer in effect. The Company shall notify the Rights Agent whenever it makes a public announcement pursuant to this
Section 9(c) and give the Rights Agent a copy of such announcement. Notwithstanding any provision of this Plan to the contrary, the Rights shall not be exercisable in any jurisdiction if the requisite qualification in such jurisdiction shall
not have been obtained, the exercise thereof shall not be permitted under applicable law or a requisite registration statement shall not have been declared effective. 
 (d) The Company shall take all such action as may be necessary to ensure that all shares of Preferred Stock (and, following the occurrence of a Section 11(a)(ii) Event, any other securities that may
be delivered upon exercise of Rights) shall be, at the time of delivery of the certificates or depositary receipts for such securities (subject to payment of the Purchase Price and compliance with all other provisions of this Plan), duly and validly
authorized and issued and fully paid and nonassessable. 
 (e) The Company shall pay when due and payable any and all taxes and
charges which may be payable in respect of the issuance or delivery of the Rights Certificates or of any Preferred Stock (or any other securities or assets, as the case may be) upon the exercise of Rights; provided, however, the
Company shall not be required to pay any such tax or charge imposed in connection with the issuance or delivery of Units of Preferred Stock, or any certificates or depositary receipts for such Units of Preferred Stock (or, following the occurrence
of a Section 11(a)(ii) Event, any other securities, cash or assets, as the case may be) to any Person other than the registered holder of the Rights Certificates evidencing the Rights surrendered for exercise. The Company shall not be required
to issue or deliver any certificates or depositary receipts for Units of Preferred Stock (or, following the occurrence of a Section 11(a)(ii) Event, any other securities, cash or assets, as the case may be) to, or in a name

  

 13 

 
other than that of, the registered holder upon the exercise of any Rights until any such tax or charge shall have been paid (any such tax or charge being payable by the holder of such Rights
Certificate at the time of surrender) or until it has been established to the Company’s or the Rights Agent’s satisfaction that no such tax or charge is due. 
 Section 10. Preferred Stock Record Date. Each Person in whose name any certificate or depositary receipt for Units of Preferred Stock (or other securities, as the case may be) is issued upon
the exercise of Rights shall for all purposes be deemed to have become the holder of record of the Units of Preferred Stock (or other securities) represented thereby on, and such certificate shall be dated, the date upon which the Rights Certificate
evidencing such Rights was duly surrendered and payment of the Purchase Price (and any applicable taxes or charges) was made; provided, however, that if the date of such surrender and payment is a date upon which the Preferred Stock
(or other securities, as the case may be) transfer books of the Company are closed, such Person shall be deemed to have become the record holder of such securities on, and such certificate shall be dated, the next succeeding Business Day on which
the Preferred Stock (or other securities) transfer books of the Company are open; further provided, however, that if delivery of Units of Preferred Stock (or other securities, as the case may be) is delayed pursuant to
Section 9(c) hereof, such Persons shall be deemed to have become the record holders of such Units of Preferred Stock (or other securities) only when such Units (or other securities) first become deliverable. Prior to the exercise of the Rights
evidenced thereby, the holder of a Rights Certificate shall not be entitled to any rights of a stockholder of the Company with respect to securities for which the Rights shall be exercisable, including, without limitation, the right to vote, to
receive dividends or other distributions or to exercise any preemptive rights, and shall not be entitled to receive any notice of any proceedings of the Company, except as provided herein. 
 Section 11. Adjustment of Purchase Price, Number and Kind of Shares or Number of Rights. The Purchase Price, the number and kind
of securities purchasable upon exercise of each Right and the number of Rights outstanding are subject to adjustment from time to time as provided in this Section 11. 
 (a)(i) In the event the Company shall at any time after the date of this Plan (A) declare a dividend on the Series A
Preferred or Series B Preferred, payable in shares of Series A Preferred or Series B Preferred, respectively, (B) subdivide the outstanding Series A Preferred or Series B Preferred, (C) combine the outstanding Series A Preferred or Series
B Preferred into a smaller number of shares, or (D) issue any shares of its capital stock in a reclassification of the Series A Preferred or Series B Preferred (including any such reclassification in connection with a consolidation or merger in
which the Company is the continuing or surviving corporation), except as otherwise provided for herein, including this Section 11(a), the Purchase Price for the Series A Preferred and/or Series B Preferred, as applicable, in effect at the time
of the record date for such dividend or of the effective date of such subdivision, combination or reclassification, and the number of shares of the applicable series of Preferred Stock or other capital stock, as the case may be, issuable on such
date upon exercise of the Rights, shall be proportionately adjusted so that the holder of any Right exercised after such time shall be entitled to receive, upon payment of the applicable Purchase Price then in effect, the aggregate number of shares
of the applicable series of Preferred Stock or other capital stock, as the case may be, which, if such Right had been exercised immediately prior to such date and at a time when the transfer books of the Company were still open, such holder would
have owned upon such exercise and been entitled to receive by virtue of such dividend, subdivision, combination or reclassification. If an event occurs which would require an adjustment under both this Section 11(a)(i) and
Section 11(a)(ii) hereof, the adjustment provided for in this Section 11(a)(i) shall be in addition to, and shall be made prior to, any adjustment required pursuant to Section 11(a)(ii) hereof. 
 (ii) In the event any Person, alone or together with its Affiliates and Associates, shall become an Acquiring Person, then,
immediately upon the occurrence of such event (a “Section 11(a)(ii) Event”), each holder of a Right (except as otherwise provided herein, including Section 7(e) hereof) shall thereafter have the right to receive, upon
exercise of such Right at the then-current Purchase Price in accordance with the terms of this Plan, in lieu of the number of Units of Series A Preferred or Series B Preferred for which a Right was exercisable immediately prior to the first
occurrence of a Section 11(a)(ii) Event (whether or not such Right was then exercisable), such number of Units of Series A Preferred or Series B Preferred, as applicable, as shall equal the result obtained by: 
 (A) multiplying the then-current Purchase Price by the number of Units of Series A Preferred or Series B Preferred, as
applicable, for which a Right was exercisable immediately prior to the first occurrence of a Section 11(a)(ii) Event (whether or not such Right was then exercisable) (such product thereafter being, for all purposes of this Plan, the
“Purchase Price”), and 
  

 14 

 (B) dividing that product by 50% of the current market price (determined
pursuant to Section 11(d) hereof) per Unit of Series A Preferred or Series B Preferred, as applicable, on the date of such first occurrence 
 (such Units of Series A Preferred or Series B Preferred, as applicable, being the “Adjustment Shares”); provided, however, that the Purchase Price and the number of Units of
Series A Preferred or Series B Preferred, as applicable, so receivable upon exercise of a Right shall, following the Section 11(a)(ii) Event, be subject to further adjustment as appropriate in accordance with this Section 11. 

(iii) The Company, by the vote of the Board of Directors, may at its option substitute for a Unit of Series A Preferred or
Series B Preferred, as applicable, issuable upon the exercise of Rights in accordance with the foregoing subparagraph (ii), shares of the applicable class of Company Common Stock or fractions thereof having a current market price (as determined
by Section 11(d) hereof) equal to the current market price of a Unit of Series A Preferred or Series B Preferred, as applicable, on the date of the Section 11(a)(ii) Event. In the event that: (x) the number of shares of Series A
Preferred or Series B Preferred, as applicable (or, if the Company shall have determined to substitute shares of Company Common Stock for Units of Series A Preferred or Series B Preferred pursuant to the preceding sentence, the applicable class of
Company Common Stock) which are authorized by the Certificate of Incorporation, but not outstanding or reserved for issuance for purposes other than upon exercise of the Rights, is not sufficient to permit the exercise in full of the Rights in
accordance with the foregoing subparagraph (ii) of this Section 11(a) or (y) the securities issuable upon exercise of the Rights are required to be registered under the Securities Act or registered or qualified under applicable state
securities laws or “blue sky” laws and the Board of Directors has determined that it is not reasonable to pursue such registration or qualification, then the Company shall, to the extent permitted by applicable law: 
 (A) determine the excess of (1) the value of the Adjustment Shares issuable upon the exercise of a Right (the
“Current Value”) over (2) the Purchase Price (such excess being the “Spread”), and 
 (B) with respect to each Right (other than Rights which have become null and void pursuant to Section 7(e)), make adequate provision to substitute, in whole or in part, for such Adjustment Shares,
upon exercise of a Right and payment of the applicable Purchase Price, (1) cash, (2) a reduction in the Purchase Price, (3) shares of the applicable class of Company Common Stock or other comparable equity securities of the Company
(including, without limitation, shares, or units of shares, of preferred stock which, having dividend, voting and liquidation rights substantially comparable to those of the Class A Common Stock or Class B Common Stock, as the case may be, as
determined by the Board in its sole discretion (such other shares being “common stock equivalents”)), (4) debt securities of the Company, (5) other assets, or (6) any combination of the foregoing, having an aggregate
value which, when added to the value of the Units of Series A Preferred or Series B Preferred, as applicable, actually issued upon exercise of such Right, shall have an aggregate value equal to the Current Value (less the amount of any
reduction in such Purchase Price), where such aggregate value has been determined by the Board of Directors, after receiving advice from a nationally recognized investment banking firm; 
 provided, however, that if the Company shall not have made adequate provision to deliver value pursuant to clause (B)
above within ninety days following the date on which the Company’s right of redemption pursuant to Section 23(a) expires (such ninety day period, as it may be extended hereunder, being referred to herein as the “Substitution
Period,” and such date being referred to herein as the “Section 11(a)(iii) Trigger Date”), then, subject to Section 24 hereof, the Company shall be obligated (to the extent permitted by applicable law and any
material agreements then in effect to which the Company is a party) to deliver,

  

 15 

 
upon the surrender for exercise of a Right and without requiring payment of the Purchase Price, either (x) to the extent permitted by law, including applicable federal and state securities
law, Units of the applicable series of Preferred Stock (to the extent available) and then, if necessary, shares (or fractions of shares, at the discretion of the Board of Directors) of the applicable class of Company Common Stock (to the extent
available) or (y) cash, or (z) a combination thereof, which Units of Preferred Stock, shares (or fractions of shares) of Company Common Stock and/or cash shall have an aggregate value equal to the Spread. If the Board of Directors
determines that: (x) it is likely that sufficient additional shares of Preferred Stock or Company Common Stock could be authorized for issuance upon exercise in full of the Rights or (y) the securities issuable upon exercise of the Rights
are required to be registered under the Securities Act or registered or qualified under applicable state securities laws or “blue sky” laws, then the Substitution Period may be extended to the extent necessary, in order that the Company
may seek stockholder approval for the authorization of such additional shares or register or qualify such issuable securities, as applicable. 
 To the extent that the Company determines that some action need be taken pursuant to the second and/or third sentences of this Section 11(a)(iii), the Company (x) shall provide, subject to
Section 7(e) hereof, that such action shall apply uniformly to all outstanding Rights and (y) may suspend the exercisability of the Rights until the expiration of the Substitution Period in order to seek any authorization of additional
shares, register or qualify issuable securities to the extent appropriate and/or to decide the appropriate form of distribution to be made pursuant to such second sentence and to determine the value thereof. If any such suspension occurs, the
Company shall issue a public announcement stating that the exercisability of the Rights has been temporarily suspended, as well as a public announcement at the time such suspension is no longer in effect. 
 For purposes of this Section 11(a)(iii), the value of a Unit of Series A Preferred or Series B Preferred or share of
Company Common Stock shall be the current market price (as determined pursuant to Section 11(d) hereof) per Unit of Series A Preferred or Series B Preferred, as applicable, or share of Company Common Stock, as the case may be, on the
Section 11(a)(iii) Trigger Date and the value of any common stock equivalent shall be deemed to have the same value as a Unit of Preferred Stock on such date. 
 (b) In case the Company shall fix a record date for the issuance of rights, options or warrants to all holders of Series A Preferred or Series B Preferred entitling them to subscribe for or purchase (for
a period expiring within forty-five calendar days after, but not including, such record date) shares of Series A Preferred or Series B Preferred, as applicable (or shares having substantially the same rights, privileges and preferences as shares of
Series A Preferred or Series B Preferred, as applicable (“Equivalent Preferred Stock”)) or securities convertible into Series A Preferred or Series B Preferred, as applicable, or Equivalent Preferred Stock at a price per share of
Series A Preferred or Series B Preferred, as applicable, or per share of Equivalent Preferred Stock (or having a conversion price per share, if a security convertible into Series A Preferred or Series B Preferred, as applicable, or Equivalent
Preferred Stock) less than the current market price (as determined pursuant to Section l1(d) hereof) per share of Series A Preferred or Series B Preferred, as applicable, on such record date, the Purchase Price to be in effect after such record
date shall be determined by multiplying: 
 (i) the Purchase Price in effect immediately prior to such record
date, by 
 (ii) a fraction, (A) the numerator of which shall be the sum of the number of shares of Series A
Preferred or Series B Preferred, as applicable, outstanding on such record date, plus the number of shares of Series A Preferred or Series B Preferred, as applicable, which the aggregate offering price of the total number of shares of Series A
Preferred or Series B Preferred, as applicable, and/or Equivalent Preferred Stock so to be offered (and/or the aggregate initial conversion price of the convertible securities so to be offered) would purchase at such current market price, and
(B) the denominator of which shall be the number of shares of Series A Preferred or Series B Preferred, as applicable, outstanding on such record date, plus the number of additional shares of Series A Preferred or Series B Preferred, as
applicable, and/or Equivalent Preferred Stock to be offered for subscription or purchase (or into which the convertible securities so to be offered are initially convertible). 
  

 16 

 In case such subscription price may be paid by delivery of consideration, part or all of which may be in a
form other than cash, the value of such consideration shall be as determined by the Board of Directors, whose determination shall be described in a written statement filed with the Rights Agent and shall be conclusive for all purposes. Shares of
Preferred Stock owned by or held for the account of the Company or any Subsidiary shall not be deemed outstanding for the purpose of any such computation. Such adjustment shall be made successively whenever such a record date is fixed, and in the
event that such rights, options or warrants are not so issued, the Purchase Price shall be adjusted to be the Purchase Price which would then be in effect if such record date had not been fixed. 
 (c) In case the Company shall fix a record date for a distribution to all holders of shares of Series A Preferred or Series B Preferred
(including any such distribution made in connection with a consolidation or merger in which the Company is the continuing or surviving corporation) of evidences of indebtedness, cash (other than a regular periodic cash dividend paid out of funds
legally available therefore), assets (other than a dividend payable in shares of Series A Preferred or Series B Preferred, as applicable, but including any dividend payable in stock other than Series A Preferred or Series B Preferred, as applicable)
or subscription rights, options or warrants (excluding those referred to in Section 11(b) hereof), the Purchase Price to be in effect after such record date shall be determined by multiplying: 
 (i) the Purchase Price in effect immediately prior to such record date, by 
 (ii) a fraction, (A) the numerator of which shall be the current market price (as determined pursuant to
Section 11(d) hereof) per share of Series A Preferred or Series B Preferred, as applicable, on such record date, less the fair market value (as determined by the Board of Directors, whose determination shall be described in a written statement
filed with the Rights Agent and shall be conclusive for all purposes) of the cash, assets or evidences of indebtedness so to be distributed or of such subscription rights, options or warrants distributable in respect of a share of Series A Preferred
or Series B Preferred, as applicable, and (B) the denominator of which shall be such current market price per share of Series A Preferred or Series B Preferred, as applicable. 
 Such adjustments shall be made successively whenever such a record date is fixed, and in the event that such distribution is not so made, the Purchase Price shall be adjusted to be the Purchase Price
which would have been in effect if such record date had not been fixed. 
 (d)(i) Except as otherwise provided
herein, for the purpose of any computation hereunder, the “current market price” per share of any security on any date shall be deemed to be the average of the daily closing prices per share of such security for the thirty
consecutive Trading Days immediately prior to, but not including, such date; provided, however, if prior to, but not including, the expiration of such requisite thirty Trading Day period the issuer announces either (A) a dividend
or distribution on such shares payable in such shares or securities convertible into such shares (other than the Rights), or (B) any subdivision, combination or reclassification of such shares, and the ex-dividend date for such dividend or
distribution or the record date for such subdivision, combination or reclassification, as the case may be, shall not have occurred prior to, but not including, the commencement of the requisite thirty Trading Day period, then, and in each such case,
the “current market price” shall be properly adjusted to take into account such event. The closing price for each day shall be: 
 (x) the last sale price, regular way, or, in the case no such sale takes place on such day, the average of the closing bid and asked prices, regular way, in either case as reported in the principal
consolidated transaction reporting system with respect to securities listed on the principal national securities exchange on which such shares are listed or admitted to trading, or 
 (y) if such shares are not listed or admitted to trading on any national securities exchange, the last quoted price or, if
not so quoted, the average of the high bid and low asked prices in the over-the-counter market, as reported by the National Association of Securities Dealers, Inc. Automated Quotation System or such other system then in use, or 
  

