Document:

Exhibit
10.4.6

 

ONEBEACON

DEFERRED COMPENSATION PLAN

 

 

ARTICLE I

 

Purpose

SECTION 1.01.   Purpose.
The purpose of this Plan is to provide Key Employees with the ability
to defer the receipt of Compensation. The Plan is also intended to establish a
method of attracting and retaining persons whose abilities, experience and
judgment can contribute to the long-term strategic objectives of the Company.

SECTION
1.02.   Unfunded Plan. The Company
intends that the Plan be an unfunded non-qualified deferred compensation plan
maintained primarily for the purpose of providing deferred benefits for a
select group of management or highly compensated service providers of the
Company and its subsidiaries.

ARTICLE
II

 

Definitions

The following terms when used in this Plan have the designated meanings
unless a different meaning is clearly required by the context.

SECTION 2.01.   “Account”
means the records maintained on the books of the Company to reflect deferrals
of Compensation by a Participant pursuant to Section 3.03.

SECTION 2.02.   “Administrator”
means the person or committee designated by the Committee as responsible for
the day-to-day administration of the Plan.

SECTION 2.03.   “Beneficiary”
means the person or persons designated pursuant to Article 5 to
receive a benefit pursuant to Section 4.04(a) in the event of a Participant’s
death before his benefit under this Plan has been paid.

SECTION 2.04.   “Board”
means the Board of Directors of the Company.

SECTION 2.05.   “Change in
Control” means a “Change in Control” as defined in the White
Mountains Long-Term Incentive Plan.

SECTION 2.06.   “Committee”
means the OneBeacon Benefits Committee; provided that any
determination involving a Participant who is a member of the Committee shall be made by the
Board.

SECTION 2.07.   “Company”
means OneBeacon Insurance Company and any successor thereto.

SECTION 2.08.   “Compensation”
means, for any Plan Year, (i) the base salary to be paid to an
eligible employee for such Plan Year, the annual bonus, if any, to be paid to
an eligible employee in such Plan Year, the long-term incentive compensation,
if any, to be

 

paid
to an eligible employee in such Plan Year or any other compensation to be paid
to an eligible employee during that Plan Year that is designated as “Compensation”
hereunder by the Administrator or (ii) any fee or other compensation to be paid
to an eligible consultant by the Company or its subsidiaries for such Plan Year
that it is designated as “Compensation” hereunder by the Administrator.

SECTION 2.09.   “Fiscal Year”
means the calendar year.

SECTION 2.10.   “Fund”
means any investment fund selected by the Administrator to be offered
under the Plan.

SECTION 2.11.   “Key Employee”
means any executive employee, other overtime-exempt employee or consultant of
the Company or its participating subsidiaries who the Administrator, in its
sole discretion, decides is important to the ongoing business objectives of the
Company.

SECTION 2.12.   “Market Price”
on any day means (i) if Shares are listed on the New York Stock Exchange, the
average of the high and low sales price, or, in case no such sale takes place
on such day, the average of the last quoted closing bid and asked prices,
regular way, in either case as reported in the principal consolidated transaction
reporting system with respect to securities listed or admitted to trading on
the New York Stock Exchange or, if Shares are not listed or admitted to trading
on the New York Stock Exchange, as reported in the principal consolidated
transaction reporting system with respect to securities listed on the principal
national securities exchange on which Shares are listed or admitted to trading
or, if Shares are not listed or admitted to trading on any national securities
exchange, the last quoted sale price or, if not so quoted, the average of the
high bid and the low asked prices in the overthe-counter market, as reported by
NASDAQ or such other system then in use, or, if on any such date Shares are not
quoted by any such organization, the average of the closing bid and asked prices
as furnished by one or more professional market makers making a market in
Shares and (ii) if Shares are not publicly held or so listed or publicly
traded, the fully diluted book value per Share as determined by the
Administrator in accordance with United States generally accepted accounting
principles.

SECTION 2.13.   “Participant”
means a Key Employee who has deferred Compensation pursuant to this Plan and
who has an Account to which amounts stand credited.

SECTION 2.14.   “Payment
Period” means the month and year designated pursuant to Section 3.04 for
payment of some portion or all of a Participant’s Account.

SECTION 2.15.   “Plan”
means this “OneBeacon Deferred Compensation Plan” as set forth herein
and as amended from time to time.

SECTION 2.16.   “Plan Year” means the calendar year.

SECTION 2.17.   “Share(s)”
means a common share(s) of White Mountains Insurance Group, Ltd., par
value $1.00.

SECTION 2.18.   “Termination
of Service” means, as applicable, cessation for any reason of a Key
Employee’s (i) service as an employee of the Company and its

 

 

2

subsidiaries
or (ii) status as a consultant to the Company and its subsidiaries as
determined by the Committee in its sole discretion.

SECTION 2.19.   “Valuation
Date” means the date that the Administrator makes a valuation of an
Account. Unless otherwise provided by the Administrator, each deemed investment
alternative within each Account shall be valued as of each day on which a value
for such deemed investment alternative reasonably is available to the
Administrator.

ARTICLE III

Eligibility and Deferrals

SECTION 3.01.   Eligibility.
Each Key Employee designated by the Administrator as eligible to
participate in the Plan shall be eligible to be a Participant hereunder. The
Administrator has the sole and complete discretion to determine which Key
Employees are eligible to participate on a Plan Year by Plan Year basis. No Key
Employee shall have a right to be designated as a Participant and the designation
of a Key Employee as a Participant in one Plan Year shall not obligate the
Administrator to continue such Key Employee as a Participant in subsequent Plan
Years.

SECTION 3.02.   Accounts.
The Administrator shall establish an Account for each Key Employee who elects
to defer Compensation pursuant to Section 3.03. Amounts deferred pursuant to
Section 3.03, and the value thereof determined pursuant to Section 3.05, shall
be credited to such Account.

SECTION 3.03.   Deferral of
Compensation. A Key Employee may elect to reduce the Compensation otherwise
payable to him during a Plan Year and to have such amount credited to his
Account. A deferral direction pursuant to this Section 3.03 shall be made in writing
at such time and in such manner as the Administrator shall prescribe but must
in any event be made before the first day of the Plan Year in which such
Compensation would otherwise be paid. A deferral election shall apply only with
respect to the Plan Year for which it is made and shall not continue in effect
for any subsequent Plan Year. A deferral election, once executed and filed with
the Administrator, cannot be revoked after the date specified by the Administrator.
Notwithstanding the foregoing, (i) any Key Employee who is first hired by the Company
or a participating subsidiary during a Plan Year may elect within 30 days after
becoming a Key Employee to defer any unpaid portion of his Compensation in
respect of such Plan Year and (ii) Key Employees may elect to defer any unpaid
Compensation for the Plan Year in which this Plan is first adopted by the
Board.

SECTION 3.04.   Payment Period.
(a) Designation. Each deferral direction given pursuant to Section 3.03
shall include designation of the Payment Period for the value of the amount
deferred, subject to the limitation set forth in Section 3.04(c).

(b)   Adjustment. The
Committee may permit a Participant to irrevocably elect, no later than one year
before the first day of the Payment Period initially designated pursuant to
Section 3.04(a), to adjust such Payment Period, subject to the limitation set
forth in Section 3.04(c).

 

3

(c)   Limitation. A
Participant may select a Payment Period (or adjusted Payment Period) that
begins no sooner than the first anniversary of the date of such election.

(d)   Methods of Payments.
A Participant may elect, at the time a Payment Period is selected, to receive
the amount which will become payable as of such Payment Period in no more than
10 annual installments. Except as may be elected pursuant to this Section
3.04(d), all amounts becoming payable under this Plan shall be paid in a single
payment.

(e)   Irrevocability.
Except as provided in Section 3.04(b) or as set forth in Article IV, a
designation of a Payment Period and an election of installment payments shall
be irrevocable; provided, however, that payment may be made at a
different time as provided in Section 4.04.

