Document:

Consulting Agreement, dated July 8,2003

 Exhibit 10.18 
  
 CONSULTING AGREEMENT 
  
 This AGREEMENT is made and entered into November 8, 2003 (this “Agreement”) by and between Arbinet-thexchange, Inc. (formerly known as Arbinet Holdings, Inc., a
Delaware corporation, the “Company”) having an office at 120 Albany Street, Suite 450, Tower II, New Brunswick, NJ 08901 and Alex Mashinsky, an individual currently residing at 495 West End Avenue, New York, NY 10024 (collectively, the
“Parties”). 
  
 WHEREAS, Mr. Mashinsky is the founder of the Company and
entered into those certain promissory notes dated April 15, 2000 and April 30, 2000 in favor of the Company and the Parties have agreed to amend the terms of these promissory notes (the “Loan Agreements”). 
  
 WHEREAS, Mr. Mashinsky entered into that certain Restated Employment Agreement dated December
2, 1999, as further amended on May 8, 2001, August 3, 2001, and August 8, 2001 (the “Employment Agreement”). 
  
 NOW THEREFORE, in consideration of the mutual covenants hereinafter contained, the Parties agree as follows: 
  

	1.	Termination of Prior Agreement. The Parties agree the Employment Agreement was terminated as of December 1, 2002 (the “Employment Termination Date”), and Mr.
Mashinsky agrees to and has provided services under the terms described herein since the Employment Termination Date. 

  

	2.	Services. 

  

	 	a.	Position. The Company hereby retains Mr. Mashinsky to perform business consulting services to the Company, and Mr. Mashinsky agrees to perform such services for the Company
as may reasonably be specified from time to time and directed by the Chief Executive Officer of the Company. Mr. Mashinsky shall obey the lawful procedures and policies of the Company, including but not limited to all Company policies relating to
office security and facility access. 

  

	 	b.	Independent Contractor. In accordance with the mutual intentions of the Company and Mr. Mashinsky, this Agreement establishes between them an independent

 contractor relationship, and all of the terms and conditions of this Agreement shall be interpreted in
light of that relationship. Mr. Mashinsky agrees to furnish personal services as provided in this Agreement as an independent contractor using Mr. Mashinsky’s own means and methods. Mr. Mashinsky is engaged in an advisory capacity. There is no
intention to create by this Agreement an employer-employee or agency relationship. 
  

	3.	Term. Mr. Mashinsky shall provide services under the terms of this Agreement until Mr. Mashinsky’s services are terminated pursuant to Paragraph 7 below.

  

	4.	Fees. Mr. Mashinsky shall be paid a fee of Six Thousand Six Hundred Sixty-Six Dollars and Sixty-Seven Cents ($ 6,666.67) on the last day of each calendar month in which he
performs services under this Agreement. The fees provided for under the terms of this paragraph shall constitute full payment for Mr. Mashinsky’s services to the Company under this Agreement, and Mr. Mashinsky shall not receive any additional
payments or benefits for his services. Mr. Mashinsky agrees to accept exclusive liability for the payment of all taxes and contributions owing in either a personal or professional capacity on, or arising out of, any of the payments made to Mr.
Mashinsky under this Agreement and the Loan Agreements with the Company and to reimburse and indemnify the Company for such taxes or contributions or penalties that the Company may be compelled to pay in the event that Mr. Mashinsky fails to pay
such taxes or contributions. Mr. Mashinsky also agrees to comply with all valid administrative regulations respecting the assumption of liability for such taxes and contributions. 

  

	5.	Business Expenses. Mr. Mashinsky shall be reimbursed for all reasonable business expenses for travel and entertainment, provided Mr. Mashinsky obtains the prior written
consent of the Chief Executive Officer and accounts for and substantiates all such expenses in accordance with Company policies and guidelines. 

  

	6.	Freedom to Contract. Mr. Mashinsky represents and warrants that he has the right to enter into this Agreement, that he is eligible to perform the services provided for
hereunder for the Company and that no other written or verbal agreements exist that would be in conflict with or prevent performance of any portion of this Agreement. Mr. Mashinsky further agrees to hold the Company harmless from any and all
liability arising 

  

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 out of any prior contractual obligations entered into by Mr. Mashinsky. Mr. Mashinsky represents and
warrants that he has not made and will not make any contractual or other commitments that would conflict with or prevent his performance of any portion of this Agreement or conflict with the full enjoyment by the Company of the rights herein
granted. 
  

