Document:

EX-10.2

 Exhibit 10.2 

EXECUTION COPY 
 THIS
EMPLOYMENT AGREEMENT (the “Agreement”), dated as of May 21, 2014 (the “Effective Date”) is entered into by and between HC2 Holdings, Inc. (the “Company”), and Philip A. Falcone
(“Executive”). 
 WHEREAS, the Company has offered to employ Executive, and Executive has agreed to be employed by the
Company, pursuant to the terms of this Agreement, 
 NOW, THEREFORE, in consideration of the mutual agreements, provisions and covenants
contained herein, and intending to be legally bound hereby, the parties hereto agree as set forth below: 
  

	 	1.	Term; Effectiveness. Subject to the terms and conditions of this Agreement, the Company agrees to employ Executive and Executive agrees to be employed by the Company as an at-will employee as of the Effective
Date. As an at-will employee, the Company may terminate Executive’s employment at any time, with or without reason, and Executive may resign at any time, with or without reason, both subject to the notice provisions in Section 5. The
provisions of this Agreement will continue to apply unless and until Executive is informed in writing that it is being prospectively modified by the Company, or until it is superseded by a subsequent written agreement between Executive and the
Company. The entire period during which Executive is employed by the Company is at times referred to herein as the “Employment Period.” 

  

	 	2.	Definitions. For purposes of this Agreement, the following terms, as used herein, shall have the definitions set forth below. 

 

	 	(a)	“Affiliate” means, with respect to any specified Person, any other Person that directly or indirectly, through one or more intermediaries, Controls, is Controlled by, or is under common Control with,
such specified Person, provided that, in any event, any business in which the Company has a direct or indirect ownership interest of more than five (5) percent shall be treated as an Affiliate of the Company. 

 

	 	(b)	“Control” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by
contract or otherwise. 

  

	 	(c)	“Person” means any individual, corporation, partnership, limited liability company, firm, joint venture, association, joint-stock company, trust, unincorporated organization, governmental or regulatory
body or other entity. 

  

	 	(d)	“Subsidiary” means, with respect to any Person, (i) any corporation of which at least a majority of the voting power with respect to the capital stock is owned, directly or indirectly, by such
Person, any of its other Subsidiaries or any combination thereof or (ii) any Person other than a corporation in which such Person, any of its other Subsidiaries or any combination thereof has, directly or indirectly, at least a majority of the
total equity or other ownership interest therein. 

  

	 	(e)	“Termination Date” means the last day that Executive is employed by the Company. For the avoidance of doubt, the Termination Date shall mean the last date of employment, whether such day is selected by
mutual agreement with Executive or unilaterally by the Company or by Executive and whether with or without advance notice. 

  
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	 	3.	Duties and Responsibilities. 

  

	 	(a)	Executive agrees to be employed by the Company and be actively engaged in the business and activities of the Company and its Affiliates during the Employment Period, and to devote considerable time and attention to the
Company and its Affiliates and the promotion of its business and interests and in no event less time than is reasonably required for the full performance of Executive’s duties and responsibilities hereunder. During the Employment Period,
Executive agrees to use his reasonable best efforts to ensure that the business and activities of the Company and its Affiliates are conducted in compliance with all applicable laws, rules and regulations in all material respects. Executive shall be
employed hereunder with the title Chairman, President & Chief Executive Officer of the Company with such duties and responsibilities customarily associated with those positions under Delaware law and as may be further directed from time to
time by the Board of Directors of the Company (the “Board”) and reporting solely to the Board. Executive agrees to cooperate with reasonable requests of the Company to provide services to the Company’s Affiliates (including Harbinger
Group Inc. and its Affiliates) in accordance with Company policies. 

  

	 	(b)	During the Employment Period, Executive shall use Executive’s best efforts to faithfully and diligently serve the Company and shall not act in any capacity that is in conflict with Executive’s duties and
responsibilities hereunder. For the avoidance of doubt, during the Employment Period except as otherwise expressly provided herein, Executive shall not (i) be permitted to become employed by, engaged in or to render services for any Person
other than the Company and its Affiliates, (ii) be permitted to be a member of the board of directors of any Person (other than charitable or nonprofit organizations), in any case without the consent of the Company, and (iii) be directly
or indirectly materially engaged or interested in any business activity, trade or occupation (other than employment with the Company and its Affiliates as contemplated by the Agreement); provided that nothing herein shall preclude Executive from
engaging in charitable or community affairs and managing his personal investments to the extent that such other activities do not, subject to Section 7, conflict in any material way with the performance of Executive’s duties hereunder.

  
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	 	(c)	Notwithstanding anything in this Agreement to the contrary, Executive shall be permitted to continue to provide services to Harbinger Group Inc. and its subsidiaries and affiliates (the “HGI Entities”)
and Harbinger Capital Partners LLC and its current and future portfolio companies (the “Harbinger Capital Entities”), on an aggregate basis that is substantially comparable in terms of commitment, engagement and involvement with the
duties and responsibilities undertaken by Executive for the HGI Entities and the Harbinger Entities (other than the Company) (collectively, the “Harbinger Entities”) prior to the date hereof. 

 

	 	4.	Compensation and Related Matters. 

  

	 	(a)	Base Compensation. The Option (as defined in Section 4(f)) shall constitute the minimum compensation payable to Executive in respect of his services hereunder. Unless the Compensation Committee (the
“Compensation Committee”) of the Company’s Board of Directors (“Board”) shall otherwise determine on the basis of an annual review of the issues, Executive shall not be paid a base salary (“Base
Salary”) for his services rendered under this Agreement. Any Base Salary authorized by the Compensation Committee would be payable in accordance with payroll practices applicable to Company employees. 

 

	 	(b)	Annual Bonus. In addition to the Option and any Base Salary it determines to be payable, the Compensation Committee may authorize the Company to adopt an annual bonus plan payments under which are intended to
qualify as performance based compensation under Section 162(m) of the Internal Revenue Code of 1986, as amended (an “Annual Bonus”). In addition to or in lieu of a Base Salary, the Compensation Committee, in its discretion, and in
consultation with Executive in his capacity as Chairman, President and Chief Executive Officer, may include Executive as a participant under the Bonus Plan or to provide for a discretionary annual cash bonus to Executive. If granted, Executive
shall be entitled to payment of the Annual Bonus, if any, only if Executive is employed by the Company on the payment date. 

  

	 	(c)	Benefits and Perquisites. During the Employment Period, Executive shall be entitled to participate in the benefit plans and programs commensurate with Executive’s position that are provided by the Company
from time to time for comparable executives generally, subject to the terms and conditions of such plans. The Company may alter, modify, add to or delete from, or terminate any of its employee benefit plans at any time as it, in its sole judgment,
determines to be appropriate, without recourse by Executive, except that no such action shall adversely affect any previously vested rights of Executive under such plans. 

  
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	 	(d)	Business Expense Reimbursements. The Company shall reimburse Executive for reasonable and properly documented business expenses incurred during the Employment Period in accordance with the Company’s
then-prevailing policies and procedures for expense reimbursement. 

  

	 	(e)	Vacation. During the Employment Period, if and to the extent that Executive is receiving a Base Salary, Executive shall be eligible for paid time off (“PTO”) of twenty-seven (27) days
annually as provided in applicable Company policies. If no Base Salary is payable, Executive shall be entitled to such number of days off annually without pay. 

  

	 	(f)	Initial Equity Grant. Contemporaneously with the execution and delivery of this Agreement, the Company shall issue an option (the “Option”) to purchase 1,568,864 shares of the Company’s
common stock, par value $0.001 per share, at an exercise price of $4.56 per share. The Option shall be exercisable for one-third of the shares subject to the Option immediately and an additional one-third of the shares covered by the Option shall
become exercisable on each of the first and second anniversaries of the Effective Date; provided that, Executive shall surrender any shares purchased during the first year of this Agreement if his employment is terminated for any reason during such
first year and the Option shall cease to be exercisable thirty (30) days after his termination of employment if his employment is terminated for any reason prior to the third anniversary of the Effective Date. The Option shall be substantially
in the form attached hereto as Exhibit 4(f) and shall be non-transferable prior to the third anniversary of the Effective Date and shall have a term of ten (10) years. 

 

	 	(g)	Director Compensation. The Executive shall not be entitled to any compensation or director fees for his service on the Board. 

 

	 	5.	Termination of Employment. 

  

	 	(a)	Executive’s employment shall automatically and immediately terminate upon Executive’s death. Executive’s employment may be terminated by the Company at any time because of Disability (defined below), or
for Cause (defined below), or for any reason other than Cause or Disability (“Without Cause”), by delivering notice of such termination, and may be terminated by Executive at any time for Good Reason (defined below) or for any other
reason, provided, however, Executive shall be required to give the Company at least 30 days advance written notice of any resignation, and the Company shall be required to give Executive at least 30 days advance written notice of any
termination Without Cause. The Company may, in its discretion, require Executive to cease performing services for the Company, in whole or part, during any portion of such 30 day notice period, in which event the Company will continue to pay Base
Salary, if any, and provide benefits and calculate bonuses, if any, through the end of such 30 day period. 

  
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	 	(b)	Following any termination of Executive’s employment, notwithstanding any provision to the contrary in this Agreement, the obligations of the Company to pay or provide Executive with compensation and benefits under
Section 4 shall cease as of the Termination Date, except as otherwise provided herein, and the Company shall have no further obligations to provide compensation or benefits to Executive hereunder except (i) for payment of any accrued but
unpaid Base Salary, if any, and PTO, if applicable, and unreimbursed expenses under Section 4(d) incurred through the Termination Date, (ii) for the payment of any non-deferred cash portion of any discretionary Bonus awarded in respect of
the fiscal year prior to the fiscal year in which termination of employment occurs but unpaid as of the Termination Date (which will be paid when such non-deferred cash portion of the discretionary Bonus would otherwise be payable), (iii) as
set forth in any other benefit plans, programs or arrangements applicable to terminated employees in which Executive participates, and (iv) as otherwise expressly required by applicable statute. Notwithstanding any provision to the contrary in
this Agreement (including the above provisions of this paragraph), if Executive’s employment is terminated for Cause or if Executive resigns without Good Reason, Executive shall not be entitled to receive any previously unpaid portion of the
current or any prior fiscal year’s discretionary bonus. 

