Document:

EX-10.1

 

 
 Exhibit 10.1 

September 6, 2016 
 Mr. Joseph Yospe

 c/o The Madison Square Garden Company 
 Two Pennsylvania
Plaza 
 New York, NY 10121 
 Dear Joe: 

This Agreement (the “Agreement”), effective as of September 1, 2016 (the “Effective Date”), will confirm the terms of
your continued employment by The Madison Square Garden Company (the “Company”). 
 The term of your employment under this
Agreement (the “Term”) shall commence as of the Effective Date and, unless terminated earlier in accordance with this Agreement, will expire on the third anniversary of the Effective Date (the “Expiration Date”). 

Your title will continue to be Senior Vice President, Controller and Principal Accounting Officer. Throughout the Term, you agree to devote
substantially all of your business time and attention to the business and affairs of the Company and to perform your duties in a diligent, competent, professional and skillful manner and in accordance with applicable law and the Company’s
policies and procedures. 
 Your annual base salary will be a minimum of $502,825 paid no less frequently than monthly, subject to annual
review and potential increase by the Compensation Committee of the Board of Directors of the Company (the “Compensation Committee”) in its sole discretion. You will also be eligible to participate in our discretionary annual cash
bonus program with an annual target bonus opportunity equal to at least 45% of salary. Bonus payments are based on actual salary dollars paid during the year and depend on a number of factors including Company, unit and individual performance.
Except as provided below, the decision whether or not to pay a bonus, and the amount of that bonus, if any, shall be made by the Compensation Committee in its sole discretion. Bonuses are typically paid early in the subsequent fiscal year.
Except as provided below, in order to receive a bonus, you must be employed by the Company at the time bonuses are being paid. Your annual base salary and annual bonus target (as each may be increased from time to time in the Compensation
Committee’s sole discretion) will not be reduced during the Term. 

  
  

THE MADISON SQUARE GARDEN COMPANY 
 TWO PENNSYLVANIA PLAZA, NEW YORK, NY
10121-0091 
 TEL 212-465-6000 

  
 Mr. Joseph Yospe 

Page 2 
  
  

 You will be eligible to participate in such long-term incentive programs as are made available to
similarly situated executives at the Company. It is expected that such awards will consist of annual grants of cash and/or equity awards with an annual target value of not less than $460,000, as determined by the Compensation Committee. Any such
awards would be subject to actual grant to you by the Compensation Committee in its sole discretion, would be pursuant to the applicable plan document and would be subject to terms and conditions established by the Compensation Committee in its sole
discretion that would be detailed in separate agreements you would receive after any award is actually made. Long term incentive awards are currently expected to be subject to three-year vesting. 

You will also be eligible for our standard benefits programs at the levels that are made available to similarly situated executives at the
Company. Participation in our benefits programs is subject to meeting the relevant eligibility requirements, payment of the required premiums and the terms of the plans themselves. You will also be entitled to paid time off to be accrued and used in
accordance with Company policy. 
 Upon commencement of the Term, you agree to be bound by the additional covenants and provisions that are
set forth in Annex I and Annex II hereto, which Annexes shall be deemed to be a part of the Agreement. 
 If your employment with
the Company hereunder is terminated prior to the Expiration Date (i) by the Company (other than for “Cause”) or (ii) by you for “Good Reason” (other than if “Cause” then exists) then, subject to your
execution, delivery and non-revocation (within any applicable revocation period) of the severance agreement described below, the Company will provide you with the following: 
  

	 	(1)	Severance in an amount to be determined by the Compensation Committee (the “Severance Amount”), but in no event less than the sum of your annual base salary and your annual target bonus, each as in effect at
the time your employment terminates. Sixty percent (60%) of the Severance Amount will be payable to you on the six-month anniversary of the date your employment so terminates (the “Termination Date”) and the remaining forty percent
(40%) of the Severance Amount will be payable to you on the twelve-month anniversary of the Termination Date; and 

  

	 	(2)	Any unpaid annual bonus for the Company’s fiscal year prior to the fiscal year which includes your Termination Date, and a pro rated bonus based on the amount of your base salary actually earned by you during
the Company’s fiscal year through the Termination Date, each of which will be paid to you when such bonuses are generally paid to similarly situated active executives and will be based on your then current annual target bonus as well as Company
and your business unit performance for the applicable fiscal year as determined by the Company in its sole discretion, but without adjustment for your individual performance. 

  
  

THE MADISON SQUARE GARDEN COMPANY 
 TWO PENNSYLVANIA PLAZA, NEW YORK, NY
10121-0091 
 TEL 212-465-6000 

  
 Mr. Joseph Yospe 

Page 3 
  
  

 Your entitlement to the severance benefits describing in clauses (1) and (2) above will
be subject to your prior execution, delivery and non-revocation (within any applicable revocation period) of a reasonable severance agreement no later than the six-month anniversary of the Termination Date.
This severance agreement shall be delivered to you by the Company as soon as reasonably practicable after the Termination Date and will include, without limitation, (x) a full and complete general release in favor of the Company and its
affiliates (and their respective directors, officers and employees), (y) non-solicitation, non-disparagement, confidentiality and further cooperation provisions substantially similar to those set forth in Annex I hereto and (z) non-compete
provisions no more restrictive than those set forth in Annex II hereto (but limited to the one-year period from the Termination Date). 
 In
connection with any termination of your employment, any outstanding equity and cash incentive awards shall be treated in accordance with their terms. 