SECTION 3.05.   Value of
Participants’ Accounts. Compensation deferrals shall be allocated to each
Participant’s Account on the first business day following the date such
Compensation is withheld from the Participant’s Compensation and shall be
deemed invested pursuant to this Section 3.05, as soon as practicable
thereafter.

(a)   Crediting of Income,
Gains and Losses. As of each Valuation Date, income, gain and loss
equivalents (determined as if the Account is invested in the manner set forth
below) attributable to the period following the next preceding Valuation Date
shall be credited to and/or deducted from the Account.

(b)   Investment of Account
Balance. The Participant may select, from various Funds made
available hereunder, the Funds in which all or part of his Account shall be
deemed to be invested.

(i)   The Participant shall make
an investment designation on a form provided by the Administrator, which shall
remain effective until another valid designation has been made by the
Participant as herein provided. The Participant may amend his investment
designation by giving written direction to the Administrator in accordance with
procedures established by the Administrator. A timely change to a Participant’s
investment designation shall become effective on the date determined under the applicable
procedures established by the Administrator.

(ii)   Any changes to the Funds
to be made available to the Participant, and any limitation on the maximum or
minimum percentages of the Participant’s Account that may be invested in any
particular medium, shall be communicated from time to time to the Participant
by the Administrator.

(c)   Default Provision.
Except as provided below, the Participant’s Account shall be deemed to be
invested in accordance with his investment designations, provided such
designations conform to the provisions of this Section. Notwithstanding the
above, the Committee, in its sole discretion, may disregard the Participant’s
election and determine that all Compensation deferrals shall be deemed to be
invested in a Fund determined by the Committee. In the event that any Fund
under which any portion of the Participant’s Account is deemed to be invested
ceases to exist, such portion of the Account thereafter shall be deemed held in
the Fund selected by the Participant or, in the absence of any instructions
from the Participant, by the Committee, subject to subsequent deemed investment
elections.

 

4

(d)   Statements. The
Company shall provide an annual statement to the Participant showing such
information as is appropriate, including the aggregate amount credited to the
Account, as of a reasonably current date.

SECTION 3.06.   Limit on
Account Balance. Notwithstanding anything to the contrary contained herein,
the maximum aggregate amount that may be credited to a Participant’s Account
(including, without limitation, Compensation deferrals and investment gains
thereon) as of any Valuation Date shall be $50,000,000 or such other amount as
may be designated by the Committee. Any amount credited to a Participant’s
Account in excess of the applicable limit hereunder shall be promptly
distributed to the Participant in (as determined by the Committee) cash or
Shares having a Market Price as of the trading day immediately preceding the
date of such distribution equal to the value of such distribution. The
Administrator may suspend a Participant from deferring additional Compensation
under the Plan if the Administrator determines that the amount credited to a
Participant’s Account will exceed the applicable limit hereunder.

ARTICLE IV

Payment of Benefits

SECTION 4.01.   Nonforfeitability.
Subject to Section 4.06, Participant’s right to a deferred amount of
Compensation and his right to the income and gains credited thereon, shall be
fully vested and nonforfeitable at all times.

SECTION 4.02.   Income.
Any payment made pursuant to Sections 4.03, 4.04, 4.05, 4.06 or 4.07
shall include the income, gains and losses calculated in the manner described
in Section 3.05 through the date of payment (or, if not administratively
practicable, as of the most recent Valuation Date next preceding the date of
payment).

SECTION 4.03.   Time of
Payment. Except as provided in Section 4.04, the amount credited to the
Account of each Participant shall become payable to the Participant during the
Payment Period designated pursuant to Section 3.04. If the Participant has
elected installment payments, such payments shall begin within thirty days
following the expiration of the Payment Period. In any other case, payment
shall be made as a single sum within thirty days following the expiration of the
Payment Period.

SECTION 4.04.   Termination of
Service. In the event of a Participant’s Termination of Service while
amounts stand credited to his Account, such amounts shall be disposed of as
provided in this Section 4.04.

(a)   Death of Participant.
If the Participant’s Termination of Service is on account of his death, or if
he dies following Termination of Service but while receiving installment
payments, his Account shall be paid to his Beneficiary as a single payment as
soon as practicable, but not later than 30 days following the immediately
succeeding Valuation Date following the Participant’s death.

(b)   Other Termination.
If the Participant’s Termination of Service is for a reason other than death,
his Account shall be paid to him as a single payment; provided, however, that
if the Participant had elected installment payments pursuant to Section 3.04(d)
for

 

5

any
deferred Compensation, the amount of such deferred Compensation and income,
gains and losses credited thereon shall be paid in the number of installments
thus elected. All payments pursuant to this Section 4.04(b) shall be made or
begin no more than three months after the end of the Fiscal Year in which
Termination of Service occurs.

SECTION 4.05.   Withdrawal for
Emergency Need. (a) Authorization. The Committee may permit a
Participant who demonstrates an emergency need to withdraw from the Plan an
amount no greater than the amount determined by the Committee to be reasonably
necessary to satisfy such emergency need.

(b)   Emergency Need. For
purposes of this Section 4.05, an emergency need is a severe financial hardship
of a Participant resulting from (i) a sudden and unexpected illness of or
accident to the Participant or a dependent within the meaning of Section 152(a)
of the Internal Revenue Code of 1986, as amended (the “Code”), (ii) a casualty
loss to the Participant’s property or (iii) other similar extraordinary and
unforeseeable circumstances arising as a result of events beyond the
Participant’s control. A need is not an emergency need to the extent that it is
relieved by reimbursement or compensation by insurance or otherwise, or by
liquidation of the Participant’s assets insofar as such liquidation would not
cause severe financial hardship, or by cessation of deferrals under the Plan.

SECTION 4.06.   Other
Withdrawal. Subject to this Section 4.06, a Participant may elect to
withdraw all or any portion of his Account at any time by filing an appropriate
request with the Administrator; provided  that, prior to making
any distribution provided under this Section 4.06, the Participant shall
irrevocably forfeit an amount equal to 10% of the aggregate value of the
Participant’s Account and the Participant shall not be permitted to make any
additional Compensation deferrals for the remainder of the year of such
withdrawal and the next calendar year. Amounts shall be distributed pursuant to
this Section 4.06 as soon as reasonably practicable after the Valuation Date
occurring after the submission of the 

Participant’s election hereunder.

SECTION 4.07.   Change in
Control. Unless otherwise elected by a Participant in accordance
with procedures established by the Administrator, a Participant’s Account shall
be distributed in full in a cash lump sum immediately prior to a Change in
Control.

SECTION 4.08.   Source of
Payment. The Compensation deferred pursuant to this Plan (and the income,
gains and losses credited thereon) shall be a general obligation of the
Company. The claim of a Participant or Beneficiary to a benefit shall at all
times be merely the claim of an unsecured creditor of the Company. No trust,
security, escrow, or similar account need be established for the purpose of
paying benefits hereunder. The Company shall not be required to purchase, hold
or dispose of any investments pursuant to this Plan; however, if in order to
cover its obligations hereunder the Company elects to purchase any investments
the same shall continue for all purposes to be a part of the general assets and
property of the Company, subject to the claims of its general creditors and no
person other than the Company shall by virtue of the provisions of this Plan
have any interest in such assets other than an interest as a general creditor.

SECTION 4.09.   Withholding.
All amounts credited to Participants’ Accounts pursuant to this
Plan and all payments under the Plan shall be subject to any applicable
withholding requirements imposed by any tax (including, without limitation,
FICA) or other law.

 

6

If
any of the taxes referred to above are due at the time of deferral, instead of
at the time of payout, the Participant will be required to pay (by payroll
deduction or check) to the Company the Participant’s share of any such taxes
then due and payable.

SECTION 4.10.   Right of
Offset. Any amount payable pursuant to this Plan shall be reduced at the
discretion of the Administrator to take account of any amount due, and not
paid, by the Participant to the Company at the time payment is to be made
hereunder.

