Document:

Exhibit
10.1

 

PERSONAL
EMPLOYMENT AGREEMENT

 

THIS PERSONAL
EMPLOYMENT AGREEMENT (the "Agreement") is made and entered into this  January 8, 2015
by and between LabStyle Innovation Ltd., a company incorporated under the laws of the State of Israel, with
its offices at Halamish 9, Cesarea Industrial Park, 38900, Israel (the "Company"), and Zvi Ben-David (Israeli
I.D. No. [                     ]) residing at 11 Koifman Yechezkel St. Haifa 34780 (the "Employee").

 

WHEREAS,the
Company wishes to employ the Employee, and the Employee wishes to be employed by the Company, as of the Commencement Date (as
such term is defined hereunder); and

 

WHEREAS,the
parties hereto desire to state the terms and conditions of the Employee's employment by the Company, as set forth below.

 

NOW, THEREFORE,
in consideration of the mutual premises, covenants and other agreements contained herein, the parties hereby agree as follows:

 

General

 

1.          Position.
The Employee shall serve in the position described in Exhibit A attached hereto. In such position the Employee shall
report regularly and shall be subject to the direction and control of the Company's management and specifically under the direction
of the person specified in Exhibit A. The employee shall also serve as an officer of Company’s parent company,
Labstyle Innovations Corp. a Delaware corporation (the “Parent”)and in such capacity, shall be subject to the
direction and control of the Parent’s management and board of directors. The Employee shall perform his duties diligently,
conscientiously and in furtherance of the Company's and Parent’s best interests. The Employee agrees and undertakes to inform
the Company and the Parent, immediately after becoming aware of any matter that may in any way raise a conflict of interest between
the Employee and the Company. During his employment by the Company and/or Parent. During his employment by the Company, the Employee
shall not receive any payment, compensation or benefit from any third party in connection, directly or indirectly, with his position
in the Company and/or Parent.

 

2.          Part-Time
Employment. The Employee will be employed on a part-time basis, 80% of a full time position commencing on the Effective date.
The exact working days and hours shall be coordinated with the CEO of the Company. The Employee shall devote at least 80% of his
entire business time and attention to the business of the Company and shall not undertake or accept any other paid or unpaid employment
or occupation or engage in any other business activity, except with the prior written consent of the Company and following approval
by the Parent, as detailed in the attached appendix (“Permitted Engagements”. The Employee’s weekly rest
day shall be Friday, Saturday, unless otherwise determined by the Company in a notice to the Employee. Employee should attend
office 4 times a week on average.

 

3.          Location.
The Employee shall perform his duties hereunder at the Company's facilities in Israel, but he understands and agrees that his
position may involve significant domestic and international travel.

 

4.          Employee's
Representations and Warranties. The Employee represents and warrants that the execution and delivery of this Agreement and
the fulfillment of its terms: (i) will not constitute a default under or conflict with any agreement or other instrument to which
he is a party or by which he is bound; and (ii) do not require the consent of any person or entity. Further, with respect to any
past engagement of the Employee with third parties and with respect to any Permitted Engagements of the Employee with any third
party during the term of his engagement with the Company and/or Parent (for purposes hereof, such third parties shall be referred
to as "Other Employers"), the Employee represents, warrants and undertakes that: (a) his engagement with the
Company and/or Parent is and/or will not be in breach of any of his undertakings toward Other Employers, and (b) he will not disclose
to the Company and/or Parent, nor use, in provision of any services to the Company and/or Parent any proprietary or confidential
information belonging to any Other Employer.

 

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Term
of Employment

 

5.          Term.
The Employee's employment by the Company shall commence on the date set forth in Exhibit A (the "Commencement
Date"), and shall continue until it is terminated pursuant to the terms set forth herein.

 

6.          Termination
at Will. Either party may terminate the employment relationship hereunder at any time, , by giving the other party a prior
written notice as set forth in Exhibit A (the "Notice Period"). Notwithstanding the Notice Period
provided under Exhibit A, it is hereby agreed that, if, pursuant to a decision of the Company’s Board of Directors, the
Company has reached the “zone of insolvency”, then the Employee shall be entitled to a Notice Period pursuant to the
terms of applicable law. The Employee acknowledges and agrees that he has been given ample opportunity to consider the aforesaid
waiver and further acknowledges that the Salary (as defined in 10(b) below includes due consideration for such waiver. Notwithstanding
the foregoing, the Company is entitled to terminate this Agreement with immediate effect upon a written notice to Employee and
to pay the Employee a one time amount equal to the Salary that would have been paid to the Employee during the Notice Period,
in lieu of such prior notice.

 

The
Company and Employee agree and acknowledge that the Company’s Severance Contribution to the Insurance Scheme in accordance
with Section 11 below, shall, provided contribution is made in full, be instead of severance payment to which the Employee (or
his beneficiaries) is entitled with respect to the Salary upon which such contributions were made and for the period in which
they were made (the "Exempt Salary"), pursuant to Section 14 of the Severance Pay Law 5723 – 1963 (the
"Severance Law"). The parties hereby adopt the General Approval of the Minister of Labor and Welfare, which is
attached hereto as Exhibit C. The Company hereby forfeits any right it may have in the reimbursement of sums paid
by Company into the Insurance Scheme, except: (i) in the event that Employee withdraws such sums from the Insurance Scheme, other
than in the event of death, disability or retirement at the age of 60 or more; or (ii) upon the occurrence of any of the events
provided for in Sections 16 and 17 of the Severance Law. Nothing in this Agreement shall derogate from the Employee’s rights
to severance payment in accordance with the Severance Law or agreement or applicable ministerial order including the General Approval
of the Minister of Labor and Welfare, as set forth in this Section 6, in the event contributions to the Insurance Scheme in accordance
with Section 11 below have not been made in full.

 

7.          Termination
for Cause. The Company may immediately terminate the employment relationship for Cause, and such termination shall be effective
as of the time of notice of the same. "Cause" means herein (a) conviction of any felony by the Employee involving
moral turpitude affecting the Company or its affiliates or any crime involving fraud; (b) action taken by the Employee intentionally
to materially harm the Company or its affiliates; (c) embezzlement of funds of the Company or its affiliates by the Employee;
(d) falsification of Company's or its affiliates' records or reports by the Employee; (e) ownership by the Employee, direct or
indirect, of an interest in a person or entity (other than a minority interest in a publicly traded company) in competition with
the products or services of the Company or its affiliates, including those products or services contemplated in a plan adopted
by the Company or its affiliates; (f) any material breach of the Employee's fiduciary duties or duties of care to the Company
(except for conduct taken in good faith) which, to the extent such breach is curable, has not been cured by Employee within fifteen
(15) days after its receipt of notice thereof from Company containing a description of the breach or breaches alleged to have
occurred; (g) any material breach of the Proprietary Information, Assignment of Inventions and Non-Competition Agreement attached
as Exhibit B by the Employee; and (i) any other act or omission that constitutes "cause" under the laws
of the State of Israel. In the event of termination for Cause, the Employee’s entitlement to severance pay will be subject
to Sections 16 and 17 of the Severance Law.

 

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8.          Notice
Period; End of Relations. During the Notice Period and unless otherwise determined by the Company in a written notice to the
Employee, the employment relationship hereunder shall remain in full force and effect, the Employee shall be obligated to continue
to discharge and perform all of his duties and obligations with Company, and the Employee shall cooperate with the Company and
assist the Company with the integration into the Company of the person who will assume the Employee's responsibilities.

 

Covenants

 

9.          Proprietary
Information; Assignment of Inventions and Non-Competition. Upon the execution of this Agreement, the Employee will execute
the Company's Proprietary Information, Assignment of Inventions and Non-Competition Agreement attached hereto as Exhibit
B. Exhibit B hereto shall survive the expiration or other termination of this Agreement.

 

Salary
and Additional Compensation; Insurance

 

10.         
(a)          Special Agreement: It is agreed between the parties hereto
that this Agreement is a personal agreement, and that the position the Employee is to hold within the Company is a senior position
which requires a special measure of personal trust, as such terms are defined in the Working and Rest Law 5711-1951, as amended
(the “Law”). The provisions of any collective bargaining agreement which exist of shall exist do not, and will
not, apply to the employment of the Employee, whether such agreement was signed among the government, the General Federation of
Labor and Employers organizations, or any such parties, or whether signed by others, in relation to the field or fields of the
business of the Company or in relation to the position held by or the profession of the Employee. In light of this relationship
of trust, the provisions of the Law, or any other law which may apply, will not apply to the performance by the Employee of his
duties hereunder. Thus, the Employee may be required, from time to time and according to the work load demanded of him, to work
beyond the working hours and the Employee shall not be entitled to any further compenstation other than as specificed in this
Agreement and the Appendices hereto.

 

(b)
Salary. The Company shall pay to the Employee as compensation for the employment services an aggregate monthly base salary
in the amount set forth in Exhibit A (the "Salary"). In addition, the Company shall pay the Employee
for any and all daily travel costs to which he may be entitled under any applicable law. Except as specifically set forth herein,
the Salary includes any and all payments to which the Employee is entitled from the Company hereunder and under any applicable
law, regulation or agreement. The Employee’s Salary and other terms of employment may be reviewed and updated by the Company’s
management, from time to time, at the Company’s discretion. The Salary is to be paid to the Employee no later than the 9th
day of each calendar month after the month for which the Salary is paid, after deduction of applicable taxes and like payments.

 

(c)
Special Compensation for Non-Competition Obligations. The Employee acknowledges that 5% of the Salary is paid as special
supplementary monthly compensation in consideration for the Employee's non-competition undertakings and obligations set forth
in Exhibit B hereto (the 25% of the "Additional Compensation"). The Employee warrants and represents
that the Special Non-Competition Monthly Compensation constitutes a real, appropriate and full consideration to any prejudice
he may suffer due to his non-competition undertakings and obligations set forth in Exhibit B hereto, including but
not limited to restriction of his freedom of employment.

 

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11.         Insurance
and Social Benefits. The Company will insure the Employee under a "Manager's Insurance Policy" ("Bituach
Menahalim") ("Policy") or a Pension Fund ("Pension Fund"), to be selected by the Employee.
At the end of each month during the employment of Employee, the Company shall pay an aggregate amount equal to 13.33% of the Salary
for the preceding month to the Policy or 14.33% of the Salary for the preceding month to the Pension Fund (the "Company's
Contribution"), as follows: (a) 8.33% for severance pay component; and (b)for savings and risk component, either (i)in
the case of a Policy, 5%, subject to deduction of 5% from the Salary by the Employee, as detailed below; or (ii)in the
case of a Pension Fund, 6%, subject to deduction of 5% from the Salary, as detailed below.  In addition, if the Employee
shall elect a Policy, the Company shall pay up to 2.5% of the Salary towards loss of working capacity disability insurance (depending
on the cost to the Company necessary to provide coverage) to be purchased by the Company. The Employee agrees that the Company
shall deduct from the Salary an amount equal to 5% or 5% of the Salary for the preceding month, and shall pay such amount as premium
payable in respect for savings and risk component of the Policy or the Pension Fund, as the case may be (the "Employee's
Contributions").  If the Employee elects to be insured under a combination of the Policy and Pension Plan, the Employee
may determine the allocation between the two, provided that, in any event the Company's contributions
will not exceed the maximum amounts set forth above.

 

Additionally,
the Company together with the Employee will maintain an advanced study fund ("Keren Hishtalmut") and the Employee
and the Company shall contribute to such fund an amount equal to 2.5% (two percent and one half of a percent) of the Salary and
7.5% (seven percent and one half of a percent) of the Salary, respectively. All of the Employee's aforementioned contributions
shall be transferred to the above referred to plans and funds by the Company by deducting such amounts from each monthly Salary
payment. Any tax results for payments made for amounts greater than the maximum amount exempt from tax under applicable laws will
bear upon the employee.

 

Additional
Benefits

 

12.         Expenses.
The Company will reimburse the Employee for business expenses borne by the Employee, provided that such expenses were approved
in advance by the Company, and against valid invoices therefore furnished by the Employee to the Company, all in accordance with
the Company's policy as amended from time to time.

 

13.         Vacation.
The Employee shall be entitled to the number of vacation days per year as set forth in Exhibit A, as coordinated
with the Company (with unused days to be accumulated up to the limit set pursuant to applicable law).

 

14.         Sick
Leave; Convalescence Pay. The Employee shall be entitled to that number of paid sick leave per year as set forth in Exhibit
A (with unused days to be accumulated up to the limit set pursuant to applicable law), and also to Convalescence Pay ("Dmei
Havra'a") pursuant to applicable law.

 

15.         Mobile
Phone. During the term of this Agreement the Company may provide the Employee with a Company's mobile phone, for use in connection
with Employee's duties hereunder, pursuant to Company's policy, as adopted, as may be amended from time to time by the Company.
The Company shall bear all expenses relating to the Employee’s use and maintenance of the phone attributed to the Employee
under this Section. 

 

16.         Company
Car. Should the employee choose, the Company will provide the Employee with the option to lease a car, of make and model pursuant
to Company's car leasing policy, as adopted, as may be amended from time to time by the Company (the "Car").
The Car shall belong to or be leased by the Company and shall be registered in the Company’s name for use by the Employee
during the period of his employment with the Company. The Car will be returned to the Company by the Employee immediately after
termination of the Employee's employment by the Company. Use by the Employee of the Car shall be made at all times only in accordance
with the provisions of the Company's Car policy, as may be amended from time to time by the Company. The Company shall bear all
the fixed and variable costs of the Car, including licenses, insurance, gasoline, regular maintenance and repairs. The Company
shall not, at any time, bear the costs of any tickets, traffic offense or fines of any kind and insurance self-participation payment.
The Employee shall bear all the personal tax consequences of the allocation of the Car to his benefit. Any expenses, payments
or other benefits that are made in connection with the Car shall not be regarded as part of the Salary, for any purpose or matter,
and no social benefits or other payments shall be paid on its account. Should the employee choose to participate in such leasing
program, this benefit shall replace the employee’s entitlement to travel expenses according to law. Without derogating from
the terms of the Car Leasing policy, it is hereby clarified that the leasing amount shall be deducted from the employees total
compensation Salary (Base plus Additional Compensation – as laid out in Exhibit A) and that the salary after such deduction
will be the basis for salary-basis entitlements.

 

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17. Bonus
and Compensation Review. Based on the performance of the Company, the Company will evaluate initiating a Bonus Plan. The Bonus
Plan will be reviewed and approved by the Compensation Committee. In addition, the Company will review the total compensation
salary of the employee from time to time (currently once a year).

 

Miscellaneous

 

18.         The
laws of the State of Israel shall apply to this Agreement and the sole and exclusive place of jurisdiction in any matter arising
out of or in connection with this Agreement shall be the Tel-Aviv Regional Labor Court. The provisions of this Agreement are in
lieu of the provisions of any collective bargaining agreement, and therefore, no collective bargaining agreement shall apply with
respect to the relationship between the parties hereto (subject to the applicable provisions of law). No failure, delay or forbearance
of either party in exercising any power or right hereunder shall in any way restrict or diminish such party's rights and powers
under this Agreement, or operate as a waiver of any breach or nonperformance by either party of any terms or conditions hereof.
In the event it shall be determined under any applicable law that a certain provision set forth in this Agreement is invalid or
unenforceable, such determination shall not affect the remaining provisions of this Agreement, unless the business purpose of
this Agreement is substantially frustrated thereby. The preface and exhibits to this Agreement constitute an integral and indivisible
part hereof. This Agreement constitutes the entire understanding and agreement between the parties hereto, supersedes any and
all prior discussions, agreements and correspondence with regard to the subject matter hereof, and may not be amended, modified
or supplemented in any respect, except by a subsequent writing executed by both parties hereto. The Employee acknowledges and
confirms that all terms of the Employee's employment are personal and confidential, and undertake to keep such terms in confidence
and refrain from disclosing such terms to any third party. All references to applicable law are deemed to include all applicable
and relevant laws and ordinances and all regulations and orders promulgated there under, unless the context otherwise requires.
The parties agree that this Agreement constitutes, among others, notification in accordance with the Notice to Employees (Employment
Terms) Law, 2002. Nothing in this Agreement shall derogate from the Employee’s rights according to any applicable law, extension
order, collective agreement or other agreement with respect to the terms of Employee’s employment.

 

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IN WITNESS
WHEREOF the parties hereto have signed this Agreement as of the date first hereinabove set forth.

 

	/s/ Erez Raphael	 	 	/s/ Zvi Ben David	 
	 	 	 	 	 
	LabStyle Innovation Ltd.	 	Zvi Ben David
	By:        Erez Raphael	 	 
	Title:     CEO	 	 

 

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Exhibit A

 

To the Personal
Employment Agreement by and between

LabStyle
Innovation Ltd. and the Employee whose name is set forth herein

 

	1.	Name of Employee:	Zvi Ben David
	 	 	 
	2.	I.D. No. of Employee:	[          ]
	 	 	 
	3.	Address of Employee:	[          ]
	 	 	 
	4.	80% Position in the Company:	CFO
	 	 	 
	5.	Under the Direct Direction of	CEO
	 	 	 
	6.	Commencement Date:	January 8, 2015
	 	 	 
	7.	Notice Period:	90 days
	 	 	 
	8.	Total Compensation Salary	(39,000NIS for 100% position)
	 	Base & Additional Compensation	31,200NIS for 80% position
	 	 	 
	9.	Base Salary	(31,200 for 100% position)
	 	 	24,960 for 80% position
	 	 	 
	8.	Additional Compensation::	(7,800NIS for 100% position)
	 	 	6,240NIS for 80% position
	 	 	 
	10.	Vacation Days Per Year:	(22 days for 100% position)
	 	 	17.5 days for 80% position
	 	 	 
	11.	Sick Leave Days Per Year:	The Employee should be entitled to fully paid sick
    leave pursuant to applicable sick law.

 

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Exhibit B

 

To the Personal
Employment Agreement by and between

LabStyle
Innovation Ltd. and the Employee whose name is set forth herein

 

	Name
        of Employee:

         
	Zvi Ben David
	I.D.
        No. of Employee:

         
	[           ]
	Date:	January 8, 2015 (the "Commencement Date")

 

General

		1.	Capitalized
                                         terms herein shall have the meanings ascribed to them in the Agreement to which this
                                         Exhibit is attached (the "Agreement").
                                         For purposes of any undertaking of the Employee toward the Company, the term "Company"
                                         shall include any parent company, subsidiaries and affiliates of the Company and Parent.
                                         The Employee's obligations and representations and the Company's rights under this Exhibit
                                         shall apply as of the Commencement Date, regardless of the date of execution of the Agreement.

 

Confidentiality;
Proprietary Information

		2.	"Proprietary
                                         Information" means confidential and proprietary information concerning the
                                         business and financial activities of the Company, including, without limitation, patents,
                                         patent applications, trademarks, copyrights and other intellectual property, and information
                                         relating to the same, technologies and products (actual or planned), know how, inventions,
                                         research and development activities, inventions, trade secrets and industrial secrets,
                                         and also confidential commercial information such as investments, investors, employees,
                                         customers, suppliers, marketing plans, etc., all the above - whether documentary, written,
                                         oral or computer generated. Proprietary Information shall also include information of
                                         the same nature which the Company may obtain or receive from third parties.

 

		3.	Proprietary
                                         Information shall be deemed to include any and all proprietary information disclosed
                                         by or on behalf of the Company and irrespective of form but excluding information that
                                         (i) was known to Employee prior to Employee's association with the Company, as evidenced
                                         by written records; (ii) is or shall become part of the public knowledge except as a
                                         result of the breach of the Agreement or this Exhibit by Employee; (iii) reflects general
                                         skills and experience; or (iv) reflects information and data generally known in the industries
                                         or trades in which the Company operates.