For purposes of this Agreement, “Cause” means your (i) commission of an act of fraud, embezzlement, misappropriation,
willful misconduct, gross negligence or breach of fiduciary duty against the Company or an affiliate thereof, or (ii) commission of any act or omission that results in a conviction, plea of no contest, plea of nolo contendere, or
imposition of unadjudicated probation for any crime involving moral turpitude or any felony.  
 For purposes of this Agreement,
“Good Reason” means that (i) without your written consent, (1) your base salary (as may be increased from time to time in the Compensation Committee’s sole discretion) is reduced, (2) you are no longer the
Company’s principal accounting officer, or (3) you no longer report to the Company’s Chief Financial Officer, (ii) you have given the Company written notice, referring specifically to this Agreement and definition, that you do
not consent to such action, (iii) the Company has not corrected such action within 30 days of receiving such notice, and (iv) you voluntarily terminate your employment with the Company within 90 days following the happening of the action
described in subsection (i) above. 
 This Agreement does not constitute a guarantee of employment for any definite period. Your
employment is at will and may be terminated by you or the Company at any time, with or without notice or reason. 
 The Company may withhold
from any payment due to you any taxes required to be withheld under any law, rule or regulation. If any payment otherwise due to you hereunder would result in the imposition of the excise tax imposed by Section 4999 of the Internal Revenue
Code, the Company will instead pay you either (i) such amount or (ii) the maximum amount that could be paid to you without the imposition of the excise tax, depending on whichever amount results in your receiving the greater amount of
after-tax proceeds. In the event that the payments and benefits payable to you would be reduced as provided in the previous sentence, then such reduction will be determined in a manner which has the least economic cost to you and, to the extent the
economic cost is equivalent, such payments or benefits will be reduced in the inverse order of when the payments or benefits would have been made to you until the reduction specified is achieved. 

  
  

THE MADISON SQUARE GARDEN COMPANY 
 TWO PENNSYLVANIA PLAZA, NEW YORK, NY
10121-0091 
 TEL 212-465-6000 

  
 Mr. Joseph Yospe 

Page 4 
  
  

 If and to the extent that any payment or benefit under this Agreement, or any plan, award or
arrangement of the Company or its affiliates, is determined by the Company to constitute “non-qualified deferred compensation” subject to Section 409A of the Internal Revenue Code (“Section 409A”) and is payable to you by
reason of your termination of employment, then (a) such payment or benefit shall be made or provided to you only upon a “separation from service” as defined for purposes of Section 409A under applicable regulations and
(b) if you are a “specified employee” (within the meaning of Section 409A as determined by the Company), such payment or benefit shall not be made or provided before the date that is six months after the date of your separation
from service (or, if earlier than the expiration of such six month period, the date of death). Any amount not paid or benefit not provided in respect of the six month period specified in the preceding sentence will be paid to you in a lump sum or
provided to you as soon as practicable after the expiration of such six month period. 
 To the extent you are entitled to any expense
reimbursement from the Company that is subject to Section 409A, (i) the amount of any such expenses eligible for reimbursement in one calendar year shall not affect the expenses eligible for reimbursement in any other taxable year
(except under any lifetime limit applicable to expenses for medical care), (ii) in no event shall any such expense be reimbursed after the last day of the calendar year following the calendar year in which you incurred such expense, and
(iii) in no event shall any right to reimbursement be subject to liquidation or exchange for another benefit. 
 This Agreement is
personal to you and without the prior written consent of the Company shall not be assignable by you otherwise than by will or the laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable by your legal
representatives. This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns. 
 To the
extent permitted by law, you and the Company waive any and all rights to a jury trial with respect to any matter relating to this Agreement. 

This Agreement will be governed by and construed in accordance with the law of the State of New York applicable to contracts made and to be
performed entirely within that State. 
 Both the Company and you hereby irrevocably submit to the jurisdiction of the courts of the
State of New York and the federal courts of the United States of America located in Manhattan solely in respect of the interpretation and enforcement of the provisions of this Agreement, and each of us hereby waives, and agrees not to assert, as a
defense that either of us, as appropriate, is not subject thereto or that the venue thereof may not be appropriate. We each hereby agree that mailing of process or other papers in connection with any such action or proceeding in any manner as may be
permitted by law shall be valid and sufficient service thereof. 

  
  

THE MADISON SQUARE GARDEN COMPANY 
 TWO PENNSYLVANIA PLAZA, NEW YORK, NY
10121-0091 
 TEL 212-465-6000 

  
 Mr. Joseph Yospe 

Page 5 
  
  

 This Agreement may not be amended or modified otherwise than by a written agreement executed by
the parties hereto or their respective successors and legal representatives. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement. The Company
and you have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Company and you and no
presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement. 

You agree to keep this Agreement and its terms strictly confidential (unless it is made public by the Company); provided that
(1) you are authorized to make any disclosure required of you by any federal, state or local laws or judicial proceedings, after providing the Company with prior written notice and an opportunity to respond to such disclosure (unless such
notice is prohibited by law) and (2) you are authorized to disclose this Agreement and its terms to your legal, financial and tax advisors and your representatives may disclose to any and all persons, without limitation of any kind, the
tax treatment and tax structure of this Agreement and all materials of any kind (including opinions or other tax analyses) that are provided to you relating to such tax treatment or structure. 

