Document:

EXHIBIT 4.10

                          REGISTRATION RIGHTS AGREEMENT

     REGISTRATION RIGHTS AGREEMENT (the "AGREEMENT"), dated as of December 10,
2007 (the "EXECUTION DATE"), by and among RADA Electronic Industries Ltd., a
public company organized under the laws of the State of Israel, of 7 Giborei
Israel Street, Netanya 42504, Israel (the "COMPANY"), and Howard P.L. Yeung, of
2202 Kodak House II, 39 Healthy Street East, Hong Kong, or his assigns (the
"INVESTOR").

     WHEREAS:

     A. The Company has agreed, to issue and sell to the Investor (i) senior
secured convertible note of the Company dated as of even date hereof (the
"NOTE"), which will be convertible into Ordinary Shares, (as converted, the
"CONVERSION SHARES") in accordance with the terms of the Note, and (iii) warrant
dated as of the date hereof (the "WARRANT"), which will be exercisable to
purchase Ordinary Shares (as exercised collectively, the "WARRANT SHARES").

     B. The Company has agreed to provide certain registration rights under the
Securities Act of 1933, as amended, and the rules and regulations thereunder, or
any similar successor statute (collectively, the "1933 ACT"), and applicable
state securities laws.

     NOW, THEREFORE, in consideration of the premises and the mutual covenants
contained herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Company and the Investor
hereby agree as follows:

     1.   DEFINITIONS.

     Capitalized terms used herein and not otherwise defined herein shall have
the respective meanings set forth in the Note. As used in this Agreement, the
following terms shall have the following meanings:

          a. "EFFECTIVE DATE" means the date the Registration Statement has been
     declared effective by the SEC.

          b. "EFFECTIVENESS DEADLINE" means the date which is 60 days after the
     Fling Deadline, or if there is an SEC review, 120 days after the Filing
     Deadline.

          c. "FILING DEADLINE" means 30 days after the Company files its Annual
     Report on Form 20F for the period ending on December 31, 2007, but in any
     event not later than April 15, 2008.

          d. "REGISTER," "REGISTERED," and "REGISTRATION" refer to a
     registration effected by preparing and filing one or more Registration
     Statements (as defined below) in compliance with the 1933 Act and pursuant
     to Rule 415 and the declaration or ordering of effectiveness of such
     Registration Statement(s) by the SEC.

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          e. "REGISTRABLE SECURITIES" means (i) the Conversion Shares, (ii) the
     Warrant Shares issued or issuable upon exercise of the Warrant, and (iii)
     any share capital of the Company issued or issuable with respect to the
     Conversion Shares and the Warrant Shares as a result of any share split,
     share dividend, recapitalization, exchange or similar event or otherwise,
     without regard to any limitations on conversions of the Note or exercises
     of the Warrant.

          f. "REGISTRATION STATEMENT" means a registration statement or
     registration statements of the Company filed under the 1933 Act covering
     the Registrable Securities.

          g. "RULE 415" means Rule 415 under the 1933 Act or any successor rule
     providing for offering securities on a continuous or delayed basis.

          h. "SEC" means the United States Securities and Exchange Commission.

     2.   REGISTRATION.

          a. MANDATORY REGISTRATION. The Company shall use its best efforts to
     prepare, and, as soon as practicable but in no event later than the Filing
     Deadline, file with the SEC the Registration Statement on Form F-3 covering
     the resale of all of the Registrable Securities. In the event that Form F-3
     is unavailable for such a registration, the Company shall use such other
     form as is available for such a registration, subject to the provisions of
     Section 2(c). The Company shall use its best efforts to have the
     Registration Statement declared effective by the SEC as soon as
     practicable, but in no event later than the Effectiveness Deadline.

          b. EXCLUSIVITY OF REGISTRABLE SECURITIES. In no event shall the
     Company include any securities other than Registrable Securities on any
     Registration Statement without the prior written consent of the Investor,
     which consent shall not be unreasonably withheld or delayed.

          c. INELIGIBILITY FOR FORM F-3. In the event that Form F-3 is not
     available for the registration of the resale of Registrable Securities
     hereunder, the Company shall (i) register the resale of the Registrable
     Securities on another appropriate form reasonably acceptable to the
     Investor and (ii) undertake to register the Registrable Securities on Form
     F-3 as soon as such form is available, provided that the Company shall
     maintain the effectiveness of the Registration Statement then in effect
     until such time as a Registration Statement on Form F-3 covering the
     Registrable Securities has been declared effective by the SEC.

          d. SUFFICIENT NUMBER OF SHARES REGISTERED. In the event the number of
     shares available under a Registration Statement filed pursuant to Section
     2(a) is insufficient to cover all of the Registrable Securities required to
     be covered by such Registration Statement, the Company shall amend the
     applicable Registration Statement, or file a new Registration Statement (on
     the short form available therefor, if applicable), or both, so as to cover
     all of the Registrable Securities required to be covered as of the trading
     day immediately preceding the date of the filing of such amendment or new
     Registration Statement, in each case, as soon as practicable, but in any
     event not later than thirty (30) Business Days after the necessity therefor
     arises. The Company shall use its best efforts to cause such amendment
     and/or new Registration Statement to become effective as soon as
     practicable following the filing thereof. For purposes of the foregoing
     provision, the number of shares available under a Registration Statement
     shall be deemed "insufficient to cover all of the Registrable Securities"
     if at any time the number of Registrable Securities issued and issuable
     upon conversion of the Note and upon exercise of the Warrants covered by
     such Registration Statement is greater than 110% of the number of Ordinary
     Shares available for resale under such Registration Statement. The
     calculation set forth in the foregoing sentence shall be made without
     regard to any limitations on the conversion of the Note or the exercise of
     the Warrant and such calculation shall assume that the Note is then
     convertible into Ordinary Shares at the then prevailing Conversion Rate (as
     defined in the Note) and that the Warrant is then exercisable for Ordinary
     Shares at the then prevailing Exercise Price (as defined in the Warrant).