 17 

 (z) if on any such date such shares are not quoted by any such organization,
the average of the closing bid and asked prices as furnished by a professional market maker making a market in such shares selected by the Board of Directors. 
 If on any such date no market maker is making a market in such shares, or if such shares are not publicly held or so listed or traded, “current market price” per share shall mean the fair
value per share as determined by the Board of Directors, whose determination shall be described in a written statement filed with the Rights Agent and shall be conclusive for all purposes. The term “Trading Day” shall mean, if such
shares are listed or admitted to trading on any national securities exchange, a day on which the principal national securities exchange on which such shares are listed or admitted to trading is open for the transaction of business or, if such shares
are not so listed or admitted, a Business Day. 
 (ii) For the purpose of any computation hereunder, the
“current market price” per share of any series of Preferred Stock shall be determined in the same manner as set forth in clause (i) of this Section 11(d) (other than the penultimate sentence thereof). If the current market
price per share of such series of Preferred Stock cannot be determined in the manner provided above or if such series of Preferred Stock is not publicly held or listed or traded in a manner described in clause (i) of this Section 11(d),
the “current market price” per share of such series of Preferred Stock shall be conclusively deemed to be an amount equal to (A) 1,000 (as such amount may be appropriately adjusted for such events as stock splits, stock
dividends and recapitalizations with respect to Company Common Stock occurring after the date of this Plan) multiplied by (B) the current market price per share of Class A Common Stock. If neither the Class A Common Stock nor such
series of Preferred Stock is publicly held or so listed or traded, “current market price” per share of such series of Preferred Stock shall mean the fair value per share as determined by the Board of Directors, whose determination
shall be described in a written statement filed with the Rights Agent and shall be conclusive for all purposes. For all purposes of this Plan, the “current market price” of a Unit of Series A Preferred or Series B Preferred shall be
equal to (A) the current market price of one share of such series of Preferred Stock, divided by (B) 1,000. 
 (e)
Anything herein to the contrary notwithstanding, no adjustment in the Purchase Price shall be required unless such adjustment would require an increase or decrease of at least 1% in the Purchase Price; provided, however, that any
adjustments which by reason of this Section 11(e) are not required to be made shall be carried forward and taken into account in any subsequent adjustment. All calculations under this Section 11 shall be made to the nearest cent or to the
nearest one one-thousandth of a share of Company Common Stock or other share or one one-millionth of a share of Preferred Stock, as the case may be. Notwithstanding the first sentence of this Section 11(e), any adjustment required by this
Section 11 shall be made no later than the earlier of (i) three years from the date of the transaction which mandates such adjustment and (ii) the Expiration Date. 
 (f) If, as a result of an adjustment made pursuant to Section 11(a)(ii) hereof, the holder of any Right thereafter exercised shall
become entitled to receive any shares of capital stock other than the applicable series of Preferred Stock, thereafter the number of such other shares so receivable upon exercise of any Right and the applicable Purchase Price thereof 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 the applicable series of Preferred Stock contained in Sections 11(a), (b), (c), (d), (e), (g), (h), (i), (j),
(k), (l) and (m), and the provisions of Sections 7, 9, 10 and 14 hereof with respect to the applicable series of Preferred Stock shall apply on like terms to any such other shares. 
 (g) All Rights originally issued by the Company subsequent to any adjustment made to the applicable Purchase Price hereunder shall evidence
the right to purchase, at the adjusted applicable Purchase Price, the number of Units of the applicable series of Preferred Stock (or other securities or amount of cash or combination thereof) that may be acquired from time to time hereunder upon
exercise of the Rights, all subject to further adjustment as provided herein. 
 (h) Unless the Company shall have exercised its
election as provided in Section 11(i), upon each adjustment of the applicable Purchase Price as a result of the calculations made in Sections 11(b) and (c), each Right outstanding immediately prior to the making of such adjustment shall
thereafter evidence the right to purchase, at the adjusted applicable Purchase Price, that number of Units of the applicable series of Preferred Stock (calculated to the nearest one ten-thousandth of a Unit) obtained by (i) multiplying
(x) the number of Units of the

  

 18 

 
applicable series of Preferred Stock covered by a Right immediately prior to this adjustment by (y) the applicable Purchase Price in effect immediately prior to such adjustment of such
Purchase Price and (ii) dividing the product so obtained by the applicable Purchase Price in effect immediately after such adjustment of such Purchase Price. 
 (i) The Company may elect, on or after the date of any adjustment of the applicable Purchase Price, to adjust the number of Rights, in lieu of any adjustment in the number of Units of the applicable
series of Preferred Stock that may be acquired upon the exercise of a Right. Each of the Rights outstanding after the adjustment in the number of Rights shall be exercisable for the number of Units of the applicable series of Preferred Stock for
which a Right was exercisable immediately prior to such adjustment. Each Right held of record prior to such adjustment of the number of Rights shall become that number of Rights (calculated to the nearest one ten-thousandth) obtained by dividing
(x) the applicable Purchase Price in effect immediately prior to adjustment of such Purchase Price by (y) the applicable Purchase Price in effect immediately after adjustment of such Purchase Price. The Company shall make a public
announcement (with prompt written notice thereof to the Rights Agent) of its election to adjust the number of Rights, indicating the record date for the adjustment, and, if known at the time, the amount of the adjustment to be made. This record date
may be the date on which the Purchase Price is adjusted or any day thereafter, but, if the Rights Certificates have been issued, shall be at least ten days later than, but not including, the date of such public announcement. If Rights Certificates
have been issued, upon each adjustment of the number of Rights pursuant to this Section 11(i), the Company shall, as promptly as practicable, cause to be distributed to holders of record of Rights Certificates on such record date Rights
Certificates evidencing, subject to Section 14 hereof, the additional Rights to which such holders shall be entitled as a result of such adjustment, or, at the option of the Company, shall cause to be distributed to such holders of record in
substitution and replacement for the Rights Certificates held by such holders prior to the date of adjustment, and upon surrender thereof, if required by the Company, new Rights Certificates evidencing all the Rights to which such holders shall be
entitled after such adjustment. Rights Certificates to be so distributed shall be issued, executed and delivered by the Company, and countersigned and delivered by the Rights Agent in the manner provided for herein (and may bear, at the option of
the Company, the adjusted applicable Purchase Price) and shall be registered in the names of the holders of record of Rights Certificates on the record date specified in the public announcement. 
 (j) Irrespective of any adjustment or change in the applicable Purchase Price or the number of Units of the applicable series of Preferred
Stock issuable upon the exercise of any of the Rights, the Rights Certificates theretofore and thereafter issued may continue to express the applicable Purchase Price per Unit and the number of Units of the applicable series of Preferred Stock which
were expressed in the initial Rights Certificates issued hereunder. 
 (k) Before taking any action that would cause an
adjustment reducing the applicable Purchase Price below the par or stated value, if any, of the number of Units of the applicable series of Preferred Stock or other shares of capital stock issuable upon exercise of any of the Rights, the Company
shall take any corporate action which may, in the opinion of its counsel, be necessary in order that the Company may validly and legally issue such fully paid and nonassessable number of Units of the applicable series of Preferred Stock or other
shares at such adjusted Purchase Price. 
 (l) In any case in which this Section 11 shall require that an adjustment in the
Purchase Price be made effective as of a record date for a specified event, the Company may elect to defer (with prompt written notice thereof to the Rights Agent) until the occurrence of such event the issuance to the holder of any Right exercised
after such record date of that number of Units of Preferred Stock and shares of other capital stock or securities of the Company, if any, issuable upon such exercise over and above the number of Units of Preferred Stock and shares of other capital
stock or securities of the Company, if any, issuable upon such exercise on the basis of the Purchase Price in effect prior to such 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 (fractional or otherwise) or securities upon the occurrence of the event requiring such adjustment. 
 (m) Anything in this Section 11 to the contrary notwithstanding, the Company shall be entitled to make such reductions in the Purchase
Price, in addition to those adjustments expressly required by this Section 11, as and to the extent that the Board of Directors shall determine to be advisable in order that any (i) consolidation or subdivision of any series of Preferred
Stock, (ii) issuance wholly for cash of any shares of any series of Preferred Stock at less than the current market price, (iii) issuance wholly for cash of shares of any series of

  

 19 

 
Preferred Stock or securities which by their terms are convertible into or exchangeable for shares of Preferred Stock, (iv) stock dividends or (v) issuance of rights, options or
warrants referred to in this Section 11, hereafter made by the Company to holders of any series of Preferred Stock, shall not be taxable to such holders or shall reduce the taxes payable by such holders. 
 (n) After the Distribution Date, the Company shall not, except as permitted by Section 1, Section 23, Section 24,
Section 27 or Section 31 hereof, take (or permit any Subsidiary to take) any action if at the time such action is taken it is reasonably foreseeable that such action will diminish substantially or otherwise eliminate the benefits intended
to be afforded by the Rights. 
 (o) Anything in this Plan to the contrary notwithstanding, in the event that the Company shall
at any time after the Rights Dividend Declaration Date and prior to the Distribution Date (i) declare a dividend on the outstanding shares of any class of Company Common Stock payable in shares of Company Common Stock, (ii) subdivide the
outstanding shares of any class of Company Common Stock or (iii) combine the outstanding shares of any class of Company Common Stock into a smaller number of shares, the number of Rights associated with each share of such class of Company
Common Stock then outstanding, or issued or delivered thereafter prior to the Distribution Date or in accordance with Section 22 hereof, shall be proportionately adjusted so that the number of Rights thereafter associated with each share of the
applicable class of Company Common Stock following any such event shall equal the result obtained by: 
 (x) in
the case of the Class A Rights, multiplying the number of Class A Rights associated with each share of Class A Common Stock immediately prior to such event by a fraction, the numerator of which shall be the total number of shares of
Class A Common Stock outstanding immediately prior to the occurrence of the event and the denominator of which shall be the total number of shares of Class A Common Stock outstanding immediately following the occurrence of such event; and

 (y) in the case of the Class B Rights, multiplying the number of Class B Rights associated with each share of
Class B Common Stock immediately prior to such event by a fraction, the numerator of which shall be the total number of shares of Class B Common Stock outstanding immediately prior to the occurrence of the event and the denominator of which shall be
the total number of shares of Class B Common Stock outstanding immediately following the occurrence of such event. 
 Section 12. Certificate of Adjusted Purchase Price or Number of Shares. Whenever an adjustment is made or any event affecting any of the Rights or their exercisability (including without limitation an event which causes Rights
to become null and void) occurs as provided in Section 11 hereof, the Company shall (a) promptly prepare a certificate setting forth such adjustment and a brief statement of the facts accounting for such adjustment, (b) promptly file
with the Rights Agent and with each transfer agent for the applicable series of Preferred Stock and the applicable class or classes of Company Common Stock, a copy of such certificate, and (c) mail, or make available, a brief summary thereof to
each holder of the affected class or classes of Rights Certificate in accordance with Section 25 and Section 26 hereof. Notwithstanding the foregoing sentence, the failure of the Company to make such certification or give such notice shall
not affect the validity of such adjustment or the force or effect of the requirement for such adjustment. The Rights Agent shall be fully protected in relying on any such certificate and on any adjustment or statement therein contained and shall
have no duty or liability with respect to, and shall not be deemed to have knowledge of, any adjustment or any such event unless and until it shall have received such a certificate. 
 Section 13. Reserved. 
 Section 14. Fractional Rights and Fractional Shares. 
 (a) The Company
shall not be required to issue fractions of Rights, except prior to the Distribution Date as provided in Section 11(o) hereof, or to distribute Rights Certificates which evidence fractional Rights. In lieu of issuing such fractional Rights,
there shall be paid to the Persons to which such fractional Rights would otherwise be issuable an amount in cash equal to such fraction of the market value of a whole Right. For

  

 20 

 
purposes of this Section 14(a), the market value of a whole Right shall be the closing price of the Rights for the Trading Day immediately prior to the date on which such fractional Rights
would have been otherwise issuable. The closing price of the Rights for any day shall be: 
 (x) the last sale
price, regular way, or, in the case no such sale takes place on such day, the average of the closing bid and asked prices, regular way, in either case as reported in the principal consolidated transaction reporting system with respect to securities
listed on the principal national securities exchange on which the Rights are listed or admitted to trading, or 
 (y) if the Rights are not listed or admitted to trading on any national securities exchange, the last quoted price or, if not so quoted, the average of the high bid and low asked prices in the over-the-counter market, as reported by the
National Association of Securities Dealers, Inc. Automated Quotation System or such other system then in use, or 
 (z) if on any such date the Rights are not quoted by any such organization, the average of the closing bid and asked prices as furnished by a professional market maker making a market in the Rights selected by the Board of Directors.

 If on any such date no such market maker is making a market in the Rights, the fair value of the Rights on such date as determined by the
Board of Directors shall be used and such determination shall be described in a written statement filed with the Rights Agent and shall be conclusive for all purposes. 
 (b) The Company shall not be required to issue fractions of shares of Preferred Stock (other than fractions which are integral multiples of one one-thousandth of a share of Preferred Stock) upon exercise
of the Rights or to distribute certificates which evidence such fractional shares of Preferred Stock (other than fractions which are integral multiples of one one-thousandth of a share of Preferred Stock); provided, however, that in
lieu of fractions of shares of Preferred Stock which are integral multiples of one one-thousandth of a share of Preferred Stock, the Company may provide for the issuance of depositary receipts pursuant to Section 7(c) hereof. In lieu of such
fractional shares of Preferred Stock that are not integral multiples of one one-thousandth of a share, the Company may pay to the registered holders of Rights Certificates at the time such Rights are exercised as herein provided an amount in cash
equal to the same fraction of the then current market price of a share of Series A Preferred or Series B Preferred, as applicable, on the day of exercise, determined in accordance with Section 11(d) hereof. 
 (c) The Company shall not be required to issue fractions of shares of Company Common Stock upon exercise of the Rights or to distribute
certificates which evidence fractional shares of Company Common Stock. In lieu of such fractional shares of Company Common Stock, the Company may pay to the registered holders of Rights Certificates at the time such Rights are exercised as herein
provided an amount in cash equal to the same fraction of the current market value of one (1) share of the applicable class of Company Common Stock. For purposes of this Section 14(c), the current market value of one share of Company
Common Stock shall be the closing price per share of Company Common Stock (as determined pursuant to Section 11(d)(i) hereof) on the Trading Day immediately prior to the date of such exercise. 
 (d) The holder of a Right by the acceptance of the Rights expressly waives his right to receive any fractional Rights or any fractional
shares upon exercise of a Right, except as permitted by this Section 14. 
 (e) Whenever a payment for fractional Rights or
fractional shares is to be made by the Rights Agent, the Company shall (i) promptly prepare and deliver to the Rights Agent a certificate setting forth in reasonable detail the facts related to such payments and the prices and/or formulas
utilized in calculating such payments, and (ii) provide sufficient monies to the Rights Agent in the form of fully collected funds to make such payments. The Rights Agent shall be fully protected in relying upon such a certificate and shall
have no duty with respect to, and shall not be deemed to have knowledge of any payment for fractional Rights or fractional shares under any Section of this Plan relating to the payment of fractional Rights or fractional shares unless and until the
Rights Agent shall have received such a certificate and sufficient monies. 
  

 21 

 Section 15. Rights of Action. All rights of action in respect of this Plan,
other than rights of action vested in the Rights Agent pursuant to Section 18 and Section 20 hereof, are vested in the respective registered holders of the Rights Certificates (and, prior to the Distribution Date, the registered holders of
shares of Company Common Stock); and any registered holder of a Rights Certificate (or, prior to the Distribution Date, of shares of Company Common Stock), without the consent of the Rights Agent or of the holder of any other Rights Certificate (or,
prior to the Distribution Date, of shares of Company Common Stock), may, on his own behalf and for his own benefit, enforce, and may institute and maintain any suit, action or proceeding against the Company or any other Person to enforce, or
otherwise act in respect of, his right to exercise the Rights evidenced by such Rights Certificate in the manner provided in such Rights Certificate and in this Plan. Without limiting the foregoing or any remedies available to the holders of Rights,
it is specifically acknowledged that the holders of Rights would not have an adequate remedy at law for any breach of this Plan and shall be entitled to specific performance of the obligations hereunder and injunctive relief against actual or
threatened violations of the obligations hereunder of any Person subject to this Plan. 
 Section 16. Agreement of
Rights Holders. Every holder of a Right, by accepting the same, consents and agrees with the Company and the Rights Agent and with every other holder of a Right that: 
 (a) prior to the Distribution Date, the Rights will be transferable only in connection with the transfer of Company Common Stock; 
 (b) after the Distribution Date, the Rights Certificates are transferable only on the registry books of the Rights Agent if surrendered at
the office of the Rights Agent designated for such purposes, duly endorsed or accompanied by a proper instrument of transfer and with the appropriate forms and certificates properly completed and duly executed; 
 (c) subject to Section 6(a) and Section 7(f) hereof, the Company and the Rights Agent may deem and treat the Person in whose name
a Rights Certificate (or, prior to the Distribution Date, the associated Company Common Stock) is registered as the absolute owner thereof and of the Rights evidenced thereby (notwithstanding any notations of ownership or writing on the Rights
Certificates or any associated Company Common Stock certificate made by any Person other than the Company or the Rights Agent) for all purposes whatsoever, and neither the Company nor the Rights Agent shall be affected by any notice to the contrary;
and 
 (d) notwithstanding anything in this Plan to the contrary, neither the Company nor the Rights Agent shall have any
liability to any holder of a Right or any other Person as a result of its inability to perform any of its obligations under this Plan by reason of any preliminary or permanent injunction or other order, decree, judgment or ruling (whether
interlocutory or final) issued by a court of competent jurisdiction or by a governmental, regulatory, self-regulatory or administrative agency or commission, or any statute, rule, regulation or executive order promulgated or enacted by any
governmental authority, prohibiting or otherwise restraining performance of such obligation; provided, however, the Company must use its best efforts to have any such order, decree, judgment or ruling lifted or otherwise overturned as
promptly as practicable. 
 Section 17. Rights Certificate Holder Not Deemed a Stockholder. No holder, as such, of
any Rights Certificate shall be entitled to vote, receive dividends or be deemed for any purpose the holder of the number of shares of Preferred Stock or any other securities of the Company which may at any time be issuable on the exercise of the
Rights represented thereby, nor shall anything contained herein or in any Rights Certificate be construed to confer upon the holder of any Rights Certificate, as such, any of the rights of a stockholder of the Company or any right to vote for the
election of directors or upon any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any corporate action, or, except as provided in Section 25 hereof, to receive notice of meetings or other actions
affecting stockholders, or to receive dividends or subscription rights, or otherwise, until the Right or Rights evidenced by such Rights Certificate shall have been exercised in accordance with the provisions hereof. This Section 17 shall also
apply to holders, as such, of Rights prior to the issuance of Rights Certificates. 
  