SECTION 4.11.   Payment
Denomination. Except as set forth in this Section 4.11 or as
otherwise determined by the Committee in its sole and absolute discretion, all
distributions under the Plan (including all distributions made pursuant to
Sections 4.03, 4.04, 4.05 and 4.06) shall be made in Shares having
a Market Price as of the trading day immediately preceding the date of such
distribution equal to the value of such distribution; provided  that
the first $1,000,000 (or such other amount as may be designated by the
Committee) distributed to a Participant (or his beneficiary) in any Plan Year
and all distributions made pursuant to Section 4.07 shall be made in cash.

SECTION 4.12.   Distribution
Limitation. Notwithstanding anything to the contrary contained herein, the
Committee may defer to any date it selects any distribution to any Participant
that it determines in its sole and absolute discretion would not be deductible
by the Company or its affiliates solely by reason of the applicability of
Section 162(m) of the Code.

SECTION 4.13.   Defeasance.
Subject to Section 4.08, the Committee may instruct the Company to defease the
Company’s obligations under the Plan.

ARTICLE V

Beneficiaries

SECTION 5.01.   Beneficiary
Designation. (a) Designation. A Participant may from time to time
designate, in the manner specified by the Administrator, a Beneficiary to
receive payment pursuant to Section 4.04 in the event of his death.

(b)   Absence of Beneficiary.
In the event that there is no properly designated Beneficiary living at the
time of a Participant’s death, his benefit hereunder shall be paid to his estate.

SECTION 5.02.   Payment to
Incompetent. If any person entitled to benefits under this Plan shall be a
minor or shall be physically or mentally incompetent in the judgment of the
Administrator, such benefits may be paid in any one or more of the following
ways, as the Administrator in his sole discretion shall
determine:

(a)   to the legal
representatives of such minor or incompetent person;

(b)   directly to such minor or
incompetent person; or

(c)   to a parent or guardian of
such minor or incompetent person, to the person with whom such minor or
incompetent person resides, or to a custodian for such minor under the Uniform
Gifts to Minors Act (or similar statute) of any jurisdiction.

 

7

Payment
to any person in accordance with the foregoing provisions of this Section 5.02
shall to that extent discharge the Company, which shall not be required to see
to the proper application of any such payment.

SECTION 5.03.   Doubt as to
Right To Payment. If any doubt exists as to the right of any person to any
benefits under this Plan or the amount or time of payment of such benefits
(including, without limitation, any case of doubt as to identity, or any case
in which any notice has been received from any other person claiming any
interest in amounts payable hereunder, or any case in which a claim from other
persons may exist by reason of community property or similar laws), the
Administrator may, in its discretion, direct that payment of such benefits be
deferred until such right or amount or time is determined, or pay such benefits
into a court of competent jurisdiction in accordance with appropriate rules of
law, or direct that payment be made only upon receipt of a bond or similar
indemnification (in such amount and in such form as is satisfactory to the
Administrator).

SECTION 5.04.   Spendthrift
Clause. No benefit, distribution or payment under the Plan may be
anticipated, assigned (either at law or in equity), alienated or subject to
attachment, garnishment, levy, execution or other legal or equitable process
whether pursuant to a “qualified domestic relations order” as defined in
Section 414(p) of the Code or otherwise.

ARTICLE VI

Administration and Reservation of Rights

SECTION 6.01.   Powers of the
Committee. The Committee shall have the power and discretion to

(a)   determine all questions
arising in the interpretation and application of the Plan;

(b)   determine the person or
persons to whom benefits under the Plan shall be paid;

(c)   decide any dispute arising
hereunder;

(d)   correct defects, supply
omissions and reconcile inconsistencies to the extent necessary to
effectuate the Plan; and

(e)   have all such other powers
as may be necessary to discharge its duties hereunder.

SECTION 6.02.   Powers of the
Administrator. The Administrator shall have the power and discretion to

(a)   promulgate and enforce such
rules, regulations and procedures as shall be proper for the efficient
administration of the Plan;

(b)   determine all questions
arising in the administration of the Plan;

 

8

(c)   compute the amount of
benefits and other payments which shall be payable to any Participant in
accordance with the provisions of the Plan;

(d)   make recommendations to the
Board with respect to proposed amendments to the Plan;

(e)   advise the Board regarding
the known future need for funds to be available for distribution;

(f)   file all reports with
government agencies, Participants and other parties as may be required
by law, whether such reports are initially the obligation of the Company or the Plan; and

(g)   have all such other powers
as may be necessary to discharge its duties hereunder.

SECTION 6.03.   Claims
Procedure. If the Committee denies any Participant’s or Beneficiary’s
claim for benefits under the Plan:

(a)   the Committee shall notify
such Participant or Beneficiary of such denial by written notice which shall
set forth the specific reasons for such denial; and

(b)   the Participant or
Beneficiary shall be afforded a reasonable opportunity for a full and fair
review by the Committee of the decision to deny his claim for Plan benefits.

SECTION 6.04.   Action by the
Committee. The Committee may elect a Chairman and Secretary from among its
members and may adopt rules for the conduct of its business. A majority of the
members then serving shall constitute a quorum for the transacting of business.
All resolutions or other action taken by the Committee shall be by vote of a majority
of those present at such meeting and entitled to vote. Resolutions may be
adopted or other action taken without a meeting upon written consent signed by
at least a majority of the members. All documents, instruments, orders,
requests, directions, instructions and other papers shall be executed on behalf
of the Committee by either the Chairman or the Secretary of the Committee, if
any, or by any member or agent of the Committee duly authorized to act on the Committee
behalf.

SECTION 6.05.   Consent.
By electing to become a Participant, each Participant shall be deemed
conclusively to have accepted and consented to all terms of the Plan and all
actions or decisions made by the Administrator, the Committee or the Board with
regard to the Plan. Such terms and consent shall also apply to, and be binding
upon, the Beneficiaries, distributees and personal representatives and other
successors in interest of each Participant.

SECTION 6.06.   Agents and
Expenses. The Administrator or the Committee may employ agents and provide
for such clerical, legal, actuarial, accounting, medical, advisory or other
services as it deems necessary to perform its duties under this Plan. The cost
of such services and all other expenses incurred by the Administrator or the
Committee in connection with the administration of the Plan shall be paid by
the Company.

 

9

SECTION 6.07.   Allocation of
Duties. The duties, powers and responsibilities reserved to
the Committee may be allocated among its members so long as such allocation is
pursuant to written procedures adopted by the Committee, in which case no
Committee member shall have any liability, with respect to any duties, powers
or responsibilities not allocated to him, for the acts or omissions of any
other Committee member.

SECTION 6.08.   Delegation of
Duties. The Administrator and the Committee may delegate any
of their respective duties to employees of the Company or its subsidiaries.

SECTION 6.09.   Actions
Conclusive. Any action on matters within the discretion of the
Administrator or the Committee shall be final, binding and conclusive.

SECTION 6.10.   Records and
Reports. The Administrator and the Committee shall maintain
adequate records of their respective actions and proceedings in administering
this Plan and shall file all reports and take all other actions as are deemed
appropriate in order to comply with any Federal or state law. Without limiting
the foregoing, the Administrator shall provide to the Committee no less
frequently than annually a list of the investment alternatives made available
under the Plan, the aggregate amounts deemed invested under the Plan in each
such alternative and such other information requested by the Committee.

SECTION 6.11.   Liability and
Indemnification. The Administrator and the Committee shall perform all
duties required of them under this Plan in a prudent manner. The Administrator
and the Committee shall not be responsible in any way for any action or
omission of the Company, its subsidiaries or their employees in the performance
of their duties and obligations as set forth in this Plan. The Administrator
and the Committee also shall not be responsible for any act or omission of any
of their respective agents provided that such agents were prudently chosen by
the Administrator or the Committee and that the Administrator or the Committee
relied in good faith upon the action of such agents.

SECTION 6.12.   Right to Amend
or Terminate. The Committee may at any time amend the Plan in any respect,
retroactively or otherwise, or terminate the Plan in whole or in part for any
other reason. However, no such amendment or termination shall reduce the amount
standing credited to any Participant’s Account as of the date of such amendment
or termination. In the event of the termination of the Plan, the Committee, in
its sole discretion, may choose to pay out Participants’ Accounts prior to the
designated Payment Periods (a “Termination Distribution”). Each Participant
shall be compensated for the early distribution of his/her Account pursuant to
a Termination Distribution by a payment from the Company in an amount
determined by the Committee to be appropriate to make the Participant whole for
such Termination Distribution. Otherwise, following a termination of the Plan,
income, gains and losses shall continue to be credited to each Account in
accordance with the provisions of this Plan until the time such Accounts are
paid out.

