Document:

Exhibit 10.1

 

EMPLOYMENT
AGREEMENT

AND

 A
NOTICE UNDER THE NOTICE TO EMPLOYEE LAW

(TERMS
OF EMPLOYMENT), 5762 – 2002

 

Duly
executed on the 5th day of November, 2019

 

BY
AND BETWEEN

 

On
Track Innovations Ltd.

Z.H.R.
Industrial Zone, Rosh Pina 12000

Israel

(The
“Company”)

 

AND

 

Yehuda
Holtzman I.D. 056730708

Of
29 Moshe Levin, Mazkeret Batya Israel, 76804

 (The
“Employee”)

 

		WHEREAS	the
                                         Company wishes to employ Employee according to the terms and conditions set herein; and

 

		WHEREAS	Employee
                                         represents that he has the required experience and qualifications necessary for the position
                                         and agrees to be employed by the Company according to the said terms and conditions.

 

NOW
THEREFORE, in considerations of the mutual promises and agreements, the parties hereto agree, declare and stipulate as follows:

 

	1.	General

 

		1.1.	The
                                         preamble and any appendix attached hereto shall constitute an integral part hereof.

 

		1.2.	The
                                         Company hereby hires Employee as the Chief Executive Officer of the Company effective
                                         as of the Commencement Date (as such term is defined below) and Employee accepts such
                                         employment upon the following terms and conditions. Employee’s responsibilities
                                         are as set forth in Appendix A.

 

	2.	Term
                                         and Termination

 

		2.1.	The
                                         term of this Agreement shall commence as of December 1, 2019 or an earlier date as may
                                         be agreed to by the parties (the “Commencement Date”), provided that
                                         this Agreement is approved by the requisite corporate organs of the Company. The Employee
                                         acknowledges that this Agreement is subject to approval of the shareholders of the Company
                                         and that certain items listed in Appendix A will be paid issued or granted subject to
                                         approval of the Company’s shareholders meeting or otherwise approved under applicable
                                         law. This Agreement is for an unlimited duration. Notwithstanding the above, each party
                                         to this Agreement may terminate it without cause upon serving the other party a written
                                         notice of 90 days, prior to termination (the “Term”, “Notice”
                                         respectively). During the period after Notice is given, Employee shall continue to perform
                                         all of his obligations pursuant to the terms of this Agreement. Notwithstanding the aforesaid,
                                         by notifying Employee concurrently with or at any time after a termination Notice is
                                         delivered by either party hereto, Company shall be entitled to waive Employee’s
                                         services with Company during the Notice period or any part thereof and/or terminate the
                                         employer-employee relationship prior to the completion of the Notice period; In such
                                         event Company shall pay Employee that sum equal to the compensatory payment as required
                                         by, and in accordance with, the Prior Advanced Notice for Dismissal and Resignation Law
                                         of 2001.

 

     

     

    

 

		2.2.	It
                                         is hereby agreed that in case that Employee resigns, the Company shall be entitled, at
                                         its sole discretion, without any need to provide any explanation whatsoever, to shorten
                                         the notice period to the statutory period in accordance with the Prior Advanced Notice
                                         for Dismissal and Resignation Law of 2001. Under such circumstances, Employee would not
                                         have any claim, request or demand in connection with shortening of the notice Period
                                         and Employee will not be entitled to any compensation in respect of such shortening,
                                         provided that Employee shall be entitled to the same rights as if the notice period has
                                         not been shortened.

 

		2.3.	Upon
                                         termination of this Agreement, for whatever reason, by the end of employee-employer relationships,
                                         Employee shall immediately return to the Company all the information, documents, office
                                         equipment, and other supplies which Employee received during his employment in the Company.
                                         Employee hereby waives any rights to withhold or retain any of the items above, whether
                                         Employee had the right under law or contract or otherwise. During the period following
                                         the Notice was given, Employee shall cooperate with the Company and use his best efforts
                                         to assist the integration into the Company’s organization of the person or persons
                                         who will assume Employee’s responsibilities.

 

		2.4.	Notwithstanding
                                         the above, the Company shall be entitled to immediately terminate this Agreement without
                                         providing a prior notice and with no additional compensation in the following events:
                                         (i) Employee has committed a dishonorable criminal offense; (ii) Employee has breached
                                         his duties of trust or loyalty to Company; (iii) Employee has deliberately caused harm
                                         to Company’s business affairs; (iv) Employee has breached the confidentiality and/or
                                         non-competition and/or non-solicitation provisions of this Agreement; and/or (v) circumstances
                                         that do not entitle Employee to severance payments under any applicable law and/or under
                                         any judicial decision of a competent tribunal (“Termination For Cause”).

 

	3.	Employee’s
                                         Representations and Undertakings

 

		3.1.	Employee
                                         represents and warrants to the Company that the execution and delivery of this Agreement
                                         and the fulfillment of the terms hereof (i) will not constitute a default or breach of
                                         any agreement or instrument to which he is party or by which he is bound, including without
                                         limitation, any confidentially and non-competition agreement, (ii) does not require the
                                         consent of any person or entity, (iii) shall not utilize during the Term any proprietary
                                         information of any third party, including prior employers of Employee.

 

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		3.2.	Employee
                                         undertakes to comply with the Company’s disciplinary regulations, work rules, policies,
                                         procedures and objectives, including without limitations, the Company’s Insider
                                         Trading Policy.

 

		3.3.	During
                                         the Term, Employee shall, except during customary vacation periods and periods of illness,
                                         devote all necessary time and attention to the business of the Company and shall perform
                                         his duties diligently and promptly for the benefit of the Company. Employee shall devote
                                         all his attention to promoting the best interests of the Company and shall not take any
                                         engagement, where compensatory or not, without the Company’s prior written approval.
                                         Employee shall competently perform all assigned duties and carry out the policies, directives,
                                         and decisions of the Company.

 

		3.4.	While
                                         performing services for the Company, Employee shall not engage in any activities that
                                         may interfere or conflict with the proper discharge of his duties hereunder. Employee
                                         shall notify the Company immediately of every matter or transaction in which Employee
                                         has a significant personal interest and/or that might create a conflict of interest with
                                         Employee’s position in the Company.

 

		3.5.	Employee
                                         acknowledges that his position is one requiring a special degree of personal confidence,
                                         as defined under the Working Hours and Rest Law, 5711-1951, thus the provisions of such
                                         law shall not apply to Employee and he shall not be entitled to claim or receive any
                                         payments or increments whatsoever for working overtime or on Sabbaths and festivals,
                                         and the monthly salary payable to him also includes full compensation for working overtime
                                         and on Sabbaths and festivals.

 

		3.6.	Employee
                                         represents that he has reviewed the salary conditions described herein and the terms
                                         and conditions of employment to which he is entitled under this Agreement, and has found
                                         the same to constitute proper remuneration for his work.

 

		3.7.	Employee
                                         shall be employed by the Company at its offices in such places as shall be determined
                                         by the Company. Employee hereby acknowledges that his employment may further require
                                         extensive travels outside of Israel and that he will not be entitled to additional compensation
                                         with respect thereto.

 

		3.8.	Employee
                                         shall be entitled to be reimbursed for his reasonable business expenses in Israel and
                                         abroad, as the case may be, in accordance with the Company’s then current policies,
                                         against submission of corresponding invoices or any other proper documentation as shall
                                         be reasonably required to evidence for all such expenses.

 

		3.9.	Employee
                                         undertakes not to communicate or discuss any of Employer matters in any way, form or
                                         manner with any media body, person or entity, including social media, unless otherwise
                                         required in the framework of Employee’s position and responsibilities in the Company.
                                         Employee understands the importance of confidentiality regarding anything relating to
                                         the Employer and the special sensitivity resulting from the fact that the Employer is
                                         a public company and a domestic issuer in the United States.

 

	4.	Compensation

 

		4.1.	Employee
                                         shall be entitled to compensation and other benefits and conditions as detailed in Appendix A attached
                                         hereto.

 

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		4.2.	The
                                         amount of the Monthly Salary payable to Employee as specified in Appendix A, and it alone,
                                         shall be the basis for the provisions and deductions in respect of the social benefits
                                         specified in this Agreement; and all the bonuses, contributions to expenses and other
                                         benefits granted to Employee or which shall be given to him (if at all) pursuant to this
                                         Agreement or in connection with his employment by the Company do not constitute a component
                                         of his Monthly Salary and shall not be taken into account in respect of the provisions
                                         or other benefits whatsoever granted to Employee pursuant to this Agreement which are
                                         computed on the basis of his Monthly Salary.

