Document:

ESCROW AGREEMENT

 

This Escrow Agreement dated this 30 day
of March 2012 (the “Escrow Agreement”), is entered into by and among Elephant Talk Communications Corp. (“ETAK”),
Purchaser (“Purchaser,” and together with ETAK, the “Parties,” and each individually, a “Party”),
and Wells Fargo Bank, National Association, a national banking association, as escrow agent (“Escrow Agent”).

 

RECITALS

 

A.           ETAK
and certain purchasers, of which Purchaser is one such purchaser, have entered into that certain Securities Purchase Agreement
dated as of March 29, 2012 (the “Purchase Agreement”), pursuant to which ETAK has agreed to sell, and the purchasers
have agreed to purchase, 8% Senior Secured Convertible Notes in the aggregate principal amount of $8,800,000 (the “Note”)
for consideration of $8,000,000 (the “Purchase Price”). Capitalized terms used herein that are not defined shall
have the meanings given to them in the Notes.

 

B.           The
Purchase Agreement requires that, with respect to Purchaser, $[ ] of the Purchase Price (the “Escrowed Amount”)
be deposited into escrow to secure certain payment obligations of ETAK to Purchaser under the relevant Note;

 

C.           The
Parties agree to place the Escrowed Amount in escrow and the Escrow Agent agrees to hold and distribute such funds in accordance
with the terms of this Escrow Agreement.

 

In consideration of the promises and agreements
of the Parties and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the
Parties and the Escrow Agent agree as follows:

 

ARTICLE 1

ESCROW DEPOSIT

Section 1.1.          Receipt of Escrow Property. Upon execution
hereof, Agent shall deliver to the Escrow Agent the amount of $[ ] (the “Escrow Property”) in immediately available
funds.

Section 1.2.          Investments.

 

(a)          The
Escrow Agent is authorized and directed to deposit, transfer, hold and invest the Escrow Property and any investment income thereon
as set forth in Exhibit A hereto, or as set forth in any subsequent written instruction signed by the Parties. Any investment earnings
and income on the Escrow Property shall become part of the Escrow Property, and shall be disbursed in accordance with Section 1.3
or Section 1.5 of this Escrow Agreement.

 

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(b)          The
Escrow Agent is hereby authorized and directed to sell or redeem any such investments as it deems necessary to make any payments
or distributions required under this Escrow Agreement. The Escrow Agent shall have no responsibility or liability for any loss
which may result from any investment or sale of investment made pursuant to this Escrow Agreement; provided, that, the Escrow Agent
has invested the Escrow Property in accordance with Exhibit A. The Escrow Agent is hereby authorized, in making or disposing
of any investment permitted by this Escrow Agreement, to deal with itself (in its individual capacity) or with any one or more
of its affiliates, whether it or any such affiliate is acting as agent of the Escrow Agent or for any third person or dealing as
principal for its own account. The Parties acknowledge that the Escrow Agent is not providing investment supervision, recommendations,
or advice.

  

Section 1.3.          Disbursements.

 

(a)          Subject to subsection (d) below, Escrow Agent shall hold the Escrowed Property and
all interest accrued thereon and shall dispose of the same only in accordance with the following provisions:

 

(i)   upon
receipt of a written notice (a “Draw Notice”) from Purchaser stating (1) that ETAK failed to pay when due any
amount due under the Notes (the “Amount Due”), (2) the section of the Note under which the payment obligation
arose and (3) the dollar amount due, the Escrow Agent shall deliver to Purchaser cash equal to the lesser of the Amount Due under
the relevant Note, and the remaining balance of the Escrow Property (including any accrued interest);

 

(ii)   upon
receipt of a Draw Notice from the Agent stating (1) that an Event of Default has occurred and is continuing and that the repayment
of the Note has been accelerated under Section 4(b) of the Note and (2) the amount due to Purchaser, the Escrow Agent shall deliver
to Purchaser cash equal to the lesser of the amount due and the remaining balance of the Escrow Property (including any accrued
interest) (the “Remaining Balance”);

 

(iii)   so
long as Purchaser has not delivered a notice to the Escrow Agent that a Launch Failure (as defined in the Note) as occurred (a
“Failure Notice”), then on each Installment Date (as defined in the Note), the Escrow Agent shall deliver (1)
first, to Purchaser cash equal to the lesser of the sum of all Cash Payment Amounts (as defined in the Note) being made
on such date and the Remaining Balance at such time, and (2) then, to ETAK cash equal to the lesser of all Stock Payment
Amounts (as defined in the Note) being made on such date and the Remaining Balance at such time (taking into account all payments
pursuant to Section 1.3(a)(iii)(1) immediately above). In connection with the foregoing, on each such Installment Date Purchaser
shall deliver to the Escrow Agent written notice of the Cash Payment Amounts and Stock Payment Amounts, and the Escrow Agent shall
not be required to make any calculations of such;

 

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(iv)   upon
receipt of a Draw Notice from Purchaser stating (1) that no amounts are presently due and owing to Purchaser under the Note and
(2) the aggregate outstanding principal amount of the Note plus all accrued and unpaid Interest and Late Charges thereon and any
other amounts payable under the Note as of the date of the notice (the “Aggregate Outstanding Amount”) is less
than the balance of the Escrow Property, the Escrow Agent shall deliver to ETAK cash equal to the difference between the Aggregate
Outstanding Amount and the Remaining Balance at such time; and

 

(v)    upon
a joint written direction signed by the Parties, the Escrow Agent shall disburse the Escrow, or the appropriate portion thereof,
in accordance with the written direction.

