Document:

Patent Settlement Agreement, dated October 25, 2007

 Exhibit 10.37 
 PATENT SETTLEMENT AGREEMENT 
 This PATENT SETTLEMENT AGREEMENT (this
“Agreement”) is made and entered into as of October 25, 2007 (the “Effective Date”) by and between Vonage Holdings Corp. having offices at 23 Main Street, Holmdel, New Jersey (“Vonage”), and
Verizon Services Corp., a corporation organized and existing under the laws of Delaware having an office at One Verizon Way, Basking Ridge, New Jersey, (“Verizon”). Vonage and Verizon are individually referred to herein as a
“party,” and collectively as the “parties.” 
 WITNESSETH 
 WHEREAS, Verizon and certain of its Affiliates (i.e., Verizon Laboratories Inc. and Verizon Communications Inc.) have filed an action against Vonage and
an Affiliate of Vonage for patent infringement in actions styled Verizon Services Corp., et al v. Vonage Holdings Corp., et al, pending in the United States District Court for the Eastern District of Virginia and the United States Circuit
Court of Appeals for the Federal Circuit (the “Verizon Litigation”); 
 WHEREAS, Vonage has succeeded to an action against
Bell Atlantic Communications, Inc., d/b/a Verizon Long Distance for patent infringement in actions styled Vonage Holdings Corp. v. SBC Internet Services, Inc., et al, pending in the United States District Court for the Northern District of
Texas, Fort Worth Division (the “Vonage Litigation”); 
 WHEREAS, Vonage denies any liability in the Verizon Litigation, and
Verizon denies any liability in the Vonage Litigation; 
 WHEREAS, Vonage, on behalf of itself and its Affiliates (as defined below), desires
to settle the Verizon Litigation pursuant to the terms and conditions of this Agreement; 
 WHEREAS, Verizon, on behalf of itself and its
Affiliates, desires to settle the Vonage Litigation pursuant to the terms and conditions of this Agreement. 
 NOW, THEREFORE, in
consideration of the above promises and mutual covenants hereinafter contained, the parties agree as follows: 
 ARTICLE I 

DEFINITIONS 
 As used in
this Agreement, the following terms shall have the following meanings: 

 “Adverse Decision” means a decision by the United States Court of Appeals for the
Federal Circuit in the Verizon Litigation which provides for any of the following: (i) a new claim construction for any of the terms of the claims of the ‘574 or ‘711 patents and a remand for a new trial on such claim construction;
(ii) a remand for a new trial of the ‘574 or the ‘711 patent on Vonage’s defense of obviousness; or (iii) the Permanent Injunction Order entered by the Court is vacated, and/or vacated and remanded for further proceedings,
with respect to the ‘574 or ‘711 patents. 
 “Affiliate” means, with respect to either party, any person,
organization or entity controlling, controlled by or under common control with, such party. For purposes of this definition only, “control” of another person, organization or entity shall mean the possession, directly or indirectly, of the
power to direct or cause the direction of the activities, management or policies of such person, organization or entity, whether through the ownership of voting securities, by contract or otherwise. Without limiting the foregoing, control shall be
presumed to exist when a person, organization or entity (i) owns or directly controls fifty percent (50%) or more of the outstanding voting stock or other ownership interest of the other organization or entity, or (ii) possesses,
directly or indirectly, the power to elect or appoint fifty percent (50%) or more of the members of the governing body of the organization or other entity. 
 “Patents” means (i) all classes or types of patents anywhere in the world, including utility patents, utility models, design patents, invention certificates, reexaminations, reissues, extensions
and renewals; and (ii) all applications anywhere in the world (including provisional and nonprovisional applications), continuations, divisionals, continuations-in-part, and rights to inventions for which applications may be filed for such
patents. 
 “Person” means an individual, trust, corporation, partnership, joint venture, limited liability company,
association, unincorporated organization or other legal or governmental entity. 
 “Third Party” means a Person other than a
party to this Agreement or an Affiliate of a party to this Agreement. 
 “Verizon Patents” means (i) those Patents
listed in Exhibit A to this Agreement, (ii) any and all Patents existing or subsequently issuing from any applications claiming priority, in whole or in part, from any of the Patents identified in (i), (iii) any and all
non-United States Patents existing or subsequently issuing claiming priority, in whole or in part, from any of the foregoing, (iv) any and all Patents existing or subsequently issuing from continuations, divisionals, continuations-in-part,
reexaminations, reissues, extensions, and renewals, or the non-United States equivalents, of any of the foregoing, and (v) all United States and foreign patents and applications, issued or on file as of the Effective Date and owned by Verizon
or a Verizon Affiliate (excluding Cellco Partnership d/b/a Verizon Wireless) that would be infringed by Vonage’s products and services existing as of the Effective Date, provided such patents and patent applications shall include any patents
and patent applications owned jointly by Verizon or a Verizon Affiliate (excluding Cellco Partnership d/b/a Verizon Wireless) and Cellco Partnership d/b/a Verizon Wireless. 
  

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 “Vonage Patents” means (i) those Patents listed in Exhibit B to this
Agreement, (ii) any and all United States Patents existing or subsequently issuing from any applications claiming priority, in whole or in part, from any of the listed Patents, (iii) any and all non-United States Patents existing or
subsequently issuing claiming priority, in whole or in part, from any of the foregoing, and (iv) any and all Patents existing or subsequently issuing from continuations, divisionals, continuations-in-part, reexaminations, reissues, extensions,
and renewals, or the non-United States equivalents, of any of the foregoing. 
 “Vonage Products” means (i) the products and
services offered by Vonage or any Vonage Affiliate as of the Effective Date, (ii) modifications and improvements to the products and services described in (i), including products and services of equivalent functionality, and (iii) dual
mode phones used, at least in part, with the products and services of (i) and (ii). 
 ARTICLE II 
 RELEASES 
 2.1. Vonage
Release of Verizon. Vonage, on behalf of itself and the Vonage Affiliates and their respective officers, directors, and managing members hereby releases Verizon and the Verizon Affiliates and their respective officers, directors, managing
members, employees, attorneys, customers, and vendor/suppliers (other than Nortel, but only to the extent Verizon or any Verizon Affiliate does not have an indemnity obligation to Nortel as of the Effective Date for the provision of products and
services to Verizon or any Verizon Affiliate) (to the extent that activities of the vendor/suppliers are for the benefit of the Verizon or Verizon Affiliates) from and against any and all claims, liability, demands, rights of action, and related
obligations, damages, losses, costs, attorney fees and expenses occurring from the beginning of time to the Effective Date, which it has or may have, including without limitation those claims related to the Vonage Patents, excepting only those
claims for trade payments arising in the ordinary course of business. 
 2.2. Verizon Release of Vonage. Verizon, on behalf of itself
and the Verizon Affiliates and their respective officers, directors, and managing members hereby releases Vonage and the Vonage Affiliates and their respective officers, directors, managing members, employees, attorneys, customers, and
vendor/suppliers (to the extent that activities of the vendor/suppliers are for the benefit of the Vonage or Vonage Affiliates) from and against any and all claims, liability, demands, rights of action and related obligations, damages, losses,
costs, attorneys fees and expenses occurring from the beginning of time to the Effective Date, which it has or may have, including without limitation, those claims related to the Verizon Patents, excepting only those claims for trade payments
arising in the ordinary course of business; provided, however, the foregoing release is expressly contingent and will not be effective until the following conditions have been met: (i) Verizon receives and retains the amounts paid to Verizon
pursuant to Section 5.1 hereof; and (ii) ninety-one (91) days have elapsed after the 

  

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payment to Verizon of all of the amounts set forth in Section 5.1 hereof and Vonage or any Vonage Affiliate has not become a debtor, either voluntarily
or involuntarily, under any chapter of the United States Bankruptcy Court; and (iii) Vonage has not sought protection from its creditors under any other federal or state law at any time prior to ninety-one (91) days after the last payment
has been made to Verizon pursuant to Section 5.1. 
 ARTICLE III 
 GRANTS AND COVENANTS 
 3.1. Vonage Covenant Not to Sue Verizon. In
consideration of the terms herein, Vonage, on behalf of itself and the Vonage Affiliates and their respective officers, directors, and managing members, hereby covenants not to sue Verizon, Verizon Affiliate, or any Verizon customer, during the term
of any Vonage Patent, for infringement of any Vonage Patent by reason of Verizon or any Verizon Affiliate making, having made, using, having used, selling, having sold, importing, having imported, offering for sale or having offered for sale any
products, systems, services and methods of Verizon and/or any Verizon Affiliate that are made, used, sold, imported or offered for sale by or for the benefit of Verizon or any Verizon Affiliate. The foregoing covenant may be pled as a full and
complete defense to, and may be a used as a basis for an injunction against, any action, suit or other proceeding in breach of this covenant. The foregoing covenant does not extend to the products, systems, services or methods of any Third Party,
except to the extent the Third Party (other than Nortel, but only to the extent Verizon or any Verizon Affiliate does not have an indemnity obligation to Nortel as of the Effective Date for the provision of products and services to Verizon or any
Verizon Affiliate) is providing such products, systems, services and/or methods for the benefit of the Verizon or the Verizon Affiliates in the exercise of Verizon’s or any of its Affiliates’ making, using, selling, importing or offering
for sale such products, systems, services and/or methods. Vonage agrees that any assignments, sale or other transfer of any of the Vonage Patents shall include a written agreement by the assignee, purchaser or other transferee that such Vonage
Patents shall be subject to the foregoing covenant. 
 3.2. Verizon Covenant Not to Sue Vonage. In consideration of the terms herein ,
Verizon, on behalf of itself and the Verizon Affiliates and their respective officers, directors, and managing members, hereby covenants not to sue Vonage, Vonage Affiliates, or any Vonage customer for infringement of any Verizon Patent by reason of
Vonage or any Vonage Affiliate making, having made, using, having used, selling, having sold, importing, having imported, offering for sale or having offered for sale any Vonage Products or use by a Vonage customer of any Vonage Product; provided,
however, the foregoing covenant shall be effective from the Effective Date until ninety-one (91) days after the payment to Verizon of all amounts set forth in Section 5.1, provided, further, however, the foregoing covenant shall
automatically be extended for the full term of the Verizon Patents, unless earlier terminated as provided herein, if ninety-one (91) days have elapsed after the payment to Verizon of all of the amounts set forth in Section 5.1 hereof and
Vonage or any Vonage Affiliate has not become a 

  

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debtor, either voluntarily or involuntarily, under any chapter of the United States Bankruptcy Court or has not sought protection from its creditors under
any other federal or state law at any time prior to ninety-one (91) days after payment to Verizon of all amounts set forth in Section 5.1. The foregoing covenant may be pled as a full and complete defense to, and may be a used as a basis
for an injunction against, any action, suit or other proceeding in breach of this covenant The foregoing covenant does not extend to the products, systems, services or methods of any Third Party, except to the extent the Third Party is providing
such products, systems, services and/or methods for the benefit of Vonage or the Vonage Affiliates in the exercise of Vonage’s or any of its Affiliates’ making, using, selling, importing or offering for sale such products, systems,
services and/or methods. Verizon agrees that any assignments, sale or other transfer of any of the Verizon Patents shall include a written agreement by the assignee, purchaser or other transferee that such Verizon Patents shall be subject to the
foregoing covenant. 
 3.3 Verizon Covenant Not to Sue Vonage for Infringement of Verizon Field of Use Patents. Subject to the receipt
by Verizon of all of the payments required pursuant to Section 5.1 hereof, Verizon, on behalf of itself and the Verizon Affiliates and their respective officers, directors, and managing members, hereby covenants not to sue Vonage, any Vonage
Affiliate, or any Vonage customer during the Field of Use Term, for infringement of any Verizon Field of Use Patent by reason of Vonage or any Vonage Affiliate making, having made, using, having used, selling, having sold, importing, having
imported, offering for sale or having offered for sale any Vonage Product (which shall not include any “private label” product or service supplied by Vonage or any Vonage Affiliate) or use by a Vonage customer of any Vonage Product;
provided, however, the foregoing covenant shall be effective from the Effective Date until ninety-one (91) days after the payment to Verizon of all amounts set forth in Section 5.1, provided, further, however, the foregoing covenant shall
automatically be extended for the full Field of Use Term, unless earlier terminated as provided herein, if ninety-one (91) days have elapsed after the payment to Verizon of all of the amounts set forth in Section 5.1 hereof and Vonage or
any Vonage Affiliate has not become a debtor, either voluntarily or involuntarily, under any chapter of the United States Bankruptcy Court or has not sought protection from its creditors under any other federal or state law at any time prior to
ninety-one (91) days after the payment to Verizon of all amounts set forth in Section 5.1. The foregoing covenant shall extend to the acquiring or acquired company of Vonage or any Vonage Affiliate as a result of a Business Combination,
but only to the Vonage Existing Subscribers and only for a period of six (6) months after the conclusion of such Business Combination; provided, however, Verizon agrees to discuss, during such six (6) month period, in good faith, terms,
including additional compensation to Verizon, under which a covenant not to sue under such Verizon Field of Use Patents may be extended to such acquiring or acquired company. In the event no agreement is reached between Verizon and the
acquired/acquiring company during the six (6) month period, the covenant not to sue under such Verizon Field of Use Patents shall immediately terminate as to Vonage, the Vonage Affiliates and the acquiring/acquired company. The foregoing
covenant does not extend to the products, systems, services or methods of any Third Party, including if the Third Party is providing such products, systems, services and/or methods as part of the Vonage Products or for the benefit of Vonage or a
Vonage Affiliate (except to the extent that Vonage or any Vonage Affiliate has an indemnity obligation to such Third Party as of the Effective Date). 