 

		4.3.	The
                                         payments and benefits of whatsoever description granted to Employee pursuant to this
                                         Agreement are subject to the deduction of income tax and other compulsory deductions
                                         which the Company has to deduct according to any law, and nothing stated in this Agreement
                                         shall be interpreted as imposing upon the Company the burden of paying tax or any other
                                         compulsory payment for which the Employee is liable, other than the value of the benefit
                                         of placing the car at the Employee’s disposal, providing the Employee with meals,
                                         use of Company’s phone which shall be grossed up by the Company as provided in
                                         this Agreement.

 

	5.	Confidentiality
                                         and Non-Compete Undertaking, Insider Trading Policy and Foreign Corruption Practice Act
                                         Policy

 

Employee
undertakes, in addition to any other commitment he may take upon himself, and without derogating from any such undertaking, to
confirm and fulfill all the undertakings set in (i) the secrecy, non-competition and proprietary information undertaking
attached hereto as Appendix B; (ii) Insider Trading Policy attached hereto as Appendix C; and (iii) Foreign
Corruption Practice Act Policy attached hereto as Appendix D.

 

	6.	Media
                                         Equipment

 

The
Company will provide Employee with a cellular phone, a computer, an e-mail or any other property of the Company for communication
needs during the Employee’s work (the “Media Equipment”). Employee undertakes to use the Company’s
Media Equipment and facilities only for the purpose of his employment and in accordance with any rule or regulation. Employee
further undertakes not to use any other Media Equipment for the Company’s business. Employee acknowledges that all of the
Media Equipment is the property of the Company and agrees that the Company is entitled to conduct inspections within the Company’s
offices and on the Company’s Media Equipment with respect to Company’s related matter, including inspections of company
e-mail transmissions and inspections of their content at the Company’s discretion, to the extent permitted under Israeli
law. For the avoidance of any doubt, it is hereby clarified that all such examination findings shall be the Company’s sole
property. By signing this Agreement, Employee grants the Company an irrevocable right to conduct inspections as aforesaid, including
unannounced inspections.

 

	7.	Miscellaneous

 

		7.1.	Company
                                         shall withhold, or charge Employee with all taxes and other compulsory payments as required
                                         under applicable law with respect to all payments, benefits and/or other compensation
                                         paid to Employee in connection with his employment with Company.

 

		7.2.	Captions
                                         and paragraph headings used in this Agreement are for convenience purposes only and shall
                                         not be used for the interpretation thereof.

 

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		7.3.	This
                                         Agreement shall survive an accidental invalidity of one or more of its sections. Company’s
                                         failure or delay in enforcing any of the provisions of this Agreement shall not, in any
                                         way, be construed as a waiver of any such provisions, or prevent Company thereafter from
                                         enforcing each and every other provision of this Agreement which were previously not
                                         enforced.

 

		7.4.	This
                                         Agreement shall be interpreted and construed in accordance with the laws of the State
                                         of Israel. All disputes arising from this Agreement shall be exclusively referred to
                                         the competent courts of Tel Aviv-Jaffa district, Israel.

 

		7.5.	This
                                         Agreement, including its appendices, constitutes the entire agreement between the parties
                                         concerning the subject matter hereof. Amendments to, and modifications of, this Agreement,
                                         shall be effective only upon approval thereof by both parties in writing. This Agreement
                                         and the appendixes hereto shall be deemed as a notice to the Employee in accordance with
                                         the Notice to Employees Law (Terms and Conditions of Employment), 5762-2002.

 

		7.6.	All
                                         notices, requests and other communications to any party hereunder shall be given or made
                                         in writing and electronically transmitted, mailed (by registered or certified mail) or
                                         delivered by hand to the respective party at the address set forth in the caption of
                                         this Agreement or to such other address (or facsimile number or an e-mail address) as
                                         such party may hereafter specify for the purpose of notice to the other party hereto.
                                         Each such notice, request or other communication shall be effective (i) if given by facsimile
                                         or e- mail, when such facsimile or electronic mail is transmitted to the facsimile number
                                         or electronic mail address specified herein and the appropriate answerback is received
                                         or (ii) if given by any other means, when delivered at the address specified herein.

 

		7.7.	The
                                         above and the said in the appendixes shall be without prejudice to any right conferred
                                         to the Employee by any law, extension order or collective agreement.

 

IN
WITNESS WHEREOF the parties hereunder set their hands.

  

	/s/
    Yehuda Holtzman	 	/s/
    James Scott Medford
	Yehuda
    Holtzman	 	On
    Track Innovations Ltd.

 

	 	 	 	By:	James Scott Medford
	 	 	 	Title:	Chairman of the Board of Directors

 

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APPENDIX
A

 

	1.	The
                                         Employee will be responsible for the day to day and management of the Company and the
                                         operations thereof and all other actions as required under applicable law, and will supervise
                                         the activities of the Company’s subsidiaries (and may be required to act as the
                                         chief executive and/or director of the Company’s subsidiaries, if so requested
                                         by the Board of Directors of the Company (the “Board”), for no additional
                                         compensation).

 

	2.	Subject
                                         to the approval of the general meeting, the Employee shall be entitled to a gross monthly
                                         salary of NIS 76,000 (the “Monthly Salary”), 10% of which will be
                                         considered as a consideration for Employee’s non-compete undertakings. The Monthly
                                         Salary shall be paid no later than the ninth day after the end of any calendar month.  The
                                         Company may increase the Monthly Salary subject to the approvals required under applicable
                                         law. Salary evaluation will be conduct on an annual basis.

 

	3.	Vacation

 

		3.1.	The
                                         Employee shall be entitled to 24 vacation days (the “Vacation Days”),
                                         with respect to each twelve (12) months period of continuous employment with the Company.

 

		3.2.	The
                                         annual leave days to which the Employee is entitled are non-accruable according to the
                                         Company’s policy. There will be no carry over unused vacation days from one year
                                         to the next. Upon termination, Employee will be paid for all unused accrued vacation
                                         time.

 

	4.	Pension

 

		4.1.	The
                                         Employee shall be entitled to an insurance pension (the “Pension Fund”)
                                         as of the commencement date of the Employee’s employment with the Company.

 

Without
derogating from the aforesaid, the Employee will be entitled to continue with his own and current insurance pension fund, whereas
the Employee shall be (i) the owner of the funds in such fund up to the commencement date of Company’s and Employee’s
contributions under this Agreement and (ii) the beneficiary of those funds deposited immediately following the said date.

 

		4.2.	The
                                         Pension shall be in accordance with the Employee’s choice, by written notice to
                                         be delivered to the Company no later than 60 days after the commencement of the Employee’s
                                         employment with the Company.

 

		4.3.	It
                                         is hereby agreed that the Company shall allot every month to the Pension Fund 6.5% of
                                         the Monthly Salary and 8.33% on behalf of redundancy payment. Furthermore, the Company
                                         shall insure the Employee in a Work Disability Insurance at the rate required to insure
                                         75% of the Total Salary and not more than 2.5% of the Monthly Salary.

 

		4.4.	The
                                         Company shall deduct 6% as set forth in the Extension Order for Comprehensive Pension
                                         Insurance Allowances dated May 3, 2016 of the Total Salary for his part of the Pension
                                         Fund. The Employee hereby grants his consent to such monthly deduction.

 

		4.5.	All
                                         payments to the Pension scheme will be made in compliance with Section 14 of the Severance
                                         Compensation Law, 1963 (“Section 14’), and in accordance with the
                                         general approval of the Labor Minister dated June 9, 1998, promulgated under said Section
                                         14, a copy of which is attached hereby as Appendix E, and the terms
                                         of Section 14 and said general approval will apply to the relationship hereunder. Therefore,
                                         the ownership of the Pension scheme will be transferred to the Employee following termination
                                         of employment and the Company will not be entitled to retrieve any of the funds it transferred
                                         to the Pension scheme, other than in accordance with Section 14 and said general approval,
                                         and the transfer of the Pension scheme to the ownership of the Employee will be the full
                                         and only compensation to be paid by the Company to the Employee in such circumstances
                                         in respect of severance pay.

 

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	5.	Study
                                         Fund.

 

The
Company and the Employee will maintain an advanced study fund (Keren Hishtalmut). The Company will contribute to such fund a gross
amount equal to 7.5% of the Monthly Salary, and will deduct from the Monthly Salary and transfer to such fund an amount equal
to 2.5% of the Monthly Salary, provided, however, that the Company will not gross up any amount payable to the study fund. For
the avoidance of doubt, no amount remitted by the Company in respect of this paragraph will be considered as part of the Monthly
Salary for purposes of any deduction therefrom or calculations of severance pay.

