Document:

Exhibit 10.4

 

FORM OF INSURANCE, INDEMNIFICATION

AND EXCULPATION AGREEMENT

 

Insurance, Indemnification and Exculpation Agreement, dated as of        ,
2006, between RRSat Global Communicats Network Ltd., an Israeli company (the “Company”),
and                    ,
[a director][the [insert title]]
of the Company (the “Indemnitee”).

 

WHEREAS, the Indemnitee is [a director][the [insert title]] of the
Company;

 

WHEREAS, the Company and the Indemnitee recognize the increased risk of
litigation and other claims being asserted against directors and officers of
public companies;

 

WHEREAS, the Articles of Association of the Company authorize the
Company to insure, indemnify and exculpate Office Holders (as such term is
defined in Israel’s Companies Law, 5759-1999); and

 

WHEREAS, in
recognition of the Indemnitee’s need for substantial protection against
personal liability in order to assure the Indemnitee’s continued service to the
Company in an effective manner and the Indemnitee’s reliance on the aforesaid
Articles of Association and, in part, to provide Indemnitee with specific
contractual assurance that the protection afforded by the Articles of
Association will be available to Indemnitee (regardless of, among other things,
any change in the composition of the Company’s Board of Directors or any
acquisition of the Company), the Company wishes to provide in this Agreement
for the insurance, indemnification and exculpation of Indemnitee to the fullest
extent permitted by law from time to time and as set forth in this Agreement.

 

NOW,
THEREFORE, in consideration of the foregoing premises and of the Indemnitee’s
continuing to serve the Company directly or, at its request, with another
entity, and intending to be legally bound hereby, the parties hereto agree as
follows:

 

1.                                      CERTAIN
DEFINITIONS

 

1.1.                                       Change in Control:  shall be deemed to have occurred
if: (i) any “person” (as such term is used in Section 13(d) and 14(d) of
the United States Securities Exchange Act of 1934, as amended), other than a
trustee or other fiduciary holding securities under an employee benefit plan of
the Company or a corporation owned directly or indirectly by the shareholders
of the Company in substantially the same proportions as their ownership of
shares of the Company, is or becomes the “beneficial owner” (as defined in Rule
13d-3 under said Act), directly or indirectly, of securities of the Company
representing 20% or more of the total voting power represented by the Company’s
then outstanding voting securities; or (ii) during any period of two
consecutive years, individuals who at the beginning of such period constitute
the Board of Directors of the Company and any new director whose election by
the Board of Directors or nomination for election by the Company’s shareholders
was approved by a majority of the directors then still in office who either
were directors at the beginning

 

 

of the period of whose election or nomination
for election was previously so approved, cease for any reason to constitute a
majority thereof; or (iii) the shareholders of the Company approve a
merger or consolidation of the Company with any other corporation, other than a
merger or consolidation which would result in the voting securities of the
Company outstanding immediately prior thereto continuing to represent (either
by remaining outstanding or by being converted into voting securities of the
surviving entity) at least 80% of the total voting power represented by the
voting securities of the Company or such surviving entity outstanding
immediately after such merger or consolidation, or the shareholders of the
Company approve a plan of complete liquidation of the Company or an agreement
for the sale or disposition by the Company of all or substantially all the
Company’s assets.

 

1.2.                                       Expenses:  includes reasonable legal costs, including
attorneys’ fees, expended by the Indemnitee or for which the Indemnitee has
been charged by a court, or in connection with an investigation or other
proceeding by a competent authority. Expenses shall also include any security
or bond that the Indemnitee may be required to post in connection with an
Indemnifiable Event (as defined below).

 

2.                                      INDEMNIFICATION
AND ADVANCEMENT OF EXPENSES

 

2.1.                                       The Company hereby undertakes to indemnify the
Indemnitee to the fullest extent permitted by applicable law from time to time,
for any liability and Expense that may be imposed on Indemnitee due to an act
performed or failure to act by him in his or her capacity as an Office Holder
of the Company or any subsidiary the Company may have or any entity in which the
Indemnitee serves as an Office Holder at the request of the Company either
prior to or after the date hereof, for any event against which indemnification
is available by law from time to time (“Indemnifiable
Events”), including without limitation the following:

 

2.1.1.                                       monetary liability imposed on the Indemnitee in favor
of a third party in a judgment, including a settlement or an arbitral award
confirmed by a court;

 