This Agreement reflects the entire understanding and agreement of you and the Company with respect to the subject matter hereof and supersedes
all prior understandings and agreements. 

  
  

THE MADISON SQUARE GARDEN COMPANY 
 TWO PENNSYLVANIA PLAZA, NEW YORK, NY
10121-0091 
 TEL 212-465-6000 

  
 Mr. Joseph Yospe 

Page 6 
  
  

 This Agreement will automatically terminate, and be of no further force or effect, on the
Expiration Date (other than with respect to any rights which, by the terms of this Agreement, arose before such date); provided, however that the last eight paragraphs hereof, and Annex I and Annex II, shall remain in effect during the
Term and thereafter indefinitely (unless otherwise expressly provided) and shall survive any termination or expiration of the Agreement or any termination of your employment with the Company. 

 

	
	Very truly yours,
	
	/s/ Donna Coleman
	Donna Coleman
	Executive Vice President & Chief Financial Officer

  

	
	Accepted and Agreed:
	
	/s/ Joseph Yospe
	Joseph Yospe
	Date: September 6, 2016

  

  
  

THE MADISON SQUARE GARDEN COMPANY 
 TWO PENNSYLVANIA PLAZA, NEW YORK, NY
10121-0091 
 TEL 212-465-6000 

  
 Mr. Joseph Yospe 

Page 7 
  
  

 ANNEX I 

This Annex I constitutes part of the Agreement dated September 6, 2016 (the “Agreement”) by and between Joseph Yospe
(“You”) and The Madison Square Garden Company (the “Company”). 
 You agree to comply with the following covenants in
addition to those set forth in the Agreement. 
  

	1.	Confidentiality 

 (a)     Confidential and Proprietary
Information. You agree to retain in strict confidence and not use for any purpose whatsoever or divulge, disseminate, copy, disclose to any third party, or otherwise use any Confidential Information, other than for legitimate business purposes
of the Company and its affiliates. As used herein, “Confidential Information” means any non-public information of a confidential, proprietary, commercially sensitive or personal nature of, or regarding, the Company or any of its
affiliates or any director, officer or member of senior management of any of the foregoing (collectively “Covered Parties”). The term Confidential Information includes such information in written, digital, oral or any other format and
includes, but is not limited to (i) information designated or treated as confidential; (ii) budgets, plans, forecasts or other financial or accounting data; (iii) customer, broadcast affiliate, fan, vendor, sponsor, marketing
affiliate or shareholder lists or data; (iv) technical or strategic information regarding the Covered Parties’ television, programming, advertising, or other businesses; (v) advertising, sponsorship, business, sales or marketing
tactics, strategies or information; (vi) policies, practices, procedures or techniques; (vii) trade secrets or other intellectual property; (viii) information, theories or strategies relating to litigation, arbitration, mediation,
investigations or matters relating to governmental authorities; (ix) terms of agreements with third parties and third party trade secrets; (x) information regarding employees, talent, agents, consultants, advisors or representatives,
including their compensation or other human resources policies and procedures; (xi) information or strategies relating to any potential or actual business development transactions and/or any potential or actual business acquisition, divestiture
or joint venture, and (xii) any other information the disclosure of which may have an adverse effect on the Covered Parties’ business reputation, operations or competitive position, reputation or standing in the community. 

(b)     Notwithstanding the foregoing, the obligations of this section, other than with respect to employee or customer
information, shall not apply to Confidential Information that is in the public domain (through no breach by you) or specifically exempted in writing by the applicable Covered Party from the applicability of this Agreement. 

(c)     Notwithstanding anything contained elsewhere in this Agreement, (i) you are authorized to make any disclosure
which, in the written advice of outside counsel, is required of you by any federal, state or local laws or judicial, arbitral or governmental agency proceedings, after providing the Company with prior written notice (to the extent legally
permissible) and an opportunity to respond prior to such disclosure (to extent reasonably practicable), and (ii) you are authorized to disclose Confidential Information to your personal attorney, solely for the purpose of, and to the extent
necessary to, obtain personal legal advice. 

  
  

THE MADISON SQUARE GARDEN COMPANY 
 TWO PENNSYLVANIA PLAZA, NEW YORK, NY
10121-0091 
 TEL 212-465-6000 

  
 Mr. Joseph Yospe 

Page 8 
  
  

 (d)     You agree not to issue any press release or public statement
regarding your employment by the Company and/ or the commencement thereof unless (i) so disclosed with the prior written consent of the Company, or (ii) it is, in the written opinion of outside counsel, required and then only to the extent
so required, by applicable law. 
  

	2.	Additional Understandings 

 You agree for yourself and others acting on your behalf, that
you (and they) will not disparage, make negative statements about (either “on the record” or “off the record”) or act in any manner which is intended to or does damage to the good will of, or the business or personal reputations
of the Company, any of its affiliates or any of their respective officers, directors, employees, successors and assigns (including, without limitation, any former officers, directors or employees of the Company and/ or its affiliates, to the extent
such individuals served in any such capacity at any point during the Term). 
 This Agreement in no way restricts or prevents you from
providing truthful testimony as is required by court order or other legal process; provided that you afford the Company written notice and an opportunity to respond prior to such disclosure. 