 

	6.	The
                                         Employee shall be entitled to recreation pay (Dmei havra’a) according to
                                         the Israeli regulations as in effect from time to time with respect to such pay.

 

	7.	The
                                         Employee shall be entitled to such number of days of sick leave according to the Sick
                                         Pay Law - 1976.

 

	8.	Car
                                         and Additional Expenses

 

		8.1.	During
                                         the Term, Company shall place at Employee’s exclusive disposal a car for his use
                                         at a level 6 (up to a car’s value of NIS 190,000) and shall provide him with lunch
                                         meals at Company’s premises. All the expenses in connection with the maintenance
                                         and use of the said car shall be borne and paid by Company, excluding fines. Employee
                                         hereby undertakes to use the car that shall be placed at his disposal as aforesaid reasonably
                                         and properly qua an owner who cares for his property, and in the absence of another arrangement
                                         in writing between him and Company he undertakes to return the said car to Company immediately
                                         upon the termination of the period of the Notice. For avoidance of doubt, Company shall
                                         gross up the value of the benefit or any other cost which may be related with the car
                                         benefit to Employee in placing the car at his disposal and providing him with meals as
                                         aforesaid in the amount of the tax applicable to him is respect of the said benefits.

 

		8.2.	Company
                                         shall reimburse Employee for all out-of-pocket business expenses, reasonably and necessarily
                                         incurred in connection with, or related to, the performance of his duties under this
                                         Agreement, subject to and in accordance with Company’s then current expense reimbursement
                                         policy, if any. To the extent Company has not adopted an expense reimbursement policy,
                                         reimbursement of expenses in accordance with the provisions of this Section shall be
                                         made within ten (10) days from the beginning of each month, for the preceding month,
                                         against submission by the employee of receipts or other appropriate supporting documentation,
                                         but expenses exceeding NIS 10,000 per item or in total shall be subject to prior approval
                                         by the Board. The Board may reasonably request additional documentation or a further
                                         explanation to substantiate any business expense submitted for reimbursement, and retains
                                         the discretion to approve or deny a request for reimbursement or part of it. Employee
                                         must submit any request for reimbursement no later than ninety (90) days following the
                                         date that such business expense was incurred. Except as stated in this Section or unless
                                         otherwise agreed to between Company and Employee in writing, with respect to the performance
                                         of specific duties, Company shall have no liability to reimburse Employee for any expenses
                                         incurred by Employee in connection with his employment by Company. A reimbursement (or
                                         right thereto) may not be exchanged or liquidated for any other benefit or payment.

 

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	9.	Cellular
                                         Phone.

 

The
Company shall bear costs and expenses relating to cellular phone use. The value of the benefit to Employee with regard to such
cellular phone shall not be deemed as an integral part of the Monthly Salary for any intent and purpose (including without limitation
for the purpose of the Employee’s entitlement to severance pay and payments towards the pension policy).

 

	10.	Sign
                                         In Option Grant.

 

Subject
to receipt all required corporate approvals, the Company will grant Employee 450,000 options to purchase 450,000 Ordinary Shares
of the Company, par value NIS 0.10 per share. Each option shall be exercisable upon payment of the exercise price which will be
the fair market value of the underlying Ordinary Share as determined by the Board (which will be equal to the average closing
price of the share of Company during the trading days over the 30 calendar days prior to the date when this Agreement is approved
by the Company’s Shareholders). The options will be subject to 3 year vesting period starting on the Commencement Date so
that each portion of 150,000 options shall vest on each of the first, second and third anniversaries of the Commencement Date,
all subject to the terms and provisions of the Company’s 2001 Share Option Plan, as in effect from time to time (the “ESOP”).
All other maters not specified herein with respect to the said options will be governed by the Company’s ESOP and the Insider
Trading Policy

 

	11.	Annual
                                         Stock Option Awards

 

During
each calendar year staring and also for 2020 Employee will be awarded share options annually to promote retention and to incentivize
the Employee to positively impact shareholder value over a time horizon greater than one year. The total number of options that
will be issued to Employee in any calendar year 100,000 options to purchase 100,000 Ordinary Shares of the Company, par value
NIS 0.10 per share (the “Options”). The exercise price of the Options shall be determined by the Board and
will generally equal to the fair market value of the Company’s shares on the date of grant, provided, however, that regarding
the Options to be granted during the first calendar year of Employee’s employment the exercise price shall not be less than
US$ 0.35 per option. The issuance of share option awards will be subject to the discretion and approval of both the Compensation
Committee and the Board.

The
options granted under Section 10 and this Section 11 to this Appendix A shall fully accelerate upon the consummation of an M&A
Transaction. The term M&A Transaction means any of the following transactions: (i) sale, lease or disposition of all or substantially
all of the assets of the Company other than to a wholly-owned subsidiary of the Company; (ii) the sale of shares of the Company,
in a single transaction or series of related transactions, representing at least 50% of the voting power of the voting securities
of the Company; or (iii) a merger, consolidation, reorganization or other similar transaction or series of related transactions
by the Company with or into another entity which results in the voting securities of the Company outstanding immediately prior
thereto representing immediately thereafter less than a majority of the combined voting power of the voting securities of the
Company or the surviving or acquiring entity outstanding immediately after such merger, consolidation, reorganization or other
similar transaction. Notwithstanding the above, the term M&A Transaction shall not include any transaction or series of transactions
principally for bona fide equity financing purposes in which the Company issues new securities primarily for cash or the cancellation
or conversion of indebtedness of the Company or a combination thereof for the purpose of financing the operations and business
of the Company.

 

All
options granted to the Employee shall be subject to the provision of the Company’s then applicable share option plan.

 

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	12.	Annual
                                         Bonus Plan.

 

The
maximum annual bonus that can be achieved by Employee equals 10 times the Monthly Salary, based on financial and other performance
criteria as determined by the Board or the Company’s Compensation Committee and mutually agreed with the Employee. For 2020
the annual bonus shall be calculated as the sum of the following items:

 

		●	10%
                                         of the annual bonus (up to NIS 76,000) shall be discretionary, which will be decided
                                         by the Board.

 

		●	70%
                                         of the annual bonus (up to NIS 532,000) shall be calculated based on the Company’s
                                         Operating Profit for 2020 (as defined below), with 0% at US$ 0 in Operating Profit and
                                         100% awarded at US$ 200,000 in Operating Profit, calculated on a linear basis, but not
                                         more than NIS 532,000.

 

		●	20%
                                         of the annual bonus (up to NIS 152,000) shall be calculated based on the Company’s
                                         Operating Profit for 2020, with 0% at US$ 200,000 in Operating Profit and 100% awarded
                                         at US$ 500,000 in Operating profit, calculated on a linear basis, but not more than NIS
                                         152,000.

 

The
term Operating Profit, or Operating Profit for 2020 shall be defined as the higher of the Company’s operating profit as
provided for in its published financial statements for the period: (i) January 1, 2020 and December 31, 2020; or (ii) April 1,
2020 and March 31, 2021.

 

Employee
acknowledges that the annual bonus for 2020, if any, will be paid on or before June 30, 2021. All other terms and conditions of
the annual bonus are as set forth in the Company’s compensation policy in effect.

 

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APPENDIX
B

Secrecy,
Non-Competition and Proprietary Information Undertaking

 

I,
the undersigned, Yehuda Holtzman (I.D. 056730708) in consideration for value received, hereby declare and undertake towards On
Track Innovations Ltd. and any of its parent/controlling corporation, subsidiaries and/or affiliated entities (collectively, the
“Company”) as follows:

 

	1.	In
                                         this Undertaking, the following terms shall have the following meaning:

 

		1.1.	“Confidential
                                         Information” means any and all information relating to Company’s proprietary
                                         technology or business including, without limitation, information, data, know-how, formulas,
                                         concepts, tests, drawings, specifications, applications, designs and trade secrets, patents,
                                         know-how, technology data and all other information, design methodology, engineering
                                         and manufacturing processes and data and information related to Company’s products
                                         or their development, equipment, suppliers, sales, customers, potential customers, business
                                         operations and plans, financial situation, members, employees and investors.

 

		1.2.	“Confidential
                                         Documents” means any documents containing Confidential Information, including
                                         without limitation: (i) any documents, notes, memoranda, summaries, analyses, paper works,
                                         sketches, designs, charts, specifications, prints, compilations, or any other writings
                                         relating to Confidential Information, and any other materials embodied in drawings, floppy
                                         discs, tapes, CD ROM, hard drives, software or in any other possible way containing or
                                         relating to Confidential Information or any part thereof, whether or not prepared by
                                         Company or on its behalf, (ii) all documents received, used, or that shall be received
                                         or used, by me in relation with my employment with Company, and/or (iii) the contents
                                         of such Confidential Documents as stored in my memory.