  

	 	(c)	If Executive’s employment is terminated by the Company Without Cause or by Executive for Good Reason (defined below), then, in addition to the entitlements described in Section 5(b), Executive shall be
entitled to severance payments and benefits in accordance with, and subject to the terms of, the Company’s Severance Benefits Policy (whether written or unwritten) applicable to senior officers of the Company, as in effect as of the Termination
Date. For purposes of this Agreement: 

  

	 	(i)	 “Cause” means: (A) Executive’s willful misconduct in the performance of his duties for the Company that causes material
injury to the Company, (B) Executive’s conviction of, or plea of guilty or nolo contendere to, a felony (or the equivalent of a felony in a jurisdiction other than the United States), or Executive’s willfully engaging in illegal
conduct that is detrimental to the Company, (C) Executive’s material breach of Sections 7, 8 or 10 of this Agreement, (D) Executive’s willful violation of the Company’s written policies in a manner that is detrimental to the
best interests of the Company; (E) Executive’s fraud or misappropriation, embezzlement, or misuse of funds or property belonging to the Company; (F) Executive’s act of personal dishonesty that results in personal profit in
connection with Executive’s 

  
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employment with the Company; (G) Executive’s breach of fiduciary duty owed to the Company; or (H) Executive’s willful negligent of his duties, which results in the loss of a
material amount of capital of the Company or its Affiliates (the Company shall make the determination of materiality and shall promptly communicate such determination to Executive); provided, however, that Executive shall be provided a
ten (10)-day period to cure any of the events or occurrences described in the immediately preceding clauses (C) or (D) hereof, to the extent curable. For purposes hereof, no act, or failure to act, on the part of Executive shall be
considered “willful” unless it is done, or omitted to be done, by Executive in bad faith or without reasonable belief that Executive’s action or omission was in the best interests of the Company. An act, or failure to act,
based on specific authority given pursuant to a resolution or in accordance with a policy duly adopted by the Board shall be presumed to be done, or omitted to be done, by Executive in good faith and in the best interests of the Company.

  

	 	(ii)	“Disability” means Executive’s incapacity, due to mental, physical or emotional injury or illness, such that Executive is substantially unable to perform his duties hereunder for a continuous
period of ninety calendar days, or for more than a total of 85 business days during any 12 month period, subject to reasonable accommodation provisions of applicable laws. 

 

	 	(iii)	“Good Reason” means the occurrence, without Executive’s express written consent, of (A) a material diminution in Executive’s authority, duties or responsibilities; (B) in the event
that the Compensation Committee has authorized payment of Base Salary, any diminution in such Base Salary; or (C) if he Compensation Committee has made Executive a participant in any bonus plan or arrangement, any modification of the
Company’s bonus arrangement in a manner that materially reduces Executive’s reasonable opportunity to achieve such bonus, provided that the good faith exercise by the Company of negative discretion in accordance with the Company’s
bonus plan shall not constitute Good Reason. Executive shall give the Company a written notice specifying in detail the event or circumstances claimed to give rise to Good Reason within 30 days after Executive has knowledge that an event or
circumstances constituting Good Reason has occurred, and if Executive fails to provide such timely notice, then such event or circumstances will no longer constitute Good Reason. The Company shall have 30 days to cure the event or circumstances
described in such notice, and if such event or circumstances are not timely cured, then Executive must actually terminate employment within 90 days following the specified event or circumstances constituting Good Reason; otherwise, such event or
circumstances will no longer constitute Good Reason. 

  
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	 	(d)	Upon termination of Executive’s employment for any reason, and regardless of whether Executive continues as a consultant to the Company, upon the Company’s request Executive agrees to resign, as of the date of
such termination of employment or such other date requested, from the Board and any committees thereof (and, if applicable, from the board of directors (and any committees thereof) of any Affiliate of the Company) to the extent Executive is then
serving thereon. 

  

	 	(e)	The payment of any amounts accrued under any benefit plan, program or arrangement in which Executive participates shall be subject to the terms of the applicable plan, program or arrangement, and any elections Executive
has made thereunder. Subject to Section 20 and applicable laws, the Company may offset any amounts due and payable by Executive to the Company or its Subsidiaries against any amounts the Company owes Executive hereunder. 

 

	 	6.	Acknowledgments. 

  

	 	(a)	Executive acknowledges that the Company has expended and shall continue to expend substantial amounts of time, money and effort to develop business strategies, employee and customer relationships and goodwill and build
an effective organization. Executive acknowledges that Executive is and shall become familiar with the Company’s Confidential Information (as defined below), including trade secrets, and that Executive’s services are of special, unique and
extraordinary value to the Company, its Subsidiaries and Affiliates. Executive acknowledges that the Company has a legitimate business interest and right in protecting its Confidential Information, business strategies, employee and customer
relationships and goodwill, and that the Company would be seriously damaged by the disclosure of Confidential Information and the loss or deterioration of its business strategies, employee and customer relationships and goodwill. 

 

	 	(b)	Executive acknowledges (i) that the business of the Company and its Affiliates is global in scope, without geographical limitation, and capable of being performed from anywhere in the world, and
(ii) notwithstanding the jurisdiction of formation or principal office of the Company, or the location of any of their respective executives or employees (including, without limitation, Executive), it is expected that the Company and its
Affiliates will have business activities and have valuable business relationships within their respective industries throughout the world. 

  

	 	(c)	 Executive acknowledges that Executive has carefully read this Agreement and has given careful consideration to the restraints imposed upon

  
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Executive by this Agreement, and is in full accord as to the necessity of such restraints for the reasonable and proper protection of the Confidential Information, business strategies, employee
and customer relationships and goodwill of the Company and its Affiliates now existing or to be developed in the future. Executive expressly acknowledges and agrees that each and every commitment and restraint imposed by this Agreement is reasonable
with respect to subject matter, time period and geographical area, in light of (i) the scope of the business of the Company and its Affiliates, (ii) the importance of Executive to the business of the Company and its Affiliates,
(iii) Executive’s position with the Company, (iv) Executive’s knowledge of the business of the Company and its Affiliates and (v) Executive’s relationships with the Company’s clients or customers. Accordingly,
Executive agrees (x) to be bound by the provisions of Sections 7, 8, 9, 10 and 11, it being the intent and spirit that such provisions be valid and enforceable in all respects and (y) acknowledges and agrees that Executive shall not object
to the Company, (or any other intended third-party beneficiary of this Agreement) or any of their respective successors in interest enforcing Sections 7, 8, 9, 10 and 11 of this Agreement. Executive further acknowledges that although
Executive’s compliance with the covenants contained in Sections 7, 8, 9, 10, and 11 may prevent Executive from earning a livelihood in a business similar to the business of the Company, Executive’s experience and capabilities are such that
Executive has other opportunities to earn a livelihood and adequate means of support for Executive and Executive’s dependents. 

  

	 	7.	Noncompetition and Nonsolicitation. 

  

	 	(a)	Executive agrees that Executive shall not, directly or indirectly, whether by Executive, through an Affiliate or in partnership or conjunction with, or as an employee, officer, director, manager, member, owner,
consultant or agent of, any other Person: 

  

	 	(i)	while an employee of the Company and during the same number of months as the Executive is provided severance pursuant to the Company Severance Guidelines, engage, directly or indirectly, in activities or businesses
(including without limitation by owning any interest in, managing, controlling, participating in, consulting with, advising, rendering services for, or in any manner engaging in the business of owning, operating or managing any business) within the
United States (including its territories or possessions), and/or other territories (in which the Company, its Affiliates or Subsidiaries conduct business as of the Termination Date) that competes in the United States and/or such other territories
with the Company, its Subsidiaries or Affiliates (“Competitive Activities”) or any business that acquires all or substantially all of the assets of, or is otherwise a successor to, the Company (an “Other Employing
Entity”); 

  
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	 	(ii)	while an employee of the Company and during the period ending on the eighteen (18) month anniversary of Executive’s Termination Date, solicit, entice, encourage or intentionally influence, or attempt to
solicit, entice, encourage or influence, any employee of, or other Person who performs services for the Company, any Other Employing Entity or any of their respective Affiliates or Subsidiaries to resign or leave the employ or engagement of the
Company or any of their respective Affiliates or otherwise hire, employ, engage or contract any such employee or Person, or any other Person who provided services to the Company or any of their respective Affiliates during the six (6) months
prior to such hiring, employment, engagement or contracting, to perform services other than for the benefit of the Company, any Other Employing Entity or any of their respective Affiliates or Subsidiaries; 

 

	 	(iii)	while an employee of the Company and during the period ending on the 18 month anniversary of Executive’s Termination Date, solicit, entice, encourage, influence, accept payment from, or provide services to, or
attempt to solicit, entice, encourage, influence or accept payment from, or assist any other Person, firm or corporation, directly or indirectly, in the solicitation of or providing services to, any Client (as defined below) or any Prospective
Client (as defined below), for the direct or indirect benefit of any competitor of the Company, any Other Employing Entity or any of their respective Affiliates or Subsidiaries, in each case other than in the fulfillment of Executive’s duties
to the Company; 

  

	 	(iv)	while an employee of the Company and during the period ending on the 18 month anniversary of Executive’s date of termination of employment, directly or indirectly request or advise any Client or Prospective Client
to alter, reduce, terminate, withdraw, curtail, or cancel the Client’s or Prospective Client’s business with the Company, any Other Employing Entity or any of their respective Affiliates or Subsidiaries, in each case other than in the
fulfillment of Executive’s duties to the Company; or 

  

	 	(v)	 while an employee of the Company and during the period ending on the 18 month anniversary of Executive’s Termination Date, solicit any agents,
advisors, independent contractors or consultants of the Company, any Other Employing Entity or any of their respective Affiliates or Subsidiaries who are under contract or doing business with the Company, any Other Employing Entity or any of their
respective Affiliates or Subsidiaries to terminate, 

  
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reduce or divert business with or from the Company, any Other Employing Entity or any of their respective Affiliates or Subsidiaries. 

 

	 	(vi)	For purposes of this Agreement, “Client” means a Person to whom the Company, its Subsidiaries or Affiliates sold goods or provided services, and with whom Executive had substantial contacts, dealings or
client relationship responsibilities (either directly or through supervising other employees who had such responsibilities) on behalf of the Company, its Subsidiaries or its Affiliates, at any time while Executive is employed by the Company (the
“Look Back Period”) (but if Executive is not employed by the Company at the time of any activity described in Section 7(a)(iii) and 7(a)(iv), then the Look Back Period will not be longer than one (1) year prior to
Executive’s last day of employment), provided, however, a Client does not include any Person who became a client of the Company, its Affiliates or Subsidiaries both (A) as a result of a professional or social relationship that Executive
developed with such Person before becoming employed by the Company or any of its Affiliates, and (B) without investment or assistance by the Company; and “Prospective Client” shall mean those Persons (X) that the Company
is actively soliciting or undertaken meaningful efforts to solicit; and (Y) with whom Executive has met or with respect to which Executive has obtained Confidential Information in the course of or as a result of his performance of his duties to
the Company. 