 

(b)          Any notice
given by a Party to the Escrow Agent under subsection (a) above shall include the relevant dollar amount related to that notice
and shall also be given to the other Party simultaneously.

 

(c)          The
Escrow Agent’s sole duty is to accept notice under subsection (a) and shall have no duty to determine nor shall be liable
to ascertain the validity of the claims of Purchaser or ETAK under subsection (a).

 

(d)          The
Escrow Agent shall disburse any Escrow Property (1) three (3) business days after receiving a Draw Notice under subsection (a)(i),
(a)(ii) or (a)(iv), and (2) on the applicable Installment Date after receiving at least three (3) business days’ prior written
notice from Purchaser of the applicable Cash Payment Amounts and the applicable Stock Payment Amounts; unless in any such case
it receives written notice pursuant to Subsection (e) hereto, upon which subsection (e) shall govern.

 

(e)          To the extent
that the non-requesting Party objects in good faith to any request for payment, such Party must deliver a written objection notice,
stating the basis for such objection, to the Escrow Agent and the other Party within seven (7) business days after the date of
the applicable Draw Notice requesting payment and such objection shall be resolved in accordance with Section 3.5 hereof.

 

(f)          The Escrow Agent
shall deliver the applicable portion of the Escrow Property at the election of the Party entitled to receive the same by (i) a
good, unendorsed check of Escrow Agent payable to the order of such Party, or (ii) a bank wire transfer to an account designated
by such Party.

 

Section 1.4.          Income
Tax Allocation and Reporting.

 

(a)          The
Parties agree that, for tax reporting purposes, all interest and other income from investment of the Escrow Property shall, as
of the end of each calendar year and to the extent required by the Internal Revenue Service, be reported as having been earned
by Purchaser, whether or not such income was disbursed during such calendar year.

 

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(b)          Prior
to closing, the Parties shall provide the Escrow Agent with certified tax identification numbers by furnishing appropriate forms
W-9 or W-8 and such other forms and documents that the Escrow Agent may request. The Parties understand that if such tax reporting
documentation is not provided and certified to the Escrow Agent, the Escrow Agent may be required by the Internal Revenue Code
of 1986, as amended, and the regulations promulgated thereunder, to withhold a portion of any interest or other income earned on
the investment of the Escrow Property.

 

(c)          To
the extent that the Escrow Agent becomes liable for the payment of any taxes in respect of income derived from the investment of
the Escrow Property, the Escrow Agent shall satisfy such liability to the extent possible from the Escrow Property. The Parties,
jointly and severally, shall indemnify, defend and hold the Escrow Agent harmless from and against any tax, late payment, interest,
penalty or other cost or expense that may be assessed against the Escrow Agent on or with respect to the Escrow Property and the
investment thereof unless such tax, late payment, interest, penalty or other expense was directly caused by the gross negligence
or willful misconduct of the Escrow Agent. The indemnification provided by this Section 1.4(c) is in addition to the indemnification
provided in Section 3.1 and shall survive the resignation or removal of the Escrow Agent and the termination of this Escrow Agreement.

 

Section 1.5.          Termination.
Upon the disbursement of all of the Escrow Property, including any interest and investment earnings thereon, this Escrow Agreement
shall terminate and be of no further force and effect except that the provisions of Sections 1.4(c), 3.1 and 3.2 hereof shall survive
termination.

 

Section 1.6.           Title
to Funds. The Company acknowledges and agrees that until the Escrow Property is disbursed to the Company in accordance with
the terms of this Agreement, the Company has no right, title or interest in such Escrow Property.

 

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ARTICLE 2

DUTIES OF THE ESCROW AGENT

 

Section 2.1.          Scope
of Responsibility. Notwithstanding any provision to the contrary, the Escrow Agent is obligated only to perform the duties
specifically set forth in this Escrow Agreement, which shall be deemed purely ministerial in nature. Under no circumstances will
the Escrow Agent be deemed to be a fiduciary to any Party or any other person under this Escrow Agreement. The Escrow Agent will
not be responsible or liable for the failure of any Party to perform in accordance with this Escrow Agreement. The Escrow Agent
shall neither be responsible for, nor chargeable with, knowledge of the terms and conditions of any other agreement, instrument,
or document other than this Escrow Agreement, whether or not an original or a copy of such agreement has been provided to the Escrow
Agent; and the Escrow Agent shall have no duty to know or inquire as to the performance or nonperformance of any provision of any
such agreement, instrument, or document. References in this Escrow Agreement to any other agreement, instrument, or document are
for the convenience of the Parties, and the Escrow Agent has no duties or obligations with respect thereto. This Escrow Agreement
sets forth all matters pertinent to the escrow contemplated hereunder, and no additional obligations of the Escrow Agent shall
be inferred or implied from the terms of this Escrow Agreement or any other agreement.

 

Section 2.2.          Attorneys
and Agents. The Escrow Agent shall be entitled to rely on and shall not be liable for any action taken or omitted to be taken
by the Escrow Agent in accordance with the advice of counsel or other professionals retained or consulted by the Escrow Agent.
The Escrow Agent shall be reimbursed as set forth in Section 3.1 for any and all compensation (fees, expenses and other costs)
paid and/or reimbursed to such counsel and/or professionals. The Escrow Agent may perform any and all of its duties through its
agents, representatives, attorneys, custodians, and/or nominees.