 

		4.	Employee
                                         recognizes that the Company received and will receive confidential or proprietary information
                                         from third parties, subject to a duty on the Company's part to maintain the confidentiality
                                         of such information and to use it only for certain limited purposes. In connection with
                                         such duties, such information shall be deemed Proprietary Information hereunder, mutatis
                                         mutandis.

 

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		5.	Employee
                                         agrees that all Proprietary Information, and patents, trademarks, copyrights and other
                                         intellectual property and ownership rights in connection therewith shall be the sole
                                         property of the Company and its assigns. At all times, both during the employment relationship
                                         and after the termination of the engagement between the parties, Employee will keep in
                                         confidence and trust all Proprietary Information, and will not use or disclose any Proprietary
                                         Information or anything relating to it without the written consent of the Company, except
                                         as may be necessary in the ordinary course of performing Employee's duties under the
                                         Agreement.

 

		6.	Upon
                                         termination of Employee's engagement with the Company, Employee will promptly deliver
                                         to the Company all documents and materials of any nature pertaining to Employee's engagement
                                         with the Company, and will not take with him any documents or materials or copies thereof
                                         containing any Proprietary Information.

 

		7.	Employee's
                                         undertakings set forth in Section 1 through Section 6 shall remain in full force and
                                         effect after termination of the Agreement or any renewal thereof.

 

Disclosure
and Assignment of Inventions

		8.	"Inventions"
                                         means any and all inventions, improvements, designs, concepts, techniques, methods, systems,
                                         processes, know how, computer software programs, databases, mask works and trade secrets,
                                         whether or not patentable, copyrightable or protectable as trade secrets; "Company
                                         Inventions" means any Inventions that are made or conceived or first reduced
                                         to practice or created by Employee, whether alone or jointly with others, during the
                                         period of Employee's engagement with the Company, and which are: (i) developed using
                                         equipment, supplies, facilities or Proprietary Information of the Company, (ii) result
                                         from work performed by Employee for the Company, or (iii) related to the field of business
                                         of the Company, or to current or anticipated research and development.

 

		9.	Employee
                                         hereby confirms that all rights that he may have had at any time in any and all Company's
                                         Inventions, are and have been from inception in the sole ownership of the Company, including
                                         during the process of its incorporation. If ever any doubt shall arise as to the Company’s
                                         rights or title in any Invention and it shall be asserted that the Employee, allegedly,
                                         is the owner of any such rights or title, then Employee hereby irrevocably transfer and
                                         assign in whole to the Company without any further royalty or payment any and all rights,
                                         title and interest in any and all Inventions. Employee has listed below in this Section
                                         9 a complete list of all Inventions to which he claim ownerships (the "Prior
                                         Inventions") and that he desires to remove from the operation of this Agreement,
                                         and acknowledges and agrees that such list is complete. If no such list is attached to
                                         this Agreement, Employee represents that he has no such Inventions at the time of signing
                                         this Agreements. The Prior Inventions, if any, patented or unpatented, are excluded from
                                         the scope of this Agreement. If, in the course of employment with the Company, Employee
                                         incorporates a Prior Invention into a Company product, process or machine, the Company
                                         is hereby granted and shall have a nonexclusive, royalty-free, irrevocable, perpetual,
                                         worldwide license (with rights to sublicense through multiple tiers of sublicensees)
                                         to make, have made, modify, use and sell such Prior Invention. Notwithstanding the foregoing,
                                         Employee agrees that he will not incorporate, or permit to be incorporated, Prior Inventions
                                         in any Company Inventions without the Company's prior written consent. Employee hereby
                                         represents and undertakes that none of his previous employers or any entity with whom
                                         he was engaged, has any rights in the Inventions or Prior Inventions and such employment
                                         with the Company will not grant any of them any right in the results of the Employee’s
                                         work.

 

Prior
Inventions: [fill-in,
if any.]

 

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	None.
	 

 

		10.	Employee
                                         undertakes and covenants he will promptly disclose in confidence to the Company all Inventions
                                         deemed as Company Inventions. The Employee agrees and undertakes not to disclose to the
                                         Company any confidential information of any third party and, in the framework of his
                                         employment by the Company, not to make any use of any intellectual property rights of
                                         any third party.

 

		11.	Employee
                                         hereby irrevocably transfers and assigns to the Company all worldwide patents, patent
                                         applications, copyrights, mask works, trade secrets and other intellectual property rights
                                         in any Company Invention, and any and all moral rights that he may have in or with respect
                                         to any Company Invention. For the removal of any doubt, it is hereby clarified that the
                                         provisions concerning assignment of Inventions contained in Section 8 and this Section
                                         ‎11 will apply also
                                         to any "Service Inventions" as defined in the Israeli Patent Law, 1967 (the
                                         "Patent Law").
                                         However, in no event will such Service Invention become the property of the Employee
                                         and the provisions contained in Section 132(b) of the Patent Law shall not apply unless
                                         the Company provides in writing otherwise. The Employee will not be entitled to royalties
                                         or other payment with regard to any Prior Inventions, Company Inventions, Service Inventions
                                         or any of the intellectual property rights set forth above, including any commercialization
                                         of such Prior Inventions, Company Inventions, Service Inventions or other intellectual
                                         property rights. The Employee irrevocably confirms that the consideration explicitly
                                         set forth in the employment agreement is in lieu of any rights for compensation that
                                         may arise in connection with the Inventions under applicable law and the employee hereby
                                         expressly and irrevocably confirms that the provisions contained in Section 134 of the
                                         Patent Law shall not apply and he waives any right to claim royalties or other consideration
                                         with respect to any Invention.

 

		12.	Employee
                                         agrees to assist the Company, at the Company's expense, in every proper way to obtain
                                         for the Company and enforce patents, copyrights, mask work rights, and other legal protections
                                         for the Company Inventions in any and all countries. Employee will execute any documents
                                         that the Company may reasonably request for use in obtaining or enforcing such patents,
                                         copyrights, mask work rights, trade secrets and other legal protections. Such obligation
                                         shall continue beyond the termination of Employee's engagement with the Company. Employee
                                         hereby irrevocably designates and appoints the Company and its authorized officers and
                                         agents as Employee's agent and attorney in fact, coupled with an interest to act for
                                         and on Employee's behalf and in Employee's stead to execute and file any document needed
                                         to apply for or prosecute any patent, copyright, trademark, trade secret, any applications
                                         regarding same or any other right or protection relating to any Proprietary Information
                                         (including Company Inventions), and to do all other lawfully permitted acts to further
                                         the prosecution and issuance of patents, copyrights, trademarks, trade secrets or any
                                         other right or protection relating to any Proprietary Information (including Company
                                         Inventions), with the same legal force and effect as if executed by Employee himself.

 

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Non-Competition

		13.	In
                                         consideration of Employee's terms of employment hereunder, which include special compensation
                                         for his undertakings under this Section 13 and the following Section 14, and in order
                                         to enable the Company to effectively protect its Proprietary Information, Employee agrees
                                         and undertakes that he will not, so long as the Agreement is in effect and for a period
                                         of twelve (12) months following termination of the Agreement, for any reason whatsoever,
                                         directly or indirectly, in any capacity whatsoever, engage in, become financially interested
                                         in, be employed by, or have any connection with any business or venture that is engaged
                                         in any activities competing with the activities of the Company. Employee hereby acknowledges
                                         and agrees that the Salary and social benefits to which the Employee is or shall be entitled
                                         to, if any, as set forth in the Agreement, is set to a level which reflects adequate
                                         compensation sufficient to reimburse prejudice, if any, including but not limited to
                                         any of Employee's legitimate rights and interests. Employee further warrants and represents
                                         that the Special Non-Competition Monthly Compensation (as defined in the Agreement) constitutes
                                         a real, appropriate and full consideration to any prejudice Employee may suffer due to
                                         his non-competition undertakings and obligations set forth in this Exhibit, including
                                         but not limited to restriction of his freedom of employment.

 

		14.	Employee
                                         agrees and undertakes that during the employment relationship and for a period of twelve
                                         (12) months following termination of this engagement for whatever reason, Employee will
                                         not, directly or indirectly, including personally or in any business in which Employee
                                         may be an officer, director or shareholder, solicit for employment any person who is
                                         employed by the Company, or any person retained by the Company as a consultant, advisor
                                         or the like who is subject to an undertaking towards the Company to refrain from engagement
                                         in activities competing with the activities of the Company (for purposes hereof, a "Consultant"),
                                         or was retained as an employee or a Consultant during the six months preceding termination
                                         of Employee's employment with the Company.

 

Reasonableness
of Protective Covenants

		15.	Insofar
                                         as the protective covenants set forth in this Exhibit are concerned, Employee specifically
                                         acknowledges, stipulates and agrees as follows: (i) the protective covenants are reasonable
                                         and necessary to protect the goodwill, property and Proprietary Information of the Company,
                                         and the operations and business of the Company; and (ii) the time duration of the protective
                                         covenants is reasonable and necessary to protect the goodwill and the operations and
                                         business of Company, and does not impose a greater restrain than is necessary to protect
                                         the goodwill or other business interests of the Company. Nevertheless, if any of the
                                         restrictions set forth in this Exhibit is found by a court having jurisdiction to be
                                         unreasonable or overly-broad as to geographic area, scope or time or to be otherwise
                                         unenforceable, the parties hereto intend for the restrictions set forth in this Exhibit
                                         to be reformed, modified and redefined by such court so as to be reasonable and enforceable
                                         and, as so modified by such court, to be fully enforced.

 

		16.	Employee
                                         hereby consents to the Company’s notification of any third party, including any
                                         prospective or new employer of, Employee’s rights and/or obligations under this
                                         Agreement.

 

    	| Page 11

    	 

    

 

Remedies
for Breach

		17.	Employee
                                         acknowledges that the legal remedies for breach of the provisions of this Exhibit may
                                         be found inadequate and therefore agrees that, in addition to all of the remedies available
                                         to Company in the event of a breach or a threatened breach of any of such provisions,
                                         the Company may also, in addition to any other remedies which may be available under
                                         applicable law, obtain temporary, preliminary and permanent injunctions against any and
                                         all such actions.

 

Intent
of Parties

		18.	Employee
                                         recognizes and agrees: (i) that this Exhibit is necessary and essential to protect the
                                         business of Company and to realize and derive all the benefits, rights and expectations
                                         of conducting Company’s business; (ii) that the area and duration of the protective
                                         covenants contained herein are in all things reasonable; and (iii) that good and valuable
                                         consideration exists under the Agreement, for Employee's agreement to be bound by the
                                         provisions of this Exhibit.

 

		19.	It
                                         is expressly acknowledged and agreed that the Parent is intend to be and shall be a third
                                         party beneficiary of this Exhibit and shall have the right to enforce this Exhibit against
                                         the Employee.

 

IN WITNESS
WHEREOF the Employee has signed this Agreement as of the date first hereinabove set forth.

 

	/s/ Zvi Ben David	 
	 	 

 

    	| Page 12

    	 

    

 

Exhibit
C

 

GENERAL
APPROVAL REGARDING PAYMENTS BY EMPLOYERS TO A PENSION FUND AND INSURANCE FUND IN LIEU OF SEVERANCE PAY UNDER THE SEVERANCE PAY
LAW, 5723-1963

 

 

    	| Page 13

    	 

    

 

Appendix 1

 

Permitted Engagements

 

Shareholder and
part time executive at Biflow Medical Ltd.

 

    	| Page 14EX-4.1

 Exhibit 4.1 

CARBONITE, INC. 
 and

 AMERICAN STOCK TRANSFER & TRUST COMPANY, LLC, as Rights Agent 

 
  

RIGHTS AGREEMENT 
 Dated
as of January 9, 2015 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page
Number	 
	 Section 1.
	 	Definitions	  	 	1	  
			
	 Section 2.
	 	Appointment of Rights Agent	  	 	6	  
			
	 Section 3.
	 	Issue of Right Certificates	  	 	7	  
			
	 Section 4.
	 	Form of Right Certificates	  	 	8	  
			
	 Section 5.
	 	Countersignature and Registration	  	 	9	  
			
	 Section 6.
	 	Transfer, Split Up, Combination and Exchange of Right Certificates; Mutilated, Destroyed, Lost or Stolen Right Certificates	  	 	10	  
			
	 Section 7.
	 	Exercise of Rights; Purchase Price; Expiration Date of Rights	  	 	11	  
			
	 Section 8.
	 	Cancellation and Destruction of Right Certificates	  	 	13	  
			
	 Section 9.
	 	Availability of Preferred Shares	  	 	13	  
			
	 Section 10.
	 	Preferred Shares Record Date	  	 	14	  
			
	 Section 11.
	 	Adjustment of Purchase Price, Number of Shares or Number of Rights	  	 	14	  
			
	 Section 12.
	 	Certificate of Adjusted Purchase Price or Number of Shares	  	 	21	  
			
	 Section 13.
	 	Consolidation, Merger or Sale or Transfer of Assets or Earning Power	  	 	21	  
			
	 Section 14.
	 	Fractional Rights and Fractional Shares	  	 	22	  
			
	 Section 15.
	 	Rights of Action	  	 	23	  
			
	 Section 16.
	 	Agreement of Right Holders	  	 	24	  
			
	 Section 17.
	 	Right Certificate Holder Not Deemed a Stockholder	  	 	24	  
			
	 Section 18.
	 	Concerning the Rights Agent	  	 	25	  
			
	 Section 19.
	 	Merger or Consolidation or Change of Name of Rights Agent	  	 	25	  
			
	 Section 20.
	 	Duties of Rights Agent	  	 	26	  
			
	 Section 21.
	 	Change of Rights Agent	  	 	27	  

  
 i 

							
			
	 Section 22.
	 	Issuance of New Right Certificates	  	 	28	  
			
	 Section 23.
	 	Redemption	  	 	28	  
			
	 Section 24.
	 	Exchange	  	 	29	  
			
	 Section 25.
	 	Notice of Certain Events	  	 	31	  
			
	 Section 26.
	 	Notices	  	 	32	  
			
	 Section 27.
	 	Supplements and Amendments	  	 	32	  
			
	 Section 28.
	 	Successors	  	 	33	  
			
	 Section 29.
	 	Determinations and Actions by the Board of Directors	  	 	33	  
			
	 Section 30.
	 	Benefits of this Agreement	  	 	33	  
			
	 Section 31.
	 	Severability	  	 	34	  
			
	 Section 32.
	 	Governing Law	  	 	34	  
			
	 Section 33.
	 	Counterparts	  	 	34	  
			
	 Section 34.
	 	Descriptive Headings; Section References	  	 	34	  
			
	 Section 35.
	 	Force Majeure	  	 	35	  
	
	 Exhibit A – Terms of Series A Junior Participating Preferred Stock
	   

	
	 Exhibit B - Form of Right Certificate
	   

	
	 Exhibit C - Summary of Rights to Purchase Preferred Shares
	   

  
 ii 

 RIGHTS AGREEMENT 

RIGHTS AGREEMENT, dated as of January 9, 2015 (the “Agreement”), by and between CARBONITE, INC., a Delaware
corporation (the “Company”), and AMERICAN STOCK TRANSFER & TRUST COMPANY, LLC, as rights agent (the “Rights Agent”). 

WHEREAS, the Board of Directors of the Company has authorized and declared a dividend of one preferred share purchase right (a
“Right”) for each Common Share (as hereinafter defined) of the Company outstanding on January 20, 2015 (the “Record Date”), each Right representing the right to purchase one one-thousandth of a Preferred Share
(as hereinafter defined), upon the terms and subject to the conditions herein set forth, and has further authorized and directed the issuance of one Right with respect to each Common Share that shall become outstanding between the Record Date and
the earliest of the Distribution Date, the Redemption Date and the Final Expiration Date (as such terms are hereinafter defined). 
 NOW,
THEREFORE, in consideration of the premises and the mutual agreements herein set forth, the parties hereby agree as follows: 

Section 1. Definitions. For purposes of this Agreement, the following terms have the meanings indicated: 

(a) “Acquiring Person” shall mean any Person who or which, together with all Affiliates and Associates of such
Person, is or becomes the Beneficial Owner of 10% or more of the Common Shares of the Company then outstanding, but shall not include the Company, any Subsidiary of the Company, any employee benefit plan of the Company or any Subsidiary of the
Company, any entity holding Common Shares for or pursuant to the terms of any such plan, or any trustee, administrator or fiduciary of any such plan appointed by the Company; provided, however, that no Person which, together with all
Affiliates and Associates of such Person, is the Beneficial Owner of Common Shares of the Company representing less than 20% of the Common Shares of the Company then outstanding, and which is entitled to file, and files, a statement on Schedule 13G
(“Schedule 13G”) pursuant to Rule 13d-1(b) or Rule 13d-1(c) of the General Rules and Regulations under the Exchange Act as in effect at the time of the public announcement of the declaration of the Rights dividend with respect to the
Common Shares Beneficially Owned by such Person (a “13G Investor”), shall be deemed to be an “Acquiring Person”; provided, further, that a Person who was deemed a 13G Investor shall no longer be deemed such if it
files a statement on Schedule 13D pursuant to Rule 13d-1(a), 13d-1(e), 13d-1(f) or 13d-1(g) of the General Rules and Regulations under the Exchange Act as in effect at the time of the public announcement of the declaration of the Rights dividend
with respect to the Common Shares Beneficially Owned by such Person, and shall be deemed an Acquiring Person if it is the Beneficial Owner of 10% or more of the Common Shares of the Company then outstanding at any point from the time it first files
such a statement on Schedule 13D, provided that if at such time such Person’s Beneficial Ownership is not less than 10%, then such Person shall have 60 days from such time to reduce its Beneficial Ownership (together with all Affiliates and
Associates of such Person) to below 10% of the Common Shares of the Company before being deemed an “Acquiring Person” but shall be deemed an “Acquiring Person” if after reducing its

 
Beneficial Ownership to below 10% it subsequently becomes the Beneficial Owner of 10% or more of the Common Shares of the Company or if, prior to reducing its Beneficial Ownership to below 10%,
it increases (or makes any offer or takes any other action that would increase) its Beneficial Ownership of the then-outstanding Common Shares of the Company (other than as a result of an acquisition of Common Shares by the Company) above the lowest
Beneficial Ownership of such Person at any time during such 60-day period. Notwithstanding the foregoing, (i) no Person who is not a 13G Investor and who Beneficially Owns, each as of the time of the first public announcement of the declaration
of the Rights dividend, 10% or more of the Common Shares of the Company then outstanding and (ii) no Person who is a 13G Investor and who Beneficially Owns, each as of at the time of the first public announcement of the declaration of the
Rights dividend, 20% or more of the Common Shares of the Company then outstanding, shall become an “Acquiring Person” unless such Person shall, after the time of the public announcement of this Agreement, increase its Beneficial Ownership
of the then-outstanding Common Shares to an amount equal to or greater than the greater of (x) 10% (in the case of a Person who is not then a 13G Investor) or 20% (in the case of a Person who is then a 13G Investor) or (y) the sum of
(i) the lowest Beneficial Ownership of such Person as a percentage of the outstanding Common Shares as of any time from and after the time of the public announcement of the declaration of the Rights dividend plus (ii) 0.001%;
provided, however, that for purposes of calculating any increase in any Person’s Beneficial Ownership, any Shares or other equity interest issued or granted by the Company to any director of the Company after the time of the
public announcement of this Agreement shall be disregarded. Notwithstanding the foregoing, no Person shall become an “Acquiring Person” as the result of an acquisition of Common Shares by the Company which, by reducing the number of Common
Shares of the Company outstanding, increases the proportionate number of Common Shares of the Company Beneficially Owned by such Person to 10% (20% in the case of a 13G Investor) or more of the Common Shares of the Company then outstanding;
provided, however, that, if a Person shall become the Beneficial Owner of 10% (20% in the case of a 13G Investor) or more of the Common Shares of the Company then outstanding by reason of share purchases by the Company and shall, after
the public announcement of such share purchases by the Company, become the Beneficial Owner of any additional Common Shares of the Company, then such Person shall be deemed to be an “Acquiring Person.” Notwithstanding the foregoing, if the
Board of Directors of the Company determines in good faith that a Person who would otherwise be an “Acquiring Person,” as defined pursuant to the foregoing provisions of this Section 1(a), has become such inadvertently, and such
Person divests as promptly as practicable a sufficient number of Common Shares so that such Person would no longer be an “Acquiring Person,” as defined pursuant to the foregoing provisions of this Section 1(a), then such Person shall
not be deemed to be an “Acquiring Person” for any purposes of this Agreement. 
 (b) “Affiliate”
shall have the meaning ascribed to such term in Rule 12b-2 of the General Rules and Regulations under the Exchange Act as in effect on the date of this Agreement. 