	7.	Termination. Notwithstanding the provisions of Paragraph 3 above, Mr. Mashinsky’s services under this Agreement shall be terminated on the earliest of the following
dates: 

  

	 	a.	Death. On the date of Mr. Mashinsky’s death. 

  

	 	b.	By Notice. On the date that either Mr. Mashinsky or the Chief Executive Officer of the Company notifies the other in writing the date of termination of Mr. Mashinsky’s
services under this Agreement, for any or no reason. 

  
 Following the termination of Mr. Mashinsky’s services under this Agreement, the Company will have no further liability to Mr. Mashinsky and no further payments will be made to Mr. Mashinsky, except: (i) the Company shall pay to Mr.
Mashinsky (or, in the case of automatic termination upon Mr. Mashinsky’s death under subparagraph (a) above, to Mr. Mashinsky’s legal representatives or such named beneficiaries as Mr. Mashinsky may designate from time to time in a writing
delivered to the Company) the pro rata portion of his monthly fee for the relevant calendar month through the date of termination, calculated by multiplying the Six Thousand Six Hundred Sixty-Six Dollar and Sixty-Seven Cents ($6,666.67) fee by a
fraction, the numerator of which will be the number of days in the calendar month of termination prior to termination and the denominator of which shall be the number of days of that month; and (ii) to the extent Mr. Mashinsky is entitled to the
reimbursement of business expenses incurred prior to termination as provided in Paragraph 5 above. 
  

	8.	Restrictive Covenants. 

  

	 	a.	Confidentiality. Mr. Mashinsky agrees that both during the term of this Agreement and thereafter he will not disclose to any third party or use in any way (except in
furtherance of the best interests of the Company during his performance of services hereunder during the Agreement’s term) any proprietary information or 

  

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 confidential records, including without limitation (i) the software products, programs, applications and
processes utilized by the Company (other than pre-packaged “off the shelf” products); (ii) the name and/or address of any customer or affiliate of the Company or any information concerning the transactions or relations of any customer,
vendor or affiliates of the Company with the Company or any of its partners, principals, stockholders, directors, officers or agents; (iii) any information concerning any product, technology, or procedure employed by the Company but not generally
known to its customers, vendors or competitors, or under development by or being tested by the Company but not at the time offered by the Company generally to customers or vendors; (iv) any information relating to the Company’s computer
software, computer systems, pricing or marketing methods, sales margins, cost of goods, cost of material, capital structure, operating results, borrowing arrangements or business plans; (v) any information which is generally regarded as confidential
or proprietary in any line of business engaged in by the Company; (vi) any business plans, budgets, advertising or marketing plans; (vii) any information contained in any of the Company’s written or oral policies and procedures or manuals;
(viii) any information belonging to customers, vendors or affiliates of the Company or any other person or entity that the Company has agreed to hold in confidence; (ix) any inventions, innovations or improvements covered by this Agreement; and (x)
all written, graphic and other material relating to any of the foregoing. Mr. Mashinsky acknowledges and understands that information that is not novel or copyrighted or patented may nonetheless be proprietary information. The term “proprietary
information” shall not include information generally available to the public or information that is or becomes available to Mr. Mashinsky on a non-confidential basis from a source other than the Company or the Company’s directors,
officers, employees, partners, principals or agents (other than as a result of a breach of any obligation of confidentiality). Immediately upon termination of Mr. Mashinsky’s services under this Agreement or at any other time upon the
Company’s request, Mr. Mashinsky will return to the Company all personal property (including without limitation, all files, records, documents, lists, equipment, supplies, promotional materials, keys, phone or credit cards and similar items and
all copies thereof or extracts therefrom) and 
  

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 confidential records of the Company. For purposes of this Agreement, “confidential records”
means all correspondence, memoranda, files, manuals, books, lists, financial, operating or marketing records, magnetic tape, or electronic or other media or equipment of any kind. 
  

	 	b.	No Solicitation of Employees. Mr. Mashinsky agrees that, both during the term of this Agreement and for a period of twelve (12) months following the termination of Mr.
Mashinsky’s services under this Agreement at any time and for any reason, Mr. Mashinsky will not, on behalf of himself or any other person or entity directly or indirectly solicit or attempt to solicit (i) any of the employees (other than
clerical or non-administrative employees), agents, consultants or representatives of the Company to terminate his, her or its relationship with the Company; or (ii) any of the employees, agents, consultants or representatives of the Company to
become employees, agents, representatives or consultants of any other person or entity (including Mr. Mashinsky or any person or entity owned or controlled by Mr. Mashinsky). 