 

		1.3.	“Competing
                                         Goods” means any goods sold in competition with the Prescribed Goods;

 

		1.4.	“Competing
                                         Services” means any services rendered in competition with the Prescribed Services;

 

		1.5.	“Prescribed
                                         Areas” means Israel or in any other part of the world in which Company conducts
                                         its business;

 

		1.6.	“Prescribed
                                         Customers” means any person who is or was a customer of Company at the termination
                                         date; or who is or was a customer of Company at the termination date or who was
                                         a potential customer with which I had been engaged in negotiations with a view to doing
                                         business on behalf of Company within the period of 6 (six) months preceding the termination
                                         date;

 

		1.7.	“Prescribed
                                         Goods” means any products sold by Company in the ordinary course of business
                                         as at the termination date or which is then included in any strategic plan of Company;

 

		1.8.	“Prescribed
                                         Services” means any services rendered by Company in the ordinary course of
                                         business as at the termination date or which is then included in any strategic plan of
                                         Company;

 

		1.9.	“Prescribed
                                         Suppliers” means any person who is or was a supplier of Prescribed Goods and/or
                                         Prescribed Services to Company at the termination date; or is or was a supplier of Prescribed
                                         Goods and/or Prescribed Services to Company at the termination date with which I had
                                         been engaged in negotiations with a view to doing business on behalf of Company within
                                         the period of 6 (six) months preceding the termination date;

 

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		1.10.	“Restraint
                                         Period” means a period of 12 (twelve) months calculated from the termination
                                         date;

 

		1.11.	“Termination
                                         Date” means the date upon which my employment with the Company ceases or is
                                         terminated for any reason whatsoever;

 

	2.	I
                                         am fully aware that Confidential Information and Confidential Documents are the  exclusive
                                         property of Company, and that they were made or shall be made available to me and for
                                         my use solely for the purpose of my work as an employee of Company.

 

	3.	I
                                         undertake towards Company as follows:

 

		3.1.	To
                                         maintain as fully confidential all Confidential Information and Confidential Documents;

 

		3.2.	Not
                                         to disclose or divulge to any third party, or allow any third party access to any of
                                         Confidential Information or Confidential Documents, or use any of thereof, whether directly
                                         or indirectly, save exclusively for the purposes of my work as an employee of Company.

 

		3.3.	Not
                                         to misuse any of Confidential Information or Confidential Documents, or any part thereof,
                                         in a manner other than the usual use of Confidential Information and Confidential Documents
                                         and for a purpose other than the purpose for which Confidential Information and Confidential
                                         Documents were divulged to me.

 

		3.4.	Not
                                         to make public or divulge in any way Confidential Information and Confidential Documents
                                         or any part thereof.

 

		3.5.	Not
                                         to duplicate, copy, scan, or create in any other way copies of Confidential Documents
                                         or any part thereof, except for the purpose for which the Confidential Information and
                                         Confidential Documents were divulged to me.

 

		3.6.	Upon
                                         demand of Company, at any time whatsoever, to return to Company the Confidential Information
                                         and Confidential Documents or any part thereof or copies thereof in any form whatsoever,
                                         and to, if so required, confirm in writing to Company that all Confidential Information
                                         and Confidential Documents or any copies thereof in any form whatsoever which had been
                                         in my possession have been returned to Company, and that I did not retain any copies
                                         of it, including copies made by electronic forms.

 

		3.7.	Not
                                         to remove from Company’s premises or take for my use any of Confidential Information
                                         and Confidential Documents without Company’s prior written approval, unless if
                                         such removal is made strictly for the purposes of performing my undertakings towards
                                         Company.

 

	4.	I
                                         agree and accept that:

 

		4.1.	Company
                                         reserves all rights in any inventions, patents, copyrights, designs, and any other intellectual
                                         property invented or devised by it in relation to Confidential Information and Confidential
                                         Documents.

 

    11

     

    

 

		4.2.	Any
                                         invention including any patent or patent application and any copyrights or any other
                                         intellectual property invented or created by me during my employment with Company or
                                         as a result of my employment with Company (the “IP”), shall be the
                                         exclusive property of Company, and I do not have and shall not have any demand or claim
                                         against Company relating to the IP and no monetary rights therein. This Section will
                                         be considered for any purpose as “Contract” according to the meaning of this
                                         term in Section 134 of the Patents law. In other words, I hereby agree that I will not
                                         be entitled for any compensation for IP, and that I will not address in this matter to
                                         The Payment and Compensation Commission (“Hava’ada Leinianey pitzuim vetamlugim”)
                                         by virtue of the Patents law. Despite of the above, it is hereby agreed that if Company
                                         will be forced, by any entity or authority, to pay me or whoever in my place, any compensation
                                         due to the rights stipulated above, this payment will be considered as my debt to Company,
                                         hence Company shall be entitled to offset and deduct this payment from any other sum
                                         that I am entitled to from Company according to this Undertaking (or according to other
                                         binding agreement between me and Company), including from the sum that I will be entitled
                                         to receive from Company as mentioned above.

 

		4.3.	I
                                         undertake to sign any document and to do any other act required in order to assign and
                                         register the said rights in the name of Company, or to prove Company’s rights,
                                         if and to the extent that this is required in the opinion of Company and/or Company’s
                                         legal counsels.

 

		4.4.	I
                                         shall not challenge Company’s intellectual property rights in any way, including
                                         without limitation, by filing to any court, patent or other authority, a claim, opposition
                                         or request for cancellation against such rights.

 

	5.	The
                                         restrictions of use and disclosure set forth in this undertaking shall not apply to any
                                         Confidential Information and Confidential Documents which after they were disclosed became,
                                         available to the general public, through no breach of a confidentiality undertaking towards
                                         Company.

 

	6.	It
                                         is recorded that in the course of my duties I (i) have acquired and/or will acquire considerable
                                         know-how in and will learn of Company’s techniques relating to the business; (ii)
                                         will have access to names of customers with whom Company does business, whether embodied
                                         in written form or otherwise; (iii) will have the opportunity of forging personal links
                                         with customers of Company; and (iv) generally will have the opportunity of learning and
                                         acquiring the trade secrets, business connections and other Confidential Information
                                         appertaining to Company’s business.

 

	7.	I
                                         acknowledged that the only effective and reasonable manner in which Company’s rights
                                         in respect of its business secrets and customer connections can be protected is the restraint
                                         I am imposing upon myself as set forth hereunder. Therefore, in consideration of the
                                         non-competition payment, as set in my employment agreement, I hereby undertake that during
                                         the term of my employment with Company and for the duration of the Restraint Period,
                                         whether as proprietor, partner, director, shareholder, member, employee, consultant,
                                         contractor, financier, agent, representative, assistant, trustee or beneficiary of a
                                         trust or otherwise and whether for reward or not, directly or indirectly, I shall not
                                         –

 

		7.1.	Carry
                                         on or be interested or engaged in or concerned with or employed by any company, close
                                         corporation, firm, undertaking or concern which carries on, in the Prescribed Areas any
                                         business which sells Prescribed Goods and/or Competing Goods or renders Prescribed Services
                                         or Competing Services or in the course of which Prescribed Goods or Competing Goods are
                                         sold and/ or Prescribed Services or Competing Services are rendered; provided that I
                                         shall not be deemed to have breached my undertaking by reason of my – (i)
                                         holding shares in Company; or (ii) holding shares in any company the shares of which
                                         do not in aggregate constitute more than 5% (five per cent) of any class of the issued
                                         share capital of such company and which are listed on a recognized stock exchange if
                                         the shares owned by me or by my relatives (as defined in the Israeli Companies Law 1999)
                                         which do not in the aggregate constitute more than 5% (five per cent) of any class of
                                         the issued share capital of such company.

 

    12

     

    

 

		7.2.	Not
                                         to solicit, on my own account or for any other person, the services of, or endeavor to
                                         entice away from Company any director, employee, consultant or a subcontractor of, or
                                         any other person related to Company, who during the period of 12 months prior to such
                                         termination occupied a senior or managerial position in relation
                                         to Company, and/or who was likely (in the opinion of Company) to be: (i) in possession
                                         of Confidential Information; or (ii) able to influence the customers’ connections
                                         of Company (whether or not such person would commit any breach of his contract of employment
                                         or engagement with Company).