2.1.2.                                       reasonable legal costs, including attorney’s fees,
expended by the Indemnitee as a result of an investigation or proceeding
instituted against the Indemnitee by a competent authority, provided
that such investigation or proceeding concludes without the filing of an
indictment against the Indemnitee and
either (A) no financial liability was imposed on the Indemnitee in lieu of criminal proceedings, or
(B) financial liability was imposed on the Indemnitee
in lieu of criminal proceedings but the alleged criminal offense does
not require proof of criminal intent; and

 

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2.1.3.                                       reasonable legal costs, including attorneys’ fees,
expended by the Indemnitee or for which the Indemnitee is charged by a court,
(a) in an action brought against the Indemnitee by or on behalf of the Company
or a third party, or (b) in a criminal action in which the Indemnitee is found
innocent, or (c) in a criminal action in which the Indemnitee is convicted and
in which a proof of criminal intent is not required.

 

2.2.                                       The
indemnification undertaking made by the Company shall be only with respect to
such events as are described in Schedule A hereto. The maximum amount payable by the Company under this Agreement shall not
exceed 50% of the shareholders’ equity of the Company, measured by the balance
sheet of the Company last published prior to the time that notice is provided
to the Company pursuant to Section 8 below.

 

2.3.                                       If so requested by the Indemnitee, the Company shall
advance an amount (or amounts) estimated by it to cover Indemnitee’s reasonable
litigation Expenses, with respect to which the Indemnitee is entitled to be
indemnified under Section 2.1 above.

 

2.4.                                       The Company’s obligation to indemnify the Indemnitee
and advance Expenses in accordance with this Agreement shall be for such period
as the Indemnitee shall be subject to any possible claim or threatened, pending
or completed action, suit or proceeding or any inquiry or investigation,
whether civil, criminal or investigative, arising out of the Indemnitee’s
service in the foregoing positions, whether or not the Indemnitee is still
serving in such positions.

 

2.5.                                       The Company undertakes that as long as it may be
obligated to provide indemnification and advance Expenses under this Agreement,
the Company will purchase and maintain in effect directors and officers’
liability insurance to cover the liability of the Indemnitee to the fullest
extent permitted by law.

 

3.                                      GENERAL
LIMITATIONS ON INDEMNIFICATION

 

3.1.                                       If, when and to the extent that the Indemnitee would
not be permitted to be so indemnified under applicable law, the Company shall
be entitled to be reimbursed by the Indemnitee (who hereby agrees to reimburse
the Company) for all such amounts theretofore paid (unless the Indemnitee has
commenced legal proceedings in a court of competent jurisdiction to secure a
determination that the Indemnitee should be indemnified under applicable law,
in which event the Indemnitee shall not be required to so reimburse the Company
until a final judicial determination is made with respect thereto as to which
all rights of appeal therefrom have been exhausted or lapsed) and shall not be
obligated to indemnify or advance any additional amounts to the Indemnitee
(unless there has been a determination by a court or

 

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competent jurisdiction that the Indemnitee
would be permitted to be so indemnified under this Agreement).

 

3.2.                                       Change in Control of Company.                The Company undertakes that in the event of a Change in
Control of the Company, the Company’s obligations under this Agreement shall
continue to be in effect following such Change in Control, and the Company
shall take all necessary action to ensure that the party acquiring control of
the Company shall independently undertake to continue in effect such Agreement,
to maintain the provisions of the Articles of Association allowing
indemnification and to indemnify Indemnitee in the event that the Company shall
not have sufficient funds or otherwise shall not be able to fulfill its
obligations hereunder.

 

4.                                      NO MODIFICATION.

 

No
supplement, modification or amendment of this Agreement shall be binding unless
executed in writing by both of the parties hereto. No waiver of any of the
provisions of this Agreement shall be deemed or shall constitute a waiver of
any other provisions hereof (whether or not similar) nor shall such waiver
constitute a continuing waiver. Any waiver shall be in writing.

 

5.                                      SUBROGATION.

 

In
the event of payment under this Agreement, the Company shall be subrogated to
the extent of such payment to all of the rights of recovery of Indemnitee, who
shall execute all papers required and shall do everything that may be necessary
to secure such rights, including the execution of such documents necessary to
enable the Company effectively to bring suit to enforce such rights.