  

	 	c.	No Solicitation of Customers, Vendors and Distributors. Mr. Mashinsky agrees that, both during the term of this Agreement and for a period of twelve (12) months following the
termination of this Agreement at any time and for any reason, Mr. Mashinsky will not, on behalf of himself or any other person or entity, directly or indirectly solicit or attempt to solicit any customer, vendor or distributor of the Company with
respect to any product or service (i) being furnished, made, sold or leased by the Company, or (ii) proposed to be furnished, made, sold or leased by the Company and which is covered in a written proposal or business plan by the Company.

  

	 	d.	Non-Competition. During the term of this Agreement and for a period of twelve (12) months following the termination of Mr. Mashinsky’s services under this Agreement at
any time and for any reason, Mr. Mashinsky shall not, on behalf of himself or any other person or entity, directly or indirectly (whether as officer, director, employee, consultant, investor, lender, joint venturer, partner, stockholder, sole
proprietor or otherwise), be employed by, perform any services 

  

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 for or hold any ownership interest in any business in competition with any business conducted by the
Company or its affiliates in any jurisdiction where the Company and/or its affiliates conduct such business as of the date of the termination of Mr. Mashinsky’s services hereunder (including, without limitation, any business activity or
jurisdiction which is covered by or included in a written proposal or business plan existing as of the date of the termination of Mr. Mashinsky’s services hereunder). The above notwithstanding, it shall not be considered a violation of this
subparagraph (d) if Mr. Mashinsky (i) owns, for investment purposes, up to one percent (1%) of the total outstanding equity securities of a publicly traded company, and/or (ii) performs services for any enterprise to the extent such services are not
performed, directly or indirectly, for a business unit of the enterprise in competition with the Company and/or its affiliates. 
  

	 	e.	Enforcement. Mr. Mashinsky acknowledges and agrees that the Company’s business is of a highly competitive nature and that the services to be provided by Mr. Mashinsky
under this Agreement are of a special, unique and extraordinary nature. Mr. Mashinsky further acknowledges and agrees that the restrictions contained in this Paragraph 8 are necessary to prevent the use and disclosure of confidential information and
to protect other legitimate business interests of the Company. Mr. Mashinsky acknowledges that all of the restrictions in this Paragraph 8 are reasonable in all respects, including duration, territory and scope of activity. Mr. Mashinsky agrees that
the restrictions contained in this Paragraph 8 shall be construed as separate agreements independent of any other provision of this Agreement or any other agreement between Mr. Mashinsky and the Company. Mr. Mashinsky agrees that the existence of
any claim or cause of action by Mr. Mashinsky against the Company, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company of the covenants and restrictions in this Paragraph 8. Mr.
Mashinsky agrees that the restrictive covenants contained in this Paragraph 8 are a material part of Mr. Mashinsky’s obligations under this Agreement for which the Company has agreed to compensate Mr. Mashinsky as provided in this Agreement.
Mr. Mashinsky agrees that the injury the Company will suffer in the event of the breach by Mr. 

  

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 Mashinsky of any clause of this Paragraph 8 will cause the Company irreparable injury that cannot be
adequately compensated by monetary damages alone. Therefore, Mr. Mashinsky agrees that the Company, without limiting any other legal or equitable remedies available to it, shall be entitled to obtain equitable relief by injunction or otherwise from
any court of competent jurisdiction, including, without limitation, injunctive relief to prevent Mr. Mashinsky’s failure to comply with the terms and conditions of this Paragraph 8. The twelve (12) month periods referenced in subparagraphs (b),
(c) and (d) above shall be extended on a day-for-day basis for each day during which Mr. Mashinsky violates the provisions of subparagraphs (b), (c) or (d) in any respect, so that Mr. Mashinsky is restricted from engaging in the activities
prohibited by subparagraphs (b), (c) and (d) for the full twelve (12) month period. 
  