  

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The foregoing covenant is a personal covenant of Verizon and any assignments, sale or other transfer of any of the Verizon Patents shall not be subject to
the foregoing covenant. 
 As used in the foregoing section, “Verizon Field of Use Patents” means the claims of (i) those patent applications
and Patents that have a priority date (or if no priority date, then the filing date thereof) on or before the Effective Date that are owned, in whole or in part, by Verizon or any Verizon Affiliate (excluding Cellco Partnership d/b/a Verizon
Wireless or any of its subsidiaries) or (ii) that are acquired by Verizon or any Verizon Affiliate (excluding Cellco Partnership d/b/a Verizon Wireless or any of its subsidiaries) within one year after the Effective Date that are infringed by:

  

	 	1.	The manufacture, use, sale or offering for sale of Vonage Products (which shall not include any wholesale sale of Vonage Products, other than to customers of Vonage or a Vonage
Affiliate purchasing at wholesale as of the Effective Date); 

  

	 	2.	The development, testing and use by Vonage or any Vonage Affiliates of network systems, billing systems, and/or control systems in the provision of Vonage Products to end-users of
Vonage or any Vonage Affiliate; or 

  

	 	3.	The manufacture, use, sale, distribution or leasing by Vonage or any Vonage Affiliate of hardware, software and equipment used by end users of Vonage or any Vonage Affiliate in the
use of Vonage Products. 

 As used in the foregoing section, “Field of Use Term” means a period of four (4) years after the
Effective Date, unless earlier terminated by a Business Combination (as provided in this Section) or otherwise terminated pursuant to the terms of this Agreement. 
 3.4. Enforcement of Injunction Against Vonage. The parties agree to enter the Consent Order pursuant to Section 4.1. It is understood and agreed that, until the entry of the Consent Order or an Adverse
Decision regarding the ‘711 or ‘574 patents from the United States Court of Appeals for the Federal Circuit, nothing contained in this Agreement shall affect the judgments or injunctions entered against Vonage in the Verizon Litigation.

 3.5. No Other Rights. Except for the foregoing covenants not to sue and the releases of Article II, no rights or licenses are
granted to Verizon or any Verizon Affiliate under any Vonage Patents or other intellectual property rights, or to Vonage or any Vonage Affiliate under any Verizon Patents or other intellectual property rights. Nothing contained in this Agreement
shall be construed as in any way granting any kind of license rights or releases to Verizon under any of the Vonage Patents or to Vonage under any of the Verizon Patents; all such rights, including license rights, being expressly reserved by the
respective owner of the Vonage Patents/Verizon Patents and expressly or by implication not granted to or for the benefit of the other party, nor to any of its customers or any other person or entity. The specific intent of both parties to this
Agreement is to not grant any kind of license rights, expressly or by implication, under any of the Vonage Patents or Verizon Patents to any person or entity, including the other party. 
  

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 ARTICLE IV 
 DISMISSAL OF LITIGATION 
 4.1. Dismissal of the Verizon Litigation. The parties shall
cause their respective counsel to execute and file a Consent Order regarding settlement payments in the form set forth in Exhibit C (the “Consent Order”). The parties recognize that issuance of the mandate from the United States
Court of Appeals for the Federal Circuit will immediately dissolve the stay pending appeal and that the Permanent Injunction, to the extent the Permanent Injunction is not vacated on appeal, will thereby immediately take effect. The parties agree
that, within two (2) business days thereafter, they will submit to the District Court a request for action based on the applicable alternative among the proposed Consent Orders included in Exhibit C-1, hereto, such Consent Orders to be
modified as appropriate by the parties to the extent necessary to conform with the decision of the United States Court of Appeals for the Federal Circuit. If the parties do not mutually agree on the Consent Order within the above referenced
timeframe, either party may submit the applicable proposed Consent Order attached in Exhibit C-1. After any decision by the United States Court of Appeals for the Federal Circuit, both parties agree not to further appeal the Verizon Litigation. The
parties shall promptly proceed with any and all additional procedures needed to dismiss with prejudice the Verizon Litigation. The parties agree that the settlement of the Verizon Litigation is intended solely as a compromise of disputed claims,
counterclaims and defenses. 
 4.2. Dismissal of the Vonage Litigation. Within five (5) days after the Effective Date, the
parties shall cause their respective counsel to execute and file a Stipulation of Dismissal With Prejudice in the form set forth in Exhibit D (the “Order of Dismissal”) dismissing with prejudice all claims between the parties in the
Vonage Litigation. The parties shall promptly proceed with any and all additional procedures needed to dismiss with prejudice the Vonage Litigation. The parties agree that the settlement of the Vonage Litigation is intended solely as a compromise of
disputed claims, counterclaims and defenses. 
 4.3 The parties agree that they shall bear their own costs, expenses and attorneys’ fees
relating to the Verizon Litigation, the Vonage Litigation and to the negotiation of this Agreement. 
 ARTICLE V 
 CONSIDERATION 
 5.1. In
consideration of the releases and covenants set forth in Articles II and III hereof, Vonage and Verizon agree to immediately and jointly move the United States District Court for the Eastern District of Virginia to issue an order to effectuate the
payments from Traveler’s Insurance Co. (“Travelers”) and Burke and Herbert Bank as described below: 
  

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 (i) to pay Verizon Eighty Million U.S. Dollars ($80,000,000) by wire transfer and comprised of:

 (a) Sixty Six Million U.S. Dollars ($66,000,000) directly from Traveler’s Insurance Co. (“Travelers”) to Verizon, which
funds Travelers is holding as security from Vonage for the supersedeas bond posted with the Court in the Verizon Litigation dated April 13, 2007; and 
 (b) Fourteen Million U.S. Dollars ($14,000,000) from funds being held in the escrow account established by the Clerk of the Court in the Verizon Litigation at Burke and Herbert Bank to be paid directly to Verizon with
the balance (approximately Eight Million U.S. Dollars ($8,000,000)) in such Court escrow account, including interest, payable to the escrow account established at Deutsche Bank as described in subsection (ii) below; 
 (ii) Vonage agrees to pay by wire transfer to an escrow account established at Deutsche Bank from Vonage in the approximate amount of Thirty Two Million
U.S. Dollars ($32,000,000) such that the total amount payable by Vonage to Verizon pursuant to Section 5.1(i) and to the escrow account in favor of Verizon pursuant to this Section 5.1 (ii) is One Hundred Twenty Million U.S. Dollars
($120,000,000); it being understood and agreed that all amounts in the foregoing Deutsche Bank escrow account, including interest thereon, shall be payable to either (1) Vonage in the event of an Adverse Decision or (2) upon a decision of
the United States Court of Appeals for the Federal Circuit which is not an Adverse Decision (an Adverse Decision shall not include dissolution of the stay pending appeal) to: (A) Verizon in the amount of Thirty Seven Million Five Hundred
Thousand U.S. Dollars ($37,500,000), plus all interest from such Deutsche Bank escrow account, and (B) designated charitable organizations (listed in Exhibit E) in the amount of Two Million Five Hundred Thousand U.S. Dollars
($2,500,000). Within 2 business days of the issuance of the mandate by the United States Court of Appeals for the Federal Circuit, the parties shall jointly notify Deutsche Bank of the proper disposition of the funds held in escrow pursuant to this
paragraph. Either Vonage or Verizon, whoever is the recipient of the funds from Deutsche Bank pursuant to this paragraph (but not the charitable organizations listed in Exhibit E), shall pay Deutsche Bank the fee for administration of the account.
If either party is required to seek relief from the court in order to obtain the other party’s direction to Deutsche Bank for the release of the funds to it, the parties agree that the party not providing proper direction to Deutsche Bank shall
pay the other party’s reasonable attorney’s fees in seeking such relief. 
 5.2. The parties agree this is a settlement of
litigation and that the foregoing consideration does not represent a royalty for the infringement alleged in the Verizon Litigation and is fair consideration for resolution of the litigation in the present circumstances. Further, this Agreement is
the result of compromise between Verizon and Vonage in the claims and actions described herein and shall never for any purpose be considered an admission of liability, fault, and/or responsibility by Verizon or Vonage; nor shall the existence or
performance of any obligation under this Agreement constitute or be construed as any admission of any liability, fault, or responsibility whatsoever by Verizon or Vonage. 
  

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 5.3. All taxes imposed upon the recipient of benefits under this Agreement shall be paid by the party
receiving such benefit(s). 
 ARTICLE VI 
 TERM AND TERMINATION 
 6.1. Term. The term of this Agreement shall commence upon the
Effective Date and, unless terminated as permitted pursuant to this Article VI, shall continue until the expiration of the last-to-expire Vonage Patent and the Verizon Patents. 
 6.2. Termination by Verizon. Upon the occurrence of any of the following (the “Vonage Events of Termination”), Verizon shall have the
right to terminate this Agreement upon written notice to Vonage: 
 (a) Failure of Vonage to make payments to Verizon as required by
Section 5.1, provided Vonage shall have five (5) days from the date of notice by Verizon to cure such failure to pay; 
 (b)
Breach by Vonage or any Vonage Affiliate of any material provision of this Agreement, other than failure to make payments to Verizon as required by Section 5.1, provided, Vonage shall have ninety (90) days from the date of notice by
Verizon to cure such breach; 
 (c) Any attempt by Vonage, any Vonage Affiliate or any third party (including a trustee in bankruptcy) to
recover or challenge any payments made by Vonage pursuant to Section 5.1; and 
 (d) Any attempt by Vonage or any Vonage Affiliate to
challenge the validity or enforceability of the Verizon Patents. 
 6.3. Termination by Vonage. Upon the occurrence of any of the
following (the “Verizon Events of Termination”), Vonage shall have the right to terminate this Agreement upon written notice to Verizon: 
 (a) Breach by Verizon or any Verizon Affiliate of any material provision of this Agreement, provided, Verizon shall have ninety (90) days from the date of notice by Verizon to cure such breach; and 
  

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 (b) Any attempt by Verizon or any Verizon Affiliate to challenge the validity or enforceability of the
Vonage Patents. 
 6.4 Effect of Termination. In the event of termination of this Agreement pursuant to Section 6.2, Sections
2.1, 2.2 (but only if Verizon has received and is able to retain all of the payments required pursuant to Section 5.1) and 3.1 remain in full force and effect, and Sections 3.2 and 3.3 shall immediately terminate and be of no force and effect.
In the event of termination of this Agreement pursuant to Section 6.3, Sections 2.1, 2.2 and 3.2 remain in full force and effect, and Section 3.1 shall immediately terminate and be of no force and effect. 
 ARTICLE VII 
 ASSIGNMENT 

 7.1 Assignment. Except and to the extent expressly set forth in Section 7.2, neither party may assign or otherwise transfer
this Agreement or any right or permission hereunderto any Third Party without the prior written consent of the other party. Any assignment or transfer in violation of this Section 7.1 shall be null and void. Subject to the foregoing, this
Agreement shall be binding upon and inure to the benefit of the parties and their permitted successors and assigns. 
 7.2 Business
Combination. Neither party shall assign or otherwise transfer this Agreement or any rights or obligations under this Agreement to any Third Party, whether by assignment, operation of law or otherwise. The party may assign or otherwise transfer
this Agreement or any rights or benefits of this Agreement to an Affiliate of the party who agrees in writing to be bound by the terms and conditions of this Agreement. Upon any assignment by Vonage to a Third Party of this Agreement or the
covenants or benefits of this Agreement, the covenant not to sue extended to Vonage and its Affiliates pursuant to Section 3.2 of this Agreement shall immediately terminate. 
 Notwithstanding the foregoing, in the event of any Business Combination (hereinafter defined) which results in Additional Subscribers to Vonage after the
Business Combination, then the covenant not to sue set forth in Section 3.2 of this Agreement will extend to the Additional Subscribers to the Vonage Products to the extent that the total number of Vonage Subscribers (hereinafter defined)
resulting after such Business Combination is no greater than the number determined by multiplying the Growth Rate (hereinafter defined) by the number of subscribers of Vonage Products immediately prior to the Business Combination (“Adjusted
Vonage Subscribers”) without the payment of any additional amounts to be paid to Verizon by Vonage pursuant to Section 5.1 of this Agreement. If the aggregate number of Vonage Subscribers after such Business Combination is greater than the
number of Adjusted Vonage Subscribers, then the 