  

	 	(b)	Notwithstanding Section 7(a), it shall not constitute a violation of Section 7(a) for Executive to hold not more than two percent (2%) of the outstanding securities of any class of any publicly-traded
securities of a company that is engaged in Competitive Activities. 

  

	 	(c)	The restrictive periods set forth in the Section 7(a) shall be deemed automatically extended by any period in which Executive is in violation of any of the provisions of Section 7(a), to the extent permitted
by law. 

  

	 	(d)	If a final and non-appealable judicial determination is made by a court of competent jurisdiction that any of the provisions of this Section 7 constitutes an unreasonable or otherwise unenforceable restriction
against Executive, the provisions of this Section 7 will not be rendered void but will be deemed to be modified to the minimum extent necessary to remain in force and effect for the longest period and largest geographic area that would not
constitute such an unreasonable or unenforceable restriction (and such court shall have the power to reduce the duration or restrict or redefine the geographic scope of such provision and to enforce such provision as so reduced, restricted or
redefined). 

  
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	 	(e)	Moreover, and without limiting the generality of Section 13, notwithstanding the fact that any provision of this Section 7 is determined not to be specifically enforceable, the Company will nevertheless be
entitled to recover monetary damages as a result of Executive’s breach of any such provision. 

  

	 	(f)	Nothing in this Section 7 shall in any way preclude, restrict or otherwise limit Executive from providing services to the Harbinger Entities to the extent permitted under Section 3(c), including, for the
avoidance of doubt, following his termination of employment. 

  

	 	8.	Nondisclosure of Confidential Information. 

  

	 	(a)	Executive acknowledges that the Confidential Information obtained by Executive while employed hereunder by the Company and its Affiliates is the property of the Company or its Affiliates, as applicable. Therefore,
Executive agrees that Executive shall not, whether during or after the Employment Period, disclose, share, transfer or provide access to any unauthorized Person or use for Executive’s own purposes or any unauthorized Person any Confidential
Information without the prior written consent of the Company, unless and to the extent that the aforementioned matters become generally known to and available for use by the public other than as a result of Executive’s acts or omissions in
violation of this Agreement; provided, however, that if Executive receives a request to disclose Confidential Information pursuant to a deposition, interrogation, request for information or documents in legal proceedings, subpoena,
civil investigative demand, governmental or regulatory process or similar process, (A) Executive shall, unless prohibited by law, promptly notify in writing the Company, and consult with and assist the Company in seeking a protective order or
request for other appropriate remedy, (B) in the event that such protective order or remedy is not obtained, or if the Company waives compliance with the terms hereof, Executive shall disclose only that portion of the Confidential Information
which is legally required to be disclosed and shall exercise reasonable efforts to provide that the receiving Person shall agree to treat such Confidential Information as confidential to the extent possible (and permitted under applicable law) in
respect of the applicable proceeding or process and (C) the Company shall be given an opportunity to review the Confidential Information prior to disclosure thereof. 

 

	 	(b)	 For purposes of this Agreement, “Confidential Information” means information, observations and data concerning the Company and its
Affiliates, or any of their respective present or former members, partners, directors, employees or agents, or the family members thereof, including, without limitation, all business information (whether or not in written form) which relates to any
of the foregoing Persons, or any of their respective customers, suppliers or contractors or any other third parties in 

  
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respect of which the Company or any of its Affiliates has a business relationship or owes a duty of confidentiality, or their respective businesses or products, and which is not known to the
public generally other than as a result of Executive’s breach of this Agreement, including but not limited to: investment methodologies, investment advisory contracts, fees and fee schedules; investment performance of the accounts managed by
the Company or its respective Affiliates (“Track Records”); technical information or reports; brand names, trademarks, formulas; trade secrets; unwritten knowledge and “know-how”; operating instructions; training manuals;
customer or investor lists; customer buying records and habits; product sales records and documents, and product development, marketing and sales strategies; market surveys; marketing plans; profitability analyses; product cost; analyses or plans
relating to the acquisition or development of businesses, or relating to the sale of Subsidiaries or Company assets; information relating to pricing, competitive strategies and new product development; information relating to any forms of
compensation, employee evaluations, or other personnel-related information; contracts; and supplier lists. Without limiting the foregoing, Executive agrees to keep confidential the existence of, and any information concerning, any dispute between
Executive and the Company or their respective Subsidiaries and Affiliates, except that Executive may disclose information concerning such dispute to the court or arbitrator that is considering such dispute or to their respective legal counsel
(provided that such counsel agrees not to disclose any such information other than as necessary to the prosecution or defense of such dispute). Executive acknowledges and agrees that the Track Records were the work of teams of individuals and not
any one individual and are the exclusive property of the Company and its Affiliates, and agrees that he shall in no event claim the Track Records as his own following termination of his employment for the Company. 

 

	 	(c)	Except as set forth otherwise in this Agreement, Executive agrees that Executive shall not disclose the terms of this Agreement, except to Executive’s immediate family and Executive’s financial and legal
advisors, or if previously disclosed by the Company in any public filing, or as may be required by law or ordered by a court or applicable under Section 12 of this Agreement. Executive further agrees that any disclosure to Executive’s
financial and legal advisors will only be made after such advisors acknowledge and agree to maintain the confidentiality of this Agreement and its terms. 

  

	 	(d)	Executive further agrees that Executive will not improperly use or disclose any confidential information or trade secrets, if any, of any former employers or any other Person to whom Executive has an obligation of
confidentiality, and will not bring onto the premises of the Company or its Affiliates any unpublished documents or any property belonging to any former employer or any other Person to whom Executive has an obligation of confidentiality unless
consented to in writing by the former employer or other Person. 

  
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	 	9.	Return of Property. Executive acknowledges that all notes, memoranda, specifications, devices, formulas, records, files, lists, drawings, documents, models, equipment, property, computer, software or intellectual
property relating to the businesses of the Company and its Subsidiaries and Affiliates, in whatever form (including electronic), and all copies thereof, that are received or created by Executive while employed hereunder by the Company or its
Subsidiaries or Affiliates (including but not limited to Confidential Information and Inventions (as defined below)) are and shall remain the property of the Company and its Subsidiaries and Affiliates, and Executive shall immediately return such
property to the Company upon the termination of Executive’s employment hereunder and, in any event, at the Company’s request. Executive further agrees that any property situated on the premises of, and owned by, the Company or its
Subsidiaries or Affiliates, including disks and other storage media, filing cabinets or other work areas, is subject to inspection by Company’s personnel at any time with or without notice. 

 

	 	10.	Intellectual Property Rights. 

  

	 	(a)	 Executive agrees that the results and proceeds of Executive’s employment by the Company or its Subsidiaries or Affiliates (including, but not
limited to, any trade secrets, products, services, processes, know-how, Track Record, designs, developments, innovations, analyses, drawings, reports, techniques, formulas, methods, developmental or experimental work, improvements, discoveries,
inventions, ideas, source and object codes, programs, matters of a literary, musical, dramatic or otherwise creative nature, writings and other works of authorship) resulting from, or developed in the course of, services performed by Executive for
the Company while employed by the Company and any works in progress, whether or not patentable or registrable under copyright or similar statutes, that were made, developed, conceived or reduced to practice or learned by Executive, either alone or
jointly with others (collectively, “Inventions”), shall be works-made-for-hire and the Company (or, if applicable or as directed by the Company, any of its Subsidiaries or Affiliates) shall be deemed the sole owner throughout the
universe of any and all trade secret, patent, copyright and other intellectual property rights (collectively, “Proprietary Rights”) of whatsoever nature therein, whether or not now or hereafter known, existing, contemplated,
recognized or developed, with the right to use the same in perpetuity in any manner the Company determines in its sole discretion, without any further payment to Executive whatsoever. If, for any reason, any of such results and proceeds shall not
legally be a work-made-for-hire and/or there are any Proprietary Rights which do not accrue to the Company (or, as the case may be, any of its Subsidiaries or Affiliates) under the immediately preceding sentence, then Executive hereby irrevocably
assigns and agrees to assign any and all of 

  
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Executive’s right, title and interest thereto, including any and all Proprietary Rights of whatsoever nature therein, whether or not now or hereafter known, existing, contemplated,
recognized or developed, to the Company (or, if applicable or as directed by the Company, any of its Subsidiaries or Affiliates), and the Company or such Subsidiaries or Affiliates shall have the right to use the same in perpetuity throughout the
universe in any manner determined by the Company or such Subsidiaries or Affiliates without any further payment to Executive whatsoever. As to any Invention that Executive is required to assign, Executive shall promptly and fully disclose to the
Company all information known to Executive concerning such Invention. 

  

	 	(b)	Executive agrees that, from time to time, as may be requested by the Company and at the Company’s sole cost and expense, Executive shall do any and all reasonable and lawful things that the Company may reasonably
deem useful or desirable to establish or document the Company’s exclusive ownership throughout the United States of America or any other country of any and all Proprietary Rights in any such Inventions, including the execution of appropriate
copyright and/or patent applications or assignments. To the extent Executive has any Proprietary Rights in the Inventions that cannot be assigned in the manner described above, Executive unconditionally and irrevocably waives the enforcement of such
Proprietary Rights. This Section 10(b) is subject to and shall not be deemed to limit, restrict or constitute any waiver by the Company of any Proprietary Rights of ownership to which the Company may be entitled by operation of law by virtue of
Executive’s employment by the Company. Executive further agrees that, from time to time, as may be requested by the Company and at the Company’s sole cost and expense, Executive shall assist the Company in every reasonable, proper and
lawful way to obtain and from time to time enforce Proprietary Rights relating to Inventions in any and all countries. To this end, Executive shall execute, verify and deliver such documents and perform such other acts (including appearances as a
witness) as the Company may reasonably request for use in applying for, obtaining, perfecting, evidencing, sustaining, and enforcing such Proprietary Rights and the assignment thereof. In addition, Executive shall execute, verify, and deliver
assignments of such Proprietary Rights to the Company or its designees. Executive’s obligation to provide reasonable assistance to the Company with respect to Proprietary Rights relating to such Inventions in any and all countries shall
continue beyond the termination of the Employment Period. 

  

	 	(c)	Executive hereby waives and quitclaims to the Company any and all claims, of any nature whatsoever, that Executive now or may hereafter have for infringement of any Proprietary Rights assigned hereunder to the Company.

  
 14 

	 	11.	Nondisparagement. 

  

	 	(a)	During Executive’s employment with the Company and thereafter, Executive agrees not to make, publish or communicate at any time to any person or entity, including, but not limited to, customers, clients and
investors of the Company, its Affiliates and their respective present or former members, partners, directors, employees or agents, and the family members thereof, any Disparaging (defined below) remarks, comments or statements concerning the Company
its Affiliates, or any of their respective present and former members, partners, directors, officers, employees or agents. 

