Document:

Security Agreement, dated Nov 11, 2005

 Exhibit 10.14 
  
 SECURITY AGREEMENT 
  
 This Security Agreement (this “Agreement”), dated as of November 11, 2005, is made by IDT SPECTRUM, INC., a Delaware
corporation (“Debtor”), in favor of WINSTAR HOLDINGS, LLC (the “Lender”). 
  
 WHEREAS, Debtor is indebted to the Lender pursuant to a secured promissory note, originally dated as of January 31, 2005, amended and
restated on August 18, 2005 and further amended and restated on November 11, 2005, in the principal amount of $10,000,000 (the “Note”), and other obligations referred to below; 
  
 NOW THEREFORE, in consideration of the premises, the mutual
covenants herein contained and other good and valuable consideration (the receipt, adequacy, and sufficiency of which are hereby acknowledged), the parties hereto, intending legally to be bound, hereby agree as follows: 
  
 1. DEFINITIONS 
  
 (a) Certain Defined Terms. As used in this Agreement, the following
terms have the following meanings: 
  
 “Collateral” has the meaning specified in Section 2. 
  
 “Default” means the occurrence of an Event of Default as defined in the Note. 
  
 “Secured Obligations” means (i) all
obligations of Debtor under the Note, (ii) all obligations of Debtor hereunder, and (iii) all other indebtedness, and obligations in connection therewith, of Debtor to the Lender, its successors and assigns, howsoever created, arising, or
evidenced, whether direct or indirect, absolute or contingent, or now or hereafter existing, or due or to become due, in each case, as the same may be extended, renewed, amended, or otherwise modified from time to time. 
  
 “Note” has the meaning specified in the
recitals to this Agreement. 
  
 “Obligor” means Debtor and each other party primarily or secondarily liable with respect to any of the Secured Obligations. 
  
 “UCC” means the Uniform Commercial Code as the same may, from time to time, be in effect in the State of New Jersey;

  
 (b) Certain Incorporated Terms. Except as the context
otherwise requires, terms (including, without limitation, “account”, “chattel paper”, “deposit account”, “document”, 

 
“goods”, “instrument”, “general intangible, “payment intangible”, “inventory”, “equipment”,
“investment property”, “supporting obligation”, and “proceeds”) not otherwise defined herein, are used herein as defined in the UCC. 
  
 2. SECURITY INTEREST. As security for the payment and performance of the Secured Obligations, Debtor hereby
grants to the Lender, a security interest in all of Debtor’s right, title, and interest in, to and under the following, wheresoever located and whether now existing or owned or hereafter acquired or arising (collectively, the
“Collateral”): (i) all accounts; (ii) all chattel paper; (iii) all deposit accounts; (iv) all instruments; (v) all general intangibles (including all payment intangibles and all patents, trademarks and
copyrights); (vi) all goods (including all inventory and all equipment); (vii) all investment property; (viii) all supporting obligations, (ix) all documents (including all warehouse receipts and bills of lading), and
(x) all products and proceeds of any and all of the foregoing. 
  
 3. DEBTOR’S REPRESENTATIONS AND WARRANTIES. Debtor hereby represents and warrants to the Lender, as follows: 
  
 (a) Organization. Debtor is a corporation duly existing under the laws of the State of Delaware; 
  
 (b) Authorization, No Conflict. The execution, delivery, and
performance by Debtor of this Agreement (i) are within Debtor’s corporate powers, (ii) have been duly authorized by all necessary corporate action, (iii) do not require any consent or approval of any person or entity (including
any governmental authority) that has not been obtained, (iv) do not and will not result in a violation of any provision of law or of Debtor’s organizational documents, and (v) do not and will not result in a violation of or a default
under any agreement binding upon Debtor or its assets; 
  
 (c)
Validity. This Agreement is the legal, valid, and binding obligation of Debtor enforceable in accordance with its terms; 
  
 (d) Location of Collateral. Schedule 1 accurately sets forth the location of Debtor’s chief executive office, its principal place of
business, and all locations where Collateral is kept; 
  
 (e)
Names, Trade Names, and Trade Styles. Except as set forth in Schedule 1, Debtor has not at any time during the preceding three years (i) been known as or used any other corporate, trade, or fictitious name, (ii) changed its
name, (iii) been the surviving or resulting corporation in a merger or consolidation, or (iv) acquired through asset purchase or otherwise any business of any person or entity. Debtor’s name (as indicated in its certificate of
incorporation is exactly as set forth in its signature hereto; 
  
 (f) Enforceability; Priority of Security Interest. Upon the filing of the financing statements attached as Exhibit A, this Agreement creates in favor of the Lender (i) a valid, enforceable perfected security interest in
all of the Collateral other than general intangibles, and (ii) a valid, enforceable security interest in general intangibles included in the Collateral; 
  
 (g) Other Financing Statements. No effective UCC financing statement naming Debtor 

  

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as debtor (or the like) and covering any of the Collateral is on file in any filing office in any jurisdiction, except for UCC financing statements in favor
of the Lender under this Agreement; 
  
 (h) Ownership of
Collateral. Debtor is (and except as permitted by Section 4(e) will continue to be) the sole and complete owner of the Collateral, free from any security interest other than that created hereby; and 
  
 (i) Deposit and Security Accounts. Schedule 1 sets forth the
names and addresses of (i) all investment property and (ii) all financial institutions at which Debtor maintains its deposit accounts and securities accounts, together with the related account names and numbers. 
  
 4. COVENANTS. Debtor agrees that, unless otherwise consented to
by the Lender, it will: 
  
 (a) Preservation and Defense of
Collateral. Preserve, protect, and defend the Collateral against any adverse claims and demands not in favor of the Lender; 
  
 (b) Compliance with Laws, Etc. Comply in all material respects with all applicable laws, and with all policies of insurance relating in a material
way to the Collateral; 
  
 (c) Change in Name, Identity, or
Structure. Not change its name, identity, or organizational structure, without giving the Lender at least 30 days’ prior written notice thereof; 
  
 (d) Maintenance of Records. Keep accurate and complete books and records with respect to the Collateral; 
  
 (e) Disposition of Collateral. Not sell or assign, agree to sell or
assign, or otherwise dispose of, any of the Collateral or any right or interest therein, except for the sale of inventory or of obsolete equipment, each in the ordinary course of business; 
  
 (f) Security Interests. Keep the Collateral free of all security
interests of any kind, except for those created hereby; 
  
 (g)
Merger. Not be a party to any merger or consolidation, other than as consented to by the Lender; 
  
 (h) Notices, Reports and Information. (i) Notify the Lender of any material claim made or asserted against the Collateral by any person or
entity and of any event which could materially adversely affect the value of the Collateral or the Lender’s security interest therein; (ii) furnish to the Lender such statements and schedules further identifying and describing the
Collateral and such other reports and other information in connection with the Collateral as the Lender may from time to time request, all in reasonable detail; and (iii) permit the Lender to inspect the Collateral and to have reasonable access
to Debtor’s books and records. 
  
 (i) Insurance. Keep
the Collateral at all times insured against loss, damage, theft, and other risks, in such amounts and with such companies and under such policies and in such form, all as shall reasonably be satisfactory to the Lender. 
  

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 5. FURTHER ASSURANCES. 
  
 (a) Control. Promptly, upon request of the Lender, at any time a Default exists, Debtor will take all actions
necessary or desirable to establish the Lender’s control (within the meaning of the UCC) over all securities accounts and deposit accounts. 
  
 (b) Filings. Debtor hereby authorizes the Lender to file a record or records (as defined in Article 9 of the UCC), including, without limitation,
financing statements, in all jurisdictions and with all filing offices as the Lender may determine, in its sole discretion, are necessary or advisable to perfect the security interest granted to the Lender hereby. Such financing statements may
describe the Collateral in the same manner as described herein or may contain an indication or description of collateral that describes such property in any other manner as the Lender may determine, in its sole discretion, is necessary, advisable,
or prudent to ensure the perfection of the security interest in the Collateral granted to the Lender hereby, including, without limitation, describing such property as “all assets” or “all personal property.” 
  
 (c) Other Action. Debtor agrees that from time to time at the expense
of Debtor, that it shall promptly execute and deliver all further instruments and documents, and take all further action, that may be necessary or desirable, or that the Lender may reasonably request, in order to create and/or maintain the validity,
perfection, or priority of and protect any security interest granted or purported to be granted hereby or to enable the Lender to exercise and enforce its rights and remedies hereunder with respect to any Collateral. Without limitation of the
foregoing, Debtor agrees that it will, upon request of the Lender (i) deliver to the Lender all certificated securities representing any or all of the Collateral (accompanied by stock powers executed in blank), (ii) deliver to the Lender,
all instruments and chattel paper, and all other rights to payment at any time evidenced by promissory notes, trade acceptances or other instruments (in each case appropriately endorsed and accompanied by instruments of transfer and assignment),
(iii) mark all chattel paper with such legends as the Lender shall reasonably specify, and (iv) cause the Lender’s security interest to be duly noted on any certificate of title covering the Collateral. 
  
 (d) Power of Attorney. The Lender shall have the right to, in the name
of Debtor, or in the name of the Lender or otherwise, without notice to or assent by Debtor, and Debtor hereby constitutes and appoints the Lender (and any of the Lender’s officers, employees or agents designated by the Lender) as Debtor’s
true and lawful attorney-in-fact, with full power and authority to execute any and all such other documents and instruments, and do any and all acts and things for and on behalf of Debtor, which the Lender may deem necessary or advisable to
maintain, protect, realize upon and preserve the Collateral and the Lender’s security interest therein and to accomplish the purposes of this Agreement. 
  
 6. DEFAULT. Whenever a Default shall be existing, all Secured Obligations may (notwithstanding any provisions thereof), at the option of the
Lender, and without demand or notice of any kind, be declared, and thereupon immediately shall become, due and payable, and the Lender may exercise from time to time any rights and remedies available to it under applicable law and may, without
notice except as specified below, sell, lease, assign, and deliver, or grant options to purchase, or otherwise dispose of all or any part of the Collateral, at such place or places as the Lender may determine, at public or private sale, it being
agreed that the 

  

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purchaser, lessee, assignee, or recipient of all or any part of the Collateral so disposed of at any public or private sale may thereafter hold the same
absolutely free from any claim or right of Debtor of whatsoever kind, including any right of redemption, and any obligation to see to the application of any part of the purchase money paid therefor or any liability for the misapplication or
non-application thereof; and the Lender may, without notice or publication, adjourn any public or private sale or cause the same to be adjourned from time to time by announcement at the time and place fixed for such sale, and such sale may be made
at any time or place to which the same may be so adjourned. The parties hereto hereby agree that the duties of the Lender pursuant to the UCC will be deemed to be satisfied so long as the requirements of this Section 6 are satisfied in
connection with any disposition of Collateral pursuant to this Agreement. Debtor agrees, in case of Default, to assemble, at its expense, all Collateral at a convenient place acceptable to the Lender. Any notification of intended disposition of any
of the Collateral required by law, shall be deemed reasonably and properly given if given at least five (5) days before such disposition. Any proceeds of any disposition by the Lender of any of the Collateral may be applied by the Lender to the
payment of expenses in connection with the Collateral, including reasonable attorneys’ fees and legal expenses, and any balance of such proceeds shall be applied by the Lender (i) first, to the payment of such of the Secured Obligations,
and in such order of application, as the Lender may from time to time elect; (ii) second, to the payment to whosoever may be lawfully entitled to receive the same or as a court of competent jurisdiction may direct, of any surplus then remaining
from such proceeds; and (iii) if any balance is remaining, to the Debtor. 
  