  

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covenant not to sue set forth in Section 3.2 of this Agreement shall be limited during the twelve month period after the Business Combination to the
Adjusted Vonage Subscribers and any Vonage Subscribers in excess of such Adjusted Vonage Subscribers will not be subject to the covenants not to sue set forth in Section 3.2 of this Agreement. Notwithstanding the foregoing, beginning twelve
(12) months after the Business Combination, the number of Vonage Subscribers that can enjoy the benefit of the covenant not to sue set forth in Section 3.2 shall be increased by multiplying the Growth Rate during the preceding twelve
(12) month period times the number of Vonage Subscribers that enjoyed the benefit of the covenant not to sue set forth in Section 3.2 at the end of such twelve (12) month period. Additionally, in any Business Combination, no release,
license or covenant not to sue, express or implied, shall extend to products and services of the acquired or acquiring company or their assets in such Business Combination, except and to the extent that the subscribers of such products and services
become Additional Subscribers after the Business Combination pursuant to this Section 7.2. If a Business Combination results in Vonage Subscribers in excess of Adjusted Vonage Subscribers, Vonage and Verizon agree to discuss in good faith
terms, including additional compensation to Verizon, under which a covenant not to sue may be granted for such Vonage Subscribers in excess of the Adjusted Vonage Subscribers and for any products and services of the acquired or acquiring company or
their assets in such Business Combination. 
 If an Affiliate of Vonage ceases to be an Affiliate of Vonage (“Former Affiliate”), the covenant not
to sue set forth in Section 3.2 of this Agreement shall cease to apply to such Former Affiliate as of the date the Former Affiliate ceases to be an Affiliate of Vonage under this Agreement. If a Person becomes an Affiliate of Vonage after the
Effective Date (“New Affiliate”), such New Affiliate shall only be entitled to the covenant not to sue set forth in Section 3.2 of this Agreement to the extent the total number of Vonage subscribers for Vonage Products, including
those of the New Affiliate, do not exceed the number of Vonage subscribers allowed to receive the benefit of the covenant not to sue set forth in Section 3.2 pursuant to the above. Nothing in this paragraph shall restrict Vonage’s ability
to restructure itself and its Affiliates with no substantive effect on the Vonage business as it was conducted immediately prior to such restructure. Subject to the foregoing, this Agreement shall be binding upon and inure to the benefit of the
Parties and their permitted successors and assigns. 
 As used above, “Growth Rate” means (i) for any Business Combination occurring during
the first six (6) months after the Effective Date, the average growth rate in Vonage subscribers for the Vonage Products during the immediately preceding six (6) months, and (ii) for any Business Combination occurring after the first
six (6) months after the Effective Date, the average growth rate in Vonage subscribers for the Vonage Products during the immediately preceding twelve (12) months. As used above, “Additional Subscribers” means additional
subscribers of the Vonage Products as a result of a Business Combination where the VoIP and/or wireless products and services used by such additional subscribers are not already covered by a covenant not to sue or license under the Verizon Patents.
As used above, “Vonage Subscribers” means the total of (i) the subscribers of Vonage Products immediately prior to the Business Combination, and (ii) the additional subscribers of Vonage Products after the Business Combination.
As used above, a “Business Combination” means a transaction or series of related transactions in which either (i) all or substantially all of the business or assets of Vonage are sold or otherwise transferred to a third party, whether
by assignment, operation of law or otherwise; (ii) Vonage undergoes a 

  

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Change of Control; (iii) Vonage or its Affiliate acquires any business or assets from a third party, whether by assignment, operation of law or
otherwise; or (iv) Vonage or any of its Affiliates acquires, directly or indirectly, more than fifty (50%) of the voting power with respect to the election of directors or similar managing authority of any third party. As used above, a
“Change of Control” means a transaction or series of related transactions in which either (i) Vonage consolidates or merges with or into another Person, or (ii) any Person consolidates with, or merges with or into, Vonage, in
each case unless the direct holders of voting power with respect to the election of directors or similar managing authority of Vonage immediately prior to the transaction or series of related transactions will hold, directly or indirectly, more than
fifty (50%) of the voting power with respect to the election of directors or similar managing authority of the surviving entity immediately after the transaction or series of related transactions. 
 ARTICLE VIII 
 MISCELLANEOUS
PROVISIONS 
 8.1. Representations and Warranties. 
 (a) Vonage represents and warrants as of the Effective Date that: (i) Vonage or a Vonage Affiliate owns the entire, right title and interest in and
to the Vonage Patents, and has the right to grant releases and covenants not to sue with respect to the Vonage Patents of the full scope set forth herein without payment of any consideration to any Vonage Affiliate or Third Party, (ii) to the
knowledge of Vonage, the Vonage Patents are valid and enforceable, and (iii) it has not assigned or otherwise transferred to any other Person any rights to enforce any of the Vonage Patents or to any causes of action, damages or other remedies,
or any Vonage Patents, claims, counterclaims or defenses, relating to the Vonage Litigation or Vonage Patents. Vonage further represents and warrants that it is represented by counsel in this matter and that it understands the legal import of and
agrees with the rights, releases and covenants not to sue granted to Verizon and Verizon Affiliates pursuant to this Agreement. 
 (b)
Verizon represents and warrants as of the Effective Date that: (i) Verizon or a Verizon Affiliate owns the entire, right title and interest in and to the Verizon Patents, and has the right to grant releases and covenants not to sue with respect
to the Verizon Patents of the full scope set forth herein without payment of any consideration to any Vonage Affiliate or Third Party, (ii) to the knowledge of Verizon, the Verizon Patents are valid and enforceable, and (iii) it has not
assigned or otherwise transferred to any other Person any rights to enforce any of the Verizon Patents or to any causes of action, damages or other remedies, or any Verizon Patents, claims, counterclaims or defenses, relating to the Verizon
Litigation or Verizon Patents. Verizon further represents and warrants that it is represented by counsel in this matter and that it understands the legal import of and agrees with the rights, releases covenants not to sue granted to Vonage and
Vonage Affiliates pursuant to this Agreement. 
 (c) Nothing contained in this Agreement shall be construed as: 
  

 - 12 - 

 (i) a warranty or representation by either party that any manufacture, sale, use or other disposition of
products by the other party has been or will be free from infringement of any of the Vonage Patents/Verizon Patents; 
 (ii) an agreement by
either party to bring or prosecute actions or suits against third parties for infringement, or conferring any right to the other party to bring or prosecute actions or suits against third parties for infringement; 
 (iii) conferring any right to the other party to use in advertising, publicity, or otherwise, any trademark, trade name or names of either party, or any
contraction, abbreviation or simulation thereof without the prior written consent of the other party; or 
 (iv) conferring by implication,
estoppel or otherwise, upon either party, any license or other rights under other Vonage Patents/Verizon Patents or any other intellectual property rights, except for the releases and covenants not to sue expressly granted hereunder. 
 8.2. Notices. All notices required or permitted to be given hereunder shall be in writing and shall be delivered by hand, or if dispatched by
prepaid air courier with package tracing capabilities or by registered or certified airmail, postage prepaid, addressed as follows: 
  

			
	If to Vonage:
		
		  	Vonage
		  	 23 Main Street
 Holmdel, NJ 07733

		  	Attn.: Chief Legal Officer
		  	Facsimile: 732-226-0577
	
	Copy to:
		
		  	Steptoe & Johnson
		  	 1330 Connecticut Ave.
 Washington, DC
20006

		  	
		  	Attn.: Scott Doyle, Esq.
	
	If to Verizon:
		
	c/o	  	Verizon
		  	 1515 N. Courthouse Road
 Arlington, VA
22201

		  	Attn: Senior Vice President and Deputy General Counsel
		  	Facsimile: 703-351-3670

  

 - 13 - 

			
	
	Copy to:
		
		  	Winston & Strawn
		  	 1700 K Street, N.W.
 Washington, DC
20006

		  	
		  	Attn: Charles Molster, Esq.
		  	Facsimile: 202-282-5100

 Such notices shall be deemed to have been served when received by addressee. Either party may give written notice
of a change of address and, after notice of such change has been received, any notice or request shall thereafter be given to such party as above provided at such changed address. 
 8.3. Publicity. Neither party will issue a press release or any other announcement regarding this Agreement or the relationship contemplated
herein unless both parties provide prior consent in writing; said mutually agreed press release is attached hereto as Exhibit F. Notwithstanding the foregoing, either party may issue any filings required by law, regulation or court order,
provided such party shall give the other party a reasonable opportunity to comment on such filings. 
 8.4. Governing Law. This
Agreement and matters connected with the performance thereof shall be construed, interpreted, applied and governed in all respects in accordance with the laws of the United States of America and the State of New York, without reference to conflict
of laws principles. 
 8.5. Jurisdiction. Vonage and Verizon agree (a) that all disputes and litigation arising out of this
Agreement, its construction, interpretation and matters connected with its performance be subject to the exclusive jurisdiction of the federal court in the Eastern District of Virginia located in Alexandria, Virginia (the “Court”),
(b) the Court shall retain jurisdiction to enforce the terms of the Consent Order and this Agreement, and (c) to submit any disputes, matters of interpretation, or enforcement actions arising with respect to the subject matter of this
Agreement exclusively to the Court. The parties hereby waive any challenge to the jurisdiction or venue of the Court over these matters. 
 8.6 Enforceability of Agreement. If any provision of this Agreement is held to be illegal or unenforceable, such provision shall be limited or eliminated to the minimum extent necessary so that the remainder of this Agreement will
continue in full force and effect and be enforceable. The parties agree to negotiate in good faith an enforceable substitute provision for any invalid or unenforceable provision that most nearly achieves the intent of such provision. 
 8.7 Entire Agreement. This Agreement embodies the entire understanding of the parties with respect to the subject matter hereof, and merges all
prior discussions between them, and neither of the parties shall be bound by any conditions, definitions, warranties, understandings, or representations with respect to the subject matter hereof other than as 

  

 - 14 - 

 
expressly provided herein. No oral explanation or oral information by either party hereto shall alter the meaning or interpretation of this Agreement.

 8.8 Modification; Waiver. No modification or amendment to this Agreement, nor any waiver of any rights, will be effective unless
assented to in writing by the party to be charged, and the waiver of any breach or default will not constitute a waiver of any other right hereunder or any subsequent breach or default. 
 8.9 Construction; Language. Any rule of construction to the effect that ambiguities are to be resolved against the drafting party will not be
applied in the construction or interpretation of this Agreement. As used in this Agreement, the words “include” and “including” and variations thereof, will not be deemed to be terms of limitation, but rather will be deemed to be
followed by the words “without limitation.” The headings in this Agreement will not be referred to in connection with the construction or interpretation of this Agreement. This Agreement is in the English language only, which language
shall be controlling in all respects, and all notices under this Agreement shall be in the English language. 
 8.10 Counterparts.
This Agreement may be executed in counterparts or duplicate originals, both of which shall be regarded as one and the same instrument, and which shall be the official and governing version in the interpretation of this Agreement. This Agreement may
be executed by facsimile signatures and such signatures shall be deemed to bind each party as if they were original signatures. 
 8.11
Vonage Board Approval. This Agreement is subject to the approval of the Board of Directors of Vonage, which approval shall be obtained by no later than the close of business (i.e., 5:00 PM EDT) October 26, 2007. If such approval is not
obtained, the Agreement is null and void ab initio. 
  

 - 15 - 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed below by their respective
duly authorized officers. 
  

									
	VONAGE HOLDINGS CORP.	 		 	VERIZON SERVICES CORP.
					