  

	 	(b)	In the event (i) Executive’s employment terminates for any reason; and (ii) Executive provides the Company with an irrevocable waiver and general release in favor of the Released Parties in the
Company’s customary form that has become effective and irrevocable in accordance with its terms, the Company agrees that the members of the Board shall not make, publish, or communicate at any time to any person or entity any Disparaging
(defined below) remarks, comments or statements concerning Executive, except nothing herein shall prevent the Company from making truthful statements regarding Executive’s termination as required or, in the discretion of the Board, deemed
advisable to be made in the Company’s or any Affiliate’s public filings. 

  

	 	(c)	For the purposes of this Section 11, “Disparaging” remarks, comments or statements are those that impugn the character, honesty, integrity, morality, business acumen or abilities of the individual
or entity being disparaged. 

  

	 	(d)	Notwithstanding the foregoing, this Section 11 does not apply to (i) any truthful testimony, pleading, or sworn statements in any legal proceeding; (ii) attorney-client communications; or (iii) any
communications with a government or regulatory agency, and further, it shall not be construed to prevent Executive from filing a charge with the Equal Employment Opportunity Commission or a comparable state or local agency. 

 

	 	12.	Notification of Employment or Service Provider Relationship. Executive hereby agrees that prior to accepting employment with, or agreeing to provide services to, any other Person during any period during which
Executive remains subject to any of the covenants set forth in Section 7, Executive shall provide such prospective employer with written notice of such provisions of this Agreement, with a copy of such notice delivered to the Company not later
than seven (7) days prior to the date on which Executive is scheduled to commence such employment or engagement. 

  

	 	13.	 Remedies and Injunctive Relief. Executive acknowledges that a violation by Executive of any of the covenants contained in Section 7, 8, 9,
10 or 11 would 

  
 15 

	 	
cause irreparable damage to the Company in an amount that would be material but not readily ascertainable, and that any remedy at law (including the payment of damages) would be inadequate.
Accordingly, Executive agrees that, notwithstanding any provision of this Agreement to the contrary, the Company may be entitled (without the necessity of showing economic loss or other actual damage and without the requirement to post a bond) to
injunctive relief (including temporary restraining orders, preliminary injunctions and/or permanent injunctions) in any court of competent jurisdiction for any actual or threatened breach of any of the covenants set forth in Section 7, 8, 9, 10
or 11 in addition to any other legal or equitable remedies it may have. The preceding sentence shall not be construed as a waiver of the rights that the Company may have for damages under this Agreement or otherwise, and all of the Company’s
rights shall be unrestricted. 

  

	 	14.	Representations of Executive; Advice of Counsel. 

  

	 	(a)	Executive represents, warrants and covenants that as of the date hereof: (i) Executive has the full right, authority and capacity to enter into this Agreement and perform Executive’s obligations hereunder,
(ii) Executive is not bound by any agreement that conflicts with or prevents or restricts the full performance of Executive’s duties and obligations to the Company hereunder during or after the Employment Period and (iii) the
execution and delivery of this Agreement shall not result in any breach or violation of, or a default under, any existing obligation, commitment or agreement to which Executive is subject. 

 

	 	(b)	Prior to execution of this Agreement, Executive was advised by the Company of Executive’s right to seek independent advice from an attorney of Executive’s own selection regarding this Agreement. Executive
acknowledges that Executive has entered into this Agreement knowingly and voluntarily and with full knowledge and understanding of the provisions of this Agreement after being given the opportunity to consult with counsel. Executive further
represents that in entering into this Agreement, Executive is not relying on any statements or representations made by any of the Company’s directors, officers, employees or agents which are not expressly set forth herein, and that Executive is
relying only upon Executive’s own judgment and any advice provided by Executive’s attorney. 

  

	 	15.	 Cooperation. Executive agrees that, upon reasonable notice and without the necessity of the Company obtaining a subpoena or court order,
Executive shall provide reasonable cooperation in connection with any suit, action or proceeding (or any appeal from any suit, action or proceeding), or the decision to commence on behalf of the Company any suit, action or proceeding, and any
investigation and/or defense of any claims asserted against any of the Company’s or its Affiliates’ current or former directors, officers, employees, shareholders, partners, members, agents or representatives of any of the foregoing, which
relates to 

  
 16 

	 	
events occurring during Executive’s employment hereunder by the Company as to which Executive may have relevant information (including but not limited to furnishing relevant information and
materials to the Company or its designee and/or providing testimony at depositions and at trial), provided that with respect to such cooperation occurring following termination of the Employment Period, the Company shall reimburse Executive for
expenses reasonably incurred in connection therewith and shall schedule such cooperation to the extent reasonably practicable so as not to unreasonably interfere with Executive’s business or personal affairs. Notwithstanding anything to the
contrary, in the event the Company requests cooperation from Executive after his employment with the Company has terminated and at a time when Executive is not receiving any severance pay from the Company, Executive shall not be required to devote
more than forty (40) hours of his time per year with respect to this Section 15, except that such forty (40) hour cap shall not include or apply to any time spent testifying at a deposition or at trial, or spent testifying before or
being interviewed by any administrative or regulatory agency. 

  

	 	16.	Withholding. The Company may deduct and withhold from any amounts payable under this Agreement such Federal, state, local, non-U.S. or other taxes as are required or permitted to be withheld pursuant to any
applicable law or regulation. 

  

	 	17.	Assignment. 

  

	 	(a)	This Agreement is personal to Executive and without the prior written consent of the Company shall not be assignable by Executive, and any assignment in violation of this Agreement shall be void. 

 

	 	(b)	This Agreement shall be binding on, and shall inure to the benefit of, the parties to it and their respective heirs, legal representatives, successors and permitted assigns (including, without limitation, successors by
merger, consolidation, sale or similar transaction and in the event of Executive’s death, Executive’s estate and heirs in the case of any payments due to Executive hereunder). 

 

	 	(c)	Executive acknowledges and agrees that all of Executive’s covenants and obligations to the Company, as well as the rights of the Company hereunder, shall run in favor of and shall be enforceable by the Company and
any successor or assign to all or substantially all of the Company’s business or assets. 

  

	 	18.	 Arbitration. Any controversy, claim or dispute between the parties relating to Executive’s employment or termination of employment,
whether or not the controversy, claim or dispute arises under this Agreement (other than any controversy or claim arising under Section 7 or Section 8), shall be resolved by arbitration in New York County, New York, in accordance with the
Employment Arbitration Rules and Mediation Procedures (“Rules”) of the American Arbitration Association through a single arbitrator selected in accordance with the 

  
 17 

	 	
Rules. The decision of the arbitrator shall be rendered within thirty (30) days of the close of the arbitration hearing and shall include written findings of fact and conclusions of law
reflecting the appropriate substantive law. Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof in the State of New York. In reaching his or her decision, the arbitrator shall have no authority
(a) to authorize or require the parties to engage in discovery (provided, however, that the arbitrator may schedule the time by which the parties must exchange copies of the exhibits that, and the names of the witnesses whom, the parties intend
to present at the hearing), (b) to interpret or enforce Section 7 or Section 8 of the Agreement (for which Section 19 shall provide the sole and exclusive venue), (c) to change or modify any provision of this Agreement,
(d) to base any part of his or her decision on the common law principle of constructive termination, or (e) to award punitive damages or any other damages not measured by the prevailing party’s actual damages and may not make any
ruling, finding or award that does not conform to this Agreement. Each party shall bear all of his or its own legal fees, costs and expenses of arbitration to the fullest extent permitted by applicable law, and one-half ( 1⁄2) of the costs of the arbitrator. 

  

	 	19.	Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York, without reference to its conflict of law provisions, except that Section 18 and any
arbitration proceeding pursuant to Section 18 shall be governed by the Federal Arbitration Act (“FAA”) to the extent it is applicable and by New York law to the extent that the FAA is not applicable. Furthermore, as to
Section 7 and Section 8, Executive and the Company each agrees and consents to submit to personal jurisdiction in the state of New York in any state or federal court of competent subject matter jurisdiction situated in New York County, New
York. Executive and the Company further agree that the sole and exclusive venue for any suit arising out of, or seeking to enforce, the terms of Section 7 and Section 8 of this Agreement shall be in a state or federal court of competent
subject matter jurisdiction situated in New York County, New York. In addition, Executive and the Company waive any right to challenge in another court any judgment entered by such New York County court or to assert that any action instituted by the
Company in any such court is in the improper venue or should be transferred to a more convenient forum. Further, Executive and the Company waive any right he may otherwise have to a trial by jury in any action to enforce the terms of this
Agreement. The parties hereto irrevocably consent to the service of any and all process in any suit, action or proceeding arising out of or relating to this Agreement by the mailing of copies of such process to such party at such party’s
address specified in Section 27, or such other updated address as has been provided to the other party from time to time in accordance with Section 26. Each party shall bear its own costs and expenses (including their respective
attorneys’ fees and expenses) incurred in connection with any dispute arising out of or relating to this Agreement. 

  
 18 

	 	20.	Amendment; No Waiver; Section 409A 

  

	 	(a)	No provisions of this Agreement may be amended, modified, waived or discharged except by a written document signed by Executive and a duly authorized officer of the Company (other than Executive). 

 

	 	(b)	The failure of a party to insist upon strict adherence to any term of this Agreement on any occasion shall not be considered a waiver of such party’s rights or deprive such party of the right thereafter to insist
upon strict adherence to that term or any other term of this Agreement. No failure or delay by either party in exercising any right or power hereunder will operate as a waiver thereof, nor will any single or partial exercise of any such right or
power, or any abandonment of any steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power. 

 

	 	(c)	It is the intention of the Company and Executive that this Agreement comply with the requirements of Section 409A, and this Agreement will be interpreted in a manner intended to comply with or be exempt from
Section 409A. The Company and Executive agree to negotiate in good faith to make amendments to this Agreement as the parties mutually agree are necessary or desirable to avoid the imposition of taxes or penalties under Section 409A.
Notwithstanding the foregoing, Executive shall be solely responsible and liable for the satisfaction of all taxes and penalties that may be imposed on or for the account of Executive in connection with this Agreement (including any taxes and
penalties under Section 409A), and neither the Company nor any Affiliate shall have any obligation to indemnify or otherwise hold Executive (or any beneficiary) harmless from any or all of such taxes or penalties. 

 

	 	(d)	Notwithstanding anything in this Agreement to the contrary, in the event that Executive is deemed to be a “specified employee” within the meaning of Section 409A(a)(2)(B)(i), no payments hereunder that
are “deferred compensation” subject to Section 409A shall be made to Executive prior to the date that is six (6) months after the date of Executive’s “separation from service” (as defined in Section 409A) or,
if earlier, Executive’s date of death. Following any applicable six (6) month delay, all such delayed payments will be paid in a single lump sum on the earliest permissible payment date. For purposes of Section 409A, each of the
payments that may be made under this Agreement is designated as separate payments. 