 22 

 Section 18. Concerning the Rights Agent. 
 (a) The Company agrees to pay to the Rights Agent reasonable compensation for all services rendered by it hereunder and, from time to time,
on demand of the Rights Agent, its reasonable out-of-pocket expenses, including reasonable fees and disbursements of its counsel, and other disbursements, incurred in connection with the preparation, negotiation, delivery, amendment, execution and
administration of this Plan and the exercise and performance of its duties hereunder. The Company shall also indemnify the Rights Agent for, and hold it harmless against, any loss, liability, damage, judgment, fine, penalty, claim, demand,
settlement, cost or expense (including, without limitation, the reasonable fees and expenses of legal counsel), incurred without gross negligence, bad faith or willful misconduct on the part of the Rights Agent (each as determined by a final,
non-appealable judgment of a court of competent jurisdiction), for any action taken, suffered or omitted to be taken by the Rights Agent in connection with the acceptance and administration of this Plan or the exercise or performance of its duties
hereunder, including without limitation, the reasonable costs and expenses of defending against a claim of liability hereunder. The costs and expenses incurred in enforcing this right of indemnification shall be paid by the Company. The provisions
of this Section 18 and Section 20 below shall survive the termination of this Plan, the exercise or expiration of the Rights and the resignation, replacement or removal of the Rights Agent hereunder, including, without limitation, the
reasonable costs and expenses of defending against a claim of liability hereunder. 
 (b) The Rights Agent shall be authorized
and protected and shall incur no liability for or in respect of any action taken, suffered or omitted to be taken by it in connection with its acceptance and administration of this Plan and the exercise and performance of its duties hereunder, in
reliance upon any Rights Certificate or certificate for Preferred Stock or for other securities of the Company, instrument of assignment or transfer, power of attorney, endorsement, affidavit, letter, notice, direction, consent, certificate,
statement or other paper or document believed by it to be genuine and to have been signed, executed and, where necessary, verified or acknowledged by the proper Person or Persons, or otherwise upon the advice of counsel as set forth in
Section 20 hereof. The Rights Agent shall not be deemed to have knowledge of any event of which it was supposed to receive notice thereof hereunder, and the Rights Agent shall be fully protected and shall incur no liability for failing to take
any action in connection therewith unless and until it has received such notice. 
 Section 19. Merger or Consolidation
or Change of Name of Rights Agent. 
 (a) Any Person into which the Rights Agent or any successor Rights Agent may be merged
or with which it may be consolidated, or any Person resulting from any merger or consolidation to which the Rights Agent or any successor Rights Agent shall be a party, or any Person succeeding to the corporate trust or stockholder services
businesses of the Rights Agent or any successor Rights Agent, shall be the successor to the Rights Agent under this Plan without the execution or filing of any document or any further act on the part of any of the parties hereto; provided,
however, that such Person would be eligible for appointment as a successor Rights Agent under the provisions of Section 21 hereof. In case at the time such successor Rights Agent shall succeed to the agency created by this Plan, any of
the Rights Certificates shall have been countersigned but not delivered, any such successor Rights Agent may adopt the countersignature of a predecessor Rights Agent and deliver such Rights Certificates so countersigned; and in case at that time any
of the Rights Certificates shall not have been countersigned, any successor Rights Agent may countersign such Rights Certificates either in the name of the predecessor Rights Agent or in the name of the successor Rights Agent; and in all such cases
such Rights Certificates shall have the full force provided in the Rights Certificates and in this Plan. 
 (b) In case at any
time the name of the Rights Agent shall be changed and at such time any of the Rights Certificates shall have been countersigned but not delivered, the Rights Agent may adopt the countersignature under its prior name and deliver Rights Certificates
so countersigned; and in case at that time any of the Rights Certificates shall not have been countersigned, the Rights Agent may countersign such Rights Certificates either in its prior name or in its changed name; and in all such cases such Rights
Certificates shall have the full force provided in the Rights Certificates and in this Plan. 
 Section 20. Duties of
Rights Agent. The Rights Agent undertakes to perform only the duties and obligations expressly imposed by this Plan (and no implied duties) upon the following terms and conditions, by all of which the Company and the holders of Rights
Certificates, by their acceptance thereof, shall be bound: 
 (a) The Rights Agent may consult with legal counsel (who may be
legal counsel for the Company or an employee of the Rights Agent), and the advice or opinion of such counsel shall be full and complete authorization and protection to the Rights Agent and the Rights Agent shall incur no liability for or in respect
of any action taken, suffered or omitted to be taken by it in accordance with such advice or opinion. 
  

 23 

 (b) Whenever in the performance of its duties under this Plan the Rights Agent shall deem it
necessary or desirable that any fact or matter (including, without limitation, the identity of any Acquiring Person and the determination of the current per share market price of any security) be proved or established by the Company prior to taking,
suffering or omitting to take any action hereunder, such fact or matter (unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be conclusively proved and established by a certificate signed by any one of the
Chief Executive Officer, any Vice President, the Treasurer, any Assistant Treasurer, the Secretary or any Assistant Secretary of the Company and delivered to the Rights Agent; and such certificate shall be full and complete authorization and
protection to the Rights Agent and the Rights Agent shall incur no liability for or in respect of any action taken, suffered or omitted to be taken by it under the provisions of this Plan in reliance upon such certificate. 
 (c) The Rights Agent shall be liable hereunder to the Company and any other Person only for its own gross negligence, bad faith or willful
misconduct (each as determined by a final, non-appealable judgment of a court of competent jurisdiction). Anything to the contrary notwithstanding, in no event shall the Rights Agent be liable for special, punitive, indirect, consequential or
incidental loss or damage of any kind whatsoever (including but not limited to lost profits), even if the Rights Agent has been advised of the likelihood of such loss or damage. Any liability of the Rights Agent under this Plan will be limited to
the amount of annual fees paid by the Company to the Rights Agent. 
 (d) The Rights Agent shall not be liable for or by reason
of any of the statements of fact or recitals contained in this Plan or in the Rights Certificates or be required to verify the same (except as to its countersignature on such Rights Certificates), but all such statements and recitals are and shall
be deemed to have been made by the Company only. 
 (e) The Rights Agent shall not have any liability for or be under any
responsibility in respect of the validity of this Plan or the execution and delivery hereof (except the due execution hereof by the Rights Agent) or in respect of the validity or execution of any Rights Certificate (except its countersignature
thereof); nor shall it be responsible for any breach by the Company of any covenant or failure by the Company to satisfy conditions contained in this Plan or in any Rights Certificate; nor shall it be responsible for any change in the exercisability
of the Rights (including the Rights becoming null and void pursuant to Section 11(a)(ii) hereof) or any change or adjustment in the terms of the Rights (including the manner, method or amount thereof) provided for in Section 3, 11, 23 or
24 hereof, or the ascertaining of the existence of facts that would require any such change or adjustment (except with respect to the exercise of Rights evidenced by Rights Certificates after receipt of the certificate described in Section 12
hereof, upon which the Rights Agent may rely); nor shall it by any act hereunder be deemed to make any representation or warranty as to the authorization or reservation of any shares of Preferred Stock or any other securities to be issued pursuant
to this Plan or any Rights Certificate or as to whether any shares of Preferred Stock or any other securities will, when so issued, be validly authorized and issued, fully paid and nonassessable. 
 (f) The Company shall perform, execute, acknowledge and deliver or cause to be performed, executed, acknowledged and delivered all such
further acts, instruments and assurances as may reasonably be required by the Rights Agent for the performance by the Rights Agent of its duties under this Plan. 
 (g) The Rights Agent is hereby authorized and directed to accept instructions with respect to the performance of its duties hereunder from any one of the Chief Executive Officer, the Chief Financial
Officer, any Vice President or the Secretary of the Company, and to apply to such officers for advice or instructions in connection with its duties, and such instructions shall be full authorization and protection to the Rights Agent and the Rights
Agent shall not be liable for or in respect of any action taken, suffered or omitted to be taken by it in accordance with instructions of any such officer or for any delay in acting while waiting for those instructions. The Rights Agent shall be
fully authorized and protected in relying upon the most recent instructions received by any such officer. Any application by the Rights Agent for written instructions from the Company may, at the option of the Rights Agent, set forth in writing any
action proposed to be taken, suffered or omitted by the Rights Agent under this Plan and the date on and/or after which such action shall be taken or suffered or such omission shall be effective. The Rights Agent shall not be liable for any action
taken or suffered by, or omission of, the Rights Agent in accordance with a proposal included in any such application on or after the date specified in such application (which date shall not be less than five Business Days after, but not including,
the date any officer of the Company

  

 24 

 
actually receives such application, unless any such officer shall have consented in writing to an earlier date) unless, prior to taking any such action (or the effective date in the case of an
omission), the Rights Agent shall have received written instructions in response to such application specifying the action to be taken, suffered or omitted. 
 (h) The Rights Agent and any stockholder, affiliate, director, officer or employee of the Rights Agent may buy, sell or deal in any of the Rights or other securities of the Company or have a pecuniary
interest in any transaction in which the Company may be interested, or contract with or lend money to the Company or otherwise act as fully and freely as though it were not Rights Agent under this Plan. Nothing herein shall preclude the Rights Agent
or any such stockholder, affiliate, director, officer or employee from acting in any other capacity for the Company or for any other Person. 
 (i) The Rights Agent may execute and exercise any of the rights or powers hereby vested in it or perform any duty hereunder either itself (through its directors, officers and employees) or by or through
its attorneys or agents, and the Rights Agent shall not be answerable or accountable for any act, default, neglect or misconduct of any such attorneys or agents or for any loss to the Company or any other Person resulting from any such act, default,
neglect or misconduct, absent gross negligence or bad faith in the selection and continued employment thereof (which gross negligence or bad faith must be determined by a final, non-appealable order, judgment, decree or ruling of a court of
competent jurisdiction). 
 (j) No provision of this Plan shall require the Rights Agent to expend or risk its own funds or
otherwise incur any financial liability in the performance of any of its duties or in the exercise of its rights hereunder if the Rights Agent believes that repayment of such funds or adequate indemnification against such risk or liability is not
reasonably assured to it. 
 (k) If, with respect to any Rights Certificate surrendered to the Rights Agent for exercise or
transfer, the certificate attached to the form of assignment or form of election to purchase, as the case may be, has either not been properly completed, not signed or indicates an affirmative response to clause 1 and/or 2 thereof, the Rights
Agent shall not take any further action with respect to such requested exercise or transfer without first consulting with the Company. 
 Section 21. Change of Rights Agent. The Rights Agent or any successor Rights Agent may resign and be discharged from its duties under this Plan upon thirty days’ prior notice in writing mailed to the Company and to each
transfer agent for the Company Common Stock or Preferred Stock known to the Rights Agent, by registered or certified mail, and, if such resignation occurs after the Distribution Date, to the holders of the Rights Certificates by first-class mail.
The Company may remove the Rights Agent or any successor Rights Agent upon thirty days’ prior notice in writing, mailed to the Rights Agent or successor Rights Agent, as the case may be, and to each transfer agent for the Company Common Stock
or Preferred Stock, by registered or certified mail, and, if such removal occurs after the Distribution Date, to the holders of the Rights Certificates by first-class mail. If the Rights Agent shall resign or be removed or shall otherwise become
incapable of acting, the Company shall appoint a successor to the Rights Agent. If the Company shall fail to make such appointment within a period of thirty days after giving notice of such removal or after it has been notified in writing of such
resignation or incapacity by the resigning or incapacitated Rights Agent or by the holder of a Rights Certificate (who shall, with such notice, submit his Rights Certificate for inspection by the Company), then any registered holder of any Rights
Certificate may apply to any court of competent jurisdiction for the appointment of a new Rights Agent. Any successor Rights Agent, whether appointed by the Company or by such a court, shall be (a) a Person organized and doing business under
the laws of the United States or any state of the United States in good standing, shall be authorized under applicable laws to exercise corporate trust or stock transfer or stockholder service powers and shall be subject to supervision or
examination by federal or state authorities and which has at the time of its appointment as Rights Agent a combined capital and surplus of at least $50,000,000 or (b) an Affiliate of such a Person described in clause (a). After
appointment, the successor Rights Agent shall be vested with the same powers, rights, duties and responsibilities as if it had been originally named as Rights Agent without further act or deed; but the predecessor Rights Agent shall deliver and
transfer to the successor Rights Agent any property at the time held by it hereunder, and execute and deliver any further assurance, conveyance, act or deed necessary for the purpose. Not later than the effective date of any such appointment, the
Company shall file notice thereof in writing with the predecessor Rights Agent and each transfer agent of the Company Common Stock or Preferred Stock, and, if such appointment occurs after the Distribution Date, mail a notice thereof in writing to
the registered holders of the Rights Certificates. Failure to give any notice provided for in this Section 21, however, or any defect therein, shall not affect the legality or validity of the resignation or removal of the Rights Agent or the
appointment of the successor Rights Agent. 
  

 25 

 Section 22. Issuance of New Rights Certificates. Notwithstanding any of the
provisions of this Plan or the Rights to the contrary, the Company may, at its option, issue new Rights Certificates evidencing Rights in such form as may be approved by the Board of Directors to reflect any adjustment or change made in accordance
with the provisions of this Plan in the Purchase Price or the number or kind or class of shares or other securities or property that may be acquired under the Rights Certificates. 
 In addition, in connection with the issuance or sale of shares by the Company of Company Common Stock following the Distribution Date and
prior to the Expiration Date, the Company (a) shall, with respect to shares of Company Common Stock so issued or sold pursuant to the exercise of stock options or under any employee plan or arrangement granted or awarded as of the Distribution
Date, or upon the exercise, conversion or exchange of any other securities hereinafter issued by the Company, and (b) may, in any other case, if deemed necessary or appropriate by the Board of Directors, issue Rights Certificates representing
the appropriate number of the applicable class of Rights in connection with such issuance or sale; provided, however, that (i) no such Rights Certificate shall be issued if, and to the extent that, the Company shall be advised by
counsel that such issuance would create a significant risk of material adverse tax consequences to the Company or the Person to whom such Rights Certificate would be issued, and (ii) no such Rights Certificate shall be issued if, and to the
extent that, appropriate adjustment shall otherwise have been made in lieu of the issuance thereof. 
 Section 23.
Redemption and Termination. 
 (a) Subject to Section 32 hereof, the Company may, at its option, by action of the
Board of Directors, at any time prior to the earlier of (i) the Close of Business on the tenth Business Day following the Stock Acquisition Date (or, if the Stock Acquisition Date shall have occurred prior to the Record Date, the Close of
Business on the tenth Business Day following the Record Date) or (ii) the Final Expiration Date, redeem all but not less than all of the then-outstanding Rights at a redemption price of $0.001 per Right, as such amount may be appropriately
adjusted to reflect any stock split, stock dividend or similar transaction occurring after the date hereof (such redemption price being the “Redemption Price”). The Company may, at its option, by action of the Board of Directors,
pay the Redemption Price either in shares of Company Common Stock (based on the current market price, as defined in Section 11(d) hereof, of the shares of Company Common Stock at the time of redemption) or cash or any other form of
consideration deemed appropriate by the Board of Directors and the redemption of the Rights shall be effective at such time and on the basis and with such conditions as the Board of Directors may in its sole discretion establish. Notwithstanding
anything in this Plan to the contrary, the Rights shall not be exercisable after the first occurrence of a Section 11(a)(ii) Event until such time as the Company’s right of redemption has expired. 
 (b) Immediately upon the action of the Board of Directors ordering the redemption of the Rights as provided in Section 23(a) above (or
at such later time as the Board of Directors may establish for the effectiveness of such redemption), and without any further action and without any notice, the right to exercise the Rights will terminate and the only right thereafter of the holders
of Rights shall be to receive the Redemption Price for each Right so held. The Company shall promptly give notice of such redemption to the Rights Agent and the holders of the then-outstanding Rights by mailing such notice to all such holders at
each holder’s last address as it appears upon the registry books of the Rights Agent or, prior to the Distribution Date, on the registry books of the transfer agent for the Company Common Stock, provided, however, that the failure
to give, or any defect in, any such notice shall not affect the validity of such redemption. Any notice which is mailed in the manner herein provided shall be deemed given, whether or not the holder receives the notice. Each such notice of
redemption will state the method by which the payment of the Redemption Price will be made. 
 (c) The Company may, at its
option, discharge all of its obligations with respect to the Rights by (i) issuing a press release announcing the manner of redemption of the Rights in accordance with this Plan, and (ii) mailing payment of the Redemption Price to the
registered holders of the Rights as their last addresses as they appear on the registry books of the Rights Agent or, prior to the Distribution Date, on the registry books of the transfer agent of the Company Common Stock, and upon such action, all
outstanding Rights and Rights Certificates shall be null and void without any further action by the Company. 
  

 26 

 (d) Neither the Company nor any of its Affiliates or Associates may redeem, acquire or
purchase for value any Rights at any time in any manner, other than that specifically set forth in this Section 23 or in Section 24 hereof and other than in connection with the purchase or repurchase by any of them of Company Common Stock
prior to the Distribution Date. 
 Section 24. Exchange. 
 (a) The Company, upon resolution of the Board of Directors, may, at its option, at any time after the first occurrence of a
Section 11(a)(ii) Event, exchange all or part of the then-outstanding and exercisable Rights (which shall not include Rights that have become null and void pursuant to Section 7(e) hereof) for Units of Preferred Stock or shares of Company
Common Stock at the election of the Board of Directors (such Units of Preferred Stock or shares of Company Common Stock, as applicable, the “Exchange Securities”) at an exchange ratio of one share of Class A Common Stock or one
Unit of Series A Preferred per Class A Right and one share of Class B Common Stock or one Unit of Series B Preferred per Class B Right, in each case as appropriately adjusted to reflect any stock split, stock dividend or similar transaction
occurring after the date hereof (such exchange ratio being the “Exchange Ratio”). The exchange of the Rights by the Board of Directors may be made effective at such time, on such basis and with such conditions as the Board of
Directors in its sole discretion may establish. Prior to effecting an exchange pursuant to this Section 24, the Board of Directors may direct the Company to enter into a Trust Agreement in such form and with such terms as the Board of Directors
shall then approve (the “Trust Agreement”). If the Board of Directors so directs, the Company shall enter into the Trust Agreement and shall issue to the trust created by such agreement (the “Trust”) all of the
Exchange Securities issuable pursuant to the exchange, and all Persons entitled to receive Exchange Securities pursuant to the exchange shall be entitled to receive such Exchange Securities (and any dividends or distributions made thereon after the
date on which such Exchange Securities are deposited in the Trust) only from the Trust and solely upon compliance with the relevant terms and provisions of the Trust Agreement. Any Exchange Securities issued at the direction of the Board of
Directors in connection herewith shall be validly issued, fully paid and nonassessable shares of Company Common Stock or Preferred Stock (as the case may be), and the Company shall be deemed to have received as consideration for such issuance a
benefit having a value that is at least equal to the aggregate par value of the Exchange Securities so issued. 
 (b)
Immediately upon the action of the Board of Directors ordering the exchange of any Rights pursuant to Section 24(a), and without any further action and without any notice, the right to exercise such Rights shall terminate and the only right
thereafter of a holder of such Rights shall be to receive (i) that number of shares of Class A Common Stock or Units of Series A Preferred, as applicable, equal to the number of such Class A Rights held by such holder multiplied by
the Exchange Ratio and (ii) that number of shares of Class B Common Stock or Units of Series B Preferred, as applicable, equal to the number of such Class B Rights held by such holder multiplied by the Exchange Ratio. The Company shall promptly
provide public notice of any such exchange (with prompt written notice thereof to the Rights Agent); provided, however, that the failure to give or any defect in such notice shall not affect the validity of such exchange. The Company
shall promptly mail a notice of any such exchange to all of the holders of such Rights at their last addresses as they appear upon the registry books of the Rights Agent. Any notice which is mailed in the manner herein provided shall be deemed
given, whether or not the holder receives the notice. Each such notice of exchange shall state the method by which the exchange of Exchange Securities for Rights will be effected and, in the event of any partial exchange, the number of Rights which
will be exchanged. Any partial exchange shall be effected pro rata based on the number of Rights (other than Rights which have become null and void pursuant to the provisions of Section 7(e) hereof) held by each holder of Rights. 
 (c) In the event that: (x) the number of Exchange Securities which are authorized by the Certificate of Incorporation but not
outstanding or reserved for issuance for purposes other than upon exercise of the Rights are not sufficient to permit any exchange of Rights as contemplated in accordance with this Section 24 or (y) the securities issuable upon exercise of
the Rights are required to be registered under the Securities Act or registered or qualified under applicable state securities laws or “blue sky” laws, then the Company, at the election of the Board of Directors, shall take all such action
as may be necessary to authorize additional Exchange Securities, register or qualify any securities as the case may be, for issuance upon exchange of the Rights or shall make adequate provision to substitute, in whole or in part, (1) cash,
(2) other comparable equity securities of the Company (including, without limitation, shares, or units of shares, of preferred stock which, having dividend, voting and liquidation rights substantially comparable to those of the Class A
Common Stock or Class B Common Stock, as the case may be, as