	By:	 	 /s/ Sharon A. O’Leary
	 		 	By:	 	 /s/ John Thorne

	Name:	 	Sharon A. O’Leary	 		 	Name:	 	John Thorne
	Title:	 	Executive Vice President and Chief Legal Officer	 		 	Title:	 	Senior Vice President and Deputy General Counsel

  

 - 16 - 

 EXHIBIT A 
 LIST OF UNITED STATES “VERIZON PATENTS” 
 Issued United States Patents 
 US 6,104,711 
 US 6,282,574 
 US 6,215,790 
 US 6,157,636 
 US 6,205,139 
 US 6,539,015 
 US 6,295,292 
 US 6,157,648 
 US 6,292,481 
 US 6,839,340 
 US 6,289,010 
 US 6,137,869 
 US 6,430,275 
 US 6,359,880 
 US 6,542,497 
 US 7,088,705 
 US 6,721,306 
 US 6,298,062 
 US 6,707,797 
 US 6,457,043 
 US 6,031,896 
 US 7,116,656 
 US 6,128,304 
  

 - 17 - 

 EXHIBIT B 
 LIST OF UNITED STATES “VONAGE PATENTS” 
 Issued United States Patents 
 US 4,782,485 
 US 5,018,136 
 US 5,444,707 
  

 - 18 - 

 EXHIBIT C 
 CONSENT ORDER REGARDING SETTLEMENT PAYMENTS 
 IN THE UNITED STATES DISTRICT COURT

 FOR THE EASTERN DISTRICT OF VIRGINIA 
 Alexandria Division 
  

							
	VERIZON SERVICES CORP., et al.,	  	)	  		  	
		  	)	  		  	
		  	)	  		  	
	 Plaintiffs,
	  	)	  		  	
		  	)	  		  	
	v.	  	)	  	 1:06cv682 (CMH/BRP)
	  	
		  	)	  		  	
	VONAGE HOLDINGS CORP., et al.,	  	)	  		  	
		  	)	  		  	
		  	)	  		  	
	 Defendants.
	  	)	  		  	

 CONSENT ORDER 
 UPON CONSIDERATION of the agreement of the parties, as reflected by the signatures of their counsel below, it is hereby 
 ORDERED that Travelers Insurance Co. (“Travelers”) shall pay $66 million to Verizon Communications Inc. (“Verizon”), by wire transfer
immediately upon the entry of this Order, which funds Travelers is holding as security from Vonage Holdings Corp. and Vonage America Inc. (“Vonage” or the “Vonage Defendants”) for the supersedeas bond which Travelers issued to
secure payment of the money judgment entered in connection with this action and which it posted with this Court dated April 13, 2007; and it is further 
 ORDERED that, pursuant to the parties’ settlement agreement, once the $66 million has been wired to Verizon as stated above, the Judgment entered in this action will have been fully satisfied, and therefore the
Supersedeas Bond filed with the Court on April 13, 2007 will no 

  

 - 19 - 

 
longer be required and shall be deemed fully and unconditionally discharged, released and exonerated and Travelers shall be released from any and all past,
present, and future liability in connection with the issuance of the Supersedeas Bond; and it is further 
 ORDERED that, upon Verizon’s
receipt of the $66 million wire transfer, which receipt Verizon shall promptly confirm to Vonage and the Clerk of the Court, the Clerk of the Court is hereby directed to forthwith release the said Supersedeas Bond recorded with this Court to William
Bosch, Esq. of Steptoe & Johnson LLP for immediate return to Travelers; and it is further 
 ORDERED that the Clerk of this Court
shall cause $14 million of the monies being held in the escrow account established in this case at Burke and Herbert Bank to be delivered to Verizon by wire transfer within 2 business days from the date of this Order; and it is further 

ORDERED that the Clerk of the Court shall cause all remaining monies contained in this same escrow account to be delivered to Deutsche Bank by wire
transfer within 2 business days of the date of this Order, and the parties shall provide to the Clerk of the Court all appropriate wire transfer information immediately upon entry of this Order. 
 ENTERED this      day of October, 2007 
  

			
	Alexandria, Virginia	 	  

		 	United States District Judge

  

	
	WE ASK FOR THIS:
	
	  

	Charles B. Molster, III (VA Bar No. 23613)
	 Winston & Strawn LLP
 1700 K Street,
N.W.
 Washington, DC 20006-3817

  

 - 20 - 

	
	(202) 282-5988
	
	Dan K. Webb*
	Peter C. McCabe*
	Peggy M. Balesteri*
	 Winston & Strawn LLP
 35 West Wacker
Dr.
 Chicago, Illinois 60601

	
	John Thorne*
	Robert H. Griffen*
	VERIZON
	 1515 North Courthouse Road
 Arlington, Virginia 22201

	
	Counsel for VERIZON SERVICES CORP.,
	VERIZON LABORATORIES INC. and
	VERIZON COMMUNICATIONS INC.

  

			
	  

	Scott W. Doyle	 	(VA Bar No. 36915)
	William M. Bosch	 	(VA Bar No. 34589)
	Seth A. Watkins	 	(VA Bar No. 44639)
	Daniel L. Girdwood	 	(VA Bar No. 68177)
	Roger E. Warin*	 	
	Steven J. Barber*	 	
	Jose R. Gonzalez-Magaz*
	STEPTOE & JOHNSON LLP
	 1330 Connecticut Ave., NW
 Washington, DC
20036-1795

	
	 Counsel for VONAGE HOLDINGS CORP.
 and VONAGE
AMERICA, INC.

	
	  
 *  Counsel admitted pro hac vice

  

 - 21 - 

 EXHIBIT C-1 
 APPLICABLE CONSENT ORDERS 
 IN THE UNITED STATES DISTRICT COURT 
 FOR THE EASTERN DISTRICT OF VIRGINIA 
 Alexandria Division 
  

							
	VERIZON SERVICES CORP., et al.,	  	)	  		  	
		  	)	  		  	
		  	)	  		  	
	 Plaintiffs,
	  	)	  		  	
		  	)	  		  	
	v.	  	)	  	 1:06cv682 (CMH/BRP)
	  	
		  	)	  		  	
	VONAGE HOLDINGS CORP., et al.,	  	)	  		  	
		  	)	  		  	
		  	)	  		  	
	 Defendants.
	  	)	  		  	

 CONSENT ORDER 
 UPON CONSIDERATION of the decision of the United States Court of Appeals for the Federal Circuit dated September 27, 2007, and the issuance of the
mandate of the Federal Circuit on                     , and the agreement of the parties, as reflected by the signatures of their counsel
below, it is hereby 
 ORDERED that this Court’s Permanent Injunction Order of April 12, 2007, as modified on appeal, which has
been in effect since the date that the mandate was issued by the Federal Circuit, is hereby superseded and replaced with this CONSENT ORDER; and it is further 
 ORDERED that, based on the parties’ agreement, Verizon’s claims of infringement of the ‘880 patent as set forth in Count 7 of its Amended Complaint for Injunctive and Other Relief, and Vonage’s
claims for non-infringement, invalidity and enforceability of the ‘880 patent as set forth in Counts VII, XIV, and XV of Vonage’s Answer and Counterclaim, are hereby dismissed with 

  

 - 22 - 

 
prejudice, each party to bear its own costs and expenses, including attorney’s fees, and it is further 
 ORDERED that this Court’s order of August 23, 2007, approving the parties’ Stipulation regarding Vonage’s payment of costs incurred
by Verizon in this action is hereby vacated, as it has been mooted by the parties’ settlement agreement; and it is further 
 ORDERED
that the Vonage Defendants, together with their officers, agents, servants, employees, corporate affiliates, corporate parent, attorneys, and each and every person in active concert or participation with them (collectively the “Vonage Enjoined
Parties”), are hereby restrained and enjoined, pursuant to 35 U.S.C. § 283 and Fed. R. Civ. P. 65(c), from further infringing Claim 27 of U.S. Patent No. 6,282,574 and Claim 20 of U.S. Patent No. 6,104,711 (the “Infringed
Claims”) and are further enjoined from directly or indirectly making, using, selling, offering to sell or importing into the United States any product or service which employs any method embodied in the Infringed Claims, or any method that is
only a colorable variation thereof, whether alone or in combination with other products or services, and from otherwise infringing or inducing others to infringe the Infringed Claims, including but not limited as follows: 
 1. Regarding Claim 27 of U.S. Patent No. 6,282,574, the Vonage Enjoined Parties are further specifically enjoined from making, using, offering for
sale, selling or importing into the United States any system, method, or device, or portion of the foregoing, which implements the method used by Vonage, or any method that is only a colorable variation thereof, for processing a telephone call made
by a Vonage customer a device connected to the public switched telephone network (“PSTN”), in which a Vonage customer’s calling device sends a SIP INVITE message to a Vonage proxy server, which from the message produces a telephone

  

 - 23 - 

 
number for the called party on the PSTN, and where a Vonage media gateway subsequently sends to the calling device (whether directly or indirectly) a reply
message, such as a SIP 183 SESSION PROGRESS message or a SIP 200 OK message, that includes the telephone number of the called party and the IP address of the Vonage media gateway, or of an RTP relay if the call is routed through an RTP relay. The
Vonage Enjoined Parties are further specifically enjoined from making, using, offering for sale, selling, or importing into the United States any system, method, or device, or portion of the foregoing, which implements the method used by Vonage, or
any method that is only a colorable variation thereof, for processing a telephone call made to a Vonage customer from a device connected to the public switched telephone network (“PSTN”), in which a Vonage media gateway connected to the
PSTN sends a SIP INVITE message to a Vonage proxy server, which from the message produces the Vonage customer’s telephone number, and where the Vonage customer’s equipment subsequently sends to the media gateway a reply message, such as a
SIP 200 OK message, that includes the Vonage customer’s telephone number and the IP address of the Vonage media gateway, or of an RTP relay if the call is routed through an RTP relay 
 2. Regarding Claim 20 of U.S. Patent No. 6,104,711, the Vonage Enjoined Parties are further specifically enjoined from making, using, offering for
sale, selling or importing into the United States any system, method, or device, or portion of the foregoing, that implements the method now employed by Vonage, or any method that is only a colorable variation thereof, for processing a telephone
call to a Vonage subscriber from a device connected to the public switched telephone network (“PSTN”), in which a Vonage proxy server receives a SIP INVITE message and, based on conditions and data set forth in the Vonage customer’s
xml profile that provide more than one option for directing that particular call, the call is subsequently directed to 

  

 - 24 - 

 
an IP address for routing the call to one of those options, such as an IP address for routing the call to another number specified by the Vonage customer,
voicemail, or any other number which the Vonage customer has selected pursuant to features which Vonage has designated as “call forwarding,” “voicemail,” “simulRing,” “call hunt,” “call waiting” or
similar features, and in which the selected destination IP address is eventually sent back to the calling party via the Vonage media gateway, such as within a SIP 200 OK message, regardless of whether or not the call is routed through an RTP relay.
The Vonage Enjoined Parties are further specifically enjoined from making, using, offering for sale, selling, or importing into the United States any system, method, or device, or portion of the foregoing, that implements the method now employed by
Vonage, or any method that is only a colorable variation thereof, to check whether the status of a Vonage customer’s account is ACTIVE or SUSPEND, and which status check occurs on all calls made either to or from a Vonage customer, and,
depending on the customer’s status, routes calls to different IP addresses depending on the status of the Vonage customer’s account – more specifically, Vonage’s routing of calls to an asterisk server if the Vonage
customer’s account is in SUSPEND status and through a Vonage media gateway if the Vonage customer’s account is in ACTIVE status. 
 3. This injunction shall become effective immediately and Vonage shall forthwith provide written notice of this injunction to its officers, directors, agents, servants, representatives, attorneys, employees, subsidiaries, and affiliates.
However, it is 
 FURTHER ORDERED that this Injunction Order, including the notice obligation of paragraph no. 3 immediately above, is hereby
STAYED pursuant to the settlement agreement between the parties, but the injunction embodied herein shall become immediately effective 

  

 - 25 - 

 
(absent further Order of the Court) within 7 days of the Court being notified of any of the following events: 
 A. Vonage fails to make any payment due to Verizon under the settlement agreement between the parties, and fails to fully cure such non-payment, breach or
default within 5 days of written notice thereof; or 
 B. Vonage becomes a debtor, either voluntarily or involuntarily, under any chapter of
the United States Bankruptcy Code or seeks protection from its creditors under any other federal or state law, within 91 days of receipt by Verizon of the last payment due Verizon under the parties’ settlement agreement; and it is. 

FURTHER ORDERED, that the injunction provisions of this CONSENT ORDER shall be vacated and dissolved and otherwise null and void 91
days after the final payment has been received by Verizon, and all of Verizon’s claims of infringement under the ‘711 and ‘574 patents are dismissed with prejudice, unless the Court has received notification that any of the following
events has occurred: 
 A. Vonage has not made all payments to Verizon under the parties’ settlement agreement and 
 B. Vonage has become a debtor, either voluntarily or involuntarily, under any chapter of the United States Bankruptcy Code or sought protection from its
creditors under any other federal or state law, within 91 days after the final payment has been received by Verizon pursuant to the parties’ settlement agreement; and 
 C. An attempt has been made by any person or entity to seek recovery from Verizon of any monies paid by Vonage to Verizon pursuant to the terms of the parties’ settlement 

  

 - 26 - 

 
agreement within 91 days after the final payment of such monies has been received by Verizon. 
 4. This Court hereby retains jurisdiction to enforce the terms of this Consent Order and terms of the settlement agreement between the parties, but in
all other respects this case is hereby dismissed with prejudice, each party to bear its own costs and expenses, including attorneys’ fees. 
 ENTERED
this      day of             , 2007. 
  

			
	Alexandria, Virginia	 	  

		 	United States District Judge

  

	
	WE ASK FOR THIS:
	
	  

	Charles B. Molster, III (VA Bar No. 23613)
	Winston & Strawn LLP
	1700 K Street, N.W.
	Washington, DC 20006-3817
	(202) 282-5988
	
	Dan K. Webb*
	Peter C. McCabe*
	Peggy M. Balesteri*
	Winston & Strawn LLP
	35 West Wacker Dr.
	Chicago, Illinois 60601
	
	John Thorne*
	Robert H. Griffen*
	VERIZON
	1515 North Courthouse Road
	Arlington, Virginia 22201
	
	Counsel for VERIZON SERVICES CORP.,

  

 - 27 - 

	
	VERIZON LABORATORIES INC. and
	VERIZON COMMUNICATIONS INC.