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          e. FAILURE TO FILE AND OBTAIN AND MAINTAIN EFFECTIVENESS OF
     REGISTRATION STATEMENT. If (i) a Registration Statement covering all of the
     Registrable Securities required to be covered thereby and required to be
     filed by the Company pursuant to this Agreement is (A) not filed with the
     SEC on or before the Filing Deadline (a "FILING FAILURE") or (B) not
     declared effective by the SEC on or before the respective Effectiveness
     Deadline (an "EFFECTIVENESS FAILURE") or (ii) on any day after the
     Effective Date sales of all of the Registrable Securities required to be
     included on such Registration Statement cannot be made pursuant to such
     Registration Statement (including, without limitation, because of a failure
     to keep such Registration Statement effective, to disclose such information
     as is necessary for sales to be made pursuant to such Registration
     Statement or to register a sufficient number of Ordinary Shares) (a
     "MAINTENANCE FAILURE") then, as partial relief for the damages to Investor
     by reason of any such delay in or reduction of its ability to sell the
     underlying Ordinary Shares (which remedy shall not be exclusive of any
     other remedies available at law or in equity), the Company shall pay to the
     Investor relating to such Registration Statement an amount in cash equal to
     one (1%) of the aggregate Principal Amount (as such term is defined in the
     Note) of the Investor's Registrable Securities included in such
     Registration Statement on each of the following dates: (i) the day of a
     Filing Failure and on every thirtieth day (pro rated for periods totaling
     less than thirty days) thereafter until such Filing Failure is cured; (ii)
     the day of an Effectiveness Failure (pro rated for periods totaling less
     than thirty days) and on every thirtieth day thereafter until such
     Effectiveness Failure is cured; (iii) the initial day of a Maintenance
     Failure and on every thirtieth day (pro rated for periods totaling less
     than thirty days) thereafter until such Maintenance Failure is cured. The
     payments to which the Investor shall be entitled pursuant to this Section
     2(e) are referred to herein as "REGISTRATION DELAY PAYMENTS." Registration
     Delay Payments shall be paid on the earlier of (I) the last day of the
     calendar month during which such Registration Delay Payments are incurred
     and (II) the third Business Day after the event or failure giving rise to
     the Registration Delay Payments is cured. In the event the Company fails to
     make Registration Delay Payments in a timely manner, such Registration
     Delay Payments shall bear interest at the rate of 1.5% per month (prorated
     for partial months) until paid.

     3.   RELATED OBLIGATIONS.

     At such time as the Company is obligated to file a Registration Statement
with the SEC pursuant to Section 2, the Company will use its best efforts to
effect the registration of the Registrable Securities in accordance with the
intended method of disposition thereof and, pursuant thereto, the Company shall
have the following obligations:

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          a. The Company shall submit to the SEC, within three (3) Business Days
     after the Company learns that no review of a particular Registration
     Statement will be made by the staff of the SEC or that the staff has no
     further comments on a particular Registration Statement, as the case may
     be, a request for acceleration of effectiveness of such Registration
     Statement to a time and date not later than 48 hours after the submission
     of such request. The Company shall keep each Registration Statement
     effective pursuant to Rule 415 at all times until the earlier of (i) the
     date as of which the Investor may sell all of the Registrable Securities
     covered by such Registration Statement without restriction pursuant to Rule
     144(k) (or any successor thereto) promulgated under the 1933 Act or (ii)
     the date on which the Investor shall have sold all of the Registrable
     Securities covered by such Registration Statement (the "REGISTRATION
     PERIOD"). The Company shall ensure that each Registration Statement
     (including any amendments or supplements thereto and prospectuses contained
     therein) shall not contain any untrue statement of a material fact or omit
     to state a material fact required to be stated therein, or necessary to
     make the statements therein (in the case of prospectuses, in the light of
     the circumstances in which they were made) not misleading.

          b. The Company shall prepare and file with the SEC such amendments
     (including post-effective amendments) and supplements to a Registration
     Statement and the prospectus used in connection with such Registration
     Statement, which prospectus is to be filed pursuant to Rule 424 promulgated
     under the 1933 Act, as may be necessary to keep such Registration Statement
     effective at all times during the Registration Period, and, during such
     period, comply with the provisions of the 1933 Act with respect to the
     disposition of all Registrable Securities of the Company covered by such
     Registration Statement until such time as all of such Registrable
     Securities shall have been disposed of in accordance with the intended
     methods of disposition by the seller or sellers thereof as set forth in
     such Registration Statement. In the case of amendments and supplements to a
     Registration Statement which are required to be filed pursuant to this
     Agreement (including pursuant to this Section 3(b)) by reason of the
     Company filing a report on Form 6-K, Form 20-F or any analogous report
     under the Securities Exchange Act of 1934, as amended (the "1934 ACT"), the
     Company shall have incorporated such report by reference into such
     Registration Statement, if applicable, or shall file such amendments or
     supplements with the SEC on the same day on which the 1934 Act report is
     filed which created the requirement for the Company to amend or supplement
     such Registration Statement.

          c. The Company shall furnish to the Investor, without charge, (i)
     promptly after any Registration Statement is prepared and filed with the
     SEC, at least one copy of such Registration Statement and any amendment(s)
     thereto, including financial statements and schedules, all documents
     incorporated therein by reference, and if requested by the Investor and not
     otherwise available on the Edgar System, all exhibits and each preliminary
     prospectus, (ii) upon the effectiveness of any Registration Statement, ten
     (10) copies of the prospectus included in such Registration Statement and
     all amendments and supplements thereto (or such other number of copies as
     the Investor may reasonably request) and (iii) such other documents,
     including copies of any preliminary or final prospectus, as the Investor
     may reasonably request from time to time in order to facilitate the
     disposition of the Registrable Securities owned by such Investor.