  

 27 

 
determined by the Board in its sole discretion), (3) debt securities of the Company, (4) other assets, or (5) any combination of the foregoing, having an aggregate value for each
Right to be exchanged equal to the per share market price of one share of Class A Common Stock or Class B Common Stock or one Unit of Series A Preferred or Series B Preferred, as applicable (determined pursuant to Section 11(d) hereof) as
of the date of a Section 11(a)(ii) Event, where such aggregate value has been determined by the Board of Directors. To the extent that the Company determines that action must be taken pursuant to the foregoing clauses of this
Section 24(c), the Board of Directors may suspend the exercisability of the Rights, in order to seek any authorization of additional Exchange Securities, register or qualify any securities that will be issued on exercise of the Rights as the
case may be, and/or to decide the appropriate form of distribution to be made pursuant to the above provision and to determine the value thereof. 
 (d) The Company shall not be required to issue fractions of Exchange Securities or to distribute certificates which evidence fractional Units or fractional shares. In lieu of issuing fractional Units or
fractional shares, the Company may pay to the registered holders of Rights Certificates at the time such Rights are exchanged as herein provided an amount in cash equal to the same fraction of the current market price (determined pursuant to
Section 11(d) hereof) of one share of Class A Common Stock or Class B Common Stock or one Unit of Series A Preferred or Series B Preferred, as applicable, on the Trading Day immediately prior to the date of exchange pursuant to this
Section 24. 
 Section 25. Notice of Certain Events. 
 (a) In case the Company shall propose, at any time after the Distribution Date: 
 (i) to pay any dividend payable in stock of any class to the holders of Series A Preferred or Series B Preferred or to make
any other distribution to the holders of Series A Preferred or Series B Preferred (other than a regular periodic cash dividend paid out of funds legally available therefore), 
 (ii) to offer to the holders of Series A Preferred or Series B Preferred rights or warrants to subscribe for or to purchase
any additional shares of Preferred Stock or shares of stock of any class or any other securities, rights or options, 
 (iii) to effect any reclassification of its Series A Preferred or Series B Preferred (other than a reclassification involving only the subdivision of outstanding shares of Series A Preferred or Series B Preferred, as applicable),

 (iv) to effect any consolidation or merger into or with any other Person (other than a wholly owned Subsidiary
of the Company in a transaction which complies with Section 11(n) hereof), or to effect any sale or other transfer (or to permit one or more of its Subsidiaries to effect any sale or other transfer), in one or more transactions, of more than
50% of the assets, cash flow or earning power of the Company and its Subsidiaries (taken as a whole) to any other Person or Persons (other than the Company and/or any of its wholly owned Subsidiaries in one or more transactions each of which
complies with Section 11(n) hereof), or 
 (v) to effect the liquidation, dissolution or winding up of the
Company, 
 then, in each such case, the Company shall give to the Rights Agent and to each holder of a Rights Certificate, to the extent
feasible and in accordance with Section 26 hereof, a notice of such proposed action, which shall specify the record date for the purposes of such stock dividend, distribution of rights or warrants, or the date on which such reclassification,
consolidation, merger, sale, transfer, liquidation, dissolution, or winding up is to take place and the date of participation therein by the holders of the shares of Series A Preferred and/or Series B Preferred, if any such date is to be fixed, and
such notice shall be so given in the case of any action covered by clause (i) or (ii) above at least twenty (20) days prior to, but not including, the record date for determining holders of the shares of Series A Preferred and/or
Series B Preferred for purposes of such action, and in the case of any such other action, at least twenty (20) days prior to, but not including, the date of the taking of such proposed action or the date of participation therein by the holders
of the shares of Series A Preferred and/or Series B Preferred, whichever shall be

  

 28 

 
the earlier; provided, however, no such notice shall be required pursuant to this Section 25, if any wholly owned Subsidiary of the Company effects a consolidation or merger
with or into, or effects a sale or other transfer of assets, cash flow or earnings power to, any other wholly owned Subsidiary of the Company. 
 (b) In case any Section 11(a)(ii) Event shall occur, then, in any such case, (i) the Company shall as soon as practicable thereafter give to the Rights Agent and to each holder of a Rights
Certificate, to the extent feasible and in accordance with Section 26 hereof, a notice of the occurrence of such event, which shall specify the event and the consequences of the event to holders of Rights under Section 11(a)(ii) hereof, as
the case may be, and (ii) all references in the preceding paragraph (a) to Series A Preferred and Series B Preferred shall be deemed thereafter to refer also to Company Common Stock and/or, if appropriate, other securities of the Company.

 Section 26. Notices. All notices and other communications provided for hereunder shall, unless otherwise stated
herein, be in writing and mailed or sent or delivered, if to the Company, at its address at: 
 ICO Global Communications
(Holdings) Limited 
 Plaza America Tower I 
 11700 Plaza America Drive, Suite 1010 
 Reston, Virginia 20190 
 Attention: General Counsel 
 and if to the Rights Agent, at its address at: 
 BNY Mellon Shareowner Services 
 480 Washington Blvd. 
 Jersey City, NJ 07310 
 Attention: Relationship Manager 
 With a copy to: 
 BNY Mellon Shareowner Services 
 Newport Office Center VII 
 480 Washington Blvd. 
 Jersey City, NJ 07310 
 Attention: Legal Department 
 Notices or demands authorized by this Plan to be given or made by the Company or the Rights Agent to the holder of any Rights Certificate
(or, if prior to the Distribution Date, to the holder of certificates representing shares of Company Common Stock) shall be sufficiently given or made if sent by first-class mail, postage prepaid, addressed to such holder at the address of such
holder as shown on the registry books of the Company. 
 Section 27. Supplements and Amendments. Prior to the
Distribution Date, and subject to the other provisions of this Section 27, the Company may, in its sole and absolute discretion, and the Rights Agent shall, if the Company so directs, supplement or amend any provision of this Plan in any
respect (including, without limitation, an amendment to cause the Rights to immediately expire and the Plan to immediately terminate) without the approval of any holders of certificates representing Rights or shares of Company Common Stock. From and
after the Distribution Date, the Company may, in its sole and absolute discretion, and the Rights Agent shall, if the Company so directs, supplement or amend this Plan without the approval of any holders of Rights Certificates in order: 

(i) to cure any ambiguity, 
 (ii) to correct or supplement any provision contained herein which may be defective or inconsistent with any other provisions herein, 
 (iii) to shorten or lengthen any time period hereunder, or 
  

 29 

 (iv) to change or supplement the provisions hereunder in any manner which
the Company may deem necessary or desirable and which shall not adversely affect the interests of the holders of Rights Certificates (other than an Acquiring Person or an Affiliate or Associate of an Acquiring Person); 
 provided, however, that this Plan may not be supplemented or amended to lengthen, pursuant to clause (iii) of this sentence,
(A) subject to Section 32 hereof, a time period relating to when the Rights may be redeemed at such time as the Rights are not then redeemable, or (B) any other time period unless such lengthening is for the purpose of protecting,
enhancing or clarifying the rights of, and/or the benefits to, the holders of Rights (other than an Acquiring Person or an Associate or Affiliate of an Acquiring Person). 
 Upon the delivery of a certificate from an appropriate officer of the Company which states that the proposed supplement or amendment is in compliance with the terms of this Section 27, the Rights
Agent shall execute such supplement or amendment. Notwithstanding anything contained in this Plan to the contrary, the Rights Agent may, but shall not be obligated to, enter into any supplement or amendment that affects the Rights Agent’s own
rights, duties, obligations or immunities under this Plan. 
 Prior to the Distribution Date, the interests of the holders of
Rights shall be deemed coincident with the interests of the holders of Company Common Stock. 
 Section 28.
Successors. All the covenants and provisions of this Plan by or for the benefit of the Company or the Rights Agent shall bind and inure to the benefit of their respective successors and assigns hereunder. 
 Section 29. Determinations and Actions by the Board of Directors, etc. For all purposes of this Plan, any calculation of the
number of shares of Company Common Stock or the amount of Company Stock outstanding at any particular time, including for purposes of determining the particular percentage of such outstanding shares of Company Common Stock or amount of Company Stock
of which any Person is the Beneficial Owner, shall be made by the Board of Directors in accordance with the last sentence of Rule 13d-3(d)(1)(i) of the Exchange Act Regulations as in effect on the date hereof or the provisions of
Section 382 of the Code and the regulations thereunder. Except as otherwise specifically provided herein, the Board of Directors shall have the exclusive power and authority to administer this Plan and to exercise all rights and powers
specifically granted to the Board of Directors or to the Company, or as may be necessary or advisable in the administration of this Plan, including, without limitation, the right and power (i) to interpret the provisions of this Plan, and
(ii) to make all determinations deemed necessary or advisable for the administration of this Plan (including, without limitation, a determination whether to redeem or not redeem the rights or to amend this Plan and whether any proposed
amendment adversely affects the interest of the holders of Rights Certificates). All such actions, calculations, interpretations and determinations (including, for purposes of clause (y) below, all omissions with respect to the foregoing) which
are done or made by the Board of Directors shall (x) be final, conclusive and binding on the Company, the Rights Agent, the holders of the Rights and all other parties, and (y) not subject the Board of Directors or any member thereof to
any liability to the holders of the Rights. The Rights Agent is entitled always to assume the Company’s Board of Directors acted in good faith and shall be fully protected and incur no liability in reliance thereon. 
 Section 30. Benefits of this Plan. Nothing in this Plan shall be construed to give to any Person other than the Company, the
Rights Agent and the registered holders of the Rights Certificates (and, prior to the Distribution Date, registered holders of shares of Company Common Stock) any legal or equitable right, remedy or claim under this Plan; but this Plan shall be for
the sole and exclusive benefit of the Company, the Rights Agent and the registered holders of the Rights Certificates (and, prior to the Distribution Date, registered holders of shares of Company Common Stock). 
 Section 31. Process to Seek Exemption. 
 (a) Any Person who desires to effect any acquisition of Company Stock that would, if consummated, result in such Person (together with its Affiliates and Associates) beneficially owning 4.9% or more of
the then-outstanding Company Stock (or, in the case of an Existing Holder, additional Company Stock representing one-half of one percent (0.5%) or more of the Company Stock outstanding as of the date hereof (adjusted for any stock splits,
subdivisions and the like)) (a “Requesting Person”) may, prior to the Stock

  

 30 

 
Acquisition Date and in accordance with this Section 31, request that the Board of Directors grant an exemption with respect to such acquisition under this Plan so that such acquisition
would be deemed to be an Exempt Transaction for purposes of this Plan (an “Exemption Request”). An Exemption Request shall be in proper form and shall be delivered by registered mail, return receipt requested, to the Secretary of
the Company at the address of the Company set forth in Section 26. To be in proper form, an Exemption Request shall set forth (i) the name and address of the Requesting Person, (ii) the kind, class and/or series, number and percentage
of Company Stock then beneficially owned by the Requesting Person, together with all Affiliates and Associates of the Requesting Person, and (iii) a reasonably detailed description of the transaction or transactions by which the Requesting
Person would propose to acquire Beneficial Ownership of Company Stock aggregating 4.9% or more of the then outstanding Company Stock (or, in the case of an Existing Holder, additional Company Stock representing one-half of one percent (0.5%) or more
of the Company Stock outstanding as of the date hereof (adjusted for any stock splits, subdivisions and the like)) and the kind, class/and or series, maximum number and percentage of Company Stock that the Requesting Person proposes to acquire.

 (b) The Board of Directors shall make a determination whether to grant an exemption in response to an Exemption Request as
promptly as practicable (and, in any event, within ten (10) Business Days) after receipt thereof; provided, however, that the failure of the Board of Directors to make a determination within such period shall be deemed to
constitute the denial by the Board of Directors of the Exemption Request. The Board of Directors shall only grant an exemption in response to an Exemption Request if the Board of Directors determines in its sole discretion that the acquisition of
Beneficial Ownership of Company Stock by the Requesting Person will not jeopardize or endanger the availability to the Company of the Tax Benefits or is otherwise in the best interests of the Company and its stockholders. Any exemption granted
hereunder may be granted in whole or in part, and may be subject to limitations or conditions (including a requirement that the Requesting Person agree that it will not acquire Beneficial Ownership of Company Stock in excess of the maximum number
and percentage approved by the Board of Directors), in each case as and to the extent the Board of Directors in its sole discretion shall determine necessary or desirable. Any Exemption Request may be submitted on a confidential basis and, except to
the extent required by applicable law, the Company shall maintain the confidentiality of such Exemption Request and the Board of Directors’ determination with respect thereto.
 Section 32. Severability. If any term, provision, covenant or restriction of this Plan is held by a court of competent
jurisdiction or other authority to be invalid, null and void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Plan shall remain in full force and effect and shall in no way be affected, impaired or
invalidated; and provided, further, that if any such excluded term, provision, covenant or restriction shall adversely affect the rights, immunities, duties or obligations of the Rights Agent, the Rights Agent shall be entitled to
resign immediately; provided, however, that notwithstanding anything in this Plan to the contrary, if any such term, provision, covenant or restriction is held by such court or authority to be invalid, null and void or unenforceable
and the Board of Directors determines in its good faith judgment that severing the invalid language from this Plan would adversely affect the purpose or effect of this Plan and the Rights shall not then be redeemable, the right of redemption set
forth in Section 23 hereof shall be reinstated and shall not expire until the Close of Business on the tenth Business Day following, but not including, the date of such determination by the Board of Directors. 
 Section 33. Governing Law. This Plan, each Right and each Rights Certificate issued hereunder shall be governed by, and
construed in accordance with, the laws of the State of Delaware applicable to contracts executed in and to be performed entirely in such State; provided, however, that all provisions, regarding the rights, duties, obligations and
liabilities of the Rights Agent shall be governed by and construed in accordance with the laws of the State of New York applicable to contracts made and to be performed entirely within such State. 
 Section 34. Counterparts. This Plan may be executed (including by facsimile) in one or more counterparts, and by the different
parties hereto in separate counterparts, each of which when executed shall be deemed to be an original, but all of which taken together shall constitute one and the same instrument. 
 Section 35. Descriptive Headings. The headings contained in this Plan are for descriptive purposes only and shall not affect in
any way the meaning or interpretation of this Plan. 
  

 31 

 Section 36. Force Majeure. Notwithstanding anything to the contrary contained
herein, the Rights Agent shall not be liable for any delays or failures in performance resulting from acts beyond its reasonable control including, without limitation, acts of God, terrorist acts, shortage of supply, breakdowns or malfunctions,
interruptions or malfunctions of computer facilities, or loss of data due to power failures or mechanical difficulties with information storage or retrieval systems, labor difficulties, war or civil unrest. 
 [Signature page follows] 
  

 32 

 IN WITNESS WHEREOF, the parties hereto have caused this Plan to be duly executed, all as of
the date first above written. 
  

			
	ICO Global Communications (Holdings) Limited
		
	By:	 	 /S/    JOHN L.
FLYNN      

	Name:	 	John L. Flynn
	Title:	 	EVP, GC & SEC
	
	Mellon Investor Services LLC
		
	By:	 	 /S/    ASA
DREW        

	Name:	 	Asa Drew
	Title:	 	Vice President

  

 33 

 EXHIBIT A 
 TO TAX BENEFITS PLAN 
 FORM OF CLASS A RIGHTS CERTIFICATE 
  

			
	Certificate No.             	 	             Class A Rights

 NOT EXERCISABLE AFTER THE EXPIRATION DATE (AS DEFINED IN THE TAX BENEFITS PLAN REFERRED TO BELOW). THE CLASS A RIGHTS ARE SUBJECT TO
REDEMPTION OR EXCHANGE, AT THE OPTION OF THE COMPANY, ON THE TERMS SET FORTH IN THE TAX BENEFITS PLAN. UNDER CERTAIN CIRCUMSTANCES SET FORTH IN THE TAX BENEFITS PLAN, CLASS A RIGHTS BENEFICIALLY OWNED BY ANY PERSON WHO IS, WAS OR BECOMES AN
ACQUIRING PERSON OR ANY AFFILIATE OR ASSOCIATE THEREOF (AS SUCH TERMS ARE DEFINED IN THE TAX BENEFITS PLAN), WHETHER CURRENTLY HELD BY OR ON BEHALF OF SUCH PERSON OR BY ANY SUBSEQUENT HOLDER, MAY BECOME NULL AND VOID. 
 Class A Rights Certificate 
 ICO Global Communications (Holdings) Limited 
 This certifies
that                     , or registered assigns, is the registered holder of the number of Class A Rights set forth above, each of
which entitles the registered holder thereof, subject to the terms and conditions of the Tax Benefits Preservation Plan dated as of January 29, 2010, as amended from time to time (the “Tax Benefits Plan”) (terms defined therein
being used herein with the same meaning unless otherwise defined herein), between ICO Global Communications (Holdings) Limited, a Delaware corporation (the “Company”), and Mellon Investor Services LLC, as Rights Agent (which term
shall include any successor Rights Agent under the Tax Benefits Plan), to purchase from the Company at any time after the Distribution Date and prior to the Expiration Date, at the office of the Rights Agent, one one-thousandth of a fully paid and
nonassessable share of Series A Junior Participating Preferred Stock, par value $0.01 per share (the “Series A Preferred”), of the Company at the Purchase Price initially of $12.40 per one one-thousandth share of Series A Preferred
(each such one one-thousandth of a share being a “Unit”), upon presentation and surrender of this Class A Rights Certificate with the Election to Purchase and related certificate duly executed. The number of Class A Rights
evidenced by this Class A Rights Certificate (and the number and kind of shares which may be purchased upon exercise thereof) and the Purchase Price per Unit set forth above, are the number and Purchase Price as of
            , 2010, based on the Series A Preferred as constituted at such date. 
 Upon the occurrence of a Section 11(a)(ii) Event, if the Class A Rights evidenced by this Class A Rights Certificate are beneficially owned by (i) an Acquiring Person or an Affiliate
or Associate of any such Acquiring Person or (ii) under certain circumstances described in the Tax Benefits Plan, a direct or indirect transferee of any such Acquiring Person, Associate or Affiliate, including a transferee of any person who,
after such transfer, becomes an Acquiring Person or an Affiliate or Associate of an Acquiring Person, such Class A Rights shall become null and void and no holder hereof shall have any right with respect to such Class A Rights from and
after the occurrence of such Section 11(a)(ii) Event. 
 As provided in the Tax Benefits Plan, the Purchase Price and the
number and kind of shares of Series A Preferred or other securities which may be purchased upon the exercise of the Class A Rights evidenced by this Class A Rights Certificate are subject to modification and adjustment upon the happening
of certain events, including a Section 11(a)(ii) Event. In certain circumstances described in the Tax Benefits Plan, the Class A Rights evidenced hereby may entitle the registered holder thereof to receive common stock, cash or other
assets, all as provided in the Tax Benefits Plan. 
 This Class A Rights Certificate is subject to all of the terms and
conditions of the Tax Benefits Plan, which terms and conditions are hereby incorporated herein by reference and made a part hereof and to which Tax Benefits Plan reference is hereby made for a full description of the rights, limitations of rights,
obligations, duties and immunities hereunder of the Rights Agent, the Company and the holders of the Class A Rights Certificates, which