SECTION 6.13.   Usage.
Whenever applicable, the masculine gender, when used in the Plan, includes the
feminine gender, and the singular includes the plural.

SECTION 6.14.   Separability.
If any provision of the Plan is held invalid or unenforceable, its invalidity
or unenforceability shall not affect any other provisions of the Plan, and the
Plan shall be construed and enforced as if such provision had not been included
therein.

 

10

SECTION 6.15.   Captions.
The captions in this document and in the table of contents are inserted only as
a matter of convenience and for reference and in no way define, limit, enlarge
or describe the scope or intent of the Plan and shall in no way affect the Plan
or the construction of any provision thereof.

SECTION 6.16.   Right of
Discharge Reserved. Nothing contained in this Plan shall be construed as a
guarantee or right of any Participant to be continued as a employee of the
Company or its subsidiaries (or of a right of a Key Employee or Participant to
any specific level of Compensation) or as a limitation of the right of the
Company or its subsidiaries to terminate any Key Employee or Participant.

SECTION 6.17.   Governing Law
and Construction. The Plan is intended to constitute an unfunded,
nonqualified deferred compensation arrangement. Except to the extent preempted
by Federal law, all rights under the Plan shall be governed by and construed in
accordance with the laws of the State of New York without regard to principles
of conflicts of law. No action shall be brought by or on behalf of any
Participant or Beneficiary for or with respect to benefits due under this Plan
unless the person bringing such action has timely exhausted the Plan’s claim
review procedure.

 

11Exhibit 10.1

 

RRSAT GLOBAL COMMUNICATIONS NETWORK LTD.

 

REGISTRATION RIGHTS AGREEMENT

 

THIS REGISTRATION
RIGHTS AGREEMENT (this “Agreement”) is entered into as of September 13, 2006
by and among RRSat Global Communications Network Ltd., an Israeli company (the “Company”),
and the shareholders listed on Schedule A (each a “Shareholder”
and collectively the “Shareholders”).

 

The Shareholders
are the owners of that number of ordinary shares of the Company, par value NIS 1.00
per share (the “Ordinary Shares”), set forth opposite each such Shareholder’s
name on Schedule A.

 

In
consideration of the mutual premises and covenants contained in this Agreement
and for other good and valuable consideration, the sufficiency of which is
hereby acknowledged, the parties hereto agree as follows:

 

1.                                      Definitions

 

For
purposes of this Agreement, the following terms have the meanings set forth
below:

 

(a)          “Act”
means the Securities Act of 1933, as amended.

 

(b)         “Charter”
means the Articles of Association of the Company, as amended.

 

(c)          “Form F-3”
means such form under the Act as in effect on the date hereof or any
registration form under the Act subsequently adopted by the SEC that permits
inclusion or incorporation of substantial information by reference to other
documents filed by the Company with the SEC.

 

(d)         “Holder”
means any person owning or having the right to acquire Registrable Securities
or any assignee thereof in accordance with Section 4 hereof.

 

(e)          “Initial Holder”
means any of Del-Ta Engineering Equipment Ltd., Kardan Communications Ltd. or
David Rivel, or any assignee thereof in accordance with Section 4 hereof.

 

(f)            “Initial
Public Offering” means the first firm commitment underwritten public
offering of securities of the Company pursuant to an effective registration
statement under the Act (other than a registration statement relating either to
the sale of securities to employees of the Company pursuant to a stock option,
stock purchase or similar plan or an SEC Rule 145 transaction), which
securities are deemed “covered security” as such term is defined in Section 18
of Act.

 

(g)         “Material
Adverse Information” means material adverse information about the Company’s
business or results of operations that is known by the Company’s senior
executive officers. For the avoidance of doubt, Material Adverse Information
shall not refer to information about, related to or based upon events, actions
or

 

1

 

occurrences
associated with the Company’s competitors, general market conditions, the
economy, the state of the capital markets, demand for the Company’s securities,
national or international security concerns, outbreak of hostilities or natural
disasters.

 

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

 

(i)             “register,”
“registered,” and “registration” refer to a registration effected by
preparing and filing a registration statement or similar document in compliance
with the Act, and the declaration or ordering of effectiveness of such
registration statement or document.

 

(j)             “Registrable
Securities” means (i) the Ordinary Shares held by the Shareholders on
the date hereof (the “Shares”), and (ii) any Ordinary Shares issued as
(or issuable upon the conversion or exercise of any warrant, right or other
security that is issued as) a dividend or other distribution with respect to,
or in exchange for, or in replacement of, the Shares, excluding in all cases,
however, any Registrable Securities sold by a person (x) in a transaction
in which his, her or its rights under Section 2 hereof are not assigned,
(y) pursuant to a registration statement under the Act that has been
declared effective and such Registrable Securities have been disposed of
pursuant to such effective registration statement, or (z) in a transaction
in which such Registrable Securities are sold pursuant to Rule 144 (or any
similar provision then in force) under the Act.

 

(k)          “SEC”
shall mean the Securities and Exchange Commission.

 

2.                                      Registration
Rights.

 

The Company
covenants and agrees as follows:

 

2.1         Demand
Registration.

 

(a)          Subject to
the conditions of this Section 2.1, if the Company shall receive at any
time after the lapse of six (6) months from the closing date of the Initial
Public Offering, a written request from the Holders of the then outstanding
Registrable Securities (the “Initiating Holders”), that the Company file
a registration statement under the Act covering the registration of then
outstanding Registrable Securities, and the Initiating Holders propose to sell
Registrable Securities at an aggregate price to the public (before any
underwriters’ discounts or commissions) of not less than $5,000,000.00, then
the Company shall, within twenty (20) days of the receipt thereof, give written
notice of such request to all Holders, and subject to the limitations of this
Section 2.1, use diligent efforts to effect, as soon as practicable, the
registration under the Act of all Registrable Securities that the Holders
request to be registered in a written request received by the Company within
twenty (20) days of the mailing of the Company’s notice pursuant to this
Section 2.1(a).

 

(b)         Any
registration effected pursuant to Section 2.1 shall be underwritten. The
Holders participating in the registration shall confer with the
Company as to the selection of a managing underwriter. Should they fail to
reach agreement, the selection

 

2

 

shall
be made by the Initiating Holder(s). All Holders proposing to distribute their
securities through such underwriting shall enter into an underwriting agreement
in customary form with the underwriter or underwriters selected for such
underwriting (which underwriter or underwriters shall be approved by a majority
of the Board of Directors of the Company). Notwithstanding any other provision
of this Section 2.1, if the underwriter determines in good faith and advises
the Company that marketing factors require a limitation of the number of
securities underwritten (including Registrable Securities), then the Company
shall so advise all Holders of Registrable Securities that would otherwise be
underwritten pursuant hereto, and the number of shares that may be included in
the underwriting shall be allocated to the Holders of such Registrable
Securities on a pro rata basis (as nearly as practicable) based on the number
of Registrable Securities held by all such Holders (including the Initiating
Holders), provided that no Registrable Securities shall be excluded unless and
until securities proposed to be issued by the Company have been excluded. Any
Registrable Securities excluded or withdrawn from such underwriting shall be
withdrawn from the registration.