  

			
	  

	Scott W. Doyle	 	(VA Bar No. 36915)
	William M. Bosch	 	(VA Bar No. 34589)
	Seth A. Watkins	 	(VA Bar No. 44639)
	Daniel L. Girdwood	 	(VA Bar No. 68177)
	Roger E. Warin*	 	
	Steven J. Barber*	 	
	Jose R. Gonzalez-Magaz*
	STEPTOE & JOHNSON LLP
	 1330 Connecticut Ave., NW
 Washington, DC
20036-1795

	
	 Counsel for VONAGE HOLDINGS CORP.
 and VONAGE
AMERICA, INC.

	
	  
 *  Counsel admitted pro hac vice

  

 - 28 - 

 IN THE UNITED STATES DISTRICT COURT 
 FOR THE EASTERN DISTRICT OF VIRGINIA 
 Alexandria Division 
  

							
	VERIZON SERVICES CORP., et al.,	  	)	  		  	
		  	)	  		  	
		  	)	  		  	
	 Plaintiffs,
	  	)	  		  	
		  	)	  		  	
	v.	  	)	  	 1:06cv682 (CMH/BRP)
	  	
		  	)	  		  	
	VONAGE HOLDINGS CORP., et al.,	  	)	  		  	
		  	)	  		  	
		  	)	  		  	
	 Defendants.
	  	)	  		  	

 CONSENT ORDER 
 UPON CONSIDERATION of the decision of the United States Court of Appeals for the Federal Circuit dated September 27, 2007, as modified on rehearing
on                     , and the issuance of the mandate of the Federal Circuit on
                , and the agreement of the parties, as reflected by the signatures of their counsel below, it is hereby 
 ORDERED that this Court’s Permanent Injunction Order of April 12, 2007, as modified on appeal, which has been in effect since the date that the
mandate was issued by the Federal Circuit, is hereby vacated; and it is further 
 ORDERED that, based on the parties’ agreement, any
remaining claims pending in this action are dismissed with prejudice, each party to bear its own costs and expenses, including attorney’s fees, and it is further 
 ORDERED that this Court’s Order of August 23, 2007, approving the parties’ Stipulation regarding Vonage’s payment of costs incurred by Verizon in this action is hereby vacated, as it has been
mooted by the parties’ settlement agreement; and it is further 
  

 - 29 - 

 ORDERED that this Court hereby retains jurisdiction to enforce the terms of the terms of the settlement
agreement between the parties, but in all other respects this case is hereby dismissed with prejudice, each party to bear its own costs and expenses, including attorneys’ fees. 
 ENTERED this      day of             , 2007. 
  

			
	Alexandria, Virginia	 	  

		 	United States District Judge

  

	
	WE ASK FOR THIS:
	
	  

	Charles B. Molster, III (VA Bar No. 23613)
	Winston & Strawn LLP
	1700 K Street, N.W.
	Washington, DC 20006-3817
	(202) 282-5988
	
	Dan K. Webb*
	Peter C. McCabe*
	Peggy M. Balesteri*
	Winston & Strawn LLP
	35 West Wacker Dr.
	Chicago, Illinois 60601
	
	John Thorne*
	Robert H. Griffen*
	VERIZON
	1515 North Courthouse Road
	Arlington, Virginia 22201
	
	Counsel for VERIZON SERVICES CORP.,
	VERIZON LABORATORIES INC. and
	VERIZON COMMUNICATIONS INC.

  

 - 30 - 

			
	
	  

	Scott W. Doyle	 	(VA Bar No. 36915)
	William M. Bosch	 	(VA Bar No. 34589)
	Seth A. Watkins	 	(VA Bar No. 44639)
	Daniel L. Girdwood	 	(VA Bar No. 68177)
	Roger E. Warin*	 	
	Steven J. Barber*	 	
	Jose R. Gonzalez-Magaz*
	STEPTOE & JOHNSON LLP
	1330 Connecticut Ave., NW
	Washington, DC 20036-1795
	
	 Counsel for VONAGE HOLDINGS CORP.
 and VONAGE
AMERICA, INC.

	
	  
 *  Counsel admitted pro hac vice

  

 - 31 - 

 IN THE UNITED STATES DISTRICT COURT 
 FOR THE EASTERN DISTRICT OF VIRGINIA 
 Alexandria Division 
  

							
	VERIZON SERVICES CORP., et al.,	  	)	  		  	
		  	)	  		  	
		  	)	  		  	
	 Plaintiffs,
	  	)	  		  	
		  	)	  		  	
	v.	  	)	  	 1:06cv682 (CMH/BRP)
	  	
		  	)	  		  	
	VONAGE HOLDINGS CORP., et al.,	  	)	  		  	
		  	)	  		  	
		  	)	  		  	
	 Defendants.
	  	)	  		  	

 CONSENT ORDER 
 UPON CONSIDERATION of the decision of the United States Court of Appeals for the Federal Circuit dated September 27, 2007, as modified on
                    , and the issuance of the mandate of the Federal Circuit on
            , and the agreement of the parties, as reflected by the signatures of their counsel below, it is hereby 
 ORDERED that this Court’s Permanent Injunction Order of April 12, 2007, as modified on appeal, to the extent not vacated or modified, is hereby
reinstated; and it is further 
 ORDERED that, based on the parties’ agreement, all claims and counterclaims not covered by the
reinstated injunction are hereby dismissed with prejudice, each party to bear its own costs and expenses, including attorney’s fees, and it is further 
 ORDERED that this Court’s order of August 23, 2007, approving the parties’ Stipulation regarding Vonage’s payment of costs incurred by Verizon in this action is hereby vacated, as it has been
mooted by the parties’ settlement agreement; and it is further 
  

 - 32 - 

 3. To the extent hereby reinstated, this Injunction Order shall become effective immediately and Vonage
shall forthwith provide written notice of this injunction to its officers, directors, agents, servants, representatives, attorneys, employees, subsidiaries, and affiliates. However, it is 
 FURTHER ORDERED that this Injunction Order, including the notice obligations of paragraph no. 3 immediately above, is hereby STAYED pursuant to the
settlement agreement between the parties, but the injunction embodied herein shall become immediately effective (absent further Order of the Court) within 7 days of the Court being notified of any of the following events: 
 A. Vonage fails to make any payment due to Verizon under the settlement agreement between the parties, and fails to fully cure such non-payment, breach or
default within 5 days of written notice thereof; or 
 B. Vonage becomes a debtor, either voluntarily or involuntarily, under any chapter of
the United States Bankruptcy Code or seeks protection from its creditors under any other federal or state law, within 91 days of receipt by Verizon of the last payment due Verizon under the parties’ settlement agreement; and it is. 

FURTHER ORDERED, that the injunction provisions of this CONSENT ORDER shall be vacated and dissolved and otherwise null and void 91
days after the final payment has been received by Verizon, and all of Verizon’s claims of infringement under the ‘711 and ‘574 patents are dismissed with prejudice, unless the Court has received notification that any of the following
events has occurred: 
 A. Vonage has not made all payments to Verizon under the parties’ settlement agreement and 
  

 - 33 - 

 B. Vonage has become a debtor, either voluntarily or involuntarily, under any chapter of the United
States Bankruptcy Code or sought protection from its creditors under any other federal or state law, within 91 days after the final payment has been received by Verizon pursuant to the parties’ settlement agreement; and 
 C. An attempt has been made by any person or entity to seek recovery from Verizon of any monies paid by Vonage to Verizon pursuant to the terms of the
parties’ settlement agreement within 91 days after the final payment of such monies has been received by Verizon. 
 4. This Court
hereby retains jurisdiction to enforce the terms of this Consent Order and terms of the settlement agreement between the parties, but in all other respects this case is hereby dismissed with prejudice, each party to bear its own costs and expenses,
including attorneys’ fees. 
 ENTERED this      day of
            , 2007. 
  

			
	Alexandria, Virginia	 	  

		 	United States District Judge

  

	
	WE ASK FOR THIS:
	
	  

	Charles B. Molster, III (VA Bar No. 23613)
	Winston & Strawn LLP
	1700 K Street, N.W.
	Washington, DC 20006-3817
	(202) 282-5988
	
	Dan K. Webb*
	Peter C. McCabe*

  

 - 34 - 

	
	Peggy M. Balesteri*
	Winston & Strawn LLP
	 35 West Wacker Dr.
 Chicago, Illinois
60601

	
	John Thorne*
	Robert H. Griffen*
	VERIZON
	1515 North Courthouse Road
	Arlington, Virginia 22201
	
	Counsel for VERIZON SERVICES CORP.,
	VERIZON LABORATORIES INC. and
	VERIZON COMMUNICATIONS INC.

  

 - 35 - 

			
	
	  

	Scott W. Doyle	 	(VA Bar No. 36915)
	William M. Bosch	 	(VA Bar No. 34589)
	Seth A. Watkins	 	(VA Bar No. 44639)
	Daniel L. Girdwood	 	(VA Bar No. 68177)
	Roger E. Warin*	 	
	Steven J. Barber*	 	
	Jose R. Gonzalez-Magaz*
	STEPTOE & JOHNSON LLP
	1330 Connecticut Ave., NW
	Washington, DC 20036-1795
	
	Counsel for VONAGE HOLDINGS CORP.
	and VONAGE AMERICA, INC.
	
	  
 *  Counsel admitted pro hac vice

  

 - 36 - 

 VERIZON CONFIDENTIAL 
 EXHIBIT D 
 IN THE UNITED STATES DISTRICT COURT 
 FOR THE NORTHERN DISTRICT OF TEXAS 
 FORT WORTH
DIVISION 
  

							
	VONAGE HOLDING CORP.,	  	§	  		  	
	 Plaintiff,
	  	§	  		  	
	vs.	  	§	  		  	
		  	§	  	 CIVIL NO. 4-04-CV-548-Y
	  	
	SBC INTERNET SERVICES, INC.,	  	§	  	 Consolidated with 4-05-CV-224-Y

	ET AL,	  	§	  		  	
	 Defendants,
	  	§	  	 §
	  	
	and    §	  		  		  	
		  	§	  		  	
	NORTEL NETWORKS, INC.,	  	§	  		  	
	 Plaintiff,
	  	§	  		  	
	vs.	  	§	  		  	
		  		  		  	
	VONAGE HOLDING CORP.,	  	§	  		  	
		  		  		  	
	 Defendants,
	  	§	  		  	

 STIPULATION OF DISMISSAL WITH PREJUDICE 
 Vonage Holdings Corp. (“Vonage”) respectfully files this Stipulation of Dismissal as to Bell Atlantic Communications, Inc. d/b/a Verizon Long
Distance (“Verizon”). Vonage has agreed to dismiss all claims asserted against Verizon in this case with prejudice in accordance with a Patent Settlement Agreement. Accordingly, pursuant to Federal Rule of Civil Procedure 41(a)(1), Vonage
stipulates to the dismissal with prejudice of all claims asserted in this case against Verizon. The parties further stipulate that they shall bear their own attorneys’ fees, expenses, and costs. 

 VERIZON CONFIDENTIAL 
 DATED: October     , 2007 
  

	
	Respectfully submitted,
	
	ATTORNEYS FOR VONAGE
	HOLDINGS CORP.

 VERIZON CONFIDENTIAL 
 CERTIFICATE OF SERVICE 
 The undersigned certifies that the foregoing document was filed
electronically in compliance with Local Rule CV-5(a) on October     , 2007. As such, this stipulation was served on all counsel who have consented to electronic service. Local Rule CV-5(a)(3)(A). Pursuant to Fed. R. Civ.
P. 5(d) and Local Rule CV-5, all other counsel of record not deemed to have consented to electronic service were served with a true and correct copy of the foregoing by U.S. mail on October     , 2007. 