  

 A-1 

 
limitations of rights include the temporary suspension of the exercisability of such Class A Rights under the specific circumstances set forth in the Tax Benefits Plan. Notwithstanding
anything contained herein to the contrary, if any terms or conditions of this Class A Rights Certificate shall be found to conflict with any terms or conditions of the Tax Benefits Plan, the Tax Benefits Plan shall control. Copies of the Tax
Benefits Plan are on file at the office of the Rights Agent designated for such purpose and are available from the Rights Agent upon written request. 
 This Class A Rights Certificate, with or without other Class A Rights Certificates, upon surrender at the office of the Rights Agent designated for such purpose, may be exchanged for another
Class A Rights Certificate or Class A Rights Certificates of like tenor and date evidencing an aggregate number of Class A Rights equal to the aggregate number of Class A Rights evidenced by the Class A Rights Certificate or
Class A Rights Certificates surrendered. If this Class A Rights Certificate shall be exercised in part, the registered holder shall be entitled to receive, upon surrender hereof, another Class A Rights Certificate or Class A
Rights Certificates for the number of whole Class A Rights not exercised. 
 Subject to the provisions of the Tax Benefits
Plan, the Class A Rights evidenced by this Certificate may be redeemed by the Company under certain circumstances at its option at a redemption price of $0.001 per Class A Right (as such amount may be adjusted pursuant to the Tax Benefits
Plan), at any time prior to the earlier of the Close of Business on (i) the tenth Business Day following the Stock Acquisition Date (or, if the Stock Acquisition Date shall have occurred prior to the Record Date, the Close of Business on the
tenth Business Day following the Record Date) and (ii) the Final Expiration Date. In addition, subject to the provisions of the Tax Benefits Plan, at the option of the Company, the Class A Rights may be exchanged, in whole or in part, for
Units of Series A Preferred or shares of the Class A Common Stock of the Company or other consideration. Immediately upon the action of the Board of Directors of the Company authorizing any such exchange, and without any further action or any
notice, the Rights (other than Rights which are not subject to such exchange) will terminate and the Class A Rights will only enable holders to receive the shares issuable upon such exchange. 
 No fractional shares of Series A Preferred will be issued upon the exercise of any Class A Right or Class A Rights evidenced
hereby (other than fractions which are integral multiples of one one-thousandth of a share of Series A Preferred, which may, at the election of the Company be evidenced by depositary receipts), but in lieu thereof a cash payment will be made, as
provided in the Tax Benefits Plan. 
 No holder of this Class A Rights Certificate, as such, shall be entitled to vote or
receive dividends or be deemed for any purpose the holder of Series A Preferred or of any other securities which may at any time be issuable on the exercise hereof, nor shall anything contained in the Tax Benefits Plan or herein be construed to
confer upon the holder hereof, as such, any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any
corporate action, or to receive notice of meetings or other actions affecting stockholders (except as provided in the Tax Benefits Plan), or to receive dividends of subscription rights, or otherwise, until the Class A Rights evidenced by this
Class A Rights Certificate shall have been exercised as provided in the Tax Benefits Plan. 
 This Class A Rights
Certificate shall not be valid or obligatory for any purpose until it shall have been countersigned by the Rights Agent. 
 WITNESS the facsimile signature of the proper officers of the Company. Dated as of                      , 
  

									
	ICO Global Communications (Holdings) Limited	  		  	Countersigned:
				
	By:	 	  
	  		  	Mellon Investor Services LLC 
	Name:	 		  		  	as Rights Agent
	Title:	 		  		  		  	
					
	By:	 	  
	  		  	By:	  	  

	Name:	 		  		  	Name:	  	
	Title:	 		  		  	Title:	  	

  

 A-2 

 (Form of Reverse Side of Class A Rights Certificate) 
 FORM OF ASSIGNMENT 
 (To be executed by the registered holder if such holder desires to 
 transfer the Class A Rights
Certificate.) 
 FOR VALUE
RECEIVED                                       
                                         
                  hereby sells, assigns and transfers unto: 
                                        
                                         
                                         
                                         
                                         
              
                      (Please print name and address of transferee) this Class A Rights Certificate, together with all right,
title and interest therein, and does hereby irrevocably constitute and appoint                      Attorney, to transfer the within
Class A Rights Certificate on the books of the within-named Company, with full power of substitution. 
  

	
	Dated:         ,              
	  

	Signature
	Signature Guaranteed:

 Certificate 
 The undersigned hereby certifies by checking the appropriate boxes in (1) and (2) that: 
 (1) this Class A Rights Certificate [ ] is [ ] is not being sold, assigned and transferred by or on behalf of a Person who is or was an
Acquiring Person or an Affiliate or Associate of any such Acquiring Person (as such terms are defined in the Tax Benefits Plan); and 
 (2) after due inquiry and to the best knowledge of the undersigned, it [ ] did [ ] did not acquire the Class A Rights evidenced by this Class A Rights Certificate from any Person who is, was or subsequently became an Acquiring
Person or an Affiliate or Associate of an Acquiring Person. 
  

	
	Dated:         ,              
	  

	Signature
	Signature Guaranteed:

 NOTICE 
 The signature to the foregoing Assignment and Certificate must correspond to the name as written upon the face of this Class A Rights
Certificate in every particular, without alteration or enlargement or any change whatsoever. 
  

 A-3 

 Signatures must be guaranteed by an approved eligible financial institution acceptable to
the Rights Agent in its sole discretion or by a participant in the Securities Transfer Agents Medallion Program, the Stock Exchange Medallion Program or the New York Stock Exchange Medallion Program. 
 In the event the certification set forth above is not completed, the Company will deem the Beneficial Owner of the Class A Rights
evidenced by this Class A Rights Certificate to be an Acquiring Person or an Affiliate or Associate thereof (as such terms are defined in the Tax Benefits Plan) and, in the case of an Assignment, will affix a legend to that effect on any
Class A Rights Certificates issued in exchange for this Class A Rights Certificate. 
  

 A-4 

 FORM OF ELECTION TO PURCHASE 
 (To be executed if the registered holder desires to exercise 
 Class A Rights represented by the Class A Rights Certificate.) 
 To: ICO Global Communications (Holdings) Limited

 The undersigned hereby irrevocably elects to
exercise                      Class A Rights represented by this Class A Rights Certificate to purchase the Units of Series A
Preferred issuable upon the exercise of the Class A Rights (or such other securities of the Company or of any other person or other property which may be issuable upon the exercise of the Class A Rights) and requests that certificates for
such Units (or such other securities) be issued in the name of and delivered to
                                         
                                         
   
                                        
                                         
                                         
       (Please print name and address)
                                        
                                         
                             
 (Please insert social security or other identifying number). 
 If such
number of Class A Rights shall not be all the Class A Rights evidenced by this Class A Rights Certificate, a new Class A Rights Certificate for the balance of such Class A Rights shall be registered in the name of and
delivered to:
                                        
 
 (Please print name and address)  
                                        
                                         
                             
 (Please insert social security or other identifying number). 
  

	
	Dated:         ,              
	  

	Signature
	
	Signature Guaranteed:

 Certificate 
 The undersigned hereby certifies by checking the appropriate boxes in (1) and (2) that: 
 (1) the Class A Rights evidenced by this Class A Rights Certificate [ ] are [ ] are not being exercised by or on behalf of a
Person who is or was an Acquiring Person or an Affiliate or an Associate thereof (as such terms are defined in the Tax Benefits Plan); and 
 (2) after due inquiry and to the best knowledge of the undersigned, it [ ] did [ ] did not acquire the Class A Rights evidenced by this Class A Rights Certificate from any person who is, was or
subsequently became an Acquiring Person or an Affiliate or Associate thereof. 
  

	
	Dated:         ,              
	  

	Signature
	
	Signature Guaranteed:

  

 A-5 

 NOTICE 
 The signature in the foregoing Election to Purchase and Certificate must conform to the name as written upon the face of this Class A Rights Certificate in every particular, without alteration or
enlargement or any change whatsoever. 
 Signatures must be guaranteed by an approved eligible financial institution acceptable
to the Rights Agent in its sole discretion or by a participant in the Securities Transfer Agents Medallion Program, the Stock Exchange Medallion Program or the New York Stock Exchange Medallion Program. 
 In the event the certification set forth above is not completed, the Company will deem the Beneficial Owner of the Class A Rights
evidenced by this Class A Rights Certificate to be an Acquiring Person or an Affiliate or Associate thereof (as such terms are defined in the Tax Benefits Plan) and the election to purchase will not be honored. 
  

 A-6 

 EXHIBIT B 
 TO TAX BENEFITS PLAN 
 FORM OF CLASS B RIGHTS CERTIFICATE 
  

			
	Certificate No.             	 	             Class B Rights

 NOT EXERCISABLE AFTER THE EXPIRATION DATE (AS DEFINED IN THE TAX BENEFITS PLAN REFERRED TO BELOW). THE CLASS B RIGHTS ARE SUBJECT TO
REDEMPTION OR EXCHANGE, AT THE OPTION OF THE COMPANY, ON THE TERMS SET FORTH IN THE TAX BENEFITS PLAN. UNDER CERTAIN CIRCUMSTANCES SET FORTH IN THE TAX BENEFITS PLAN, CLASS B RIGHTS BENEFICIALLY OWNED BY ANY PERSON WHO IS, WAS OR BECOMES AN
ACQUIRING PERSON OR ANY AFFILIATE OR ASSOCIATE THEREOF (AS SUCH TERMS ARE DEFINED IN THE TAX BENEFITS PLAN), WHETHER CURRENTLY HELD BY OR ON BEHALF OF SUCH PERSON OR BY ANY SUBSEQUENT HOLDER, MAY BECOME NULL AND VOID. 
 Class B Rights Certificate 
 ICO Global Communications (Holdings) Limited 
 This certifies
that                     , or registered assigns, is the registered holder of the number of Class B Rights set forth above, each of which
entitles the registered holder thereof, subject to the terms and conditions of the Tax Benefits Preservation Plan dated as of January 29, 2010, as amended from time to time (the “Tax Benefits Plan”) (terms defined therein being
used herein with the same meaning unless otherwise defined herein), between ICO Global Communications (Holdings) Limited, a Delaware corporation (the “Company”), and Mellon Investor Services LLC, as Rights Agent (which term shall
include any successor Rights Agent under the Tax Benefits Plan), to purchase from the Company at any time after the Distribution Date and prior to the Expiration Date, at the office of the Rights Agent, one one-thousandth of a fully paid and
nonassessable share of Series B Junior Participating Preferred Stock, par value $0.01 per share (the “Series B Preferred”), of the Company at the Purchase Price initially of $12.40 per one one-thousandth share of Series B Preferred
(each such one one-thousandth of a share being a “Unit”), upon presentation and surrender of this Class B Rights Certificate with the Election to Purchase and related certificate duly executed. The number of Class B Rights evidenced
by this Class B Rights Certificate (and the number and kind of shares which may be purchased upon exercise thereof) and the Purchase Price per Unit set forth above, are the number and Purchase Price as of
            , 2010, based on the Series B Preferred as constituted at such date. 
 Upon the occurrence of a Section 11(a)(ii) Event, if the Class B Rights evidenced by this Class B Rights Certificate are beneficially owned by (i) an Acquiring Person or an Affiliate or
Associate of any such Acquiring Person or (ii) under certain circumstances described in the Tax Benefits Plan, a direct or indirect transferee of any such Acquiring Person, Associate or Affiliate, including a transferee of any person who, after
such transfer, becomes an Acquiring Person or an Affiliate or Associate of an Acquiring Person, such Class B Rights shall become null and void and no holder hereof shall have any right with respect to such Class B Rights from and after the
occurrence of such Section 11(a)(ii) Event. 
 As provided in the Tax Benefits Plan, the Purchase Price and the number and
kind of shares of Series B Preferred or other securities which may be purchased upon the exercise of the Class B Rights evidenced by this Class B Rights Certificate are subject to modification and adjustment upon the happening of certain events,
including a Section 11(a)(ii) Event. In certain circumstances described in the Tax Benefits Plan, the Class B Rights evidenced hereby may entitle the registered holder thereof to receive common stock, cash or other assets, all as provided in
the Tax Benefits Plan. 
 This Class B Rights Certificate is subject to all of the terms and conditions of the Tax Benefits
Plan, which terms and conditions are hereby incorporated herein by reference and made a part hereof and to which Tax Benefits Plan reference is hereby made for a full description of the rights, limitations of rights, obligations, duties and
immunities hereunder of the Rights Agent, the Company and the holders of the Class B Rights Certificates, which

  

 B-1 

 
limitations of rights include the temporary suspension of the exercisability of such Class B Rights under the specific circumstances set forth in the Tax Benefits Plan. Notwithstanding anything
contained herein to the contrary, if any terms or conditions of this Class B Rights Certificate shall be found to conflict with any terms or conditions of the Tax Benefits Plan, the Tax Benefits Plan shall control. Copies of the Tax Benefits Plan
are on file at the office of the Rights Agent designated for such purpose and are available from the Rights Agent upon written request. 
 This Class B Rights Certificate, with or without other Class B Rights Certificates, upon surrender at the office of the Rights Agent designated for such purpose, may be exchanged for another Class B
Rights Certificate or Class B Rights Certificates of like tenor and date evidencing an aggregate number of Class B Rights equal to the aggregate number of Class B Rights evidenced by the Class B Rights Certificate or Class B Rights Certificates
surrendered. If this Class B Rights Certificate shall be exercised in part, the registered holder shall be entitled to receive, upon surrender hereof, another Class B Rights Certificate or Class B Rights Certificates for the number of whole Class B
Rights not exercised. 
 Subject to the provisions of the Tax Benefits Plan, the Class B Rights evidenced by this Certificate
may be redeemed by the Company under certain circumstances at its option at a redemption price of $0.001 per Class B Right (as such amount may be adjusted pursuant to the Tax Benefits Plan), at any time prior to the earlier of the Close of Business
on (i) the tenth Business Day following the Stock Acquisition Date (or, if the Stock Acquisition Date shall have occurred prior to the Record Date, the Close of Business on the tenth Business Day following the Record Date) and (ii) the
Final Expiration Date. In addition, subject to the provisions of the Tax Benefits Plan, at the option of the Company, the Class B Rights may be exchanged, in whole or in part, for Units of Series B Preferred or shares of the Class B Common Stock of
the Company or other consideration. Immediately upon the action of the Board of Directors of the Company authorizing any such exchange, and without any further action or any notice, the Rights (other than Rights which are not subject to such
exchange) will terminate and the Class B Rights will only enable holders to receive the shares issuable upon such exchange. 
 No fractional shares of Series B Preferred will be issued upon the exercise of any Class B Right or Class B Rights evidenced hereby (other than fractions which are integral multiples of one one-thousandth of a share of Series B Preferred,
which may, at the election of the Company be evidenced by depositary receipts), but in lieu thereof a cash payment will be made, as provided in the Tax Benefits Plan. 
 No holder of this Class B Rights Certificate, as such, shall be entitled to vote or receive dividends or be deemed for any purpose the holder of Series B Preferred or of any other securities which may at
any time be issuable on the exercise hereof, nor shall anything contained in the Tax Benefits Plan or herein be construed to confer upon the holder hereof, as such, any of the rights of a stockholder of the Company or any right to vote for the
election of directors or upon any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions affecting stockholders (except as provided in the
Tax Benefits Plan), or to receive dividends of subscription rights, or otherwise, until the Class B Rights evidenced by this Class B Rights Certificate shall have been exercised as provided in the Tax Benefits Plan. 
 This Class B Rights Certificate shall not be valid or obligatory for any purpose until it shall have been countersigned by the Rights Agent.

 WITNESS the facsimile signature of the proper officers of the Company. Dated as
of                  , 
  

									
	ICO Global Communications (Holdings) Limited	  		  	Countersigned:
				
	By:	  	  
	  		  	Mellon Investor Services LLC 
	Name:	  		  		  	as Rights Agent
	Title:	  		  		  		  	
					
	By:	  	  
	  		  	By:	  	  

	Name:	  		  		  	Name:	  	
	Title:	  		  		  	Title:	  	

  

 B-2 

 (Form of Reverse Side of Class B Rights Certificate) 
 FORM OF ASSIGNMENT 
 (To be executed by the registered holder if such holder desires to transfer the Class B Rights Certificate.) 
 FOR VALUE
RECEIVED                                       
                                         
                  hereby sells, assigns and transfers unto:  
                                        
                                         
                                         
                                         
                                         
              
                                        
                      (Please print name and address of transferee) this Class B Rights Certificate, together with all right, title
and interest therein, and does hereby irrevocably constitute and appoint
                                        
Attorney, to transfer the within Class B Rights Certificate on the books of the within-named Company, with full power of substitution. 
  

	
	 Dated:              ,
        

	
	  

	Signature
	
	Signature Guaranteed:

 Certificate 
 The undersigned hereby certifies by checking the appropriate boxes in (1) and (2) that: 
 (3) this Class B Rights Certificate [    ] is [    ] is not being sold, assigned and transferred by
or on behalf of a Person who is or was an Acquiring Person or an Affiliate or Associate of any such Acquiring Person (as such terms are defined in the Tax Benefits Plan); and 
 (4) after due inquiry and to the best knowledge of the undersigned, it [    ] did [    ] did not
acquire the Class B Rights evidenced by this Class B Rights Certificate from any Person who is, was or subsequently became an Acquiring Person or an Affiliate or Associate of an Acquiring Person. 
  

	
	 Dated:              ,
        

	
	  

	Signature
	
	Signature Guaranteed:

 NOTICE 
 The signature to the foregoing Assignment and Certificate must correspond to the name as written upon the face of this Class B Rights
Certificate in every particular, without alteration or enlargement or any change whatsoever. 
  