If requested by the Company, you agree to deliver to the Company upon the termination of your employment, or at any earlier time the Company
may request, all memoranda, notes, plans, files, records, reports, and software and other documents and data (and copies thereof regardless of the form thereof (including electronic copies)) containing, reflecting or derived from Confidential
Information or the Materials (as defined below) of the Company or any of its affiliates which you may then possess or have under your control. If so requested, you shall provide to the Company a signed statement confirming that you have fully
complied with this paragraph. 
 In addition, you agree that the Company is the owner of all rights, title and interest in and to all
documents, tapes, videos, designs, plans, formulas, models, processes, computer programs, inventions (whether patentable or not), schematics, music, lyrics and other technical, business, financial, advertising, sponsorship, sales, marketing,
customer or product development plans, forecasts, strategies, information and materials (in any medium whatsoever) developed or prepared by you or with your cooperation in any way in connection with your employment by the Company (the
“Materials”). The Company will have the sole and exclusive authority to use the Materials in any manner that it deems appropriate, in perpetuity, without additional payment to you. You agree to perform all actions reasonably requested by
the Company (whether during or after the Term) to establish and confirm the Company’s ownership of such Materials (including, without limitation, the execution and delivery of assignments, consents, powers of attorney and other instruments) and
to provide reasonable assistance to the Company or any of its affiliates in connection with the prosecution of any applications for patents, trademarks, trade names, service marks or reissues thereof or in the prosecution or defense of interferences
relating to any Materials. If the Company is unable, after reasonable effort, to secure your signature on any such papers, any executive officer of the Company shall be entitled to execute any such papers as your agent and attorney-in-fact, and you
hereby irrevocably designate and appoint each executive officer of the Company as your agent and attorney-in-fact to execute any such papers on your behalf, and to take any and all actions as the Company may deem necessary or desirable in order to
protect its rights and interests in any Materials, under the conditions described in this sentence. 

  
  

THE MADISON SQUARE GARDEN COMPANY 
 TWO PENNSYLVANIA PLAZA, NEW YORK, NY
10121-0091 
 TEL 212-465-6000 

  
 Mr. Joseph Yospe 

Page 9 
  
  

 In addition, you agree for yourself and others acting on your behalf, that you (and they) shall
not, at any time, participate in any way in the writing or scripting (including, without limitation, any “as told to” publications) of any book, article, periodical, periodical story, movie, play, other written or theatrical work, or video
that (i) relates to your services to the Company or any of its affiliates or (ii) otherwise refers to the Company or its respective businesses, activities, directors, officers, employees or representatives, without the prior written
consent of the Company. 
  

	3.	Further Cooperation 

 Following the date of termination of your employment with the
Company, you will no longer provide any regular services to the Company or represent yourself as a Company agent. If, however, the Company so requests, you agree to use commercially reasonable good faith efforts to cooperate fully with the Company
in connection with any matter with which you were involved prior to such employment termination, or in any litigation or administrative proceedings or appeals (including any preparation therefore) where the Company believes that your personal
knowledge, attendance or participation could be beneficial to the Company or its affiliates. This cooperation includes, without limitation, participation on behalf of the Company and/ or its affiliates in any litigation, administrative or similar
proceeding, including providing truthful testimony. 
 The Company will provide you with reasonable notice in connection with any
cooperation it requires in accordance with this section and will take reasonable steps to schedule your cooperation in any such matters so as not to materially interfere with your other professional and personal commitments. The Company will
reimburse you for any reasonable out-of-pocket expenses you reasonably incur in connection with the cooperation you provide hereunder as soon as practicable after you present appropriate documentation evidencing such expenses. You agree to provide
the Company with an estimate of any such individual expense of more than $1,000 before it is incurred. 
  

	4.	No-Hire or Solicit 

 During the Term and thereafter through the first anniversary of the
date on which your employment with the Company has terminated for any reason, you agree not to hire, seek to hire, or cause any person or entity to hire or seek to hire (without the prior written consent of the Company), directly or indirectly
(whether for your own interest or any other person or entity’s interest) any employee of the Company or any of its affiliates. This restriction does not apply to any employee who was not an employee of the Company or any of its affiliates at
any time during the six-month period immediately preceding your solicitation. This restriction does not apply to any former employee who was discharged by the Company or any of its affiliates. In addition, this restriction will not prevent you
from providing references. For the avoidance of doubt, a general (non-targeted), publicly-accessible advertisement (or web posting) of an open employment position will not in and of itself be deemed to be a breach of the solicitation
restrictions set forth in this paragraph. 

  
  

THE MADISON SQUARE GARDEN COMPANY 
 TWO PENNSYLVANIA PLAZA, NEW YORK, NY
10121-0091 
 TEL 212-465-6000 

  
 Mr. Joseph Yospe 

Page 10 
  
  

	5.	Specific Performance; Injunctive Relief 

 You understand and agree that (i) the
provisions of this Annex I are reasonable and appropriate for the Company’s protection of its legitimate business interests, (ii) the consideration provided under the Agreement is sufficient to justify the restrictions and limitations
contained in this Annex I, and (iii) the Company will suffer immediate, irreparable harm in the event you breach any of your obligations under the covenants and agreements set forth in this Annex I, that monetary damages will be inadequate to
compensate the Company for such breach and that the Company shall be entitled to injunctive relief as a remedy for any such breach (or threatened breach). Such remedy shall not be deemed to be the exclusive remedy in the event of breach by you of
any of the covenants or agreements set forth in this Annex I, but shall be in addition to all other remedies available to the Company at law or in equity. You hereby waive, to the extent you may legally do so, any requirement for security or the
posting of any bond or other surety in connection with any temporary or permanent award of injunctive or other equitable relief, and further waive, to the extent you may legally do so, the defense in any action for specific performance or other
equitable remedy that a remedy at law would be adequate. Notwithstanding anything to the contrary contained in this Agreement, in the event you violate the covenants and agreements set forth in this Annex I in any material respect, then, in addition
to all other rights and remedies available to the Company, the Company shall have no further obligation to pay you any severance benefits or to provide you with any other rights or benefits to which you would have been entitled pursuant to this
Agreement had you not breached the covenants and agreements set forth in this Annex I. 