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          d. The Company shall use its reasonable efforts to (i) register and
     qualify, unless an exemption from registration and qualification applies,
     the resale by Investor of the Registrable Securities covered by a
     Registration Statement under such other securities or "blue sky" laws of
     all applicable jurisdictions in the United States, (ii) prepare and file in
     those jurisdictions, such amendments (including post-effective amendments)
     and supplements to such registrations and qualifications as may be
     necessary to maintain the effectiveness thereof during the Registration
     Period, (iii) take such other actions as may be necessary to maintain such
     registrations and qualifications in effect at all times during the
     Registration Period, and (iv) take all other actions reasonably necessary
     or advisable to qualify the Registrable Securities for sale in such
     jurisdictions; provided, however, that the Company shall not be required in
     connection therewith or as a condition thereto to (x) qualify to do
     business in any jurisdiction where it would not otherwise be required to
     qualify but for this Section 3(d), (y) subject itself to general taxation
     in any such jurisdiction, or (z) file a general consent to service of
     process in any such jurisdiction. The Company shall promptly notify
     Investor of the receipt by the Company of any notification with respect to
     the suspension of the registration or qualification of any of the
     Registrable Securities for sale under the securities or "blue sky" laws of
     any jurisdiction in the United States or its receipt of actual notice of
     the initiation or threatening of any proceeding for such purpose.

          e. The Company shall notify the Investor in writing of the happening
     of any event, as promptly as practicable after becoming aware of such
     event, as a result of which the prospectus included in a Registration
     Statement, as then in effect, includes an untrue statement of a material
     fact or omission to state a material fact required to be stated therein or
     necessary to make the statements therein, in the light of the circumstances
     under which they were made, not misleading (provided that in no event shall
     such notice contain any material, nonpublic information), and promptly
     prepare a supplement or amendment to such Registration Statement to correct
     such untrue statement or omission, and deliver ten (10) copies of such
     supplement or amendment to the Investor (or such other number of copies as
     the Investor may reasonably request). The Company shall also promptly
     notify the Investor in writing (i) when a prospectus or any prospectus
     supplement or post-effective amendment has been filed, and when a
     Registration Statement or any post-effective amendment has become
     effective, (ii) of any request by the SEC for amendments or supplements to
     a Registration Statement or related prospectus or related information, and
     (iii) of the Company's reasonable determination that a post-effective
     amendment to a Registration Statement would be appropriate.

          f. The Company shall use its reasonable efforts to prevent the
     issuance of any stop order or other suspension of effectiveness of a
     Registration Statement, or the suspension of the qualification of any of
     the Registrable Securities for sale in any jurisdiction and, if such an
     order or suspension is issued, to obtain the withdrawal of such order or
     suspension as early as possible and to notify the Investor of the issuance
     of such order and the resolution thereof or its receipt of actual notice of
     the initiation or threat of any proceeding for such purpose.

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          g. The Company shall hold in confidence and not make any disclosure of
     information concerning the Investor provided to the Company unless (i)
     disclosure of such information is necessary to comply with federal or state
     securities laws, (ii) the disclosure of such information is necessary to
     avoid or correct a misstatement or omission in any Registration Statement,
     (iii) the release of such information is ordered pursuant to a subpoena or
     other final, non-appealable order from a court or governmental body of
     competent jurisdiction, or (iv) such information has been made generally
     available to the public other than by disclosure in violation of this
     Agreement or any other agreement. The Company agrees that it shall, upon
     learning that disclosure of such information concerning the Investor is
     sought in or by a court or governmental body of competent jurisdiction or
     through other means, give prompt written notice to such Investor and allow
     such Investor, at the Investor's expense, to undertake appropriate action
     to prevent disclosure of, or to obtain a protective order for, such
     information.

          h. The Company shall use its best efforts either to (i) cause all of
     the Registrable Securities covered by a Registration Statement to be listed
     on each securities exchange on which securities of the same class or series
     issued by the Company are then listed, if any, if the listing of such
     Registrable Securities is then permitted under the rules of such exchange,
     or (ii) secure designation and quotation of all of the Registrable
     Securities covered by a Registration Statement on the Nasdaq Capital
     Market. The Company shall pay all fees and expenses in connection with
     satisfying its obligation under this Section 3(h).

          i. The Company shall cooperate with the Investor and, to the extent
     applicable, facilitate the timely preparation and delivery of certificates
     (not bearing any restrictive legend) representing the Registrable
     Securities to be offered pursuant to a Registration Statement and enable
     such certificates to be in such denominations or amounts, as the case may
     be, as the Investor may reasonably request and registered in such names as
     the Investor may request.

          j. If requested by the Investor, the Company shall (i) as soon as
     practicable incorporate in a prospectus supplement or post-effective
     amendment such information as the Investor reasonably requests to be
     included therein relating to the sale and distribution of Registrable
     Securities, including, without limitation, information with respect to the
     number of Registrable Securities being offered or sold, the purchase price
     being paid therefor and any other terms of the offering of the Registrable
     Securities to be sold in such offering; (ii) as soon as practicable make
     all required filings of such prospectus supplement or post-effective
     amendment after being notified of the matters to be incorporated in such
     prospectus supplement or post-effective amendment; and (iii) as soon as
     practicable, supplement or make amendments to any Registration Statement if
     reasonably requested by an Investor holding any Registrable Securities.

          k. The Company shall use its reasonable efforts to cause the
     Registrable Securities covered by a Registration Statement to be registered
     with or approved by such other governmental agencies or authorities as may
     be necessary to consummate the disposition of such Registrable Securities.

          l. The Company shall make generally available to its security holders
     as soon as practical, but not later than ninety (90) days after the close
     of the period covered thereby, an earnings statement (in form complying
     with, and in the manner provided by, the provisions of Rule 158 under the
     1933 Act) covering a twelve-month period beginning not later than the first
     day of the Company's fiscal quarter next following the effective date of a
     Registration Statement.