 VERIZON CONFIDENTIAL 
 EXHIBIT E 
 Charitable Organizations 
 Charities, each to receive $500,000.00: 
  

	 	1.	The Washington Center for Academic Internships and Scholarships 

  

	 	2.	Jobs for America’s Graduates, Inc. 

  

	 	3.	National Academy Foundation 

  

	 	4.	Bishop John T. Walker School for Boys of Washington, DC 

  

	 	5.	Inner-City Scholarship Fund of New York City 

 VERIZON CONFIDENTIAL 
 EXHIBIT F 
 Press Release 
 Press Release Draft 10/24/2007 
 In June 2006, Verizon Services Corp. brought a lawsuit against Vonage Holdings Corp. to
enforce several Verizon patents relating to Voice over Internet Protocol (VoIP) services. 
 In March 2007, a jury held that Vonage is infringing three valid
Verizon patents. The jury awarded $58 million in damages. The trial judge subsequently issued an injunction which was stayed pending Vonage’s appeal. 
 In September 2007, the U.S. Court of Appeals for the Federal Circuit upheld the trial court’s decisions on infringement, validity, and injunction as to two of the Verizon patents (the ‘574 and ‘711) and remanded as to the
third patent (the ‘880). Vonage filed a petition for rehearing which is pending in the Court of Appeals. 
 Today the parties have agreed to resolve the
patent lawsuit. The terms of the resolution depend on how the Court of Appeals decides Vonage’s pending petition for rehearing regarding two of the Verizon patents (the ‘574 and ‘711). If Vonage wins rehearing on either the ‘574
or ‘711 patent or if the injunction is vacated as to the ‘574 or ‘711 patent, Vonage will pay Verizon $80 million. If Vonage does not win rehearing on either the ‘574 or ‘711 patent, or if the stay is lifted reinstating the
injunction, Vonage will pay Verizon $117.5 million. 
 The parties are pleased to have resolved this matter.Settlement Agreement, effective October 27, 2007

 Exhibit 10.38 
 SETTLEMENT AGREEMENT 
 SETTLEMENT AGREEMENT, effective October 27, 2007, by and between
SPRINT COMMUNICATIONS COMPANY L.P., a Limited Partnership organized and existing under the laws of the State of Delaware, with its principal place of business at 6500 Sprint Parkway, Overland Park, Kansas 66251 (“Sprint”), and VONAGE
HOLDINGS CORPORATION, a corporation organized and existing under the laws of the State of Delaware, with its principal place of business at 23 Main Street, Holmdel, New Jersey 07733, and VONAGE AMERICA, INC., a corporation organized and existing
under the laws of the State of Delaware, with its principal place of business at 23 Main Street, Holmdel, New Jersey 07733 (jointly “Vonage”). 
 ARTICLE 1.0 R E C I T A L S 
  

	I.	Sprint filed a patent infringement lawsuit against Vonage (each severally a “Party” and jointly the “Parties”) in the United States District Court for the
District of Kansas, Kansas Court Case No. 05-2433-JWL (the “Litigation”). 

  

	II.	Vonage is the plaintiff in the case of Digital Packet Licensing Inc. v. SBC Internet Services, Inc. et al., Case No. 4-04 CV-548-Y, pending in the United States District
Court for the Northern District of Texas (the “Texas Court”), which alleged patent infringement against Sprint (“the Digital Packet Litigation”). 

  

	III.	 On October 7, 2007, Sprint and Vonage entered in a binding Memorandum of Understanding agreeing, inter alia, (a) to the payment of $80 Million dollars by
Vonage to Sprint; (b) agreeing to dismiss the Litigation; (c) agreeing to dismiss 

	 	 
the Digital Packet Litigation; and (d) agreeing to enter into a Settlement Agreement in accordance with the terms of the MOU.

  

	IV.	On October 19, 2007 Vonage paid Sprint the sum of $80 Million. 

  

	V.	On November 16, 2007, the Parties filed with the Kansas Court a joint motion for dismissal with prejudice, dismissing all claims and counterclaims in the Litigation.

  

	VI.	On November 19, 2007, the Parties filed with the Texas Court a joint motion for dismissal with prejudice, dismissing all claims and counterclaims in the Digital Packet
Litigation. 

  

	VII.	This Agreement is intended to further implement the Binding Memorandum of Understanding executed between the Parties on October 7, 2007 (“MOU”) as referenced in
Paragraph 15 of the MOU. 

 NOW THEREFORE in consideration of the foregoing recitals and the mutual covenants and undertakings
contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, agree as follows: 
  

 - 2 - 

 ARTICLE 2.0 LICENSE FROM SPRINT TO VONAGE 
  

	2.1	Subject to the provisions of Article 7 of this Agreement, Sprint on behalf of itself and its Related Companies as of the date of this Agreement grants to Vonage and its Related
Companies a nonexclusive, fully paid-up, nonrefundable, nonsublicensable, nontransferable (except as provided in this Agreement), personal license to the patents listed in Exhibit A (“Sprint Patents”) for all activities within the Field of
Use in the United States of America during the Term of this Agreement. No license is granted to Vonage other than for activities within the Field of Use, as defined in Paragraph 2.3 of this Agreement. This license continues in effect in the event
Sprint transfers any Sprint Patent to any third party. 

  

	2.2	The Parties acknowledge that the terms of this Settlement Agreement and license granted herein were entered into in compromise of Sprint’s claims of patent infringement against
Vonage and in view of the current operational and financial condition of Vonage. The compensation to be paid Sprint hereunder does not represent the full fair market value of the Sprint Patents and does not constitute an established royalty.

  

	2.3	Field of Use. The Field of Use shall include: 

  

	 	(a)	VoP services where a Vonage customer accesses Vonage’s voice over IP network over a data connection, for example, from a cable or local telecommunications provider, or directly
from Vonage as a mobile virtual network operator (MVNO). 

  

 - 3 - 

	 	(b)	the making of network architectures by assembling equipment when such network architectures are used for Vonage’s VoP services as described in Paragraph 2.3(a) to Vonage
customers. 

  

	 	(c)	the sale or leasing of equipment to Vonage’s customers only to the extent that the equipment is part of the necessary elements to allow Vonage’s customers to use
Vonage’s VoP services as described in Paragraph 2.3(a). 

  

	2.4	Exceptions to Field of Use. Except as provided hereinabove, excluded from the Field of Use are: 

  

	 	(a)	The provision of VOP services from a wireless network owned by Vonage, such network including, without limitation, WiMAX, CDMA, GSM, iDEN, push-to-talk, or any other wireless
carrier solution. 

  

	 	(b)	the making or having made equipment for providing VoP services, except insofar as equipment is specially made or configured to provide or support Vonage’s VoP services as
described in Paragraph 2.3(a). No right is granted to sell equipment to any third party for any use outside the Vonage network. 

  

	 	(c)	any license to sell or lease any equipment, except to the extent the equipment is provided as a necessary element to allow Vonage’s customers to use Vonage’s VoP services
as described in Paragraph 2.3(a). 

  

 - 4 - 

 ARTICLE 3.0 LICENSE FROM VONAGE TO SPRINT 
  

	3.1	Vonage on behalf of itself and its Related Companies grants to Sprint and its Related Companies a nonexclusive license to all of Vonage’s (and its Related Companies’)
current and future patents for voice over packet (“VoP”) technology until such time as Sprint’s license to Vonage, set forth in Article 2.0, terminates. This license continues in effect in the event Vonage transfers any current and/or
future patents for VoP technology to any third party. 

 ARTICLE 4.0 INFRINGEMENT, VALIDITY AND COVENANT NOT TO SUE

  

	4.1	Vonage and its Related Companies agrees that it will not contest the jury verdict in the Litigation, including the jury’s findings that the asserted Sprint patents are valid.

  

	4.2	During the term of this Agreement, Vonage and its Related Companies will not challenge or assist another in challenging the validity, enforceability, or infringement of any Sprint
Patents, so long as the Sprint Patents are not asserted against Vonage and its Related Companies. 

  

	4.3	Mutual Covenants Not To Sue. 

  

	 	(a)	 Sprint and its current Related Companies and future Subsidiaries agree not to assert claims of patent infringement against Vonage and its current Related Companies
and Vonage Strategic Partners (to the extent that the Vonage Strategic Partner makes a reasonable assertion that Vonage has an indemnity obligation) for any of Vonage’s (and Vonage’s current Related Companies) current commercial 

  

 - 5 - 

	 	 
business activities as of the date of this Agreement or previous commercially provided business activities. This covenant is binding on future Subsidiaries
of Sprint only to the extent the Subsidiary is no larger than ten (10) percent of the market value of Sprint at the time of its acquisition by Sprint, and only to the extent the Subsidiary has not previously put Vonage on notice of infringement
or otherwise initiated an infringement action against Vonage. Vonage will have the burden of showing the activities were commercially provided as of the date of this Agreement. This covenant is personal to Vonage and is non-transferable. This
covenant terminates upon any Business Combination (as defined herein) involving Vonage. Nothing herein prevents Sprint or its Related Companies and future Subsidiaries from asserting claims of patent infringement against Vonage Strategic Partners
for activities outside the scope of providing product and services in support of Vonage’s current or previous commercial business activities. Nothing in this Agreement shall preclude or limit Sprint’s ability to assert any claim against
any carrier. This covenant shall extend to the planned use by Vonage customers of dual-mode phones for accessing Vonage’s network, as detailed in Exhibit B attached hereto. Sprint and its Related Companies reserve all rights to enforce any of
its patents against any activities not within the scope of this covenant. This covenant does not apply to the patent portfolio of companies that acquire Sprint, except as it relates to Sprint’s patent portfolio just prior to the acquisition.

  

	 	(b)	 Vonage and its current Related Companies and future Subsidiaries agree not to assert claims of patent infringement against Sprint for any of Sprint’s current

  

 - 6 - 

	 	 
commercial business activities as of the date of this Agreement or previous commercially provided business activities. Sprint will have the burden of showing
the activities were commercially provided. Vonage and its Related Companies reserve all rights to enforce any of its patents against any activities not within the scope of this covenant. Vonage agrees not to assert any other infringement action
against Sprint for any of Sprint’s future business activities unless Sprint first makes a patent infringement claim against Vonage for activities not licensed or not covered by the covenant in subparagraph (a). This covenant is personal to
Sprint and is non-transferable. This covenant terminates upon any Business Combination (as defined herein) involving Vonage. This covenant does not apply to the patent portfolio of companies that enter a Business Combination with Vonage, except as
it relates to Vonage’s patent portfolio just prior to the corporate Business Combination. 

  

	 	(c)	Any legal action within the scope of the Covenants Not To Sue set forth in this Paragraph 4.3 (“Covenant Litigation”) may not be initiated during the Term of this
Agreement. Subsequent to the termination of this Covenant Not To Sue, any damages or relief sought for any legal action based on patent infringement for any of Vonage’s current or previous commercial business activities will be limited to the
period beginning from the termination of the Covenant Not To Sue. 

 ARTICLE 5.0 PAYMENTS TO SPRINT 
  

	5.1	Vonage paid Sprint $80 million as follows: 

  

 - 7 - 

	 	(a)	Five Million Dollars ($5,000,000.00) as a prepayment for services to be purchased from Sprint by Vonage. The services will be purchased at Sprint’s commercial rate for
similarly situated customers for services that Sprint has offered for sale to similarly situated customers. These services will be requested and provided within a reasonable period of time, not to exceed 24 months from the date of execution of this
Agreement. 

  

	 	(b)	Thirty-Five Million Dollars ($35,000,000.00) for past use of the license set forth in Article 2.0. 

  

	 	(c)	Forty Million Dollars ($40,000,000.00) for a fully paid-up future license, as set forth in Article 2.0. 

 ARTICLE 6.0 GENERAL RELEASE 
  

	6.1	Definitions. 

  

	 	(a)	 “Related Companies” of a company are any Parents or Subsidiaries of the company at the time of the effective date of this Agreement, and any other company
so designated in writing signed by Sprint and Vonage. With respect to Sprint, Related Companies specifically includes Sprint Nextel Corporation and its Subsidiaries including any company owned or controlled by Sprint Nextel Corporation either
directly or indirectly by or through one or more intermediaries. With respect to Vonage, Related Companies specifically includes Vonage Holdings Corp. and its Subsidiaries including any company owned or controlled 

  

 - 8 - 

	 	 
by Vonage Holdings Corp. either directly or indirectly by or through one or more intermediaries. 

  

	 	(b)	“Subsidiary” of a company means a corporation or other legal entity (i) the majority of whose shares or other securities entitled to vote for election of directors
(or other managing authority) is controlled by such company either directly or indirectly by or through one or more intermediaries; or (ii) which does not have outstanding shares or securities but the majority of whose ownership interest
representing the right to manage such corporation or other legal entity is owned and controlled by such company either directly or indirectly by or through one or more intermediaries; but any such corporation or other legal entity shall be deemed to
be a Subsidiary of such company only as long as such control or ownership and control exists. 

  

	6.2	Sprint Release. Sprint, for itself and for its present Related Companies, hereby releases Vonage, its present Related Companies, and all such parties’ officers,
directors, employees, agents, and attorneys from all claims, demands, and rights of action which Sprint or any of its present Related Companies may have on account of any infringement or alleged infringement of any patent issued in any country of
the world by reason of any Vonage activities in the Field of Use. The parties agree to sign all necessary documents to dismiss the Litigation, as set forth in Paragraph 1.1. 