 

6.                                      REIMBURSEMENT.

 

The
Company shall not be liable under this Agreement to make any payment in
connection with any claim made against the Indemnitee to the extent the
Indemnitee has otherwise actually received payment (under any insurance policy
or otherwise) of the amounts otherwise indemnifiable hereunder. Any amounts
paid to the Indemnitee under such insurance policy or otherwise after the
Company has indemnified the Indemnitee for such liability or Expense shall be
repaid to the Company promptly upon receipt by Indemnitee.

 

7.                                      EFFECTIVENESS.

 

Subject to the
receipt of all the required approvals in accordance with Israeli Law, this
Agreement shall be in full force and effect as of the date hereof.

 

8.                                      NOTIFICATION AND
DEFENSE OF CLAIM.

 

Promptly
after receipt by the Indemnitee of notice of the commencement of any action,
suit or proceeding, the Indemnitee will, if a claim in respect thereof is to be
made against the Company under this Agreement, notify the Company of the
commencement hereof; but the omission so to notify the Company will not

 

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relieve
it from any liability which it may have to the Indemnitee otherwise than under
this Agreement. With respect to any such action, suit or proceeding as to which
the Indemnitee notifies the Company of the commencement thereof and without
derogating from Section 2.1:

 

8.1.                                       The Company will be entitled to participate therein at
its own expense; and

 

8.2.                                       Except as otherwise provided below, to the extent that
it may wish, the Company, jointly with any other indemnifying party similarly
notified, will be entitled to assume the defense thereof, with counsel
reasonably satisfactory to the Indemnitee. After notice from the Company to the
Indemnitee of its election to assume the defense thereof, the Company will not
be liable to the Indemnitee under this Agreement for any legal or other
expenses subsequently incurred by Indemnitee in connection with the defense
thereof other than reasonable costs of investigation or as otherwise provided
below. The Indemnitee shall have the right to employ his or her own counsel in
such action, suit or proceeding, but the fees and expenses of such counsel
incurred after notice from the Company of its assumption of the defense thereof
shall be at the expense of the Indemnitee, unless: (i) the employment of
counsel by Indemnitee has been authorized by the Company; (ii) the
Indemnitee shall have reasonably concluded that there may be a conflict of
interest between the Company and the Indemnitee in the conduct of the defense
of such action; or (iii) the Company shall not in fact have employed
counsel to assume the defense of such action, in each of which cases the fees
and expenses of counsel shall be at the expense of the Company. The Company
shall not be entitled to assume the defense of any action, suit or proceeding
brought by or on behalf of the Company or as to which the Indemnitee shall have
reached the conclusion specified in (ii) above.

 

8.3.                                       The Company shall not be liable to indemnify the
Indemnitee under this Agreement for any amounts paid in settlement of any
action or claim effected without its written consent. The Company shall not
settle any action or claim in any manner that would impose any penalty or
limitation on the Indemnitee without the Indemnitee’s written consent. Neither
the Company nor the Indemnitee will unreasonably withhold their consent to any
proposed settlement.

 

9.                                      EXCULPATION

The Company hereby exempts the Indemnitee, to the fullest extent permitted by
law, from any liability for damages caused as a result of the Indemnitee’s
breach of the duty of care to the Company, provided that the Indemnitee shall
not be exempt with respect to any action or omission as to which, under
applicable law, the Company is not entitled to exculpate the Indemnitee.

 

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10.                                NON-EXCLUSIVITY.

 

The
rights of the Indemnitee hereunder shall not be deemed exclusive of any other
rights he or she may have under the Company’s Articles of Association or
applicable law or otherwise, and to the extent that during the indemnification
period the rights of the then existing directors and Office Holders are more
favorable to such directors or Office Holders than the rights provided thereunder
or under this Agreement to the Indemnitee, the Indemnitee shall be entitled to
the full benefits of such more favorable rights.

 

11.                                BINDING EFFECT.

 

This
Agreement shall be binding upon and inure to the benefit of and be enforceable
by the parties hereto and their respective successors, assigns, including any
direct or indirect successor by purchase, merger, consolidation or otherwise to
all or substantially all of the business and/or assets of the Company, spouses,
heirs and personal and legal representatives. This Agreement shall continue in
effect regardless of whether Indemnitee continues to serve as an Office Holder
or director of the Company or of any other enterprise at the Company’s request,
provided that the claim for indemnification relates to an Indemnifiable Event.

 

12.                                SEVERABILITY.

 

The
provisions of this Agreement shall be severable in the event that any provision
hereof (including any provision within a single section, paragraph or sentence)
is held by a court of competent jurisdiction to be invalid, void or otherwise
unenforceable, and the remaining provisions shall remain enforceable to the
fullest extent permitted by law.