	9.	Intangible Property. Mr. Mashinsky will not at any time during or after the term of this Agreement have or claim any right, title or interest in any trade name, trademark,
patent, copyright, work for hire or other similar rights belonging to or used by the Company and shall not have or claim any right, title or interest in any material or matter of any sort prepared for or used in connection with the business or
promotion of the Company, whatever Mr. Mashinsky’s involvement with such matters may have been, and whether procured, produced, prepared, or published in whole or in part by Mr. Mashinsky, it being the intention of the Parties that Mr.
Mashinsky shall and hereby does, recognize that the Company now has and shall hereafter have and retain the sole and exclusive rights in any and all such trade names, trademarks, patents, copyrights (all of Mr. Mashinsky’s work in this regard
being a work for hire for the Company under the copyright laws of the United States), material and matter as described above. If any such work created by Mr. Mashinsky is not a work made for hire under the copyright laws of the United States, then
Mr. Mashinsky hereby assigns to the Company all right, title and interest in each such work (including without limitation all copyright rights). Mr. Mashinsky will promptly disclose in writing to the Company any and all inventions, innovations, or
improvements (including policies, procedures, products, improvements, software, ideas and discoveries) conceived or made by Mr. Mashinsky, either alone or jointly with others. Mr. Mashinsky shall cooperate fully with the Company during the

  

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 term of this Agreement and thereafter in the securing of trade name, trademark, patent or copyright
protection or other similar rights in the United States and in foreign countries and shall give evidence and testimony and execute and deliver to the Company all papers requested by it in connection therewith. 
  

	10.	Non-Disclosure. Except as may be required by law, neither Mr. Mashinsky nor the Company shall disclose the financial terms of this Agreement to persons not involved in the
operation of the Company, and the Parties shall disclose the financial terms of the Agreement to those involved in the operation of the Company only as needed to implement the terms of the Agreement or carry out the operations of the Company. The
above notwithstanding, the financial terms of the Agreement may be disclosed to: (i) the Parties’ attorneys, accountants, financial or tax advisors, and any potential investors in or purchasers of the Company, provided such persons agree not to
disclose such terms of the Agreement further; and (ii) members of Mr. Mashinsky’s immediate family, provided such family members agree not to reveal the terms of the Agreement further. 

  

	11.	Successors and Assigns. The rights and obligations of the Company under this Agreement shall be binding on and inure to the benefit of the Company, its successors and
permitted assigns. The rights and obligations of Mr. Mashinsky under this Agreement shall be binding on and inure to the benefit of the heirs and legal representatives of Mr. Mashinsky. Neither Party may assign this Agreement without the prior
written consent of the other, except that the Company may assign the Agreement to any entity acquiring all or substantially all of the assets or the business of the Company. 

  

	12.	Waiver or Modification. Any waiver by the Company of a breach of any provision of this Agreement shall not operate as, or be construed to be, a waiver of any other breach of
such provision of this Agreement. The failure of the Company to insist on strict adherence to any term of this Agreement on one or more occasions shall not be considered a waiver or deprive the Company of the right thereafter to insist on strict
adherence to that term or any other term of this Agreement. Neither this Agreement nor any part of it may be waived, changed or terminated orally, and any waiver, amendment or modification must be in writing and signed by Mr. Mashinsky and the
Company’s Chief Executive Officer. 

  

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	13.	Counterparts. This Agreement may be executed in any number of counterparts, each of which shall, when executed, be deemed to be an original and all of which shall be deemed
to be one and the same instrument. 

  

	14.	Choice of Law. This Agreement will be governed and construed and enforced in accordance with the laws of the State of New York, without regard to its conflicts of law rules.
Any action to enforce this Agreement must be brought in a court situated in the State of New York and the Parties hereby consent to the jurisdiction of courts situated in the State of New York. 

  

	15.	Entire Agreement. This Agreement contains the entire understanding of the Parties relating to the subject matter of this Agreement and supersedes all other prior written or
oral agreements, understandings or arrangements between the Parties relating to the subject matter hereof, including, without limitation, the Employment Agreement. Mr. Mashinsky agrees and acknowledges that he has been provided with everything to
which he is entitled under the Employment Agreement, and that he will not receive any further payments or benefits thereunder. Mr. Mashinsky acknowledges that, in entering into this Agreement, he does not rely and has not relied on any statements or
representations not contained in this Agreement. 