  

	 	(e)	For purposes of this Agreement, with respect to payments of any amounts that are considered to be “deferred compensation” subject to Section 409A, references to “termination of employment” (and
substantially similar phrases) shall be interpreted and applied in a manner that is consistent with the requirements of Section 409A relating to “separation from service”. 

  
 19 

	 	(f)	To the extent that any reimbursements pursuant to Section 4(e), 4(g) or 15 are taxable to Executive, any such reimbursement payment due to Executive shall be paid to Executive as promptly as practicable, and in all
events on or before the last day of Executive’s taxable year following the taxable year in which the related expense was incurred. The reimbursements pursuant to Section 4(e), 4(g) and 15 are not subject to liquidation or exchange for
another benefit and the amount of such benefits and reimbursements that Executive receives in one taxable year shall not affect the amount of such benefits or reimbursements that Executive receives in any other taxable year. 

 

	 	21.	Indemnification. To the extent permitted by law and the Company’s governing documents and applicable insurance agreements, Company shall indemnify Executive, hold Executive harmless, and make advances for
expenses (including attorneys and costs) to Executive (subject to Executive’s providing an undertaking to repay Company that is acceptable to Company) with respect to any and all losses, claims, demands, liabilities, costs, damages, expenses
(including, without limitation, reasonable attorneys’ fees and expenses) and causes of action imposed on, incurred by, asserted against or to which Executive may otherwise become subject by reason of or in connection with any act or omission of
Executive, including any negligent act or omission, for and on behalf of Company that occurs during Executive’s employment with the Company or in connection with Executive providing cooperation to the Company as set forth in Section 15,
that Executive reasonably and in good faith believes is in furtherance of the interest of Company, unless such act or omission constitutes gross negligence or intentional misconduct or is outside of the scope of Executive’s authority, provided,
however, that this Section 21 shall not be construed to grant Executive a right to be indemnified by Company for actions or proceedings brought by Company for breach or anticipated breach of this Agreement by Executive. 

 

	 	22.	Severability. If any provision or any part thereof of this Agreement, including Sections 7, 8, 9, 10 and 11 hereof, as applied to either party or to any circumstances, shall be adjudged by a court of competent
jurisdiction to be invalid or unenforceable, the same shall in no way affect any other provision or remaining part thereof of this Agreement, which shall be given full effect without regard to the invalid or unenforceable provision or part thereof,
or the validity or enforceability of this Agreement. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to
effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the fullest extent possible. 

 

	 	23.	 Entire Agreement. This Agreement constitutes the entire agreement and understanding between the Company and Executive with respect to the
subject matter hereof and supersedes all prior agreements and understandings (whether written or oral), between Executive and the Company, relating to such subject 

  
 20 

	 	
matter. None of the parties shall be liable or bound to any other party in any manner by any representations and warranties or covenants relating to such subject matter except as specifically set
forth herein. 

  

	 	24.	Survival. The rights and obligations of the parties under the provisions of this Agreement (including without limitation, Sections 7 through 13, Section 15 and Section 21) shall survive, and remain
binding and enforceable, notwithstanding the termination of this Agreement, the termination of Executive’s employment hereunder or any settlement of the financial rights and obligations arising from Executive’s employment hereunder, to the
extent necessary to preserve the intended benefits of such provisions. 

  

	 	25.	No Construction against Drafter. No provision of this Agreement or any related document will be construed against or interpreted to the disadvantage of any party hereto by any court or other governmental or
judicial authority by reason of such party having or being deemed to have structured or drafted such provision. 

  

	 	26.	Clawback. Executive acknowledges that to the extent required by applicable law or written company policy adopted to implement the requirements of such law (including without limitation Section 304 of the
Sarbanes Oxley Act and Section 954 of the Dodd Frank Act), the Discretionary Bonus and any other incentive compensation shall be subject to any required clawback, forfeiture, recoupment or similar requirement. 

 

	 	27.	Notices. All notices or other communications required or permitted to be given hereunder shall be in writing and shall be delivered by hand or sent by facsimile or sent, postage prepaid, by registered, certified
or express mail or overnight courier service and shall be deemed given when so delivered by hand or facsimile, or if mailed, three days after mailing (one business day in the case of express mail or overnight courier service) to Executive at the
most recent address listed in Company records and to the Company at the following address (or at such other address for a party as shall be specified by like notice): 

 

			
	If to the Company:	 	Andrea Mancuso
		 	Attn: Legal Department
		 	460 Herndon Parkway, Suite 150
		 	Herndon, VA 20170

  

	 	28.	 Background Check. Upon execution, this Agreement is offer of employment that is contingent upon the completion of a background investigation
(including a drug screening, credit check, criminal history check, confirmation of prior employment, and confirmation of educational background) satisfactory to the Company in its sole discretion and the Executive providing legally required
documentation of eligibility to work in the United States (“Background Check”). Following the successful completion of the Background Check this Agreement shall be a binding agreement of the parties in accordance with its terms;
provided that, the Company may waive the requirement to obtain or complete a 

  
 21 

	 	
Background Check at any time. The Executive agrees to submit to a drug screening, to execute all documentations and take all action required in connection with the completion of the Background
Check. The Executive acknowledges that he or she is not an employee of the Company until the Employee has received notification from the Company that the Background Check has been completed to the satisfaction of the Company in its sole discretion.

  

	 	29.	Headings and References. The headings of this Agreement are inserted for convenience only and neither constitute a part of this Agreement nor affect in any way the meaning or interpretation of this Agreement.
When a reference in this Agreement is made to a Section, such reference shall be to a Section of this Agreement unless otherwise indicated. 

  

	 	30.	Counterparts. This Agreement may be executed in one or more counterparts (including via facsimile and electronic image scan (PDF), each of which shall be deemed to be an original, but all of which together shall
constitute one and the same instrument and shall become effective when one or more counterparts have been signed by each of the parties and delivered to the other parties. 

  
 22 

 EXECUTION COPY 

IN WITNESS WHEREOF. this Agreement has been duly executed by the parties as of the date first written above. 

 

			
	HC2 Holdings, Inc.
		
	By:	 	  

	Name:	 	Andrea L. Mancuso
	Title:	 	Acting General Counsel
	
	Philip A. Falcone
	
	  

 Attach: Exhibit 4(f) Form of Option 

[Signature Page to Employment Agreement]EX-10.3

 Exhibit 10.3 

THE SECURITIES REPRESENTED BY THIS INSTRUMENT OR CERTIFICATE AND ANY SECURITIES ISSUABLE UPON ITS CONVERSION HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR SECURITIES LAWS OF ANY STATE AND MAY NOT BE OFFERED, SOLD, ASSIGNED, PLEDGED, TRANSFERRED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER
THE ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE ACT OR SUCH LAWS AND, IF REQUESTED BY THE COMPANY, UPON DELIVERY OF AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT THE
PROPOSED TRANSFER IS EXEMPT FROM THE ACT OR SUCH LAWS. 
 HC2 HOLDINGS, INC. 

OPTION TO PURCHASE SHARES OF COMMON STOCK 

Date of Issuance: May 21, 2014 
 1,568,864
Shares          
 For value received, the receipt and sufficiency of which is hereby acknowledged,
this Option (this “Option”) is issued to Philip Falcone (the “Holder”), by HC2 Holdings, Inc., a Delaware corporation (together with any successor thereto, the “Company”). This Option is issued
pursuant to the terms of that certain Employment Agreement, dated as of the date hereof, between the Company and the Holder, and entitles the Holder to subscribe for and purchase from the Company, at the Exercise Price, the number of Exercise Shares
of the Common Stock of the Company, subject to vesting, exercisability and adjustment as provided herein. 
 1. Definitions.
As used herein, the following terms shall have the following respective meanings: 
 (a) “Affiliate” of any specified
Person means any other Person, directly or indirectly, controlling or controlled by or under direct or indirect common control with such specified Person. For the purposes of this definition, “control” when used with respect to any Person
means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have
meanings correlative to the foregoing. 
 (b) “Board” means the Board of Directors of the Company. 

(c) “Business Day” means any day, except a Saturday, Sunday or other day on which commercial banks in New York, New York are
authorized or obligated to close. 
 (d) “Capital Stock” shall mean, with respect to any Person, any and all shares,
interests, participations or other equivalents (however designated) of such Person’s 

  
 1 

 
capital stock or partnership, limited liability company or other equity interests at any time outstanding, and any and all rights, warrants or options exchangeable for or convertible or
exercisable into such capital stock or other interests, including any Preferred Stock. 
 (e) “Common Stock” means the
common stock, par value $0.001 per share, of the Company, and any other Capital Stock into which the Common Stock shall have been converted, exchanged or reclassified following the date and that is issuable pursuant to the terms hereof. 

(f) “Exchange Act” means the Securities Exchange Act of 1934, as amended. 

(g) “Excluded Issuance” shall mean any of the following: (i) the issuance of any shares of Common Stock or Rights
pursuant to any employee benefit plan or program, incentive compensation plan or program, executive compensation agreement or directors’ compensation program, in each case approved by the Board or a committee thereof, or pursuant to this
Option, (ii) the issuance of any shares of Common Stock upon exercise of any of the Class A Options and/or Class B Options of the Company outstanding as of the date of this Option, and (iii) the issuance of any shares of Common Stock
or Rights pursuant to a Fundamental Change Transaction. 
 (h) “Exercise Price” means $4.56 per share, subject to
adjustment pursuant to Section 9. 
 (i) “Exercise Shares” means the shares of Common Stock issuable upon
exercise of this Option, in an original amount of up to 1,568,864 shares of the Company’s Common Stock, subject to vesting and exercisability restrictions and adjustment pursuant to the terms herein, including but not limited to adjustment
pursuant to Section 9 below. 
 (j) “Fair Market Value” means, with respect to the Common Stock or any other
security or property as of any date of determination, the fair market value thereof as determined in good faith by the Company, in accordance with the following rules: 

(i) for Common Stock or any other security listed or admitted to trading on a national securities exchange for at least ten
(10) consecutive Trading Days immediately preceding such date of determination, the Fair Market Value will be the volume-weighted average price of such security for the ten (10) consecutive Trading Days immediately preceding such date of
determination as reported by Bloomberg, L.P.; 
 (ii) for any security that is not listed or admitted to trading on any national securities
exchange for at least ten (10) consecutive Trading Days immediately preceding such date of determination or the Fair Market Value of which cannot be determined in accordance with clause (i) above, the Fair Market Value of such security
shall be its fair market value as of such date of determination as reasonably determined by the Board in good faith on the basis of such information as it considers appropriate; or 

(iii) for any other property, the Fair Market Value shall be as reasonably determined by the Board in good faith on the basis of such
information as it considers appropriate, including an estimation of the fair market value of such property assuming a willing buyer and a willing seller in an arms’-length transaction. 