(c) “Associate” shall have the meaning ascribed to such term in Rule 12b-2 of the General Rules and
Regulations under the Exchange Act as in effect on the date of this Agreement. 

  
 2 

 (d) A Person shall be deemed the “Beneficial Owner” of and shall
be deemed to “Beneficially Own” any securities: 
 (i) which such Person or any of such Person’s
Affiliates or Associates owns, directly or indirectly; 
 (ii) which such Person or any of such Person’s Affiliates or
Associates directly or indirectly has the right or the obligation to acquire (whether such right is exercisable, or such obligation is required to be performed, immediately or only after the passage of time) pursuant to any agreement, arrangement or
understanding (other than customary agreements with and between underwriters and selling group members with respect to a bona fide public offering of securities), or upon the exercise of conversion rights, exchange rights, rights
(other than the Rights), warrants or options, or otherwise; provided, however, that a Person shall not be deemed the Beneficial Owner of, or to Beneficially Own, (A) securities tendered pursuant to a tender or exchange offer made
by or on behalf of such Person or any of such Person’s Affiliates or Associates until such tendered securities are accepted for purchase or exchange, (B) securities issuable upon exercise of Rights at any time prior to the occurrence of a
Triggering Event or (C) securities issuable upon exercise of Rights from and after the occurrence of a Triggering Event which Rights were acquired by such Person or any such Person’s Affiliates or Associates prior to the Distribution Date
or pursuant to Section 3(a) or Section 22 the (“Original Rights”) or pursuant to Section 11(i) in connection with an adjustment made with respect to any Original Rights; 

(iii) which such Person or any of such Person’s Affiliates or Associates, directly or indirectly, has the right to vote or
dispose of or has “beneficial ownership” of (as determined pursuant to Rule 13d-3 of the General Rules and Regulations under the Exchange Act), including pursuant to any agreement, arrangement or understanding (whether or not in writing
and other than customary agreements with and between underwriters and selling group members with respect to a bona fide public offering of securities); provided, however, that a Person shall not be deemed the Beneficial Owner of, or to
Beneficially Own, any security under this subparagraph (iii) as a result of an agreement, arrangement or understanding to vote such security if such agreement, arrangement or understanding (1) arises solely from a revocable proxy or
consent given to such Person in response to a public proxy or consent solicitation made pursuant to, and in accordance with, the applicable rules and regulations promulgated under the Exchange Act and (2) is not also then reportable on Schedule
13D under the Exchange Act (or any comparable or successor report); 
 (iv) which are beneficially owned, directly or
indirectly, by any other Person (or any Affiliate or Associate thereof) with which such Person or any of such Person’s Affiliates or Associates has any agreement, arrangement or understanding (whether or not in writing and other than customary
agreements with and between underwriters and selling group members with respect to a bona fide public offering of securities) for the purpose of acquiring, holding, voting (except to the extent contemplated by the proviso to Section 1(d)(iii))
or disposing of any securities of the Company; or 

  
 3 

 (v) which such Person or any of such Person’s Affiliates or Associates is
determined to Constructively Own; 
 provided, however, that (x) nothing in this definition shall cause a Person engaged in business as
an underwriter of securities to be the Beneficial Owner of, or to Beneficially Own, any securities acquired through such Person’s participation in good faith in a firm commitment underwriting until the expiration of 40 days after the date of
such acquisition and (y) no officer or director of the Company shall be deemed to Beneficially Own any securities of any other Person solely by virtue of any actions that such officer or director takes in such capacity. 

A Person shall be deemed to “Constructively Own” Common Shares in respect of which such Person has, or has the right
or obligation to acquire, a Synthetic Long Position, calculated in the manner set forth below. The number of Common Shares in respect of a Synthetic Long Position that shall be deemed to be Constructively Owned is the notional or other number of
Common Shares in respect of such Synthetic Long Position that is specified in a filing by such Person or any of such Person’s Affiliates or Associates with the SEC or in the documentation evidencing such Synthetic Long Position as the basis
upon which the value or settlement amount of such Synthetic Long Position, or the opportunity of the holder of such Synthetic Long Position to profit or share in any profit, is to be calculated in whole or in part, and in any case (or if no such
number of Common Shares is specified in any filing or documentation), as determined by the Board of Directors of the Company in good faith to be the number of Common Shares to which such Synthetic Long Position relates. 

“Derivative” shall mean any option, warrant, convertible security, stock appreciation right, swap agreement or other
security, contract right or derivative position other than any interest, right, option or other security described in Rule 16a-1(c)(1)-(5) or (7) of the General Rules and Regulations under the Exchange Act. 

“Synthetic Long Position” shall mean any Derivative, whether or not presently exercisable, that has an exercise or
conversion privilege or a settlement payment or mechanism at a price related to the value of the Common Stock or a value determined in whole or in part with reference to, or derived in whole or in part from, the value of the Common Stock and that
increases in value as the value of the Common Stock increases or that provides to the holder an opportunity, directly or indirectly, to profit or share in any profit derived from any increase in the value of the Common Stock, in any case without
regard to whether (i) such Derivative conveys any voting rights in the Common Stock to such Person or any of such Person’s Affiliates or Associates, (ii) such Derivative is required to be, or capable of being, settled through delivery
of Common Stock or (iii) such Person or any of such Person’s Affiliates or Associates may have entered into other transactions that hedge the economic effect of such Derivative. 

  
 4 

 Notwithstanding anything in this definition of Beneficial Ownership to the
contrary, the phrase “then outstanding,” when used with reference to a Person’s Beneficial Ownership of securities of the Company, shall mean the number of such securities then issued and outstanding together with the number of such
securities not then actually issued and outstanding which are issuable by the Company and which such Person would be deemed to Beneficially Own hereunder. 

(e) “Business Day” shall mean any day other than a Saturday, a Sunday, or a day on which banking institutions
in the State of New York are authorized or obligated by law or executive order to close. 
 (f) “Close of
Business” on any given date shall mean 5:00 P.M., New York, New York time, on such date; provided, however, that, if such date is not a Business Day, it shall mean 5:00 P.M., New York, New York time, on the next succeeding
Business Day. 
 (g) “Common Shares” when used with reference to the Company shall mean the shares of common
stock, par value $0.01 per share, of the Company. “Common Shares” when used with reference to any Person other than the Company shall mean the capital stock (or equity interest) with the greatest voting power of such other Person or, if
such other Person is a Subsidiary of another Person, the Person or Persons that ultimately control such first-mentioned Person. 

(h) “Distribution Date” shall have the meaning set forth in Section 3(a). 

(i) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 

(j) “Exchange Ratio” shall have the meaning set forth in Section 24(a). 

(k) “Final Expiration Date” shall have the meaning set forth in Section 7(a). 

(l) “Flip-in Event” shall have the meaning set forth in Section 11(a)(ii). 

(m) “NASDAQ” shall mean The NASDAQ Stock Market, LLC. 

(n) “Person” shall mean any individual, partnership, firm, corporation, limited liability company,
association, trust, unincorporated organization or other entity, and shall include any successor (by merger or otherwise) of such entity, as well as any group under Rule 13d-5(b)(1) of the Exchange Act. 

(o) “Preferred Shares” shall mean shares of Series A Junior Participating Preferred Stock, par value $0.01 per
share, of the Company having the preferences and rights set forth in Exhibit A hereto. 
 (p) “Purchase
Price” shall have the meaning set forth in Section 4(a). 
 (q) “Record Date” shall have the
meaning set forth in the recitals of this Agreement. 

  
 5 

 (r) “Redemption Date” shall have the meaning set forth in
Section 7(a). 
 (s) “Redemption Price” shall have the meaning set forth in Section 23(a). 

(t) “Right” shall have the meaning set forth in the recitals of this Agreement. 

(u) “Right Certificate” shall have the meaning set forth in Section 3(a). 

(v) “Shares Acquisition Date” shall mean the first date of public announcement (which, for purposes of this
definition, shall include, without limitation, a report filed or amended pursuant to Section 13(d) under the Exchange Act) by the Company or an Acquiring Person that an Acquiring Person has become such. 

(w) “Subsidiary” of any Person shall mean any corporation or other entity of which a majority of the voting
power of the voting equity securities or equity interest is owned, directly or indirectly, by such Person. 
 (x)
“Summary of Rights” shall have the meaning set forth in Section 3(b). 
 (y) “Trading
Day” shall have the meaning set forth in Section 11(d). 
 (z) “Triggering Event” means
(a) a Flip-in Event or (b) an event described in clause (a), (b) or (c) of Section 13. 
 (aa)
“Trust” shall have the meaning set forth in Section 24(a). 
 (bb) “Trust Agreement”
shall have the meaning set forth in Section 24(a). 
 (cc) “13D Investor” shall mean any Person which
has filed a statement on Schedule 13D pursuant to Rule 13d-1(a), 13d-1(e), 13d-1(f) or 13d-1(g) of the General Rules and Regulations under the Exchange Act with respect to the Common Shares Beneficially Owned by such Person. 

(dd) “13G Investor” shall have the meaning set forth in Section 1(a). 

Section 2. Appointment of Rights Agent. The Company hereby appoints the Rights Agent to act as agent for the Company in accordance
with the terms and conditions hereof, and the Rights Agent hereby accepts such appointment. The Company may from time to time appoint such co-Rights Agents as it may deem necessary or desirable, upon ten (10) days’ prior written notice to
the Rights Agent. The Rights Agent shall have no duty to supervise, and shall in no event be liable for the acts or omissions of any such co-Rights Agent. 

Section 3. Issue of Right Certificates. 

(a) Until the earlier of (i) the tenth day after the Shares Acquisition Date (or, if the tenth day after the Shares
Acquisition Date occurs before the Record Date, the Close of Business on the Record Date) or (ii) the Close of Business on the tenth Business Day (or such later date as the Board of Directors of the Company shall determine prior to

  
 6 

 
such time as any Person becomes an Acquiring Person) after the date that a tender or exchange offer by any Person (other than the Company, any Subsidiary of the Company, any employee benefit plan
of the Company or any Subsidiary of the Company, any entity holding Common Shares for or pursuant to the terms of any such plan, or any trustee, administrator or fiduciary of any such plan appointed by the Company) is first published or sent or
given within the meaning of Rule 14d-2(a) of the General Rules and Regulations under the Exchange Act, if upon consummation thereof, such Person would become an Acquiring Person (including in either case any such date which is after the date of this
Agreement and prior to the issuance of the Rights; the earlier of such dates being herein referred to as the “Distribution Date”), (x) the Rights will be evidenced (subject to the provisions of Section 3(b)) by the
certificates for Common Shares of the Company registered in the names of the holders thereof (which certificates shall also be deemed to be Right Certificates) and not by separate Right Certificates (or, for shares participating in the direct
registration system, by notations in the respective book entry accounts for the Common Stock), and (y) the right to receive Right Certificates will be transferable only in connection with the transfer of Common Shares of the Company. As soon as
practicable after the Distribution Date, the Company will prepare and execute, the Rights Agent will countersign, and the Company will send or cause to be sent (and the Rights Agent will, if requested, send) by first-class, insured, postage-prepaid
mail, to each record holder of Common Shares of the Company as of the Close of Business on the Distribution Date, at the address of such holder shown on the records of the Company, a Right Certificate, in substantially the form of Exhibit B hereto
(a “Right Certificate”), evidencing one Right for each Common Share of the Company so held, subject to adjustment as provided herein. As of the Distribution Date, the Rights will be evidenced solely by such Right Certificates. 

(b) On the Record Date, or as soon as practicable thereafter, the Company will make available a Summary of Rights to Purchase
Preferred Shares, in substantially the form of Exhibit C hereto (the “Summary of Rights”), to any holder of Rights who may so request from time to time prior to the earlier of the Final Expiration Date or the Redemption Date. With
respect to certificates for Common Shares of the Company outstanding as of the Record Date, until the Distribution Date, the Rights will be evidenced by such certificates for the Common Shares of the Company (or, in the case of shares reflected on
the direct registration system, the notations in the book entry account) and the registered holders of Common Shares of the Company shall also be the registered holders of the associated Rights. Until the Distribution Date (or the earlier of the
Redemption Date or the Final Expiration Date), the surrender for transfer of any certificate for Common Shares of the Company outstanding on the Record Date, with or without a copy of the Summary of Rights attached thereto, shall also constitute the
transfer of the Rights associated with the Common Shares of the Company represented thereby. 
 (c) Certificates for Common
Shares of the Company that become outstanding (including, without limitation, reacquired Common Shares referred to in the last sentence of this Section 3(c)) after the Record Date but prior to the earliest of the Distribution Date, the
Redemption Date or the Final Expiration Date shall have impressed on, printed on, written on or otherwise affixed to them the following legend: 

  
 7 

 This certificate also evidences and entitles the holder hereof to certain rights as set forth in
the Rights Agreement by and between Carbonite, Inc. and American Stock Transfer & Trust Company, LLC, dated as of January 9, 2015, as it may be amended from time to time (the “Agreement”), the terms of which are hereby
incorporated herein by reference and a copy of which is on file at the principal executive offices of Carbonite, Inc. Under certain circumstances, as set forth in the Agreement, such Rights (as defined in the Agreement) will be evidenced by separate
certificates and will no longer be evidenced by this certificate. Carbonite, Inc. will mail to the holder of this certificate a copy of the Agreement without charge after receipt of a written request therefor. As set forth in the Agreement, Rights
Beneficially Owned by any Person (as defined in the Agreement) who becomes an Acquiring Person (as defined in the Agreement) become null and void. 

With respect to such certificates containing the foregoing legend, until the Distribution Date, the Rights associated with the Common Shares
of the Company represented by such certificates shall be evidenced by such certificates alone, and the surrender for transfer of any such certificate shall also constitute the transfer of the Rights associated with the Common Shares of the Company
represented thereby. Similarly, during such time periods, transfers of shares participating in the direct registration system shall also be deemed to be transfers of the associated Rights. In the case of any shares participating in the direct
registration system, the Company shall cause the transfer agent for the Common Shares of the Company to include on each direct registration account statement with respect thereto issued prior to the earliest of the Distribution Date, the Redemption
Date or the Final Expiration Date a notation to the effect that references to Common Shares of the Company also includes the associated Rights. To the extent that Common Shares of the Company are not represented by certificates, references in this
Agreement to certificates shall be deemed to refer to the notations in the book entry accounts reflecting ownership of such shares. In the event that the Company purchases or acquires any Common Shares of the Company after the Record Date but prior
to the Distribution Date, any Rights associated with such Common Shares of the Company shall be deemed cancelled and retired so that the Company shall not be entitled to exercise any Rights associated with the Common Shares of the Company which are
no longer outstanding. Notwithstanding this Section 3(c), the omission of a legend shall not affect the enforceability of any part of this Rights Agreement or the rights of any holder of the Rights. 

Section 4. Form of Right Certificates. 

(a) The Right Certificates (and the forms of election to purchase Preferred Shares and of assignment to be printed on the
reverse thereof) shall be substantially the same as Exhibit B hereto, and may have such marks of identification or designation and such legends, summaries or endorsements printed thereon as the Company may deem appropriate and as are not
inconsistent with the provisions of this Agreement, or as may be required to comply with any applicable law or with any applicable rule or regulation made pursuant thereto or with any applicable rule or regulation of any stock exchange or the
Financial Industry Regulatory Authority, or to conform to usage. Subject to the provisions of Section 22, the Right Certificates shall entitle the holders thereof to purchase such number of one one-thousandths of a Preferred Share as shall be
set forth therein at the price per one one-thousandth of a Preferred Share set forth therein (the “Purchase Price”), but the number of such one one-thousandths of a Preferred Share and the Purchase Price shall be subject to
adjustment as provided herein. 

  
 8 

 (b) Any Rights Certificate issued pursuant to Section 3(a) or
Section 22 that represents Rights Beneficially Owned by any Person known to be (i) an Acquiring Person or any Associate or Affiliate of an Acquiring Person, (ii) a transferee of an Acquiring Person (or of any such Associate or
Affiliate) who becomes a transferee after the Acquiring Person becomes such or (iii) a transferee of an Acquiring Person (or of any such Associate or Affiliate) who becomes a transferee prior to or concurrently with the Acquiring Person
becoming such and receives such Rights pursuant to either (A) a transfer (whether or not for consideration) from the Acquiring Person (or any Affiliate or Associate thereof) to holders of equity interests in such Acquiring Person (or any
Affiliate or Associate thereof) or to any Person with whom such Acquiring Person (or any Affiliate or Associate thereof) has any continuing agreement, arrangement or understanding regarding the transferred Rights or (B) a transfer which the
Board of Directors of the Company has determined is part of a plan, arrangement or understanding which has as a primary purpose or effect the avoidance of Section 7(e), and any Rights Certificate issued pursuant to Section 6 or
Section 11 upon transfer, exchange, replacement or adjustment of any other Rights Certificate referred to in this sentence, shall contain (to the extent feasible) the following legend: 

The Rights represented by this Rights Certificate are or were Beneficially Owned by a Person who was or became an Acquiring Person or an
Affiliate or Associate of an Acquiring Person (as such terms are defined in the Rights Agreement). Accordingly, this Rights Certificate and the Rights represented hereby may become null and void in the circumstances specified in Section 7(e) of
such Agreement. 
 The absence of the foregoing legend on any Rights Certificate shall in no way affect any of the other provisions of this Agreement,
including the provisions of Section 7(e). 
 Section 5. Countersignature and Registration. 

(a) The Right Certificates shall be executed on behalf of the Company by its Chairman of the Board, its Chief Executive
Officer, its President, any of its Vice Presidents or its Treasurer, either manually or by facsimile signature, shall have affixed thereto the Company’s seal or a facsimile thereof, and shall be attested by the Secretary or an Assistant
Secretary of the Company, either manually or by facsimile signature. The Right Certificates shall be countersigned, either manually or by facsimile signature, by the Rights Agent and shall not be valid for any purpose unless countersigned. In case
any officer of the Company who shall have signed any of the Right Certificates shall cease to be such officer of the Company before countersignature by the Rights Agent and issuance and delivery by the Company, such Right Certificates, nevertheless,
may be countersigned by the Rights Agent and issued and delivered by the Company with the same force and effect as though the individual who signed such Right Certificates had not ceased to be such officer of the Company; and any Right Certificate
may be signed on 

  
 9 

 
behalf of the Company by any individual who, at the actual date of the execution of such Right Certificate, shall be a proper officer of the Company to sign such Right Certificate, although at
the date of the execution of this Agreement any such individual was not such an officer. 
 (b) Following the Distribution
Date, the Rights Agent will keep or cause to be kept, at its principal office, books for registration and transfer of the Right Certificates issued hereunder. Such books shall show the names and addresses of the respective holders of the Right
Certificates, the number of Rights evidenced on its face by each of the Right Certificates and the date of each of the Right Certificates. 