  

	16.	Severability. Any term or provision of this Agreement that is determined to be invalid or unenforceable by any court of competent jurisdiction in any jurisdiction shall, as
to such jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions of this Agreement or affecting the validity or enforceability of any of the terms
or provisions of this Agreement in any other jurisdiction and such invalid or unenforceable provision shall be modified by such court so that it is enforceable to the extent permitted by applicable law. 

  

	17.	Notices. All notices and other communications required or permitted to be given under this Agreement shall be in writing and delivery shall be deemed to have been made (i)
three business days following the date when such notice is deposited in first class mail, postage prepaid, return receipt requested; or (ii) the business day following the date when such notice is deposited with any nationally reputable overnight
air courier service to the Party entitled to receive the same, at the address indicated below or at such other address 

  

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 as such Party shall have specified by written notice to the other Party given in accordance with the
terms of this Paragraph 17: 
  

			
	If to the Company	 	Arbinet-thexchange, Inc.
	 	 	 120 Albany Street, Suite 450, Tower II
 New
Brunswick, NJ 08901
 Attention: Chief Executive Officer

		
	with a copy to:	 	Arbinet-thexchange, Inc.
	 	 	 120 Albany Street, Suite 450, Tower II
 New
Brunswick, NJ 08901
 Attention: Contract Compliance

		
	If to Mr. Mashinsky:	 	Alex Mashinsky
	 	 	 495 West End Avenue
 New York, NY
10024

  

	18.	Headings. The headings of any paragraphs in this Agreement are for reference only and shall not be used in construing the terms of this Agreement. 

 

	19.	No Third Party Beneficiaries. This Agreement does not create, and shall not be construed as creating any rights enforceable by any person not a Party to this Agreement.

  

	20.	Survival. The covenants, agreements, representations and warranties contained in this Agreement shall survive the termination of Mr. Mashinsky’s services under this
Agreement at any time and for any reason. 

  

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 IN WITNESS WHEREOF, this Agreement has been executed and delivered by the Parties as of the first date
written above. 
  

			
	 ARBINET-THEXCHANGE, INC.

		
	 By
	 	 /s/ J. Curt Hockemeier

	 	 	 J. Curt Hockemeier

	 	 	 President & Chief Executive Officer

  

	
	 ALEX MASHINSKY

	
	 /s/ Alex
Mashinsky            11/8/03

  

 - 11 -Settlement and Release Agreement dated July 30, 2004

 Exhibit 10.19 
  
  
 SETTLEMENT AND RELEASE AGREEMENT

  
 This Settlement and Release Agreement (the
“Agreement”) is made as of this 30th day of July, 2004, by and between Anthony Craig (“Craig”)
and Arbinet-thexchange, Inc., a Delaware corporation (the “Company”). 
  
 WITNESSETH: 
  
 WHEREAS, Craig issued a promissory note in favor of the Company in the aggregate principal amount of $750,000 dated March 6, 2001 (the “Promissory Note”); and 
  
 WHEREAS, Craig amended the Promissory Note on February 6, 2003 (the “Amended Promissory Note”), and

  
 WHEREAS, Craig and the Company desire that all amounts
due to the Company from Craig under the Amended Promissory Note be paid in full; and  
  
 WHEREAS, pursuant to the terms and provisions of this Agreement, Craig desires to transfer that number of shares (the “Shares”) of the Company’s common stock, $0.001 par value per share (the
“Common Stock”), equal to the outstanding principal and accrued interest due and payable under the Amended Promissory Note as of the date hereof, such amount equal to $884,767.12 (the “Loan Amount”) divided by $1.16 (and rounded
up to the nearest whole share) (i.e., 762,730 shares (the “Shares”) in full payment of the Loan Amount. 
  
 NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein and for good and valuable consideration, the receipt
and adequacy of which are hereby acknowledged, and intending to be legally bound hereby, the parties hereto agree as follows: 
  
 1.      Repayment of the Amended Promissory Note. 
  
 (a)     Surrender of Shares. Subject to the terms and conditions hereof, the Company hereby
agrees to accept the Shares from Craig and Craig hereby agrees to deliver the Shares to the Company, in full satisfaction of the Loan Amount. 
  