 

Section 2.3.          Reliance.
The Escrow Agent shall not be liable for any action taken or not taken by it in accordance with the direction or consent of the
Parties or their respective agents, representatives, successors, or assigns. The Escrow Agent shall not be liable for acting or
refraining from acting upon any notice, request, consent, direction, requisition, certificate, order, affidavit, letter, or other
paper or document believed by it to be genuine and correct and to have been signed or sent by the proper person or persons, without
further inquiry into the person’s or persons’ authority. Concurrent with the execution of this Escrow Agreement, the
Parties shall deliver to the Escrow Agent authorized signers’ forms in the form of Exhibit B-1 and Exhibit B-2
to this Escrow Agreement.

 

Section 2.4.          Right
Not Duty Undertaken. The permissive rights of the Escrow Agent to do things enumerated in this Escrow Agreement shall not be
construed as duties.

 

Section 2.5.          No
Financial Obligation. No provision of this Escrow Agreement shall require the Escrow Agent to risk or advance its own funds
or otherwise incur any financial liability or potential financial liability in the performance of its duties or the exercise of
its rights under this Escrow Agreement.

 

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ARTICLE 3

PROVISIONS CONCERNING THE ESCROW AGENT

 

Section 3.1.          Indemnification.
The Parties, jointly and severally, shall indemnify, defend and hold harmless the Escrow Agent from and against any and all loss,
liability, cost, damage and expense, including, without limitation, attorneys’ fees and expenses or other professional fees
and expenses which the Escrow Agent may suffer or incur by reason of any action, claim or proceeding brought against the Escrow
Agent, arising out of or relating in any way to this Escrow Agreement or any transaction to which this Escrow Agreement relates,
unless such loss, liability, cost, damage or expense shall have been finally adjudicated to have been directly caused by the willful
misconduct or gross negligence of the Escrow Agent. The provisions of this Section 3.1 shall survive the resignation or removal
of the Escrow Agent and the termination of this Escrow Agreement. 

 

Section 3.2.          Limitation
of Liability. the escrow agent SHALL NOT be liable, directly or indirectly, for any
(i) damages, Losses or expenses arising out of the services provided hereunder, other than damages, losses or expenses which have
been finally adjudicated to have DIRECTLY resulted from the escrow agent’s gross negligence or willful misconduct, or (ii)
special, Indirect or consequential damages or LOSSES OF ANY KIND WHATSOEVER (INCLUDING WITHOUT LIMITATION LOST PROFITS), even if
the escrow agent has been advised of the possibility of such LOSSES OR damages AND REGARDLESS OF THE FORM OF ACTION.

 

Section 3.3.          Resignation
or Removal. The Escrow Agent may resign by furnishing written notice of its resignation to the Parties, and the Parties may
remove the Escrow Agent by furnishing to the Escrow Agent a joint written notice of its removal along with payment of all fees
and expenses to which it is entitled through the date of termination. Such resignation or removal, as the case may be, shall be
effective thirty (30) days after the delivery of such notice or upon the earlier appointment of a successor, and the Escrow Agent’s
sole responsibility thereafter shall be to safely keep the Escrow Property and to deliver the same to a successor escrow agent
as shall be appointed by the Parties, as evidenced by a joint written notice filed with the Escrow Agent or in accordance with
a court order. If the Parties have failed to appoint a successor escrow agent prior to the expiration of thirty (30) days following
the delivery of such notice of resignation or removal, the Escrow Agent may petition any court of competent jurisdiction for the
appointment of a successor escrow agent or for other appropriate relief, and any such resulting appointment shall be binding upon
the Parties.

 

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Section 3.4.          Compensation.
The Escrow Agent shall be entitled to compensation for its services as stated in the fee schedule attached hereto as Exhibit
C, which compensation shall be paid by ETAK. The fee agreed upon for the services rendered hereunder is intended as full compensation
for the Escrow Agent's services as contemplated by this Escrow Agreement; provided, however, that in the event that the conditions
for the disbursement of funds under this Escrow Agreement are not fulfilled, or the Escrow Agent renders any service not contemplated
in this Escrow Agreement, or there is any assignment of interest in the subject matter of this Escrow Agreement, or any material
modification hereof, or if any material controversy arises hereunder, or the Escrow Agent is made a party to any litigation pertaining
to this Escrow Agreement or the subject matter hereof, then the Escrow Agent shall be compensated, at a rate determined in good
faith by the Parties, for such extraordinary services and reimbursed for all costs and expenses, including reasonable attorneys’
fees and expenses, occasioned by any such delay, controversy, litigation or event. If any amount due to the Escrow Agent hereunder
is not paid within thirty (30) days of the date due, the Escrow Agent in its sole discretion may charge interest on such amount
up to the highest rate permitted by applicable law. The Escrow Agent shall have, and is hereby granted, a prior lien upon the Escrow
Property with respect to its unpaid fees, non-reimbursed expenses and unsatisfied indemnification rights, superior to the interests
of any other persons or entities and is hereby granted the right to set off and deduct any unpaid fees, non-reimbursed expenses
and unsatisfied indemnification rights from the Escrow Property.

 

Section 3.5.          Disagreements.
If any conflict, disagreement or dispute arises between, among, or involving any of the parties hereto concerning the meaning or
validity of any provision hereunder or concerning any other matter relating to this Escrow Agreement, or the Escrow Agent is in
doubt as to the action to be taken hereunder, the Escrow Agent may, at its option, retain the Escrow Property until the Escrow
Agent (i) receives a final non-appealable order of a court of competent jurisdiction or a final non-appealable arbitration decision
directing delivery of the Escrow Property, (ii) receives a written agreement executed by each of the parties involved in such disagreement
or dispute directing delivery of the Escrow Property, in which events the Escrow Agent shall be authorized to disburse the Escrow
Property in accordance with such final court order, arbitration decision, or agreement, or (iii) files an interpleader action in
a court of competent jurisdiction, and upon the filing thereof, the Escrow Agent shall be relieved of all liability as to the Escrow
Property and shall be entitled to recover attorneys’ fees, expenses and other costs incurred in commencing and maintaining
any such interpleader action. The Escrow Agent shall be entitled to act on any such agreement, court order, or arbitration decision
without further question, inquiry, or consent.