  
 2 

 (k) “Fundamental Change Transaction” means the occurrence of any of the
following: (i) any Person or group of related Persons for purposes of Section 13(d) of the Exchange Act (a “Group”), other than one or more Principal Stockholders, has, directly or indirectly, become the “beneficial
owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act) of more than 50% of the total voting power of all shares of Capital Stock of the Company that are entitled to vote generally in the election of directors; (ii) any merger,
consolidation, stock or asset purchase, recapitalization or other business combination transaction (or series of related transactions) as a result of which any Person or Group, other than one or more Principal Stockholders, is or becomes the
“beneficial owner” (as defined above) of more than 50% of the total voting power of all shares of Capital Stock that are entitled to vote generally in the election of directors of the entity surviving or resulting from such transaction
(and, if such surviving or resulting entity is a subsidiary of a parent Person, the ultimate parent thereof); (iii) the sale, transfer or disposition, including but not limited to any spin-off or in-kind distribution, of all or substantially
all of the assets of the Company (on a consolidated basis) to any Person or Group (other than the Company or one or more of its wholly-owned subsidiaries or one or more Principal Stockholders), or (iv) the dissolution, liquidation or winding up
of the Company. 
 (l) “Harbinger Persons” means, collectively, Philip Falcone, Harbinger Group Inc., HGI Funding, LLC,
Harbinger Capital Partners Master Fund I, Ltd., Harbinger Capital Partners LLC, Harbinger Holdings, LLC, Harbinger Capital Partners Special Situations Fund, L.P., Harbinger Capital Partners Special Situations GP, LLC, Global Opportunities Breakaway
Ltd. and Harbinger Capital Partners II LP. 
 (m) “Person” means any individual, corporation, partnership, joint venture,
association, joint-stock company, limited liability company, trust, unincorporated organization, government or any agency or political subdivision thereof or any other entity. 

(n) “Piggyback Registration” means a proposed registration by the Company of any shares of its securities under the Act
(other than a registration effected solely to implement an employee benefit plan or a transaction to which Rule 145 of the Act is applicable, or pursuant to a Registration Statement on Form S-4, S-8 or any successor form thereto or another form not
available for registering the issued or issuable Exercise Shares for sale to the public), whether for its own account or for the account of one or more stockholders of the Company, and the form of registration statement to be used may be used for
any registration of issued or issuable Exercise Shares. 
 (o) “Preferred Stock” as applied to the Capital Stock of any
corporation means Capital Stock of any class or classes (however designated) that by its terms is preferred as to the payment of dividends, or as to the distribution of assets upon any voluntary or involuntary liquidation or dissolution of such
corporation, over shares of Capital Stock of any other class of such corporation. 

  
 3 

 (p) “Principal Stockholders” means (i) any of the Harbinger Persons and
their respective Affiliates, (ii) any investment fund or vehicle managed, sponsored or advised by any of the Harbinger Persons or any Affiliate thereof, and any Affiliate of or successor to any such investment fund or vehicle; and
(iii) any limited or general partners of, or other investors in, any of the Harbinger Persons or any Affiliate thereof, or any such investment fund or vehicle. 

(q) “Record Date” shall mean, with respect to any dividend, distribution or other transaction or event in which the holders
of Common Stock have the right to receive any cash, securities, assets or other property or in which the Common Stock is exchanged for or converted into any combination of cash, securities or other property, the date fixed for determination of
stockholders entitled to receive such cash, securities, assets or other property (whether such date is fixed by the Board or by statute, contract or otherwise). 

(r) “Trading Day” means (i) if the Common Stock is traded on a national securities exchange, a day on which the Common
Stock is traded on the principal securities exchange on which the Common Stock is then listed or admitted to trading, or (ii) if the Common Stock is not listed on a national securities exchange, a Business Day. 

2. Purchase of Shares. 

(a) Exercise Shares and Exercise Price. Subject to the terms and conditions set forth herein, including the vesting schedule for the
Option set forth in Section 2(b), the Holder shall be entitled, at any time and from time to time, to exercise this Option in whole or in part to purchase Exercise Shares at the Exercise Price; provided, however, that if
and to the extent it is determined that any Consent is required in connection with the exercise of this Option, in whole or in part, pursuant to Section 6(b) hereof, this Option (or portion thereof that is the subject of such required
Consent) shall be unexercisable pending the making or delivery of such Consent in accordance with Section 6(b). The term “Option” as used herein shall be deemed to include any options issued upon transfer or partial
exercise of this Option unless the context clearly requires otherwise. 
 (b) Vesting of Exercise Shares. Except as otherwise
provided in Section 9(c) with respect to accelerated vesting of unvested tranches of this Option in connection with a Fundamental Change Transaction, this Option shall become vested in three (3) equal installments on each of
(i) the issuance date set forth above and (ii) the first and second anniversaries of the issuance date set forth above, subject in the case of clause (ii) above to the continuous employment of the Holder with the Company as of the
applicable vesting date. 
 3. Exercise Period. This Option shall be exercisable, in whole or in part but subject to the
vesting and exercisability conditions set forth herein, during the term commencing on the date of issuance set forth above and ending on May 20, 2024, after which date it shall be null and void. 

  
 4 

 4. Method of Exercise. 

(a) Vested and exercisable rights represented by this Option may be exercised during the exercise period set forth in Section 3
by: 
 (i) the delivery to the Company of a duly executed copy of the Notice of Exercise attached hereto, directed to the attention of the
Secretary of the Company at its principal office (or at such other place as the Company shall notify the Holder in writing); and 
 (ii)
except in connection with a Net Exercise (as defined below) pursuant to Section 5, the payment to the Company by wire transfer to an account designated by the Company of an amount equal to the aggregate Exercise Price for the number of
Exercise Shares being purchased. 
 (b) Each exercise, in whole or in part, of this Option shall be deemed to have been effected
immediately prior to the close of business on the day on which this Option is exercised as provided in Section 4(a). At such time, the Person or Persons in whose name or names any certificate for the Exercise Shares shall be issuable
upon such exercise as provided in Section 4(c) shall be deemed to have become the holder or holders of record of the Exercise Shares represented by such certificate. 

(c) As soon as reasonably practicable after the exercise of this Option, in whole or in part, the Company at its expense will cause to be
issued in the name of, and delivered to, the Holder, or as the Holder may direct: 
 (i) a certificate or certificates (with appropriate
restrictive legends) for the number of Exercise Shares to which the Holder shall be entitled in such denominations as may be requested by the Holder; and 

(ii) in case such exercise is in part only, a new option or options of like tenor, for the aggregate number of Exercise Shares equal to the
number of Exercise Shares described in this Option minus the number of such Exercise Shares purchased by the Holder upon all exercises made in accordance with Section 4(a) or Section 5. 

(d) Notwithstanding any other provisions hereof, if an exercise of any portion of this Option is to be made in connection with the
consummation of a Piggyback Registration or a Fundamental Change Transaction, the exercise of any portion of this Option may, at the election of the Holder hereof, be conditioned upon the consummation of the Public Offering or Fundamental Change
Transaction, in which case such exercise shall not be deemed to be effective until immediately prior to the consummation of such transaction. 

(e) Exercised Exercise Shares shall be deducted from the earliest vesting tranches of this Option, to the extent available. 

  
 5 

 5. Net Exercise. In lieu of exercising this Option for cash, the Holder may elect
to receive, without the payment by the Holder of any additional consideration, Common Stock equal to the value of this Option (or the portion thereof being exercised) (a “Net Exercise”). Upon a Net Exercise, the Holder shall have
the rights described in Sections 4(b) and 4(c), and the Company shall issue to the Holder a number of shares of Common Stock computed using the following formula: 

 

									
		 	X	 	=	 	 Y (A - B) 	  	
		 	 	 	       A	  	

 Where: 
  

			
	X =	  	The number of shares of Common Stock to be issued to the Holder.
		
	Y =	  	The number of Exercise Shares purchasable under this Option or, if only a portion of the Option is being exercised, the portion of the Option being exercised (at the date of such calculation).
		
	A =	  	The Fair Market Value of one (1) share of Common Stock (at the date of such calculation).
		
	B =	  	The Exercise Price (as adjusted to the date of such calculation).

 6. Regulatory Requirements. 

(a) Hart-Scott-Rodino. If any filing or notification becomes necessary pursuant to the Hart-Scott-Rodino Antitrust Improvements Act of
1976, as amended (the “HSR Act”), based upon the planned exercise of this Option or any portion hereof, the Holder shall notify the Company of such requirement, and the Holder and the Company shall file with the proper authorities
all forms and other documents necessary to be filed pursuant to the HSR Act as promptly as possible and shall cooperate with each other in promptly producing such additional information as those authorities may reasonably require to allow early
termination of the notice period provided by the HSR Act or as otherwise necessary to comply with requirements of the Federal Trade Commission or the Department of Justice. The Holder and the Company agree to cooperate with each other in connection
with such filings and notifications, and to keep each other informed of the status of the proceedings and communications with the relevant authorities. 

(b) Other Regulatory Requirements. If the Holder or the Company determines that the exercise of this Option would require prior notice
to, a filing with, or the consent, approval or order by, the Federal Communications Commission or any other federal, state or local regulatory agency or other governmental entity that is vested with jurisdiction over the Company (each, a
“Consent”), the Holder and the Company shall have made or received all necessary Consents, to the reasonable satisfaction of both parties, prior to effecting the exercise of this Option. 

7. Representations, Warranties and Covenants of the Company. In connection with the transactions provided for herein, the
Company hereby represents and warrants and covenants and agrees, as applicable, to the Holder that: 
 (a) Organization; Authority.
The Company is duly incorporated, validly existing and in good standing under the laws of the State of Delaware, with the requisite corporate power and authority to own and use its properties and assets and to carry on its business and to execute
and deliver this Option and to consummate the transactions contemplated hereby. The Company is not in violation of, nor will the consummation of the transactions contemplated by this Option violate, any provisions of the certificate of incorporation
or by-laws of the Company. 

  
 6 

 (b) Authorization; Enforceability. The execution and delivery of this Option by the
Company and the consummation by it of the transactions contemplated hereby have been duly authorized by all necessary action on the part of the Company and no further consent or action with respect thereto is required by the Company or its Board or
stockholders. This Option has been duly executed and delivered by the Company and is a valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as such enforceability may be limited by general
principles of equity or to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies. 