 (b)     Closing. The delivery of the Shares and the other transactions contemplated by this Agreement shall take place
simultaneously with the execution and delivery of this Agreement at the Company’s offices at 120 Albany Street, Tower II, Suite 450, New Brunswick, NJ 08901 at 10:00 a.m. local time on July 30, 2004 (the “Closing”), or, if otherwise
agreed to by the Company and Craig, such other date, time and place as the parties shall mutually agree. 
  
 (c)     Transactions at Closing. At the Closing, the following actions shall occur, which actions shall be deemed to take place
simultaneously and no action shall be deemed to have been completed or any document delivered until all such actions have been completed and all required documents delivered: 
  

 (i)      Craig shall deliver to the Company valid stock certificates evidencing
Craig’s ownership of the Shares, such certificates to be held in escrow pursuant to Section 2 below. 
  
 (ii)      Craig shall deliver duly executed stock powers executed in favor of the Company. 
  
 (iii)     The Company shall cancel the Promissory.

  
 (d)       Representations and
Warranties of Craig. Craig hereby represents and warrants to the Company as follows: 
  
 (i)      Enforceability. This Agreement and any and all agreements and documents to be executed by Craig pursuant to this Agreement and the transactions contemplated hereby, when
executed and delivered by Craig, will constitute the valid, binding and enforceable obligation of Craig. 
  
 (ii)     Authorization; No Contravention. The execution, delivery and performance of the obligations of Craig hereunder (A) do
not violate, conflict with or result in any breach or contravention of, or the creation of any lien under, any material contractual obligation of Craig or any requirement of law applicable to Craig, and (B) do not violate any orders of any
governmental authority against, or binding upon, Craig. 
  
 (iii)     Governmental Authorization; Third Party Consents. No approval, consent, compliance, exemption, authorization or other action by, or notice to, or filing with, any governmental authority or any other
person, and no lapse of a waiting period under any requirement of law, is necessary or required in connection with the execution, delivery or performance (including, without limitation, the delivery of the Shares) by, or enforcement against, Craig
in this Agreement and each of the other documents to which Craig is a party or the transactions contemplated hereby and thereby. 
  
 (iv)     Ownership of Shares. Craig is the lawful record owner of the Shares, and of all rights thereto, free and clear of all
liens, claims, charges, encumbrances, restrictions, rights, options to purchase, proxies, voting trust and other voting agreements, calls or commitments of every kind. 
  
 (v)     Acknowledgements. 
  
 Craig is fully aware of the Company’s business, operations and financial condition and has received or has had full
access to all of the information, including the Company’s financial statements, he considers necessary or appropriate to make an informed decision with respect to the delivery of the Shares in satisfaction of the Loan Amount. 
  
 Craig has had the opportunity to ask questions of and receive answers from
the Company and its executive officers and financial and legal advisors concerning the Company and he has been furnished with all documents and other information about the Company which he has requested. Craig believes that he has been fully
apprised of all facts and circumstances necessary 
  

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 to permit him to make an informed decision relating to the delivery of the Shares in satisfaction of the Loan Amount,
that he has sufficient knowledge and experience in business and financial matters, is capable of evaluating the merits and risks of the transactions contemplated hereby and has the capacity to protect his own interest in connection with the
transactions contemplated hereby. 
  
 Craig acknowledges and
agrees that the Company may experience significant future growth as a result of, among other things, an initial public offering of its capital stock, a merger, consolidation or acquisition of the Company into, with or by another entity, a sale of
the Company’s assets or a strategic alliance or other business arrangement. Craig further acknowledges that, as a result of such transactions or otherwise, there may be an increase in the value of the Company’s capital stock after the date
of this Agreement for which, other than as set forth in Section 3 hereof, Craig agrees he shall not be entitled to any such benefit. 
  
 (e)       Representations and Warranties of the Company. The Company hereby represents and warrants to Craig as
follows: 
  
 (i)     Organization. The
Company is duly organized, validly existing and in good standing under the laws of the State of Delaware. The Company has all requisite power and authority to execute and deliver this Agreement and all other agreements which are ancillary hereto and
to consummate the transactions contemplated hereby and thereby. 
  