 7. GENERAL. 
  
 (a)
Debtor Remains Liable. Anything herein to the contrary notwithstanding, (i) Debtor shall remain liable under any agreements and other documents included in the Collateral, to the extent set forth therein, to perform all of its duties and
obligations thereunder to the same extent as if this Agreement had not been executed, (ii) the exercise by the Lender of any of the rights hereunder shall not release Debtor from any of its duties or obligations under such agreements and other
documents included in the Collateral, and (iii) the Lender shall not have any obligation or liability under any agreements and other documents included in the Collateral by reason of this Agreement, nor shall the Lender be obligated to perform
any of the obligations or duties of Debtor thereunder or to take any action to collect or enforce any such agreement or other document included in the Collateral hereunder. 
  
 (b) Lender Performance of Debtor’s Obligations. The Lender may perform or pay any obligation which Debtor has
agreed to perform or pay under or in connection with this Agreement, and Debtor shall reimburse the Lender on demand for any amounts paid by the Lender pursuant to this Section 7(b). 
  
 (c) Lender’s Duties. Notwithstanding any provision contained in
this Agreement, the Lender shall have no duty to exercise any of the rights, privileges, or powers afforded to it and shall not be responsible to Debtor or any other person for any failure to do so or delay in doing so. Beyond the exercise of
reasonable care to assure the safe custody of Collateral in the Lender’s possession and the accounting for moneys actually received by the Lender hereunder, the Lender shall have no duty or liability to exercise or preserve any rights,
privileges, or powers pertaining to the Collateral. 
  

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 (d) License. For the sole purpose of enabling the Lender to exercise its rights and remedies in
connection with this Agreement from and after the occurrence of a Default, Debtor hereby grants to the Lender an irrevocable, non-exclusive and assignable license (exercisable without payment or royalty or other compensation to Debtor) to use,
license, or sublicense any general intangibles to the extent relating to the Collateral. 
  
 (e) Notices. All notices and other communications provided for hereunder shall be in writing (including telecopy communication) and mailed (certified or registered, postage prepaid), telecopied, or delivered,
addressed to a party at the address set forth under its name on the signature page hereof, or at such other address as shall be designated by such party in a written notice to the other party. All such notices and communications shall, when mailed
by certified mail, return receipt requested, telecopied, courier, or hand delivery, be effective three (3) days after mailing, upon transmission by telecopier (after receiving confirmation of receipt), on the next business day after timely
delivery to a courier guaranteeing next day delivery, or upon receipt by hand delivery, addressed as aforesaid. Any party hereto may change the person, address, or telecopier number to whom or which notices are to be given hereunder, by notice duly
given hereunder; provided, however, that any such notice shall be deemed to have been given hereunder only when actually received by the party to which it is addressed. 
  
 (f) No Waiver; Cumulative Remedies. No failure to exercise, and no delay in exercising, on the part of the Lender,
any right, power, or privilege hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right, power, or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right,
power, or privilege. The rights and remedies herein provided are cumulative and not exclusive of any rights or remedies provided by law. 
  
 (g) Costs and Expenses. Any expense incurred by the Lender (including, without limitation, reasonable attorneys’ fees and disbursements) in
connection with the administration, or enforcement of the Note, this Agreement, and any other document executed by Debtor in connection with the obligations of Debtor thereunder or hereunder or any amendment thereto or hereto, or the exercise of any
right or remedy upon the occurrence of a Default, including, without limitation, the recording and filing fees to perfect the liens granted under this Agreement and the costs of collection and reasonable attorneys’ fees and expenses, shall be
paid by Debtor within fifteen (15) days of receiving written notice thereof from the Lender. Any such expense incurred by the Lender and not timely paid by the Debtor shall be added to the other obligations under the Note and shall earn
interest at the same rate per annum as the principal thereunder. 
  
 (h) Binding Effect. This Agreement shall be binding upon, inure to the benefit of and be enforceable by Debtor, the Lender, and their respective successors and assigns. 
  
 (i) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE
STATE OF NEW JERSEY, EXCEPT AS REQUIRED BY MANDATORY PROVISIONS OF LAW AND TO THE EXTENT THE VALIDITY OR PERFECTION OF THE SECURITY INTERESTS HEREUNDER, OR THE REMEDIES HEREUNDER, IN RESPECT OF ANY COLLATERAL ARE GOVERNED BY THE LAW OF A
JURISDICTION OTHER THAN NEW JERSEY. 
  

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 (j) Termination. Either the Lender or Debtor may terminate this Agreement at any time upon written
notice to the other of such termination; provided, however, that such termination shall in no way affect, and this Agreement shall remain fully operative as to, any transactions entered into or rights granted or Secured Obligations
incurred prior to the receipt of such notice by the party to whom given. Prior to such termination, this Agreement shall be a continuing Agreement in every respect. 
  
 (k) Forum Selection And Consent To Jurisdiction Subject to the Lender’s sole and absolute election, ALL ACTIONS
OR PROCEEDINGS IN ANY WAY ARISING OUT OF, FROM OR RELATED TO THIS AGREEMENT WILL BE LITIGATED IN COURTS HAVING SITUS WITHIN NEW YORK, NEW YORK. DEBTOR HEREBY CONSENTS AND SUBMITS TO THE JURISDICTION OF ANY COURT LOCATED WITHIN NEW YORK, NEW YORK,
WAIVES PERSONAL SERVICE OF PROCESS UPON DEBTOR, AND AGREES THAT ALL SUCH SERVICE OF PROCESS MAY BE MADE BY REGISTERED MAIL DIRECTED TO DEBTOR AT THE ADDRESS STATED ON THE SIGNATURE PAGE HEREOF, AND SERVICE SO MADE WILL BE DEEMED TO BE COMPLETED UPON
ACTUAL RECEIPT. 
  
 (l) WAIVER OF JURY TRIAL. DEBTOR HEREBY
EXPRESSLY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS AGREEMENT OR UNDER ANY AMENDMENT, INSTRUMENT, DOCUMENT, OR AGREEMENT DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION
HEREWITH, AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY. DEBTOR AGREES THAT IT WILL NOT ASSERT ANY CLAIM AGAINST LENDER ON ANY THEORY OF LIABILITY FOR SPECIAL, INDIRECT, CONSEQUENTIAL, INCIDENTAL,
OR PUNITIVE DAMAGES. 
  
 (m) Entire Agreement; Amendment.
This Agreement contains the entire agreement of the parties with respect to the subject matter hereof and shall not be amended except by the written agreement of the parties. 
  
 (n) Severability. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be
effective and valid under all applicable laws and regulations. If, however, any provision of this Agreement shall be prohibited by or invalid under any such law or regulation in any jurisdiction, it shall, as to such jurisdiction, be deemed modified
to conform to the minimum requirements of such law or regulation, or, if for any reason it is not deemed so modified, it shall be ineffective and invalid only to the extent of such prohibition or invalidity without affecting the remaining provisions
of this Agreement, or the validity or effectiveness of such provision in any other jurisdiction. 
  
 (o) Counterparts. This Agreement may be executed in a number of identical counterparts, each of which shall be deemed an original for all purposes
and all of which constitute, collectively, one agreement; but, in making proof of this Agreement, it shall not be necessary to produce or account for more than one such counterpart. 
  
 [Signature Page Follows] 
  

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

			
	 DEBTOR

	
	 IDT SPECTRUM, INC.

		
	 By:
	 	/s/ John C. Petrillo
	 Name:
	 	John C. Petrillo
	 Title:
	 	Chairman and Chief Executive Officer IDT Spectrum
	
	 Address:

	
	 520 Broad Street

	 Newark, NJ 07012

	 Attn: Chief Executive Officer

	
	 LENDER

	
	 WINSTAR HOLDINGS, LLC

		
	 By:
	 	/s/ Abilio Pereira
	 Name:
	 	Abilio Pereira
	 Title:
	 	Chief Financial Officer
	
	 Address:

	
	 520 Broad Street

	 Newark, NJ 07012

	 Attn: Legal Department

  
 SCHEDULE 1 
  
 520 Broad Street 
 Newark, NJ 07012Form of IDT Spectrum, Inc 2005 Stock Option and Incentive Plan

 Exhibit 10.15 
  
 FORM OF 
 IDT SPECTRUM, INC. 
 2005 STOCK OPTION AND INCENTIVE PLAN 
  
 1. Purpose; Types of Awards; Construction. 
  

The purpose of the IDT Spectrum, Inc. 2005 Stock Option and Incentive Plan (the “Plan”) is to provide incentives to executive officers,
employees, directors and consultants of IDT Spectrum, Inc. (the “Company”), or any parent, subsidiary or affiliate of the Company which now exists or hereafter is organized or acquired by the Company, to acquire a proprietary interest in
the Company, to continue as officers, employees, directors or consultants, to increase their efforts on behalf of the Company and to promote the success of the Company’s business. The provisions of the Plan are intended to satisfy the
requirements of Section 16(b) of the Securities Exchange Act of 1934, as amended, and of Section 162(m) of the Internal Revenue Code of 1986, as amended, and shall be interpreted in a manner consistent with the requirements thereof. 
  
 2. Definitions. 
  
 As used in this Plan, the following words and phrases shall have the meanings indicated: 
  
 (a) “Agreement” shall mean a written agreement
entered into between the Company and a Grantee in connection with an award under the Plan. 
  
 (b) “Board” shall mean the Board of Directors of the Company. 
  
 (c) “Change in Control” means a change in ownership or control of the Company effected through
either of the following: 
  
 (i) any
“person,” as such term is used in Sections 13(d) and 14(d) of the Exchange Act (other than (A) the Company, (B) any trustee or other fiduciary holding securities under an employee benefit plan of the Company, (C) any corporation or other
entity owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of common stock, or (D) any person who, immediately prior to the Initial Public Offering, beneficially owned more than
25% of the combined voting power of the Company’s then outstanding voting securities), is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company (not
including in the securities beneficially owned by such person any securities acquired directly from the Company or any of its affiliates other than in connection with the acquisition by the Company or its affiliates of a business) representing 25%
or more of the combined voting power of the Company’s then outstanding voting securities; or 
  
 (ii) during any period of not more than two consecutive years, not including any period prior to the initial adoption of this Plan by the
Board, individuals who at the beginning of such period constitute the Board, and any new director (other than a 
  

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 director whose initial assumption of office is in connection with an actual or threatened election
contest, including, but not limited to a consent solicitation, relating to the election of directors of the Company) whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least
two-thirds (2/3) of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute at least a majority thereof.

  
 (d) “Class B Common Stock” shall
mean shares of Class B Common Stock par value $.01 per share, of the Company. 
  
 (e) “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time. 
  
 (f) “Committee” shall mean the Compensation Committee of the Board or such other committee as the Board may designate from time
to time to administer the Plan, or if no such committee has been designated, the Board. In the case of awards to named executive officers of the Company intended to qualify as “performance based compensation” under Section 162(m) of the
Code, such awards will be made and administered by the compensation committee of IDT Corporation. 
  
 (g) “Company” shall mean IDT Spectrum, Inc., a corporation incorporated under the laws of the State of Delaware, or any
successor corporation. 
  