 

13.                                GOVERNING LAW,
JURISDICTION.

 

This
Agreement shall be governed by and construed and enforced in accordance with
the laws of the State of Israel. The parties hereto irrevocably submit to the
exclusive jurisdiction of the courts of Tel-Aviv in any action related to this
Agreement

 

14.                                ENTIRE AGREEMENT
AND TERMINATION.

 

This
Agreement represents the entire agreement between the parties; and there are no
other agreements, contracts or understandings between the parties with respect
to the subject matter of this Agreement. No termination or cancellation of this
Agreement shall be effective unless in writing and signed by both parties
hereto.

 

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IN WITNESS WHEREOF,
the parties have entered into this Agreement as of the date first above
written.

 

 

	
  RRSat Global Communications Network Ltd.

  	
  [Name of
  Indemnitee]

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

7

 

SCHEDULE A

 

	
  1.

  	
  Claims of failure to exercise business judgment and a
  reasonable level of proficiency, expertise and care in regard to the
  Company’s business

  
	
   

  	
   

  
	
  2.

  	
  Approval of corporate actions, including the approval of the
  acts of the Company’s management, their guidance and their supervision

  
	
   

  	
   

  
	
  3.

  	
  Negotiations, execution, delivery and performance of
  agreements on behalf of the Company

  
	
   

  	
   

  
	
  4.

  	
  Anti-competitive acts and acts of commercial wrongdoing

  
	
   

  	
   

  
	
  5.

  	
  Claims in connection with employment relationships with the
  Company’s employees.

  
	
   

  	
   

  
	
  6.

  	
  Acts in regard to intellectual property rights, and acts in
  regard to defects in the Company’s products or services

  
	
   

  	
   

  
	
  7.

  	
  Claims relating to the offering of securities, claims
  relating to violations of securities laws of any jurisdiction and claims
  arising out of the Company’s status as a publicly-traded company, including,
  without limitation, fraudulent disclosure claims, failure to comply with SEC
  disclosure rules and other claims relating to relationships with investors
  and the investment community

  
	
   

  	
   

  
	
  8.

  	
  Violations of laws requiring the Company to obtain
  regulatory and governmental licenses, permits and authorizations in any
  jurisdiction

  
	
   

  	
   

  
	
  9.

  	
  Claims in connection with publishing or providing any
  information, including any filings with governmental authorities, on behalf
  of the Company in the circumstances required under applicable laws

  
	
   

  	
   

  
	
  10.

  	
  Violations of any law or regulation governing domestic and
  international communications in any jurisdiction

  

 

8Exhibit 10.5

Translated from Hebrew

 

SHAREHOLDERS AGREEMENT

 

Executed and signed in Tel-Aviv on this 5th day of the month
of October, 2006

 

	
  BY:

  	
  Del-Ta Engineering Equipment Ltd.

  
	
   

  	
  (Company
  No. 510463482)

  
	
   

  	
  Of
  8 Shaul Hamelech Street, Tel-Aviv

  
	
   

  	
  (Hereinafter:
  “Delta”)

  
	
   

  	
   

  
	
  On the One Part;

  
	
   

  	
   

  
	
  AND BETWEEN:

  	
  David Rivel

  
	
   

  	
  I.D.
  65567117

  
	
   

  	
  Of
  24 Arava Street, Omer

  
	
   

  	
  And/or
  any corporation within his control

  
	
   

  	
  (Hereinafter:
  “Rivel”)

  
	
   

  	
   

  
	
  On the Second Part;

  
	
   

  	
   

  
	
  (Together will be referred to below as: “The Parties”)

  
	
   

  	
   

  
	
  WHEREAS:

  	
  Delta
  and Rivel are shareholders in the RRSat Global Communications Network Ltd.
  Company (Company No. 510896293)(hereinafter: “The Company”);

  
	
   

  	
   

  
	
  AND WHEREAS:

  	
  The
  Company began proceedings to promote the issuance of its shares to the public
  (hereinafter – “The Public Offering”)
  and registering them to be traded on the “NASDAQ” Stock Exchange in New York,
  USA (hereinafter, also: “The Stock Exchange”);

  

 

 

	
  AND WHEREAS:

  	
  The
  parties are interested in setting in writing, in detail, the consents and
  understandings between them in connection with their holdings in the company,
  subject to and following the public offering;

  

 

Therefore It Is Declared, Stipulated And Agreed
Between The Parties As Follows:

 

1.                           Preamble, Captions and
Appendices

 

1.1                     The preamble to this agreement and the
appendices attached hereto constitute an integral part hereof.