 

Section 3.6.          Merger
or Consolidation. Any corporation or association into which the Escrow Agent may be converted or merged, or with which it may
be consolidated, or to which it may sell or transfer all or substantially all of its corporate trust business and assets as a whole
or substantially as a whole, or any corporation or association resulting from any such conversion, sale, merger, consolidation
or transfer to which the Escrow Agent is a party, shall be and become the successor escrow agent under this Escrow Agreement and
shall have and succeed to the rights, powers, duties, immunities and privileges as its predecessor, without the execution or filing
of any instrument or paper or the performance of any further act.

 

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Section 3.7.          Attachment
of Escrow Property; Compliance with Legal Orders. In the event that any Escrow Property shall be attached, garnished or levied
upon by any court order, or the delivery thereof shall be stayed or enjoined by an order of a court, or any order, judgment or
decree shall be made or entered by any court order affecting the Escrow Property, the Escrow Agent is hereby expressly authorized,
in its sole discretion, to respond as it deems appropriate or to comply with all writs, orders or decrees so entered or issued,
or which it is advised by legal counsel of its own choosing is binding upon it, whether with or without jurisdiction. In the event
that the Escrow Agent obeys or complies with any such writ, order or decree it shall not be liable to any of the Parties or to
any other person, firm or corporation, should, by reason of such compliance notwithstanding, such writ, order or decree be subsequently
reversed, modified, annulled, set aside or vacated.

 

Section 3.8           Force
Majeure. The Escrow Agent shall not be responsible or liable for any failure or delay in the performance of its obligation
under this Escrow Agreement arising out of or caused, directly or indirectly, by circumstances beyond its reasonable control, including,
without limitation, acts of God; earthquakes; fire; flood; wars; acts of terrorism; civil or military disturbances; sabotage; epidemic;
riots; interruptions, loss or malfunctions of utilities, computer (hardware or software) or communications services; accidents;
labor disputes; acts of civil or military authority or governmental action; it being understood that the Escrow Agent shall use
commercially reasonable efforts which are consistent with accepted practices in the banking industry to resume performance as soon
as reasonably practicable under the circumstances.

 

ARTICLE 4

MISCELLANEOUS

 

Section 4.1.          Successors
and Assigns. This Escrow Agreement shall be binding on and inure to the benefit of the Parties and the Escrow Agent and their
respective successors and permitted assigns. No other persons shall have any rights under this Escrow Agreement.  No
assignment of the interest of any of the Parties shall be binding unless and until written notice of such assignment shall be delivered
to the other Party and the Escrow Agent and shall require the prior written consent of the other Party and the Escrow Agent
(such consent not to be unreasonably withheld).

 

Section 4.2.          Escheat.
The Parties are aware that under applicable state law, property which is presumed abandoned may under certain circumstances escheat
to the applicable state. The Escrow Agent shall have no liability to the Parties, their respective heirs, legal representatives,
successors and assigns, or any other party, should any or all of the Escrow Property escheat by operation of law.

 

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Section 4.3.          Notices.
All notices, requests, demands, and other communications required under this Escrow Agreement shall be in writing, in English,
and shall be deemed to have been duly given if delivered (i) personally, (ii) by facsimile transmission with written confirmation
of receipt, (iii) by overnight delivery with a reputable national overnight delivery service, or (iv) by mail or by certified mail,
return receipt requested, and postage prepaid. If any notice is mailed, it shall be deemed given five business days after the date
such notice is deposited in the United States mail. If notice is given to a party, it shall be given at the address for such party
set forth below. It shall be the responsibility of the Parties to notify the Escrow Agent and the other Party in writing of any
name or address changes. In the case of communications delivered to the Escrow Agent, such communications shall be deemed to have
been given on the date received by the Escrow Agent.

 

If to Purchaser:

 

Purchaser Master Fund, Ltd.

c/o Purchaser Capital Management, LP

777 Third Avenue, 30th Floor

New York, NY 10017

Attn: Yoav Roth

Facsimile No.: (212)
571-1279

 

If to ETAK:

 

Elephant Talk Communications,
Corp.

19103 Centre Rose
Boulevard

Lutz, FL 33558

Attention: Steve van
der Velden

Telephone No.: (813)
926-8920

 

If to the Escrow Agent:

 

Wells Fargo Bank, National Association

45 Broadway, 14th
Floor

New York, NY 10006

Attention: Matthew Sherman; Corporate, Municipal
and Escrow Solutions

Telephone: (212) 515-1573

Facsimile: (212) 509-1716

 

With a copy to ETAK at the address, etc.
set forth above.

 

Section 4.4.          Governing
Law. This Escrow Agreement shall be governed by and construed in accordance with the internal laws of the State of New York.
The parties submit to the exclusive jurisdiction of the state and federal courts located in New York County, New York for any action
suit or proceeding arising out this Agreement.

 

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Section 4.5.          Entire
Agreement. This Escrow Agreement sets forth the entire agreement and understanding of the parties related to the Escrow Property.