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          m. The Company shall otherwise use its best efforts to comply with all
     applicable rules and regulations of the SEC in connection with any
     registration hereunder.

     4.   OBLIGATIONS OF THE INVESTOR.

          a. At least five (5) Business Days prior to the first anticipated
     filing date of a Registration Statement, the Company shall notify the
     Investor in writing of the information the Company requires from the
     Investor. It shall be a condition precedent to the obligations of the
     Company to complete the registration pursuant to this Agreement with
     respect to the Registrable Securities that the Investor shall furnish to
     the Company such information regarding itself, the Registrable Securities
     held by it and the intended method of disposition of the Registrable
     Securities held by it as shall be reasonably required to effect the
     effectiveness of the registration of such Registrable Securities and shall
     execute such documents in connection with such registration as the Company
     may reasonably request.

          b. The Investor, by acceptance of the Registrable Securities, agrees
     to cooperate with the Company as reasonably requested by the Company in
     connection with the preparation and filing of any Registration Statement
     hereunder.

          c. The Investor agrees that, upon receipt of any notice from the
     Company of the happening of any event of the kind described in the first
     sentence of 3(e), the Investor will immediately discontinue disposition of
     Registrable Securities pursuant to any Registration Statement(s) covering
     such Registrable Securities until the Investor's receipt of the copies of
     the supplemented or amended prospectus contemplated by Section 3(e) or
     receipt of notice that no supplement or amendment is required.
     Notwithstanding anything to the contrary, the Company shall cause its
     transfer agent to deliver unlegended Ordinary Shares to a transferee of an
     Investor in connection with any sale of Registrable Securities with respect
     to which an Investor has entered into a contract for sale prior to the
     Investor's receipt of a notice from the Company of the happening of any
     event of the kind described in Section 3(e) and for which the Investor has
     not yet settled.

          d. The Investor covenants and agrees that he will comply with the
     prospectus delivery requirements of the 1933 Act as applicable to him in
     connection with sales of Registrable Securities pursuant to any
     Registration Statement.

     5.   EXPENSES OF REGISTRATION.

     All reasonable expenses, other than underwriting discounts and commissions,
incurred in connection with registrations, filings or qualifications pursuant to
Sections 2 and 3, including, without limitation, all registration, listing and
qualifications fees, printers and accounting fees, and fees and disbursements of
counsel for the Company shall be paid by the Company. The Company shall also
reimburse the Investor for the standard and customary fees and disbursements of
legal counsel to the Investor in connection with registration, filing or
qualification pursuant to Sections 2 and 3 of this Agreement.

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     6.   INDEMNIFICATION.

     In the event any Registrable Securities are included in a Registration
Statement under this Agreement:

          a. To the fullest extent permitted by law, the Company will, and
     hereby does, indemnify, hold harmless and defend the Investor, the
     Investor's employees, agents, and representatives (each, an "INDEMNIFIED
     PERSON"), against any losses, claims, damages, liabilities, judgments,
     fines, penalties, charges, costs, reasonable attorneys' fees, amounts paid
     in settlement or expenses, joint or several, (collectively, "CLAIMS")
     incurred in investigating, preparing or defending any action, claim, suit,
     inquiry, proceeding, investigation or appeal taken from the foregoing by or
     before any court or governmental, administrative or other regulatory
     agency, body or the SEC, whether pending or threatened, whether or not an
     Indemnified Person is or may be a party thereto ("INDEMNIFIED DAMAGES"), to
     which any of them may become subject insofar as such Claims arise out of or
     are based upon: (i) any untrue statement or alleged untrue statement of a
     material fact in a Registration Statement or any post-effective amendment
     thereto or in any filing made in connection with the qualification of the
     offering under the securities or other "blue sky" laws of any jurisdiction
     in which Registrable Securities are offered ("BLUE SKY FILING"), or the
     omission or alleged omission to state a material fact required to be stated
     therein or necessary to make the statements therein not misleading, (ii)
     any untrue statement or alleged untrue statement of a material fact
     contained in any preliminary prospectus if used prior to the effective date
     of such Registration Statement, or contained in the final prospectus (as
     amended or supplemented, if the Company files any amendment thereof or
     supplement thereto with the SEC) or the omission or alleged omission to
     state therein any material fact necessary to make the statements made
     therein, in the light of the circumstances under which the statements
     therein were made, not misleading, (iii) any violation or alleged violation
     by the Company of the 1933 Act, the 1934 Act, any other law, including,
     without limitation, any state securities law, or any rule or regulation
     thereunder relating to the offer or sale of the Registrable Securities
     pursuant to a Registration Statement or (iv) any material violation of this
     Agreement (the matters in the foregoing clauses (i) through (iv) being,
     collectively, "VIOLATIONS"). Subject to Section 6(c), the Company shall
     reimburse the Indemnified Persons, promptly as such expenses are incurred
     and are due and payable, for any legal fees or other reasonable expenses
     incurred by them in connection with investigating or defending any such
     Claim. Notwithstanding anything to the contrary contained herein, the
     indemnification agreement contained in this Section 6(a): (i) shall not
     apply to a Claim by an Indemnified Person arising out of or based upon a
     Violation which occurs in reliance upon and in conformity with information
     furnished in writing to the Company by such Indemnified Person for such
     Indemnified Person expressly for use in connection with the preparation of
     the Registration Statement or any such amendment thereof or supplement
     thereto, if such prospectus was timely made available by the Company
     pursuant to Section 3; (ii) with respect to any preliminary prospectus,
     shall not inure to the benefit of any such Person from whom the Person
     asserting any such Claim purchased the Registrable Securities that are the
     subject thereof (or to the benefit of any Person controlling such Person)
     if the untrue statement or omission of material fact contained in the
     preliminary prospectus was corrected in the prospectus, as then amended or
     supplemented, if such prospectus was timely made available by the Company
     pursuant to Section 3, and the Indemnified Person was promptly advised in
     writing not to use the incorrect prospectus prior to the use giving rise to
     a violation and such Indemnified Person, notwithstanding such advice, used
     it or failed to deliver the correct prospectus as required by the 1933 Act
     and such correct prospectus was timely made available pursuant to Section
     3; (iii) shall not be available to the extent such Claim is based on a
     failure of the Investor to deliver or to cause to be delivered the
     prospectus made available by the Company, including a corrected prospectus,
     if such prospectus or corrected prospectus was timely made available by the
     Company pursuant to Section 3; and (iv) shall not apply to amounts paid in
     settlement of any Claim if such settlement is effected without the prior
     written consent of the Company, which consent shall not be unreasonably
     withheld or delayed.