  

	6.3	 Vonage Release. Vonage, for itself and for its present Related Companies, hereby releases Sprint, its present Related Companies, and all such parties’
partners, officers, directors, employees, agents, and attorneys from all claims, demands and rights of action 

  

 - 9 - 

	 	 
which Vonage or any of its present Related Companies may have on account of any infringement or alleged infringement of any patent issued in any country of
the world. This release also shall extend to any past infringement or alleged past infringement by Sprint’s former Subsidiaries that were spun off into Embarq Corporation on or about May 18, 2006 (“Pre-Spin Subsidiaries”) in
connection with the Sprint/Nextel merger. However, this release shall only extend to past infringement or alleged past infringement by the Pre-Spin Subsidiaries occurring prior to May 18, 2006 and not to any infringement or alleged infringement
by the Pre-Spin Subsidiaries or Embarq Corporation occurring after May 18, 2006. 

 ARTICLE
7.0 TRANSFERABILITY 

	7.1	Definitions. 

  

	 	(a)	“Sprint Patents” means all Sprint patents within its Voice over Packet Portfolio, as specifically identified in Exhibit A, and any continuations, divisionals,
continuations-in-part or applications claiming priority to any of the foregoing patents. 

  

	 	(b)	“Identified Sprint Patents” means the 43 Sprint patents that were included with Sprint’s July 13, 2004 notice letter to Vonage, which are specifically identified
in Exhibit C. 

  

	 	(c)	 “Sprint Strategic Partner” means any cable company for whom Sprint provides VoP services or any company that makes a reasonable assertion that Sprint has
an indemnity obligation. “Vonage Strategic Partner” means a vendor that provides 

  

 - 10 - 

	 	 
products and services to Vonage for use in providing Vonage VOP service in the Field of Use and that makes a reasonable assertion that Vonage has an
indemnity obligation. 

  

	 	(d)	“Licensed Count” means the number of Customers reported in Vonage’s most recent publicly reported SEC filing immediately prior to any Business Combination. If
no such public filing is available or does not provide the required information, then the number of Customers shall be provided by Vonage in a certified statement signed by an authorized officer of Vonage. 

  

	 	(e)	“Customers” means the Lines served by Vonage or an acquiring company (as applicable) for VoP services, whether directly or indirectly. The Lines served by Vonage’s
wholesale customers are counted as Lines served by Vonage when counting Customers. “Lines” means the number of telephone numbers associated with receiving VOP services for active subscribers. 

  

	 	(f)	 “Business Combination” means a transaction or series of related transactions in which either (i) all or substantially all of the business or assets
of Vonage are sold or otherwise transferred to a third party, whether by assignment, operation of law or otherwise, or (ii) Vonage undergoes a Change of Control As used herein, a “Change of Control” means a transaction or series of
related transactions in which either (i) Vonage consolidates or merges with or into another Person, or (ii) any Person consolidates with, or merges with or into, Vonage, in each case unless the direct holders of voting power with respect
to the election of directors or similar managing authority of Vonage immediately prior to the transaction or series of 

  

 - 11 - 

	 	 
related transactions will hold, directly or indirectly, more than fifty (50%) of the voting power with respect to the election of directors or similar
managing authority of the surviving entity immediately after the transaction or series of related transactions. As used herein, “Person” means an individual, trust, corporation, partnership, joint venture, limited liability company,
association, unincorporated organization or other legal or governmental entity. 

  

	 	(f)	“Growth Rate” means the lesser of: (1) Vonage’s percentage growth rate of Customers over the immediately preceding 4 quarters prior to any Business Combination,
but not less than zero growth; (2) in the event of any subsequent Business Combination, then the growth rate of the combined entity over the immediately preceding 4 quarters prior to the subsequent Business Combination; or (3) the actual
growth rate of the combined entity for each year. Vonage’s Customer numbers should be obtained from Vonage’s previous publicly reported SEC filings. If no public filing is available, then the number of Customers shall be provided by Vonage
in a certified statement by an officer. For example, if the annual growth rate is 20% immediately prior to any Business Combination, and the acquiring company’s growth rate after the Business Combination in year 1 is 10%, and in year 2 is 15%,
and in year three is 30%, then the Growth Rate for year 1 will be 10%, for year 2 will be 15% and for year 3 will be 20%. 

  

	 	(g)	“Category A party” means AT&T or Verizon or any, Subsidiary, Related Company, or successor in interest to AT&T or Verizon. 

  

 - 12 - 

	 	(h)	“Category B party” means any company that enters a Business Combination with Vonage other than a Category A party or Category C party. 

  

	 	(i)	“Category C party” means an entity that enters a Business Combination with Vonage that has a number of Customers less than 10% of the number of Vonage Customers receiving
services that are within the Field of Use at the time of Business Combination. 

  

	7.2	If Vonage enters into a Business Combination then: 

  

	 	(a)	 With respect to any Business Combination with a Category A or Category B party, defined above, that party will only be licensed for the Licensed Count as adjusted
by the Growth Rate. For example, if Vonage’s number of Customers at the time of the Business Combination is 2 million, then there will be 2 million licensed Customers as of the date of the Business Combination. If the Growth Rate is
10% in the first year, then the number of licensed Customers after the first year may not exceed 2.2 million Customers. Notwithstanding any other provision of this Agreement, the acquiring company is not released for any prior VoP activity and
the acquiring company is not licensed for any activity beyond the scope of the license of Customers in excess of the Licensed Count as adjusted by the Growth Rate. For any subsequent transfer, substantially all the assets of all the VoP business
falling in the Field of Use must be transferred. In no event may any licenses be transferred to any acquirer of Vonage through a Business Combination where Sprint has in good faith (and not as a blocking tactic) filed a patent infringement suit
related to VoP technology against that party involved in 

  

 - 13 - 

	 	 
the Business Combination or an affiliate or Subsidiary of that party. Upon reasonable request, unless precluded by law, and subject to confidentiality,
Sprint will provide a list of cable companies for whom Sprint provides VoP services. Vonage agrees to hold in confidence and not disclose to any third party any list of cable companies provided by Sprint. 

  

	 	(b)	With respect to any Business Combination with Vonage by a Category A party, the acquiring company obtains a license only to the Identified Sprint Patents for the Licensed Count as
adjusted by the growth rate as specified in section 7.2(a). This license will terminate if the acquiring company, or its Related Companies, or the acquirer’s or Subsidiaries or successors in interest, assert any patent against Sprint, or any
Sprint Related Company, or telecommunications patent against a Sprint Strategic Partner, unless Sprint, or its Related Companies, or a Sprint Strategic Partner has first filed a patent infringement suit against the acquiring company.

  

	 	(c)	With respect to any Business Combination with Vonage by a Category B party, Vonage has the right to transfer a license to the Sprint Patents for the Licensed Count plus the Growth
Rate provided that the acquiring company acquires substantially all the assets or the business as a whole of Vonage in the Field of Use. 

  

	 	(d)	With respect to any Business Combination with Vonage by a Category C party, then the license to the Sprint Patents is fully assignable to that entity. 

  

 - 14 - 

	 	(e)	Any right to transfer under this Agreement is not divisible among Vonage’s Related Companies and exists only when substantially all of the assets or the business as a whole of
Vonage and its Related Companies in the Field of Use are transferred. For any subsequent transfer, substantially all the assets of all the VoP business falling in the Field of Use must be transferred. 

  

	 	(f)	Following any Business Combination, the license terminates if the acquiring company or its related Companies, or the acquiring company’s Subsidiaries or successors in interest,
assert any patent infringement claim against Sprint, or any Sprint Related Company, or a telecommunications patent infringement claim against a Sprint Strategic Partner, unless Sprint, or its related Companies, or a Sprint Strategic Partner has
first filed a patent infringement suit against the company participating in the Business Combination before any public announcement of the Business Combination. In such event, Sprint may provide the party asserting the patent infringement claim with
notice of termination of this license; the asserting party will have 30 days from receipt of such notice to cure by dismissing the offending portion of the suit. If the asserting party does not cure, this license will be terminated.

 ARTICLE 8.0 PUBLICITY 
  

	8.1	After the execution of this Agreement, no statement may be made by either party about this Agreement or the settlement of the Litigation other than to state that Vonage is licensed
under the VOP patents. 

  

 - 15 - 

 ARTICLE 9.0 MOST-FAVORED NATION 
  

	9.1	Vonage entered into a settlement agreement with Verizon Services Corp. in the matter of Verizon Servs. Corp. v. Vonage Holdings Corp. et al., Case No. 06-0682, in the
United States District Court for the Eastern District of Virginia (the “Verizon Agreement”). Sprint, at its option, may elect to accept the terms and conditions of the Verizon Agreement (as those terms and conditions are reasonably
conformed to Sprint’s circumstances) in lieu of the terms and conditions of this Agreement. 

  

	 	(a)	In no event shall Sprint be entitled to the financial terms of the Verizon Agreement for any funds paid to Verizon after a one-year period commencing at the execution of this
Agreement. 

  

	 	(b)	Sprint will have twenty-one (21) days after the execution of this Agreement to make its election. 

  

	 	(c)	Sprint agrees to abide by any confidentiality obligations under the Verizon Agreement. 

  

	 	(d)	This provision will not apply to the extent that there are objective material adverse changes in the legal situation in the Verizon matter, e.g., if a stay of an injunction
is lifted that would prevent Vonage from adding new Customers. This provision applies only to material adverse changes and not changes such as evidentiary rulings. 

 ARTICLE 10.0 MARKING 
  

 - 16 - 

	10.1	For any patent licenses granted by Sprint to Vonage, Vonage and its Related Companies shall reasonably consider any request to mark the packaging of any physical equipment provided
to Vonage’s customers for use with Vonage’s VoP services, as reasonably requested in writing by Sprint that specifies the patents to be included in any such marking along with sufficient basis for such marking. The Parties agree that any
alleged breach of this paragraph shall have no impact or effect on the remaining terms, duties and obligations under this Agreement. The Parties further agree that no injunctive relief and no money damages shall be awarded for any claim of breach of
this paragraph. 

  

	10.2	For any patent licenses granted by Vonage to Sprint, Vonage and its Related Companies shall reasonably consider any request to mark the packaging of any physical equipment provided
to Sprint’s customers for use with Sprint’s VoP services, as reasonably requested in writing by Vonage that specifies the patents to be included in any such marking along with sufficient basis for such marking. The Parties agree that any
alleged breach of this paragraph shall have no impact or effect on the remaining terms, duties and obligations under this Agreement. The Parties further agree that no injunctive relief and no money damages shall be awarded for any claim of breach of
this paragraph. 

 ARTICLE 11.0 MEDIATION AND ARBITRATION 
  

	11.1	Except as may be stated otherwise above, no issue as to the validity, enforceability, or infringement of any of the patents subject to this Agreement, or the scope of any of the
claims of the such patents, shall be subject to arbitration under this Agreement unless otherwise agreed by the parties in writing. 

  

 - 17 - 

	11.2	Except for those issues and/or disputes described in Paragraph 11.1, any dispute between the Parties concerning the interpretation, construction or application of any terms,
covenants or conditions of this Agreement shall be referred to Hesha Abrams, Esq., of Abrams Mediation & Negotiation, Inc., 7616 Burns Run, Suite 180, Dallas, Texas 75248-2322, for non-binding mediation in an attempt to resolve the matter.
In the event the dispute is not resolved in non-binding mediation, the parties agree that all disputes hereunder, except for those issues and/or disputes described in Paragraph 11.1, will be submitted to binding arbitration in the manner described
in subparagraphs (a) through (e) below. The mediator will select the locale of the arbitration proceeding, unless otherwise mutually agreed by the parties. 

  

	 	(a)	Arbitration under Paragraph 11.2 shall be in accordance with the Center for Public Resources (CPR) Rules for Non-Administered Arbitration of Patent and Trade Secret Disputes or
Rules for Non-Administered Arbitration of Business Disputes, as appropriate, in effect at the time of execution of this Agreement. Any other choice of law clause to the contrary in this Agreement notwithstanding, the arbitration shall be governed by
the United States Arbitration Act, 9 U.S.C. Section 1-16. 

  

	 	(b)	 Either party may notify CPR to begin the arbitration process. The arbitration process shall be scheduled within 30 days of such notice and a hearing set no longer
than 90 days thereafter. The arbitration panel will consist of three qualified arbitrators, one selected by Vonage, one selected by Sprint, and the third selected by CPR. The arbitrators shall issue a final award within 15 days of the conclusion of
the hearing. The award (i) shall be limited to a holding of or 

  

 - 18 - 

	 	 
against a party and affording such remedy as is within the scope of this Agreement, and (ii) shall be accompanied by a brief statement (not to exceed
ten (10) pages) of the reasoning on which the award rests. 

  

	 	(c)	The requirement for arbitration shall not be deemed a waiver of any right of termination under this Agreement and the arbitrator is not empowered to act or make any award other than
based solely on the rights and obligations of the parties as reflected in this Agreement prior to any such termination. 

  

	 	(d)	The arbitrators shall not have authority to award punitive or other damages in excess of compensatory damages, and each party irrevocably waives any claim thereto.

  

	 	(e)	The arbitrators shall award attorney fees to the prevailing party. 

  

	 	(f)	The decision of the arbitrators shall be final and nonappealable, and shall be enforceable in any court of competent jurisdiction. 