 (ii)     Authorization; Approvals. All corporate action on the part of the Company necessary for the authorization, execution, delivery and performance of all of the Company’s obligations under this Agreement
has been taken prior to the Closing. This Agreement, when executed and delivered by or on behalf of the Company, shall constitute the valid and legally binding obligation of the Company, legally enforceable against the Company in accordance with its
respective terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting enforcement of creditors’ rights generally or by equitable principles relating to enforceability (regardless of whether
considered in a proceeding at law or in equity). No consent, approval, order, license, permit, action by, or authorization of or designation, declaration, or filing with any governmental authority on behalf of the Company is required that has not
been, or will not have been, obtained by the Company prior to the Closing in connection with the valid execution, delivery and performance of this Agreement. 
  
 2.      Escrow. At the Closing, the Company shall place the Shares in escrow, which Shares shall be held in escrow in
accordance with the terms and provisions hereof and in accordance with the following instructions: 
  
 (a)     Appointment. Craig irrevocably authorizes the Company to deposit with the Secretary of the Company any certificates
evidencing the Shares to be held by the Secretary of the Company and any additions and substitutions to the Shares. Craig does hereby irrevocably constitute and appoint the Secretary of the Company as his attorney-in-fact and agent for the term of
this escrow to execute with respect to such Shares all documents necessary or appropriate to make such Shares negotiable and to complete any transaction herein contemplated. 
  

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 (b)     No Rights as a Stockholder. Craig will not be deemed to be a
stockholder of the Company with respect to the Shares for any purpose, nor will anything contained herein be construed to confer upon Craig, as such, any of the rights of a stockholder of the Company with respect to the Shares while the Shares are
held in escrow. 
  
 (c)     Escrow
Period. The Shares shall be held in escrow from the date hereof until such time as (i) some or all of the Shares are distributed to Craig, or (ii) the Shares are retained by the Company, each in accordance with Section 3 below. 
  
 3.      Adjustment. 
  
 (a)     If the Company consummates a firm commitment
underwritten public offering of its Common Stock (an “IPO”) by April 15, 2005 at a per share price greater than $1.16 (as such price may be adjusted in the event of any stock dividend, stock distribution, subdivision, combination,
consolidation or similar event), the Company shall return to Craig that number of Shares (the “Adjusted Shares”) calculated by subtracting from the Shares held in escrow an amount equal to a fraction, the numerator of which shall equal the
Loan Amount and the denominator of which shall equal the per share price of the Company’s Common Stock sold in the IPO. The Secretary of the Company shall deliver the Adjusted Shares to Craig within ten (10) business days of the closing of the
IPO and the Company shall retain those Shares remaining in escrow. In the event that the Company consummates an IPO at a per share price less than or equal to $1.16 (as such price may be adjusted in the event of any stock dividend, stock
distribution, subdivision, combination, consolidation or similar event), there shall be no adjustment to the Shares pursuant to this Section 3(a) and the Secretary of the Company shall retain and cancel the Shares. 
  
 (b)     In the event that the Company fails to consummate
an IPO by April 15, 2005, (i) Craig shall request return of the Shares in writing (the “Share Request”) and repay the Loan Amount in cash on or before April 20, 2005 (the “Settlement Date”), or (ii) if Craig fails to deliver the
Share Request prior to the Settlement Date, the Company shall retain the Shares. 
  
 4.      Release. In consideration for and subject to performance of the obligations contained in this Agreement, Craig hereby agrees and covenants not to sue or to bring, or assign to
any third person, any claims or causes of action, known or unknown, accrued or unaccrued, asserted or unasserted, from the beginning of time to the date hereof, and releases and waives any claims or causes of action that Craig may have against the
Company, its agents, officers, employees, stockholders, directors, successors and assigns (the “Company Releasees”), including, but not limited to, any and all claims or causes of action relating to the repayment of the Loan Amount. Craig
represents and warrants that he has not filed, nor has he assigned to any third person, any complaints, charges or claims for relief against the Company Releasees with any local, state or federal court or administrative agency. 
  

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 5.      Miscellaneous.  
  
 (a)     Survival of Representations and
Warranties. All of the representations and warranties made herein shall survive the execution and delivery of this Agreement. 
  
 (b)     Further Assurances. Each of the parties hereto shall perform such further acts and execute such further documents as
may reasonably be necessary to carry out and give full effect to the provisions of this Agreement and the intentions of the parties as reflected thereby. 
  