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          b. In connection with any Registration Statement, the Investor agrees
     to indemnify, hold harmless and defend, to the same extent and in the same
     manner as is set forth in Section 6(a), the Company, each of its directors,
     each of its officers who signs the Registration Statement and each Person,
     if any, who controls the Company within the meaning of the 1933 Act or the
     1934 Act (each, an "INDEMNIFIED PARTY"), against any Claim or Indemnified
     Damages to which any of them may become subject, under the 1933 Act, the
     1934 Act or otherwise, insofar as such Claim or Indemnified Damages arise
     out of or are based upon any Violation, in each case to the extent, and
     only to the extent, that such Violation occurs in reliance upon and in
     conformity with written information furnished to the Company by such
     Investor expressly for use in connection with such Registration Statement;
     and, subject to Section 6(c), the Investor will reimburse any legal or
     other expenses reasonably incurred by an Indemnified Party in connection
     with investigating or defending any such Claim; provided, however, that the
     indemnity agreement contained in this Section 6(b) and the agreement with
     respect to contribution contained in Section 7 shall not apply to amounts
     paid in settlement of any Claim if such settlement is effected without the
     prior written consent of the Investor, which consent shall not be
     unreasonably withheld or delayed; provided, further, however, that the
     Investor shall be liable under this Section 6(b) for only that amount of a
     Claim or Indemnified Damages as does not exceed the net proceeds to such
     Investor as a result of the sale of Registrable Securities pursuant to such
     Registration Statement. Notwithstanding anything to the contrary contained
     herein, the indemnification agreement contained in this Section 6(b) with
     respect to any preliminary prospectus shall not inure to the benefit of any
     Indemnified Party if the untrue statement or omission of material fact
     contained in the preliminary prospectus was corrected on a timely basis in
     the prospectus, as then amended or supplemented.

          c. Promptly after receipt by an Indemnified Person or Indemnified
     Party under this Section 6 of notice of the commencement of any action or
     proceeding (including any governmental action or proceeding) involving a
     Claim, such Indemnified Person or Indemnified Party shall, if a Claim in
     respect thereof is to be made against any indemnifying party under this
     Section 6, deliver to the indemnifying party a written notice of the
     commencement thereof, and the indemnifying party shall have the right to
     participate in, and, to the extent the indemnifying party so desires,
     jointly with any other indemnifying party similarly noticed, to assume
     control of the defense thereof with counsel mutually satisfactory to the
     indemnifying party and the Indemnified Person or the Indemnified Party, as
     the case may be; provided, however, that an Indemnified Person or
     Indemnified Party shall have the right to retain its own counsel with the
     fees and expenses of not more than one counsel for such Indemnified Person
     or Indemnified Party to be paid by the indemnifying party, if, in the
     reasonable opinion of counsel retained by the indemnifying party, the
     representation by such counsel of the Indemnified Person or Indemnified
     Party and the indemnifying party would be inappropriate due to actual or
     potential differing interests between such Indemnified Person or
     Indemnified Party and any other party represented by such counsel in such
     proceeding. The Indemnified Party or Indemnified Person shall cooperate
     fully with the indemnifying party in connection with any negotiation or
     defense of any such action or Claim by the indemnifying party and shall
     furnish to the indemnifying party all information reasonably available to
     the Indemnified Party or Indemnified Person which relates to such action or
     Claim. The indemnifying party shall keep the Indemnified Party or
     Indemnified Person reasonably apprised at all times as to the status of the
     defense or any settlement negotiations with respect thereto. No
     indemnifying party shall be liable for any settlement of any action, claim
     or proceeding effected without its prior written consent, provided,
     however, that the indemnifying party shall not unreasonably withhold, delay
     or condition its consent. No indemnifying party shall, without the prior
     written consent of the Indemnified Party or Indemnified Person, consent to
     entry of any judgment or enter into any settlement or other compromise
     which does not include as an unconditional term thereof the giving by the
     claimant or plaintiff to such Indemnified Party or Indemnified Person of a
     release from all liability in respect to such Claim or litigation.
     Following indemnification as provided for hereunder, the indemnifying party
     shall be subrogated to all rights of the Indemnified Party or Indemnified
     Person with respect to all third parties, firms or corporations relating to
     the matter for which indemnification has been made. The failure to deliver
     written notice to the indemnifying party within a reasonable time of the
     commencement of any such action shall not relieve such indemnifying party
     of any liability to the Indemnified Person or Indemnified Party under this
     Section 6, except to the extent that the indemnifying party is prejudiced
     in its ability to defend such action.