 (h) “Continuous
Service” means that the provision of services to the Company or a Related Entity in any capacity of officer, employee, director or consultant is not interrupted or terminated. Continuous Service shall not be considered interrupted in the case
of (i) any approved leave of absence, (ii) transfers between locations of the Company or among the Company, any Related Entity or any successor in any capacity of officer, employee, director or consultant, or (iii) any change in status as long as
the individual remains in the service of the Company or a Related Entity in any capacity of officer, employee, director or consultant (except as otherwise provided in the applicable Agreement). An approved leave of absence shall include sick leave,
maternity leave, military leave (including without limitation service in the National Guard or the Army Reserves) or any other personal leave approved by the Committee. For purposes of Incentive Stock Options, no such leave may exceed ninety (90)
days unless reemployment upon expiration of such leave is guaranteed by statute or contract. 
  
 (i) “Corporate Transaction” means any of the following transactions: 
  
 (i) a merger or consolidation of the Company with any other
corporation or other entity, other than (A) a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted
into voting securities of the surviving or parent entity) 80% or more of the combined voting power of the voting securities of the Company or such surviving or parent entity outstanding 
  

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 immediately after such merger or consolidation or (B) a merger or consolidation effected to implement a
recapitalization of the Company (or similar transaction) in which no “person” (as defined in the Exchange Act) acquired 25% or more of the combined voting power of the Company’s then outstanding securities; or 
  
 (ii) a plan of complete liquidation of the Company or an
agreement for the sale or disposition by the Company of all or substantially all of its assets (or any transaction having a similar effect). 
  
 (j) “Deferred Stock Units” mean a Grantee’s rights to receive shares of Class B Common Stock on a deferred basis, subject
to such restrictions, forfeiture provisions and other terms and conditions as shall be determined by the Committee. 
  
 (k) “Disability” shall mean a Grantee’s inability to perform his or her duties with the Company or any of its affiliates by
reason of any medically determinable physical or mental impairment, as determined by a physician selected by the Grantee and acceptable to the Company. 
  
 (l) “Eligible Affiliate Individual” shall mean any executive officer, employee, director and consultant of any Parent or a
Subsidiary of any Parent who, in the judgment of the Committee can contribute to the growth or success of the Company. 
  
 (m) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to time. 
  
 (n) “Fair Market Value” per share as of a
particular date shall mean (i) the closing sale price per share of Class B Common Stock on the national securities exchange on which the Class B Common Stock is principally traded for the last preceding date on which there was a sale of such Class B
Common Stock on such exchange, or (ii) if the shares of Class B Common Stock are then traded in an over-the-counter market, the average of the closing bid and asked prices for the shares of Class B Common Stock in such over-the-counter market for
the last preceding date on which there was a sale of such Class B Common Stock in such market, or (iii) if the shares of Class B Common Stock are not then listed on a national securities exchange or traded in an over-the-counter market, such value
as the Committee, in its sole discretion, shall determine. 
  
 (o) “Grantee” shall mean a person who receives a grant of Options, Stock Appreciation Rights, Limited Rights, Deferred Stock Units, Restricted Stock, or Performance Compensation Awards under the Plan.

  
 (p) “Incentive Stock Option” shall
mean any option intended to be, and designated as, an incentive stock option within the meaning of Section 422 of the Code. 
  
 (q) “Initial Public Offering” shall mean the closing of the sale of Class B Common Stock to the public for the Company’s
account in an initial underwritten public offering pursuant to an effective registration statement under the United States Securities Act of 1933, as amended. 
  

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 (r) “Insider” shall mean a Grantee who is subject to the reporting requirements
of Section 16(a) of the Exchange Act. 
  
 (s)
“Insider Trading Policy” shall mean the Insider Trading Policy of the Company, as may be amended from time to time. 
  
 (t) “Limited Right” shall mean a limited stock appreciation right granted pursuant to Section 10 of the Plan. 
  
 (u) “Non-Employee Director” means a member of the
Board who is not an employee of the Company, any Subsidiary, IDT Corporation, or any of IDT Corporation’s subsidiaries. 
  
 (v) “Non-Employee Director Annual Grant” shall mean an award of 2,500 shares of Restricted Stock that fully vests one year after
the grant date and an award of Options to purchase 5,000 shares of Class B Common Stock with an Option Price equal to the Fair Market Value of the shares of Class B Common Stock covered by the Option on the date of grant and that fully vests one
year after the grant date. 
  
 (w)
“Non-Employee Director Grant Date” shall mean January 5 of the applicable year (or the following business day if January 5 is not a business day); provided, however, that the first Non-Employee Director Grant Date shall occur on January 5,
2007. 
  
 (x) “Nonqualified Stock
Option” shall mean any option not designated as an Incentive Stock Option. 
  
 (y) “Option” or “Options” shall mean a grant to a Grantee of an option or options to purchase shares of Class B Common
Stock. 
  
 (z) “Option Agreement” shall
have the meaning set forth in Section 6 of the Plan. 
  
 (aa) “Option Price” shall mean the exercise price of the shares of Class B Common Stock covered by an Option. 
  
 (bb) “Parent” shall mean any company (other than the Company) in an unbroken chain of companies ending with the Company if, at
the time of granting an award under the Plan, each of the companies other than the Company owns stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other companies in such chain.

  
 (cc) “Performance Compensation
Award” shall mean any award designated by the Committee as a Performance Compensation Award pursuant to Section 15 of the Plan. 
  
 (dd) “Performance Criteria” shall mean the criterion or criteria that the Committee shall select for purposes of establishing
the Performance Goal(s) for a Performance Period 
  

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 with respect to any Performance Compensation Award under the Plan. The Performance Criteria that will be
used to establish the Performance Goal(s) shall be based on the attainment of specific levels of performance of the Company (or affiliate, division or operational unit of the Company) and shall be limited to the following: 
  
 (i) net earnings or net income (before or after taxes);

  
 (ii) basic or diluted earnings per share
(before or after taxes); 
  
 (iii) net revenue or
net revenue growth; 
  
 (iv) gross profit or
gross profit growth; 
  
 (v) net operating profit
(before or after taxes); 
  
 (vi) return measures
(including, but not limited to, return on assets, capital, invested capital, equity, or sales); 
  
 (vii) cash flow (including, but not limited to, operating cash flow, free cash flow, and cash flow return on capital); 
  
 (viii) earnings before or after taxes, interest,
depreciation and/or amortization; 
  
 (ix) gross
or operating margins; 
  
 (x) productivity
ratios; 
  
 (xi) share price (including, but not
limited to, growth measures and total stockholder return); 
  
 (xii) expense targets; 
  
 (xiii) margins; 
  
 (xiv) operating
efficiency; 
  
 (xv) objective measures of
customer satisfaction; 
  
 (xvi) working capital
targets; 
  
 (xvii) measures of economic value
added; 
  
 (xviii) inventory control; and

  
 (xix) enterprise value. 
  
 Any one or more of the Performance Criteria may be used on
an absolute or relative basis to measure the performance of the Company and/or an affiliate as a whole or any business unit of the Company and/or an affiliate or any combination thereof, as the Committee may deem appropriate, or any of the above
Performance Criteria as compared to the performance of a group of comparator companies, or published or special index that the Committee, in its sole discretion, deems appropriate, or the Company may select 
  

 5 

 Performance Criterion (xi) above as compared to various stock market indices. The Committee also has the
authority to provide for accelerated vesting of any award based on the achievement of Performance Goals pursuant to the Performance Criteria specified in this paragraph. To the extent required under Section 162(m) of the Code, the Committee shall,
within the first 90 days of a Performance Period (or, if longer or shorter, within the maximum period allowed under Section 162(m) of the Code), define in an objective fashion the manner of calculating the Performance Criteria it selects to use for
such Performance Period. In the event that applicable tax and/or securities laws change to permit Committee discretion to alter the governing Performance Criteria without obtaining stockholder approval of such changes, the Committee shall have sole
discretion to make such changes without obtaining stockholder approval. 
  
 (ee) “Performance Formula” shall mean, for a Performance Period, the one or more objective formulas applied against the relevant Performance Goal to determine, with regard to the Performance Compensation
Award of a particular Grantee, whether all, some portion but less than all, or none of the Performance Compensation Award has been earned for the Performance Period. 
  
 (ff) “Performance Goals” shall mean, for a Performance Period, the one or more goals established
by the Committee for the Performance Period based upon the Performance Criteria. The Committee is authorized at any time during the first 90 days of a Performance Period (or, if longer or shorter, within the maximum period allowed under Section
162(m) of the Code), or at any time thereafter to the extent allowed under Section 162(m) of the Code, in its sole and absolute discretion, to adjust or modify the calculation of a Performance Goal for such Performance Period in order to prevent the
dilution or enlargement of the rights of Grantees based on the following events: 
  
 (i) asset write-downs; 
  
 (ii) litigation or claim judgments or settlements; 
  
 (iii) the effect of changes in tax laws, accounting principles, or other laws or regulatory rules affecting
reported results; 
  
 (iv) any reorganization and
restructuring programs; 
  
 (v) extraordinary
nonrecurring items as described in Accounting Principles Board Opinion No. 30 (or any successor pronouncement thereto) and/or in management’s discussion and analysis of financial condition and results of operations appearing in the
Company’s annual report to stockholders for the applicable year; 
  
 (vi) acquisitions or divestitures; 
  
 (vii) any other specific unusual or nonrecurring events, or objectively determinable category thereof; 
  
 (viii) foreign exchange gains and losses; and 
  
 (ix) a change in the Company’s fiscal year. 
  

 6 

 (gg) “Performance Period” shall mean the one or more periods of time not less
than one (1) year in duration, as the Committee may select, over which the attainment of one or more Performance Goals will be measured for the purpose of determining a Grantee’s right to, and the payment of, a Performance Compensation Award.

  
 (hh) “Plan” means this IDT
Spectrum, Inc. 2005 Stock Option and Incentive Plan, as amended or restated from time to time. 
  
 (ii) “Related Entity” means any Parent, Subsidiary or any business, corporation, partnership, limited liability company or other
entity in which the Company, a Parent or a Subsidiary holds a substantial ownership interest, directly or indirectly. 
  
 (jj) “Related Entity Disposition” means the sale, distribution or other disposition by the Company of all or substantially all
of the Company’s interest in any Related Entity effected by a sale, merger or consolidation or other transaction involving such Related Entity or the sale of all or substantially all of the assets of such Related Entity. 
  
 (kk) “Restricted Period” shall have the meaning
set forth in Section 11(b) of the Plan. 
  
 (ll)
“Restricted Stock” means shares of Class B Common Stock issued under the Plan to a Grantee for such consideration, if any, and subject to such restrictions on transfer, rights of refusal, repurchase provisions, forfeiture provisions and
other terms and conditions as shall be determined by the Committee. 
  
 (mm) “Retirement” shall mean a Grantee’s retirement in accordance with the terms of any tax-qualified retirement plan maintained by the Company or any of its affiliates in which the Grantee
participates. 
  
 (nn) “Rule 16b-3”
shall mean Rule 16b-3, as from time to time in effect, promulgated under the Exchange Act, including any successor to such Rule. 
  
 (oo) “Stock Appreciation Right” shall mean the right, granted to a Grantee under Section 9 of the Plan, to be paid an amount
measured by the appreciation in the Fair Market Value of a share of Class B Common Stock from the date of grant to the date of exercise of the right, with payment to be made in cash or Class B Common Stock as specified in the award or determined by
the Committee. 
  