  
  

THE MADISON SQUARE GARDEN COMPANY 
 TWO PENNSYLVANIA PLAZA, NEW YORK, NY
10121-0091 
 TEL 212-465-6000 

  
 Mr. Joseph Yospe 

Page 11 
  
  

 ANNEX II 

This Annex II constitutes part of the Agreement dated September 11, 2015 (the “Agreement”) by and between Joseph Yospe
(“You”) and The Madison Square Garden Company (the “Company”). 
 The provisions of this Annex II shall remain in effect
during your employment by the Company and for one year following the termination of your employment for any reason; provided, however, that if your employment is terminated either (i) by the Company for any reason other than Cause or
(ii) by you for Good Reason and Cause doesn’t then exist, then the provisions of this Annex II shall automatically expire on such Termination Date (but will be included in the Company’s proposed severance agreement which, for the
avoidance of doubt, you will not be required to sign if you wish to waive your rights to the severance benefits described in the Agreement). 

Capitalized terms contained herein, and not otherwise defined herein, shall have the meanings ascribed to them in the Agreement (or in the
Annex I attached thereto). 
 Non-Compete 

You acknowledge that due to your executive position in the Company and the knowledge of the Company’s and its affiliates’
confidential and proprietary information which you will obtain during the term of your employment hereunder, your employment by certain businesses would be irreparably harmful to the Company and/or its affiliates. During your employment with the
Company and thereafter through the first anniversary of the date on which your employment with the Company has terminated for any reason, you agree not to (other than with the prior written consent of the Company), become employed by, advise,
consult, have any material interest in or otherwise perform services for any Competitive Entity (as defined below). A “Competitive Entity” shall mean any (A) (i) NHL or NBA team located in New York, New Jersey or Connecticut, or
(ii) any arena or theater (with at least 1,000 seats) that competes in the same city as any of the Company’s arenas or theaters, respectively, or (B) affiliate of any person or entity that operates any of the types of businesses
described in clause (A) above, provided that you may become employed or otherwise provide services to such an affiliate of a Competitive Entity, so long as (x) your services are neither provided to, nor benefit, such Competitive
Entity described in clause (A) and (y) the affiliate is not a direct or indirect parent company of the Competitive Entity described in clause (A) if the Competitive Entity subsidiary constitutes more than 30% of the total revenue of
the parent company consolidated family of companies. Additionally, the ownership by you of not more than 1% of the outstanding equity of any publicly traded company shall not, by itself, be a violation of this Paragraph. 

By accepting the provisions set forth in this Annex II, you understand that the terms and conditions of this Annex II may limit your
ability to earn a livelihood in a business similar to the business of the Company and its affiliates, but nevertheless hereby agree that the restrictions and limitations hereof are reasonable in scope, area and duration, and that the consideration
provided under the Agreement and the severance agreement is sufficient to justify the restrictions and limitations contained herein which, in any event (given your education, skills and ability), you do not believe would prevent you from otherwise
earning a living. You further agree that the restrictions are reasonable and necessary, are valid and enforceable under New York law, and do not impose a greater restraint than necessary to protect the Company’s legitimate business interests.

  
  

THE MADISON SQUARE GARDEN COMPANY 
 TWO PENNSYLVANIA PLAZA, NEW YORK, NY
10121-0091 
 TEL 212-465-6000 

  
 Mr. Joseph Yospe 

Page 12 
  
  

 You understand and agree that the Company will suffer immediate, irreparable harm in the event
you breach any of your obligations under the covenants and agreements set forth in this Annex II, that monetary damages will be inadequate to compensate the Company for such breach and that the Company shall be entitled to injunctive relief as a
remedy for any such breach (or threatened breach). Such remedy shall not be deemed to be the exclusive remedy in the event of breach (or threatened breach) by you of any of the covenants or agreements set forth in this Annex II, but shall
be in addition to all other remedies available to the Company at law or in equity. You hereby waive, to the extent you may legally do so, (i) any requirement for security or the posting of any bond or other surety in connection with any
temporary or permanent award of injunctive or other equitable relief, and (ii) the defense in any action for specific performance or other equitable remedy that a remedy at law would be adequate. Notwithstanding anything to the contrary
contained in the Agreement, in the event you violate the covenants and agreements set forth in this Annex II, in addition to all other rights and remedies available to the Company, the Company shall have no further obligation to pay you any
severance benefits or to provide you with any other rights or benefits to which you would have been entitled pursuant to the Agreement or the severance agreement had you not breached the covenants and agreements set forth in this Annex II. 

The restrictions contained in this Annex II shall be extended on a day-for-day basis for each day during which you violate the provisions
of this Annex II in any respect. 

  
  

THE MADISON SQUARE GARDEN COMPANY 
 TWO PENNSYLVANIA PLAZA, NEW YORK, NY
10121-0091 
 TEL 212-465-6000Exhibit 10.1

 

ELEPHANT TALK COMMUNICATIONS CORP.