 

Section 4.6.          Amendment.
This Escrow Agreement may be amended, modified, superseded, rescinded, or canceled only by a written instrument executed by the
Parties and the Escrow Agent.

 

Section 4.7.          Waivers.
The failure of any party to this Escrow Agreement at any time or times to require performance of any provision under this Escrow
Agreement shall in no manner affect the right at a later time to enforce the same performance. A waiver by any party to this Escrow
Agreement of any such condition or breach of any term, covenant, representation, or warranty contained in this Escrow Agreement,
in any one or more instances, shall neither be construed as a further or continuing waiver of any such condition or breach nor
a waiver of any other condition or breach of any other term, covenant, representation, or warranty contained in this Escrow Agreement.

 

Section 4.8.          Headings.
Section headings of this Escrow Agreement have been inserted for convenience of reference only and shall in no way restrict or
otherwise modify any of the terms or provisions of this Escrow Agreement.

 

Section 4.9.          Counterparts.
This Escrow Agreement may be executed in one or more counterparts, each of which when executed shall be deemed to be an original,
and such counterparts shall together constitute one and the same instrument.

 

[The remainder of this page left intentionally
blank.]

 

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IN WITNESS WHEREOF,
this Escrow Agreement has been duly executed as of the date first written above.

 

	 	ELEPHANT TALK COMMUNICATIONS CORP.
	 	 
	 	By:	 
	 	 	 
	 	Name:	 
	 	 	 
	 	Title:	 
	 	 
	 	Purchaser 
	 	By: 
	 	
	 	 
	 	By:	 
	 	 	 
	 	Name:	
	 	 	 
	 	Title:	Authorized Signatory
	 	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Escrow Agent
	 	 
	 	By:	 
	 	 	 
	 	Name:	 
	 	 	 
	 	Title:	 

 

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EXHIBIT A

 

Agency and Custody Account Direction

For Cash Balances

Wells Fargo Money Market Deposit Accounts

  

    	 

    	 

    

 

EXHIBIT B-1

 

Certificate as to Authorized Signatures

 

    	 

    	 

    

 

 

EXHIBIT B-2

 

Certificate as to Authorized Signatures

 

    	 

    	 

    

 

EXHIBIT C

 

FEES OF ESCROW AGENTSUBSIDIARY GUARANTY

 

This
GUARANTY (this “Guaranty”), dated as of March [29], 2012, is made by the Company’s
subsidiaries as indicated on the signature pages hereof, (collectively with any person executing and delivering a joinder to this
Guaranty pursuant to Section 7 hereof, the “Guarantors”) in favor of each of the Purchasers (as defined
below).

 

WHEREAS, pursuant
to that certain Securities Purchase Agreement (the “Securities Purchase Agreement”), dated on or about the date
hereof, Elephant Talk Communications, Corp., a Delaware corporation and the direct or indirect parent company of each Guarantor
(the “Company”), and the Purchasers named therein (the “Purchasers”), the Company issued
to the Purchasers the Company’s 8% Senior Secured Convertible Notes (the “Notes”);

 

WHEREAS, pursuant
to that Securities Purchase Agreement, the Company and [_____], as agent for the Purchasers (the “Agent”), entered
into that certain Security Agreement, dated on or about the date hereof (the “Security Agreement”);

 

WHEREAS, the
Company and the Guarantors are members of a group of related entities, the success of any one of which is dependent in part on
the success of the other members of such group;

 

WHEREAS, each
Guarantor expects to receive substantial direct and indirect benefits from the Purchasers’ investment in the Company pursuant
to the Transaction Documents (as defined in the Securities Purchase Agreement), which benefits are hereby acknowledged;

 

WHEREAS, it
is a condition precedent to the Purchasers’ investment in the Company under the Securities Purchase Agreement that the Guarantors
execute and deliver to the Purchasers this Guaranty; and

 

WHEREAS, each
Guarantor wishes to guaranty the Company’s obligations to the Purchasers under or in respect of the Transaction Documents
as provided herein.

 

NOW, THEREFORE,
in consideration of the foregoing premises, and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, each Guarantor hereby agrees
with the Purchasers as follows:

 

1.          Definitions.
All capitalized terms used herein (including in the recitals hereof) without definition shall have the meanings ascribed thereto
in the Securities Purchase Agreement.

 

    	 

    	 

    

 

2.          Guaranty
of Payment and Performance. Each Guarantor hereby jointly and severally guarantees to the Purchasers the full and punctual
payment when due (whether at stated maturity, by required pre-payment, by acceleration or otherwise), as well as the performance,
of all of the Secured Obligations (as such term is defined in the Security Agreement) including all such which would become due
but for the operation of the automatic stay pursuant to Section 362(a) of the Federal Bankruptcy Code and the operation of Sections
502(b) and 506(b) of the Federal Bankruptcy Code. This Guaranty is an absolute, unconditional and continuing guaranty of the full
and punctual payment and performance of all of the Secured Obligations and not of their collectibility only and is in no way conditioned
upon any requirement that the Purchasers or the Agent first attempt to collect any of the Secured Obligations from the Company
or resort to any collateral security or other means of obtaining payment. Should the Company default in the payment or performance
of any of the Secured Obligations, the obligations of each Guarantor hereunder with respect to such Secured Obligations in default
shall, upon demand by the Purchasers, become immediately due and payable to the Purchasers, without notice of any nature, which
notice is expressly waived by each Guarantor. Payments by the Guarantors hereunder may be required by the Purchasers on any number
of occasions. All payments by the Guarantors hereunder shall be made to the Purchasers, in the manner and at the place of payment
specified therefor in the Transaction Documents.