 (pp) “Subsidiary”
shall mean any company (other than the Company) in an unbroken chain of companies beginning with the Company if each of the companies other than the last company in the unbroken chain owns stock possessing fifty percent (50%) or more of the total
combined voting power of all classes of stock in one of the other companies in such chain. 
  
 (qq) “Tax Event” shall have the meaning set forth in Section 17 of the Plan. 
  
 (rr) “Ten Percent Stockholder” shall mean a
Grantee who at the time an Incentive Stock Option is granted, owns stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or any Parent or Subsidiary. 
  

 7 

 3. Administration. 
  
 (a) The Plan shall be administered by the Committee, the members of which shall be composed of (i) “non-employee directors”
under Rule 16b-3 and “outside directors” under Section 162(m) of the Code, or (ii) any other members of the Board. 
  
 (b) The Committee shall have the authority in its discretion, subject to and not inconsistent with the express provisions of the Plan, to
administer the Plan and to exercise all the powers and authorities either specifically granted to it under the Plan or necessary or advisable in the administration of the Plan, including, without limitation, the authority to grant Options, Stock
Appreciation Rights, Limited Rights, Deferred Stock Units and Restricted Stock; to determine which options shall constitute Incentive Stock Options and which Options shall constitute Nonqualified Stock Options; to determine which Options (if any)
shall be accompanied by Limited Rights; to determine the purchase price of the shares of Class B Common Stock covered by each Option; to determine the persons to whom, and the time or times at which awards shall be granted; to determine the number
of shares to be covered by each award; to interpret the Plan and any award under the Plan; to reconcile any inconsistent terms in the Plan or any award under the Plan; to prescribe, amend and rescind rules and regulations relating to the Plan; to
determine the terms and provisions of the Agreements (which need not be identical) and to cancel or suspend awards, as necessary; and to make all other determinations deemed necessary or advisable for the administration of the Plan. 
  
 (c) All decisions, determination and interpretations of the
Committee shall be final and binding on all Grantees of any awards under this Plan. No member of the Board or Committee shall be liable for any action taken or determination made in good faith with respect to the Plan or any award granted hereunder.

  
 (d) The Committee may delegate to one or more
executive officers of the Company the authority to (i) grant awards under the Plan to employees of and consultants to the Company and its Subsidiaries and Eligible Affiliate Individuals who are not officers or directors of the Company, (ii) execute
and deliver documents or take such other ministerial actions on behalf of the Committee with respect to awards and (iii) to make interpretations of the Plan. The grant of authority in this Section 3(d) shall be subject to such conditions and
limitations as may be determined by the Committee. If the Committee delegates authority to any such executive officer or executive officers of the Company pursuant to this Section 3(d), and such executive officer or executive officers grant awards
pursuant to such delegated authority, references in this Plan to the “Committee” as they relate to such awards shall be deemed to refer to such executive officer or executive officers, as applicable. 
  
 (e) In the event that the compensation committee of IDT
Corporation serves as the Committee for purposes of granting Performance Compensation Awards under the Plan, such grants shall be ratified by the Board. 
  

 8 

 4. Eligibility. 
  
 Awards may be granted to executive officers, employees, directors and consultants of the Company or of any Subsidiary and Eligible Affiliate Individuals.
In addition to any other awards granted to Non-Employee Directors hereunder, awards shall be granted to Non-Employee Directors pursuant to Section 14 of the Plan. In determining the persons to whom awards shall be granted and the number of shares to
be covered by each award, the Committee shall take into account the duties of the respective persons, their present and potential contributions to the success of the Company and such other factors as the Committee shall deem relevant in connection
with accomplishing the purposes of the Plan. 
  
 5. Stock. 
  
 (a) The maximum number of shares of Class B Common Stock
reserved for the grant of awards under the Plan shall be [NUMBER TO BE INSERTED UPON PRICING OF THE IPO TO BE 12% OF THE OUTSTANDING AFTER GIVING EFFECT TO THE IPO], subject to adjustment as provided in Section 12 of the Plan. Such shares may, in
whole or in part, be authorized but unissued shares or shares that shall have been or may be reacquired by the Company. 
  
 (b) If any outstanding award under the Plan should, for any reason expire, be canceled or be forfeited (other than in connection with the
exercise of a Stock Appreciation Right or a Limited Right), without having been exercised in full or vesting of shares or payment in respect of share deferral awards, the shares of Class B Common Stock allocable to the unexercised, canceled or
terminated portion of such award shall (unless the Plan shall have been terminated) become available for subsequent grants of awards under the Plan, unless otherwise determined by the Committee. 
  
 (c) In no event may a Grantee be granted during any calendar
year Options to acquire more than an aggregate of 300,000 shares of Class B Common Stock or more than 350,000 shares of Restricted Stock or Deferred Stock Units, subject to adjustment as provided in Section 12 of the Plan. 
  
 6. Terms and Conditions of Options. 
  
 (a) OPTION AGREEMENT. Each Option granted pursuant to the
Plan shall be evidenced by a written agreement between the Company and the Grantee (the “Option Agreement”), in such form and containing such terms and conditions as the Committee shall from time to time approve, which Option Agreement
shall comply with and be subject to the following terms and conditions, unless otherwise specifically provided in such Option Agreement. For purposes of interpreting this Section 6, a director’s service as a member of the Board or a
consultant’s service shall be deemed to be employment with the Company. 
  
 (b) NUMBER OF SHARES. Each Option Agreement shall state the number of shares of Class B Common Stock to which the Option relates. 
  

 9 

 (c) TYPE OF OPTION. Each Option Agreement shall specifically state that the Option
constitutes an Incentive Stock Option or a Nonqualified Stock Option. In the absence of such designation, the Option will be deemed to be a Nonqualified Stock Option. 
  
 (d) OPTION PRICE. Each Option Agreement shall state the Option Price, which, in the case of an Incentive
Stock Option, shall not be less than one hundred percent (100%) of the Fair Market Value of the shares of Class B Common Stock covered by the Option on the date of grant. The Option Price shall be subject to adjustment as provided in Section 12 of
the Plan. 
  
 (e) MEDIUM AND TIME OF PAYMENT. The
Option Price shall be paid in full, at the time of exercise, in cash or in shares of Class B Common Stock having a Fair Market Value equal to such Option Price or in a combination of cash and Class B Common Stock including a cashless exercise
procedure through a broker-dealer; provided, however, that in the case of an Incentive Stock Option, the medium of payment shall be determined at the time of grant and set forth in the applicable Option Agreement. 
  
 (f) TERM AND EXERCISABILITY OF OPTIONS. Each Option
Agreement shall provide the exercise schedule for the Option as determined by the Committee, provided that the Committee shall have the authority to accelerate the exercisability of any outstanding option at such time and under such circumstances as
it, in its sole discretion, deems appropriate. The exercise period will be ten (10) years from the date of the grant of the option unless otherwise determined by the Committee; provided, however, that in the case of an Incentive Stock Option, such
exercise period shall not exceed ten (10) years from the date of grant of such Option. The exercise period shall be subject to earlier termination as provided in Sections 6(g) and 6(h) of the Plan. An Option may be exercised, as to any or all full
shares of Class B Common Stock as to which the Option has become exercisable, by written notice delivered in person or by mail to the Company’s transfer agent or other administrator designated by the Company, specifying the number of shares of
Class B Common Stock with respect to which the Option is being exercised. 
  
 (g) TERMINATION. Except as provided in this Section 6(g) and in Section 6(h) of the Plan, an Option may not be exercised unless the Grantee is then in the employ of or maintaining a director or consultant relationship
with the Company or a Subsidiary thereof (or a company or a Parent or Subsidiary of such company issuing or assuming the Option in a transaction to which Section 424(a) of the Code applies), and unless the Grantee has remained in Continuous Service
with the Company or any Subsidiary since the date of grant of the Option. In the event that the employment or consultant relationship of a Grantee shall terminate (other than by reason of death, Disability or Retirement), all Options of such Grantee
that are exercisable at the time of Grantee’s termination may, unless earlier terminated in accordance with their terms, be exercised within 180 days after the date of termination (or such different period as the Committee shall prescribe).

  
 (h) DEATH, DISABILITY OR RETIREMENT OF
GRANTEE. If a Grantee shall die while employed by, or maintaining a director or consultant relationship with, the Company or a Subsidiary thereof, or within thirty (30) days after the date of termination of 
  

 10 

 such Grantee’s employment, director or consultant relationship (or within such different period as
the Committee may have provided pursuant to Section 6(g) of the Plan), or if the Grantee’s employment, director or consultant relationship shall terminate by reason of Disability, all Options theretofore granted to such Grantee (to the extent
otherwise exercisable) may, unless earlier terminated in accordance with their terms, be exercised by the Grantee or by the Grantee’s estate or by a person who acquired the right to exercise such Options by bequest or inheritance or otherwise
by result of death or Disability of the Grantee, at any time within 180 days after the death or Disability of the Grantee (or such different period as the Committee shall prescribe). In the event that an Option granted hereunder shall be exercised
by the legal representatives of a deceased or former Grantee, written notice of such exercise shall be accompanied by a certified copy of letters testamentary or equivalent proof of the right of such legal representative to exercise such Option. In
the event that the employment or consultant relationship of a Grantee shall terminate on account of such Grantee’s Retirement, all Options of such Grantee that are exercisable at the time of such Retirement may, unless earlier terminated in
accordance with their terms, be exercised at any time within one hundred eighty (180) days after the date of such Retirement (or such different period as the Committee shall prescribe). 
  
 (i) OTHER PROVISIONS. The Option Agreements evidencing awards under the Plan shall contain such other terms
and conditions not inconsistent with the Plan as the Committee may determine. 
  
 7. Nonqualified Stock Options. 
  
 Options
granted pursuant to this Section 7 are intended to constitute Nonqualified Stock Options and shall be subject only to the general terms and conditions specified in Section 6 of the Plan. 
  
 8. Incentive Stock Options. 
  
 Options granted pursuant to this Section 8 are intended to constitute Incentive Stock Options and shall be subject to the following special terms and
conditions, in addition to the general terms and conditions specified in Section 6 of the Plan: 
  
 (a) LIMITATION ON VALUE OF SHARES. To the extent that the aggregate Fair Market Value of shares of Class B Common Stock subject to Options
designated as Incentive Stock Options which become exercisable for the first time by a Grantee during any calendar year (under all plans of the Company or any Subsidiary) exceeds $100,000, such excess Options, to the extent of the shares covered
thereby in excess of the foregoing limitation, shall be treated as Nonqualified Stock Options. For this purpose, Incentive Stock Options shall be taken into account in the order in which they were granted, and the Fair Market Value of the shares of
Class B Common Stock shall be determined as of the date that the Option with respect to such shares was granted. 
  
 (b) TEN PERCENT STOCKHOLDER. In the case of an Incentive Stock Option granted to a Ten Percent Stockholder, (i) the Option Price shall not
be less than one hundred 
  

 11 

 ten percent (110%) of the Fair Market Value of the shares of Class B Common Stock on the date of grant of
such Incentive Stock Option, and (ii) the exercise period shall not exceed five (5) years from the date of grant of such Incentive Stock Option. 
  
 9. Stock Appreciation Rights. 
  
 The Committee shall have authority to grant a Stock Appreciation Right, either alone or in tandem with any Option. A Stock Appreciation Right granted in
tandem with an Option shall, except as provided in this Section 9 or as may be determined by the Committee, be subject to the same terms and conditions as the related Option. Each Stock Appreciation Right granted pursuant to the Plan shall be
evidenced by a written Agreement between the Company and the Grantee in such form as the Committee shall from time to time approve, which Agreement shall comply with and be subject to the following terms and conditions, unless otherwise specifically
provided in such Agreement: 
  
 (a) TIME OF
GRANT. A Stock Appreciation Right may be granted at such time or times as may be determined by the Committee. 
  