 

		7.3.	Furnish
                                         any information or advice (whether oral or written) to any prescribed customer that I
                                         intend to or will, directly or indirectly, be interested or engaged in or concerned with
                                         or employed by any company, close corporation, firm, undertaking or concern carried on
                                         in any of the Prescribed Areas which sells Prescribed Goods and/or Competing Goods or
                                         renders Prescribed Services and/or Competing Services or in the course of which Prescribed
                                         Goods and/or Competing Goods are sold and/or Prescribed Services or Competing Services
                                         are rendered during the Restraint Period; or

 

		7.4.	Furnish
                                         any information or advice (whether oral or written) to any Prescribed Customer or use
                                         any other means or take any other action which is directly or indirectly designed, or
                                         in the ordinary course of events calculated, to result in any such Prescribed Customer
                                         terminating his association with Company and/or transferring his business to or purchasing
                                         any Prescribed Goods or Competing Goods or accepting the rendering of any Prescribed
                                         Services or Competing Services from any person other than the Company, or attempt to
                                         do so.

 

		7.5.	Solicit
                                         orders from Prescribed Customers for the Prescribed Goods and/or any Competing Goods
                                         and/or the Prescribed Services and/or any Competing Services; or canvass business in
                                         respect of the Prescribed Goods and/or any Competing Goods and/or the Prescribed Services
                                         and/or Competing Services from Prescribed Customers; or sell or otherwise supply any
                                         Prescribed Goods and/or Competing Goods to any Prescribed Customer; or render any Prescribed
                                         Services and/or Competing Services to any Prescribed Customer; or purchase any Prescribed
                                         Goods and/or Competing Goods from any Prescribed Supplier or accept the rendering of
                                         any Prescribed Services and/or Competing Services from it; or solicit appointment as
                                         a distributor, licensee, agent or representative of any Prescribed Supplier in respect
                                         of Prescribed Goods and/or Prescribed Services, including on behalf of or for the benefit
                                         of a Prescribed Supplier.

 

Each
of the undertakings set out in this Section 7 (including those appearing in a single sub-section) is severable inter alia as
to (i) the nature of interest, act or activity; (ii) the categories of persons falling within the definition of Prescribed
Customers; (iii) the categories of goods falling within the definition of the Prescribed Goods and Competing Goods; (iv) the categories
of services falling within the definition of the Prescribed Services and Competing Services; and (v) the categories of persons
falling within the definition of Prescribed Supplier.

 

    13

     

    

 

	8.	It
                                         is agreed and recorded that, without prejudice to any right or remedy which is available
                                         to Company under any law or agreement, the unauthorized disclosure or use of any Confidential
                                         Information and Confidential Documents or a breach of my undertakings pursuant to Section
                                         7 above, will cause immediate or irreparable injury to the Company and that the Company
                                         cannot be adequately compensated for such injury in monetary damages, then, in order
                                         to safeguard the Company from any possible breach of confidentiality, I consent in advance
                                         that Company will be permitted to obtain, from any court or tribunal, any temporary or
                                         permanent injunctive relief necessary to prevent such unauthorized disclosure or use,
                                         or threat of unauthorized disclosure or use.

 

	9.	This
                                         Undertaking shall form an integral part of my employment agreement with the Company and
                                         a breach of any of my obligations hereunder, shall also constitute a material breach
                                         of such employment agreement.

 

	10.	This
                                         Undertaking shall be interpreted and construed in accordance with the laws of the State
                                         of Israel and the competent courts in Tel-Aviv-Jaffa shall have exclusive jurisdiction
                                         for all matters pertaining or relating thereto.

 

	11.	If
                                         any condition, term or covenant of this Undertaking shall at any time be held to be void,
                                         invalid or unenforceable, such condition, covenant or term shall be construed as severable
                                         and such holding shall attach only to such condition, covenant or term and shall not
                                         in any way affect or render void, invalid or unenforceable any other condition, covenant
                                         or term of this Undertaking, and this Undertaking shall be carried out as if such void,
                                         invalid or unenforceable term were not embodied herein.

 

	12.	Unless
                                         specifically limited herein, my undertakings hereunder shall be valid: (i) during the
                                         term of my employment with the Company, and unless the Company waived such right in writing,
                                         following termination of my employment with the Company (and will survive such termination
                                         or expiration) without time limitation; (ii) in Israel or outside Israel, and - (iii)
                                         whether such undertakings may or may not be registered under any register prescribed
                                         by law.

 

Date:
November 5, 2019

 

Name:
Yehuda Holtzman

 

Signature:
/s/ Yehuda Holtzman                           

 

 

14EX-4.1

 Exhibit 4.1 

CERTIFICATE OF DESIGNATIONS 

OF 
 7.375% SERIES C
CUMULATIVE REDEEMABLE 
 PERPETUAL PREFERENCE SHARES 

OF 
 TRITON INTERNATIONAL
LIMITED 
 ****************************** 

Section 1. Number of Shares and Designation. This series of preference
shares shall be designated as the “7.375% Series C Cumulative Redeemable Perpetual Preference Shares, par value $0.01 per share” (the “Series C Preference Shares”). The Series C Preference Shares shall be perpetual,
subject to the provisions of Section 4 hereof, and the authorized number of Series C Preference Shares shall be 7,000,000 shares. The number of Series C Preference Shares may be increased from time to time pursuant to the
provisions of Section 12 hereof and any such additional Series C Preference Shares shall form a single series with the Series C Preference Shares. Each Series C Preference Share shall have the same designations, rights,
preferences, powers, restrictions and limitations as every other Series C Preference Share. 
 Section 2. Dividends. 

(a) Dividend Rate. Holders of the Series C Preference Shares are entitled to receive, when, as and if declared by the board of directors
of the Company (the “Board”) or an authorized committee thereof, out of funds legally available for the payment of dividends, cumulative cash dividends at a rate of 7.375% of the $25.00 liquidation preference per annum (the
“Dividend Rate”). 
 (b) Dividend Payment Date; Dividend Record Date. The “Dividend Payment
Dates” for the Series C Preference Shares will be the 15th day of each March, June, September and December, commencing on December 15, 2019. The period from and including the
date of issuance of the Series C Preference Shares or any Dividend Payment Date to but excluding the next Dividend Payment Date is a “Dividend Period.” Dividends will accumulate in each such Dividend Period from and including
the preceding Dividend Payment Date or the initial issue date, as the case may be, to, but excluding, the applicable Dividend Payment Date for such Dividend Period. If any Dividend Payment Date is not a Business Day, then the dividend which would
otherwise have been payable on such Dividend Payment Date will be paid on the next succeeding Business Day, and no additional dividends or other sums will accrue on the amount so payable for the period from and after such Dividend Payment Date to
that next succeeding Business Day. “Business Day” means any day on which The New York Stock Exchange is open for trading and which is not a Saturday, a Sunday or other day on which banks in New York City or Bermuda are
authorized or required by law to close. Dividends on the Series C Preference Shares will be payable based on a 360-day year consisting of twelve 30-day months. Dividends
on the Series C Preference Shares, if declared, will be payable on each Dividend Payment Date to holders of record as they appear in the Company’s stock records for the Series C Preference Shares at the close of business, New York City
time, on the applicable record date, which is the fifth Business Day immediately preceding the applicable Dividend Payment Date, except that in the case of payments of dividends in arrears, the record date with respect to a Dividend Payment Date
will be such date as may be designated by the Board. 
 (c) Limiting Documents. No dividends on the Series C Preference Shares shall
be authorized by the Board or paid or set apart for payment by the Company at any time when the payment thereof would be unlawful under the laws of Bermuda, or when the terms and provisions of any agreement of the Company, including any agreement
relating to the Company’s indebtedness (the “Limiting Documents ”), prohibit the authorization, payment or setting apart for payment thereof or provide that the authorization, payment or setting apart for payment thereof
would constitute a breach of the Limiting Documents or a default under the Limiting Documents, or if the authorization, payment or setting apart for payment shall be restricted or prohibited by law. 

  
 1 

 (d) So long as the Series C Preference Shares are held of record by the nominee of the
Securities Depository (as defined below), declared dividends will be paid to the Securities Depository in same-day funds on each Dividend Payment Date. The Securities Depository will credit accounts of its
participants in accordance with the Securities Depository’s normal procedures. The participants will be responsible for holding or disbursing such payments to beneficial owners of the Series C Preference Shares in accordance with the
instructions of such beneficial owners. 
 (e) Dividends on Junior Securities or Parity Securities. No dividend may be declared
or paid or set apart for payment on any Junior Securities (as defined in Section 7) (other than a dividend payable solely in shares of Junior Securities) unless full cumulative dividends have been or contemporaneously are
being paid or provided for on all outstanding Series C Preference Shares and any Parity Securities (as defined in Section 7) through the most recent respective dividend payment dates. In addition, in the event that any
dividends on the Series C Preference Shares and any Parity Securities are in arrears, the Company may not repurchase, redeem or otherwise acquire, in whole or in part, any Series C Preference Shares or Parity Securities except pursuant to a purchase
or exchange offer made on the same terms to all holders of Series C Preference Shares and any Parity Securities. The common shares, par value US$0.01 per share, of the Company (the “Common Shares”) and any other Junior
Securities may not be redeemed, repurchased or otherwise acquired unless there are no dividends on the Series C Preference Shares and any Parity Securities in arrears. 