 

1.2                     The captions of the sections in this
agreement are for convenience purposes and are not part of the provisions in
this agreement nor will any meaning be given to then upon construing this
agreement and/or any of its provisions.

 

2.                           Granting Voting Rights To
Rivel Pertaining To The Appointment Of Directors in Delta.

 

2.1                     Rivel hereby undertakes, irrevocably, that on
the date this agreement takes effect as specified in Section 6.1 below, Delta
will make all the voting rights attached to the shares in the company held by
Rivel and/or any corporation within his control that holds shares in the
company with respect to the appointment of directors in the company, removing
them from office, substituting them and/or replacing them available to Delta
(hereinafter: “Voting Rights for the
appointment of Directors”),

 

2

 

subject
to and in accordance with the terms of this agreement. Delta will be entitled
to make use of the voting rights for the appointment of Directors as noted in
the company’s general meetings at its absolute discretion subject to and in
accordance with the provisions of this agreement.

 

2.2                     For the foregoing purpose, on the date this
agreement takes effect, as specified in Section 6.1 below, Rivel will give
Delta an irrevocable power of attorney authorizing it to participate and vote
by virtue of the shares in the company held by Rivel (whether directly or
indirectly, through a corporation within his control), as they exist from time
to time (hereinafter: “Rivel’s Shares”),
at the general meeting of any type in the company with respect to the
appointment of directors in the company, removing them from office,
substituting them and/or replacing them, in the format attached hereto as Appendix “A” to this agreement
(hereinafter: “The Power of Attorney”).

 

For the sake of removing any doubt it is hereby
clarified that “Rivel’s shares” include all Rivel’s shares as they exist from
time to time.

 

2.3                     In addition to granting the power of
attorney, as noted in Section 2.1 above, Rivel will grant Delta additional
specific powers of attorney (or any other document necessary in connection
thereto) for the purpose of exercising the voting rights for the appointment of
directors with respect to Rivel’s shares if and insofar as necessary by Delta.

 

2.4                     Likewise, at Delta’s request, Rivel will give
Delta confirmation of ownership (or any other similar document) attesting to
his holdings in

 

3

 

the
company on the determinative date to be determined for each company general
meeting in order to exercise the voting rights for the appointment of directors
attached to Rivel’s shares by Delta.

 

2.5                     To remove all doubts it is clarified that
subject to the fulfillment of Delta’s obligations in Section 3 below, Delta
will be entitled to exercise its voting rights to appoint directors pertaining
to Rivel’s shares by means of the power of attorney or the specific powers of
attorney as noted above at its absolute discretion. Without derogating from the
generality of the foregoing, Delta will advise Rivel, at least 72 hours in
advance with respect to the manner by which it is to exercise its voting rights
to appoint directors. Rivel undertakes to perform any additional reasonable
actions necessary in order to realize the above in this Section 2.

 

3.                           Appointment Of Directors To
The Company Pursuant To Rivel’s Recommendation

 

Delta hereby undertakes that so long as this agreement is in effect
Delta will exercise all the voting powers it has and will have in the company
by virtue of its holdings of shares in the company and by virtue of the power
of attorney to exercise the voting rights to appoint directors attached to
Rivel’s shares, by such a manner that Rivel (or someone on his behalf, in
accordance with a written notice to be sent from Rivel to Delta) will be
appointed as director in the company. To remove any doubt, the foregoing will
not prejudice Delta’s right to exercise its voting power and voting rights to
appoint directors attached to Rivel’s shares in order to remove Rivel (or
whomever is appointed at his request) from office as director or replace him by
another, at its discretion, with the exception of the dismissal of Rivel from

 

4

 

his position as Chief Executive Officer of the Company, with objection
from all members of the Board of Directors that were appointed by Delta. In
that event Delta will be obliged to ensure retention of the office by Rivel as
a director of the Company.

 

4.                           Restrictions Upon The
Transfer Of Shares In The Company

 

Commencing from the date this agreement takes effect as specified in
Section 6.1 below, a transfer and/or sale of Rivel shares, in whole or in part,
directly or indirectly, for consideration or without consideration, will be
subject to the provisions of this Section 4 below. For the sake of removing any
doubt it is hereby clarified that any transfer or sale of shares and/or other
securities in the company by Rivel contrary to the provisions of this agreement
will be considered invalid and null and void.