 B-3 

 Signatures must be guaranteed by an approved eligible financial institution acceptable to
the Rights Agent in its sole discretion or by a participant in the Securities Transfer Agents Medallion Program, the Stock Exchange Medallion Program or the New York Stock Exchange Medallion Program. 
 In the event the certification set forth above is not completed, the Company will deem the Beneficial Owner of the Class B Rights evidenced
by this Class B Rights Certificate to be an Acquiring Person or an Affiliate or Associate thereof (as such terms are defined in the Tax Benefits Plan) and, in the case of an Assignment, will affix a legend to that effect on any Class B Rights
Certificates issued in exchange for this Class B Rights Certificate. 
  

 B-4 

 FORM OF ELECTION TO PURCHASE 
 (To be executed if the registered holder desires to exercise 
 Class B Rights represented by the Class B Rights Certificate.) 
 To:  ICO Global Communications (Holdings) Limited

 The undersigned hereby irrevocably elects to
exercise                      Class B Rights represented by this Class B Rights Certificate to purchase the Units of Series B Preferred
issuable upon the exercise of the Class B Rights (or such other securities of the Company or of any other person or other property which may be issuable upon the exercise of the Class B Rights) and requests that certificates for such Units (or such
other securities) be issued in the name of and delivered to
                                         
                                         
               
             (Please print name and address)
                                        
                                         
                                 
 (Please insert social security or other identifying number). 
 If such number of Class B Rights shall not be all the Class B Rights evidenced by this Class B Rights Certificate, a new Class B Rights Certificate for the balance of such Class B Rights shall be
registered in the name of and delivered to:
                                         
                                         
                   
 (Please print name
and address)
                                        
                                         
                                 
 (Please insert social security or other identifying number). 
  

	
	 Dated:              ,
        

	
	  

	Signature
	
	Signature Guaranteed:

 Certificate 
 The undersigned hereby certifies by checking the appropriate boxes in (1) and (2) that: 
 (3) the Class B Rights evidenced by this Class B Rights Certificate [    ] are [    ] are not being
exercised by or on behalf of a Person who is or was an Acquiring Person or an Affiliate or an Associate thereof (as such terms are defined in the Tax Benefits Plan); and 
 (4) after due inquiry and to the best knowledge of the undersigned, it [    ] did [    ] did not acquire the Class B Rights evidenced by this Class B Rights
Certificate from any person who is, was or subsequently became an Acquiring Person or an Affiliate or Associate thereof. 
  

	
	 Dated:              ,
        

	
	  

	Signature
	
	Signature Guaranteed:

  

 B-5 

 NOTICE 
 The signature in the foregoing Election to Purchase and Certificate must conform to the name as written upon the face of this Class B Rights Certificate in every particular, without alteration or
enlargement or any change whatsoever. 
 Signatures must be guaranteed by an approved eligible financial institution acceptable
to the Rights Agent in its sole discretion or by a participant in the Securities Transfer Agents Medallion Program, the Stock Exchange Medallion Program or the New York Stock Exchange Medallion Program. 
 In the event the certification set forth above is not completed, the Company will deem the Beneficial Owner of the Class B Rights evidenced
by this Class B Rights Certificate to be an Acquiring Person or an Affiliate or Associate thereof (as such terms are defined in the Tax Benefits Plan) and the election to purchase will not be honored. 
  

 B-6 

 EXHIBIT C 
 TO TAX BENEFITS PLAN 
 UNDER CERTAIN CIRCUMSTANCES 
 SET FORTH IN THE TAX BENEFITS PLAN, 
 RIGHTS ISSUED TO, OR HELD BY, ANY PERSON WHO IS, WAS OR BECOMES AN ACQUIRING 
 PERSON OR ANY AFFILIATE OR ASSOCIATE THEREOF 
 (AS SUCH TERMS ARE DEFINED IN THE TAX BENEFITS PLAN), 
 WHETHER CURRENTLY HELD BY OR ON BEHALF OF SUCH PERSON OR BY ANY SUBSEQUENT 
 HOLDER, 
 MAY BECOME NULL AND VOID. 
 SUMMARY OF RIGHTS TO PURCHASE PREFERRED STOCK 
 As of January 29, 2010, the Board of Directors (the “Board of Directors”) of ICO Global Communications (Holdings) Limited (the “Company”) authorized and declared a
dividend of one Class A Right (“Class A Right”) for each outstanding share of its Class A Common Stock, par value $0.01 per share (the “Class A Common Stock”) and one Class B Right (“Class B
Right” and together with the Class A Rights, the “Rights”) for each outstanding share of its Class B Common Stock, par value $0.01 per share (the “Class B Common Stock” and together with the
Class A Common Stock, the “Company Common Stock”), to stockholders of record at the close of business on February 8, 2010 (the “Record Date”), and authorized the issuance of one Class A Right for each
share of Class A Common Stock issued by the Company and one Class B Right for each share of Class B Common Stock issued by the Company (except as otherwise provided in the Tax Benefits Plan, as defined below) between the Record Date and the
Distribution Date (as defined below). Each Class A Right entitles the registered holder, subject to the terms of the Tax Benefits Plan (as defined below), to purchase from the Company one one-thousandth of a share (a “Unit”) of
Series A Junior Participating Preferred Stock, par value $0.01 per share (the “Series A Preferred”), at a purchase price of $12.40 per Unit, subject to adjustment, and each Class B Right entitles the registered holder, subject to
the terms of the Tax Benefits Plan, to purchase from the Company one Unit of Series B Junior Participating Preferred Stock, par value $0.01 per share (the “Series B Preferred”), at a purchase price of $12.40 per Unit, subject to
adjustment. The purchase price for the Class A Rights and the Class B Rights is payable in cash or by certified or bank check or money order payable to the order of the Company. The description and terms of the Rights are set forth in a Tax
Benefits Preservation Plan between the Company and Mellon Investor Services LLC, as Rights Agent, dated as of January 29, 2010, as amended from time to time (the “Tax Benefits Plan”). 
 Copies of the Tax Benefits Plan and the Certificates of Designation for the Series A Preferred and Series B Preferred have been filed with
the Securities and Exchange Commission as Exhibits to a Current Report on Form 8-K. Copies of the Tax Benefits Plan and the Certificates of Designation are available free of charge from the Company. This summary description of the Rights, the Series
A Preferred and the Series B Preferred does not purport to be complete and is qualified in its entirety by reference to all of the provisions of the Tax Benefits Plan and the Certificates of Designation, including the definitions therein of certain
terms, which Tax Benefits Plan and Certificates of Designation are incorporated herein by reference. 
 The Board of Directors
adopted the Tax Benefits Plan in an effort to help preserve the ability to utilize fully the Company’s net operating loss carryforwards (the “NOLs”) to reduce potential future federal income tax obligations. The Company has
substantial NOLs, and under the Internal Revenue Code and the Treasury Regulations issued thereunder, it may “carry forward” these losses in certain circumstances to offset any current and future income and thus reduce its federal income
tax liability, subject to certain restrictions. To the extent that the NOLs do not otherwise become limited, the Company believes that it will be able to carry forward a significant amount of NOLs, and therefore these NOLs could be a substantial
asset for the Company. However, the Company’s ability to use its NOLs would be limited if there was an “ownership change” under Section 382 of the Internal Revenue Code (“Section 382”). This would occur if
stockholders owning (or deemed under Section 382 to own) 5% or more of the Company’s securities by value increase their collective ownership of the aggregate amount of the Company’s then-outstanding securities by more than 50
percentage points over a three-year period. 
  

 C-1 

 The Tax Benefits Plan is intended to act as a deterrent to any person or group acquiring,
without the approval of the Company’s Board of Directors, beneficial ownership of 4.9% or more of the Company Stock, defined to include (i) shares of Company Common Stock, (ii) shares of preferred stock of the Company (other than
preferred stock described in Section 1504(a)(4) of the Internal Revenue Code), (iii) warrants, rights, or options (including options within the meaning of Treasury Regulation § 1.382-2T(h)(4)(v)) to purchase stock of the Company,
and (iv) any interest that would be treated as “stock” of the Company for purposes of Section 382 of the Internal Revenue Code or pursuant to Treasury Regulation § 1.382-2T(f)(18). However, the Tax Benefits Plan cannot
provide certainty that an “ownership change” will not occur or that the Company will be able to utilize its tax benefits. Holders of 4.9% or more of the Company Stock outstanding as of the close of business on January 29, 2010 will
not trigger the Tax Benefits Plan so long as they do not (i) acquire additional Company Stock constituting one-half of one percent (0.5%) or more of the Company Stock outstanding as of the date of the Tax Benefits Plan (as adjusted for stock
splits, subdivisions and the like, as well as other exceptions detailed in the Tax Benefits Plan), or (ii) fall under 4.9% ownership of Company Stock and then re-acquire 4.9% or more of the Company Stock. Any Rights held by an Acquiring Person
(defined below) are void and may not be exercised. The Board of Directors may, in its sole discretion, exempt any person or group from being deemed an Acquiring Person for purposes of the Tax Benefits Plan and may exempt any transaction from causing
a person to become an Acquiring Person. The rights offering approved by the Board of Directors as of January 29, 2010 is deemed under the Tax Benefits Plan to be such an exempt transaction. 
 The Tax Benefits Plan 
 Certificates; Distribution Date. Initially, the Rights will attach to all certificates representing shares of outstanding Company Common Stock, and no separate Rights Certificates will be
distributed. Subject to the provisions of the Tax Benefits Plan, the Rights will separate from the Company Common Stock and the “Distribution Date” will occur upon the earlier of (i) ten Business Days following a public announcement
(the date of such announcement being the “Stock Acquisition Date”) that a person or group of affiliated or associated persons (an “Acquiring Person”) has acquired or otherwise obtained beneficial ownership of 4.9%
or more of the then-outstanding Company Stock or such earlier date as the Board of Directors shall determine that a Person has become an Acquiring Person (or, if the tenth Business Day after the Stock Acquisition Date occurs before the Record Date,
the close of business on the Record Date), and (ii) ten Business Days (or such later date as may be determined by action of the Board of Directors) following the commencement of a tender offer or exchange offer that would result in a person or
group becoming an Acquiring Person. Until the Distribution Date, (i) the Rights will be evidenced by Company Common Stock certificates and will be transferred with and only with such Company Common Stock certificates, (ii) new Company
Common Stock certificates issued after the Record Date (also including shares distributed from Treasury) will contain a notation incorporating the Tax Benefits Plan by reference and (iii) the surrender for transfer of any certificates
representing outstanding Company Common Stock will also constitute the transfer of the Rights associated with the Company Common Stock represented by such certificates. 
 The Rights are not exercisable until the Distribution Date. Under certain circumstances, as provided in the Tax Benefits Plan, the exercisability of the Rights may be suspended. 
 As soon as practicable after the Distribution Date, Rights Certificates will be mailed to holders of record of Company Common Stock as of
the close of business on the Distribution Date (and to each initial holder of certain shares of Company Common Stock issued after the Distribution Date) and, thereafter, the separate Rights Certificates alone will represent the Rights. 

Flip-In. If a person becomes an Acquiring Person, then each holder of a Right will thereafter have the right to receive, upon
exercise, Units of Series A Preferred or Series B Preferred or, at the option of the Company, shares of Company Common Stock (or, in certain circumstances, cash, property or other securities of the Company) having a value equal to two times the
exercise price of the Right. The exercise price is the purchase price multiplied by the number of Units of Series A Preferred or Series B Preferred issuable upon exercise of a Right prior to the event described in this paragraph. Notwithstanding any
of the foregoing, following the occurrence of the event set forth in this paragraph, all Rights that are, or (under certain circumstances specified in the Tax Benefits Plan) were, beneficially owned by any Acquiring Person or any affiliate or
associate thereof (or certain transferees of any thereof) will be null and void. 
  

 C-2 

 Redemption. At any time until ten Business Days following the Stock Acquisition Date
(or, if the Stock Acquisition Date shall have occurred prior to the Record Date, until ten Business Days following the Record Date), the Board of Directors may redeem the Rights in whole, but not in part, at a price of $0.001 per Right (subject to
adjustment in certain events) payable, at the election of the Board of Directors, in cash, shares of Company Common Stock or other consideration considered appropriate by the Board of Directors. Immediately upon the action of the Board of Directors
ordering the redemption of the Rights, the Rights will terminate and the only right of the holders of Rights will be to receive the redemption price. 
 Exchange. The Company may, at any time after there is an Acquiring Person, until the time specified in the Tax Benefits Plan, exchange all or part of the then-outstanding and exercisable
Class A Rights and Class B Rights (other than Rights that shall have become null and void) for Units of Series A Preferred or shares of Class A Common Stock or Units of Series B Preferred or shares of Class B Common Stock, respectively,
pursuant to a one-for-one exchange ratio, subject to adjustment or, at the election of the Company, other consideration. 
 Expiration. The Rights will expire on the earliest of (i) the tenth (10th) anniversary of the Tax Benefits Plan, (ii) the time at which the Rights are redeemed or exchanged, and
(iii) the repeal of Section 382 of the Internal Revenue Code or any successor statute if the Board of Directors determines that the Tax Benefits Plan is no longer necessary for the preservation of NOLs and certain other tax benefits.

 No Stockholder Rights; Taxation. Until a Right is exercised, the holder thereof, as such, will have no rights as a
stockholder of the Company, including, without limitation, the right to vote or to receive dividends. While the distribution of the Rights will not be taxable to stockholders or to the Company, stockholders may, depending upon the circumstances,
recognize taxable income in the event that the Rights become exercisable for Units of Preferred Stock (or other consideration) or in the event of the redemption of Rights as set forth above. 
 Amendment. Prior to the Distribution Date, the Company may amend any of the provisions of the Plan without the approval of the
holders of the Rights or Company Common Stock at any time. After such date, subject to the terms of the Plan, the Company may amend the Plan to cure any ambiguity, defect or inconsistency, to shorten or lengthen any time period, or to make changes
which do not adversely affect the interests of holders of Rights (excluding the interests of any Acquiring Person). 
 Description of Series A Preferred and Series B Preferred 
 The Units of Series A Preferred and Series B
Preferred will be nonredeemable. 
 Each Unit of Series A Preferred and Series B Preferred will have a minimum preferential
quarterly dividend of $0.001 per Unit or any higher per share dividend declared on the Company Common Stock. 
 In the event of
liquidation, the holder of a Unit of Series A Preferred or Series B Preferred will receive a preferred liquidation payment equal to the greater of $0.01 per Unit and the per share amount paid in respect of a share of the Company Common Stock.

 Each Unit of Series A Preferred will have one vote, and each Unit of Series B Preferred will have ten votes, each voting
together with the Company Common Stock. 
 In the event of any merger, consolidation or other transaction in which shares of
Class A Common Stock are exchanged, each Unit of Series A Preferred will be entitled to receive the per share amount paid in respect of each share of Class A Common Stock. In the event of any merger, consolidation or other transaction in
which shares of Class B Common Stock are exchanged, each Unit of Series B Preferred will be entitled to receive the per share amount paid in respect of each share of Class B Common Stock. 
 Holders of Series B Preferred will have the right to convert their Units of Series B Preferred into an equal number of Units of Series A
Preferred at any time. Units of Series B Preferred will automatically be converted into an equal number of Units of Series A Preferred upon any transfer, other than certain permitted transfers. 
  

 C-3 

 The rights of holders of the Series A Preferred and Series B Preferred with respect to
dividends, liquidation and voting, and in the event of mergers and consolidations, are protected by customary antidilution provisions. 
 The economic value of one Unit of Series A Preferred or Series B Preferred should approximate the economic value of one share of the applicable class of Company Common Stock. 
  

 C-4 

 EXHIBIT D 
 TO TAX BENEFITS PLAN 
 CERTIFICATE OF DESIGNATION 
 OF THE 
 SERIES A
JUNIOR PARTICIPATING PREFERRED STOCK 
 OF 
 ICO GLOBAL COMMUNICATIONS (HOLDINGS) LIMITED 
 The undersigned officer of ICO
Global Communications (Holdings) Limited, a Delaware corporation (the “Corporation”), DOES HEREBY CERTIFY: 
 That, pursuant to the authority conferred upon the Board of Directors of the Corporation by its Restated Certificate of Incorporation (as amended, the “Certificate of Incorporation”), the said Board of Directors, at a duly
called meeting held on January 19, 2010, at which a quorum was present and acted throughout, adopted the following resolution, which resolution remains in full force and effect on the date hereof, creating a series of preferred stock having a
par value of $0.01 per share, designated as Series A Junior Participating Preferred Stock (the “Series A Junior Participating Preferred Stock”), out of the Corporation’s authorized shares of preferred stock of the par value of
$0.01 per share (the “Preferred Stock”): 
 RESOLVED, that pursuant to the authority vested in the Board of
Directors in accordance with the provisions of its Certificate of Incorporation, the Board of Directors does hereby create, authorize and provide for 2,800,000 shares of its authorized Preferred Stock to be designated and issued as the “Series
A Junior Participating Preferred Stock,” having the relative rights, preferences and limitations that are set forth as follows: 
 1. Dividends and Distributions. 
 (A) Subject to the prior and superior rights of the holders of any shares of
any other series of Preferred Stock or any other shares of stock of the Corporation ranking prior and superior to the shares of Series A Junior Participating Preferred Stock with respect to dividends, each holder of one one-thousandth
(1/1000) of a share (a “Unit”) of Series A Junior Participating Preferred Stock shall be entitled to receive, when, as and if declared by the Board of Directors out of funds legally available for that purpose, and on a pari
passu basis with the Series B Junior Participating Preferred Stock, par value $.01 per share, of the Corporation (the “Series B Junior Participating Preferred Stock”), (i) quarterly dividends payable in cash on the
second Monday of March, June, September and December in each year (each such date being a “Quarterly Dividend Payment Date”), commencing on the first Quarterly Dividend Payment Date after the first issuance of a Unit of Series A
Junior Participating Preferred Stock, in an amount per Unit (rounded to the nearest cent) equal to the greater of (a) $0.001 or (b) subject to the provision for adjustment hereinafter set forth, the aggregate per share amount of all
cash dividends declared on shares of the Class A Common Stock since the immediately preceding Quarterly Dividend Payment Date, or, with respect to the first Quarterly Dividend Payment Date, since the first issuance of a Unit of Series A Junior
Participating Preferred Stock, and (ii) subject to the provision for adjustment hereinafter set forth, quarterly distributions (payable in kind) on each Quarterly Dividend Payment Date in an amount per Unit equal to the aggregate per share
amount of all non-cash dividends or other distributions (other than a dividend payable in shares of Class A Common Stock or a subdivision of the outstanding shares of Class A Common Stock by reclassification or otherwise) declared on
shares of Class A Common Stock since the immediately preceding Quarterly Dividend Payment Date, or, with respect to the first Quarterly Dividend Payment Date, since the first issuance of a Unit of Series A Junior Participating Preferred Stock.
In the event that the Corporation shall at any time after January 29, 2010 (the “Rights Declaration Date”) (i) declare any dividend on outstanding shares of Class A Common Stock payable in shares of Class A
Common Stock, (ii) subdivide outstanding shares of Class A Common Stock or (iii) combine outstanding shares of Class A Common Stock into a smaller number of shares, then in each such case the amount to which the holder of a Unit
of Series A Junior Participating Preferred Stock was entitled immediately prior to such event under clause (i) (b) or clause (ii) of the preceding sentence shall be adjusted by multiplying such amount by a fraction (y) the
numerator of which shall be the number of shares of Class A Common Stock that are outstanding immediately after such event and (z) the denominator of which shall be the number of shares of Class A Common Stock that were outstanding
immediately prior to such event. 
  