Section 6. Transfer, Split Up, Combination and Exchange of Right Certificates; Mutilated, Destroyed, Lost or Stolen Right
Certificates. 
 (a) Subject to the provisions of Section 4(b), Section 7(e) and Section 14, at any time
after the Close of Business on the Distribution Date, and at or prior to the Close of Business on the earlier of the Redemption Date or the Final Expiration Date, any Right Certificate or Right Certificates (other than Right Certificates
representing Rights that have become void pursuant to Section 11(a)(ii) or that have been exchanged pursuant to Section 24) may be transferred, split up, combined or exchanged for another Right Certificate or Right Certificates entitling
the registered holder to purchase a like number of one one-thousandths of a Preferred Share (or, following a Triggering Event, Common Shares, other securities, cash or other assets, as the case may be) as the Right Certificate or Right Certificates
surrendered then entitled such holder to purchase. Any registered holder desiring to transfer, split up, combine or exchange any Right Certificate or Right Certificates shall make such request in writing delivered to the Rights Agent, and shall
surrender the Right Certificate or Right Certificates to be transferred, split up, combined or exchanged at the principal office of the Rights Agent. Neither the Rights Agent nor the Company shall be obligated to take any action whatsoever with
respect to the transfer of any such surrendered Right Certificate until the registered holder shall have properly completed and duly executed the certificate contained in the form of assignment on the reverse side of such Right Certificate and shall
have provided such additional evidence of the identity of the Beneficial Owner (or former Beneficial Owner) or Affiliates or Associates thereof as the Company or the Rights Agent shall reasonably request. Thereupon the Rights Agent shall, subject to
Section 4(b), Section 7(e) and Section 14, countersign and deliver to the Person entitled thereto a Right Certificate or Right Certificates, as the case may be, as so requested. The Company may require payment of a sum sufficient to
cover any tax or charge that may be imposed in connection with any transfer, split up, combination or exchange of Right Certificates. 

(b) Upon receipt by the Company and the Rights Agent of evidence reasonably satisfactory to them of the loss, theft,
destruction or mutilation of a Right Certificate, and, in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to them, and, at the Company’s request, reimbursement to the Company and the Rights Agent of all
reasonable expenses incidental thereto, and upon surrender to the Rights Agent and cancellation of the Right Certificate if mutilated, the Company will make and deliver a new Right Certificate of like tenor to the Rights Agent for delivery to the
registered holder in lieu of the Right Certificate so lost, stolen, destroyed or mutilated. 

  
 10 

 (c) Notwithstanding any other provisions hereof, the Company and the Rights Agent
may amend this Rights Agreement to provide for uncertificated Rights in addition to or in place of Rights evidenced by Rights Certificates. 

Section 7. Exercise of Rights; Purchase Price; Expiration Date of Rights. 

(a) The registered holder of any Right Certificate may exercise the Rights evidenced thereby (except as otherwise provided
herein), in whole or in part, at any time after the Distribution Date, upon surrender of the Right Certificate, with the form of election to purchase on the reverse side thereof duly executed, to the Rights Agent at the principal office of the
Rights Agent, together with payment of the Purchase Price for each one one-thousandth of a Preferred Share as to which the Rights are exercised, at or prior to the earliest of (i) the Close of Business on January 8, 2016 (the
“Final Expiration Date”), (ii) the time at which the Rights are redeemed as provided in Section 23 (the “Redemption Date”), or (iii) the time at which such Rights are exchanged as provided in
Section 24. 
 (b) The Purchase Price for each one one-thousandth of a Preferred Share purchasable pursuant to the
exercise of a Right shall initially be $37.50, and shall be subject to adjustment from time to time as provided in Section 11 or 13, and shall be payable in lawful money of the United States of America in accordance with Section 7(c). 

(c) Upon receipt of a Right Certificate representing exercisable Rights, with the form of election to purchase duly executed,
accompanied by payment of the Purchase Price for the shares to be purchased and an amount equal to any applicable transfer tax required to be paid by the holder of such Right Certificate in accordance with Section 9 by cash or by certified
check, cashier’s check or money order payable to the order of the Company, the Rights Agent shall, subject to Section 20(j), thereupon promptly (i) (A) requisition from any transfer agent of the Preferred Shares certificates for
the number of Preferred Shares to be purchased and the Company hereby irrevocably authorizes any such transfer agent to comply with all such requests, or (B) requisition from the depositary agent depositary receipts representing such number of
one one-thousandths of a Preferred Share as are to be purchased (in which case certificates for the Preferred Shares represented by such receipts shall be deposited by the transfer agent of the Preferred Shares with such depositary agent) and the
Company hereby directs such depositary agent to comply with such request; (ii) when appropriate, requisition from the Company the amount of cash to be paid in lieu of issuance of fractional shares in accordance with Section 14;
(iii) after receipt of such certificates or depositary receipts, cause the same to be delivered to or upon the order of the registered holder of such Right Certificate, registered in such name or names as may be designated by such holder; and
(iv) when appropriate, after receipt, deliver such cash to or upon the order of the registered holder of such Right Certificate. The payment of the Purchase Price shall be made in cash or by certified bank check or bank draft payable to the
order of the 

  
 11 

 
Company. In the event that the Company is obligated to issue other securities (including Common Shares) of the Company, pay cash and/or distribute other property pursuant to Section 11(a),
the Company will make all arrangements necessary so that such other securities, cash and/or other property are available for distribution by the Rights Agent, if and when necessary to comply with the terms of this Agreement. The Company reserves the
right to require prior to the occurrence of a Triggering Event that, upon any exercise of Rights, a number of Rights be exercised so that only whole shares of Preferred Stock would be issued. 

(d) In case the registered holder of any Right Certificate shall exercise less than all the Rights evidenced thereby, a new
Right Certificate evidencing Rights equivalent to the Rights remaining unexercised shall be issued by the Rights Agent to the registered holder of such Right Certificate or to such holder’s duly authorized assigns, subject to the provisions of
Section 14. 
 (e) Notwithstanding anything in this Agreement to the contrary, from and after the first occurrence of a
Flip-in Event, any Rights Beneficially Owned by (i) an Acquiring Person or an Associate or Affiliate of an Acquiring Person, (ii) a transferee of an Acquiring Person (or of any such Associate or Affiliate) who becomes a transferee after
the Acquiring Person becomes such, or (iii) a transferee of an Acquiring Person (or of any such Associate or Affiliate) who becomes a transferee prior to or concurrently with the Acquiring Person becoming such and receives such Rights pursuant
to either (A) a transfer (whether or not for consideration) from the Acquiring Person (or any Affiliate or Associate thereof) to holders of equity interests in such Acquiring Person (or any Affiliate or Associate thereof) or to any Person with
whom the Acquiring Person (or any Affiliate or Associate thereof) has any continuing agreement, arrangement or understanding, whether or not in writing, regarding the transferred Rights or (B) a transfer which the Board of Directors has
determined is part of an agreement, arrangement or understanding which has as a primary purpose or effect the avoidance of this Section 7(e), shall become null and void without any further action and no holder of such Rights shall have any
rights whatsoever with respect to such Rights, whether under any provision of this Agreement or otherwise. The Company shall notify the Rights Agent when this Section 7(e) applies and shall use all reasonable efforts to ensure that the
provisions of this Section 7(e) and Section 4(b) are complied with, but neither the Company nor the Rights Agent shall have any liability to any holder of Rights or other Person as a result of the Company’s failure to make any
determinations with respect to an Acquiring Person or any of its Affiliates, Associates or transferees hereunder. 
 (f)
Notwithstanding anything in this Agreement to the contrary, neither the Rights Agent nor the Company shall be obligated to undertake any action with respect to a registered holder upon the occurrence of any purported exercise as set forth in this
Section 7 unless such registered holder shall have (i) properly completed and duly executed the certificate contained in the form of election to purchase set forth on the reverse side of the Rights Certificate surrendered for such exercise
and (ii) provided such additional evidence of the identity of the Beneficial Owner (or former Beneficial Owner) or Affiliates or Associates thereof as the Company or the Rights Agent shall reasonably request. 

  
 12 

 Section 8. Cancellation and Destruction of Right Certificates. All Right Certificates
surrendered for the purpose of exercise, transfer, split up, combination or exchange shall, if surrendered to the Company or to any of its agents, be delivered to the Rights Agent for cancellation or in cancelled form, or, if surrendered to the
Rights Agent, shall be cancelled by it, and no Right Certificates shall be issued in lieu thereof except as expressly permitted by any of the provisions of this Agreement. The Company shall deliver to the Rights Agent for cancellation and
retirement, and the Rights Agent shall so cancel and retire, any other Right Certificate purchased or acquired by the Company otherwise than upon the exercise thereof. The Rights Agent shall deliver all cancelled Right Certificates to the Company,
or shall, at the written request of the Company, destroy such cancelled Right Certificates, and, in such case, shall deliver a certificate of destruction thereof to the Company. 

Section 9. Availability of Preferred Shares. 

(a) The Company covenants and agrees that it will cause to be reserved and kept available out of its authorized and unissued
Preferred Shares or any Preferred Shares held in its treasury the number of Preferred Shares that will be sufficient to permit the exercise in full of all outstanding Rights in accordance with Section 7. 

(b) So long as the Preferred Shares (and, following the occurrence of a Triggering Event, Common Shares and/or other
securities) issuable and deliverable upon the exercise of the Rights may be listed on any national securities exchange, the Company shall use its best efforts to cause, from and after such time as the Rights become exercisable, all shares reserved
for such issuance to be listed on such exchange, upon official notice of issuance upon such exercise. 
 (c) The Company
shall use its best efforts to (i) prepare and file, as soon as practicable following the earliest date after the first occurrence of a Flip-in Event on which the consideration to be delivered by the Company upon exercise of the Rights has been
determined in accordance with Section 11(a)(iii), a registration statement under the Securities Act of 1933, as amended (the “Act”), with respect to the securities purchasable upon exercise of the Rights on an appropriate form,
(ii) cause such registration statement to become effective as soon as practicable after such filing, and (iii) cause such registration statement to remain effective (with a prospectus at all times meeting the requirements of the Act) until
the earlier of (A) the date as of which the Rights are no longer exercisable for such securities, and (B) the Final Expiration Date. The Company will also take such action as may be appropriate under, or to ensure compliance with, the
securities or “blue sky” laws of the various states in connection with the exercisability of the Rights. The Company may temporarily suspend, for a period of time not to exceed ninety (90) days after the date set forth in clause
(i) of the first sentence of this Section 9(c), the exercisability of the Rights in order to prepare and file such registration statement and permit it to become effective. Upon any such suspension, the Company shall issue a public
announcement stating that the exercisability of the Rights has been temporarily suspended, as well as a public announcement at such time as the suspension is no longer in effect. In addition, if the Company shall determine that a registration
statement is required following the Distribution Date, and a Flip-in Event has not occurred, the Company may temporarily suspend (and shall give the Rights Agent 

  
 13 

 
prompt notice thereof) the exercisability of Rights until such time as a registration statement has been declared effective. Notwithstanding any provision of this Agreement to the contrary, the
Rights shall not be exercisable in any jurisdiction if the requisite qualification or exemption in such jurisdiction shall not have been obtained, the exercise thereof shall not be permitted under applicable law or a registration statement shall not
have been declared effective. 
 (d) The Company covenants and agrees that it will take all such action as may be necessary
to ensure that all Preferred Shares delivered upon exercise of Rights shall, at the time of delivery of the certificates for such Preferred Shares (subject to payment of the Purchase Price), be duly and validly authorized and issued and fully paid
and nonassessable shares. 
 (e) The Company further covenants and agrees that it will pay when due and payable any and all
federal and state transfer taxes and charges which may be payable in respect of the issuance or delivery of the Right Certificates or of any Preferred Shares upon the exercise of Rights. The Company shall not, however, be required to pay any
transfer tax which may be payable in respect of any transfer or delivery of Right Certificates to a Person other than, or the issuance or delivery of certificates or depositary receipts for the Preferred Shares in a name other than that of, the
registered holder of the Right Certificate evidencing Rights surrendered for exercise or to issue or to deliver any certificates or depositary receipts for Preferred Shares upon the exercise of any Rights until any such tax shall have been paid (any
such tax being payable by the holder of such Right Certificate at the time of surrender) or until it has been established to the Company’s reasonable satisfaction that no such tax is due. 

Section 10. Preferred Shares Record Date. Each Person in whose name any certificate for Preferred Shares is issued upon the
exercise of Rights shall for all purposes be deemed to have become the holder of record of the Preferred Shares represented thereby on, and such certificate shall be dated, the date upon which the Right Certificate evidencing such Rights was duly
surrendered and payment of the Purchase Price (and any applicable transfer taxes) was made; provided, however, that, if the date of such surrender and payment is a date upon which the Preferred Shares transfer books of the Company are
closed, such Person shall be deemed to have become the record holder of such shares on, and such certificate shall be dated, the next succeeding Business Day on which the Preferred Shares transfer books of the Company are open. Prior to the exercise
of the Rights evidenced thereby, the holder of a Right Certificate shall not be entitled to any rights of a holder of Preferred Shares for which the Rights shall be exercisable, including, without limitation, the right to vote, to receive dividends
or other distributions or to exercise any preemptive rights, and shall not be entitled to receive any notice of any proceedings of the Company, except as provided herein. 

Section 11. Adjustment of Purchase Price, Number of Shares or Number of Rights. The Purchase Price, the number of Preferred Shares
covered by each Right and the number of Rights outstanding are subject to adjustment from time to time as provided in this Section 11. 

  
 14 

 (a) 

(i) In the event the Company shall at any time after the date of this Agreement (A) declare a dividend on the Preferred
Shares payable in Preferred Shares, (B) subdivide the outstanding Preferred Shares, (C) combine the outstanding Preferred Shares into a smaller number of Preferred Shares or (D) issue any shares of its capital stock in a
reclassification of the Preferred Shares (including any such reclassification in connection with a share exchange, consolidation or merger in which the Company is the continuing or surviving corporation), except as otherwise provided in this
Section 11(a), the Purchase Price in effect at the time of the record date for such dividend or of the effective date of such subdivision, combination or reclassification, and the number and kind of shares of capital stock issuable on such
date, shall be proportionately adjusted so that the holder of any Right exercised after such time shall be entitled to receive the aggregate number and kind of shares of capital stock which, if such Right had been exercised immediately prior to such
date and at a time when the Preferred Shares transfer books of the Company were open, such holder would have owned upon such exercise and been entitled to receive by virtue of such dividend, subdivision, combination or reclassification;
provided, however, that in no event shall the consideration to be paid upon the exercise of one Right be less than the aggregate par value of the shares of capital stock of the Company issuable upon exercise of one Right. 

(ii) Subject to Section 24, in the event any Person becomes an Acquiring Person (a “Flip-in Event”), each holder
of a Right shall thereafter have a right to receive, upon exercise thereof at a price equal to the then current Purchase Price multiplied by the number of one one-thousandths of a Preferred Share for which a Right is then exercisable, in accordance
with the terms of this Agreement and in lieu of Preferred Shares, such number of Common Shares of the Company as shall equal the result obtained by (A) multiplying the then current Purchase Price by the number of one one-thousandths of a
Preferred Share for which a Right is then exercisable and dividing that product by (B) 50% of the then current per share market price of the Common Shares of the Company (determined pursuant to Section 11(d)) on the date of the occurrence
of such event. In the event that any Person shall become an Acquiring Person and the Rights shall then be outstanding, the Company shall not take any action which would eliminate or diminish the benefits intended to be afforded by the Rights. 

(iii) In the event that there shall not be sufficient Common Shares issued but not outstanding or authorized but unissued to
permit the exercise in full of the Rights in accordance with subparagraph (ii) above, the Company shall take all such action as may be necessary to authorize additional Common Shares for issuance upon exercise of the Rights. In the event the
Company shall, after good faith effort, be unable to take all such action as may be necessary to authorize such additional Common Shares, the Company shall substitute, for each Common Share that would otherwise be issuable upon exercise of a Right,
a number of preferred shares or fraction thereof such that the current per share market price of one preferred share multiplied by such number or fraction is equal to the current per share market price of one Common Share as of the date of issuance
of such preferred shares or fraction thereof. 

  
 15 

 (b) In case the Company shall fix a record date for the issuance of rights,
options or warrants to all holders of Preferred Shares entitling them (for a period expiring within 45 calendar days after such record date) to subscribe for or purchase Preferred Shares (or shares having the same rights, privileges and preferences
as the Preferred Shares (“equivalent preferred shares”)) or securities convertible into Preferred Shares or equivalent preferred shares at a price per Preferred Share or equivalent preferred share (or having a conversion price per
share, if a security convertible into Preferred Shares or equivalent preferred shares) less than the then current per share market price of the Preferred Shares (as defined in Section 11(d)) on such record date, the Purchase Price to be in
effect after such record date shall be determined by multiplying the Purchase Price in effect immediately prior to such record date by a fraction, the numerator of which shall be the number of Preferred Shares outstanding on such record date plus
the number of Preferred Shares which the aggregate offering price of the total number of Preferred Shares and/or equivalent preferred shares so to be offered (and/or the aggregate initial conversion price of the convertible securities so to be
offered) would purchase at such current market price and the denominator of which shall be the number of Preferred Shares outstanding on such record date plus the number of additional Preferred Shares and/or equivalent preferred shares to be offered
for subscription or purchase (or into which the convertible securities so to be offered are initially convertible); provided, however, that in no event shall the consideration to be paid upon the exercise of one Right be less than the
aggregate par value of the shares of capital stock of the Company issuable upon exercise of one Right. In case such subscription price may be paid in a consideration part or all of which shall be in a form other than cash, the value of such
consideration shall be as determined in good faith by the Board of Directors of the Company, whose determination shall be described in a statement filed with the Rights Agent and shall be binding on the Rights Agent and holders of the Rights.
Preferred Shares owned by or held for the account of the Company or any Subsidiary of the Company shall not be deemed outstanding for the purpose of any such computation. Such adjustment shall be made successively whenever such a record date is
fixed; and, in the event that such rights, options or warrants are not so issued, the Purchase Price shall be adjusted to be the Purchase Price which would then be in effect if such record date had not been fixed. 

(c) In case the Company shall fix a record date for the making of a distribution to all holders of the Preferred Shares
(including any such distribution made in connection with a share exchange, consolidation or merger in which the Company is the continuing or surviving corporation) of evidences of indebtedness or assets (other than a regular quarterly cash dividend
or a dividend payable in Preferred Shares) or subscription rights or warrants (excluding those referred to in Section 11(b)), the Purchase Price to be in effect after such record date shall be determined by multiplying the Purchase Price in
effect immediately prior to such record date by a fraction, the numerator of which shall be the then-current per share market price of the Preferred Shares on such record date, less the fair market value (as determined in good faith by the Board of
Directors of the Company, whose determination shall be described in a statement filed with the Rights Agent and shall be binding on the Rights Agent and holders of the Rights) of the portion of the assets or evidences of indebtedness so to be
distributed or of such subscription rights or warrants applicable to one Preferred Share and the denominator of which shall 

  
 16 

 
be such then-current per share market price of the Preferred Shares on such record date; provided, however, that in no event shall the consideration to be paid upon the exercise of
one Right be less than the aggregate par value of the shares of capital stock of the Company to be issued upon exercise of one Right. Such adjustments shall be made successively whenever such a record date is fixed; and, in the event that such
distribution is not so made, the Purchase Price shall again be adjusted to be the Purchase Price which would then be in effect if such record date had not been fixed. 