 

SUBSCRIPTION AGREEMENT

 

The undersigned (hereinafter
“Subscriber”) hereby confirms his/her/its subscription for the purchase of ______________ shares of Series A
Preferred Stock (the “Preferred Shares”), with each Preferred Share convertible into such number of shares which
shall equal .04% of the issued and outstanding shares of common stock immediately prior to conversion of Elephant Talk Communications
Corp., a Delaware corporation (the “Company”), on the terms described below.

 

The Preferred Shares
and underlying shares of Common Stock are sometimes referred to herein as the “Securities.”

 

In connection with
this subscription, Subscriber and the Company agree as follows:

 

1.            Purchase
and Sale of the Preferred Shares.

 

(a)          The
Company hereby agrees to issue and to sell to Subscriber, and Subscriber hereby agrees to purchase from the Company, Preferred
Shares for the aggregate subscription amount set forth on the signature page hereto. The Subscriber understands that this subscription
is not binding upon the Company until the Company accepts it. The Subscriber acknowledges and understands that acceptance of this
Subscription will be made only by a duly authorized representative of the Company executing and mailing or otherwise delivering
to the Subscriber at the Subscriber’s address set forth herein, a counterpart copy of the signature page to this Subscription
Agreement indicating the Company’s acceptance of this Subscription. The Company reserves the right, in its sole discretion
for any reason whatsoever, to accept or reject this subscription in whole or in part. Following the acceptance of this Subscription
Agreement by the Company, the Company shall issue and deliver to Subscriber the Preferred Shares subscribed for hereunder against
payment in U.S. Dollars of the Purchase Price (as defined below). If this subscription is rejected, the Company and the Subscriber
shall thereafter have no further rights or obligations to each other under or in connection with this Subscription Agreement. If
this subscription is not accepted by the Company on or before the last day of the Offering Period, this subscription shall be deemed
rejected.

 

(b)          Subscriber
has hereby delivered and paid concurrently herewith the aggregate purchase price for the Preferred Shares set forth on the signature
page hereof in an amount required to purchase and pay for the Preferred Shares subscribed for hereunder (the “Purchase
Price”), which amount has been paid in U.S. Dollars by wire transfer or check, subject to collection, to the order of
“Elephant Talk Communications Corp.”

 

(c)          Subscriber
understands and acknowledges that this subscription is part of a private placement by the Company of up to a minimum of $500,000
(the “Minimum Amount”) and a maximum of $1,500,000 in Preferred Shares, which offering is being made on a “all-or-none”
basis with respect to the Minimum Amount and a “best efforts” basis with respect to the Maximum Amount. Subscriber
understands that Company must sell the Minimum Amount before it receives, and have the right to expend, the net proceeds from the
sale of any Preferred Shares. The proceeds from the sale of the Preferred Shares will be held in escrow until at least the Minimum
Amount is met, and the Company, upon accepting subscriptions, at its discretion may immediately thereafter conduct a closing and
expend the subscription proceeds.

 

    	 	1	 

     

    

 

2.           Representations
and Warranties of Subscriber. Subscriber represents and warrants to the Company and the Placement Agent as follows:

 

(a)          Subscriber
is an “accredited investor” as defined by Rule 501 under the Securities Act of 1933, as amended (the “Act”),
and Subscriber is capable of evaluating the merits and risks of Subscriber’s investment in the Securities and has the ability
and capacity to protect Subscriber’s interests.

 

(b)          Subscriber
understands that the Securities have not been registered. Subscriber understands that the Securities will not be registered under
the Act on the ground that the issuance thereof is exempt under Section 4(a)(2) and Rule 506(b) of the Act and as a transaction
by an issuer not involving any public offering and that, in the view of the United States Securities and Exchange Commission (the
“SEC”), the statutory basis for the exception claimed would not be present if any of the representations and
warranties of Subscriber contained in this Subscription Agreement or those of other purchasers of the Preferred Shares are untrue
or, notwithstanding the Subscriber’s representations and warranties, the Subscriber currently has in mind acquiring any of
the Preferred Shares for resale upon the occurrence or non-occurrence of some predetermined event.

 

(c)          Subscriber
is purchasing the Preferred Shares subscribed for hereby for investment purposes and not with a view to distribution or resale,
nor with the intention of selling, transferring or otherwise disposing of all or any part thereof for any particular price, or
at any particular time, or upon the happening of any particular event or circumstance, except selling, transferring, or disposing
of the Securities in full compliance with all applicable provisions of the Act, the rules and regulations promulgated by the SEC
thereunder, and applicable state securities laws; and that an investment in the Securities is not a liquid investment.