 (b) PAYMENT. A Stock Appreciation Right shall entitle the holder thereof, upon exercise of the Stock Appreciation Right or any portion
thereof, to receive payment of an amount computed pursuant to Section 9(d) of the Plan. 
  
 (c) EXERCISE. A Stock Appreciation Right shall be exercisable at such time or times and only to the extent determined by the Committee,
and will not be transferable. A Stock Appreciation Right granted in connection with an Incentive Stock Option shall be exercisable only if the Fair Market Value of a share of Class B Common Stock on the date of exercise exceeds the purchase price
specified in the related Incentive Stock Option. Unless otherwise approved by the Committee, no Grantee shall be permitted to exercise any Stock Appreciation Right during the period beginning two weeks prior to the end of each of the Company’s
fiscal quarters and ending on the second business day following the day on which the Company releases to the public a summary of its fiscal results for such period. 
  
 (d) AMOUNT PAYABLE. Upon the exercise of a Stock Appreciation Right, the Optionee shall be entitled to
receive an amount determined by multiplying (i) the excess of the Fair Market Value of a share of Class B Common Stock on the date of exercise of such Stock Appreciation Right over the exercise or other base price of the Stock Appreciation Right or,
if applicable, the Option Price of the related Option, by (ii) the number of shares of Class B Common Stock as to which such Stock Appreciation Right is being exercised. 
  

 12 

 (e) TREATMENT OF RELATED OPTIONS AND STOCK APPRECIATION RIGHTS UPON EXERCISE. Upon the
exercise of a Stock Appreciation Right, the related Option, if any, shall be canceled to the extent of the number of shares of Class B Common Stock as to which the Stock Appreciation Right is exercised. Upon the exercise or surrender of an option
granted in connection with a Stock Appreciation Right, the Stock Appreciation Right shall be canceled to the extent of the number of shares of Class B Common Stock as to which the Option is exercised or surrendered. 
  
 (f) METHOD OF EXERCISE. Stock Appreciation Rights shall be
exercised by a Grantee only by a written notice delivered to the Company in accordance with procedures specified by the Company from time to time. Such notice shall state the number of shares of Class B Common Stock with respect to which the Stock
Appreciation Right is being exercised. A Grantee may also be required to deliver to the Company the underlying Agreement evidencing the Stock Appreciation Right being exercised and any related Option Agreement so that a notation of such exercise may
be made thereon, and such Agreements shall then be returned to the Grantee. 
  
 (g) FORM OF PAYMENT. Payment of the amount determined under Section 9(d) of the Plan may be made solely in whole shares of Class B Common Stock in a number based upon their Fair Market Value on the date of exercise of
the Stock Appreciation Right or, alternatively, at the sole discretion of the Committee, solely in cash, or in a combination of cash and shares of Class B Common Stock as the Committee deems advisable. If the Committee decides to make full payment
in shares of Class B Common Stock and the amount payable results in a fractional share, payment for the fractional share will be made in cash. 
  
 10. Limited Stock Appreciation Rights. 
  
 The Committee shall have authority to grant a Limited Right, either alone or in tandem with any Option. Each Limited Right granted pursuant to the Plan
shall be evidenced by a written Agreement between the Company and the Grantee in such form as the Committee shall from time to time approve, which Agreement shall comply with and be subject to the following terms and conditions, unless otherwise
specifically provided in such Agreement: 
  
 (a)
TIME OF GRANT. A Limited Right may be granted at such time or times as may be determined by the Committee. 
  
 (b) EXERCISE. A Limited Right may be exercised only (i) during the ninety-day period following the occurrence of a Change in Control or
(ii) immediately prior to the effective date of a Corporate Transaction. A Limited Right shall be exercisable at such time or times and only to the extent determined by the Committee, and will not be transferable except to the extent any related
Option is transferable or as otherwise determined by the Committee. A Limited Right granted in connection with an Incentive Stock Option shall be exercisable only if the Fair Market Value of a share of Class B Common Stock on the date of exercise
exceeds the purchase price specified in the related Incentive Stock Option. 
  

 13 

 (c) AMOUNT PAYABLE. Upon the exercise of a Limited Right, the Grantee thereof shall
receive in cash whichever of the following amounts is applicable: 
  
 (i) in the case of the realization of Limited Rights by reason of an acquisition of common stock described in clause (i) of the definition of “Change in Control” (Section 2(c) above), an amount equal to the
Acquisition Spread as defined in Section 10(d)(ii) below; or 
  
 (ii) in the case of the realization of Limited Rights by reason of stockholder approval of an agreement or plan described in clause (i) of the definition of “Corporate Transaction” (Section 2(j) above), an
amount equal to the Merger Spread as defined in Section 10(d)(iv) below; or 
  
 (iii) in the case of the realization of Limited Rights by reason of the change in composition of the Board described in clause (ii) of the definition of “Change in Control” or stockholder approval of a plan
or agreement described in clause (ii) of the definition of Corporate Transaction, an amount equal to the Spread as defined in Section 10(d)(v) below. 
  
 Notwithstanding the foregoing provisions of this Section 10(c) (or unless otherwise approved by the Committee), in the case of a Limited Right granted in
respect of an Incentive Stock Option, the Grantee may not receive an amount in excess of the maximum amount that will enable such option to continue to qualify under the Code as an Incentive Stock Option. 
  
 (d) DETERMINATION OF AMOUNTS PAYABLE. The amounts to be paid
to a Grantee pursuant to Section 10 (c) shall be determined as follows: 
  
 (i) The term “Acquisition Price per Share” as used herein shall mean, with respect to the exercise of any Limited Right by reason of an acquisition of common stock described in clause (i) of the definition
of Change in Control, the greatest of (A) the highest price per share shown on the Statement on Schedule 13D or amendment thereto filed by the holder of 25% or more of the voting power of the Company that gives rise to the exercise of such Limited
Right, (B) the highest price paid in any tender or exchange offer which is in effect at any time during the ninety-day period ending on the date of exercise of the Limited Right, or (C) the highest Fair Market Value per share of common stock during
the ninety day period ending on the date the Limited Right is exercised. 
  
 (ii) The term “Acquisition Spread” as used herein shall mean an amount equal to the product computed by multiplying (A) the excess of (1) the Acquisition Price per Share over (2) the exercise or other base
price of the Limited Right or, if applicable, the Option Price per share of common stock at which the related Option is exercisable, by (B) the number of shares of common stock with respect to which such Limited Right is being exercised. 

 

 14 

 (iii) The term “Merger Price per Share” as used herein shall mean, with respect
to the exercise of any Limited Right by reason of stockholder approval of an agreement described in clause (i) of the definition of Corporate Transaction, the greatest of (A) the fixed or formula price for the acquisition of shares of common stock
specified in such agreement, if such fixed or formula price is determinable on the date on which such Limited Right is exercised, (B) the highest price paid in any tender or exchange offer which is in effect at any time during the ninety-day period
ending on the date of exercise of the Limited Right, (C) the highest Fair Market Value per share of common stock during the ninety-day period ending on the date on which such Limited Right is exercised. 
  
 (iv) The term “Merger Spread” as used herein shall
mean an amount equal to the product. computed by multiplying (A) the excess of (1) the Merger Price per Share over (2) the exercise or other base price of the Limited Right or, if applicable, the Option Price per share of common stock at which the
related Option is exercisable, by (B) the number of shares of common stock with respect to which such Limited Right is being exercised. 
  
 (v) The term “Spread” as used herein shall mean, with respect to the exercise of any Limited Right by reason of a change in the
composition of the Board described in clause (ii) of the definition of Change in Control or stockholder approval of a plan or agreement described in clause (ii) of the definition of Corporate Transaction, an amount equal to the product computed by
multiplying (i) the excess of (A) the greater of (1) the highest price paid in any tender or exchange offer which is in effect at any time during the ninety-day period ending on the date of exercise of the Limited Right or (2) the highest Fair
Market Value per share of common stock during the ninety day period ending on the date the Limited Right is exercised over (B) the exercise or other base price of the Limited Right or, if applicable, the Option Price per share of common stock at
which the related Option is exercisable, by (ii) the number of shares of common stock with respect to which the Limited Right is being exercised. 
  
 (e) TREATMENT OF RELATED OPTIONS AND LIMITED RIGHTS UPON EXERCISE. Upon the exercise of a Limited Right, the related Option, if any, shall
cease to be exercisable to the extent of the shares of Class B Common Stock with respect to which such Limited Right is exercised but shall be considered to have been exercised to that extent for purposes of determining the number of shares of Class
B Common Stock available for the grant of future awards pursuant to this Plan. Upon the exercise or termination of a related Option, if any, the Limited Right with respect to such related Option shall terminate to the extent of the shares of Class B
Common Stock with respect to which the related Option was exercised or terminated. 
  
 (f) METHOD OF EXERCISE. To exercise a Limited Right, the Grantee shall (i) deliver written notice to the Company specifying the number of
shares of Class B Common Stock with respect to which the Limited Right is being exercised, and (ii) if requested by the Committee, deliver to the Company the Agreement evidencing the Limited Rights being exercised and, if applicable, the Option
Agreement evidencing the related Option; the 
  

 15 

 Company shall endorse thereon a notation of such exercise and return such Agreements to the Grantee. The
date of exercise of a Limited Right that is validly exercised shall be deemed to be the date on which there shall have been delivered the instruments referred to in the first sentence of this paragraph (f). 
  
 11. Restricted Stock. 
  
 The Committee may award shares of Restricted Stock to any eligible employee, director or consultant of the Company or of any
Subsidiary or any Eligible Affiliate Individual. Each award of Restricted Stock under the Plan shall be evidenced by a written Agreement between the Company and the Grantee, in such form as the Committee shall from time to time approve, which
Agreement shall comply with and be subject to the following terms and conditions, unless otherwise specifically provided in such Agreement: 
  
 (a) NUMBER OF SHARES. Each Agreement shall state the number of shares of Restricted Stock to be subject to an award. 
  
 (b) RESTRICTIONS. Shares of Restricted Stock may not be
sold, assigned, transferred, pledged, hypothecated or otherwise disposed of, except by will or the laws of descent and distribution, for such period as the Committee shall determine from the date on which the award is granted (the “Restricted
Period”). The Committee may also impose such additional or alternative restrictions and conditions on the shares as it deems appropriate including, but not limited to, the satisfaction of performance criteria. Such performance criteria may
include sales, earnings before interest and taxes, return on investment, earnings per share, any combination of the foregoing or rate of growth of any of the foregoing, as determined by the Committee. The Company may, at its option, maintain issued
shares in book entry form. Certificates, if any, for shares of stock issued pursuant to Restricted Stock awards shall bear an appropriate legend referring to such restrictions, and any attempt to dispose of any such shares of stock in contravention
of such restrictions shall be null and void and without effect. During the Restricted Period, any such certificates shall be held in escrow by an escrow agent appointed by the Committee. In determining the Restricted Period of an award, the
Committee may provide that the foregoing restrictions shall lapse with respect to specified percentages of the awarded shares on successive anniversaries of the date of such award. 
  