(d) 

(i) For the purpose of any computation hereunder other than computations made pursuant to Section 11(a)(iii), the
“current per share market price” of any security (a “Security” for the purpose of this Section 11(d)(i)) on any date shall be deemed to be the average of the daily closing prices per share of such Security for the 30
consecutive Trading Days immediately prior to such date and for purposes of computations made pursuant to Section 11(a)(iii), the “current per share market price” of any security shall be deemed to be the average of the daily closing
prices per share of such Security for the ten consecutive Trading Days immediately following but not including such date; provided, however, that, in the event that the current per share market price of the Security is determined
during a period following the announcement by the issuer of such Security of (A) a dividend or distribution on such Security payable in shares of such Security or Securities convertible into such shares, or (B) any subdivision, combination
or reclassification of such Security and prior to the expiration of 30 Trading Days after the ex-dividend date for such dividend or distribution, or the record date for such subdivision, combination or reclassification, then, and in each such case,
the current per share market price shall be appropriately adjusted to reflect the current market price per share equivalent of such Security. The closing price for each day shall be the last sale price, regular way, reported at or prior to 4:00 P.M.
Eastern time or, in case no such sale takes place on such day, the average of the bid and asked prices, regular way, reported as of 4:00 P.M. Eastern time, in either case, as reported in the principal consolidated transaction reporting system with
respect to securities listed or admitted to trading on the New York Stock Exchange or, if the Security is not listed or admitted to trading on the New York Stock Exchange, as reported in the principal consolidated transaction reporting system with
respect to securities listed on the principal national securities exchange on which the Security is listed or admitted to trading or, if the Security is not listed or admitted to trading on any national securities exchange, the last quoted price
reported at or prior to 4:00 P.M. Eastern time or, if not so quoted, the average of the high bid and low asked prices in the over-the-counter market, as reported as of 4:00 P.M. Eastern time by NASDAQ or such other system then in use, or, if on any
such date the Security is not quoted by any such organization, the average of the closing bid and asked prices as furnished by a professional market maker making a market in the Security selected by the Board of Directors of the Company. The term
“Trading Day” shall mean a day on which the principal national securities exchange on which the Security is listed or admitted to trading is open for the transaction of business, or, if the Security is not listed or admitted to
trading on any national securities exchange, a Business Day. 

  
 17 

 (ii) For the purpose of any computation hereunder, the “current per share
market price” of the Preferred Shares shall be determined in accordance with the method set forth in Section 11(d)(i). If the Preferred Shares are not publicly traded, the “current per share market price” of the Preferred Shares
shall be conclusively deemed to be the current per share market price of the Common Shares of the Company as determined pursuant to Section 11(d)(i) (appropriately adjusted to reflect any stock split, stock dividend or similar transaction
occurring after the date hereof), multiplied by 1,000. If neither the Common Shares of the Company nor the Preferred Shares are publicly held or so listed or traded, “current per share market price” shall mean the fair value per share as
determined in good faith by the Board of Directors of the Company, whose determination shall be described in a statement filed with the Rights Agent. 

(e) Notwithstanding anything in this Agreement to the contrary, no adjustment in the Purchase Price shall be required unless
such adjustment would require an increase or decrease of at least 1% in the Purchase Price; provided, however, that any adjustments which by reason of this Section 11(e) are not required to be made shall be carried forward and
taken into account in any subsequent adjustment. All calculations under this Section 11 shall be made to the nearest cent or to the nearest one one-millionth of a Preferred Share or one ten-thousandth of any other share or security as the case
may be. Notwithstanding the first sentence of this Section 11(e), any adjustment required by this Section 11 shall be made no later than the earlier of (i) three years from the date of the transaction which requires such adjustment or
(ii) the date of the expiration of the right to exercise any Rights. 
 (f) If, as a result of an adjustment made
pursuant to Section 11(a), the holder of any Right thereafter exercised shall become entitled to receive any shares of capital stock of the Company other than Preferred Shares, thereafter the number of such other shares so receivable upon
exercise of any Right shall be subject to adjustment from time to time in a manner and on terms as nearly equivalent as practicable to the provisions with respect to the Preferred Shares contained in Section 11(a) through (c), inclusive, and
the provisions of Sections 7, 9, 10 and 13 with respect to the Preferred Shares shall apply on like terms to any such other shares. 

(g) All Rights originally issued by the Company subsequent to any adjustment made to the Purchase Price hereunder shall
evidence the right to purchase, at the adjusted Purchase Price, the number of one one-thousandths of a Preferred Share purchasable from time to time hereunder upon exercise of the Rights, all subject to further adjustment as provided herein. 

(h) Unless the Company shall have exercised its election as provided in Section 11(i), upon each adjustment of the
Purchase Price as a result of the calculations made in Sections 11(b) and (c), each Right outstanding immediately prior to the making of such adjustment shall thereafter evidence the right to purchase, at the adjusted Purchase Price, that number of
one one-thousandths of a Preferred Share (calculated to the nearest one-millionth of a Preferred Share) obtained by (A) multiplying (x) the number of one one-thousandths of a Preferred Share covered by a Right immediately prior to this
adjustment by (y) the Purchase Price in effect immediately prior to such adjustment of the Purchase Price and (B) dividing the product so obtained by the Purchase Price in effect immediately after such adjustment of the Purchase Price.

  
 18 

 (i) The Company may elect, on or after the date of any adjustment of the Purchase
Price, to adjust the number of Rights in substitution for any adjustment in the number of one one-thousandths of a Preferred Share purchasable upon the exercise of a Right. Each of the Rights outstanding after such adjustment of the number of Rights
shall be exercisable for the number of one one-thousandths of a Preferred Share for which a Right was exercisable immediately prior to such adjustment. Each Right held of record prior to such adjustment of the number of Rights shall become that
number of Rights (calculated to the nearest one ten-thousandth) obtained by dividing the Purchase Price in effect immediately prior to adjustment of the Purchase Price by the Purchase Price in effect immediately after adjustment of the Purchase
Price. The Company shall make a public announcement of its election to adjust the number of Rights, indicating the record date for the adjustment, and, if known at the time, the amount of the adjustment to be made. This record date may be the date
on which the Purchase Price is adjusted or any day thereafter, but, if the Right Certificates have been issued, shall be at least 10 days later than the date of the public announcement. If Right Certificates have been issued, upon each adjustment of
the number of Rights pursuant to this Section 11(i), the Company shall, as promptly as practicable, cause to be distributed to holders of record of Right Certificates on such record date Right Certificates evidencing, subject to
Section 14, the additional Rights to which such holders shall be entitled as a result of such adjustment, or, at the option of the Company, shall cause to be distributed to such holders of record in substitution and replacement for the Right
Certificates held by such holders prior to the date of adjustment, and upon surrender thereof, if required by the Company, new Right Certificates evidencing all the Rights to which such holders shall be entitled after such adjustment. Right
Certificates so to be distributed shall be issued, executed and countersigned in the manner provided for herein, and shall be registered in the names of the holders of record of Right Certificates on the record date specified in the public
announcement. 
 (j) Irrespective of any adjustment or change in the Purchase Price or in the number of one one-thousandths
of a Preferred Share issuable upon the exercise of the Rights, the Right Certificates theretofore and thereafter issued may continue to express the Purchase Price and the number of one one-thousandths of a Preferred Share which were expressed in the
initial Right Certificates issued hereunder. 
 (k) Before taking any action that would cause an adjustment reducing the
Purchase Price below one one-thousandth of the then par value, if any, of the Preferred Shares issuable upon exercise of the Rights, the Company shall take any corporate action which may, in the opinion of its counsel, be necessary in order that the
Company may validly and legally issue fully paid and nonassessable Preferred Shares at such adjusted Purchase Price. 

  
 19 

 (l) In any case in which this Section 11 shall require that an adjustment in
the Purchase Price be made effective as of a record date for a specified event, the Company may elect to defer until the occurrence of such event the issuing to the holder of any Right exercised after such record date of the Preferred Shares and
other capital stock or securities of the Company, if any, issuable upon such exercise over and above the Preferred Shares and other capital stock or securities of the Company, if any, issuable upon such exercise on the basis of the Purchase Price in
effect prior to such adjustment; provided, however, that the Company shall deliver to such holder a due bill or other appropriate instrument evidencing such holder’s right to receive such additional shares upon the occurrence of
the event requiring such adjustment. 
 (m) Anything in this Section 11 to the contrary notwithstanding, the Company
shall be entitled to make such reductions in the Purchase Price, in addition to those adjustments expressly required by this Section 11, as and to the extent that it, in its sole discretion, shall determine to be advisable in order that any
consolidation or subdivision of the Preferred Shares, issuance wholly for cash of any Preferred Shares at less than the current market price, issuance wholly for cash of Preferred Shares or securities which by their terms are convertible into or
exchangeable for Preferred Shares, dividends on Preferred Shares payable in Preferred Shares or issuance of rights, options or warrants referred to in Section 11(b), hereafter made by the Company to holders of the Preferred Shares shall not be
taxable to such stockholders. 
 (n) The Company covenants and agrees that it shall not, at any time after the Distribution
Date, (i) consolidate with any other Person (other than a Subsidiary of the Company in a transaction which complies with Section 11(o)) (ii) merge with or into any other Person (other than a Subsidiary of the Company in a transaction
which complies with Section 11(o)), or (iii) sell or transfer (or permit any Subsidiary to sell or transfer), in one transaction, or a series of related transactions, assets, cash flow or earning power aggregating more than fifty percent
(50%) of the assets, cash flow or earning power of the Company and its Subsidiaries (taken as a whole) to any other Person or Persons (other than the Company or any of its Subsidiaries in one or more transactions each of which complies with
Section 11(o)), if (x) at the time of or immediately after such consolidation, merger, sale or transfer there are any rights, warrants or other instruments or securities outstanding or agreements in effect which would substantially
diminish or otherwise eliminate the benefits intended to be afforded by the Rights or (y) prior to, simultaneously with or immediately after such consolidation, merger, sale or transfer, the stockholders of the Person who constitutes, or would
constitute, the acquiring Person for purposes of Section 13 shall have received a distribution of Rights previously owned by such Person or any of its Affiliates and Associates. 

(o) The Company covenants and agrees that, after the Distribution Date, it will not, except as permitted by Section 23,
Section 24 or Section 27, take (or permit any Subsidiary to take) any action if at the time such action is taken it is reasonably foreseeable that such action will diminish substantially or otherwise eliminate the benefits intended to be
afforded by the Rights. 

  
 20 

 (p) In the event that, at any time after the date of this Agreement and prior to
the Distribution Date, the Company shall (i) declare or pay any dividend on the Common Shares payable in Common Shares, or (ii) effect a subdivision, combination or 

consolidation of the Common Shares (by reclassification or otherwise than by payment of dividends in Common Shares) into a greater or lesser
number of Common Shares, then, in any such case, the number of Rights associated with each Common Share then outstanding, or issued or delivered thereafter but prior to the Distribution Date, shall be proportionately adjusted so that the number of
Rights thereafter associated with each Common Share following any such event shall equal the result obtained by multiplying the number of Rights associated with each Common Share immediately prior to such event by a fraction the numerator of which
shall be the total number of Common Shares outstanding immediately prior to the occurrence of the event and the denominator of which shall be the total number of Common Shares outstanding immediately following the occurrence of such event. The
adjustments provided for in this Section 11(p) shall be made successively whenever such a dividend is declared or paid or such a subdivision, combination or consolidation is effected. 

Section 12. Certificate of Adjusted Purchase Price or Number of Shares. Whenever an adjustment is made as provided in Sections 11
or 13, the Company shall promptly (a) prepare a certificate setting forth such adjustment or describing such event and a brief statement of the facts accounting for such adjustment or describing such event, (b) file with the Rights Agent
and with each transfer agent for the Common Shares of the Company or the Preferred Shares a copy of such certificate and (c) if such adjustment occurs at any time after the Distribution Date, mail a brief summary thereof to each holder of a
Right Certificate in accordance with Section 25. 
 Section 13. Consolidation, Merger or Sale or Transfer of Assets or Earning
Power. In the event that, following the Shares Acquisition Date, directly or indirectly, (a) the Company shall effect a share exchange, consolidate with, or merge with and into, any other Person (other than a Subsidiary of the Company in a
transaction that complies with Section 11(o)), and the Company shall not be the continuing or surviving corporation of such share exchange, consolidation or merger, (b) any Person shall effect a share exchange, consolidate with the
Company, or merge with and into the Company and the Company shall be the continuing or surviving corporation of such share exchange, consolidation or merger and, in connection with such share exchange, consolidation or merger, all or part of the
Common Shares of the Company shall be changed into or exchanged for stock or other securities of any other Person (or the Company) or cash or any other property, or (c) the Company shall sell or otherwise transfer (or one or more of its
Subsidiaries shall sell or otherwise transfer), in one or more transactions, assets or earning power aggregating 50% or more of the assets or earning power of the Company and its Subsidiaries (taken as a whole) to any other Person (other than the
Company or any Subsidiary of the Company in one or more transactions each of which complies with Section 11(o)), then, and in each such case, proper provision shall be made so that (i) each holder of a Right (except as otherwise provided
in Section 7(e)) shall thereafter have the right to receive, upon the exercise thereof, in accordance with the terms of this Agreement and in lieu of Preferred Shares, such number of Common Shares of such other Person (including the Company as
successor thereto or as the surviving corporation) as shall equal the result obtained by (A) multiplying the then current Purchase Price by the number of one one-thousandths of a Preferred Share for which a Right is then exercisable and
dividing that product by (B) 50% of the then current per share market price of the Common Shares of such other Person (determined pursuant to Section 11(d)) on the date of consummation of such share exchange, consolidation, merger, sale or
transfer; (ii) the issuer of such Common Shares shall thereafter be liable for, and shall 

  
 21 

 
assume, by virtue of such share exchange, consolidation, merger, sale or transfer, all the obligations and duties of the Company pursuant to this Agreement; (iii) the term
“Company” shall thereafter be deemed to refer to such issuer; and (iv) such issuer shall take such steps (including, but not limited to, the reservation of a sufficient number of its Common Shares in accordance with Section 9) in
connection with such consummation as may be necessary to assure that the provisions hereof shall thereafter be applicable, as nearly as reasonably may be, in relation to the Common Shares of the Company thereafter deliverable upon the exercise of
the Rights. The Company shall not consummate any such share exchange, consolidation, merger, sale or transfer unless, prior thereto, the Company and such issuer shall have executed and delivered to the Rights Agent a supplemental agreement so
providing. The Company shall not enter into any transaction of the kind referred to in this Section 13 if at the time of such transaction there are any rights, warrants, instruments or securities outstanding or any agreements or arrangements
which, as a result of the consummation of such transaction, would eliminate or substantially diminish the benefits intended to be afforded by the Rights. The provisions of this Section 13 shall similarly apply to successive mergers, share
exchanges, or consolidations or sales or other transfers. 
 Section 14. Fractional Rights and Fractional Shares. 

(a) The Company shall not be required to issue fractions of Rights or to distribute Right Certificates which evidence
fractional Rights. In lieu of such fractional Rights, there shall be paid to the registered holders of the Right Certificates with regard to which such fractional Rights would otherwise be issuable, an amount in cash equal to the same fraction of
the current market value of a whole Right. For the purposes of this Section 14(a), the current market value of a whole Right shall be the closing price of the Rights for the Trading Day immediately prior to the date on which such fractional
Rights would have been otherwise issuable. The closing price for any day shall be the last sale price, regular way, or, in case no such sale takes place on such day, the average of the closing bid and asked prices, regular way, in either case, as
reported in the principal consolidated transaction reporting system with respect to securities listed or admitted to trading on the New York Stock Exchange or, if the Rights are not listed or admitted to trading on the New York Stock Exchange as
reported in the principal consolidated transaction reporting system with respect to securities listed on the principal national securities exchange on which the Rights are listed or admitted to trading or, if the Rights are not listed or admitted to
trading on any national securities exchange, the last quoted price or, if not so quoted, the average of the high bid and low asked prices in the over-the-counter market, as reported by NASDAQ or such other system then in use or, if on any such date
the Rights are not quoted by any such organization, the average of the closing bid and asked prices as furnished by a professional market maker making a market in the Rights selected by the Board of Directors of the Company. If on any such date no
such market maker is making a market in the Rights, the fair value of the Rights on such date as determined in good faith by the Board of Directors of the Company shall be used. 

  
 22 

 (b) The Company shall not be required to issue fractions of Preferred Shares
(other than fractions which are integral multiples of one one-thousandth of a Preferred Share) upon exercise of the Rights or to distribute certificates which evidence fractional Preferred Shares (other than fractions which are integral multiples of
one one-thousandth of a Preferred Share). Fractions of Preferred Shares in integral multiples of one one-thousandth of a Preferred Share may, at the election of the Company, be evidenced by depositary receipts, pursuant to an appropriate agreement
between the Company and a depositary selected by it; provided that such agreement shall provide that the holders of such depositary receipts shall have all the rights, privileges and preferences to which they are entitled as Beneficial Owners
of the Preferred Shares represented by such depositary receipts. In lieu of fractional Preferred Shares that are not integral multiples of one one-thousandth of a Preferred Share, the Company shall pay to the registered holders of Right Certificates
at the time such Rights are exercised as herein provided an amount in cash equal to the same fraction of the current market value of one Preferred Share. For the purposes of this Section 14(b), the current market value of a Preferred Share
shall be the closing price of a Preferred Share (as determined pursuant to the second sentence of Section 11(d)(i)) for the Trading Day immediately prior to the date of such exercise. 

(c) Following the occurrence of a Triggering Event, the Company shall not be required to issue fractions of Common Shares or
other securities upon exercise of the Rights or to distribute certificates which evidence fractional Common Shares or other securities. In lieu of fractional Common Shares or other securities, the Company shall pay to the registered holders of
Rights Certificates at the time such Rights are exercised as herein provided an amount in cash equal to the same fraction of the current market value of one Common Share or such other securities. For purposes of this Section 14(c), the current
market value of one Common Share or other security shall be the closing price of one Common Share or such other security, as applicable, (as determined pursuant to Section 11(d)(i)) for the Trading Day immediately prior to the date of such
exercise. 
 (d) The holder of a Right, by the acceptance of the Right, expressly waives such holder’s right to receive
any fractional Rights or any fractional shares upon exercise of a Right (except as provided above). 
 (e) Whenever a payment
for fractional Rights or fractional shares is to be made by the Rights Agent, the Company shall (i) promptly prepare and deliver to the Rights Agent a certificate setting forth in reasonable detail the facts related to such payment and the
prices or formulas utilized in calculating such payments and (ii) provide sufficient monies to the Rights Agent in the form of fully collected funds to make such payments. 

Section 15. Rights of Action. All rights of action in respect of this Agreement, excepting the rights of action given to the
Rights Agent under Section 18, are vested in the respective registered holders of the Right Certificates (and, prior to the Distribution Date, the registered holders of the Common Shares); and any registered holder of any Right Certificate (or,
prior to the Distribution Date, of the Common Shares), without the consent of the Rights Agent or of the holder of any other Right Certificate (or, prior to the Distribution Date, of the Common Shares), may, in such holder’s own behalf and for
such holder’s own benefit, enforce, and may institute and maintain any suit, action or proceeding against the Company to enforce, or otherwise act in respect of, such holder’s right to exercise the Rights evidenced by such Right
Certificate in the manner provided in such Right Certificate and in this Agreement. Without 

  
 23 

 
limiting the foregoing or any remedies available to the holders of Rights, it is specifically acknowledged that the holders of Rights would not have an adequate remedy at law for any breach of
this Agreement, and will be entitled to specific performance of the obligations under, and injunctive relief against actual or threatened violations of the obligations of any Person subject to, this Agreement. 