 

3.          Guarantor’s
Agreement to Pay Enforcement Costs, etc. Each Guarantor further agrees, as the principal obligor and not as a guarantor only,
to pay to the Purchasers, on demand, all costs and expenses (including court costs and legal expenses) incurred or expended by
the Purchasers in connection with the Secured Obligations, this Guaranty and the enforcement thereof, together with interest on
amounts recoverable under this Section 3 from the time when such amounts become due until payment, whether before or after
judgment, at the rate of interest for overdue principal set forth in the Notes, provided that if such interest exceeds
the maximum amount permitted to be paid under applicable law, then such interest shall be reduced to such maximum permitted amount.

 

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4.          Waivers
by Guarantor; Purchasers’ Freedom to Act. Each Guarantor agrees that the Secured Obligations will be paid and performed
strictly in accordance with their respective terms, regardless of any law now or hereafter in effect in any jurisdiction affecting
any of such terms or the rights of the Purchasers with respect thereto. Each Guarantor waives promptness, diligence, presentment,
demand, protest, notice of acceptance, notice of any Secured Obligations incurred and all other notices of any kind, all defenses
that may be available by virtue of any valuation, stay, moratorium law or other similar law now or hereafter in effect, any right
to require the marshaling of assets of the Company or any other Person primarily or secondarily liable with respect to any of
the Secured Obligations, and all suretyship defenses generally, provided that such Guarantor does not waive any notice
or grace period that is a condition precedent to the occurrence of an Event of Default under the Notes. Without limiting the generality
of the foregoing, such Guarantor agrees to the provisions of any instrument evidencing, securing or otherwise executed in connection
with any Secured Obligation and agrees that the obligations of such Guarantor hereunder shall not be released or discharged, in
whole or in part, or otherwise affected by (a) the failure of the Purchasers or the Agent to assert any claim or demand or to
enforce any right or remedy against the Company or any other Person primarily or secondarily liable with respect to any of the
Secured Obligations; (b) any extensions, compromise, refinancing, consolidation or renewals of any Secured Obligation; (c) any
change in the time, place or manner of payment of any of the Secured Obligations or any rescissions, waivers, compromise, refinancing,
consolidation or other amendments or modifications of any of the terms or provisions of the Securities Purchase Agreement,
the other Transaction Documents or any other agreement evidencing, securing or otherwise executed in connection with any of
the Secured Obligations; (d) the addition, substitution or release of any Person primarily or secondarily liable for any Secured
Obligation; (e) the adequacy of any rights that the Purchasers or the Agent may have against any collateral security or other
means of obtaining repayment of any of the Secured Obligations; (f) the impairment of any collateral securing any of the Secured
Obligations, including the failure to perfect or preserve any rights that the Purchasers or the Agent might have in such collateral
security or the substitution, exchange, surrender, release, loss or destruction of any such collateral security; or (g) any other
act or omission that might in any manner or to any extent vary the risk of such Guarantor or otherwise operate as a release or
discharge of such Guarantor, all of which may be done without notice to such Guarantor. To the fullest extent permitted by law,
each Guarantor hereby expressly waives any and all rights or defenses arising by reason of (x) any “one action” or
“anti-deficiency” law that would otherwise prevent the Purchasers from bringing any action, including any claim for
a deficiency, or exercising any other right or remedy (including any right of set-off), against such Guarantor before or after
the Purchasers’ commencement or completion of any foreclosure action, whether judicially, by exercise of power of sale or
otherwise or (y) any other law that in any other way would otherwise require any election of remedies by the Purchasers.

 

5.          Unenforceability
of Secured Obligations Against Company. If for any reason the Company has no legal existence or is under no legal obligation
to discharge any of the Secured Obligations, or if any of the Secured Obligations have become irrecoverable from the Company by
reason of the Company’s insolvency, bankruptcy or reorganization or by other operation of law or for any other reason, this
Guaranty shall nevertheless be binding on each Guarantor to the same extent as if such Guarantor at all times had been the principal
obligor on all such Secured Obligations. In the event that acceleration of the time for payment of any of the Secured Obligations
is stayed upon the insolvency, bankruptcy or reorganization of the Company, or for any other reason, all such amounts otherwise
subject to acceleration under the terms of the Securities Purchase Agreement, the other Transaction Documents or any other agreement
evidencing, securing or otherwise executed in connection with any Secured Obligation shall be immediately due and payable by the
Guarantors.

 

6.          Subrogation;
Subordination.

 

6.1           Waiver
of Rights Against Company. Until the final payment and performance in full of all of the Secured Obligations, each Guarantor
(a) shall not exercise, and hereby waives, any rights against the Company arising as a result of payment by the Guarantor hereunder,
by way of subrogation, reimbursement, restitution, contribution or otherwise, and will not prove any claim in competition with
the Purchasers or the Agent in respect of any payment hereunder in any bankruptcy, insolvency or reorganization case or proceedings
of any nature, (b) will not claim any setoff, recoupment or counterclaim against the Company in respect of any liability of the
Guarantor to the Company and (c) waives any benefit of and any right to participate in any collateral security that may be held
by the Purchasers or the Agent.