 (c) FORFEITURE. Subject to such exceptions as may be determined by the Committee or as set forth in Section
14 below, if the Grantee’s Continuous Service with the Company or any Subsidiary (or with the Parent or a Subsidiary thereof in the case of an Eligible Affiliate Individual) shall terminate for any reason prior to the expiration of the
Restricted Period of an award, any shares remaining subject to restrictions (after taking into account the provisions of Subsection (e) of this Section 11) shall thereupon be forfeited by the Grantee and transferred to, and retired by, the Company
without cost to the Company, such Subsidiary or affiliated entity that employs such Grantee, and such shares shall become available for subsequent grants of awards under the Plan, unless otherwise determined by the Committee. 
  

 16 

 (d) OWNERSHIP. During the Restricted Period, the Grantee shall possess all incidents of
ownership of such shares, subject to Subsection (b) of this Section 11, including the right to receive dividends with respect to such shares and to vote such shares. 
  
 (e) ACCELERATED LAPSE OF RESTRICTIONS. Upon the occurrence of any of the events specified in Section 13 of
the Plan (and subject to the conditions set forth therein), all restrictions then outstanding on any shares of Restricted Stock awarded under the Plan shall lapse as of the applicable date set forth in Section 13. The Committee shall have the
authority (and the Agreement may so provide) to cancel all or any portion of any outstanding restrictions prior to the expiration of the Restricted Period with respect to any or all of the shares of Restricted Stock awarded on such terms and
conditions as the Committee shall deem appropriate. 
  
 11A. Deferred Stock
Units. 
  
 The Committee may award Deferred Stock Units to
any outside director, eligible employee or consultant of the Company or of any Subsidiary or to any Eligible Affiliate Individual. Each award of Deferred Stock Units under the Plan shall be evidenced by a written Agreement between the Company and
the Grantee, in such form as the Committee shall from time to time approve, which Agreement shall comply with and be subject to the following terms and conditions, unless otherwise specifically provided in such Agreement: 
  
 (a) NUMBER OF SHARES. Each Agreement for Deferred Stock
Units shall state the number of shares of Class B Common Stock to be subject to an award. 
  
 (b) RESTRICTIONS. Deferred Stock Units may not be sold, assigned, transferred, pledged, hypothecated or otherwise disposed of, except by
will or the laws of descent and distribution, until shares of Class B Common Stock are payable with respect to an award. The Committee may impose such vesting restrictions and conditions on the payment of shares as it deems appropriate including the
satisfaction of performance criteria. Such performance criteria may include sales, earnings before interest and taxes, return on investment, earnings per share, any combination of the foregoing or rate of growth of any of the foregoing, as
determined by the Committee. 
  
 (c) FORFEITURE.
Subject to such exceptions as may be determined by the Committee, if the Grantee’s continuous employment or consulting relationship with the Company or any Subsidiary shall terminate for any reason prior to the Grantee becoming fully vested in
the award, then the Grantee’s rights under any unvested Deferred Stock Units shall be forfeited without cost to the Company or such Subsidiary. 
  
 (d) OWNERSHIP. Until shares are delivered with respect to Deferred Stock Units, the Grantee shall not possess any incidents of ownership
of such shares, including the right to receive dividends with respect to such shares and to vote such shares. 
  

 17 

 12. Effect of Certain Changes. 
  
 (a) ADJUSTMENTS UPON CHANGES IN CAPITALIZATION. In the event of any extraordinary dividend, stock dividend,
recapitalization, merger, consolidation, stock split, warrant or rights issuance, or combination or exchange of such shares, or other similar transactions, the Committee shall equitably adjust (i) the maximum number of Options or shares of
Restricted Stock that may be awarded to a Grantee in any calendar year (as provided in Section 5 hereof), (ii) the number of shares of Class B Common Stock available for awards under the Plan, (iii) the number and/or kind of shares covered by
outstanding awards and (iv) the price per share of Options or the applicable market value of Stock Appreciation Rights or Limited Rights, in each such case so as to reflect such event and preserve the value of such awards; provided, however, that
any fractional shares resulting from such adjustment shall be eliminated. 
  
 (b) CHANGE IN CLASS B COMMON STOCK. In the event of a change in the Class B Common Stock as presently constituted that is limited to a change of all of its authorized shares of Class B Common Stock into the same
number of shares with a different par value or without par value, the shares resulting from any such change shall be deemed to be the Class B Common Stock within the meaning of the Plan. 
  
 13. Corporate Transaction; Change in Control; Related Entity Disposition. 
  
 (a) CORPORATE TRANSACTION. In the event of a Corporate
Transaction, each award which is at the time outstanding under the Plan shall automatically become fully vested and exercisable and, in the case of an award of Restricted Stock, shall be released from any restrictions on transfer (except with regard
to the Insider Trading Policy and such other agreements between the Grantee and the Company) and repurchase or forfeiture rights, immediately prior to the specified effective date of such Corporate Transaction. Effective upon the consummation of the
Corporate Transaction, all outstanding awards of Options, Stock Appreciation Rights and Limited Rights under the Plan shall terminate. However, all such awards shall not terminate if the awards are, in connection with the Corporate Transaction,
assumed by the successor corporation or Parent thereof. 
  
 (b) CHANGE IN CONTROL. In the event of a Change in Control (other than a Change in Control which is also a Corporate Transaction), each award which is at the time outstanding under the Plan shall automatically become
fully vested and exercisable and, in the case of an award of Restricted Stock, shall be released from any restrictions on transfer and repurchase or forfeiture rights, immediately prior to the specified effective date of such Change in Control.

  
 (c) RELATED ENTITY DISPOSITION. The
Continuous Service of each Grantee (who is primarily engaged in service to a Related Entity at the time it is involved in a Related Entity Disposition) shall terminate effective upon the consummation of such Related Entity Disposition, and each
outstanding award of such Grantee under the Plan shall become fully vested and exercisable and, in the case of an award of Restricted Stock, shall be released from any restrictions on transfer (except with regard to the Insider Trading Policy and
such other agreements between the Grantee and the Company). The Continuous 
  

 18 

 Service of a Grantee shall not be deemed to terminate (and each outstanding award of such Grantee under
the Plan shall not become fully vested and exercisable and, in the case of an award of Restricted Stock, shall not be released from any restrictions on transfer) if (i) a Related Entity Disposition involves the spin-off of a Related Entity, for so
long as such Grantee continues to remain in the service of such entity that constituted the Related Entity immediately prior to the consummation of such Related Entity Disposition (“SpinCo”) in any capacity of officer, employee, director
or consultant or (ii) an outstanding award is assumed by the surviving corporation (whether SpinCo or otherwise) or its parent entity in connection with a Related Entity Disposition. 
  
 (d) SUBSTITUTE AWARDS. The Committee may grant awards under the Plan in substitution of stock-based
incentive awards held by employees, consultants or directors of another entity who become employees, consultants or directors of the Company or any Subsidiary by reason of a merger or consolidation of such entity with the Company or any Subsidiary,
or the acquisition by the Company or a Subsidiary of property or equity of such entity, upon such terms and conditions as the Committee may determine, and such awards shall not count against the share limitation set forth in Section 5 of the Plan.

  
 14. Non-Employee Director Options and Restricted Stock. 
  
 The provisions of this Section 14 shall apply only to certain grants of
Options and Restricted Stock to Non-Employee Directors, as provided below. Except as set forth in this Section 14, the other provisions of the Plan shall apply to grants of Options and Restricted Stock to Non-Employee Directors to the extent not
inconsistent with this Section. For purposes of interpreting Section 6 of the Plan and this Section 14, a Non-Employee Director’s service as a member of the Board or the board of directors of any Subsidiary shall be deemed to be employment with
the Company. 
  
 (a) GENERAL. Non-Employee
Directors shall receive Options and Restricted Stock in accordance with this Section 14. Options and Restricted Stock granted pursuant to this Section 14 shall be subject to the terms of such section and shall not be subject to discretionary
acceleration of vesting by the Committee. 
  
 (b)
INITIAL GRANTS OF OPTIONS AND RESTRICTED STOCK. A Non-Employee Director who first becomes a Non-Employee Director following the Initial Public Offering shall receive (i) 5,000 fully vested shares of Restricted Stock and (ii) a pro-rata amount (based
on projected quarters of service to the following Non-Employee Director Grant Date) of a Non-Employee Director Annual Grant, each on his date of appointment as a Non-Employee Director. 
  
 (c) ANNUAL GRANTS OF OPTIONS AND RESTRICTED STOCK. Subject to Section 14(d), on each Non-Employee Director
Grant Date, each Non-Employee Director shall receive a Non-Employee Director Annual Grant. 
  
 (d) GRANTS OF OPTIONS AND RESTRICTED STOCK ON INITIAL PUBLIC OFFERING. Upon the consummation of the Initial Public Offering, each
Non-Employee Director shall receive (i) 5,000 shares of Restricted Stock that shall vest six months after 
  

 19 

 the closing date of the Initial Public Offering and (ii) a Non-Employee Director Annual Grant. Any
Non-Employee Director who receives Options and Restricted Stock pursuant to this Section 14(d) shall not be eligible to also receive Options and Restricted Stock pursuant to Section 14(b). If not already vested, the shares of Restricted Stock
granted pursuant to clause (i) of this subsection (d) shall vest immediately upon the removal of the Non-Employee Director from the Board of Directors of the Company for any reason other than by resignation of such Non-Employee Director. 

 
 15. Performance Compensation Awards 
  
 (a) General. The Committee shall have the authority, at the
time of grant of any award described in Sections 7, 8, 9, 10, 11 and 11A (other than Options and Stock Appreciation Rights granted with an exercise price or grant price, as the case may be, equal to or greater than the Fair Market Value per share of
Stock on the date of grant), to designate such award as a Performance Compensation Award in order to qualify such award as “performance-based compensation” under Section 162(m) of the Code. The Committee shall have the authority to grant
cash bonuses under the Plan with the intent that such bonuses shall qualify for the exemption from Section 162(m) of the Code provided pursuant to Treasury Regulation Section 1.162-27(f)(1), for the reliance period described in Treasury Regulation
Section 1.162-27(f)(2). In addition, the Committee shall have the authority to make an award of a cash bonus to any Grantee and designate such award as a Performance Compensation Award in order to qualify such award as “performance based
compensation” under Section 162(m). 
  
 (b)
Eligibility. The Committee will, in its sole discretion, designate which Grantees will be eligible to receive Performance Compensation Awards in respect of such Performance Period. However, designation of a Grantee eligible to receive an award
hereunder for a Performance Period shall not in any manner entitle the Grantee to receive payment in respect of any Performance Compensation Award for such Performance Period. The determination as to whether or not such Grantee becomes entitled to
payment in respect of any Performance Compensation Award shall be decided solely in accordance with the provisions of this Section 15. Moreover, designation of a Grantee eligible to receive an award hereunder for a particular Performance Period
shall not require designation of such Grantee eligible to receive an award hereunder in any subsequent Performance Period and designation of one person as a Grantee eligible to receive an award hereunder shall not require designation of any other
person as a Grantee eligible to receive an award hereunder in such period or in any other period. 
  
 (c) Discretion of Committee with Respect to Performance Compensation Awards. With regard to a particular Performance Period, the Committee
shall have full discretion to select the length of such Performance Period (provided any such Performance Period shall be not less than one (1) year in duration), the type(s) of Performance Compensation Awards to be issued, the Performance Criteria
that will be used to establish the Performance Goal(s), the kind(s) and/or level(s) of the Performance Goals(s) that is(are) to apply to the Company and the Performance Formula. Within the first 90 days of a Performance Period (or, if longer or
shorter, within the maximum period allowed under Section 162(m) of the Code), the Committee shall, with regard to the Performance 
  

 20 

 Compensation Awards to be issued for such Performance Period, exercise its discretion with respect to
each of the matters enumerated in the immediately preceding sentence of this Section 15(c) and record the same in writing. 
  