Section 16. Agreement of Right Holders. Every holder of a Right, by accepting the same, consents and agrees with the Company and
the Rights Agent and with every other holder of a Right that: 
 (a) prior to the Distribution Date, the Rights will be
transferable only in connection with the transfer of the Common Shares; 
 (b) after the Distribution Date, the Right
Certificates are transferable only on the registry books of the Rights Agent if surrendered at the principal office of the Rights Agent, duly endorsed or accompanied by a proper instrument of transfer; 

(c) subject to Section 6(a) and Section 7(f), the Company and the Rights Agent may deem and treat the person in whose
name the Right Certificate (or, prior to the Distribution Date, the associated Common Shares certificate) is registered as the absolute owner thereof and of the Rights evidenced thereby (notwithstanding any notations of ownership or writing on the
Right Certificate or the associated Common Shares certificate made by anyone other than the Company or the Rights Agent) for all purposes whatsoever, and neither the Company nor the Rights Agent, subject to the last sentence of Section 7(e),
shall be affected by any notice to the contrary; and 
 (d) notwithstanding anything in this Agreement to the contrary,
neither the Company nor the Rights Agent shall have any liability to any holder of a Right or other Person as a result of its inability to perform any of its obligations under this Agreement by reason of any preliminary or permanent injunction or
other order, decree, judgment or ruling issued by a court of competent jurisdiction or by a governmental, regulatory or administrative agency or commission, or any statute, rule, regulation or executive order promulgated or enacted by any
governmental authority, prohibiting or otherwise restraining performance of such obligation; provided, however, the Company must use commercially reasonable efforts to have any such injunction, order, decree, judgment or ruling lifted
or otherwise overturned as soon as possible. 
 Section 17. Right Certificate Holder Not Deemed a Stockholder. No holder, as
such, of any Right Certificate shall be entitled to vote, receive dividends or be deemed for any purpose the holder of the Preferred Shares or any other securities of the Company which may at any time be issuable on the exercise of the Rights
represented thereby, nor shall anything contained herein or in any Right Certificate be construed to confer upon the holder of any Right Certificate, as such, any of the rights of a stockholder of the Company or any right to vote for the election of
directors or upon any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions affecting stockholders (except as provided in Section 25),
or to receive dividends or subscription rights, or otherwise, until the Right or Rights evidenced by such Right Certificate shall have been exercised in accordance with the provisions hereof. 

  
 24 

 Section 18. Concerning the Rights Agent. The Company agrees to pay to the Rights
Agent reasonable compensation for all services rendered by it hereunder, and, from time to time, on demand of the Rights Agent, its reasonable expenses and counsel fees and other disbursements incurred in the administration and execution of this
Agreement and the exercise and performance of its duties hereunder. The Company also agrees to indemnify the Rights Agent for, and to hold it harmless against, any loss, liability, or expense incurred without gross negligence, bad faith or willful
misconduct on the part of the Rights Agent, for anything done or omitted by the Rights Agent in connection with the acceptance and administration of this Agreement, including the costs and expenses of defending against any claim of liability in the
premises. 
 The Rights Agent shall be protected and shall incur no liability for, or in respect of any action taken, suffered or omitted by
it in connection with, its administration of this Agreement in reliance upon any Right Certificate or certificate for the Preferred Shares or Common Shares or for other securities of the Company, instrument of assignment or transfer, power of
attorney, endorsement, affidavit, letter, notice, direction, consent, certificate, statement, or other paper or document believed by it to be genuine and to be signed, executed and, where necessary, verified or acknowledged, by the proper Person or
Persons, or otherwise upon the advice of counsel as set forth in Section 20. 
 Section 19. Merger or Consolidation or Change
of Name of Rights Agent. 
 (a) Any corporation into which the Rights Agent or any successor Rights Agent may be merged
or with which it may effect a share exchange, be consolidated, or any Person resulting from any merger, share exchange, or consolidation to which the Rights Agent or any successor Rights Agent shall be a party, or any Person succeeding to the stock
transfer or corporate trust powers of the Rights Agent or any successor Rights Agent, shall be the successor to the Rights Agent under this Agreement without the execution or filing of any paper or document or any further act on the part of any of
the parties hereto; provided that such Person would be eligible for appointment as a successor Rights Agent under the provisions of Section 21. In case at the time such successor Rights Agent shall succeed to the agency created by this
Agreement, any of the Right Certificates shall have been countersigned but not delivered, any such successor Rights Agent may adopt the countersignature of the predecessor Rights Agent and deliver such Right Certificates so countersigned; and, in
case at that time any of the Right Certificates shall not have been countersigned, any successor Rights Agent may countersign such Right Certificates either in the name of the predecessor Rights Agent or in the name of the successor Rights Agent;
and, in all such cases, such Right Certificates shall have the full force provided in the Right Certificates and in this Agreement. 

(b) In case at any time the name of the Rights Agent shall be changed and at such time any of the Right Certificates shall have
been countersigned but not delivered, the Rights Agent may adopt the countersignature under its prior name and deliver Right Certificates so countersigned; and, in case at that time any of the Right Certificates shall not have been countersigned,
the Rights Agent may countersign such Right Certificates either in its prior name or in its changed name; and, in all such cases, such Right Certificates shall have the full force provided in the Right Certificates and in this Agreement. 

  
 25 

 Section 20. Duties of Rights Agent. The Rights Agent undertakes the duties and
obligations imposed by this Agreement upon the following terms and conditions, by all of which the Company and the holders of Right Certificates, by their acceptance thereof, shall be bound: 

(a) The Rights Agent may consult with legal counsel (who may be legal counsel for the Company), and the opinion of such counsel
shall be full and complete authorization and protection to the Rights Agent as to any action taken or omitted by it in good faith and in accordance with such opinion. 

(b) Whenever in the performance of its duties under this Agreement the Rights Agent shall deem it necessary or desirable that
any fact or matter be proved or established by the Company prior to taking or suffering any action hereunder, such fact or matter (unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be conclusively proved
and established by a certificate signed by any one of the Chairman of the Board, the Chief Executive Officer, the President, any Vice President, the Treasurer, the Secretary or any Assistant Secretary of the Company and delivered to the Rights
Agent; and such certificate shall be full authorization to the Rights Agent for any action taken or suffered in good faith by it under the provisions of this Agreement in reliance upon such certificate. 

(c) The Rights Agent shall be liable hereunder to the Company and any other Person only for its own gross negligence, bad faith
or willful misconduct. 
 (d) The Rights Agent shall not be liable for or by reason of any of the statements of fact or
recitals contained in this Agreement or in the Right Certificates (except its countersignature thereof) or be required to verify the same, but all such statements and recitals are and shall be deemed to have been made by the Company only. 

(e) The Rights Agent shall not be under any responsibility in respect of the validity of this Agreement or the execution and
delivery hereof (except the due execution hereof by the Rights Agent) or in respect of the validity or execution of any Right Certificate (except its countersignature thereof); nor shall it be responsible for any breach by the Company of any
covenant or condition contained in this Agreement or in any Right Certificate; nor shall it be responsible for any change in the exercisability of the Rights (including the Rights becoming void pursuant to Section 11(a)(ii)) or any adjustment
in the terms of the Rights (including the manner, method or amount thereof) provided for in Section 3, 11, 13, 23 or 24, or the ascertaining of the existence of facts that would require any such change or adjustment (except with respect to the
exercise of Rights evidenced by Right Certificates after receipt of a certificate pursuant to Section 12 describing such change or adjustment); nor shall it by any act hereunder be deemed to make any representation or warranty as to the
authorization or reservation of any Preferred Shares to be issued pursuant to this Agreement or any Right Certificate or as to whether any Preferred Shares will, when issued, be validly authorized and issued, fully paid and nonassessable. 

  
 26 

 (f) The Company agrees that it will perform, execute, acknowledge and deliver or
cause to be performed, executed, acknowledged and delivered all such further and other acts, instruments and assurances as may reasonably be required by the Rights Agent for the carrying out or performing by the Rights Agent of the provisions of
this Agreement. 
 (g) The Rights Agent is hereby authorized and directed to accept instructions with respect to the
performance of its duties hereunder from any one of the Chairman of the Board, the Chief Executive Officer, the President, any Vice President, the Secretary, any Assistant Secretary, the Treasurer or any Assistant Treasurer of the Company, and to
apply to such officers for advice or instructions in connection with its duties, and it shall not be liable for any action taken or suffered by it in good faith in accordance with instructions of any such officer or for any delay in acting while
waiting for those instructions. 
 (h) The Rights Agent and any stockholder, director, officer or employee of the Rights
Agent may buy, sell or deal in any of the Rights or other securities of the Company or become pecuniarily interested in any transaction in which the Company may be interested, or contract with or lend money to the Company or otherwise act as fully
and freely as though it were not Rights Agent under this Agreement. Nothing herein shall preclude the Rights Agent from acting in any other capacity for the Company or for any other Person. 

(i) The Rights Agent may execute and exercise any of the rights or powers hereby vested in it or perform any duty hereunder
either itself or by or through its attorneys or agents, and the Rights Agent shall not be answerable or accountable for any act, default, neglect or misconduct of any such attorneys or agents or for any loss to the Company or any other Person
resulting from any such act, default, neglect or misconduct, provided that reasonable care was exercised in the selection and continued employment thereof. 

(j) If, with respect to any Right Certificate surrendered to the Rights Agent for exercise or transfer, the certificate
attached to the form of assignment or form of election to purchase, as the case may be, has either not been completed or indicates an affirmative response to clause 1 or 2 thereof, the Rights Agent shall not take any further action with respect to
such requested exercise or transfer without first consulting with the Company. 
 Section 21. Change of Rights Agent. The Rights
Agent or any successor Rights Agent may resign and be discharged from its duties under this Agreement upon 30 days’ notice in writing mailed to the Company and, in the event that the Rights Agent or one of its Affiliates is not also the
transfer agent for the Company, to each transfer agent of the Common Shares or Preferred Shares by registered or certified mail,. In the event the transfer agency relationship in effect between the Company and the Rights Agent terminates, the Rights
Agent will be deemed 

  
 27 

 
to have resigned automatically and be discharged from its duties under this Agreement as of the effective date of such termination, and the Company shall be responsible for sending any required
notice. The Company may remove the Rights Agent or any successor Rights Agent (with or without cause) upon 30 days’ notice in writing, mailed to the Rights Agent or successor Rights Agent, as the case may be, and to each transfer agent of the
Common Shares or Preferred Shares by registered or certified mail, and, if such removal occurs after the Distribution Date, to the holders of the Right Certificates by first-class mail. If the Rights Agent shall resign or be removed or shall
otherwise become incapable of acting, the Company shall appoint a successor to the Rights Agent. If the Company shall fail to make such appointment within a period of 30 days after giving notice of such removal or after it has been notified in
writing of such resignation or incapacity by the resigning or incapacitated Rights Agent or by the holder of a Right Certificate (which holder shall, with such notice, submit such holder’s Right Certificate for inspection by the Company), then
the registered holder of any Right Certificate may apply to any court of competent jurisdiction for the appointment of a new Rights Agent. Any successor Rights Agent, whether appointed by the Company or by such a court, shall be either (a) a
Person organized and doing business under the laws of the United States or of the State of New York (or of any other state of the United States so long as such Person is authorized to do business as a banking institution in such state), in good
standing, which is authorized under such laws to exercise corporate trust or stock transfer powers and is subject to supervision or examination by federal or state authority and which has at the time of its appointment as Rights Agent a combined
capital and surplus of at least $50 million or (b) an Affiliate or direct or indirect wholly-owned Subsidiary of such Person or its wholly-owning parent. After appointment, the successor Rights Agent shall be vested with the same powers,
rights, duties and responsibilities as if it had been originally named as Rights Agent without further act or deed; but the predecessor Rights Agent shall deliver and transfer to the successor Rights Agent any property at the time held by it
hereunder, and execute and deliver any further assurance, conveyance, act or deed necessary for the purpose. Not later than the effective date of any such appointment, the Company shall file notice thereof in writing with the predecessor Rights
Agent and each transfer agent of the Common Shares or Preferred Shares, and, if such appointment occurs after the Distribution Date, mail a notice thereof in writing to the registered holders of the Right Certificates. Failure to give any notice
provided for in this Section 21, however, or any defect therein, shall not affect the legality or validity of the resignation or removal of the Rights Agent or the appointment of the successor Rights Agent, as the case may be. 

Section 22. Issuance of New Right Certificates. Notwithstanding any of the provisions of this Agreement or of the Rights to the
contrary, the Company may, at its option, issue new Right Certificates evidencing Rights in such form as may be approved by the Board of Directors of the Company to reflect any adjustment or change in the Purchase Price and the number or kind or
class of shares or other securities or property purchasable under the Right Certificates made in accordance with the provisions of this Agreement. 

Section 23. Redemption. 

(a) The Board of Directors of the Company may, at its option, at any time prior to the earlier of (i) the Close of
Business on the tenth day following the Shares Acquisition Date (or if the Shares Acquisition Date shall have occurred prior to the Record Date, the Close of Business on the tenth day following the Record Date) or
(ii)

  
 28 

 
the Final Expiration Date, redeem all but not less than all the then outstanding Rights at a redemption price of $0.001 per Right, appropriately adjusted to reflect any stock split, stock
dividend or similar transaction occurring after the date hereof (such redemption price being hereinafter referred to as the “Redemption Price”). Notwithstanding anything contained in this Agreement to the contrary, the Rights shall
not be exercisable after the first occurrence of a Flip-in Event until such time as the Company’s right of redemption hereunder has expired. The Company may, at its option, pay the Redemption Price in cash, Common Shares (based on the current
market price of the Common Shares at the time of redemption) or any other form of consideration deemed appropriate by the Board of Directors of the Company. The redemption of the Rights by the Board of Directors of the Company may be made effective
at such time, on such basis and with such conditions as the Board of Directors of the Company, in its sole discretion, may establish. 

(b) Immediately upon the action of the Board of Directors of the Company ordering the redemption of the Rights pursuant to
Section 23(a) (or, if the resolutions of the Board of Directors electing to redeem the Rights state that the redemption will not be effective until a specified future time or the occurrence of a specified future event, at such future time or
upon the occurrence of such future event), evidence of which shall have been filed with the Rights Agent, and without any further action and without any notice, the right to exercise the Rights will terminate and the only right thereafter of the
holders of Rights shall be to receive the Redemption Price for each Right so held. The Company shall promptly give public notice of any such redemption; provided, however, that the failure to give, or any defect in, any such notice
shall not affect the validity of such redemption. Within 10 days after such action of the Board of Directors of the Company ordering the redemption of the Rights, the Company shall mail a notice of redemption to all the holders of the then
outstanding Rights at their last addresses as they appear upon the registry books of the Rights Agent or, prior to the Distribution Date, on the registry books of the transfer agent for the Common Shares. Any notice which is mailed in the manner
herein provided shall be deemed given, whether or not the holder receives the notice. Each such notice of redemption will state the method by which the payment of the Redemption Price will be made. 

Section 24. Exchange. 

(a) The Board of Directors of the Company may, at its option, at any time after any Person becomes an Acquiring Person,
exchange all or part of the then outstanding and exercisable Rights (which shall not include Rights that have become void pursuant to the provisions of Section 11(a)(ii)) for Common Shares of the Company at an exchange ratio of one Common Share
per Right, appropriately adjusted to reflect any adjustment in the number of Rights pursuant to Section 11(i) (such exchange ratio being hereinafter referred to as the “Exchange Ratio”). Notwithstanding the foregoing, the Board
of Directors of the Company shall not be empowered to effect such exchange at any time after any Person (other than the Company, any Subsidiary of the Company, any employee benefit plan of the Company or any such Subsidiary, any entity holding
Common Shares for or pursuant to the terms of any such plan, or any trustee, administrator or fiduciary of any such plan appointed by the Company), together with all Affiliates and Associates of such Person, becomes the Beneficial Owner of 50% or
more 

  
 29 

 
of the Common Shares of the Company then outstanding. Before effecting an exchange pursuant to this Section 24, the Board of Directors of the Company may direct the Company to enter into a
trust agreement in such form and with such terms as the Board shall then approve (the “Trust Agreement”). If the Board so directs, the Company shall enter into the Trust Agreement and shall issue to the trust created by such
agreement (the “Trust”) all or some (as designated by the Board) of the Common Shares (or other securities) issuable pursuant to the exchange, and all or some (as designated by the Board) holders of Rights entitled to receive shares
pursuant to the exchange shall be entitled to receive such shares (and any dividends paid or distributions made thereon after the date on which such shares are deposited in the Trust) only from the Trust and solely upon compliance with the relevant
terms and provisions of the Trust Agreement. 
 (b) Immediately upon the action of the Board of Directors of the Company
ordering the exchange of any Rights pursuant to Section 24(a) and without any further action and without any notice, the right to exercise such Rights shall terminate and the only right thereafter of a holder of such Rights shall be to receive
that number of Common Shares of the Company equal to the number of such Rights held by such holder multiplied by the Exchange Ratio. The Company shall promptly give public notice of any such exchange; provided, however, that the
failure to give, or any defect in, such notice shall not affect the validity of such exchange. The Company promptly shall mail a notice of any such exchange to all of the holders of such Rights at their last addresses as they appear upon the
registry books of the Rights Agent. Any notice which is mailed in the manner herein provided shall be deemed given, whether or not the holder receives the notice. Each such notice of exchange will state the method by which the exchange of the Common
Shares of the Company for Rights will be effected, and, in the event of any partial exchange, the number of Rights which will be exchanged. Any partial exchange shall be effected pro rata based on the number of Rights (other than
Rights which have become void pursuant to the provisions of Section 11(a)(ii)) held by each holder of Rights. Prior to effecting any exchange and registering Common Shares (or such other securities) in any Person’s name, including any
nominee or transferee of a Person, the Company may require (or cause the trustee of the Trust to require), as a condition thereof, that any holder of Rights provide evidence, including the identity of the Beneficial Owners thereof and their
Affiliates and Associates (or former Beneficial Owners thereof and their Affiliates and Associates) as the Company shall reasonably request in order to determine if such Rights are null and void. If any Person shall fail to comply with such request,
the Company shall be entitled conclusively to deem the Rights formerly held by such Person to be null and void pursuant to Section 7(e). 

(c) In any exchange pursuant to this Section 24, the Company, at its option, may substitute Preferred Shares (or
“equivalent preferred shares”, as such term is defined in Section 11(b)) for Common Shares exchangeable for Rights, at the initial rate of one one thousandth of a Preferred Share (or equivalent preferred shares) for each Common Share,
as appropriately adjusted to reflect adjustments in the voting rights of the Preferred Shares pursuant to the terms thereof, so that the fraction of a Preferred Share delivered in lieu of each Common Share shall have the same voting rights as one
Common Share. 

  
 30 

 (d) In the event that there shall not be sufficient Common Shares of the Company
issued but not outstanding or authorized but unissued to permit any exchange of Rights as contemplated in accordance with this Section 24, the Company shall take all such action as may be necessary to authorize additional Common Shares of the
Company for issuance upon exchange of the Rights. In the event the Company shall, after good faith effort, be unable to take all such action as may be necessary to authorize such additional Common Shares of the Company, the Company shall substitute,
for each Common Share that would otherwise be issuable upon exchange of a Right, a number of preferred shares or fraction thereof such that the current per share market price of one preferred share multiplied by such number or fraction is equal to
the current per share market price of one Common Share as of the date of issuance of such preferred shares or fraction thereof. 