(c) Valid Issuance of Common Stock. The Common Stock of the Company issuable upon exercise of this Option has been duly authorized and
when issued upon exercise in accordance with this Option will be validly issued, fully paid and nonassessable. None of the Common Stock of the Company issuable upon exercise of this Option will be issued in violation of any preemptive or other
similar rights of any securityholder of the Company. 
 (d) Reservation of Shares. The Company covenants and agrees that during the
period within which the rights represented by this Option may be exercised, the Company will at all times have authorized and reserved, for the purpose of issue or transfer upon exercise of this Option, a sufficient number of shares of authorized
but unissued Common Stock of the Company, when and as required to provide for the exercise of the rights represented by this Option. The Company will take all such action as may be necessary to assure that such Common Stock may be validly issued as
provided herein without violation of any applicable law or regulation. 
 (e) Piggyback Registration. Whenever the Company proposes
to register any shares of its securities by means of a Piggyback Registration, the Company shall give prompt written notice (in any event no later than thirty (30) days prior to the filing of the applicable registration statement) to the Holder
of its intention to effect such a Piggyback Registration and will, subject to customary provisions for the priority of registered securities, afford such Holder the opportunity to include its registrable and issued or issuable Exercise Shares in the
registration statement, to the extent the Holder has provided to the Company a written request (the “Registration Election”) for inclusion of such registrable Exercise Shares within fifteen (15) days after the Company’s
notice has been given to the Holder, as well as a duly executed copy of a Notice of Exercise with respect to any Exercise Shares issuable upon exercise of this Option to be included in the applicable Piggyback Registration, specifying the number of
such Exercise Shares to be so included. The Company may postpone or withdraw the filing or the effectiveness of a Piggyback Registration at any time in its sole discretion. 

8. Representations and Warranties of the Holder. In connection with the transactions provided for herein, the Holder
hereby represents and warrants to the Company that: 
 (a) Authority. The Holder has the requisite legal capacity and authority to
execute and deliver this Option and to consummate the transactions contemplated hereby. 

  
 7 

 (b) Enforceability. This Option has been duly executed and delivered by the Holder and is
a valid and binding obligation of the Holder, enforceable against the Holder in accordance with its terms, except as such enforceability may be limited by general principles of equity or to applicable bankruptcy, insolvency, reorganization,
moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies. 

(c) Investment Intent. The Holder is a financially sophisticated institutional investor and is an “accredited investor” (as
defined in Rule 501 of Regulation D under the Act) that is experienced in financial matters and is acquiring this Option and any Exercise Shares issuable upon exercise of this Option for his own account for investment and with no present
intention of, or view to, distributing this Option or any Exercise Shares issuable upon exercise of this Option except in compliance with the Act, but without prejudice to the Holder’s right at all times to sell or otherwise dispose of all or
any part of this Option or any Exercise Shares issuable upon exercise of this Option under a registration statement filed under the Act, or in a transaction exempt from the registration requirements of the Act, including a transaction pursuant to
Rule 144 under the Act. 
 (d) Legends. The Holder acknowledges that, to the extent applicable, each certificate evidencing Exercise
Shares issued upon exercise of this Option shall be endorsed with the legend substantially in the form set forth below, as well as any additional legend imposed or required by applicable state securities laws: 

THE SECURITIES REPRESENTED BY THIS INSTRUMENT OR CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“ACT”), OR SECURITIES LAWS OF ANY STATE AND MAY NOT BE OFFERED, SOLD, ASSIGNED, PLEDGED, TRANSFERRED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS
OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE ACT OR SUCH LAWS AND, IF REQUESTED BY HC2 HOLDINGS, INC., OR ANY SUCCESSOR THERETO (THE “COMPANY”), UPON DELIVERY OF AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO
THE COMPANY THAT THE PROPOSED TRANSFER IS EXEMPT FROM THE ACT OR SUCH LAWS. 
 9. Adjustment of Exercise Price and Number of
Exercise Shares. The Exercise Price of this Option and the number of Exercise Shares issuable upon the exercise of this Option shall be adjusted from time to time as set forth in this Section 9. 

(a) Non-Dilutive Issuances. In case the Company shall, from and after the date of this Option and during the originally stated term
hereof, issue, sell or grant to any 

  
 8 

 
Person, whether directly or by assumption in a merger or otherwise (but other than any Excluded Issuance), (i) rights, warrants, options, exchangeable securities or convertible securities
entitling such Person to subscribe for, purchase or otherwise acquire shares of the Company’s capital stock (each referred to herein as “Rights”) for consideration per share at least equal to the Fair Market Value thereof
determined as of the Trading Day immediately prior to such issuance, sale or grant or below such Fair Market Value (but other than in respect of a transaction that would require an adjustment to the Option pursuant to Section 9(b)
hereof), or (ii) shares of the Company’s capital stock for consideration per share at least equal to the Fair Market Value thereof on the Trading Day immediately prior to such issuance, sale or grant or below such Fair Market Value (but
other than in respect of a transaction that would require an adjustment to the Option pursuant to Section 9(b) hereof), then the Company shall issue to Holder an additional option in respect of such number of shares of Common Stock as
shall be necessary, after taking into account all shares of the Company’s capital stock issuable in respect of any such Rights and all shares of the Company’s capital stock issued, granted or sold as is required to allow Holder to have the
opportunity, in the aggregate (taking into account all prior issuances upon any exercise thereof), pursuant to this Option, such newly issued option or any other option previously issued pursuant to this Section 9(a) to purchase a number
of shares of Common Stock to acquire or have acquired shares of Common Stock representing the same percentage of the fully diluted ownership interest in the Company this Option represented on the grant date hereof (or such percentage that this
Option and each other option previously issued under this Section 9(a) represented immediately following any adjustment affected pursuant to Section 9(b) hereof or any corresponding provision of any subsequently granted
option). The exercise price per share in respect of any shares of Common Stock subject to any option granted pursuant to this Section 9(a) shall be the Fair Market Value thereof determined as of the Trading Day immediately prior to the
date of grant of such option. The remaining terms and conditions of any option granted under this Section 9(a) shall be the same as apply to this Option, except that any such additional option shall become exercisable in three
installments, one-third on the date of grant and one-third on each of the first and second anniversaries of the date of grant. Notwithstanding the immediately preceding provisions of this Section 9(a), no option shall be granted to
Holder under Section 9(a) in connection with a distribution of “poison pill” rights pursuant to a stockholder rights plan so long as the Company shall, in lieu of granting any such option pursuant to this
Section 9(a), make proper provision so that the Holder upon the exercise of this Option after the Record Date for such distribution and prior to the expiration or redemption of all such Rights shall be entitled to receive upon such
exercise, in addition to the shares of Common Stock issuable upon such exercise, such number of Rights that would have been issued on account of such shares of Common Stock if such shares had been outstanding at the time such Rights were
distributed. The grant of any additional option pursuant to this Section 9(a) shall be effective on the same date as the issuance of the shares or any Rights in respect of shares which requires the grant of such additional option under
this Section 9(a). 
 (b) Corporate Transactions. In case (i) the Company shall hereafter pay a dividend or make a
distribution to all holders of the outstanding Common Stock in shares of Common Stock, (ii) the outstanding shares of Common Stock shall be subdivided into a greater number of shares of Common Stock, or combined into a smaller number of shares
of Common Stock, (iii) the Company shall, by dividend or otherwise, distribute to all holders of Common Stock shares of any class of Capital Stock of the Company, debt securities, assets or 

  
 9 

 
other property of the Company, (iv) the Company shall make an extraordinary cash dividend to all holders of Common Stock or (v) the Company shall engage in any other transaction that
would constitute a corporate transaction within the meaning of Section 424 of the Internal Revenue Code of 1986, as amended, or any successor statute thereto (“Code Section 424”), the number of shares of Common Stock to be
received by the Holder and the Exercise Price payable upon exercise of this Option shall be appropriately adjusted in a manner that would satisfy the requirements of Code Section 424 (without regard to the requirement that an eligible
corporation be the employer of the optionee) if the Option were a statutory stock option. 
 (c) Fundamental Change Transaction. If,
at any time while any portion of this Option is outstanding there occurs a Fundamental Change Transaction, then (i) as of immediately prior to the occurrence of such Fundamental Change Transaction, this Option shall be deemed fully vested, and
(ii) the Holder, from and after the occurrence of such Fundamental Change Transaction, shall have the right upon exercise of all or any portion of this Option (and payment of the applicable Exercise Price) to receive (but only out of legally
available funds, to the extent required by applicable law) the kind and amount of stock, other securities, cash and/or assets (the “Alternate Consideration”) that the Holder would have received if this Option (or portion thereof
being exercised) had been exercised pursuant to the terms hereof immediately prior to such Fundamental Change Transaction (assuming for this purpose that the Holder did not exercise any applicable rights of election, if any, as to the kind or amount
of stock, securities, cash, assets or other property receivable upon such Fundamental Change Transaction). For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate
Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Change Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in a
reasonable manner reflecting the relative value of any different components of the Alternate Consideration, but in all events in accordance with the requirements of Code Section 424. Any successor to the Company or surviving Person in such
Fundamental Change Transaction shall issue to the Holder a new option substantially in the form of this Option and consistent with the foregoing provisions and evidencing the Holder’s right to purchase the Alternate Consideration for the
aggregate Exercise Price upon exercise thereof and, upon such issuance, this Option shall be automatically cancelled and shall cease to be of further force or effect. The terms of any agreement pursuant to which a Fundamental Change Transaction is
effected shall include terms requiring any such successor or surviving Person to comply with the foregoing provisions. 
 (d)
Calculations. The number of shares of Common Stock outstanding at any given time shall not include shares owned or held by or for the account of the Company. No adjustment need be made for: 

(i) any Excluded Issuances; 

(ii) a change in the par value of the Common Stock; or 

(iii) any event for which an adjustment has already been provided under any subsection of this Section 9; provided,
however, that if any event occurs that would result in an adjustment under more than one subsection of this Section 9, the subsection that results in the most favorable adjustment to the Holder shall control. 

  
 10 

 To the extent this Option becomes exercisable into cash, no adjustment need be made thereafter as to the cash.
Interest will not accrue on the cash. Any adjustments to the number of Exercise Shares hereunder shall be apportioned among the three vesting tranches of the Option as nearly equal as possible. 