 (d) Payment of Performance Compensation Awards 
  

(i) Condition to Receipt of Payment. Unless otherwise provided in the applicable award agreement, a Grantee must be employed by the
Company on the last day of a Performance Period to be eligible for payment in respect of a Performance Compensation Award for such Performance Period. 
  
 (ii) Limitation. A Grantee shall be eligible to receive payment in respect of a Performance Compensation Award only to the extent that:
(A) the Performance Goals for such period are achieved; and (B) the Performance Formula as applied against such Performance Goals determines that all or some portion of such Grantee’s Performance Award has been earned for the Performance
Period. 
  
 (iii) Certification. Following the
completion of a Performance Period, the Committee shall review and certify in writing whether, and to what extent, the Performance Goals for the Performance Period have been achieved and, if so, calculate and certify in writing that amount of the
Performance Compensation Awards earned for the period based upon the Performance Formula. The Committee shall then determine the actual size of each Grantee’s Performance Compensation Award for the Performance Period and, in so doing, may apply
Negative Discretion in accordance with Section 15(d)(iv) hereof, if and when it deems appropriate. 
  
 (iv) Use of Discretion. In determining the actual size of an individual Performance Award for a Performance Period, the Committee may
reduce or eliminate the amount of the Performance Compensation Award earned under the Performance Formula in the Performance Period through the use of Negative Discretion if, in its sole judgment, such reduction or elimination is appropriate. The
Committee shall not have the discretion to (a) grant or provide payment in respect of Performance Compensation Awards for a Performance Period if the Performance Goals for such Performance Period have not been attained; or (b) increase a Performance
Compensation Award above the maximum amount payable under Section 5(c) or Section 15(d)(vi) of the Plan. 
  
 (v) Timing of Award Payments. Performance Compensation Awards granted for a Performance Period shall be paid to Grantees as soon as
administratively practicable following completion of the certifications required by this Section 15. 
  
 (vi) Maximum Award Payable. Notwithstanding any provision contained in this Plan to the contrary, the maximum Performance Compensation
Award payable to any one Grantee under the Plan for a Performance Period is 300,000 shares of Stock or, in the event such Performance Compensation Award is paid in cash, the equivalent cash value thereof on the first or last day of the Performance
Period to which such award relates, as determined by the Committee. The maximum amount that can be paid in any 
  

 21 

 calendar year to any Grantee pursuant to a cash bonus award described in the last sentence of Section
15(a) shall be $2,000,000. Furthermore, any Performance Compensation Award that has been deferred shall not (between the date as of which the award is deferred and the payment date) increase (A) with respect to a Performance Compensation Award that
is payable in cash, by a measuring factor for each fiscal year greater than a reasonable rate of interest set by the Committee or (B) with respect to a Performance Compensation Award that is payable in shares of Stock, by an amount greater than the
appreciation of a share of Stock from the date such award is deferred to the payment date. 
  
 16. Period During which Awards May Be Granted. 
  
 Awards may be granted pursuant to the Plan from time to time within a period of ten (10) years from November 2, 2005, the date the Board initially adopted the Plan. No awards shall be effective prior to the approval
of the Plan by a majority of the Company’s stockholders. 
  
 17.
Transferability of Awards. 
  
 (a) Incentive
Stock Options and Stock Appreciation Rights may not be sold, pledged, assigned, hypothecated, transferred or disposed of in any manner other than by the laws of descent and distribution and may be exercised, during the lifetime of the Grantee, only
by the Grantee or his or her guardian or legal representative. 
  
 (b) Nonqualified Stock Options shall be transferable in the manner and to the extent acceptable to the Committee, as evidenced by a writing signed by the Company and the Grantee. Nonqualified Stock Options (together
with any Stock Appreciation Rights or Limited Rights related thereto) shall be transferable by a Grantee as a gift to the Grantee’s “family members” (as defined in Form S-8) under such terms and conditions as may be established by the
Committee; provided that the Grantee receives no consideration for the transfer. Notwithstanding the transfer by a Grantee of a Nonqualified Stock Option, the transferred Nonqualified Stock Option shall continue to be subject to the same terms and
conditions as were applicable to the Nonqualified Stock Option immediately before the transfer (including, without limitation, the Insider Trading Policy) and the Grantee will continue to remain subject to the withholding tax requirements set forth
in Section 17 hereof. 
  
 (c) The terms of any
award granted under the Plan, including the transferability of any such award, shall be binding upon the executors, administrators, heirs and successors of the Grantee. 
  
 (d) Restricted Stock shall remain subject to the Insider Trading Policy after the Restricted Period.

  
 18. Agreement by Grantee regarding Withholding Taxes. 
  
 If the Committee shall so require, as a condition of exercise of an Option,
Stock Appreciation Right or Limited Right, the expiration of a Restricted Period or payment of a 
  

 22 

 Deferred Stock Unit (each, a “Tax Event”), each Grantee shall agree that no later than the date of the Tax
Event, the Grantee will pay to the Company or make arrangements satisfactory to the Committee regarding payment of any federal, state or local taxes of any kind required by law to be withheld upon the Tax Event. Unless determined otherwise by the
Committee, a Grantee shall permit, to the extent permitted or required by law, the Company to withhold federal, state and local taxes of any kind required by law to be withheld upon the Tax Event from any payment of any kind due to the Grantee.
Unless otherwise determined by the Committee, any such above-described withholding obligation may, in the discretion of the Company, be satisfied by the withholding by the Company or delivery to the Company of Class B Common Stock. 
  
 19. Rights as a Stockholder. 
  
 Except as provided in Section 11(d) of the Plan, a Grantee or a transferee
of an award shall have no rights as a stockholder with respect to any shares covered by the award until the date of the issuance of such shares to him or her. No adjustment shall be made for dividends (ordinary or extraordinary, whether in cash,
securities or other property) or distribution of other rights for which the record date is prior to the date such shares are issued, except as provided in Section 12(a) of the Plan. 
  
 20. No Rights to Employment; Forfeiture of Gains. 
  
 Nothing in the Plan or in any award granted or Agreement entered into pursuant hereto shall confer upon any Grantee the
right to continue as a director of, in the employ of, or in a consultant relationship with, the Company, any Subsidiary, any Parent or Subsidiary of a Parent, or to be entitled to any remuneration or benefits not set forth in the Plan or such
Agreement or to interfere with or limit in any way the right of any such entity to terminate such Grantee’s employment or consulting relationship. Awards granted under the Plan shall not be affected by any change in duties or position of a
Grantee as long as such Grantee continues to be employed by, or in a consultant relationship with, or a director of the Company, any Subsidiary, any Parent or any Subsidiary of a Parent. The Agreement for any award under the Plan may require the
Grantee to pay to the Company any financial gain realized from the prior exercise, vesting or payment of the award in the event that the Grantee engages in conduct that violates any non-compete, non-solicitation or non-disclosure obligation of the
Grantee under any agreement with the Company, any Subsidiary, any Parent or any Subsidiary of a Parent, including, without limitation, any such obligations provided in the Agreement. 
  
 21. Beneficiary. 
  
 A Grantee may file with the Committee a written designation of a beneficiary on such form as may be prescribed by the Committee and may, from time to
time, amend or revoke such designation. If no designated beneficiary survives the Grantee, the executor or administrator of the Grantee’s estate shall be deemed to be the Grantee’s beneficiary. 
  

 23 

 22. Authorized Share Approval; Amendment and Termination of the Plan. 
  
 (a) AUTHORIZED SHARE APPROVAL. The Plan initially became
effective when adopted by the Board on November 2, 2005, subject to approval by the shareholders of the Company and the Compensation Committee of the Parent’s Board of Directors, and shall terminate on the tenth anniversary of such date. The
Plan was ratified by the Company’s stockholders as of                     , with [NUMBER TO BA FILLED IN ON PRICING] shares of Class B
Common Stock authorized for awards under the Plan. 
  
 (b) AMENDMENT AND TERMINATION OF THE PLAN. The Board at any time and from time to time may suspend, terminate, modify or amend the Plan; however, unless otherwise determined by the Board, an amendment that requires stockholder approval in
order for the Plan to continue to comply with any law, regulation or stock exchange requirement shall not be effective unless approved by the requisite vote of stockholders. Except as provided in Section 12(a) of the Plan, no suspension,
termination, modification or amendment of the Plan may adversely affect any award previously granted, unless the written consent of the Grantee is obtained. 
  
 23. Governing Law. 
  
 The Plan and all determinations made and actions taken pursuant hereto shall be governed by the laws of the State of Delaware. 
  

 24 

 IDT SPECTRUM, INC. 
 2005 STOCK OPTION AND INCENTIVE PLAN 
  
 FORM OF RESTRICTED STOCK AGREEMENT 
  
 [Name of Employee, Consultant or Outside Director] 
 IDT Spectrum, Inc. 
 520 Broad Street 
 Newark, NJ 07102 
  
 Dear
                    : 
  
 This Agreement confirms the grant of Restricted Stock to you effective as of
                     (the “Effective Date”) under the IDT Spectrum, Inc. 2005 Stock Option and Incentive Plan, as Amended and
Restated (the “Plan”), upon the terms and conditions described herein. 
  
 1. Grant of Restricted Stock. Pursuant to action of the Compensation Committee of the Board of Directors under the Plan, IDT Spectrum, Inc. (the “Company”) hereby grants you “Restricted
Stock” under the Plan for an aggregate of                      shares of the Company’s Class B Common Stock (the
“Restricted Shares”), subject to the terms and conditions hereinafter set forth. This grant is a matter of separate inducement and is not in lieu of salary or other compensation for your services. 
  
 2. Closing. The transfer of the Restricted Shares (the
“Closing”) shall occur simultaneously with the execution of this Agreement. Concurrently with the execution of this Agreement, the Company may issue one or more certificates representing the Restricted Shares (which shall be held by the
Company pursuant to paragraph 6 hereof until the applicable Restrictions (as defined below) have lapsed). 
  
 3. Restrictions. The Restricted Shares are being awarded to you subject to the transfer and forfeiture restrictions set forth in paragraph 3 below
(the “Restrictions”), which shall lapse after the expiration of the vesting periods described in paragraph 4 below, and the tax withholding requirements set forth in paragraph 8 below. 
  
 (a) Transfer. You may not directly or indirectly, by operation of law
or otherwise, voluntarily or involuntarily, alienate, attach, sell, assign, pledge, encumber, charge or otherwise transfer any of the Restricted Shares still subject to Restrictions without the written consent of the Company, except for such
assignments as are allowed under Section 11(b) of the Plan. 
  
 (b) Forfeiture. Subject to exceptions as may be determined by the Compensation Committee of the Board of Directors, if your continuous employment or consulting relationship with the Company or any majority-owned subsidiary of the
Company 

 shall terminate for any reason, all Restricted Shares for which the Restrictions have not lapsed at such time shall be
returned to or canceled by the Company, and shall be deemed to have been forfeited by you. Upon a forfeiture of your Restricted Shares, the Company will not be obligated to pay you any consideration whatsoever for the forfeited Restricted Shares.