 

(c)          In
addition, the Company shall not be required to effect a registration pursuant
to this Section 2.1:

 

(i)                                             with
respect to each Initial Holder, after the Company has effected one (1)  registration of such Initial Holder pursuant
to this Section 2.1, and such registration has been declared or ordered
effective; provided, however, that, in the event of a withdrawal by such Initial
Holder of a registration pursuant to this Section is based upon Material
Adverse Information relating to the Company that is different from the
information known or available, after diligent inquiry and review, to such
Initial Holder requesting registration at the time of its request for
registration under this Section, such registration shall not be counted toward
such one (1)  () permitted registration
pursuant to this Section;

 

(ii)                                          if
the Company has effected a registration pursuant to this Section 2.1
within the preceding one hundred eighty (180) days, and such registration has
been declared or ordered effective;

 

(iii)                                       during
the period starting with the date sixty (60) days prior to the Company’s good
faith estimate of the date of the filing of, and ending on a date one hundred twenty
(120) days following the effective date of, a Company-initiated registration
subject to Section 2.2, provided that the Company is actively employing in
good faith diligent efforts to cause such registration statement to become
effective and it is agreed that in the event the total amount of securities, including
Registrable Securities, to be included in such offering exceeds that amount of
securities sold that the underwriters determine in good faith is compatible with
the success of the offering, then no more than 25% of the Registrable
Securities of Holders proposed to be included therein shall be excluded unless
and until all other securities proposed to be sold, other than securities
proposed to be sold by the Company in the offering, have been excluded;

 

(iv)                                      if
the Company shall furnish to Holders requesting a registration pursuant to this
Section 2.1, a certificate signed by the Company’s Chief

 

3

 

Executive
Officer or Chairman of the Board stating that in the good faith judgment of the
Board of Directors of the Company, it would be seriously detrimental to the
Company and its stockholders for such registration to be effected at such time,
in which event the Company shall have the right to defer such filing for a
period of not more than 120 days after receipt of the request of the Initiating
Holders, provided that such right to delay a request shall be exercised by the
Company not more than once in any twelve (12)-month period and provided
further, that the Company shall not register any other of its shares during
such 120 days;

 

2.2         Company Registration.

 

(a)          If (but
without any obligation to do so) the Company proposes to register (including
for this purpose a registration effected by the Company for stockholders other
than the Holders) any of its stock or other securities under the Act in
connection with the public offering of such securities (other than a
registration relating solely to the sale of securities to participants in a
Company stock plan, a registration relating to a corporate reorganization or
other transaction under Rule 145 of the Act, a registration on any form that
does not include substantially the same information as would be required to be
included in a registration statement covering the sale of the Registrable
Securities, or a registration in which the only Ordinary Shares being
registered is Ordinary Shares issuable upon conversion of debt securities that
are also being registered), the Company shall, at such time, promptly give each
Holder written notice of such registration. Upon the written request of each
Holder given within twenty (20) days after mailing of such notice by the
Company, the Company shall, subject to the provisions of Section 2.4(e),
use its diligent efforts to cause to be registered under the Act all of the
Registrable Securities that each such Holder has requested to be registered.

 

(b)         Right to
Terminate Registration. The Company shall have the right to terminate or
withdraw any registration initiated by it under this Section 2.2 prior to
the effectiveness of such registration whether or not any Holder has elected to
include securities in such registration. The expenses of such withdrawn
registration shall be borne by the Company in accordance with Section 2.6
hereof.

 

2.3         Form F-3 Registration.

 

In
case the Company shall receive from any Holder[s] of the Registrable Securities
then outstanding a written request or requests that the Company effect a
registration on Form F-3 and any related qualification or compliance with
respect to all or a part of the Registrable Securities owned by such Holder or
Holders, the Company shall:

 

(a)          promptly
give written notice of the proposed registration, and any related qualification
or compliance, to all other Holders; and

 

(b)         use diligent
efforts to effect, as soon as practicable, such registration and such reasonable
qualifications and compliances as may be reasonably

 

4

 

requested
and as would permit or facilitate the sale and distribution of all or such
portion of such Holders’ Registrable Securities as are specified in such
request, together with all or such portion of the Registrable Securities of any
other Holders joining in such request as are specified in a written request
given within fifteen (15) days after receipt of such written notice from the
Company, provided, however, that the Company shall not be obligated to effect
any such registration, qualification or compliance, pursuant to this
Section 2.3:

 

(i)                                             if
Form F-3 is not available for such offering by the Holders;

 

(ii)                                          if
the Holders, together with the holders of any other securities of the Company
entitled to inclusion in such registration, propose to sell Registrable
Securities and such other securities (if any) at an aggregate price to the
public (before any underwriters’ discounts or commissions) of less than $2,000,000.00;

 

(iii)                                       if
the Company shall furnish to the Holders a certificate signed by the Chief
Executive Officer or Chairman of the Board of the Company stating that in the
good faith judgment of the Board of Directors of the Company, it would be
seriously detrimental to the Company and its stockholders for such Form F-3
registration to be effected at such time, in which event the Company shall have
the right to defer the filing of the Form F-3 registration statement for a
period of not more than 120 days after receipt of the request of the Holder or
Holders under this Section 2.3; provided, however, that the Company shall
not utilize this right more than once in any twelve (12) month period and
provided further, that the Company shall not register any other of its shares
during such 120 day period;

 

(iv)                                      if
the Company has, within the twelve (12) month period preceding the date of such
request, already effected two registrations on Form F-3 for the Holders
pursuant to this Section 2.3; or

 

(v)                                         in
any particular jurisdiction in which the Company would be required to qualify
to do business, where not otherwise required, or to execute a general consent
to service of process in effecting such registration, qualification or
compliance.

 

(c)          Registrations
effected pursuant to this Section 2.3 shall not be counted as requests for
registration effected pursuant to Section 2.1.

 

2.4         Obligations of the
Company.

 

Whenever
required under this Section 2 to effect the registration of any
Registrable Securities, the Company shall, as expeditiously as reasonably
possible:

 

(a)          prepare and
file with the SEC a registration statement with respect to such Registrable
Securities and use diligent efforts to cause such registration statement to
become effective, and, upon the request of the Holders of a majority of the
Registrable Securities registered thereunder, keep such registration statement
effective for a

 

5

 

period
of up to one hundred (100) days or, if earlier, until the distribution
contemplated in the Registration Statement has been completed; provided,
however, that (i) such 100 day period shall be extended for a period of time
equal to the period the Holder refrains from selling any securities included in
such registration at the request of the Company and underwriter of Ordinary
Shares (or other securities) of the Company; and (ii) in the case of any
registration of Registrable Securities on Form F-3 which are intended to be
offered on a continuous or delayed basis, such 100 day period shall be
extended, if necessary, to keep the registration statement effective until the
earlier to occur of the sale of all such Registrable Securities or their
becoming exempt from registration under the Act, provided that Rule 415,
or any successor rule under the Act, permits an offering on a continuous or
delayed basis, and provided further that applicable rules under the Act
governing the obligation to file a post-effective amendment permit, in lieu of
filing a post-effective amendment which (I) includes any prospectus
required by Section 10(a)(3) of the Act or (II) reflects facts or events representing
a material or fundamental change in the information set forth in the
registration statement, the incorporation by reference of information required
to be included in (I) and (II) above to be contained in periodic reports filed
pursuant to Section 13 or 15(d) of the 1934 Act in the registration
statement;

 

(b)         prepare and
file with the SEC such amendments and supplements to such registration
statement and the prospectus used in connection with such registration
statement as may be necessary to comply with the provisions of the Act with
respect to the disposition of all securities covered by such registration
statement;

 

(c)          furnish to
each Holder (i) a draft copy of the registration statement, and (ii) such
numbers of copies of a prospectus, including a preliminary prospectus, in
conformity with the requirements of the Act, and such other documents as it may
reasonably request in order to facilitate the disposition of Registrable
Securities owned by it;

 

(d)         use diligent
efforts to register and qualify the securities covered by such registration
statement under such other securities or “blue sky” laws of such jurisdictions
as shall be reasonably requested by the Holders, provided that the Company
shall not be required in connection therewith or as a condition thereto to
qualify to do business, where not otherwise required, or to file a general
consent to service of process in any such states or jurisdictions, unless the
Company is already subject to service in such jurisdiction and except as may be
required by the Act;

 