 

4.1                     Restrictions Upon The Transfer Of Rivel
Shares Pursuant To A Transaction Other Than On The Stock Exchange

 

4.1.1                        If Rivel wishes to transfer and/or sell
and/or grant Rivel’s shares or any part of them, whether alone or together with
others, whether for consideration or without consideration, directly or
indirectly, by a transaction other than on the Stock Exchange, he must first
offer the shares he is interested in transferring as above to Delta and Delta
will have a preemptory right to purchase the shares being offered for such a
transfer as specified below.

 

4.1.2                        Rivel will notify Delta in writing of the
number of shares that are being offered for sale as above in Section 4.1.1
(hereinafter: “The Shares Being Offered
External to the Stock Exchange”),

 

5

 

the
price and the requested terms of such a sale (hereinafter: “The Sales Notice”).

 

4.1.3                        Delta will have the right to purchase the
shares being offered external to the Stock Exchange at the price and pursuant
to the terms stipulated in the sales notice within 7 days of receipt thereof,
and this by giving written notice to Rivel of its intent to do so provided that
it purchases all the shares being offered external to the Stock Exchange
(hereinafter: “Delta’s Notice).

 

4.1.4                        In the event that Delta does not exercise its
right to purchase all the rights offered external to the Stock Exchange within
the specified period above and/or Delta notifies in writing prior to then that
it does not wish to purchase the shares offered external to the Stock Exchange
(hereinafter: “The Refusal Notice”)
then Rivel will have the right to sell the shares offered external to the Stock
Exchange, during 75 days commencing from the end of the last date for Delta to
give notice or the date it gave the refusal notice, the earlier of the two,
provided that the shares being offered external to the Stock Exchange are not
sold at a preferred price or terms to a third party than the price and terms as
offered to Delta in the sales notice.

 

4.1.5                        Shares that were not sold by Rivel within the
75 days as noted above will be subjected again to the provisions of this
Section 4.

 

6

 

4.2                     Restrictions Upon The Sale Of Rivel Shares On
The Stock Exchange

 

4.2.1                        If Rivel wishes to sell Rivel shares or any
part of them on the stock exchange whether by himself or through the framework
of an accepted “blind trustee” in relation to the sale of shares by interested
parties in certain periods, the following provisions will apply as specified
below.

 

4.2.2                        Rivel (including his trustee) will notify
Delta in writing (hereinafter: “The Stock
Exchange Sales Notice”) of the number of shares being offered for
sale on the stock exchange as noted in Section 4.2.1 above (hereinafter: “The Shares Being Offered On The Stock Exchange”)
at a price per share equal to the weighted average of sales of the Company
shares sold on the Stock Exchange on the day preceding the date of delivery of
the Sale Notice in the Stock Exchange (Namely, the average will be determined
according to the number of shares sold and their price during the course of
different transactions on the same day of trading) (hereinafter: “The Average Stock Exchange Share Price”).

 

4.2.3                        Delta will have the right to agree to
purchase the shares being offered on the stock exchange, in whole or in part,
in accordance with its exclusive discretion within 24 hours of the date it
receives the stock exchange sales notice and this by giving written notice to
Rivel (or someone on his behalf) of its desire to do so (hereinafter: “The Acceptance Notice”).

 

4.2.4                        If Delta gave Rivel (or someone on his
behalf) the acceptance notice, as noted above, Delta will purchase from Rivel
the shares

 

7

 

included
in the acceptance notice, by a transaction external to the stock exchange,
within 2 trading days of the date of delivery of the acceptance notice and the
purchase price of each share included in the acceptance notice will be the
average price per share on the stock exchange, as defined above.

 

4.2.5                        In the event that Delta does not exercise its
right to purchase all the shares being offered on the stock exchange within the
period specified above Rivel will be entitled to sell, on the stock exchange,
the remaining shares being offered on the stock exchange pertaining to which Delta
did not give an acceptance notice as noted above insofar as such shares exist
(hereinafter: “The Remaining Shares Being
Offered On The Stock Exchange”), for five (5) business days
following the last day for it to give an acceptance notice (hereinafter: “The Last Date To Sell The Shares On The Stock Exchange”).