(e) Form of Option After Adjustment. Except as otherwise provided in Section 9(c), the form of this Option need not be
changed because of any adjustments in the Exercise Price or the number of Exercise Shares issuable upon exercise of this Option, and Options theretofore or thereafter issued may continue to express the same price and number and kind of shares as are
stated in this Option, as initially issued. 
 10. No Fractional Shares. No fractional shares of Common Stock shall be issued
in connection with any exercise hereunder, but in lieu of such fractional shares the Company shall, at its sole option, (a) round up such fraction to the nearest whole number of shares of Common Stock or (b) make a cash payment therefor
based on the Fair Market Value thereof. 
 11. Notices to Holder. Upon any adjustment of the number of Exercise Shares
issuable upon exercise of this Option or the Exercise Price of this Option, including any adjustment pursuant to Section 9, the Company, within twenty (20) calendar days thereafter, shall prepare and deliver, or cause to be prepared
and delivered, to the Holder a certificate signed by an officer setting forth the event giving rise to such adjustment, such Exercise Price and the number of Exercise Shares (as divided into each vesting tranche of the Option) after such adjustment
and setting forth in reasonable detail the method of calculation and the facts upon which such adjustment was made, which certificate shall be conclusive evidence of the correctness of the matters set forth therein. Where appropriate, such notice
may be given in advance and included as a part of the notice required to be mailed under the other provisions of this Section 11. In the event of: 

(a) any taking by the Company of a record of the holders of any class of securities for the purpose of determining the holders thereof who
are entitled to receive any dividend or other distribution, or any right to subscribe for, purchase or otherwise acquire any shares of Capital Stock of any class or any other securities or property, or to receive any other right; or 

(b) any Fundamental Change Transaction; or 

(c) any proposed issue or grant by the Company of any shares of Capital Stock of any class or any other securities, or any right or option to
subscribe for, purchase or otherwise acquire any shares of Capital Stock of any class or any other securities, in each case if such issuance or grant is reasonably likely to be at a price below the Fair Market Value of the applicable securities and
other than any Excluded Issuance, 
 then, and in each such event, the Company shall cause written notice to be provided to the Holder of, respectively,
(i) the date on which any such record is to be taken for the purpose of 

  
 11 

 
such dividend, distribution or right, and stating the amount and character of such dividend, distribution or right, (ii) the date on which any such Fundamental Change Transaction is
anticipated to take place, and the time, if any is to be fixed, as of which the holders of record of Common Stock (or other securities) shall be entitled to exchange their shares of Common Stock (or other securities) for securities or other property
deliverable on such Fundamental Change Transaction and (iii) the amount and character of any Capital Stock or other securities, or rights or options with respect thereto, proposed to be issued or granted, the date of such proposed issue or
grant and the Persons or class of Persons to whom such proposed issue or grant is to be offered or made. Such notice shall be delivered by the Company as set forth above as soon as reasonably practicable prior to the date specified in such notice on
which any such action is to be taken; provided, however, that in no event shall the Company be required to deliver such notice (x) more than ten (10) Business Days prior to such specified date or (y) prior to the time
the Company publicly discloses or is required by law (if required by law) to publicly disclose such event. Failure to give such notice shall not affect the validity of any action taken in connection therewith. 

12. No Stockholder Rights. Prior to exercise of this Option, the Holder shall not be entitled to any rights of a
stockholder with respect to the Exercise Shares, including (without limitation) the right to vote such Exercise Shares, receive dividends or other distributions thereon, exercise preemptive rights or be notified of stockholder meetings, and, except
as otherwise provided in this Option, such Holder shall not be entitled to any stockholder notice or other communication concerning the business or affairs of the Company. 

13. Transfer of Vested Portions of Option. Subject to compliance with applicable federal and state securities laws and
any other contractual restrictions between the Company and the Holder contained herein, vested portions of this Option and all rights hereunder with respect thereto are transferable, in whole or in part, by the Holder upon prior written consent of
the Company, not to be unreasonably withheld, conditioned or delayed, and upon receipt of an assignment agreement in form and substance satisfactory to the Company, pursuant to which the transferee will agree to be bound by the terms and conditions
of this Option. Any such transfer shall be recorded on the books of the Company upon the surrender of this Option, properly endorsed, to the Company at its principal offices, and the payment to the Company of all transfer taxes and other
governmental charges imposed on such transfer. In the event of a partial transfer, the Company shall issue to the new holders one or more appropriate new options. 

14. Governing Law. This Option shall be governed by and construed in accordance with the laws of the State of New York,
without giving effect to any choice or conflict of law provision or rule (whether of the State of New York or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of New York. 

15. Submission to Jurisdiction. Any legal suit, action or proceeding arising out of or based upon this Option or the
transactions contemplated hereby may be instituted in the federal courts of the United States of America or the courts of the State of New York in each case located in the city of New York, and each party irrevocably submits to the exclusive
jurisdiction of such courts in any such suit, action or proceeding. Service of process, summons, notice or other document by certified or registered mail to such party’s address set forth herein

  
 12 

 
shall be effective service of process for any suit, action or other proceeding brought in any such court. The parties irrevocably and unconditionally waive any objection to the laying of venue of
any suit, action or any proceeding in such courts and irrevocably waive and agree not to plead or claim in any such court that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum. 

16. Waiver of Jury Trial. Each party acknowledges and agrees that any controversy which may arise under this Option is
likely to involve complicated and difficult issues and, therefore, each such party irrevocably and unconditionally waives any right it may have to a trial by jury in respect of any legal action arising out of or relating to this Option or the
transactions contemplated hereby. 
 17. Successors and Assigns. The terms and provisions of this Option shall inure to
the benefit of, and be binding upon, the Company and the Holder and their respective successors and permitted assigns. This Option shall be binding upon any Person succeeding the Company by merger, consolidation or acquisition of all or
substantially all of the Company’s assets. 
 18. Headings. Headings and subheadings in this Option are for
convenience and identification only and are in no way intended to describe, interpret, define or limit the scope, extent or intent of this Option or any provision hereof. 

19. Notices. All notices, requests, claims, demands and other communications hereunder shall be in writing and shall be
delivered personally, by commercial overnight courier, or by facsimile, directed to the addresses set forth below. Notices and other communications are deemed properly given as follows: (a) if delivered personally, on the date delivered,
(b) if delivered by a commercial overnight courier, one (1) Business Day after such notice is sent, and (c) if delivered by facsimile, on the date of transmission, with confirmation of transmission. 

If to the Company, at: 
 HC2
Holdings, Inc. 
 460 Herndon Parkway, Suite 150 

Herndon, VA 20170 
 Attn: Andrea
Mancuso, Acting General Counsel 
 Fax: (703) 650-4295 

If to the Holder, at: 
 Philip
Falcone 
 450 Park Avenue, 30th Floor 

New York, NY 10022 
 Fax:
212-339-5101 

  
 13 

 with a copy (which shall not constitute notice) to: 

Lawrence Cagney 

Debevoise & Plimpton LLP 

919 Third Avenue 
 New York, New
York 10022 
 Phone:  212-909-6909 

Fax:      212-521-7909 

or at such other address as may be substituted by notice given as herein provided. 

20. Entire Agreement; Amendments and Waivers. This Option and the documents delivered pursuant hereto constitute the
entire agreement, and supersede all other prior agreements and understandings, both written and oral, between the parties with respect to the subject matter hereof. Any provision of this Option may be amended or waived if, and only if, such
amendment or waiver is in writing and signed. No waiver by any party shall operate or be construed as a waiver in respect of any failure, breach or default not expressly identified by such written waiver. No failure or delay on the part of any party
in exercising any right, power or remedy hereunder shall operate as a suspension or waiver thereof, nor shall any single or partial exercise of any such right, power or remedy preclude any other or further exercise thereof or the exercise of any
other right, power or remedy hereunder. 
 21. Severability. Any term or provision of this Option which is invalid or
unenforceable in any jurisdiction shall, as to that jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions of this Option in any other
jurisdiction. If any provision of this Option is so broad as to be unenforceable, such provision shall be interpreted to be only so broad as is enforceable. 

22. Issue Tax. The issuance of certificates for Exercise Shares upon the exercise of this Option shall be made without
charge to the Holder of this Option for any issue tax in respect thereof; provided, however, that the Company shall not be required to pay any tax which may be payable in respect of any transfer involved in the issuance and delivery of
any certificate in a name other than that of the then holder of this Option being exercised. 
 23. Third-Party
Beneficiaries. Nothing in this Option shall be construed to give to any Person other than the Company and the Holder any legal or equitable right, remedy or claim under this Option, and this Option shall be for the sole and exclusive benefit
of the Company and the Holder. 
 24. Counterparts. This Option may be executed in any number of counterparts
(including by facsimile or portable document format (PDF) signatures) and each of such counterparts shall for all purposes be deemed to be an original, and such counterparts shall together constitute but one and the same instrument. 

25. Headings. The headings of sections of this Option have been inserted for convenience of reference only, are not to be
considered a part hereof and in no way modify or restrict any of the terms or provisions hereof. 

  
 14 

 26. Remedies. Each party stipulates that the remedies at law of the other
party in the event of any default or threatened default in the performance of or compliance with any of the terms of this Option are not and will not be adequate, and that such terms may be specifically enforced by a decree for the specific
performance of any agreement contained herein or by an injunction against a violation of any terms hereof or otherwise. The remedies herein provided are in addition to and not exclusive of any other remedies provided at law or in equity. 

[Signature appears on next page] 

  
 15 

 IN WITNESS WHEREOF, the parties hereto have caused this Option to be executed as of the date
first set forth above. 
  

			
	HC2 HOLDINGS, INC.
		
	By:	 	  

	Name:	 	Andrea L. Mancuso
	Title:	 	Acting General Counsel
	
	PHILIP FALCONE
	
	  

 Signature Page to Option 

 NOTICE OF EXERCISE 

HC2 HOLDINGS, INC. 
 (1) The undersigned
hereby elects to (check one box only): 
  ̈ purchase
                 shares of the Common Stock (as defined in the Option) of HC2 Holdings, Inc. (together with any successor thereto, the “Company”)
pursuant to the terms of the Option, dated as of May 20, 2014 (the “Option”), between the Company and the Holder (as defined therein) thereof, and tenders herewith payment of the Exercise Price (as defined in the Option) in
full for such Exercise Shares (as defined in the Option), together with any applicable transfer taxes with respect thereto. 
  ̈ purchase the number of shares of Common Stock of the Company by Net Exercise (as defined in the Option) pursuant to the terms of the Option as shall be issuable upon Net Exercise of the portion of the
Option relating to                  Exercise Shares. 

(2) Please issue a certificate or certificates representing said shares of Common Stock in the name of the undersigned or in such other
name as is specified below: 
  

					
	  
	 		 	
	(Name)	 		 	
		
	  
	 	
	(Address)	 		 	

  

									
		 		 		 	HOLDER:
					
	Date:	 	  
	 		 	By:	 	  

		 		 		 	Name:	 	
		 		 		 	Title:

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