(f) Payment of Accrued and Unpaid Dividends. Accumulated dividends in arrears for any past Dividend Period may be declared by the
Board and paid on any date fixed by the Board, whether or not a Dividend Payment Date, to holders of the Series C Preference Shares on the record date for such payment, which may not be more than 60 days, nor less than 15 days, before such payment
date. Subject to the next succeeding sentence, if all accumulated dividends in arrears on all outstanding Series C Preference Shares and any Parity Securities have not been declared and paid, or sufficient funds for the payment thereof have not been
set apart, payment of accumulated dividends in arrears will be made in order of their respective Dividend Payment Dates, commencing with the earliest. If less than all dividends payable with respect to all Series C Preference Shares and any Parity
Securities are paid, any partial payment will be made pro rata with respect to the Series C Preference Shares and any Parity Securities entitled to a dividend payment at such time in proportion to the aggregate amounts remaining due in respect of
such shares at such time. Holders of the Series C Preference Shares will not be entitled to any dividend, whether payable in cash, property or stock, in excess of full cumulative dividends. No interest or sum of money in lieu of interest will be
payable in respect of any dividend payment which may be in arrears on the Series C Preference Shares. 

Section 3. Liquidation Preference. The holders of Series C Preference
Shares shall be entitled, in the event of any liquidation, dissolution or winding up of the Company’s affairs, whether voluntary or involuntary, to receive the liquidation preference of $25.00 per share in cash plus an amount equal to
accumulated and unpaid dividends thereon to the date fixed for payment of such amount (whether or not declared), and no more, before any distribution will be made to the holders of the Common Shares or any other Junior Securities. A consolidation or
merger of the Company with or into any other entity, individually or in a series of transactions, will not be deemed a liquidation, dissolution or winding up of the Company’s affairs for this purpose. In the event that the Company’s assets
available for distribution to holders of the Series C Preference Shares and any other Parity Securities are insufficient to permit payment of all required amounts, the Company’s assets then remaining shall be distributed among the Series C
Preference Shares and any Parity Securities, as applicable, ratably on the basis of their relative aggregate liquidation preferences. After payment of all required amounts to the holders of the outstanding Series C Preference Shares and other Parity
Securities, the Company’s remaining assets and funds shall be distributed among the holders of the Common Shares and any other Junior Securities then outstanding according to their respective rights. 

Section 4. Redemption. 

(a) Optional Redemption. On and after December 15, 2024 the Company may, at its option, upon not less than thirty
(30) days’ nor more than sixty (60) days’ written notice, redeem the Series C Preference Shares, in whole or in part, at any time or from time to time, for cash at a redemption price of $25.00 per share of Series C Preference
Shares, plus an amount equal to all accumulated and unpaid dividends thereon to, but not including, the date fixed for redemption. Any such optional redemption shall be effected only out of funds legally available for such purpose, whether or not
declared. The Company may undertake multiple redemptions. 

  
 2 

 (b) Optional Redemption Upon a Change of Control Triggering Event. Upon the
occurrence of a Change of Control Triggering Event (as defined below), the Company may, at its option, redeem the Series C Preference Shares in whole or in part within 120 days after the first date on which such Change of Control Triggering Event
occurred (the “Change of Control Redemption Period”), by paying the liquidation preference of $25.00 per Series C Preference Share, plus all accumulated and unpaid dividends to, but not including, the redemption date, whether
or not declared. If, prior to the Change of Control Conversion Date (as defined in Section 5), the Company exercises its right to redeem the Series C Preference Shares as described in the immediately preceding sentence or
as described in Section 4(a), holders of the Series C Preference Shares that the Company has elected to redeem will not have the conversion right described in Section 5. 

“Change of Control” means the occurrence of either of the following after the original issue date of the Series C
Preference Shares: 
  

	 	•	 	 the direct or indirect lease, sale, transfer, conveyance or other disposition (other than by way of merger,
consolidation or business combination), in one or a series of related transactions, of all or substantially all of the properties or assets of the Company and its subsidiaries taken as a whole to any “person” (as that term is used in
Section 13(d)(3) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)); or 

  

	 	•	 	 the consummation of any transaction (including, without limitation, any merger, consolidation or business
combination), the result of which is that any person (as defined above), becomes the beneficial owner, directly or indirectly, of more than 50% of the voting interests of the Company, measured by voting power rather than percentage of interests.

 “Change of Control Triggering Event” means the occurrence of a Change of Control that is
accompanied or followed by either a downgrade by one or more gradations (including both gradations within ratings categories and between ratings categories) or a withdrawal of the rating of the Series C Preference Shares within the Ratings Decline
Period (in any combination) by the Named Rating Agency (as defined below) then rating the Series C Preference Shares, as a result of which the rating of the Series C Preference Shares on any day during the Ratings Decline Period is withdrawn or is
below the rating by such Named Rating Agency in effect immediately preceding the first public announcement of the Change of Control (or occurrence thereof if such Change of Control occurs prior to public announcement). 

“Named Rating Agency” means (i) S&P and (ii) if S&P ceases to rate the Series C Preference Shares or
fails to rate the Series C Preference Shares, as the case may be, for reasons outside of the Company’s control, a “nationally recognized statistical rating organization” as defined in Section 3(a)(62) under the Exchange Act
selected by us as a replacement agency for S&P. 
 “Ratings Decline Period” means the period that
(i) begins on the occurrence of a Change of Control and (ii) ends 60 days following consummation of such Change of Control. 

“S&P” means S&P Global Ratings, a division of S&P Global Inc. 

(c) Redemption Procedures. 

(i) Notice of redemption will be mailed at least thirty (30) days but not more than sixty (60) days before the
scheduled redemption date to each holder of record of Series C Preference Shares at the address shown on the share transfer books of the Company maintained by the registrar and transfer agent for the Series C Preference Shares (the
“Registrar and Transfer Agent”). Each notice shall state: (i) the redemption date; (ii) the number of Series C Preference Shares to be redeemed and, if less than all outstanding Series C Preference Shares are
to be redeemed, the number (and the identification) of shares to be redeemed from such holder; (iii) the redemption price of $25.00 per Series C Preference Share, plus any accrued and unpaid dividends to, but excluding the date of redemption;
(iv) the place where the Series C Preference Shares are to be redeemed and shall be presented and surrendered for payment of the redemption price therefor; and (v) that dividends on the Series C Preference Shares to be redeemed will cease
to accrue from and after such redemption date. If fewer than all of the outstanding Series C Preference Shares are to be redeemed, the number of shares to be redeemed will be determined by the Company, and such shares will be redeemed by such method
of selection as the Securities Depository shall determine, pro rata or by lot, with adjustments to avoid redemption of fractional shares. So long as all Series C Preference Shares are held of record by the nominee of the Securities Depository, the
Company will give notice, or cause notice to be given, to the Securities 