 

(d)          Subscriber
acknowledges that Subscriber has had the opportunity to ask questions of, and receive answers from, the Company or any authorized
person acting on its behalf concerning the Company and its business and to obtain any additional information, to the extent possessed
by the Company (or to the extent it could have been acquired by the Company without unreasonable effort or expense) necessary to
verify the accuracy of the information received by Subscriber. In connection therewith, Subscriber acknowledges that Subscriber
has had the opportunity to discuss the Company’s business, management and financial affairs with the Company’s management
or any authorized person acting on its behalf. Subscriber has received and reviewed the Sub, and all the information concerning
the Company and the Securities, both written and oral, that Subscriber desires. Without limiting the generality of the foregoing,
Subscriber has been furnished with or has had the opportunity to acquire, and to review: (i) copies of all of the Company’s
publicly available documents, the Subscription Booklet, and (ii) all information, both written and oral, that Subscriber desires
with respect to the Company’s business, management, financial affairs and prospects. In determining whether to make this
investment, Subscriber has relied solely on (i) Subscriber’s own knowledge and understanding of the Company and its business
based upon Subscriber’s own due diligence investigations and the information furnished pursuant to this paragraph, and (ii)
the information described in subparagraph 2(g) below. Subscriber understands that no person has been authorized to give any information
or to make any representations which were not contained in the Subscription Booklet and Subscriber has not relied on any other
representations or information.

 

    	 	2	 

     

    

 

(f)          Subscriber
has all requisite legal and other power and authority to execute and deliver this Subscription Agreement and to carry out and perform
Subscriber’s obligations under the terms of this Subscription Agreement. This Subscription Agreement constitutes a valid
and legally binding obligation of Subscriber, enforceable in accordance with its terms, subject to laws of general application
relating to bankruptcy, insolvency and the relief of debtors and rules of law governing specific performance, injunctive relief
or other general principles of equity, whether such enforcement is considered in a proceeding in equity or law.

 

(g)          Subscriber
has carefully considered and has discussed with the Subscriber’s legal, tax, accounting and financial advisors, to the extent
the Subscriber has deemed necessary, the suitability of this investment and the transactions contemplated by this Subscription
Agreement for the Subscriber’s particular federal, state, local and foreign tax and financial situation and has independently
determined that this investment and the transactions contemplated by this Subscription Agreement are a suitable investment for
the Subscriber. Subscriber has relied solely on such advisors and not on any statements or representations of the Company or any
of its agents. Subscriber understands that Subscriber (and not the Company) shall be responsible for Subscriber’s own tax
liability that may arise as a result of this investment or the transactions contemplated by this Subscription Agreement.

 

(h)          This
Subscription Agreement and the Confidential Subscriber Questionnaire accompanying this Subscription Agreement do not contain any
untrue statement of a material fact or omit any material fact concerning Subscriber.

 

(i)          There
are no actions, suits, proceedings or investigations pending against Subscriber or Subscriber’s assets before any court or
governmental agency (nor, to Subscriber’s knowledge, is there any threat thereof) which would impair in any way Subscriber’s
ability to enter into and fully perform Subscriber’s commitments and obligations under this Subscription Agreement or the
transactions contemplated hereby.

 

(j)          The
execution, delivery and performance of and compliance with this Subscription Agreement and the issuance of the Preferred Shares
constituting the components of the Preferred Shares will not result in any violation of, or conflict with, or constitute a default
under, any of Subscriber’s articles of incorporation or by-laws, or equivalent limited liability company, trust or partnership
documents, if applicable, or any agreement to which Subscriber is a party or by which it is bound, nor result in the creation of
any mortgage, pledge, lien, encumbrance or charge against any of the assets or properties of Subscriber or the Preferred Shares.

 

    	 	3	 

     

    

 

(k)          Subscriber
acknowledges that an investment in the Securities is speculative and involves a high degree of risk and that Subscriber can bear
the economic risk of the purchase of the Securities, including a total loss of his/her/its investment.

 

(l)          Subscriber
acknowledges that he/she/it has carefully reviewed and considered the risk factors discussed in the “Risk Factors”
section of the Subscription Booklet.

 

(m)          Subscriber
recognizes that no federal, state or foreign agency has recommended or endorsed the purchase of the Securities.

 

(n)          Subscriber
is aware that the Preferred Shares are, and the Common Stock issuable upon conversion of the Preferred Shares will be, when issued,
“restricted securities” as that term is defined in Rule 144 of the general rules and regulations under the Act.

 

(o)          Subscriber
understands that the Preferred Shares shall bear the following legend or one substantially similar thereto, which Subscriber has
read and understands:

 

NEITHER THIS SECURITY NOR
ANY SECURITY INTO WHICH IT MAY BE CONVERTED HAS BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”) OR APPLICABLE STATE SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY SECURITY INTO WHICH IT MAY BE CONVERTED NOR ANY
INTEREST OR PARTICIPATION HEREIN OR THEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED
OF AT ANY TIME IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM REGISTRATION. 

 

(p)          Because
of the legal restrictions imposed on resale, Subscriber understands that the Company shall have the right to note stop-transfer
instructions in its stock transfer records, and Subscriber has been informed of the Company’s intention to do so. Any sales,
transfers, or other dispositions of the Preferred Shares by Subscriber, if any, will be made in compliance with the Act and all
applicable rules and regulations promulgated thereunder.

 

(q)          Subscriber
acknowledges that Subscriber has such knowledge and experience in financial and business matters that Subscriber is capable of
evaluating the merits and risks of an investment in the Securities and of making an informed investment decision with respect thereto.

 

(r)          Subscriber
represents that: (i) Subscriber is able to bear the economic risks of an investment in the Securities and to afford a complete
loss of the investment, and (ii) (A) Subscriber could be reasonably assumed to have the ability and capacity to protect his/her/its
interests in connection with this subscription; or (B) Subscriber has a pre-existing personal or business relationship with either
the Company or any affiliate thereof of such duration and nature as would enable a reasonably prudent purchaser to be aware of
the character, business acumen and general business and financial circumstances of the Company or such affiliate and is otherwise
personally qualified to evaluate and assess the risks, nature and other aspects of this subscription.