(e)          in the
event of any underwritten public offering, enter into and perform its
obligations under an underwriting agreement, in usual and customary form, with
the managing underwriter of such offering. Each Holder participating in such
underwriting shall also enter into and perform its obligations under such an
agreement. In connection with any offering involving an underwriting of shares
of the Company’s capital stock under Section 2.2, the Company shall not be
required to include any of the Holders’ securities in such underwriting unless
they accept the terms of the underwriting as agreed upon between the Company
and the underwriters selected by the Company under its sole discretion (which
underwriter or underwriters shall be approved by a majority of the Board of
Directors of the Company) and enter into an underwriting agreement in customary
form with an underwriter

 

6

 

or
underwriters selected by the Company. If any Holder disapproves of the terms of
any such Underwriting, such Holder may elect to withdraw therefrom by written
notice to the Company and the underwriter, delivered at least 20 business days
prior to the effective date of the registration statement. If the total amount
of securities, including Registrable Securities, requested by stockholders to
be included in such offering exceeds the amount of securities sold that the
underwriters determine in good faith is compatible with the success of the
offering, then subject to Section 2.1 above, the Company shall be required
to include in the offering only that number of such securities in addition to
the securities proposed to be offered by the Company, including Registrable
Securities, that the underwriters determine in good faith will not jeopardize
the success of the offering (the securities so included to be apportioned pro
rata among the selling stockholders according to the total amount of securities
entitled to be included therein owned by each selling stockholder or in such
other proportions as shall mutually be agreed to by such selling stockholders, provided
that no Registrable Securities of Holders shall be excluded unless and until
all securities of other security holders have been excluded). For purposes of
the preceding parenthetical concerning apportionment, for any selling
stockholder that is a Holder of Registrable Securities and that is a
partnership or corporation, the partners, retired partners and stockholders of
such Holder, or the estates and family members of any such partners and retired
partners and any trusts for the benefit of any of the foregoing persons shall
be deemed to be a single “selling stockholder” and any pro rata reduction with
respect to such “selling stockholder” shall be based upon the aggregate amount
of Registrable Securities owned by all entities and individuals included in
such “selling stockholder,” as defined in this sentence;

 

(f)            notify
each Holder of Registrable Securities covered by such registration statement,
at any time when a prospectus relating thereto is required to be delivered
under the Act, of (i) the issuance of any stop order by the SEC in respect of
such registration statement, or (ii) the happening of any event as a result of
which the prospectus included in such registration statement, as then in
effect, includes an untrue statement of a material fact or omits to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading in the light of the circumstances then existing;

 

(g)         cause all such
Registrable Securities registered pursuant hereunder to be listed on each
securities exchange on which similar securities issued by the Company are then
listed; and

 

(h)         provide a
transfer agent and registrar for all Registrable Securities registered pursuant
hereunder and a CUSIP number for all such Registrable Securities, in each case
not later than the effective date of such registration.

 

2.5         Information from
Holder.

 

(a)          It shall be
a condition precedent to the obligations of the Company to take any action
pursuant to this Section 2 with respect to the Registrable Securities of
any selling Holder that such Holder shall furnish to the Company such
information regarding itself, the Registrable Securities held by it, and any
other information with respect to such securities as shall be reasonably
required to effect the registration of such Holder’s Registrable Securities.

 

7

 

(b)         The Company
shall have no obligation with respect to any registration requested pursuant to
Section 2.3 if, due to the operation of sub-section 2.5(a), the
anticipated aggregate offering price of the Registrable Securities to be
included in the registration does not equal or exceed the anticipated aggregate
offering price required to originally trigger the Company’s obligation to
initiate such registration as specified in Section 2.3.

 

2.6         Expenses of
Registration.

 

All expenses other than
underwriting discounts and commissions incurred in connection with
registrations, filings or qualifications pursuant to Sections 2.1 and 2.2
and 2.3, including, without limitation, all registration, filing and
qualification fees (including “blue sky” fees), printers’ and accounting fees,
fees and disbursements of counsel for the Company (including fees and
disbursements of counsel for the Company in its capacity as counsel to the
selling Holders hereunder; if Company counsel does not make itself available
for this purpose, the Company will pay the reasonable fees and disbursements of
one counsel for the selling Holders) shall be borne by the Company. Notwithstanding
the foregoing, the Company shall not be required to pay for any expenses of any
registration proceeding that was commenced under Section 2.1 or
Section 2.3 if the registration request is subsequently withdrawn at the
request of the Holders of a majority of the Registrable Securities to be
registered (in which case all participating Holders shall bear such expenses
pro rata based upon the number of Registrable Securities that were to be registered
in the withdrawn registration) except in the event of a withdrawn registration
due to the disclosure of Material Adverse Information.

 

2.7         Delay of Registration.

 

No
Holder shall have any right to obtain or seek an injunction restraining or
otherwise delaying any such registration as the result of any controversy that
might arise with respect to the interpretation or implementation of this
Section 2.

 

2.8         Indemnification.

 

In the
event any Registrable Securities are included in a registration statement under
this Section 2:

 

(a)          To the
extent permitted by law, the Company will indemnify and hold harmless each
Holder, the partners or officers, directors and stockholders of each Holder,
legal counsel and accountants for each Holder, any underwriter (as defined in
the Act) for such Holder and each person, if any, who controls such Holder or
underwriter, within the meaning of the Act or the 1934 Act, against any losses,
claims, damages or liabilities (joint or several) to which they may become
subject under the Act, the 1934 Act or any state securities laws, insofar as
such losses, claims, damages or liabilities (or actions in respect thereof)
arise out of or are based upon any of the following statements, omissions or
violations (collectively a “Violation”): 
(i) any untrue statement or alleged untrue statement of a material
fact contained in such registration statement, including any preliminary
prospectus or final prospectus contained therein or any amendments or
supplements thereto, (ii) the omission or alleged omission to state
therein a material fact required to be stated

 

8

 

therein,
or necessary to make the statements therein not misleading, or (iii) any
violation or alleged violation by the Company of the Act, the 1934 Act, any
state securities laws or any rule or regulation promulgated under the Act, the
1934 Act or any state securities laws; and the Company will reimburse each such
Holder, partner, officer, director, stockholder, counsel, accountant, underwriter
or controlling person for any legal or other expenses reasonably incurred by
them in connection with investigating or defending any such loss, claim,
damage, liability or action; provided, however, that the indemnity agreement
contained in this Section 2.8(a) shall not apply to amounts paid in
settlement of any such loss, claim, damage, liability or action if such
settlement is effected without the consent of the Company (which consent shall
not be unreasonably withheld), nor shall the Company be liable in any such case
for any such loss, claim, damage, liability or action to the extent that it
arises out of or is based upon a Violation that occurs in reliance upon and in
conformity with information furnished expressly for use in connection with such
registration by any such Holder, partner, officer, director, stockholder,
counsel, accountant underwriter or controlling person; provided further,
however, that the foregoing indemnity agreement with respect to any preliminary
prospectus shall not inure to the benefit of any Holder, partner, officer,
director, stockholder, counsel, accountant or underwriter, or any person
controlling such Holder or underwriter, from whom the person asserting any such
losses, claims, damages or liabilities purchased shares in the offering, if a
copy of the prospectus (as then amended or supplemented if the Company shall
have furnished any amendments or supplements thereto) was not sent or given by
or on behalf of such Holder or underwriter to such person, if required by law
so to have been delivered, at or prior to the written confirmation of the sale
of the shares to such person, and if the prospectus (as so amended or
supplemented) would have cured the defect giving rise to such loss, claim,
damage or liability.