                                       9
<PAGE>

          d. The indemnification required by this Section 6 shall be made by
     periodic payments of the amount thereof during the course of the
     investigation or defense, as and when bills are received or Indemnified
     Damages are incurred.

          e. The indemnity agreements contained herein shall be in addition to
     (i) any cause of action or similar right of the Indemnified Party or
     Indemnified Person against the indemnifying party or others, and (ii) any
     liabilities the indemnifying party may be subject to pursuant to the law.

     7.   CONTRIBUTION.

     To the extent any indemnification by an indemnifying party is prohibited or
limited by law, the indemnifying party agrees to make the maximum contribution
with respect to any amounts for which it would otherwise be liable under Section
6 to the fullest extent permitted by law; provided, however, that: (i) no Person
involved in the sale of Registrable Securities and who is guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the 1933 Act) in
connection with such sale, shall be entitled to contribution from any Person
involved in such sale of Registrable Securities who was not guilty of fraudulent
misrepresentation; and (ii) contribution by any seller of Registrable Securities
shall be limited in amount to the net amount of proceeds received by such seller
from the sale of such Registrable Securities pursuant to such Registration
Statement.

                                       10
<PAGE>

     8.   REPORTS UNDER THE 1934 ACT.

     With a view to making available to the Investor the benefits of Rule 144
promulgated under the 1933 Act or any other similar rule or regulation of the
SEC that may at any time permit the Investor to sell securities of the Company
to the public without registration ("RULE 144"), the Company agrees to:

          a. make and keep public information available, as those terms are
     understood and defined in Rule 144;

          b. file with the SEC in a timely manner all reports and other
     documents required of the Company under the 1933 Act and the 1934 Act so
     long as the Company remains subject to such requirements and the filing of
     such reports and other documents is required for the applicable provisions
     of Rule 144; and

          c. furnish to the Investor so long as the Investor owns Registrable
     Securities, promptly upon request, (i) a written statement by the Company,
     if true, that it has complied with the reporting requirements of Rule 144,
     the 1933 Act and the 1934 Act, (ii) a copy of the most recent annual report
     of the Company and such other reports and documents so filed by the
     Company, and (iii) such other information as may be reasonably requested to
     permit the Investor to sell such securities pursuant to Rule 144 without
     registration.

     9.   ASSIGNMENT OF REGISTRATION RIGHTS.

     The rights under this Agreement shall be automatically assignable by the
Investor to any transferee of all or any portion of such Investor's Registrable
Securities if: (i) the Investor agrees in writing with the transferee or
assignee to assign such rights, and a copy of such agreement is furnished to the
Company within a reasonable time after such assignment; (ii) the Company is,
within a reasonable time after such transfer or assignment, furnished with
written notice of (a) the name and address of such transferee or assignee, and
(b) the securities with respect to which such registration rights are being
transferred or assigned; (iii) immediately following such transfer or assignment
the further disposition of such securities by the transferee or assignee is
restricted under the 1933 Act and applicable state securities laws; and (iv) at
or before the time the Company receives the written notice contemplated by
clause (ii) of this sentence the transferee or assignee agrees in writing with
the Company to be bound by all of the provisions contained herein.

     10.  RIGHT OF FIRST REFUSAL.

     For the eighteen (18) month period following the Effective Date, the
Investor will have a right of first refusal to participate, to the extent
determined by the Investor, in any Financing Transaction (as defined hereafter)
to be commenced by the Company during that period. "Financing Transaction" means
the offer by the Company of any debt or equity securities for any purpose other
than compensation to employees, consultants and directors and does not include
(a) a firm commitment, fully underwritten public offering by the Company with
minimum proceeds to the Company of at least $25,000,000 or (b) a rights offering
made by the Company pro rata to its existing stockholders, including the
Investor on an "as converted" basis.

                                       11
<PAGE>

     11.  MISCELLANEOUS.

          a. Any notices, consents, waivers or other communications required or
     permitted to be given under the terms of this Agreement must be in writing
     and will be deemed to have been delivered: (i) upon receipt, when delivered
     personally; (ii) upon receipt, when sent by facsimile (provided
     confirmation of transmission is mechanically or electronically generated
     and kept on file by the sending party); or (iii) three (3) Business Days
     after deposit with a internationally recognized overnight delivery service,
     in each case properly addressed to the party to receive the same. The
     addresses and facsimile numbers for such communications shall be those
     detailed in the Note.

          b. Provisions of this Agreement may be amended and the observance
     thereof may be waived (either generally or in a particular instance and
     either retroactively or prospectively), only with the written consent of
     the Company and the Investor.

          c. Failure of any party to exercise any right or remedy under this
     Agreement or otherwise, or delay by a party in exercising such right or
     remedy, shall not operate as a waiver thereof.

          d. All questions concerning the construction, validity, enforcement
     and interpretation of this Agreement shall be governed by the internal laws
     of the State of New York, without giving effect to any choice of law or
     conflict of law provision or rule (whether of the State of New York or any
     other jurisdictions) that would cause the application of the laws of any
     jurisdictions other than the State of New York. Each party hereby
     irrevocably submits to the exclusive jurisdiction of the state and federal
     courts sitting The City of New York, Borough of Manhattan, for the
     adjudication of any dispute hereunder or in connection herewith or with any
     transaction contemplated hereby or discussed herein, and hereby irrevocably
     waives, and agrees not to assert in any suit, action or proceeding, any
     claim that it is not personally subject to the jurisdiction of any such
     court, that such suit, action or proceeding is brought in an inconvenient
     forum or that the venue of such suit, action or proceeding is improper.
     Each party hereby irrevocably waives personal service of process and
     consents to process being served in any such suit, action or proceeding by
     mailing a copy thereof to such party at the address for such notices to it
     under this Agreement and agrees that such service shall constitute good and
     sufficient service of process and notice thereof. Nothing contained herein
     shall be deemed to limit in any way any right to serve process in any
     manner permitted by law. If any provision of this Agreement shall be
     invalid or unenforceable in any jurisdiction, such invalidity or
     unenforceability shall not affect the validity or enforceability of the
     remainder of this Agreement in that jurisdiction or the validity or
     enforceability of any provision of this Agreement in any other
     jurisdiction. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE,
     AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE
     HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY
     TRANSACTION CONTEMPLATED HEREBY.