  
 4. Lapse of Restrictions. 
  
 (a) The Restrictions shall lapse to the extent the Restricted Shares have
become vested, as follows:              Restricted Shares on             ;
             Restricted Shares on             ; and the remaining
             Restricted Shares on             . 
  
 (b) All of the Restricted Shares shall become vested and the Restrictions shall lapse with respect to any unvested
Restricted Shares upon a Change in Control (as defined in the Plan). 
  
 (c) To the extent the Restrictions shall have lapsed under this paragraph 4 with respect to any portion of the Restricted Shares subject to this Award, those shares (“Vested Shares”) will be free of the terms and conditions of
this Agreement except those terms and conditions contained in paragraph 8. 
  
 5. Adjustments. The terms “Restricted Shares” and “Vested Shares” shall include any shares or other securities that you receive or become entitled to receive under Section 11 of the
Plan as a result of your ownership of the original Restricted Shares. 
  
 6. Custody. Any certificates representing the Restricted Shares (other than Vested Shares) shall be deposited with the Company. The Company is hereby authorized to effectuate the transfer into its name of all certificates
representing the Restricted Shares which are forfeited to the Company pursuant to either paragraph 3 or paragraph 8 hereof. 
  
 7. Voting and Other Rights. 
  
 (a) Upon the registration of the Restricted Shares in your name, you shall have all of the rights and status as a stockholder of the Company with respect
to the Restricted Shares, including the right to vote such shares and to receive dividends or other distributions thereon. All such rights and status as a stockholder of the Company with respect to the Restricted Shares shall terminate if the
Restricted Shares are forfeited pursuant to either paragraph 3 above or paragraph 8 below. 
  
 (b) The grant of the Restricted Shares to you does not confer upon you any right to continue in the employ of the Company. 
  
 8. Withholding Taxes. The award or other transfer of the Restricted Shares, and the lapse of Restrictions on the Restricted Shares, shall be
conditioned further on any applicable withholding taxes being paid by you. You hereby authorize the Company to sell, or otherwise take possession of via forfeiture by you or otherwise, such number of the Restricted Shares as the Company deems
necessary to satisfy any withholding tax requirement of you. 
  

 2 

 9. Incorporation of Plan Provisions. This Agreement is made pursuant to the Plan and is subject to
all the terms and provisions of the Plan as if the same were fully set forth herein. Capitalized terms not otherwise defined herein shall have the meanings set forth for such terms in the Plan. 
  
 10. Stock Power. At the Company’s request, you hereby agree to
execute any document, including a stock power endorsed in blank, that is necessary to comply with the terms of this Agreement. 
  
 11. Miscellaneous. This Agreement: (a) shall be binding upon and inure to the benefit of any successor of the Company and your successors,
assigns and estate, including your executors, administrators and trustees; (b) shall be governed by the laws of the State of Delaware and any applicable laws of the United States; and (c) may not be amended except in writing and signed by
both parties hereto. 
  
 To confirm your acceptance of the
foregoing, please sign and date below under “Accepted and Agreed” and return one copy of this Agreement to the Human Resources Department, attn:
                , IDT Spectrum, Inc., 520 Broad Street, Newark, NJ 07102. 
  

			
	 IDT SPECTRUM, INC.

		
	 By:
	 	  

	 Name:
	 	 Bruce E. Walenczyk

	 Title:
	 	 Chief Financial Officer

  

	
	 ACCEPTED AND AGREED:

	
	  

 [Name of Employee, Director or Consultant]

	
	 Date:
                    

  

 3 

 IDT SPECTRUM, INC. 
 2005 STOCK OPTION AND INCENTIVE PLAN 
  
 FORM OF STOCK OPTION AGREEMENT 
 FOR CLASS B COMMON STOCK 
  
 This STOCK OPTION AGREEMENT (this “Agreement”) is entered into as
of «OPTION_DATE», by and between IDT Spectrum, Inc., a Delaware corporation (the “Company”), and «FIRSTNAME» «LASTNAME» (the “Employee”). 
  
 WHEREAS, the Company desires to grant to the Employee options to acquire an
aggregate of «OPTIONS» shares of Class B Common Stock of the Company, par value $.01 per share (the “Stock”), on the terms set forth herein. 
  
 NOW, THEREFORE, the parties hereby agree as follows: 
  
 1. Definitions. Capitalized terms are defined herein. 
  
 2. Grant of Options. The Employee is hereby granted non-qualified stock options (the “Options”) to purchase
an aggregate of «OPTIONS» shares of Stock, pursuant to the terms of this Agreement. 
  
 3. Term. The term of the Options (the “Option Term”) shall be for ten (10) years commencing on «OPTION_DATE», and terminating
on «TERMINATION_DATE». 
  
 4. Option Price. The
initial exercise price per share of the Options shall be «OPTION_PRICE», subject to adjustment as provided herein. 
  
 5. Conditions to Exercisability. The Options shall vest and become exercisable as follows: «vesting_for_Mini», if the Employee
continues to be employed by or acts as a Consultant to or a Director of the Company or any of its subsidiaries on such date or dates. 
  
 6. Method of Exercise. An Option may be exercised, as to any or all full shares of the Stock as to which the Option has become exercisable, by
written notice delivered in person or by mail to the Company’s transfer agent or other administrator designated by the Company, specifying the number of shares of Stock with respect to which the Option is being exercised. 
  
 7. Medium and Time of Payment. The Option Price shall be paid in full,
at the time of exercise, in cash or in shares of Stock (whether then owned by the Employee or issuable upon exercise of the Option) having a Fair Market Value equal to such Option Price or in a combination of cash and Stock, including a cashless
exercise procedure through a broker dealer. 
  
 8.
Termination. Except as provided in this Section 8 and in Section 9 hereof, an Option may not be exercised unless the Employee is then in the employ of or maintaining a director or consultant relationship with the Company or a Subsidiary
thereof (or a company or a Parent or Subsidiary of such company issuing or assuming the Option in a transaction to which Section 424(a) of the Code applies), and unless the Employee has remained continuously so employed or in the director or
consultant relationship since the date of grant of the Option. In the event that the employment or consultant relationship of a Employee shall terminate (other than by reason of death, Disability or Retirement), all Options of such Employee that are
exercisable at the time of Employee’s termination may, unless earlier terminated in accordance with their terms, be exercised within one hundred eighty (180) days after the date of such termination (or such different period as the Compensation
Committee of the Company (the “Committee”) shall prescribe). 
  
 9. Death, Disability or Retirement of Employee. If the Employee shall die while employed by, or maintaining a director or consultant relationship with, the Company or a Subsidiary thereof, or within thirty (30) days after the date of
termination of such Employee’s employment, director or consultant relationship (or within 
  

 1 

 such different period as the Committee may have provided pursuant to Section 8 hereof), or if the Employee’s
employment, director or consultant relationship shall terminate by reason of Disability, all Options theretofore granted to the Employee (to the extent otherwise exercisable) may, unless earlier terminated in accordance with their terms, be
exercised by the Employee or by the Employee’s estate or by a person who acquired the right to exercise such Options by bequest or inheritance or otherwise by result of death or Disability of the Employee, at any time within 180 days after the
death or Disability of the Employee (or such different period as the Committee shall prescribe). In the event that an Option granted hereunder shall be exercised by the legal representatives of a deceased or former Employee, written notice of such
exercise shall be accompanied by a certified copy of letters testamentary or equivalent proof of the right of such legal representative to exercise such Option. In the event that the employment or consultant relationship of a Employee shall
terminate on account of such Employee’s Retirement, all Options of the Employee that are exercisable at the time of such Retirement may, unless earlier terminated in accordance with their terms, be exercised at any time within one hundred
eighty (180) days after the date of such Retirement (or such different period as the Committee shall prescribe). 
  
 10. Withholding Taxes. No later than the date of exercise of an Option, the Employee will pay to the Company or make arrangements satisfactory to
the Company regarding payment of any federal, state or local taxes of any kind required by law to be withheld upon the exercise of an Option. Alternatively, solely to the extent permitted or required by law, the Company may deduct the amount of any
federal, state or local taxes of any kind required by law to be withheld upon the exercise of an Option from any payment of any kind due to the Employee. The withholding obligation may be satisfied by the withholding or delivery of the Stock.

  
 11. Terms Incorporated by Reference Herein. Each of the
terms of the Company’s 2005 Stock Option and Incentive Plan, as Amended and Restated (“Plan”), as in effect as of the date hereof, shall be deemed to govern the Options granted hereunder, as if the Options had been granted pursuant to
the Plan. To the extent that there is any inconsistency between this Agreement and the terms of the Plan, the terms of this Agreement shall govern. 
  
 12. Transferability of Options. Stock Options may not be sold, pledged, assigned, hypothecated, transferred or disposed of in any manner other than
to an immediate family member of Employee or to a trust or other estate planning entity created for the benefit of the Employee or one or more members of his immediate family as provided for under the Plan, provided that, in all cases, such
transferee executes a written consent to be bound by the terms of this Agreement. 
  
 13. Entire Agreement. This Agreement contains all of the understandings between the parties hereto pertaining to the matters referred to herein, and supersedes all undertakings and agreements, whether oral or
in writing, previously entered into by them with respect thereto. The Employee represents that, in executing this Agreement, he does not rely and has not relied upon any representation or statement not set forth herein made by the Company with
regard to the subject matter of this Agreement or otherwise. 
  
 14. Amendment or Modification, Waiver. No provision of this Agreement may be amended or waived unless such amendment or waiver is agreed to in writing, signed by the Employee and by a duly authorized officer of the Company. No waiver
by any party hereto of any breach by another party hereto of any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of a similar of dissimilar condition or provision at the same time, any prior time
or any subsequent time. 
  
 15. Notices. Each notice
relating to this Agreement shall be in writing and delivered in person or by certified mail to the proper address. All notices to the Company shall be addressed to it at: 
  
 IDT Spectrum, Inc. 
 520 Broad Street 
 Newark, New Jersey 07102 
 Attention: Options Administrator 
  
  

 2 

 All notices to the Employee or other person or persons then entitled to exercise the Options shall be
addressed to the Employee or such other person or persons at: 
  
 __________________________________________________________________ 
  
 __________________________________________________________________ 
  
 __________________________________________________________________ 
  
 __________________________________________________________________ 
  

Anyone to whom a notice may be given under this Agreement may designate a new address by notice to such effect. 
  
 16. Severability. If any provision of this Agreement or the
application of any such provision to any party or circumstances shall be determined by any court of competent jurisdiction to be invalid and unenforceable to any extent, the remainder of this Agreement or the application of such provision to such
person or circumstances other than those to which it is so determined to be invalid and unenforceable, shall not be affected thereby, and each provision hereof shall be validated and shall be enforced to the fullest extent permitted by law.

  
 17. Governing Law. This Agreement shall be construed
and governed in accordance with the laws of the state of Delaware, without regard to principles of conflicts of laws. 
  
 18. Headings. All descriptive headings of sections and paragraphs in this Agreement are intended solely for convenience, and no provision of this
Agreement is to be construed by reference to the heading of any section or paragraph. 
  
 19. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original but both of which together shall constitute one and the same instrument. 
  
 IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by
an authorized officer and the Employee has hereunto set his hand all as of the date first above written. 
  

			
	IDT Spectrum, Inc.
		
	By:	 	  

	Name:	 	Bruce Walenczyk
	Title:	 	Chief Financial Officer
		
	By:	 	  

	Employee:	 	«FIRSTNAME» «LASTNAME»
	Telephone:	 	 

  

 3

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