 (c)     Governing Law; Jurisdiction. This Agreement shall be governed by and construed according to the laws of the State of
New Jersey, without regard to the conflict of laws provisions thereof. Any dispute arising under or in relation to this Agreement shall be resolved in a competent court in the State of New Jersey, and each of the parties hereby submits irrevocably
to the exclusive jurisdiction of such court. 
  
 (d)     Successors and Assigns; Assignment. Except as otherwise expressly limited herein, the provisions hereof shall inure to the benefit of, and be binding upon, the successors, assigns, heirs, executors, and
administrators of the parties hereto. None of the rights, privileges, or obligations set forth in, arising under, or created by this Agreement may be assigned without the prior consent in writing of each party to this Agreement. 
  
 (e)     Entire Agreement. This Agreement, which
contains the entire understanding of the parties hereto, shall be binding on the parties hereto, their parents, subsidiaries, affiliates, heirs, executors, administrators and assigns. It is the only agreement between the parties with respect to the
subject matter hereof and shall not be modified or varied by oral understandings. Any term of this Agreement may be amended and the observance of any term hereof may be waived only with the written consent of the Company. 
  
 (f)     Notices, etc. All notices and other
communications required or permitted hereunder to be given to a party to this Agreement shall be in writing and shall be telecopied or mailed by registered or certified mail, postage prepaid, or otherwise delivered by hand or by messenger, addressed
to such party’s address as set forth below or at such other address as the party shall have furnished to each other party in writing in accordance with this provision: 
  

			
	if to Craig:	  	4041 Arrowood Ct.
	 	  	Bonita Springs, Florida 34134
		
	if to the Company:	  	Arbinet-thexchange, Inc.
	 	  	120 Albany Street, Tower II, Suite 450
	 	  	New Brunswick, New Jersey 08901
	 	  	Facsimile: (732) 509-9101
	 	  	Attn: General Counsel
		
	 	  	with a copy to:
		
	 	  	David J. Sorin, Esq.
	 	  	Morgan, Lewis & Bockius LLP
	 	  	502 Carnegie Center
	 	  	Princeton, NJ 08540
	 	  	 Facsimile: (609) 919-6639

  

 -5- 

 or such other address with respect to a party as such party shall notify each other party in writing as above provided.
Any notice sent in accordance with this section shall be effective (a) if mailed, five (5) business days after mailing, (b) if sent by messenger, one (1) business day after delivery, and (c) if sent via telecopier, one (1) business day after
transmission and electronic confirmation of receipt or (if transmitted and received on a non-business day) on the second business day following transmission and electronic confirmation of receipt (provided, however, that any notice of
change of address shall only be valid upon receipt). 
  
 (g)     Delays or Omissions. No delay or omission to exercise any right, power, or remedy accruing to any party upon any breach or default under this Agreement, shall be deemed a waiver of any other breach or
default theretofore or thereafter occurring. Any waiver, permit, consent, or approval of any kind or character on the part of any party of any breach or default under this Agreement, or any waiver on the part of any party of any provisions or
conditions of this Agreement, must be in writing and shall be effective only to the extent specifically set forth in such writing. All remedies, either under this Agreement or by law or otherwise afforded to any of the parties, shall be cumulative
and not alternative. 
  
 (h)    
Severability. If any provision of this Agreement is held by a court of competent jurisdiction to be unenforceable under applicable law, then such provision shall be excluded from this Agreement and the remainder of this Agreement shall be
interpreted as if such provision were so excluded and shall be enforceable in accordance with its terms; provided, however, that in such event this Agreement shall be interpreted so as to give effect, to the greatest extent consistent
with and permitted by applicable law, to the meaning and intention of the excluded provision as determined by such court of competent jurisdiction. 
  
 (i)     Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original
and enforceable against the parties actually executing such counterpart, and all of which together shall constitute one and the same instrument. 
  
 (j)     Legal Review. All parties to this Agreement have had an opportunity to review this Agreement and to obtain independent
legal counsel to review this Agreement. 
  
 * * * * * 

 

 -6- 

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

					
	 ARBINET-THEXCHANGE, INC.

		
	 By:
	 	 /s/    J. Curt Hockemeier

	 	 	

	 	 	 Name:
	 	    J. Curt Hockemeier
	 	 	 Title:
	 	    President and C.E.O.
	
	 /s/    Anthony Craig

	

	 Anthony Craig

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