 

(b)         To the
extent permitted by law, each selling Holder, on a several and not joint basis,
will indemnify and hold harmless the Company, each of its directors, each of
its officers who has signed the registration statement, each person, if any,
who controls the Company within the meaning of the Act, legal counsel and
accountants for the Company, any underwriter, any other stockholder selling
securities in such registration statement and any controlling person of any
such underwriter or other stockholder, against any losses, claims, damages or
liabilities (joint or several) to which any of the foregoing persons may become
subject, under the Act, the 1934 Act or any state securities laws, insofar as
such losses, claims, damages or liabilities (or actions in respect thereto)
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 information furnished by such Holder expressly for use in
connection with such registration; and each such Holder will reimburse any
person intended to be indemnified pursuant to this Section 2.8(b) for any
legal or other expenses reasonably incurred by such person in connection with
investigating or defending any such loss, claim, damage, liability or action;
provided, however, that the indemnity agreement contained in this Section 2.8(b)
shall not apply to amounts paid in settlement of any such loss, claim, damage,
liability or action if such settlement is effected without the consent of the
Holder (which consent shall not be unreasonably withheld); and provided
further, that the total amounts payable in indemnity by a Holder under this
Section 2.8(b) in respect of any Violation shall not exceed the net proceeds
received by such Holder in the sale of Registrable Securities in the registered
offering out of which such Violation

 

9

 

arises.

 

(c)          Promptly
after receipt by an indemnified party under this Section 2.8 of actual
knowledge of the commencement of any action (including any governmental
action), such indemnified party will, if a claim in respect thereof is to be
made against any indemnifying party under this Section 2.8, 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 the defense thereof with counsel mutually satisfactory
to the parties; provided, however, that an indemnified party (together with all
other indemnified parties that may be represented without conflict by one
counsel) shall have the right to retain one separate counsel, with the fees and
expenses to be paid by the indemnifying party, if representation of such
indemnified party by the counsel retained by the indemnifying party would be
inappropriate due to actual or potential differing interests between such
indemnified party and any other party represented by such counsel in such
proceeding. The failure to deliver written notice to the indemnifying party
within a reasonable time of the commencement of any such action, if prejudicial
to its ability to defend such action, shall relieve such indemnifying party of
any liability to the indemnified party under this Section 2.8 to the
extent of such prejudice, but the omission to so deliver written notice to the
indemnifying party will not relieve it of any liability that it may have to any
indemnified party otherwise than under this Section 2.8.

 

(d)         If the
indemnification provided for in this Section 2.8 is held by a court of
competent jurisdiction to be unavailable to an indemnified party with respect
to any loss, liability, claim, damage or expense referred to herein, then the
indemnifying party, in lieu of indemnifying such indemnified party hereunder,
shall contribute to the amount paid or payable by such indemnified party as a
result of such loss, liability, claim, damage or expense in such proportion as
is appropriate to reflect the relative fault of and the relative benefits
received by the indemnifying party on the one hand and of the indemnified party
on the other in connection with the statements or omissions that resulted in
such loss, liability, claim, damage or expense, as well as any other relevant
equitable considerations, provided that no person guilty of fraud shall be
entitled to contribution. The relative fault of the indemnifying party and of
the indemnified party shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the
omission to state a material fact relates to information supplied by the
indemnifying party or by the indemnified party and the parties’ relative
intent, knowledge, access to information, and opportunity to correct or prevent
such statement or omission. The relative benefits received by the indemnifying
party and the indemnified party shall be determined by reference to the net
proceeds and underwriting discounts and commissions from the offering received
by each such party; provided, that in no event shall any contribution by a
Holder hereunder exceed the net proceeds from the offering of its Registrable
Securities received by such Holder.

 

(e)          Notwithstanding
the foregoing, to the extent that the provisions on indemnification and
contribution contained in the underwriting agreement entered into in connection
with the underwritten public offering are in conflict with the foregoing
provisions, the provisions in the underwriting agreement shall control; provided,
however,

 

10

 

that,
unless otherwise agreed, in no event shall the provisions of such underwriting
agreement impose potential liability on a Holder for indemnity or contribution
in excess of the net proceeds from the offering of its Registrable Securities
received by such Holder; and provided, further, however, the provisions on
indemnification and contribution contained in the underwriting agreement shall
not be deemed to be in conflict with the foregoing provisions solely by virtue
of the fact that the underwriting agreement is silent on them.

 

(f)            The
obligations of the Company and Holders under this Section 2.8 shall
survive the completion of any offering of Registrable Securities in a
registration statement under this Section 2, and otherwise. No
indemnifying party, in the defense of any such claim or litigation, shall,
except with the consent of each indemnified party, consent to entry of any
judgment or enter into any settlement which does not include as an
unconditional term thereof the giving by the claimant or plaintiff to such
indemnified party of a release from all liability in respect to such claim or
litigation.

 

2.9         Reports Under
Securities Exchange Act of 1934.

 

With a
view to making available to the Holders the benefits of Rule 144 promulgated
under the Act and any other rule or regulation of the SEC that may at any time
permit a Holder to sell securities of the Company to the public without registration
or pursuant to a registration on Form F-3, the Company agrees to:

 

(a)          make and
keep public information available, as those terms are understood and defined in
SEC Rule 144, at all times after the effective date of the Initial Public
Offering;

 

(b)         file with
the SEC in a timely manner all reports and other documents required of the
Company under the Act and the 1934 Act; and

 

(c)          furnish to
any Holder, so long as the Holder owns any Registrable Securities, forthwith
upon request (i) a written statement by the Company that it has complied
with the reporting requirements of SEC Rule 144 (at any time after ninety (90)
days after the effective date of the Initial Public Offering), the Act and the
1934 Act (at any time after it has become subject to such reporting
requirements), or that it qualifies as a registrant whose securities may be
resold pursuant to Form F-3 (at any time after it so qualifies), (ii) a
copy of the most recent annual or quarterly 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 in availing any Holder of any applicable
rule or regulation of the SEC that permits the selling of any such securities
without registration or pursuant to such form.

 

2.10   Assignment of Registration
Rights.

 

The
rights to cause the Company to register Registrable Securities pursuant to this
Section 2 may be assigned (but only with all related obligations) by a
Holder to a transferee of the Registrable Securities, provided that such
transferee receives or purchases the entire amount of Registrable Securities
then owned by the Holder, and agrees in writing to be bound by and

 

11

 

subject to the terms and conditions of this Agreement,
including without limitations the provisions of Section 2.8 above and 2.11
below. This provision shall not derogate from any provision which limits the
right to transfer the Registrable Securities.

 

2.11   “Market Stand-Off” Agreement.

 

To the
extent requested by the Company and managing underwriter of the Initial Public
Offering or other underwritten offering of the Company’s securities by the
Company, each Holder hereby agrees that it will not, directly or indirectly,
without the prior written consent of the Company and the managing underwriter,
during the period commencing on the date which is seven (7) days prior to date of
the final prospectus relating to such offerings and ending on the date
specified by the Company and the managing underwriter (such period not to
exceed 180 days) (i) lend, offer, pledge, sell, contract to sell, sell any
option or contract to purchase, purchase any option or contract to sell, grant
any option, right or warrant to purchase, or otherwise transfer or dispose of, directly
or indirectly (other than to donees or partners of the Holder who agree to be
similarly bound), any Ordinary Shares or any securities convertible into or
exercisable or exchangeable for Ordinary Shares (whether such shares or any
such securities are then owned by the Holder or are thereafter acquired), or
(ii) enter into any swap or other arrangement that transfers to another,
in whole or in part, any of the economic consequences of ownership of the Ordinary
Shares, whether any such transaction described in clause (i) or (ii) above is
to be settled by delivery of Ordinary Shares or such other securities, in cash
or otherwise. The foregoing provisions of this Section 2.11 shall not
apply (A to the sale of any shares to an underwriter pursuant to an underwriting
agreement or (B) the pledge of any shares, provided the beneficiary of the
pledged shares agrees in writing to be subject to the terms of this agreement
as if the beneficiary of the pledge was the owner of the shares. The
underwriters in connection with such public offerings by the Company are
intended third party beneficiaries of this Section 2.11 and shall have the
right, power and authority to enforce the provisions hereof as though they were
a party hereto; further, each Holder hereby agrees to enter into written
agreement with such underwriters containing terms substantially equivalent to
the terms of this Section 2.11, and each Holder hereby agrees that such
underwriters shall be entitled to require each such Holder to enter into such a
written agreement.

 

In
order to enforce the foregoing covenant, the Company may impose stop-transfer
instructions with respect to the Registrable Securities of each Holder (and the
shares or securities of every other person subject to the foregoing restriction)
until the end of such period.