 D-1 

 (B) The Corporation shall declare a dividend or distribution on Units of Series A Junior
Participating Preferred Stock as provided in paragraph (A) above immediately after it declares a dividend or distribution on the shares of Class A Common Stock (other than a dividend payable in shares of Class A Common Stock or a
subdivision of the outstanding shares of Class A Common Stock, by reclassification or otherwise). 
 (C) Stock dividends on
the Series A Junior Participating Preferred Stock shall not be paid or issued unless (1) such stock dividend is paid or issued only in shares or Units of Series A Junior Participating Preferred Stock or shares of Class A Common Stock and
(2) a stock dividend is paid or issued contemporaneously on the Series B Junior Participating Preferred Stock, on the same pro rata basis and in the form of shares or Units of Series B Junior Participating Preferred Stock or shares of Class B
Common Stock. 
 (D) Dividends shall begin to accrue and shall be cumulative on each outstanding Unit of Series A Junior
Participating Preferred Stock from the Quarterly Dividend Payment Date next preceding the date of issuance of a Unit of Series A Junior Participating Preferred Stock, unless the date of issuance of such Unit is prior to the record date for the first
Quarterly Dividend Payment Date, in which case dividends on such Unit shall begin to accrue from the date of issuance of such Unit, or unless the date of issuance is a Quarterly Dividend Payment Date or is a date after the record date for the
determination of holders of Units of Series A Junior Participating Preferred Stock entitled to receive a quarterly dividend and before such Quarterly Dividend Payment Date, in either of which events such dividends shall begin to accrue and be
cumulative from such Quarterly Dividend Payment Date. Accrued but unpaid dividends shall not bear interest. Dividends paid on Units of Series A Junior Participating Preferred Stock in an amount less than the aggregate amount of all such dividends at
the time accrued and payable on such Units shall be allocated pro rata on a Unit-by-Unit basis among all Units of Series A Junior Participating Preferred Stock at the time outstanding. The Board of Directors may fix a record date for the
determination of holders of Units of Series A Junior Participating Preferred Stock entitled to receive payment of a dividend or distribution declared thereon, which record date shall be no more than 30 days prior to the date fixed for the
payment thereof. 
 2. Voting Rights. The holders of Units of Series A Junior Participating Preferred Stock shall have
the following voting rights: 
 (A) Subject to the provision for adjustment hereinafter set forth, each Unit of Series A Junior
Participating Preferred Stock shall entitle the holder thereof to one vote on all matters submitted to a vote of the stockholders of the Corporation. In the event the Corporation shall, at any time after the Rights Declaration Date, (i) declare
any dividend on outstanding shares of Class A Common Stock payable in shares of Class A Common Stock, (ii) subdivide outstanding shares of Class A Common Stock or (iii) combine the outstanding shares of Class A Common
Stock into a smaller number of shares, then in each such case the number of votes per Unit to which holders of Units of Series A Junior Participating Preferred Stock were entitled immediately prior to such event shall be adjusted by multiplying such
number by a fraction (y) the numerator of which shall be the number of shares of Class A Common Stock outstanding immediately after such event and (z) the denominator of which shall be the number of shares of Class A Common Stock
that were outstanding immediately prior to such event. 
 (B) Except as otherwise provided herein, in the Certificate of
Incorporation or the Bylaws of the Corporation or as required by law, the holders of Units of Series A Junior Participating Preferred Stock and the holders of shares of Class A Common Stock, Class B Common Stock and any other stock of the
Corporation having general voting rights shall vote together as one class on all matters submitted to a vote of stockholders of the Corporation. 
 3. Certain Restrictions. 
 (A) Whenever quarterly dividends or other
dividends or distributions payable on Units of Series A Junior Participating Preferred Stock as provided herein are in arrears, thereafter and until all accrued and unpaid dividends and distributions, whether or not declared, on outstanding Units of
Series A Junior Participating Preferred Stock shall have been paid in full, the Corporation shall not: 
 (i) declare or pay
dividends on, or make any other distributions on, or redeem or purchase or otherwise acquire for consideration any shares of junior stock; 
  

 D-2 

 (ii) declare or pay dividends on, or make any other distributions on, any shares of parity
stock, except dividends paid ratably on Units of Series A Junior Participating Preferred Stock and shares of all such parity stock on which dividends are payable or in arrears in proportion to the total amounts to which the holders of such Units and
all such shares are then entitled; 
 (iii) redeem or purchase or otherwise acquire for consideration shares of any parity
stock, provided, however, that the Corporation may at any time redeem, purchase or otherwise acquire shares of any such parity stock in exchange for shares of any junior stock; or 
 (iv) redeem or purchase or otherwise acquire for consideration any Units of Series A Junior Participating Preferred Stock, or any shares of
parity stock, except in accordance with a purchase offer made in writing or by publication (as determined by the Board of Directors) to all holders of such Units and shares of parity stock upon such terms as the Board of Directors, after
consideration of the respective annual dividend rates and other relative rights and preferences of the respective series and classes, shall determine in good faith will result in fair and equitable treatment among the respective series and classes.

 (B) The Corporation shall not permit any subsidiary of the Corporation to purchase or otherwise acquire for consideration any
shares of stock of the Corporation, unless the Corporation could, under paragraph (A) of this Section 3, purchase or otherwise acquire such shares at such time and in such manner. 
 4. Reacquired Shares. Any Units of Series A Junior Participating Preferred Stock purchased or otherwise acquired by the Corporation
in any manner whatsoever shall be retired and cancelled promptly after the acquisition thereof. All such Units shall, upon their cancellation, become authorized but unissued shares (or fractions of shares) of Preferred Stock and may be reissued as
part of a new series of Preferred Stock to be created by resolution or resolutions of the Board of Directors, subject to the conditions and restrictions on issuance set forth herein. 
 5. Liquidation, Dissolution or Winding Up. 
 (A) Upon any voluntary or involuntary liquidation, dissolution or winding up of the Corporation, no distribution shall be made (i) to the holders of shares of junior stock, unless the holders of
Units of Series A Junior Participating Preferred Stock shall have received, subject to adjustment as hereinafter provided in paragraph (B), the greater of either (a) $0.01 per Unit plus an amount equal to accrued and unpaid dividends and
distributions thereon, whether or not earned or declared, to the date of such payment, or (b) the amount per unit equal to the aggregate per share amount to be distributed to holders of shares of Class A Common Stock, or (ii) to the
holders of shares of parity stock, unless simultaneously therewith distributions are made ratably on Units of Series A Junior Participating Preferred Stock and all other shares of such parity stock in proportion to the total amounts to which the
holders of Units of Series A Junior Participating Preferred Stock are entitled under clause (i)(a) of this sentence and to which the holders of shares of such parity stock are entitled, in each case upon such liquidation, dissolution or winding
up. 
 (B) In the event the Corporation shall at any time after the Rights Declaration Date (i) declare any dividend on
outstanding shares of Class A Common Stock payable in shares of Class A Common Stock, (ii) subdivide outstanding shares of Class A Common Stock, or (iii) combine outstanding shares of Class A Common Stock into a smaller
number of shares, then in each such case the aggregate amount to which holders of Units of Series A Junior Participating Preferred Stock were entitled immediately prior to such event pursuant to clause (i)(b) of paragraph (A) of this
Section 5 shall be adjusted by multiplying such amount by a fraction (y) the numerator of which shall be the number of shares of Class A Common Stock that are outstanding immediately after such event and (z) the denominator of
which shall be the number of shares of Class A Common Stock that were outstanding immediately prior to such event. 
  

 D-3 

 6. Split, Subdivision or Combination. If the Corporation shall in any manner split,
subdivide or combine the outstanding shares or Units of Series B Junior Participating Preferred Stock (or undertake any similar transaction), the outstanding shares or Units, as applicable, of the Series A Junior Participating Preferred Stock shall
be proportionally split, subdivided or combined in the same manner and on the same basis as the outstanding shares or Units of the Series B Junior Participating Preferred Stock have been split, subdivided or combined. Any decrease or increase in the
number of shares or Units of the Series B Junior Participating Preferred Stock resulting from a split, subdivision, combination or consolidation of shares or Units or other capital reclassification shall not be permitted unless parallel action is
taken with respect to the Series A Junior Participating Preferred Stock, so that the number of shares or Units, as applicable, of each of the Series B Junior Participating Preferred Stock and Series A Junior Participating Preferred Stock shall be
impacted proportionately. 
 7. Consolidation, Merger, etc. 
 (A) In case the Corporation shall enter into any consolidation, merger, combination or other transaction in which the shares of Class A
Common Stock are exchanged for or converted into other stock or securities, cash and/or any other property, then in any such case Units of Series A Junior Participating Preferred Stock shall at the same time be similarly exchanged for or converted
into an amount per Unit (subject to the provision for adjustment hereinafter set forth) equal to the aggregate amount of stock, securities, cash and/or any other property (payable in kind), as the case may be, into which or for which each share of
Class A Common Stock is converted or exchanged. In the event the Corporation shall at any time after the Rights Declaration Date (i) declare any dividend on outstanding shares of Class A Common Stock payable in shares of Class A
Common Stock, (ii) subdivide outstanding shares of Class A Common Stock, or (iii) combine outstanding Class A Common Stock into a smaller number of shares, then in each such case the amount set forth in the immediately preceding
sentence with respect to the exchange or conversion of Units of Series A Junior Participating Preferred Stock shall be adjusted by multiplying such amount by a fraction (y) the numerator of which shall be the number of shares of Class A
Common Stock that are outstanding immediately after such event and (z) the denominator of which shall be the number of shares of Class A Common Stock that were outstanding immediately prior to such event. 
 (B) In case the Corporation shall enter into any consolidation, merger, combination or other transaction in which the Units of Series B
Junior Participating Preferred Stock are exchanged for or changed into other securities, cash and/or any other property, then the holders of the Units of Series A Junior Participating Preferred Stock shall be entitled to receive the same per-Unit
consideration in such transaction; provided that if all or part of the consideration so received consists of common stock or other securities of the surviving or resulting entity, the common stock or other securities so issued may differ as
to voting and conversion rights to the extent, but only to the extent, that the Series A Junior Participating Preferred Stock and Series B Junior Participating Preferred Stock so differ as set forth in their respective Certificates of Designation.

 8. Redemption. The Units of Series A Junior Participating Preferred Stock and shares of Series A Junior Participating
Preferred Stock shall not be redeemable. 
 9. Ranking. The Units of Series A Junior Participating Preferred Stock and
shares of Series A Junior Participating Preferred Stock shall rank pari passu with the Series B Junior Participating Preferred Stock and junior to all other series of the Preferred Stock and to any other class of Preferred Stock that
hereafter may be issued by the Corporation as to the payment of dividends and the distribution of assets, unless the terms of any such series or class shall provide otherwise. 
 10. Fractional Shares. The Series A Junior Participating Preferred Stock may be issued in Units or other fractions of a share, which
Units or other fractions shall entitle the holder, in proportion to such holder’s Units or other fractional shares, to exercise voting rights, receive dividends, participate in distributions and to have the benefit of all other rights of
holders of Series A Junior Participating Preferred Stock. 
 11. Amendment. At any time when any Units of Series A Junior
Participating Preferred Stock are outstanding, neither the Certificate of Incorporation of the Corporation nor this Certificate of Designation shall be amended in any manner which would materially alter or change the powers, preferences or special
rights of the Units of Series A Junior Participating Preferred Stock so as to affect them adversely without the affirmative vote of the holders of a majority or more of the outstanding Units of Series A Junior Participating Preferred Stock, voting
separately as a class. 
  

 D-4 

 12. Certain Definitions. As used in this resolution with respect to the Series A
Junior Participating Preferred Stock, the following terms shall have the following meanings: 
 (A) The term “Class A
Common Stock” shall mean the class of stock designated as the Class A common stock, par value $0.01 per share, of the Corporation at the date hereof or any other class of stock resulting from successive changes or reclassification of
the Class A common stock. 
 (B) The term “Class B Common Stock” shall mean the class of stock designated as the
Class B common stock, par value $0.01 per share, of the Corporation at the date hereof or any other class of stock resulting from successive changes or reclassification of the Class B common stock. 
 (C) The term “junior stock” (i) as used in Section 3, shall mean the Class A and Class B Common Stock and any
other class or series of capital stock of the Corporation over which the Series A Junior Participating Preferred Stock has preference or priority as to dividends and (ii) as used in Section 5, shall mean such Common Stock and any other
class or series of capital stock of the Corporation over which the Series A Junior Participating Preferred Stock has preference or priority in any liquidation, dissolution or winding up of the Corporation. 
 (D) The term “parity stock” (i) as used in Section 3, shall mean any class or series of capital stock of the Corporation
hereafter authorized or issued ranking pari passu with the Series A Junior Participating Preferred Stock as to dividends and (ii) as used in Section 5, shall mean any class or series of capital stock of the Corporation ranking
pari passu with the Series A Junior Participating Preferred Stock in any liquidation, dissolution or winding up. 
  

 D-5 

 IN WITNESS WHEREOF, ICO Global Communications (Holdings) Limited has caused this Certificate
of Designation to be signed by its Executive Vice President, General Counsel and Corporate Secretary this      day of January, 2010. 
  

			
	ICO Global Communications (Holdings) Limited
		
	By:	 	  

	Name:	 	John L. Flynn
	Title:	 	 Executive Vice President, General Counsel
 and Corporate Secretary

  

 D-6 

 EXHIBIT E 
 TO TAX BENEFITS PLAN 
 CERTIFICATE OF DESIGNATION 
 OF THE 
 SERIES B
JUNIOR PARTICIPATING PREFERRED STOCK 
 OF 
 ICO GLOBAL COMMUNICATIONS (HOLDINGS) LIMITED 
 The undersigned officer of ICO
Global Communications (Holdings) Limited, a Delaware corporation (the “Corporation”), DOES HEREBY CERTIFY: 
 That, pursuant to the authority conferred upon the Board of Directors of the Corporation by its Restated Certificate of Incorporation (as amended, the “Certificate of Incorporation”), the said Board of Directors, at a duly
called meeting held on January 19, 2010, at which a quorum was present and acted throughout, adopted the following resolution, which resolution remains in full force and effect on the date hereof, creating a series of preferred stock having a
par value of $0.01 per share, designated as Series B Junior Participating Preferred Stock (the “Series B Junior Participating Preferred Stock”), out of the Corporation’s authorized shares of preferred stock of the par value of
$0.01 per share (the “Preferred Stock”): 
 RESOLVED, that pursuant to the authority vested in the Board of
Directors in accordance with the provisions of its Certificate of Incorporation, the Board of Directors does hereby create, authorize and provide for 600,000 shares of its authorized Preferred Stock to be designated and issued as the “Series B
Junior Participating Preferred Stock,” having the relative rights, preferences and limitations that are set forth as follows: 
 1. Dividends and Distributions. 
 (A) Subject to the prior and superior rights of the holders of any shares of any
other series of Preferred Stock or any other shares of stock of the Corporation ranking prior and superior to the shares of Series B Junior Participating Preferred Stock with respect to dividends, each holder of one one-thousandth (1/1000) of a
share (a “Unit”) of Series B Junior Participating Preferred Stock shall be entitled to receive, when, as and if declared by the Board of Directors out of funds legally available for that purpose, and on a pari passu basis
with the Series A Junior Participating Preferred Stock, par value $.01 per share, of the Corporation (the “Series A Junior Participating Preferred Stock”), (i) quarterly dividends payable in cash on the second Monday
of March, June, September and December in each year (each such date being a “Quarterly Dividend Payment Date”), commencing on the first Quarterly Dividend Payment Date after the first issuance of a Unit of Series B Junior
Participating Preferred Stock, in an amount per Unit (rounded to the nearest cent) equal to the greater of (a) $0.001 or (b) subject to the provision for adjustment hereinafter set forth, the aggregate per share amount of all cash
dividends declared on shares of the Class B Common Stock since the immediately preceding Quarterly Dividend Payment Date, or, with respect to the first Quarterly Dividend Payment Date, since the first issuance of a Unit of Series B Junior
Participating Preferred Stock, and (ii) subject to the provision for adjustment hereinafter set forth, quarterly distributions (payable in kind) on each Quarterly Dividend Payment Date in an amount per Unit equal to the aggregate per share
amount of all non-cash dividends or other distributions (other than a dividend payable in shares of Class B Common Stock or a subdivision of the outstanding shares of Class B Common Stock, by reclassification or otherwise) declared on shares of
Class B Common Stock since the immediately preceding Quarterly Dividend Payment Date, or, with respect to the first Quarterly Dividend Payment Date, since the first issuance of a Unit of Series B Junior Participating Preferred Stock. In the event
that the Corporation shall at any time after January 29, 2010 (the “Rights Declaration Date”) (i) declare any dividend on outstanding shares of Class B Common Stock payable in shares of Class B Common Stock,
(ii) subdivide outstanding shares of Class B Common Stock or (iii) combine outstanding shares of Class B Common Stock into a smaller number of shares, then in each such case the amount to which the holder of a Unit of Series B Junior
Participating Preferred Stock was entitled immediately prior to such event under clause (i) (b) or clause (ii) of the preceding sentence shall be adjusted by multiplying such amount by a fraction (y) the numerator of which shall
be the number of shares of Class B Common Stock that are outstanding immediately after such event and (z) the denominator of which shall be the number of shares of Class B Common Stock that were outstanding immediately prior to such event.