  

	 	(g)	The compensation and expenses of the mediator and/or arbitrators shall be borne equally by the Parties. 

 ARTICLE 12.0 GENERAL PROVISIONS 
  

	12.1.	 The Term of this Agreement will begin upon its effective date and continue until May 5, 2014, at which time this Agreement and all licenses granted herein will
terminate. Thereafter, within sixty (60) days of any assertion of a previously licensed patent against either Sprint or its Related Companies or Vonage or its Related Companies, the receiving 

  

 - 19 - 

	 	 
party may request an extension or license of a patent licensed under this Agreement, and the asserting party shall offer commercially reasonable terms
substantially the same as those offered to similarly situated companies. 

  

	12.2	The consideration provided by Sprint and received by Vonage hereunder represents full and fair consideration for the consideration paid to Sprint under this Agreement. The
consideration paid by the parties is, and is intended to be, paid contemporaneous with the consideration received by each party. In the event that Vonage, any trustee, receiver, or any other party acting on Vonage’s behalf or on behalf of its
estate, recovers or seeks to recover any or all of the payments made or other consideration provided to Sprint under this Agreement for any reason, including without limitation, based upon claims arising under 11 U.S.C. 544 - 550, all rights, duties
and obligations arising under the license agreement granted pursuant to this Agreement, including, without limitation, the Parties’ mutual covenants and releases, shall be immediately terminated without any further action, condition or notice
from or to any party. 

  

	12.3	Kansas law shall control any dispute between the parties regarding this Agreement. A party may only file an action after exhaustion of the dispute resolution process set forth in
Article 11.0, provided that any such action shall be filed in the United States District Court for the District of Kansas. 

  

	12.4	Nothing herein contained shall be deemed to create or give rise to an agency, joint venture or partnership relationship or any confidential or fiduciary relationship between the
Parties. 

  

 - 20 - 

	12.5	Nothing in this Settlement Agreement is intended to be or shall be deemed or construed to be, a release of any person, firm or corporation not a Party, nor is any person, firm or
corporation intended to be a third party beneficiary of any part of this Settlement Agreement unless specifically set forth in Articles 6.2 and 6.3 or Article 7. 

  

	12.6	As of the effective date hereof, this Settlement Agreement supersedes all previous oral and written agreements between the parties and constitutes the only and entire understanding
to exist between the parties with respect to the subject matter of this Settlement Agreement. This Settlement Agreement may be amended only by an instrument in writing executed by both parties to this Settlement Agreement or their successors or
assigns. 

  

	12.7	All matters affecting the interpretation, form, validity or performance of this Settlement Agreement shall be construed in accordance with the laws of the State of Kansas as if the
Settlement Agreement were signed in Kansas and notwithstanding any conflicts of law rule of Kansas which may refer resolution to any other jurisdiction; provided however, that nothing in Kansas procedural law shall be construed to alter the
procedures for arbitration set forth in this Settlement Agreement and no Kansas laws or rules relating to arbitration shall be applicable. 

  

	12.8	 Should any part or provision of this Agreement be held unenforceable or in conflict with the applicable laws or regulations of any jurisdiction, the invalid or
unenforceable part or provision shall be replaced with a provision which accomplishes, to the extent possible, the original business purpose of such part or provision in a valid and enforceable manner, 

  

 - 21 - 

	 	 
and the remainder of this Settlement Agreement shall remain binding upon the parties hereto. 

  

	12.9	The section headings contained in this Agreement are for reference purposes only and shall not in any way affect the meaning or interpretation of this Agreement.

  

	12.10	No failure or delay on the part of a party in exercising any right hereunder will operate as a waiver of, or impair, any such right. No single or partial exercise of any such right
will preclude any other or further exercise thereof or the exercise of any other rights. No waiver of any such right will be deemed a waiver of any other right hereunder. 

  

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

  

	12.12	Each term of this Settlement Agreement is contractual and not merely a recital. 

  

	12.13	The parties will execute all such further and additional documents as shall be reasonable, convenient, necessary or desirable to carry out the provisions of this Settlement
Agreement. 

  

	12.14	Any and all definitions set forth in this Settlement Agreement shall apply throughout the Agreement without regard to the location at which the term is introduced.

 ARTICLE 13.0 REPRESENTATIONS AND WARRANTIES 
 Each of the Parties to this Settlement Agreement represents and warrants to, and agrees with each other Party hereto, as follows: 
  

 - 22 - 

	13.1	Any license granted in this Agreement does not, and may not be interpreted or construed to include: (1) any warranty or representation as to the validity, enforceability or
scope of any patent including any licensed patented or non-patented technology, (2) any warranty or representation that any activity under any technology licensed is or will be free from infringement of others or other intangible rights of
third parties, (3) any requirement to file any patent application, secure or maintain any patent or other intellectual property, (4) any obligation to furnish any technical or support information, (5) any license or right by
implication or estoppel, or (6) any warranty regarding implementations of any patent including patented or non-patented technology as with respect to merchantability use, or fitness for any particular purpose. IT IS EXPRESSLY UNDERSTOOD THAT
THE LICENSES ARE BEING PROVIDED “AS IS” AND WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, THE WARRANTIES OR MERCHANTABILITY, OR FITNESS FOR A PARTICULAR PURPOSE OR WARRANTIES AGAINST INFRINGEMENT.

  

	13.2	Each Party has received independent legal advice from its attorneys with respect to the advisability of making the settlement provided for herein, and with respect to the
advisability of executing this Agreement. 

  

	13.3	No Party has made any statement or representation to any other Party regarding any fact relied upon in entering into this Settlement Agreement, and each Party does not rely upon any
statement, representation or promise of any other Party in executing this Settlement Agreement, or in making the settlement provided for herein, except as expressly stated in this Settlement Agreement. 

  

 - 23 - 

	13.4	Each Party to this Settlement Agreement has made such independent investigation of the facts pertaining to this settlement and this Settlement Agreement, and of all the matters
pertaining to it, as it deems necessary. 

  

	13.5	Each party or responsible officer or partner thereof has read this Settlement Agreement and understands the contents hereof. Each of the persons executing this Settlement Agreement
on behalf of a respective partnership, corporation, joint venture or other entity represents he or she is empowered to do so and thereby binds such entity. 

  

	13.6	Each Party has not assigned, transferred, or granted, or purported to assign, transfer, or grant, any of the rights, claims, demands, and cause or causes of action disposed of by
this Settlement Agreement. 

  

	13.7	Each Party is aware that it may hereafter discover claims or facts in addition to or different from those it now knows or believes to be true with respect to the matters related
herein. Nevertheless, it is the intention of the parties to fully, finally and forever settle and release all such matters, and all claims relating to them, which do now exist or may have existed between them. In furtherance of such intention, the
releases given herein shall be and remain in effect as full and complete mutual releases of all such matters notwithstanding the discovery or existence of any additional or different claims or facts relating to them. 

  

	13.8	Each Party has cooperated in the drafting and preparation of this Settlement Agreement. Hence, in any construction to be made of this Settlement Agreement, the same shall not be
construed against any Party. 

  

 - 24 - 

	13.9	To the extent that a dispute arises as to whether a patent should have been identified in Exhibit A, the Parties agree to mediate the dispute in accordance with Section 11.2 of
this Agreement. 

  

 - 25 - 

 IN WITNESS WHEREOF, the respective Parties hereto have caused this Settlement Agreement to be executed in
several counterparts, each one of which shall be considered as an original, and all of which shall constitute one and the same instrument, by their duly authorized representatives, as of the day and year first written above. 
  

									
	VONAGE HOLDINGS CORP.	 		  	SPRINT COMMUNICATIONS COMPANY L.P.
					
	By:	 	 /s/ Sharon O’Leary
	 		  	By:	 	 /s/ Harley Ball

		 	Authorized Signature	 		  		 	Authorized Signature
					
	Date:	 	12/28/07	 		  	Date:	 	12/28/2007
					
	Name and Title:	 	EVP & Chief Legal Officer	 		  	Name and Title:	 	Harley Ball, V.P. Intellectual Property
		 	(please type or print)	 		  		 	(please type or print)
					
	Address:	 	23 Main Street	 		  	Address:	 	6450 Sprint Pkway
					
	City, State, Zip:	 	Holmdel, NJ 07733	 		  	City, State, Zip:	 	Overland Park, KS 66251
				
	VONAGE AMERICA, INC.	 		  		 	
					
	By:	 	 /s/ Sharon O’Leary
	 		  		 	
		 	Authorized Signature	 		  		 	
					
	Date:	 	12/28/07	 		  		 	
					
	Name and Title:	 	Director	 		  		 	
		 	(please type or print)	 		  		 	
					
	Address:	 	23 Main Street	 		  		 	
					
	City, State, Zip:	 	Holmdel, NJ 07733	 		  		 	

 THIS AGREEMENT DOES NOT BIND OR OBLIGATE EITHER PARTY IN ANY MANNER UNLESS DULY EXECUTED BY AUTHORIZED
REPRESENTATIVES OF BOTH PARTIES. 
  

 - 26 - 

 EXHIBIT “A” 
 The Sprint Patents include: 
  

					
	5,825,780	  	6,577,626	  	6,785,282
	6,643,282	  	6,249,529	  	6,895,088
	6,185,219	  	6,178,170	  	6,563,918
	6,304,572	  	6,018,525	  	6,483,837
	6,366,586	  	5,920,562	  	6,470,019
	6,208,660	  	6,115,380	  	6,546,022
	6,192,052	  	6,014,378	  	6,496,512
	6,212,193	  	6,023,474	  	6,888,833
	6,104,718	  	5,940,393	  	6,597,701
	6,108,341	  	6,704,327	  	6,621,815
	6,463,052	  	6,002,689	  	6,816,497
	6,201,812	  	6,535,483	  	6,724,765
	6,424,652	  	6,330,224	  	6,747,975
	6,633,561	  	6,349,100	  	6,744,770
	6,452,932	  	6,501,759	  	6,763,027
	6,181,703	  	6,795,440	  	6,850,534
	6,026,091	  	6,272,142	  	6,888,820
	5,991,301	  	6,304,580	  	6,160,871
	6,473,429	  	6,147,994	  	6,560,226
	6,563,828	  	6,262,992	  	6,535,599
	6,452,928	  	6,697,340	  	6,714,217
	6,343,084	  	6,931,008	  	6,704,314
	6,449,280	  	6,639,912	  	6,785,377
	6,674,759	  	6,470,009	  	6,529,595
	6,480,493	  	6,904,060	  	6,351,521
	6,690,656	  	6,999,463	  	6,836,542
	7,085,362	  	6,667,982	  	7,239,644
	6,529,514	  	6,690,674	  	7,203,199
	6,298,064	  	6,788,693	  	7,103,068
	6,665,294	  	6,031,840	  	7,106,750
	6,430,195	  	6,137,800	  	7,099,343
	6,683,878	  	6,067,299	  	7,079,530
	6,631,133	  	6,314,103	  	
	6,172,977	  	6,982,950	  	
	6,560,241	  	6,411,624	  	
	6,081,529	  	6,885,671	  	
	5,703,876	  	6,470,018	  	
	6,327,270	  	6,574,222	  	
	5,926,482	  	6,674,729	  	
	6,081,525	  	7,079,534	  	

					
	6,421,344	  	6,961,339	  	
	6,687,244	  	6,922,409	  	

 EXHIBIT “B” 
 Vonage’s dual mode phones operate in both wireless (for example WiFi) and cellular mode (for example GSM). In the wireless mode, the dual mode phones serve as a SIP endpoint and communicates data through the
internet over a wireless internet interface (wireless internet gateway). The dual mode phones accesses the Vonage network through the wireless internet interface and the internet. In the cellular mode the dual mode phones communicate data with a
Vonage Gateway over a cellular network. The Vonage Gateway is an interface to the internet and can serve as s SIP endpoint for establishing a call. The Vonage dual mode phones can perform seamless handoffs between one mode and the other mode based
on predetermined threshold characteristics. 

 EXHIBIT C 
 The “Identified Sprint Patents,” as identified in Sprint’s July 13, 2004 notice letter to Vonage, are: 
  

									
	5,825,780	  	6,249,529	  	6,366,586	  	6,560,226	  	6,667,982
	6,023,474	  	6,262,992	  	6,411,624	  	6,563,828	  	6,674,759
	6,104,718	  	6,272,142	  	6,424,652	  	6,563,918	  	6,687,244
	6,108,341	  	6,298,064	  	6,449,280	  	6,597,701	  	6,690,656
	6,160,871	  	6,304,572	  	6,452,932	  	6,631,133	  	6,690,674
	6,172,977	  	6,304,580	  	6,463,052	  	6,633,561	  	6,697,340
	6,181,703	  	6,330,224	  	6,470,009	  	6,639,912	  	6,704,327
	6,185,219	  	6,343,084	  	6,473,429	  	6,643,282	  	
	6,201,812	  	6,351,521	  	6,496,512	  	6,665,294

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