  
 3 

 
Depository of the number of Series C Preference Shares to be redeemed, and the Securities Depository will determine the number of Series C Preference Shares to be redeemed from the account of
each of its participants holding such shares in its participant account. Thereafter, each participant will select the number of shares to be redeemed from each beneficial owner for whom it acts (including the participant, to the extent it holds
Series C Preference Shares for its own account). A participant may determine to redeem Series C Preference Shares from some beneficial owners (including the participant itself) without redeeming Series C Preference Shares from the accounts of other
beneficial owners. 
 (ii) So long as the Series C Preference Shares are held of record by the nominee of the Securities
Depository, the redemption price will be paid by the Paying Agent (as defined below) to the Securities Depository on the redemption date. The normal procedures of The Depository Trust Company (“DTC”), as the initial
Securities Depository, provide for it to distribute the amount of the redemption price in same-day funds to its participants who, in turn, are expected to distribute such funds to the persons for whom they are
acting as agent. 
 (iii) If the Company gives or causes to be given a notice of redemption, then the Company shall deposit
with the paying agent for the Series C Preference Shares (the “Paying Agent”) funds sufficient to redeem the Series C Preference Shares as to which notice has been given by the close of business, New York
City time, no later than the Business Day immediately preceding the date fixed for redemption, and shall give the Paying Agent irrevocable instructions and authority to pay the redemption price to the holder or holders thereof upon surrender or
deemed surrender (which will occur automatically if the certificate representing such shares is issued in the name of the Securities Depository or its nominee) of the certificates therefor. If notice of redemption shall have been given, unless the
Company defaults in providing funds sufficient for such redemption at the time and place specified for payment pursuant to the notice, then from and after the date fixed for redemption, all dividends on such shares will cease to accumulate and all
rights of holders of such shares as the Company’s shareholders will cease, except the right to receive the redemption price, including an amount equal to accumulated and unpaid dividends through the date fixed for redemption, whether or not
declared. The Company shall be entitled to receive from the Paying Agent the interest income, if any, earned on such funds deposited with the Paying Agent (to the extent that such interest income is not required to pay the redemption price of the
shares to be redeemed), and the holders of any shares so redeemed will have no claim to any such interest income. Any funds deposited with the Paying Agent hereunder by the Company for any reason, including, but not limited to, redemption of Series
C Preference Shares, that remain unclaimed or unpaid after two years after the applicable redemption date or other payment date, shall be, to the extent permitted by law, repaid to the Company upon its written request, after which repayment the
holders of the Series C Preference Shares entitled to such redemption or other payment shall have recourse only to the Company. 

(iv) If only a portion of the Series C Preference Shares represented by a certificate has been called for redemption, upon
surrender of the certificate to the Paying Agent (which will occur automatically if the certificate representing such shares is registered in the name of the Securities Depository or its nominee), the Paying Agent shall issue to the holder of such
shares a new certificate (or adjust the applicable book-entry account) representing the number of Series C Preference Shares represented by the surrendered certificate that have not been called for redemption. 

(v) Notwithstanding any notice of redemption, there shall be no redemption of any Series C Preference Shares called for
redemption until funds sufficient to pay the full redemption price of such shares, including all accumulated and unpaid dividends to the date of redemption, whether or not declared, have been deposited by the Company with the Paying Agent. 

(vi) Each of the Registrar, Transfer Agent and Paying Agent shall be selected by the Company in its sole discretion. Initially,
Computershare Trust Company, N.A. shall act as Registrar, Transfer Agent and Paying Agent. 
 Section 5. Limited Conversion
Rights Upon a Change of Control Triggering Event. 
 (a) Change of Control Conversion Right. Upon the occurrence of a Change
of Control Triggering Event, each holder of Series C Preference Shares will have the right (unless the Company has provided notice of its election to redeem Series C Preference Shares as described in Section 4) to convert
some or all of the Series C Preference Shares held by such holder on the Change of Control Conversion Date into a number of Common Shares per Series C Preference Share to be converted equal to (the “Common Share Conversion
Consideration”) the lesser of: 

  
 4 

	 	•	 	 the quotient obtained by dividing (i) the sum of the $25.00 liquidation preference plus the amount of any
accumulated and unpaid dividends to, but not including, the Change of Control Conversion Date (unless the Change of Control Conversion Date is after a record date for a Series C Preference Share dividend payment and prior to the corresponding
Dividend Payment Date, in which case no additional amount for such accumulated and unpaid dividend will be included in this sum) by (ii) the Common Share Price (as defined below), and 

 

	 	•	 	 1.35685 (which is the quotient obtained by dividing (i) the $25.00 liquidation preference by (ii) one-half of the closing price of the common shares on the NYSE on the trading day immediately preceding October 30, 2019, which was $36.85), 

subject, in each case, to certain adjustments and to provisions for (i) the payment of any Alternative Conversion Consideration (as defined below) and
(ii) splits, combinations and dividends in the form of equity issuances. 
 (b) Conversion Consideration. In the case of a Change
of Control pursuant to which the Common Shares will be converted into cash, securities or other property or assets (including any combination thereof), a holder of Series C Preference Shares electing to exercise its Change of Control Conversion
Right (as defined below) will receive upon conversion of such Series C Preference Shares elected by such holder the kind and amount of such consideration that such holder would have owned or been entitled to receive upon the Change of Control had
such holder held a number of Common Shares equal to the Common Share Conversion Consideration immediately prior to the effective time of the Change of Control (the “Alternative Conversion
Consideration”); provided, however, that if the holders of the Common Shares have the opportunity to elect the form of consideration to be received in the Change of Control, the consideration that the holders of
Series C Preference Shares electing to exercise their Change of Control Conversion Right will receive will be the form and proportion of the aggregate consideration elected by the holders of the Common Shares who participate in the determination
(based on the weighted average of elections) and will be subject to any limitations to which all holders of the Common Shares are subject, including, without limitation, pro rata reductions applicable to any portion of the consideration payable in
the Change of Control. The Company will not issue fractional Common Shares upon the conversion of the Series C Preference Shares and, instead, will pay the cash value of such fractional shares. 

If the Company provides a redemption notice pursuant to Section 4, holders of Series C Preference Shares will not
have any right to convert the Series C Preference Shares that the Company has elected to redeem and any Series C Preference Shares subsequently selected for redemption that have been tendered for conversion pursuant to the Change of Control
Conversion Right will be redeemed on the related redemption date instead of converted on the Change of Control Conversion Date. 
 Within
five days following the expiration of the Change of Control Redemption Period (or, if the Company waives its right to redeem the Series C Preference Shares prior to the expiration of the Change of Control Redemption Period, within five days
following the date of such waiver), the Company will provide to the holders of the Series C Preference Shares written notice (the “Conversion Notice”) of the occurrence of the Change of Control Triggering Event that describes
the resulting Change of Control Conversion Right. The Conversion Notice will state the following: 
  

	 	•	 	 the events constituting the Change of Control Triggering Event; 

 

	 	•	 	 the date of the Change of Control Triggering Event; 

 

	 	•	 	 the date on which the Change of Control Redemption Period expired or was waived; 

 

	 	•	 	 the last date on which the holders of Series C Preference Shares may exercise their Change of Control Conversion
Right; 

  

	 	•	 	 the method and period for calculating the Common Share Price; 

 

	 	•	 	 the Change of Control Conversion Date; 

 

	 	•	 	 if applicable, the type and amount of Alternative Conversion Consideration entitled to be received per Series C
Preference Share; and 

  

	 	•	 	 the procedure that the holders of Series C Preference Shares must follow to exercise the Change of Control
Conversion Right. 

 The Company will issue a press release for publication through a news or press organization as is reasonably expected
to broadly disseminate the relevant information to the public, or post notice on its website, in any event prior to the opening of business on the first Business Day following any date on which the Company provides the Conversion Notice to the
holders of Series C Preference Shares. 

  
 5 

 Holders of Series C Preference Shares that choose to exercise their Change of Control Conversion Right will
be required prior to the close of business on the third Business Day preceding the Change of Control Conversion Date, to notify the Company of the number of Series C Preference Shares to be converted and otherwise to comply with any applicable
procedures contained in the Conversion Notice or otherwise required by the Securities Depository for effecting the conversion. 

“Change of Control Conversion Right” means the right of a holder of Series C Preference Shares to convert some or all
of the Series C Preference Shares held by such holder on the Change of Control Conversion Date into a number of Common Shares per Series C Preference Share pursuant to the conversion provisions in this Section 5 with
respect to the Series C Preference Shares. 
 “Change of Control Conversion Date” means the date fixed by the Board,
in its sole discretion, as the date the Series C Preference Shares are to be converted, which will be a Business Day that is no fewer than 20 days nor more than 35 days after the date on which the Company provides the Conversion Notice to holders of
the Series C Preference Shares. 
 “Common Share Price” means (i) the amount of cash consideration per Common
Share, if the consideration to be received in the Change of Control by the holders of the Common Shares is solely cash; and (ii) the average of the closing prices for the Common Shares on the NYSE for the ten consecutive trading days
immediately preceding, but not including, the Change of Control Conversion Date, if the consideration to be received in the Change of Control by the holders of the Common Shares is other than solely cash. 

Notwithstanding the foregoing, the holders of Series C Preference Shares will not have a conversion right upon a Change of Control if
(i) the acquiror has shares listed or quoted on the NYSE, the NYSE American or NASDAQ or listed or quoted on an exchange or quotation system that is a successor to the NYSE, the NYSE American or NASDAQ, and (ii) the Series C Preference
Shares remain continuously listed or quoted on the NYSE, the NYSE American or NASDAQ or listed or quoted on an exchange or quotation system that is a successor to the NYSE, the NYSE American or NASDAQ. 