  

 E-1 

 (B) The Corporation shall declare a dividend or distribution on Units of Series B Junior
Participating Preferred Stock as provided in paragraph (A) above immediately after it declares a dividend or distribution on the shares of Class B Common Stock (other than a dividend payable in shares of Class B Common Stock or a subdivision of
the outstanding shares of Class B Common Stock, by reclassification or otherwise). 
 (C) Stock dividends on the Series B Junior
Participating Preferred Stock shall not be paid or issued unless (1) such stock dividend is paid or issued only in shares or Units of Series B Junior Participating Preferred Stock or shares of Class B Common Stock and (2) a stock dividend
is paid or issued contemporaneously on the Series A Junior Participating Preferred Stock, on the same pro rata basis and in the form of shares or Units of Series A Junior Participating Preferred Stock or shares of Class A Common Stock.

 (D) Dividends shall begin to accrue and shall be cumulative on each outstanding Unit of Series B Junior Participating
Preferred Stock from the Quarterly Dividend Payment Date next preceding the date of issuance of a Unit of Series B Junior Participating Preferred Stock, unless the date of issuance of such Unit is prior to the record date for the first Quarterly
Dividend Payment Date, in which case dividends on such Unit shall begin to accrue from the date of issuance of such Unit, or unless the date of issuance is a Quarterly Dividend Payment Date or is a date after the record date for the determination of
holders of Units of Series B Junior Participating Preferred Stock entitled to receive a quarterly dividend and before such Quarterly Dividend Payment Date, in either of which events such dividends shall begin to accrue and be cumulative from such
Quarterly Dividend Payment Date. Accrued but unpaid dividends shall not bear interest. Dividends paid on Units of Series B Junior Participating Preferred Stock in an amount less than the aggregate amount of all such dividends at the time accrued and
payable on such Units shall be allocated pro rata on a Unit-by-Unit basis among all Units of Series B Junior Participating Preferred Stock at the time outstanding. The Board of Directors may fix a record date for the determination of holders of
Units of Series B Junior Participating Preferred Stock entitled to receive payment of a dividend or distribution declared thereon, which record date shall be no more than 30 days prior to the date fixed for the payment thereof. 
 2. Voting Rights. The holders of Units of Series B Junior Participating Preferred Stock shall have the following voting rights:

 (A) Subject to the provision for adjustment hereinafter set forth, each Unit of Series B Junior Participating Preferred Stock
shall entitle the holder thereof to ten votes on all matters submitted to a vote of the stockholders of the Corporation. In the event the Corporation shall, at any time after the Rights Declaration Date, (i) declare any dividend on outstanding
shares of Class B Common Stock payable in shares of Class B Common Stock, (ii) subdivide outstanding shares of Class B Common Stock or (iii) combine the outstanding shares of Class B Common Stock into a smaller number of shares, then in
each such case the number of votes per Unit to which holders of Units of Series B Junior Participating Preferred Stock were entitled immediately prior to such event shall be adjusted by multiplying such number by a fraction (y) the numerator of
which shall be the number of shares of Class B Common Stock outstanding immediately after such event and (z) the denominator of which shall be the number of shares of Class B Common Stock that were outstanding immediately prior to such event.

 (B) Except as otherwise provided herein, in the Certificate of Incorporation or the Bylaws of the Corporation or as required
by law, the holders of Units of Series B Junior Participating Preferred Stock and the holders of shares of Class A Common Stock, Class B Common Stock and any other stock of the Corporation having general voting rights shall vote together as one
class on all matters submitted to a vote of stockholders of the Corporation. 
 3. Certain Restrictions. 
 (A) Whenever quarterly dividends or other dividends or distributions payable on Units of Series B Junior Participating Preferred Stock as
provided herein are in arrears, thereafter and until all accrued and unpaid dividends and distributions, whether or not declared, on outstanding Units of Series B Junior Participating Preferred Stock shall have been paid in full, the Corporation
shall not: 
 (i) declare or pay dividends on, or make any other distributions on, or redeem or purchase or otherwise acquire
for consideration any shares of junior stock; 
  

 E-2 

 (ii) declare or pay dividends on, or make any other distributions on, any shares of parity
stock, except dividends paid ratably on Units of Series B Junior Participating Preferred Stock and shares of all such parity stock on which dividends are payable or in arrears in proportion to the total amounts to which the holders of such Units and
all such shares are then entitled; 
 (iii) redeem or purchase or otherwise acquire for consideration shares of any parity
stock, provided, however, that the Corporation may at any time redeem, purchase or otherwise acquire shares of any such parity stock in exchange for shares of any junior stock; or 
 (iv) redeem or purchase or otherwise acquire for consideration any Units of Series B Junior Participating Preferred Stock, or any shares of
parity stock, except in accordance with a purchase offer made in writing or by publication (as determined by the Board of Directors) to all holders of such Units and shares of parity stock upon such terms as the Board of Directors, after
consideration of the respective annual dividend rates and other relative rights and preferences of the respective series and classes, shall determine in good faith will result in fair and equitable treatment among the respective series and classes.

 (B) The Corporation shall not permit any subsidiary of the Corporation to purchase or otherwise acquire for consideration any
shares of stock of the Corporation, unless the Corporation could, under paragraph (A) of this Section 3, purchase or otherwise acquire such shares at such time and in such manner. 
 4. Reacquired Shares. Any Units of Series B Junior Participating Preferred Stock purchased or otherwise acquired by the Corporation
in any manner whatsoever shall be retired and cancelled promptly after the acquisition thereof. All such Units shall, upon their cancellation, become authorized but unissued shares (or fractions of shares) of Preferred Stock and may be reissued as
part of a new series of Preferred Stock to be created by resolution or resolutions of the Board of Directors, subject to the conditions and restrictions on issuance set forth herein. 
 5. Liquidation, Dissolution or Winding Up. 
 (A) Upon any voluntary or involuntary liquidation, dissolution or winding up of the Corporation, no distribution shall be made (i) to the holders of shares of junior stock, unless the holders of
Units of Series B Junior Participating Preferred Stock shall have received, subject to adjustment as hereinafter provided in paragraph (B), the greater of either (a) $0.01 per Unit plus an amount equal to accrued and unpaid dividends and
distributions thereon, whether or not earned or declared, to the date of such payment, or (b) the amount per unit equal to the aggregate per share amount to be distributed to holders of shares of Class B Common Stock, or (ii) to the
holders of shares of parity stock, unless simultaneously therewith distributions are made ratably on Units of Series B Junior Participating Preferred Stock and all other shares of such parity stock in proportion to the total amounts to which the
holders of Units of Series B Junior Participating Preferred Stock are entitled under clause (i)(a) of this sentence and to which the holders of shares of such parity stock are entitled, in each case upon such liquidation, dissolution or winding
up. 
 (B) In the event the Corporation shall at any time after the Rights Declaration Date (i) declare any dividend on
outstanding shares of Class B Common Stock payable in shares of Class B Common Stock, (ii) subdivide outstanding shares of Class B Common Stock, or (iii) combine outstanding shares of Class B Common Stock into a smaller number of shares,
then in each such case the aggregate amount to which holders of Units of Series B Junior Participating Preferred Stock were entitled immediately prior to such event pursuant to clause (i)(b) of paragraph (A) of this Section 5 shall be
adjusted by multiplying such amount by a fraction (y) the numerator of which shall be the number of shares of Class B Common Stock that are outstanding immediately after such event and (z) the denominator of which shall be the number of
shares of Class B Common Stock that were outstanding immediately prior to such event. 
  

 E-3 

 6. Split, Subdivision or Combination. If the Corporation shall in any manner split,
subdivide or combine the outstanding shares or Units of Series A Junior Participating Preferred Stock (or undertake any similar transaction), the outstanding shares or Units, as applicable, of the Series B Junior Participating Preferred Stock shall
be proportionally split, subdivided or combined in the same manner and on the same basis as the outstanding shares or Units of the Series A Junior Participating Preferred Stock have been split, subdivided or combined. Any decrease or increase in the
number of shares or Units of the Series A Junior Participating Preferred Stock resulting from a split, subdivision, combination or consolidation of shares or Units or other capital reclassification shall not be permitted unless parallel action is
taken with respect to the Series B Junior Participating Preferred Stock, so that the number of shares or Units, as applicable, of each of the Series A Junior Participating Preferred Stock and Series B Junior Participating Preferred Stock shall be
impacted proportionately. 
 7. Consolidation, Merger, etc. 
 (A) In case the Corporation shall enter into any consolidation, merger, combination or other transaction in which the shares of Class B
Common Stock are exchanged for or converted into other stock or securities, cash and/or any other property, then in any such case Units of Series B Junior Participating Preferred Stock shall at the same time be similarly exchanged for or converted
into an amount per Unit (subject to the provision for adjustment hereinafter set forth) equal to the aggregate amount of stock, securities, cash and/or any other property (payable in kind), as the case may be, into which or for which each share of
Class B Common Stock is converted or exchanged. In the event the Corporation shall at any time after the Rights Declaration Date (i) declare any dividend on outstanding shares of Class B Common Stock payable in shares of Class B Common Stock,
(ii) subdivide outstanding shares of Class B Common Stock, or (iii) combine outstanding Class B Common Stock into a smaller number of shares, then in each such case the amount set forth in the immediately preceding sentence with respect to
the exchange or conversion of Units of Series B Junior Participating Preferred Stock shall be adjusted by multiplying such amount by a fraction (y) the numerator of which shall be the number of shares of Class B Common Stock that are
outstanding immediately after such event and (z) the denominator of which shall be the number of shares of Class B Common Stock that were outstanding immediately prior to such event. 
 (B) In case the Corporation shall enter into any consolidation, merger, combination or other transaction in which the Units of Series B
Junior Participating Preferred Stock are exchanged for or changed into other securities, cash and/or any other property, then the holders of the Units of Series A Junior Participating Preferred Stock shall be entitled to receive the same per-Unit
consideration in such transaction; provided that if all or part of the consideration so received consists of common stock or other securities of the surviving or resulting entity, the common stock or other securities so issued may differ as
to voting and conversion rights to the extent, but only to the extent, that the Series A Junior Participating Preferred Stock and Series B Junior Participating Preferred Stock so differ as set forth in their respective Certificates of Designation.

 8. Conversion. The holders of shares of Series B Junior Participating Preferred Stock shall have optional conversion
rights, and be subject to automatic conversion, as follows (collectively, the “Conversion Rights”) 
 (A)
Optional Conversion. At any time, each Unit of Series B Junior Participating Preferred Stock shall be convertible at the option of the holder thereof into one fully paid and nonassessable Unit of Series A Junior Participating Preferred Stock.

 (B) Automatic Conversion. Units of Series B Junior Participating Preferred Stock that are sold, assigned, pledged,
encumbered or transferred on any basis, whether voluntary or involuntary (a “Transfer”), shall be automatically converted into an equal number of Units of Series A Junior Participating Preferred Stock, whether or not the
certificates representing such Units of Series B Junior Participating Preferred Stock have been surrendered for conversion, (i) upon such Transfer, except for Transfers to a Permitted Transferee (as defined below) or (ii) following a
Transfer to a Permitted Transferee, at the time, if any, that the Permitted Transferee ceases to qualify as a Permitted Transferee. 
 (C) “Affiliate” shall mean a party that, directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with the stockholder specified. For purposes of this definition, an
entity shall be deemed to be controlled by a stockholder if (and only for so long as) (x) such

  

 E-4 

 
stockholder has the right to vote by ownership, proxy or otherwise securities constituting 5% or more of the voting power of such entity if such entity has equity securities registered and files
reports under the United States Securities Exchange Act of 1934, as amended, or otherwise (if not reporting) securities constituting 50% or more of the voting power of such entity; (y) such stockholder possesses, directly or indirectly, the
power to direct or cause the direction of the management and policies of such entity, whether through the ownership of voting securities, by contract or otherwise; or (z) with respect to a charitable trust, foundation or nonprofit corporation,
such stockholder is the sole trustee or director or has the power to appoint a majority of the trustees or directors thereof. In addition, without limiting the generality of the foregoing, Teledesic Corporation, Teledesic LLC, Teledesic Holdings
Limited, XO Communications, Inc., and Nextel Communications, Inc. shall each be deemed an Affiliate of Craig O. McCaw and Eagle River Investments, L.L.C. (“Eagle River”). 
 (D) “Permitted Transferee” shall mean any one of the following persons or entities: 
 (i) Eagle River, Craig O. McCaw, William H. Gates III, Cascade Investment, L.L.C., any Affiliate of Eagle River and any person who or entity
which has executed a valid irrevocable written voting proxy covering the transferred Series B Junior Participating Preferred Stock in favor of Eagle River for the period of time such person or entity owns such Series B Junior Participating Preferred
Stock, which proxy contains an acknowledgment that it is coupled with an interest; or 
 (ii) in the event of any bona fide
pledge by the holder of Units of Series B Junior Participating Preferred Stock, a lender, financing entity or investment banking firm so long as the pledgee acknowledges in writing that the Units subject to such pledge are subject to automatic
conversion as provided herein upon foreclosure or other action to take or sell such Units. 
 (E) Mechanics of
Conversion. In the event of optional conversion of Series B Junior Participating Preferred Stock pursuant to Section 8(A) hereof, such holder shall surrender the certificate or certificates therefor, duly endorsed, at the office of the
Corporation or any transfer agent of such stock, and shall give written notice to the secretary of the Corporation at its principal corporate office, of the election to convert the same and shall state therein the name or names in which the
certificate or certificates for Units of Series A Junior Participating Preferred Stock are to be issued. The Corporation shall, as soon as practical thereafter, issue and deliver at such office to such holder or the nominee or nominees of such
holder, certificate(s) for the number of Units of Series A Junior Participating Preferred Stock to which such holder shall be entitled. Such conversion shall be deemed to have been made immediately prior to the close of business on such date of such
surrender of the Units to be converted and the person or persons entitled to receive the Units of Series A Junior Participating Preferred Stock issuable on the conversion shall be treated for all purposes as the record holder or holders of such
Units of Series A Junior Participating Preferred Stock as of such date. In the event of the automatic conversion of Units of Series B Junior Participating Preferred Stock pursuant to Section 8(B) hereof, the outstanding certificates
representing the Units of Series B Junior Participating Preferred Stock so converted shall be deemed to represent, immediately upon such conversion and without further action, the appropriate number of Units of Series A Junior Participating
Preferred Stock issuable upon such conversion; and, upon tender to the Corporation of the original certificate(s) representing such converted Units of Series B Junior Participating Preferred Stock, the holder thereof shall be entitled to receive new
certificate(s) representing the appropriate number of Units of Series A Junior Participating Preferred Stock issuable upon such conversion. Any Units of Series B Junior Participating Preferred Stock cancelled pursuant to this Section 8(E) shall
be restored to the status of authorized but unissued Units of Series B Junior Participating Preferred Stock.
 (F)
Reservation of Series A Junior Participating Preferred Stock Issuable upon Conversion. The Corporation shall at all times keep available out of its authorized but unissued Units of Series A Junior Participating Preferred Stock, solely for the
purpose of effecting the conversion of the Units of Series B Junior Participating Preferred Stock, such number of Units of Series A Junior Participating Preferred Stock as shall from time to time be sufficient to effect the conversion of all of the
outstanding Units of Series B Junior Participating Preferred Stock; and if at any time the number of authorized but unissued Units of Series A Junior Participating Preferred Stock shall not be sufficient to effect the conversion of all of the then
outstanding Units of Series B Junior Participating Preferred Stock, in addition to such other remedies as may be available to the holders of such Units, the Corporation will take such corporate action as may, in the opinion of its counsel, be
necessary to increase its authorized but unissued Units of Series A Junior Participating Preferred Stock to such number of Units as shall be sufficient for such purposes, including, without limitation, engaging in best efforts to obtain the
requisite stockholder approval of any necessary amendment to the Certificate of Incorporation. 
  

 E-5 

 9. Redemption. The Units of Series B Junior Participating Preferred Stock and shares
of Series B Junior Participating Preferred Stock shall not be redeemable. 
 10. Ranking. The Units of Series B Junior
Participating Preferred Stock and shares of Series B Junior Participating Preferred Stock shall rank pari passu with the Series A Junior Participating Preferred Stock and junior to all other series of the Preferred Stock and to any other
class of Preferred Stock that hereafter may be issued by the Corporation as to the payment of dividends and the distribution of assets, unless the terms of any such series or class shall provide otherwise. 
 11. Fractional Shares. The Series B Junior Participating Preferred Stock may be issued in Units or other fractions of a share, which
Units or other fractions shall entitle the holder, in proportion to such holder’s Units or other fractional shares, to exercise voting rights, receive dividends, participate in distributions and to have the benefit of all other rights of
holders of Series B Junior Participating Preferred Stock. 
 12. Amendment. At any time when any Units of Series B Junior
Participating Preferred Stock are outstanding, neither the Certificate of Incorporation of the Corporation nor this Certificate of Designation shall be amended in any manner which would materially alter or change the powers, preferences or special
rights of the Units of Series B Junior Participating Preferred Stock so as to affect them adversely without the affirmative vote of the holders of a majority or more of the outstanding Units of Series B Junior Participating Preferred Stock, voting
separately as a class. 
 13. Certain Definitions. As used in this resolution with respect to the Series B Junior
Participating Preferred Stock, the following terms shall have the following meanings: 
 (A) The term “Class A Common
Stock” shall mean the class of stock designated as the Class A common stock, par value $0.01 per share, of the Corporation at the date hereof or any other class of stock resulting from successive changes or reclassification of the
Class A common stock. 
 (B) The term “Class B Common Stock” shall mean the class of stock designated as the
Class B common stock, par value $0.01 per share, of the Corporation at the date hereof or any other class of stock resulting from successive changes or reclassification of the Class B common stock. 
 (C) The term “junior stock” (i) as used in Section 3, shall mean the Class A and Class B Common Stock and any other
class or series of capital stock of the Corporation over which the Series B Junior Participating Preferred Stock has preference or priority as to dividends and (ii) as used in Section 5, shall mean such Common Stock and any other class or
series of capital stock of the Corporation over which the Series B Junior Participating Preferred Stock has preference or priority in any liquidation, dissolution or winding up of the Corporation. 
 (D) The term “parity stock” (i) as used in Section 3, shall mean any class or series of capital stock of the Corporation
hereafter authorized or issued ranking pari passu with the Series B Junior Participating Preferred Stock as to dividends and (ii) as used in Section 5, shall mean any class or series of capital stock of the Corporation ranking
pari passu with the Series B Junior Participating Preferred Stock in any liquidation, dissolution or winding up. 
  

 E-6 

 IN WITNESS WHEREOF, ICO Global Communications (Holdings) Limited has caused this Certificate
of Designation to be signed by its Executive Vice President, General Counsel and Corporate Secretary this      day of January, 2010. 
  

			
	ICO Global Communications (Holdings) Limited
		
	By:	 	  

	Name:	 	John L. Flynn
	Title:	 	 Executive Vice President, General Counsel
 and Corporate Secretary

  

 E-7

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