                                       12
<PAGE>

          e. This Agreement, the Note and the Warrant constitute the entire
     agreement among the parties hereto with respect to the subject matter
     hereof and thereof. This Agreement, the Note and the Warrant supersede all
     prior agreements and understandings among the parties hereto with respect
     to the subject matter hereof.

          f. Subject to the requirements of Section 9, this Agreement shall
     inure to the benefit of and be binding upon the permitted successors and
     assigns of each of the parties hereto.

          g. The headings in this Agreement are for convenience of reference
     only and shall not limit or otherwise affect the meaning hereof.

          h. This Agreement may be executed in identical counterparts, each of
     which shall be deemed an original but all of which shall constitute one and
     the same agreement. This Agreement, once executed by a party, may be
     delivered to the other party hereto by facsimile transmission of a copy of
     this Agreement bearing the signature of the party so delivering this
     Agreement.

          i. Each party shall do and perform, or cause to be done and performed,
     all such further acts and things, and shall execute and deliver all such
     other agreements, certificates, instruments and documents, as any other
     party may reasonably request in order to carry out the intent and
     accomplish the purposes of this Agreement and the consummation of the
     transactions contemplated hereby.

          j. The language used in this Agreement will be deemed to be the
     language chosen by the parties to express their mutual intent and no rules
     of strict construction will be applied against any party.

          k. This Agreement is intended for the benefit of the parties hereto
     and their respective permitted successors and assigns, and is not for the
     benefit of, nor may any provision hereof be enforced by, any other Person.

                                       13
<PAGE>

     IN WITNESS WHEREOF, the Investor and the Company have caused their
respective signature page to this Registration Rights Agreement to be duly
executed as of the date first written above.

INVESTOR:                                        COMPANY:

HOWARD P.L. YEUNG                                RADA ELECTRONIC INDUSTRIES LTD.

By:      ____________________                    By:   _________________________
                                                       Name:
                                                       Title:Exhibit 10.1

AMENDMENT

TO

EMPLOYMENT AGREEMENT

(Joseph M. Redling)

AMENDMENT, dated as of April 7, 2008, between NutriSystem, a Delaware corporation (the "Company"), and Joseph M. Redling (the "Executive"). 

RECITALS

WHEREAS, the Company and the Executive previously entered into an employment agreement, dated August 6, 2007 (the "Employment Agreement"), that sets forth the terms and conditions of Executive's employment with the Company;

WHEREAS, the Company desires to promote the Executive from his current position with the Company as its Chief Operating Officer so that he will become the Company's Chief Executive Officer and to make certain changes to the Employment Agreement to reflect the Executive's promotion;

WHEREAS, the Executive has agreed to the terms of his promotion with the Company; 

WHEREAS, the Company and the Executive also desire to make certain changes to the Employment Agreement so that the Employment Agreement complies with the requirements of section 409A of the Internal Revenue Code of 1986, as amended; and

WHEREAS, Section 14 of the Employment Agreement provides that the Employment Agreement may be amended pursuant to a written amendment between the Executive and the Company.

NOW, THEREFORE, the Company and the Executive, each intending to be legally bound hereby, agree that the Employment Agreement shall be amended as follows:

	Chief Executive Officer and Director.  The second and third sentences of Section 1 of the Employment Agreement are hereby amended in their entirety to read as follows:

"Effective May 1, 2008, the Executive shall be the President and Chief Executive Officer of the Company and shall perform duties consistent with this position as are assigned by the Board of Directors of the Company (the "Board").  The Executive shall be an executive officer of the Company and a member of the Board and, as a material inducement for the Executive to enter into this Agreement, the Executive shall report solely and directly to the Board and, if during the Employment Term (as defined in Section 3 of this Agreement) Michael J. Hagan ceases to be the Chairman of the Board, then the Company agrees to take such actions as are necessary and appropriate to consider the Executive as a candidate to be the Chairman of the Board."

	Initial Term.  The first sentence of Section 3 of the Employment Agreement is hereby amended its entirety to read as follows:

"The initial term of employment under this Agreement (the "Initial Term") begins on the Effective Date and ends on September 30, 2011."

	Initial Salary.  The second and third sentences under the header "Salary" in Section 4 of the Employment Agreement are hereby amended in their entirety to read as follows:

"The Salary is at the rate of $660,000 (the "Initial Salary").  The Initial Salary shall be in effect from May 1, 2008 through December 31, 2008, and thereafter the Board or the Compensation Committee shall review the Salary at least once a year; provided, however, that on each January 1 during the Employment Term, the Salary shall be increased by a minimum positive amount equal to the Salary in effect on January 1 of the prior year multiplied by 3.5%.  The Salary shall never be less than the Initial Salary."

	Annual Bonus.  The second sentence under the header "Annual Bonus" in Section 4 of the Employment Agreement is hereby amended in its entirety to read as follows:

"The Executive shall be eligible to receive an Annual Bonus up to 150% of the Executive's Salary, and during the Initial Term shall receive an Annual Bonus equal to no less than 100% of the Executive's Salary; provided that the Annual Bonus for 2008 shall be based on Executive's Salary being equivalent to $660,000; and provided, further, that the Annual Bonus is conditioned on the employment of the Executive with the Company through the date that the Annual Bonus is paid."

	Temporary Housing.  The first paragraph of Section 6 of the Employment Agreement is hereby amended so that "Chief Executive Officer" is replaced by "Chairman."