Section 6. Status of Acquired Shares. All Series C Preferred Shares
redeemed and cancelled by the Company in accordance with Section 4 hereof, or otherwise acquired by the Company, shall be restored to the status of authorized but unissued shares of undesignated preference shares of the
Company. 
 Section 7. Ranking. The Series C Preference Shares will,
with respect to anticipated quarterly dividends and distributions upon the liquidation, winding-up and dissolution of the Company’s affairs, rank: (i) senior to the Company’s Common Shares and
to each other class or series of capital stock established after the original issue date of the Series C Preference Shares that is not expressly made senior to, or on parity with, the Series C Preference Shares as to the payment of dividends and
amounts payable upon liquidation, dissolution or winding up, whether voluntary or involuntary (“Junior Securities”); (ii) equal to the “8.50% Series A Cumulative Redeemable Perpetual Preference Shares, par value $0.01
per share” (the “Series A Preference Shares”), the “8.00% Series B Cumulative Redeemable Perpetual Preference Shares, par value $0.01 per share” (the “Series B Preference Shares”) and any other class or series of
capital stock established after the original issue date of the Series C Preference Shares that is expressly made equal to the Series C Preference Shares as to the payment of dividends and amounts payable upon liquidation, dissolution or winding up,
whether voluntary or involuntary (“Parity Securities”); and (iii) junior to any class or series of capital stock established after the original issue date of the Series C Preference Shares that is expressly made senior
to the Series C Preference Shares as to the payment of dividends and amounts payable upon liquidation, dissolution or winding up, whether voluntary or involuntary (“Senior Securities”). 

The Company may issue Junior Securities from time to time in one or more series without the consent of the holders of the Series C Preference
Shares. The Company may also issue Parity Securities from time to time in one or more series as long as the cumulative dividends on the Series C Preference Shares are not in arrears. The Company’s ability to issue Senior Securities shall be
limited as described in Section 8 hereof. 

  
 6 

 Section 8. Voting Rights. The
Series C Preference Shares shall have no voting rights, except as provided in this Section 8 and as otherwise provided by Bermuda law. 

(a) In the event that dividends, payable on the Series C Preference Shares are in arrears for six or more quarterly periods, whether or
not consecutive, holders of the Series C Preference Shares, (voting together as a class with Series A Preference Shares, Series B Preference Shares and all other classes or series of Parity Securities upon which like voting rights have been
conferred and are exercisable) shall be entitled to elect two additional directors to serve on the Board, and the size of the Board will be increased as needed to accommodate such change (unless the size of the Board has already been increased by
reason of the election of directors by holders of Parity Securities upon which like voting rights have been conferred and with which the Series C Preference Shares voted as a class for the election of such director). Dividends payable on the Series
C Preference Shares will be considered to be in arrears for any quarterly period for which full cumulative dividends through the most recent Dividend Payment Date have not been paid on all outstanding Series C Preference Shares. The right of such
holders of Series C Preference Shares to elect a member of the Board shall continue until such time as there are no accumulated and unpaid dividends in arrears on the Series C Preference Shares, at which time such right shall terminate, subject to
revesting in the event of each and every subsequent failure to pay six quarterly dividends as described above. Upon any termination of the right of the holders of the Series C Preference Shares and any other Parity Securities to vote as a class for
such directors, the term of office of such directors then in office elected by such holders voting as a class shall terminate immediately. Any directors elected by the holders of the Series C Preference Shares and any other Parity Securities shall
each be entitled to one vote on any matter before the Board. 
 (b) Subject to the Companies Act 1981 of Bermuda, as amended, none of the
special rights attached to the Series C Preference Shares may be altered or abrogated by any amendment to the Company’s bye-laws (the “Bye-laws”)
or this Certificate of Designations without (i) the consent in writing of the holders of not less than seventy-five percent (75%) of the issued and outstanding Series C Preference Shares, voting as a single class or (ii) the sanction of a
resolution passed by the holders of not less than seventy-five percent (75%) of the issued and outstanding Series C Preference Shares, voting as a single class, at a separate general meeting of the holders of Series C Preference Shares voting in
person or by proxy. To any such separate general meeting, all the provisions of the Bye-Laws as to general meetings of the Company shall mutatis mutandis apply, but so that the necessary quorum shall be two
(2) or more persons holding or representing by proxy the majority of the Series C Preference Shares, that every holder of Series C Preference Shares shall be entitled on a poll to one vote for every such share held by such holder and that any
holder of Series C Preference Shares present in person or by proxy may demand a poll; provided, however, that if the Series C Preference Shares shall have only one shareholder, such shareholder present in person or by proxy shall constitute the
necessary quorum. 
 (c) In addition, unless the Company has received the affirmative vote or consent of the holders of at least two-thirds of the outstanding Series C Preference Shares, voting as a class together with holders of the Series A Preference Shares, the Series B Preference Shares and any other Parity Securities upon which like
voting rights have been conferred and are exercisable, the Company may not (i) issue any Parity Securities if the cumulative dividends payable on outstanding Series C Preference Shares are in arrears or (ii) create or issue any Senior
Securities. 
 (d) On any matter described above in which the holders of the Series C Preference Shares are entitled to vote as a class, such
holders will be entitled to one vote per share. The Series C Preference Shares held by the Company or any of its subsidiaries or affiliates will not be entitled to vote. Series C Preference Shares held in nominee or street name account will be voted
by the broker or other nominee in accordance with the instruction of the beneficial owner unless the arrangement between the beneficial owner and his nominee provides otherwise. 

Section 9. Record Holders. The Company and the Transfer Agent shall deem
and treat the record holder of any Series C Preference Shares as the true and lawful owner thereof for all purposes, and neither the Company nor the Registrar and Transfer Agent shall be affected by any notice to the contrary. 

Section 10. Sinking Fund. The Series C Preference Shares shall not be
entitled to the benefits of any sinking fund. 
 Section 11. Preemptive
Rights. No holders of Series C Preference Shares will, as holders of Series C Preference Shares, have any preemptive rights to purchase or subscribe for the Common Shares or any of the Company’s other securities. 

Section 12. Amendment of Resolution. The Board reserves the right from
time to time to increase (but not in excess of the total number of authorized shares of preference shares) or decrease (but not below the number of Series C Preference Shares then outstanding) the number of authorized Series C Preference Shares by
further resolution adopted by the Board stating that such increase or decrease, as the case may be, has been so authorized and in other respects to amend this Certificate of Designations within the limitations provided by law and the Bye-Laws. 

  
 7 

 Section 13. Book Entry. 

(a) Global Certificates. The Series C Preference Shares shall be initially in the form of one or more fully registered global
certificates (“Global Preferred Shares”) issued to DTC (and its successors and assigns or with such other depositary of the Company’s choosing that is a “clearing Company” within the meaning of the New York
Uniform Commercial Code and a clearing agency under Section 17A of the Exchange Act (the “Securities Depository”)) and registered in the name of the Securities Depository or its nominee (which initially shall be
Cede & Co, as nominee of DTC), duly executed by the Company and authenticated by the Registrar and Transfer Agent, and deposited with the Registrar and Transfer Agent, as custodian for DTC (or such other custodian as the Securities
Depository may direct). The Series C Preference Shares shall continue to be represented by Global Preferred Shares registered in the name of the Securities Depository or its nominee, and no beneficial holder of the Series C Preference Shares will be
entitled to receive a certificate evidencing such shares unless otherwise required by law or the Securities Depository gives notice to the Company of its intention to resign or is no longer eligible to act as Securities Depository and the Company
has not selected a substitute Securities Depository within 60 days thereafter. The number of Series C Preference Shares represented by Global Preferred Shares may from time to time be increased or decreased by adjustments made on the records of the
Registrar and Transfer Agent and the Securities Depository as hereinafter provided. Members of, or participants in, the Securities Depository (“Agent Members ”) shall have no rights under these terms of the Series C Preferred
Shares with respect to any Global Preferred Shares held on their behalf by the Securities Depository or by the Registrar and Transfer Agent as the custodian of the Securities Depository or under such Global Preferred Shares, and the Securities
Depository may be treated by the Company, the Registrar and Transfer Agent and any agent of the Company or the Registrar and Transfer Agent as the absolute owner of such Global Preferred Shares for all purposes whatsoever. Notwithstanding the
foregoing, nothing herein shall prevent the Company, the Registrar and Transfer Agent or any agent of the Company or the Registrar and Transfer Agent from giving effect to any written certification, proxy or other authorization furnished by the
Securities Depository or impair, as between the Securities Depository and its Agent Members, the operation of customary practices of the Securities Depository governing the exercise of the rights of a holder of a beneficial interest in any Global
Preferred Shares. 

  
 8

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