 

    	3

    	 

    

 

6.2           Subordination.
The payment of any amounts due with respect to any indebtedness of the Company for money borrowed or credit received now or hereafter
owed to any Guarantor is hereby subordinated to the prior payment in full of all of the Secured Obligations. Each Guarantor agrees
that, after the occurrence of any default in the payment or performance of any of the Secured Obligations, such Guarantor will
not demand, sue for or otherwise attempt to collect any such indebtedness until all of the Secured Obligations shall have been
paid in full. If, notwithstanding the foregoing, such Guarantor shall collect, enforce or receive any amounts in respect of such
indebtedness while any Secured Obligations are still outstanding, such amounts shall be collected, enforced and received by such
Guarantor as trustee for the Purchasers and be paid over to the Purchasers on account of the Secured Obligations without affecting
in any manner the liability of such Guarantor under the other provisions of this Guaranty.

 

6.3           Provisions
Supplemental. The provisions of this Section 6 shall be supplemental to and not in derogation of any rights and remedies
of the Purchasers under any separate subordination agreement that the Purchasers may at any time and from time to time enter into
with the Guarantors.

 

7.          Future
Subsidiaries. If any Person becomes a Subsidiary of the Company after the date hereof, the Guarantors shall cause such Person,
within 2 days after it becomes a Subsidiary, (a) to execute and deliver a joinder to this Guaranty in which such new Subsidiary
agrees to be bound by the terms hereof as if it where an original Guarantor party hereto, such joinder agreement to be in form
and substance reasonably satisfactory to the Purchasers, and (b) to take any other action that the Purchasers may reasonably request
so that such new Subsidiary is bound by the provisions hereof in the same manner and to the same extent as each other Guarantor.

 

8.          Further
Assurances. Each Guarantor agrees that it will from time to time, at the request of the Purchasers, do all such things and
execute all such documents as the Purchasers may reasonably request to give full effect to this Guaranty and to perfect and preserve
the rights and powers of the Purchasers hereunder. Each Guarantor acknowledges and confirms that it has established its own adequate
means of obtaining from the Company on a continuing basis all information desired by such Guarantor concerning the financial condition
of the Company and that such Guarantor will look to the Company and not to the Purchasers in order for such Guarantor to keep
adequately informed of changes in the Company’s financial condition.

 

9.          Termination;
Reinstatement. Upon payment in full in cash of the Secured Obligations in accordance with the provisions of the Transaction
Documents, this Guaranty shall terminate. Notwithstanding the foregoing, this Guaranty shall be reinstated after such termination
if at any time any payment made or value received with respect to any Secured Obligation is rescinded or must otherwise be returned
by the Purchasers upon the insolvency, bankruptcy or reorganization of the Company or any of its Subsidiaries, or otherwise, all
as though such payment had not been made or value received.

 

10.         Successors
and Assigns. This Guaranty shall be binding upon each Guarantor, its successors and assigns, and shall inure to the benefit
of the Purchasers and their respective successors, transferees and assigns. Without limiting the generality of the foregoing,
if a Purchasers assigns or otherwise transfers the Note, its rights and obligations under the Securities Purchase Agreement, the
other Transaction Documents or any other agreement held by it evidencing, securing or otherwise executed in connection with the
Secured Obligations, or sells participations in any interest therein, to any other Person, in each case in accordance with the
terms thereof, then such other Person shall automatically become vested, to the extent set forth in the agreement evidencing such
assignment, transfer or participation, with all the rights in respect thereof granted to such Purchaser herein. No Guarantor may
assign any of its obligations hereunder.

 

    	4

    	 

    

 

11.         Addresses
for Notices. All notices and other communications provided for hereunder (a) shall be given in the form and manner set forth
in the Securities Purchase Agreement and (b) shall be delivered, (i) in the case of notice to any Guarantor, by delivery of such
notice to the Company at the Company’s address specified in the Securities Purchase Agreement or at such other address as
shall be designated by the Company in a written notice to the Purchasers and (ii) in the case of notice to the Purchasers, by
delivery of such notice to the Purchasers at their respective addresses specified in the Securities Purchase Agreement or at such
other address as shall be designated by a Purchaser in a written notice to the Company.

 

12.         Governing
Law; Jurisdiction; Jury Trial. This Guaranty and any controversy arising out of or relating to this Guaranty shall be governed
by and construed in accordance with the internal laws of the State of New York, without regard to conflict of law principles that
would result in the application of any law other than the laws of the State of New York. Each party hereby irrevocably submits
to the exclusive jurisdiction of the state and federal courts sitting in The City of New York, Borough of Manhattan, for the adjudication
of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby
irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to
the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue
of such suit, action or proceeding is improper. Each Guarantor irrevocably waives personal service of process and consents to
process being served in any such suit, action or proceeding by mailing a copy thereof to the Company at the address set forth
in the Securities Purchase Agreement and agrees that such service shall constitute good and sufficient service of process and
notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted
by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION
OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS GUARANTY OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

13.         Counterparts;
Facsimile. This Guaranty may be executed and delivered by facsimile signature or by an e-mail that contains a portable document
format (.pdf) file of an executed signature page in any number of counterparts, each of which shall be deemed an original, but
all of which together shall constitute one and the same instrument.

 

14.         Headings.
The section headings used in this Guaranty are used for convenience only and are not to be considered in construing or interpreting
this Guaranty.

 

15.         Amendments
and Waivers. Except as expressly provided herein, neither this Guaranty nor any term hereof may be amended, waived, discharged
or terminated other than by a written instrument referencing this Guaranty and signed by Purchasers holding at least 66 2/3% of
the outstanding principal amount of the Notes and each Guarantor.

 

    	5

    	 

    

 

16.         Severability.
If any provision of this Guaranty shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall
not affect the validity or enforceability of the remainder of this Guaranty in that jurisdiction or the validity or enforceability
of any provision of this Guaranty in any other jurisdiction.