	Good Reason.  The first sentence of the second paragraph of Section 11 of the Employment Agreement is hereby amended in its entirety to read as follows:

"The Executive also may terminate this Agreement for Good Reason, provided that the Executive gives the Company written notice of the Good Reason condition within 90 days from the initial existence of the Good Reason condition, and if the Company has not cured the Good Reason condition within 30 days following such notice from the Executive, then the Executive's employment will be terminated effective as of the 30th day following the expiration of the Company's cure period, unless the Company designates an earlier termination date, and upon such a termination, the Executive will be treated in accordance with Section 12, as if the Executive's employment had been terminated by the Company without cause."

	Termination without Cause or Non-Renewal by the Company.  Paragraph (1) of Section 12 of the Employment Agreement is hereby amended in its entirety to read as follows:

"(1)within 30 days following the Executive's termination date, but no sooner than the end of the revocation period for the release, the Company will pay to the Executive a lump sum severance payment (the "Severance Payment") in the amount equal to the sum of:

(i) the greater of 12 months or the remainder (up to only a maximum of 24 months) of the Employment Term, of the sum of (x) the Salary then in effect, plus (y) the Annual Bonus (calculated as equal to 100% of Salary) then in effect; 

(ii) a pro rated amount of the Annual Bonus (calculated at 100% of Salary) from the first day of the calendar year in which the termination occurred through the date of termination, and 

(iii) the value of the premium cost to the Company to continue the Executive on the Company's group life and AD&D policy for the 12 month period following the Executive's termination date; and"

	Section 409A.  Section 18 of the Employment Agreement is hereby amended in its entirety to read as follows:

"This Agreement shall be interpreted to avoid any penalty sanctions under section 409A of the Internal Revenue Code of 1986, as amended (the "Code").  If any payment or benefit cannot be provided or made at the time specified herein without incurring sanctions under section 409A, then such benefit or payment shall be provided in full at the earliest time thereafter when such sanctions will not be imposed.  All payments to be made upon a termination of employment under this Agreement may only be made upon a 'separation from service' under section 409A of the Code.  For purposes of section 409A of the Code, each payment made under this Agreement shall be treated as a separate payment and the right to a series of installment payments shall be treated as the right to a series of separate payments.  In no event may the Executive, directly or indirectly, designate the calendar year of payment. 

To the maximum extent permitted under section 409A of the Code and its corresponding regulations, the cash severance benefits payable under this Agreement are intended to meet the requirements of the short-term deferral exemption under section 409A of the Code and the 'separation pay exception' under Treas. Reg. section 1.409A-1(b)(9)(iii).  However, if such severance benefits do not qualify for such exemptions at the time of the Executive's termination of employment and therefore are deemed as deferred compensation subject to the requirements of section 409A of the Code, then if Executive is a "specified employee" of a publicly traded corporation under section 409A of the Code on the date of Executive's termination of employment, payment of severance under this Agreement shall be delayed for a period of 6 months from the date of the Executive's termination of employment if required by section 409A of the Code.  The accumulated postponed amount shall be paid in a lump sum payment within 10 days after the end of the 6 month period.  If Executive dies during the postponement period prior to payment of the postponed amount, the amounts withheld on account of section 409A of the Code shall be paid to the personal representative of Executive's estate within 60 days after the date of Executive's death.  The determination of whether Executive is a "specified employee" shall be made by the Compensation Committee (or its delegate) in accordance with section 409A of the Code and the regulations issued thereunder."

	Restricted Stock Grant on Date of Amendment.  On the date of this Amendment, the Executive will receive a restricted stock grant of 295,000 shares in accordance with the terms and conditions set forth in the Stock Award Agreement attached as Appendix A.  This restricted stock grant shall vest in four 25% tranches from the date of grant until September 4, 2011, as set forth in Appendix A; provided that the Executive is employed by the Company on each such vesting date.  

	Restricted Stock Grant Upon Stockholder Approval of 2008 Plan.  The Compensation Committee has also approved a restricted stock grant to the Executive in an amount equal to the greater of (x) 55,000 shares, or (y) the number of shares equal to (i) $821,700, divided by (ii) the closing price per share of the Company's common stock on the date of grant.  This stock grant shall be in accordance with the terms and conditions set forth in the Stock Award Agreement attached as Appendix B.   This stock grant shall vest in four 25% tranches from the date of grant until September 4, 2011, as set forth in Appendix B; provided that the Executive is employed by the Company on each such vesting date.  This stock grant shall be made on the date of stockholder approval of the Company's 2008 Long Term Incentive Plan (the "2008 Plan"), shall be made under the 2008 Plan, and shall be subject to stockholder approval of the 2008 Plan.  The Company will submit the 2008 Plan to stockholders for approval at the Company's 2008 Annual Meeting of Stockholders.

	Amendment and Restatement of Performance Stock Grant.  On the date of this Amendment, the Performance Stock Grant (as defined in the Employment Agreement), originally delivered by the Company to the Executive on September 4, 2007, shall be amended and restated to provide for full vesting on September 4, 2011, subject to earlier vesting based upon the achievement of certain performance goals for the Company's 2009 and 2010 fiscal years, provided that the Executive is employed by the Company on each such vesting date.  The Performance Stock Grant, as amended and restated, shall be in accordance with the terms and conditions set forth in the Amended and Restated Stock Award Agreement attached as Appendix C.

	Effect on Employment Agreement.  In all respects not modified by this Amendment, the Employment Agreement is hereby ratified and confirmed.

IN WITNESS WHEREOF, the Company and the Executive agree to the terms of the foregoing Amendment, effective as of the date first written above.

NUTRISYSTEM, INC.

 

By:/s/ Michael J. Hagan

Name:Michael J. Hagan

Title:Chairman

 

EXECUTIVE:

 

/s/ Joseph M. Redling

Name:Joseph M. Redling

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