(e) The Company shall not be required to issue fractions of Common Shares of the Company or to distribute certificates which
evidence fractional Common Shares of the Company. In lieu of such fractional Common Shares of the Company, the Company shall pay to the registered holders of the Right Certificates with regard to which such fractional Common Shares of the Company
would otherwise be issuable an amount in cash equal to the same fraction of the current market value of a whole Common Share. For the purposes of this Section 24(e), the current market value of a whole Common Share shall be the closing price of
a Common Share (as determined pursuant to the second sentence of Section 11(d)(i)) for the Trading Day immediately prior to the date of exchange pursuant to this Section 24. 

Section 25. Notice of Certain Events. 

(a) In case the Company shall, at any time after the Distribution Date, propose (i) to pay any dividend payable in stock
of any class to the holders of the Preferred Shares or to make any other distribution to the holders of the Preferred Shares (other than a regular quarterly cash dividend), (ii) to offer to the holders of the Preferred Shares rights or warrants
to subscribe for or to purchase any additional Preferred Shares or shares of stock of any class or any other securities, rights or options, (iii) to effect any reclassification of the Preferred Shares (other than a reclassification involving
only the subdivision of outstanding Preferred Shares), (iv) to effect any share exchange, consolidation or merger into or with any other Person (other than a Subsidiary of the Company in a transaction which complies with Section 11(o)), or
to effect any sale or other transfer (or to permit one or more of its Subsidiaries to effect any sale or other transfer), in one or more transactions, of 50% or more of the assets or earning power of the Company and its Subsidiaries (taken as a
whole) to, any other Person, or (v) to effect the liquidation, dissolution or winding up of the Company, then, in each such case, the Company shall give to each holder of a Right Certificate, in accordance with Section 26, a notice of such
proposed action, which shall specify the record date for the purposes of such stock dividend, or distribution of rights or warrants, or the date on which such reclassification, share exchange, consolidation, merger, sale, transfer, liquidation,
dissolution, or winding up is to take place and the date of participation therein by the holders of the Common Shares of the Company and/or Preferred Shares, if any such date is to be fixed, and such notice shall be so given in the case of any
action covered by 

  
 31 

 
clause (i) or (ii) above at least 20 days prior to the record date for determining holders of the Preferred Shares for purposes of such action, and, in the case of any such other
action, at least 20 days prior to the date of the taking of such proposed action or the date of participation therein by the holders of the Common Shares of the Company and/or Preferred Shares, whichever shall be the earlier. 

(b) In case a Flip-In Event shall occur, then the Company shall, as soon as practicable thereafter, give to each holder of a
Right Certificate, in accordance with Section 26, a notice of the occurrence of such event, which notice shall describe such event and the consequences of such event to holders of Rights under Section 11(a)(ii). 

Section 26. Notices. Notices or demands authorized by this Agreement to be given or made by the Rights Agent or by the holder of
any Right Certificate to or on the Company shall be sufficiently given or made if in writing and sent by overnight delivery service or first-class mail, postage prepaid, addressed (until another address is filed in writing with the Rights Agent) as
follows: 
 Carbonite, Inc. 

2 Avenue de Lafayette, 6th Floor 

Boston, MA 02110 
 Attention:
Danielle Sheer, Corporate Secretary 
 with copy to: 

Foley & Lardner LLP 

111 Huntington Avenue 
 Boston,
Massachusetts 02199 
 Attention: Susan E. Pravda, Esq. 

Subject to the provisions of Section 21, any notice or demand authorized by this Agreement to be given or made by the Company or by the
holder of any Right Certificate to or on the Rights Agent shall be sufficiently given or made if in writing and sent by overnight delivery service or first-class mail, postage prepaid, addressed (until another address is filed in writing with the
Company) as follows: 
 American Stock Transfer & Trust Company, LLC 

6201 15th Avenue 

Brooklyn, NY 11219 
 Attention:
Relationship Manager 
 Notices or demands authorized by this Agreement to be given or made by the Company or the Rights Agent to the holder
of any Right Certificate shall be sufficiently given or made if sent by first-class mail, postage prepaid, addressed to such holder at the address of such holder as shown on the registry books of the Company. 

Section 27. Supplements and Amendments. The Company and the Rights Agent may from time to time supplement or amend this Agreement
without the approval of any holders of Rights (a) prior to the Shares Acquisition Date, in any respect, and (b) on or after the Shares 

  
 32 

 
Acquisition Date, (i) to cure any ambiguity, (ii) to correct or supplement any provision contained herein which may be defective or inconsistent with any other provisions herein or
(iii) to make any changes that the Company may deem necessary or desirable that shall not materially adversely affect the interests of the holders of Rights (other than the Acquiring Person, any Affiliate or Associate thereof or any transferee
of any Acquiring Person or any Affiliate or Associate thereof), any such supplement or amendment to be evidenced by a writing signed by the Company and the Rights Agent. For the avoidance of doubt, the Company shall be entitled to adopt and
implement such procedures and arrangements (including with third parties) as it may deem necessary or desirable to facilitate the exercise, exchange, trading, issuance or distribution of the Rights (and the Preferred Shares issuable and deliverable
upon the exercise of the Rights) as contemplated hereby and to ensure that an Acquiring Person and its Affiliates, Associates and transferees do not obtain the benefits thereof, and any amendment in respect of the foregoing shall not be deemed to
adversely affect the interests of the holders of Rights. Upon the delivery of a certificate from an appropriate officer of the Company which states that the proposed supplement or amendment is in compliance with the terms of this Section 27,
the Rights Agent shall execute such supplement or amendment unless the Rights Agent shall have determined in good faith that such supplement or amendment would adversely affect its interests under this Agreement. 

Section 28. Successors. All the covenants and provisions of this Agreement by or for the benefit of the Company or the Rights
Agent shall bind and inure to the benefit of their respective successors and assigns hereunder. 
 Section 29. Determinations and
Actions by the Board of Directors. For all purposes of this Agreement, any calculation of the number of Common Shares of the Company outstanding at any particular time, including for purposes of determining the particular percentage of such
outstanding Common Shares of which any Person is the Beneficial Owner, shall be made in accordance with the last sentence of Rule 13d-3(d)(1)(i) of the General Rules and Regulations under the Exchange Act. The Board of Directors of the Company shall
have the exclusive power and authority to administer this Agreement and to exercise all rights and powers specifically granted to the Board of Directors or to the Company, or as may be necessary or advisable in the administration of this Agreement,
including, without limitation, the right and power to (i) interpret the provisions of this Agreement, and (ii) make all determinations deemed necessary or advisable for the administration of this Agreement (including, without limitation, a
determination to redeem or not redeem the Rights or to amend the Agreement and any determination as to whether actions or any Person shall be such as to cause such Person to Beneficially Own shares held by another Person). All such actions,
calculations, interpretations and determinations (including, for purposes of clause (A) below, all omissions with respect to the foregoing) which are done or made by the Board of Directors of the Company in good faith, shall (A) be final,
conclusive and binding on the Company, the Rights Agent, the holders of the Rights and all other parties, and (B) not subject the Board of Directors of the Company to any liability to the holders of the Rights or to any other Person. 

Section 30. Benefits of this Agreement. Nothing in this Agreement shall be construed to give to any Person other than the Company,
the Rights Agent and the registered holders of the Right Certificates (and, prior to the Distribution Date, the Common Shares of the Company) any legal or equitable right, remedy or claim under this Agreement; but this Agreement shall be for the
sole and exclusive benefit of the Company, the Rights Agent and the registered holders of the Right Certificates (and, prior to the Distribution Date, the Common Shares of the Company). 

  
 33 

 Section 31. Severability. If any term, provision, covenant or restriction of this
Agreement or the Rights is held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement and the Rights shall remain in full
force and effect and shall in no way be affected, impaired or invalidated; provided, however, that notwithstanding anything in this Agreement to the contrary, if any such term, provision, covenant or restriction is held by such court
or authority to be invalid, void or unenforceable and the Board of Directors of the Company determines in its good faith judgment that severing the invalid language from this Agreement or the Rights would adversely affect the purpose or effect of
this Agreement, the right of redemption set forth in Section 23 shall be reinstated and shall not expire until the Close of Business on the tenth day following the date of such determination by the Board of Directors of the Company. 

Section 32. Governing Law. This Agreement, each Right and each Right Certificate issued hereunder shall be deemed to be a contract
made under the laws of the State of Delaware and for all purposes shall be governed by and construed in accordance with the laws of such State applicable to contracts to be made and performed entirely within such State. The Company and each holder
of Rights hereby irrevocably submits to the exclusive jurisdiction of the Court of Chancery of the State of Delaware, or, if such court shall lack subject matter jurisdiction, the United States District Court for the District of Delaware, over any
suit, action or proceeding arising out of or relating to this Agreement. The Company and each holder of Rights acknowledge that the forum designated by this Section 32 has a reasonable relation to this Agreement and to such Persons’
relationship with one another. The Company and each holder of Rights hereby waive, to the fullest extent permitted by applicable law, any objection which they now or hereafter have to personal jurisdiction or to the laying of venue of any such suit,
action or proceeding brought in any court referred to in this Section 32. The Company and each holder of Rights undertake not to commence any action subject to this Agreement in any forum other than the forum described in this Section 32.
The Company and each holder of Rights agree that, to the fullest extent permitted by applicable law, a final and non-appealable judgment in any such suit, action or proceeding brought in any such court shall be conclusive and binding upon such
Persons. 
 Section 33. Counterparts. This Agreement may be executed in any number of counterparts and each of such counterparts
shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument. A signature to this Agreement transmitted electronically shall have the same authority, effect, and
enforceability as an original signature. 
 Section 34. Descriptive Headings; Section References. Descriptive headings of the
several Sections of this Agreement are inserted for convenience only and shall not control or affect the meaning or construction of any of the provisions hereof. All references in this Agreement to Sections mean the Section of this Agreement. 

  
 34 

 Section 35. Force Majeure. Notwithstanding anything to the contrary contained herein,
the Rights Agent shall not be liable for any delays or failures in performance resulting from acts beyond its reasonable control including, without limitation, acts of God, terrorist acts, shortage of supply, breakdowns or malfunctions,
interruptions or malfunctions of computer facilities, or loss of data due to power failures or mechanical difficulties with information storage or retrieval systems, labor difficulties, war or civil unrest. 

  
 35 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and
attested, all as of the day and year first above written. 
  

			
	CARBONITE, INC.
		
	By:	 	 /s/ Mohamad Ali

	Name: Mohamad Ali
	Title: President and Chief Executive Officer
	
	AMERICAN STOCK TRANSFER & TRUST COMPANY, LLC
		
	By:	 	 /s/ Michael A. Nespoli

	Name: Michael A. Nespoli
	Title: Executive Director

  
 36 

 Exhibit A 

CERTIFICATE OF DESIGNATIONS, PREFERENCES AND RIGHTS 

OF 
 SERIES A JUNIOR
PARTICIPATING PREFERRED STOCK 
 OF 

CARBONITE, INC. 
 The
undersigned, Danielle Sheer, the Vice President, General Counsel and Secretary of Carbonite, Inc. (the “Corporation”), a corporation organized and existing under the General Corporation Law of the State of Delaware, does hereby certify
that, pursuant to the authority conferred upon the Board of Directors of the Corporation by the Corporation’s Amended and Restated Certificate of Incorporation to issue shares of preferred stock in series by distinct designation by the Board of
Directors of the Corporation, and pursuant to the provisions of Section 151 of the General Corporation Law of the State of Delaware, the Board of Directors on January 8, 2015 adopted the following resolution creating a series of forty-five
thousand (45,000) shares of preferred stock designated as Series A Junior Participating Preferred Stock: 
 RESOLVED, that,
pursuant to the authority vested in the Board of Directors in accordance with the provisions of the Corporation’s Amended and Restated Certificate of Incorporation and the Delaware General Corporation Law, a series of Preferred Stock, par value
$0.01 per share, of the Corporation be and it hereby is created, and that the designation and number of shares and relative rights and preferences thereof are as set forth below: 

Series A Junior Participating Preferred Stock 

(1) Designation and Amount. There is hereby created a series of Preferred Stock that shall be designated as “Series A Junior
Participating Preferred Stock”, par value $0.01 per share (the “Series A Preferred Stock”), and the number of shares constituting such series shall be 45,000. Such number of shares may be increased or decreased by resolution of
the Board of Directors; provided that no decrease shall reduce the number of shares of Series A Preferred Stock to a number less than the number of shares then outstanding plus the number of shares reserved for issuance upon the exercise of
outstanding options, rights or warrants or upon the conversion of any outstanding securities issued by the Corporation into Series A Preferred Stock. 

(2) Dividends and Distributions. 

(A) Subject to the prior and superior rights of the holders of any shares of any series of Preferred Stock ranking prior and superior to the
shares of Series A Preferred Stock with respect to dividends, the holders of Series A Preferred Stock shall be entitled to receive, when, as and if declared by the Board of Directors out of funds legally available for the purpose, quarterly
dividends payable in cash on the first business days of January, April, July 

  
 A-1 

 
and October in each year (each such date being referred to herein as a “Quarterly Dividend Payment Date”), commencing on the first Quarterly Dividend Payment Date after the first
issuance of a share or fraction of a share of Series A Preferred Stock, in an amount per share (rounded to the nearest cent) equal to the greater of (i) $1.00 or (ii) subject to the provision for adjustment hereinafter set forth,
1,000 times the aggregate per share amount of all cash dividends, and 1,000 times the aggregate per share amount (payable in kind) of all noncash dividends or other distributions, other than a dividend payable in shares of Common Stock or a
subdivision of the outstanding shares of Common Stock (by reclassification or otherwise), declared on the Common Stock since the immediately preceding Quarterly Dividend Payment Date, or, with respect to the first Quarterly Payment Date, since the
first issuance of any share or fraction of a share of Series A Preferred Stock. In the event the Corporation shall at any time after January 20, 2015 (the “Rights Declaration Date”) (a) declare any dividend on Common Stock
payable in shares of Common Stock, (b) subdivide the outstanding Common Stock, or (c) combine the outstanding Common Stock into a smaller number of shares, then in each such case the amount to which holders of shares of Series A
Preferred Stock were entitled immediately prior to such event under clause (ii) of the preceding sentence shall be adjusted by multiplying such amount by a fraction the numerator of which is the number of shares of Common Stock that are
outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event. 

(B) The Corporation shall declare a dividend or distribution on the Series A Preferred Stock as provided in paragraph (A) above
immediately after it declares a dividend or distribution on the Common Stock (other than a dividend payable in shares of Common Stock); provided that, in the event no dividend or distribution shall have been declared on the Common Stock
during the period between any Quarterly Dividend Payment Date and the next subsequent Quarterly Dividend Payment Date, subject to the prior and superior rights of the holders of any shares of any series of Preferred Stock ranking prior and superior
to the shares of Series A Preferred Stock with respect to dividends, a dividend of $1.00 per share on the Series A Preferred Stock shall nevertheless be payable on such subsequent Quarterly Dividend Payment Date. 

(C) Dividends shall begin to accrue and be cumulative on outstanding shares of Series A Preferred Stock from the Quarterly Dividend
Payment Date next preceding the date of issue of such shares of Series A Preferred Stock, unless the date of issue of such shares is prior to the record date for the first Quarterly Dividend Payment Date, in which case dividends on such shares
shall begin to accrue from the date of issue of such shares, or unless the date of issue is a Quarterly Dividend Payment Date or is a date after the record date for the determination of holders of shares of Series A Preferred Stock entitled to
receive a quarterly dividend and before such Quarterly Dividend Payment Date, in either of which events such dividends shall begin to accrue and be cumulative from such Quarterly Dividend Payment Date. Accrued but unpaid dividends shall not bear
interest. Dividends paid on the shares of Series A Preferred Stock in an amount less than the total amount of such dividends at the time accrued and payable on such shares shall be allocated pro rata on a share-by-share basis among all such shares at the time outstanding. The Board of Directors may fix a record date for the determination of holders of shares of Series A Preferred Stock entitled to receive
payment of a dividend or distribution declared thereon, which record date shall be no more than 30 days prior to the date fixed for the payment thereof. 

  
 A-2 

 (3) Voting Rights. The holders of shares of Series A Preferred Stock shall have the
following voting rights: 
 (A) Subject to the provision for adjustment hereinafter set forth, each share of Series A Preferred Stock
shall entitle the holder thereof to 1,000 votes on all matters submitted to a vote of the stockholders of the Corporation. In the event the Corporation shall at any time after the Rights Declaration Date declare or pay any dividend on Common Stock
payable in shares of Common Stock, or effect a subdivision or combination or consolidation of the outstanding shares of Common Stock (by reclassification or otherwise than by payment of a dividend in shares of Common Stock) into a greater or lesser
number of shares of Common Stock, then in each such case the number of votes per share to which holders of shares of Series A Preferred Stock were entitled immediately prior to such event shall be adjusted by multiplying such number by a
fraction the numerator of which is the number of shares of Common Stock that are outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event.

 (B) Except as otherwise provided herein, in any other resolution of the Board of Directors creating a series of Preferred Stock or any
similar stock, or by law, the holders of shares of Series A Preferred Stock and the holders of shares of Common Stock shall vote together as one class on all matters submitted to a vote of stockholders of the Corporation. 

(C) Except as set forth herein, holders of Series A Preferred Stock shall have no special voting rights and their consent shall not be
required (except to the extent they are entitled to vote with holders of Common Stock as set forth herein) for taking any corporate action. 

(4) Certain Restrictions. 

(A) Whenever quarterly dividends or other dividends or distributions payable on the Series A Preferred Stock as provided in
Section 2 are in arrears, thereafter and until all accrued and unpaid dividends and distributions, whether or not declared, on shares of Series A Preferred Stock outstanding shall have been paid in full, the Corporation shall not: 

(i) declare or pay dividends on, make any other distributions on, or redeem or purchase or otherwise acquire for consideration any shares of
stock ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to the Series A Preferred Stock; 
 (ii)
declare or pay dividends on or make any other distributions on any shares of stock ranking on a parity (either as to dividends or upon liquidation, dissolution or winding up) with the Series A Preferred Stock, except dividends paid ratably on
the Series A Preferred Stock and all such parity stock on which dividends are payable or in arrears in proportion to the total amounts to which the holders of all such shares are then entitled; 

(iii) redeem or purchase or otherwise acquire for consideration shares of any stock ranking on a parity (either as to dividends or upon
liquidation, dissolution or winding up) with the Series A Preferred Stock, provided that the Corporation may at any time redeem, purchase or otherwise acquire shares of any such parity stock in exchange for shares of any stock of the
Corporation ranking junior to or on a parity with (both as to dividends or upon dissolution, liquidation or winding up) the Series A Preferred Stock; or 

  
 A-3 

 (iv) purchase or otherwise acquire for consideration any shares of Series A Preferred
Stock, or any shares of stock ranking on a parity with the Series A Preferred Stock, except in accordance with a purchase offer made in writing or by publication (as determined by the Board of Directors) to all holders of such shares upon such
terms as the Board of Directors, after consideration of the respective annual dividend rates and other relative rights and preferences of the respective series and classes, shall determine in good faith will result in fair and equitable treatment
among the respective series or classes. 
 (B) The Corporation shall not permit any corporation of which an amount of voting securities
sufficient to elect at least a majority of the directors of such corporation is beneficially owned, directly or indirectly, by the Corporation or otherwise controlled by the Corporation to purchase or otherwise acquire for consideration any shares
of stock of the Corporation unless the Corporation could, under paragraph (A) of this Section 4, purchase or otherwise acquire such shares at such time and in such manner. 