 

17.         Delays
or Omissions. No delay or omission to exercise any right, power or remedy accruing to the Purchasers under this Guaranty upon
any breach or default of any Guarantor shall impair any such right, power or remedy of the Purchasers nor shall it be construed
to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter
occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore
or thereafter occurring.

 

18.         Remedies.
The Purchasers shall have all rights and remedies set forth in this Guaranty and in the Transaction Documents and all rights and
remedies that the Purchasers have been granted at any time under any other agreement or contract and all of the rights that the
Purchasers have under applicable law. All remedies shall be cumulative and not alternative. Each Guarantor acknowledges that in
the event that it fails to perform, observe or discharge any or all of its obligations under this Guaranty, any remedy at law
may prove to be inadequate relief to the Purchasers. Each Guarantor therefore agrees that the Purchasers shall be entitled to
seek specific performance and/or temporary, preliminary and permanent injunctive or other equitable relief from any court of competent
jurisdiction in any such case without the necessity of proving actual damages and without posting a bond or other security.

 

19.         Entire
Agreement. This Guaranty and the Transaction Documents, including the exhibits attached hereto and thereto, do and will constitute
the full and entire understanding and agreement between the Guarantors and the Purchasers with respect to the subject matter hereof
and thereof.

 

20.         Construction.
The terms “including,” “includes,” “include” and words of like import shall be construed broadly
as if followed by the words “without limitation.” The terms “herein,” “hereunder,” “hereof”
and words of like import refer to this entire Guaranty instead of just the provision in which they are found. The language used
in this Guaranty will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict
construction will be applied against any party.

 

[Signature Page
Follows]

 

    	6

    	 

    

 

IN WITNESS WHEREOF,
each Guarantor has caused this Guaranty to be executed and delivered as of the date first above written.

 

	 	Elephant Talk Europe Holding B.V.
	 	 	 
	 	By:	    /s/ Alex Vermeulen 
	 	 	 
	 	Elephant Talk Communication Holding AG
	 	 	 
	 	By:	    /s/ Alex Vermeulen 
	 	 	 
	 	Elephant Talk Communications S.L.U.
	 	 	 
	 	By:	    /s/ Mark Nije
	 	 	 
	 	Elephant Talk Mobile Services B.V.
	 	 	 
	 	By:	     /s/ Mark Nije
	 	 	 
	 	Elephant Talk Communication Austria GmbH
	 	 
	 	By:	    /s/ Alex Vermeulen 
	 	 	 
	 	Elephant Talk Telekom GmbH
	 	 	 
	 	By:	    /s/ Alex Vermeulen 
	 	 	 
	 	Elephant Talk Communications S.R.L.
	 	 	 
	 	By:	     /s/ Mark Nije
	 	 	 
	 	ET-Stream GmbH
	 	 	 
	 	By:	    /s/ Alex Vermeulen 

 

Signature Page to Guaranty

 

    	 

    	 

    

 

	 	Elephant Talk Communication Carrier Services GmbH 
	 	 	 
	 	By:	    /s/ Alex Vermeulen 
	 	 	 
	 	Elephant Talk Communication Europe GmbH
	 	 	 
	 	 	 
	 	By:	    /s/ Alex Vermeulen 
	 	 	 
	 	Elephant Talk Communication Schweiz GmbH
	 	 	 
	 	By:	    /s/ Alex Vermeulen 
	 	 	 
	 	Elephant Talk Communications France S.A.S.
	 	 	 
	 	By:	    /s/ Alex Vermeulen 
	 	 	 
	 	Elephant Talk Communications Premium Rate Services Netherlands B.V.
	 	 	 
	 	By:	    /s/ Alex Vermeulen 
	 	 	 
	 	Elephant Talk Communications PRS U.K. Ltd.
	 	 	 
	 	By:	    /s/ Mark Nije
	 	 	 
	 	Elephant Talk Communications Luxembourg SA
	 	 
	 	By:	    /s/ Alex Vermeulen 
	 	 	 
	 	Elephant Talk Business Services W.L.L.
	 	 	 
	 	By:	     /s/ Mark Nije
	 	 	 
	 	Guangzhou Elephant Talk Information Technology Ltd
	 	 	 
	 	By:	    /s/ Alex Vermeulen 

 

    	2

    	 

    

 

	 	ET-UTS N.V. 
	 	 	 
	 	By:	   Martin Zuurbier
	 	 	 
	 	Elephant Talk Limited
	 	 	 
	 	By:	 /s/ Steven van der Velden
	 	 	 
	 	Elephant Talk Middle East & Africa (Holding) W.L.L.
	 	 	 
	 	By:	 /S/ Steven van der Velden
	 	 	 
	 	Elephant Talk Middle East & Africa (Holding) Jordan L.L.C.
	 	 	 
	 	By:	   Martin Zuurbier
	 	 	 
	 	Elephant Talk Middle East & Africa Bahrain W.L.L.
	 	 	 
	 	By:	   Martin Zuurbier
	 	 	 
	 	Elephant Talk Middle East & Africa FZ-LLC
	 	 	 
	 	By:	/S/ Steven van der Velden
	 	 	 
	 	Validsoft Ltd.
	 	 	 
	 	By:	/S/ Steven van der Velden
	 	 	 
	 	Validsoft (UK) Ltd
	 	 	 
	 	By:	     /S/ Patrick Carrol
	 	 	 
	 	Validsoft (Australia) Pty Limited
	 	 	 
	 	By:	      /S/ Patrick Carrol

 

    	3

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