 

2.12   Termination of Registration
Rights.

 

No
Holder shall be entitled to exercise any right provided for in this
Section 2 after five years following the consummation of the Initial Public
Offering or, as to any Holder, such earlier time at which all Registrable
Securities held by such Holder (and any affiliate of the Holder with whom such
Holder must aggregate its sales under Rule 144) can be sold without any
volume limitations in any ninety (90) day period without registration in
compliance with Rule 144(k) of the Act. If, after five years, any Registrable
Securities held by such Holder (and any affiliate of the Holder with whom such
Holder must aggregate its sales under Rule 144) cannot be sold without any
volume limitations in any ninety (90) day period without registration in
compliance with Rule 144(k) of the Act, the Company will use its best efforts
to assist such Holder in

 

12

 

disposing of such Registrable Securities; provided, however,
that the Company shall not be required to bear any expense or subject itself to
any liability in connection with, or as a result of, such assistance.

 

3.                                      Amendments
and Waivers

 

Any
term hereof may be amended and the observance of any term hereof 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 holders of
at least a majority of the Registrable Securities. Any amendment or waiver so effected
will be binding upon the Company, the Shareholders and all of their respective
successors and assigns whether or not such party, successor or assignee entered
into or approved such amendment or waiver.

 

4.                                      Successors
and Assigns

 

The
provisions of this Agreement will inure to the benefit of and be binding upon
the successors in interest, heirs and permitted assigns of the parties. Nothing
in this Agreement, express or implied, is intended to confer upon any party
other than the parties hereto or their respective successors and assigns any
rights, remedies, obligations, or liabilities under or by reason of this
Agreement, except as expressly provided in this Agreement.

 

5.                                      Enforceability;
Severability

 

The
parties hereto agree that each provision of this Agreement will be interpreted
in such a manner as to be effective and valid under applicable law. If one or
more provisions of this Agreement are nevertheless held to be prohibited,
invalid or unenforceable under applicable law, such provision will be effective
to the fullest extent possible excluding the terms affected by such
prohibition, invalidity or unenforceability, without invalidating the remainder
of such provision or the remaining provisions of this Agreement. If the
prohibition, invalidity or unenforceability referred to in the prior sentence
requires such provision to be excluded from this Agreement in its entirety, the
balance of the Agreement will be interpreted as if such provision were so
excluded and will be enforceable in accordance with its terms. If necessary,
the parties will, to the extent permissible by applicable law, amend this
Agreement, or enter into a voting trust agreement under which the shares held
by persons who are bound by this Agreement will be transferred to the voting trust
created thereby, so as to make effective and enforceable the intent of this
Agreement.

 

6.                                      Further
Assurances

 

Each Shareholders
and the Company will from time to time and at all times hereafter make, do,
execute, or cause or procure to be made, done and executed such further acts,
deeds, conveyances, consents and assurances without further consideration,
which may reasonably be required to effect the transactions contemplated by
this Agreement.

 

7.                                      Entire
Agreement

 

This
Agreement constitutes the entire agreement among the parties with respect to
the

 

13

 

subject matter hereof and no party will be liable or bound to any other
party in any manner by any warranties, representations or covenants except as specifically
set forth herein or therein.

 

8.                                      Delays
or Omissions

 

No
delay or omission to exercise any right power or remedy accruing to any party
under this Agreement, or upon any breach or default of any other party under
this Agreement, will impair any such right, power or remedy of such
non-breaching or non-defaulting party nor will it be construed to be a waiver
of any such breach or default, or an acquiescence therein, or of or in any
similar breach or default thereafter occurring; nor will any waiver of any
single breach or default be deemed a waiver of any other breach or default
theretofore or thereafter occurring. Any waiver, permit, consent or approval of
any kind or character on the part of any party of any provisions or conditions
of this Agreement, must be in writing and will be effective only to the extent
specifically set forth in such writing. All remedies, either under this
Agreement or by law or otherwise afforded to any party, will be cumulative and
not alternative.

 

9.                                      Counterparts

 

This Agreement
may be executed in two or more counterparts, each of which will be deemed an
original, but all of which together shall constitute one and the same
instrument.

 

10.                               Captions
and Headings

 

The
captions and headings used in this Agreement are used for convenience only and
are not to be considered in construing or interpreting this Agreement.

 

11.                               Notices

 

Unless
otherwise provided herein, all notices, requests, waivers and other
communications made pursuant to this Agreement must be in writing and will be
conclusively deemed to have been duly given (a) when hand delivered to the
other party; (b) when sent by email or facsimile to the address or number
set forth below, respectively, if sent between 8:00 a.m. and 5:00 p.m.
recipient’s local time on a business day, or on the next business day if sent
by email or facsimile to the address or number set forth below, respectively,
if sent other than between 8:00 a.m. and 5:00 p.m. recipient’s local time on a
business day; (c) three business days after deposit in the mail, postage
prepaid and addressed to the other party at the address set forth below; or
(d) the next business day after deposit with an overnight delivery
service, postage prepaid, addressed to the parties as set forth below with next
business day delivery guaranteed. Each person making a communication hereunder
by facsimile or email will promptly confirm by telephone to the person to whom
such communication was addressed each communication made by it by facsimile or
email pursuant hereto but the absence of such confirmation will not affect the
validity of any such communication. A party may change or supplement the
addresses given below, or designate additional addresses, for purposes of this
Section by giving the other party written notice of the new address in the
manner set forth above.

 

	
  If
  to the Company:

  	
  RRSat Global Communications Network Ltd.

  
	
   

  	
  Reem Junction

  

 

14

 

	
   

  	
  D.N. Shikmim 79813

  
	
   

  	
  Israel

  
	
   

  	
   

  
	
   

  	
  Tel: +972-8-861-0000

  
	
   

  	
  Fax: +972-8-861-0002

  
	
   

  	
  Email: david@rrsat.com

  
	
   

  	
  Attn.: Chief Executive Officer

  
	
   

  	
   

  
	
  with
  a copy to:

  	
  Naschitz,
  Brandes & Co.

  
	
   

  	
  5 Tuval Street

  
	
   

  	
  Tel Aviv 67897,
  Israel

  
	
   

  	
  Fax:
  +972-3-623-5051

  
	
   

  	
  Attn: Aaron M.
  Lampert, Adv.

  
	
   

  	
   

  
	
   

  	
   

  
	
  If
  to the Shareholders:

  	
  To the persons and addresses indicated on the
  signature pages hereof

  

 

12.                               Governing
Law; Jurisdiction

 

 This Agreement shall be governed by and
construed according to the laws of the State of Israel. Any dispute arising
under or in relation to this Agreement shall be governed by and construed
according to the laws of the State of Israel and exclusively resolved by the
courts of the State of Israel, and each of the parties hereby irrevocably and
unconditionally consents and submits to the exclusive jurisdiction and venue of
Tel Aviv, Israel.

 

15

 

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

 

	
   

  	
  RRSat Global
  Communications Network Ltd.:

  
	
   

  	
   

  
	
   

  	
  -Signed-

  
	
   

  	
  By: David Rivel, Chief
  Executive Officer

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  Reem
  Junction

  
	
   

  	
   

  	
  D.N.
  Shikmim 79813

  
	
   

  	
   

  	
  Israel

  
	
   

  	
   

  
	
   

  	
  Shareholders:

  
	
   

  	
   

  
	
   

  	
   -Signed-

  
	
   

  	
  Delta Engineering Equipment
  Ltd.

  
	
   

  	
   

  
	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Facsimile:

  	
   

  
	
   

  	
  Email: 

  	
   

  
	
   

  	
   

  
	
   

  	
  -Signed-

  
	
   

  	
  Kardan Communications Ltd.

  
	
   

  	
   

  
	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Facsimile:

  	
   

  
	
   

  	
  Email: 

  	
   

  
	
   

  	
   

  
	
   

  	
  -Signed-

  
	
   

  	
  David Rivel

  
	
   

  	
   

  
	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Facsimile:

  	
   

  
	
   

  	
  Email: 

  	
   

  
						

 

16

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]