(5) Reacquired Shares. All shares of Series A Preferred Stock that shall at any time have been reacquired by the Corporation shall,
after such reacquisition, have the status of authorized but unissued shares of Preferred Stock of the Corporation, without designation as to series, and may be reissued as part of a new series of Preferred Stock to be created by resolution or
resolutions of the Board of Directors, subject to the conditions and restrictions on issuance set forth herein. 
 (6) Liquidation,
Dissolution or Winding Up. Upon any liquidation, dissolution or winding up of the Corporation, no distribution shall be made (A) to the holders of shares of stock ranking junior (either as to dividends or upon liquidation, dissolution or
winding up) to the Series A Preferred Stock unless, prior thereto, the holders of shares of Series A Preferred Stock shall have received $100 per share, plus an amount equal to accrued and unpaid dividends and distributions thereon,
whether or not declared, to the date of such payment, provided that the holders of shares of Series A Preferred Stock shall be entitled to receive an aggregate amount per share, subject to the provision for adjustment hereinafter set
forth, equal to 1,000 times the aggregate amount to be distributed per share to holders of shares of Common Stock, or (B) to the holders of shares of stock ranking on a parity (either as to dividends or upon liquidation, dissolution or winding
up) with the Series A Preferred Stock, except distributions made ratably on the Series A Preferred Stock and all other such parity stock in proportion to the total amounts to which the holders of all such shares are entitled upon such
liquidation, dissolution or winding up. In the event the Corporation shall at any time declare or pay any dividend on the Common Stock payable in shares of Common Stock, or effect a subdivision or combination or consolidation of the outstanding
shares of Common Stock (by reclassification or otherwise than by payment of a dividend in shares of Common Stock) into a greater or lesser number of shares of Common Stock, then in each such case the aggregate amount to which holders of shares of
Series A Preferred Stock were entitled immediately prior to such event under the proviso in clause (A) of the preceding sentence shall be adjusted by multiplying such amount by a fraction the numerator of which is the number of shares of
Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event. 

  
 A-4 

 (7) Consolidation, Merger, etc. In case the Corporation shall enter into any
consolidation, merger, combination, share exchange or other transaction in which the shares of Common Stock are exchanged for or changed into other stock or securities, cash and/or any other property, then in any such case the shares of
Series A Preferred Stock shall at the same time be similarly exchanged or changed in an amount per share (subject to the provision for adjustment hereinafter set forth) equal to 1,000 times the aggregate amount of stock, securities, cash and/or
any other property (payable in kind), as the case may be, into which or for which each share of Common Stock is changed or exchanged. In the event the Corporation shall at any time after the Rights Declaration Date (A) declare any dividend on
Common Stock payable in shares of Common Stock, (B) subdivide the outstanding Common Stock, or (C) combine the outstanding shares of Common Stock into a smaller number of shares, then in each such case the amount set forth in the preceding
sentence with respect to the exchange or change of shares of Series A Preferred Stock shall be adjusted by multiplying such amount by a fraction the numerator of which is the number of shares of Common Stock that are outstanding immediately
after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event. 

(8) No Redemption. The shares of Series A Preferred Stock shall not be redeemable. 

(9) Amendment. To the fullest extent permitted by applicable law, prior to such time as shares of Series A Preferred Stock are
issued and outstanding, the Board of Directors may modify, amend, alter or revoke any of the number of shares of Series A Preferred Stock, the powers, preferences or special rights of the Series A Preferred Stock or the other terms of the
Series A Preferred Stock. From and after such time as shares of Series A Preferred Stock are issued and outstanding, the Amended and Restated Certificate of Incorporation of the Corporation shall not be amended in any manner that would
materially alter or change the powers, preferences or special rights of the Series A Preferred Stock so as to affect them adversely without the affirmative vote of the holders of at least two-thirds of the outstanding shares of Series A
Preferred Stock, voting together as a single class. 
 (10) Fractional Shares. Series A Preferred Stock may be issued in
fractions of a share which shall entitle the holder, in proportion to such holder’s fractional shares, to exercise voting rights, receive dividends, participate in distributions and to have the benefit of all other rights of holders of
Series A Preferred Stock. 
 (11) Ranking. The Series A Preferred Stock shall rank junior to all other series of the
Corporation’s Preferred Stock as to the payment of dividends and the distribution of assets, whether or not upon the dissolution, liquidation or winding up of the Corporation, unless the terms of any such series shall provide otherwise. 

  
 A-5 

 IN WITNESS WHEREOF, I have hereunto subscribed my name as of this 9th day of JANUARY, 2015. 
  

	
	 /s/ Danielle Sheer

	Name: Danielle Sheer
	Title: Vice President, General Counsel and Secretary

 Exhibit B 

Form of Right Certificate 
  

			
	Certificate No. R-	  	___ Rights                

 NOT EXERCISABLE AFTER JANUARY 8, 2016 OR EARLIER IF REDEMPTION OR EXCHANGE OCCURS. THE RIGHTS ARE SUBJECT TO REDEMPTION AT
$0.001 PER RIGHT AND TO EXCHANGE ON THE TERMS SET FORTH IN THE AGREEMENT. 
 Right Certificate 

CARBONITE, INC. 
 This certifies
that                     , or registered assigns, is the registered owner of the number of Rights set forth above, each of which entitles the owner
thereof, subject to the terms, provisions and conditions of the Agreement, dated as of January 9, 2015 (the “Agreement”), between Carbonite, Inc., a Delaware corporation (the “Company”), and American Stock
Transfer & Trust Company, LLC (the “Rights Agent”), to purchase from the Company at any time after the Distribution Date (as such term is defined in the Agreement) and prior to 5:00 P.M., New York, New York time, on
January 8, 2016 at the principal office of the Rights Agent, or at the office of its successor as Rights Agent, one one-thousandth of a fully paid non-assessable share of Series A Junior Participating Preferred Stock, par value $0.01 per share
(the “Preferred Shares”), of the Company, at a purchase price of $37.50 per one one-thousandth of a Preferred Share (the “Purchase Price”), upon presentation and surrender of this Right Certificate with the Form of
Election to Purchase duly executed. The number of Rights evidenced by this Right Certificate (and the number of one one-thousandths of a Preferred Share which may be purchased upon exercise hereof) set forth above, and the Purchase Price set forth
above, are the number and Purchase Price as of January 20, 2015, based on the Preferred Shares as constituted at such date. As provided in the Agreement, the Purchase Price and the number of one one-thousandths of a Preferred Share which may be
purchased upon the exercise of the Rights evidenced by this Right Certificate are subject to modification and adjustment upon the happening of certain events. 

This Right Certificate is subject to all of the terms, provisions and conditions of the Agreement, which terms, provisions and conditions are
hereby incorporated herein by reference and made a part hereof and to which Agreement reference is hereby made for a full description of the rights, limitations of rights, obligations, duties and immunities hereunder of the Rights Agent, the Company
and the holders of the Right Certificates. Copies of the Agreement are on file at the principal executive offices of the Company and the offices of the Rights Agent. 

This Right Certificate, with or without other Right Certificates, upon surrender at the principal office of the Rights Agent, may be exchanged
for another Right Certificate or Right Certificates of like tenor and date evidencing Rights entitling the holder to purchase a like aggregate number of Preferred Shares as the Rights evidenced by the Right Certificate or Right Certificates
surrendered shall have entitled such holder to purchase. If this Right Certificate shall be exercised in part, the holder shall be entitled to receive upon surrender hereof another Right Certificate or Right Certificates for the number of whole
Rights not exercised. 

  
 B-1 

 Subject to the provisions of the Agreement, the Rights evidenced by this Right Certificate in
each case at the option of the Company (i) may be redeemed by the Company at a redemption price of $0.001 per Right or (ii) may be exchanged in whole or in part for Preferred Shares, shares of the Company’s Common Stock, par value
$0.01 per share, or other securities of the Company. 
 No fractional Preferred Shares will be issued upon the exercise of any Right or
Rights evidenced hereby (other than fractions which are integral multiples of one one-thousandth of a Preferred Share, which may, at the election of the Company, be evidenced by depositary receipts), but, in lieu thereof, a cash payment will be
made, as provided in the Agreement. 
 No holder of this Right Certificate shall be entitled to vote or receive dividends or be deemed for
any purpose the holder of the Preferred Shares or of any other securities of the Company which may at any time be issuable on the exercise hereof, nor shall anything contained in the Agreement or herein be construed to confer upon the holder hereof,
as such, any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter submitted to stockholder at any meeting thereof, or to give or withhold consent to any corporate action, or to receive
notice of meetings or other actions affecting stockholders (except as provided in the Agreement), or to receive dividends or subscription rights, or otherwise, until the Right or Rights evidenced by this Right Certificate shall have been exercised
as provided in the Agreement. 
 This Right Certificate shall not be valid or obligatory for any purpose until it shall have been
countersigned by the Rights Agent. 
 WITNESS the facsimile signature of the proper officers of the Company and its corporate seal. Dated as
of: 
  

			
	CARBONITE, INC.
		
	By:	 	  

	Name:
	Title:
	
	AMERICAN STOCK TRANSFER & TRUST COMPANY, LLC
		
	By:	 	  

	Name:
	Title:

  
 B-2 

 Form of Reverse Side of Right Certificate 

FORM OF ASSIGNMENT 
 (To be
executed by the registered holder if such holder desires to transfer the Right Certificate.) 
 FOR VALUE RECEIVED
                                        
hereby sells, assigns and transfers unto 
  
  

(Please print name and address of transferee) 
  

 
 this Right Certificate, together with all right, title
and interest therein, and does hereby irrevocably constitute and appoint                      Attorney, to transfer the within Right
Certificate on the books of the within-named Company, with full power of substitution. 

Dated:                         
                
  

	
	  

	Signature

 Signature Guaranteed: 

Signatures must be guaranteed by a member or participant in the Securities Transfer Agent Medallion Program, the New York Stock Exchange Medallion Signature
Program or the Stock Exchange Medallion Program. 
 The undersigned hereby certifies by checking the appropriate boxes that: 

(1) this Right Certificate [    ] is [    ] is not being sold, assigned and transferred by or on behalf
of a Person who is or was an Acquiring Person or an Affiliate or Associate of an Acquiring person (as such terms are defined pursuant to the Rights Agreement); and 

(2) after due inquiry and to the best knowledge of the undersigned, it [    ] did [    ] did not
acquire the Rights evidenced by this Right Certificate from any Person who or which is, was or subsequently became an Acquiring Person or an Affiliate or Associate of an Acquiring Person. 

 

	
	  

	Signature

  
 B-3 

 Form of Reverse Side of Right Certificate – continued 

FORM OF ELECTION TO PURCHASE 

(To be executed if holder desires to exercise Rights represented by the Right Certificate.) 

To: CARBONITE, INC. 
 The undersigned hereby
irrevocably elects to exercise                      Rights represented by this Right Certificate to purchase the Preferred Shares issuable
upon the exercise of such Rights (or such other securities of the Company or of any other person which may be issuable upon the exercise of the Rights) and requests that certificates for such shares (or other securities) be issued in the name of:

 Please insert social security 
 or other identifying number

  
  

(Please print name and address) 
  

 
 If such number of Rights shall not be all the Rights
evidenced by this Right Certificate, a new Right Certificate for the balance remaining of such Rights shall be registered in the name of and delivered to: 

Please insert social security 
 or other identifying number 

 
  

(Please print name and address) 
  

 

Dated:                         
                
  

	
	  

	Signature

 Signature Guaranteed: 

Signatures must be guaranteed by a member or participant in the Securities Transfer Agent Medallion Program, the New York Stock Exchange
Medallion Signature Program or the Stock Exchange Medallion Program. 

  
 B-4 

 The undersigned hereby certifies by checking the appropriate boxes that: 

(1) this Right Certificate [ ] is [ ] is not being sold, assigned and transferred by or on behalf of a Person who is or was an Acquiring Person
or an Affiliate or Associate of an Acquiring person (as such terms are defined pursuant to the Rights Agreement); and 
 (2) after due
inquiry and to the best knowledge of the undersigned, it [ ] did [ ] did not acquire the Rights evidenced by this Right Certificate from any Person who or which is, was or subsequently became an Acquiring Person or an Affiliate or Associate of an
Acquiring Person. 
 Dated:
                                 

 

	
	  

	Signature

 NOTICE 

The signature in the Form of Assignment or Form of Election to Purchase, as the case may be, must conform to the name as written upon the face
of this Right Certificate in every particular, without alteration or enlargement or any change whatsoever. 
 In the event the certification
set forth above in the Form of Assignment or the Form of Election to Purchase, as the case may be, is not completed, the Company and the Rights Agent will deem the Beneficial Owner of the Rights evidenced by this Right Certificate to be an Acquiring
Person or an Affiliate or Associate thereof (as defined in the Agreement) and such Assignment or Election to Purchase will not be honored. 

  
 B-5 

 Exhibit C 

SUMMARY OF RIGHTS TO PURCHASE 

PREFERRED SHARES 
 On
January 8, 2015, the Board of Directors of Carbonite, Inc., a Delaware corporation (the “Company”), declared a dividend of one preferred share purchase right (a “Right”) for each outstanding share of common
stock, par value $0.01 per share (the “Common Stock”). The dividend is payable on January 20, 2015 to the stockholders of record on January 20, 2015 (the “Record Date”). 

For those interested in the specific terms of the Rights Agreement as made between the Company and American Stock Transfer & Trust
Company, LLC, as the Rights Agent, on January 9, 2015, we provide the following summary description. Please note, however, that this description is only a summary, and is not complete, and should be read together with the entire Rights
Agreement, which has been filed with the Securities and Exchange Commission as an exhibit to a Current Report on Form 8-K dated January 9, 2015. A copy of the agreement is available free of charge from the Company. 

The Rights. Our Board of Directors authorized the issuance of a Right with respect to each outstanding share of Common Stock on the Record Date. The
Rights will initially trade with, and will be inseparable from, the Common Stock. The Rights are evidenced only by certificates that represent shares of Common Stock or, in the case of uncertificated shares of Common Stock, the book-entry account
that evidences record ownership of such shares. New Rights will accompany any new shares of Common Stock we issue after the Record Date and prior to the earlier of the Distribution Date and the expiration date described below. 

Exercise Price. Once exercisable, each Right will allow its holder to purchase from the Company one one-thousandth of a share of Series A Junior
Participating Preferred Stock, par value $0.01 per share (“Preferred Shares”), for $37.50 (the “Purchase Price”), subject to adjustment. This portion of a Preferred Share will give the stockholder approximately the
same dividend, voting, and liquidation rights as would one share of Common Stock. Prior to exercise, the Right does not give its holder any dividend, voting, or liquidation rights. 

Exercisability. The Rights will not be exercisable until the close of business on the earlier of (1) the tenth day after the public announcement
that a person or group of affiliated or associated persons has acquired or obtained the right or obligation to acquire beneficial ownership of 10% (20% in the case of a 13G Investor) or more of our outstanding Common Stock (the first date of such
public announcement, the “Shares Acquisition Date”) or (2) the tenth business day (or such later date as our Board of Directors shall determine) following the commencement of a tender offer or exchange offer that, if consummated,
would result in a person or group becoming an “Acquiring Person.” If a stockholder’s beneficial ownership of our Common Stock as of the time of the public announcement of the Rights Agreement and associated dividend declaration is at
or above the applicable threshold (including through entry into certain derivative positions), that stockholder’s then-existing ownership percentage would be grandfathered, but the rights would become exercisable if at any time after such
announcement, the stockholder increases its ownership percentage by 0.001% (except in the case of any such increase due to equity issuances or grants to Company directors). 

 Certain synthetic interests in securities created by derivative positions — whether or not such interests
are considered to be ownership of the underlying Common Stock or are reportable for purposes of Regulation 13D of the Securities Exchange Act — are treated as beneficial ownership of the shares of Common Stock if such positions have an exercise
or conversion privilege or a settlement payment or mechanism at a price related to the value of the Common Stock or a value determined in whole or in part with reference to, or derived in whole or in part from, the value of the Common Stock, and
that increases in value as the value of the Common Stock increases or that provides to the holder an opportunity, directly or indirectly, to profit or share in any profit derived from any increase in the value of the Common Stock. Swaps dealers
unassociated with any control intent or intent to evade the purposes of the Rights Agreement are excepted from such imputed beneficial ownership. 
 We
refer to the date when the Rights become exercisable as the “Distribution Date.” Until that date, Common Stock certificates will also evidence the Rights, and any transfer of shares of Common Stock will constitute a transfer of Rights.
After that date, the Rights will separate from our Common Stock and be evidenced by book entry credits or by Rights certificates that we will mail to all eligible holders of Common Stock. Any Rights held by an Acquiring Person are void and may not
be exercised. 
 Consequences of a Person or Group Becoming an Acquiring Person. 

 

	•	 	Flip In. If a person or group becomes an Acquiring Person, all holders of Rights (other than the Acquiring Person and certain related parties, whose rights automatically become null and void) will have the right
to receive, for the Purchase Price, shares of our Common Stock with a market value equal to twice the Purchase Price, based on the market price of our Common Stock prior to such acquisition. 

 

	•	 	Flip Over. If our Company is acquired in a merger or similar transaction after the Shares Acquisition Date, all holders of Rights (other than the Acquiring Person and certain related parties, whose rights
automatically become null and void) will have the right to receive, for the Purchase Price, shares of the acquiring corporation with a market value equal to twice the Purchase Price based on the market price of the acquiring corporation’s
stock, prior to such merger. 

 Preferred Share Provisions. Each Preferred Share, if issued: 

 

	•	 	will not be redeemable; 

  

	•	 	will entitle holders to quarterly dividend payments equal to the greater of (A) $1.00 per share or (B) 1,000 times the aggregate per share amount of all cash dividends and 1,000 times the aggregate per share
amount (payable in kind) of all noncash dividends or other distributions declared on shares of Common Stock since the date of payment of the prior quarterly dividend payment; 

 

	•	 	will entitle holders upon liquidation either to receive $100 per share or an amount equal to 1,000 times the payment made on one share of Common Stock, whichever is greater; 

  
 C-2 

	•	 	will have the voting power equal to 1,000 shares of Common Stock; and 

  

	•	 	if shares of Common Stock are exchanged via merger, consolidation, or a similar transaction, will entitle holders to a per share payment equal to 1,000 times the payment made on one share of Common Stock.

 The value of one one-thousandth interest in a Preferred Share should approximate the value of one share of Common Stock. 

Expiration. The Rights will expire on January 8, 2016. 

Redemption. In general, the Company may redeem the Rights for $0.001 per Right at any time until the earlier of ten days following the Shares
Acquisition Date and the expiration date. If the Company redeems any Rights, it must redeem all of the Rights. Once the Rights are redeemed, the only right of the holders of Rights will be to receive the redemption price of $0.001 per Right. The
redemption price will be adjusted if we have a stock split or stock dividends of our Common Stock. 
 Exchange. After a person or group becomes an
Acquiring Person, but before an Acquiring Person owns 50% or more of our outstanding Common Stock, the Company may exchange the Rights (other than Rights held by the Acquiring Person and certain related parties, whose rights automatically become
null and void) by exchanging one share of Common Stock, or one one-thousandth of a Preferred Share, (or an equivalent security) for each Right, subject to adjustment. 

Anti-Dilution Provisions. The Company may adjust the purchase price of the Preferred Shares, the number of Preferred Shares issuable and the number of
outstanding Rights to prevent dilution that may occur from a stock dividend, a stock split, a reclassification of the Preferred Shares or common stock. No adjustments to the Exercise Price of less than 1% will be made. 

Amendments. The terms of the Rights Agreement may be amended by the Company and the rights agent without the consent of the holders of the Rights.
After the Shares Acquisition Date, however, the Company may not amend the Agreement in a way that materially adversely affects holders of the Rights (other than the Acquiring Person, any affiliate or associate thereof or any transferee of the
Acquiring Person or any affiliate or associate thereof). 

  
 C-3

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