 

4.2.6                        It is hereby agreed that if Rivel sold on the
stock exchange, the remaining shares being offered on the stock exchange, in
whole or in part, at a given price (hereinafter: “The Actual Sales Price”), by the last date to sell the shares
on the stock exchange, then Delta will indemnify Rivel a sum to be calculated
on the basis of the difference (insofar as a positive difference exists as
noted below: “The Amount Of The Difference
For Compensation”) between:

 

(i)                         The Average (Weighted) Stock Exchange Share
Price (as defined above) and between

 

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(ii)                      The weighted average of actual sales prices;

 

Rivel
undertakes to act in good faith and to take all reasonable measures, under the
circumstances at hand, in order to sell the shares being offered on the stock
exchange at the best price considering market conditions on the relevant date.

 

Subject
to the above Delta will pay Rivel, within 14 days from the final sale of shares
on the Stock Exchange, compensation at an amount equal to the amount of the
difference for compensation whereby this amount is multiplied by the lower of
the following: (a) the number of shares actually sold by Rivel out of the
balance of shares offered through the Stock Exchange as aforementioned; or (b)
the number of shares of the Company that were sold on the day of trading
preceding the delivery of the Sale Notice in the Stock Exchange.

 

For
the sake of removing any doubt it is hereby clarified that Rivel will not be
entitled to indemnification from Delta if he sells, on the stock exchange, the
remaining shares being offered on the stock exchange, in whole or in part, at
an average price equal to the Average Stock Exchange Share Price or a higher
price.

 

Shares
that were not sold by Rivel within 5 trading days as abovementioned will again
be subject to this section 4.

 

4.2.7                        It is hereby agreed that notwithstanding the
above in this agreement any notice that one party is required to send to the

 

9

 

other
party pursuant to this section will only be hand delivered or sent by
electronic mail or facsimile (i.e. will not be sent by registered mail and/or
any other means). Any such notice will be considered as if reaching the
addressee if hand delivered – immediately upon delivery, and if sent by
electronic mail or facsimile – at the time it is received provided that the
sender ensures by telephone that the notice is in fact received by the recipient.

 

It
is further agreed, that the parties will perform every action and will deliver
all reports or notices required by the law, as far as the requirement in
relation to the performance and implementation of the arrangements described in
section 4 above. Rivel is obliged to direct any person that acts on his behalf
in the sale of his shares (including a trustee that was appointed for this
purpose), to act in accordance with the terms of this section 4, and this
without derogating from Rivel’s liability to fulfill the obligations in
accordance to this section.

 

5.                           Transfers are Permitted

 

Notwithstanding the aforesaid in Section 4 the foregoing right of first
offer will not apply to a transfer of shares in the company from Rivel to a
corporation within Rivel’s control provided that the Transferee corporation
undertakes to assume all the provisions of this agreement as a condition
precedent to receiving the shares. In this respect, “A Corporation Within
Rivel’s Control” means a corporation in which Rivel holds 50.1% or more of the
capital and voting rights therein and whereby the rest of the capital and
voting rights (if such exist) are held by Rivel’s wife and/or children.

 

10

 

6.                           Agreement Period

 

6.1                     This agreement will take effect (including
all the rights and undertakings contained herein) on the closing date of the
public offering, i.e. commencing from the date of completing the registration
of the company’s shares on the “NASDAQ” Stock Exchange in New York, USA
(hereinafter: “The Suspending Condition”
or The Determinative Date”),
pursuant to the matter at hand), for an initial period of three years from the
determinative date (hereinafter: “The Basic
Agreement Period”). At the end of each year from the Determinative
Date the basic agreement period will be extended for an additional year
(hereinafter: “The extended agreement period”).
Notwithstanding the above during the month of April of each calendar year each
of the parties will be entitled to notify the other in writing of its intention
not to extend the agreement period for an additional year and in such an
instance the agreement will come to an end at the end of the basic or extended
agreement period, pursuant to the matter at hand.

 

6.2                     Notwithstanding the foregoing, if for any
reason the suspending term is not fulfilled within 4 months from the date of
signing this agreement, this agreement will be null and void and no party will
have any claim or assertion against the other.

 

6.3                     Notwithstanding the foregoing, this agreement
will come to an end in and of itself (hereinafter: “The Agreement Termination Date”), that will apply 30 days
after each of the following:

 

11

 

6.3.1                                                                        the date upon which Rivel’s and Delta’s total
cumulative holdings of Company’s shares falls below 47% of the paid up and
issued share capital of the Company, however, if at the end of the Agreement
Termination Date, Rivel’s and Delta’s total cumulative holdings of Company’s
shares exceeds 47% of the issued and paid company share capital and in such an
instance no party will have any claim or assertion against the other.

 

6.3.2                                                                        The date upon which Rivel’s term of office as
Chief Executive Officer of the Company is ended other than in the case Delta
and all directors serving on its behalf objected to such a decision.

 

For
the avoidance of doubt, it is clarified that, the intention of clause 6.3.2
aforementioned is not to fetter the discretion of the directors of the Company
serving on Delta’s behalf to obligate them to vote against the decision of
dismissal.

 

6.4                     Taking the above into account, and the
purpose of this agreement as an agreement that is intended to organize the
parties relationships as shareholders in the company and subject to the
provisions of this Section 6 and the provisions of the law, hence with the
passing of time in and of itself, under no circumstances, will there be grounds
to rescind this agreement and it will remain in effect without any limitation
of time.

 

12

 

7.                           General

 

7.1                     This agreement expresses all the consents
between the parties and replaces and nullifies any representation and consent,
in writing or oral, that was in existence, if in existence, between the parties
concerning the above matter prior to signing this agreement.

 

7.2                     The parties’ addresses are as specified in
the preamble to this agreement. Any notice sent from one party to the other
pursuant to the addresses above will be considered as if reaching the recipient
if sent by mail – within 3 business days from the date it was delivered to be
dispatched by registered mail from a post office in Israel, if hand-delivered –
immediately upon its delivery and if sent by electronic mail or facsimile – on
the date it is received provided that the sender ensured, by telephone, that it
was received by the recipient.

 

7.3                     Any of the parties rights and/or undertakings
pursuant to the provisions of this agreement, in whole or any part hereof,
cannot be assigned, endorsed and/or transferred and/or charged unless with the
other party’s advance and written consent.

 

Notwithstanding
the above it is hereby agreed that Delta will be entitled to assign or endorse,
whether directly or indirectly, all its rights and undertakings under this
agreement within a transfer or sale of its holdings in the company to a
corporation within its control and/or to a corporation that controls it and/or
to a corporation in control of a corporation that controls it, provided that
the Transferee corporation

 

13

 

assumes
the provisions of this agreement as a condition precedent to such an assignment
or endorsement.

 

7.4                     No waiver, extension, reduction or abstention
from acting in a timely manner by any of the parties will be considered a
waiver of any of its rights nor will it serve as a bar to any claim.

 

7.5                     Any amendment of this agreement or waiver by
any party of a right granted to it will not be valid unless executed in writing
and signed by both parties.

 

7.6                     To remove any doubt it is hereby clarified
that the laws of the State of Israel will apply to this agreement and it will
be interpreted pursuant thereto. The exclusive jurisdiction over any dispute or
differences of opinion between the parties in connection with this agreement
and performance hereof will be granted exclusively to the competent courts in
the city of Tel-Aviv, pursuant to the matter at hand and only to those courts.

 

In Witness Hereof The Parties Have Hereto Set Their
Hands:

 

	
  (-)

  	
   

  	
  (-)

  
	
  Del-Ta Engineering Equipment Ltd.

  	
   

  	
  David Rivel

  

 

14

 

APPENDIX “A”

 

POWER OF ATTORNEY

 

I
the undersigned, David Rivel, I.D.
65567117, of                    
Street,                   
as owner and/or holder of shares in the RRSAT Global Communications Network
Ltd. Company (Company No. 510896293) (hereinafter: “The Company”) hereby irrevocably, grant power of attorney to
each one of those listed below, to appear, participate and vote in my name and
instead of me, at their absolute discretion, at the company’s general meetings
of any type that are convened commencing from the date of signing this power of
attorney, pertaining to any matter on the agenda regarding the appointment of
directors in the company, removing them from office, substituting and/or
replacing them, and this in return of all the shares I own in the company
(whether directly or indirectly by means of a corporation within my control) as
they may be from time to time.

 

Below
are the names of the powers of attorney:

 

1.                                       Del-Ta Engineering Equipment Ltd., Company
No. 510463482.

2.                                                                                                 ,
                                        .

3.                                                                                                 ,
                                        .

 

15

 

4.                                                                                                 ,
                                        .

 

In Witness Hereof I Hereto Set My Hands On This     
Day In                             

 

 

 

	
   

  	
   

  	
   

  
	
   

  	
  David Rivel

  	
   

  

 

 

16

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