 

    	 	4	 

     

    

 

(s)          Subscriber
further represents that the address of Subscriber set forth below is his/her principal residence (or, if Subscriber is a company,
partnership or other entity, the address of its principal place of business); that Subscriber is purchasing the Securities for
Subscriber’s own account and not, in whole or in part, for the account of any other person; Subscriber is purchasing the
Securities for investment and not with a view to the resale or distribution thereof; and that Subscriber has not formed any entity,
and is not an entity formed, for the purpose of purchasing the Securities.

 

(t)          Subscriber
understands that the Company shall have the unconditional right to accept or reject this subscription, in whole or in part, for
any reason or without a specific reason, in the sole and absolute discretion of the Company (even after receipt and clearance of
Subscriber’s funds). This Subscription Agreement is not binding upon the Company until accepted in writing by an authorized
officer of the Company. In the event that this subscription is rejected, then Subscriber’s subscription funds (to the extent
of such rejection) will be promptly returned in full without interest thereon or deduction therefrom.

 

(u)          Subscriber
has not been furnished with any oral representation or oral information in connection with the offering of the Securities that
is not contained in, or is in any way contrary to or inconsistent with, statements made in the Subscription Booklet and this Subscription
Agreement.

 

(v)         Subscriber
represents that Subscriber is not subscribing for the Securities as a result of or subsequent to any advertisement, article, notice
or other communication published in any newspaper, magazine or similar media or broadcast over the Internet, television or radio
or presented at any seminar or meeting or any public announcement or filing of or by the Company.

 

(w)          Subscriber
has carefully read this Subscription Agreement and the Subscription Booklet, and Subscriber has accurately completed the Confidential
Subscriber Questionnaire which accompanies this Subscription Agreement.

 

(x)          No
representations or warranties have been made to Subscriber by the Company, or any officer, employee, agent, affiliate or subsidiary
of the Company, other than the representations of the Company contained herein, and in subscribing for the Securities the Subscriber
is not relying upon any representations other than those contained in the Subscription Booklet or in this Subscription Agreement.

 

(y)          Subscriber
represents and warrants, to the best of Subscriber’s knowledge, that no finder, broker, agent, financial advisor or other
intermediary, nor any purchaser representative or any broker-dealer acting as a broker, is entitled to any compensation in connection
with the transactions contemplated by this Subscription Agreement.

 

(z)          Subscriber
represents and warrants that Subscriber has: (i) not distributed or reproduced the Subscription Booklet, in whole or in part, at
any time, without the prior written consent of the Company, (ii) kept confidential the existence of the Subscription Booklet and
the information contained therein or made available in connection with any further investigation of the Company and (iii) refrained
and shall refrain from trading in the publicly-traded securities of the Company for so long as such recipient has been in possession
of any material non-public information contained in the Subscription Booklet.

 

    	 	5	 

     

    

 

(aa)         If
the Subscriber is a corporation, partnership, limited liability company, trust, or other entity, the person executing this Subscription
Agreement hereby represents and warrants that the above representations and warranties shall be deemed to have been made on behalf
of such entity and the Subscriber has made the same after due inquiry to determine the truthfulness of such representations and
warranties.

 

(bb)         If the Subscriber is a corporation,
partnership, limited liability company, trust, or other entity, it represents that: (i) it is duly organized, validly existing
and in good standing in its jurisdiction of incorporation or organization and has all requisite power and authority to execute
and deliver this Subscription Agreement and purchase the Securities as provided herein; (ii) its purchase of the Securities will
not result in any violation of, or conflict with, any term or provision of the charter, by-laws or other organizational documents
of Subscriber or any other instrument or agreement to which the Subscriber is a party or is subject; (iii) the execution and delivery
of this Subscription Agreement and Subscriber’s purchase of the Securities has been duly authorized by all necessary action
on behalf of the Subscriber; and (iv) all of the documents relating to the Subscriber’s subscription to the Securities have
been duly executed and delivered on behalf of the Subscriber and constitute a legal, valid and binding agreement of the Subscriber.

 

(cc)         The
Subscriber understands and agrees that the securities are anticipated to be sold by the Company through the Placement Agent, a
licensed broker-dealer, in an “best efforts” offering and that the Company has engaged the Placement Agent to sell
the securities on its behalf, and will pay the Placement Agent the fees and expenses set forth in the Subscription Booklet in connection
with the sale of the Securities.

 

(dd)         The
Subscriber should check the Office of Foreign Assets Control (“OFAC”) website at <http://www.treas.gov/ofac>
before making the following representations. The Subscriber represents that the amounts invested by it in the Company in the Offering
were not and are not directly or indirectly derived from activities that contravene federal, state or international laws and regulations,
including anti-money laundering laws and regulations. Federal regulations and Executive Orders administered by OFAC prohibit, among
other things, the engagement in transactions with, and the provision of services to, certain foreign countries, territories, entities
and individuals. The lists of OFAC prohibited countries, territories, persons and entities can be found on the OFAC website at
<http://www.treas.gov/ofac>. In addition, the programs administered by OFAC (the “OFAC Programs”) prohibit dealing
with individuals or entities in certain countries regardless of whether such individuals or entities appear on the OFAC lists;

 

    	 	6	 

     

    

 

To the best of the
Subscriber’s knowledge, none of: (1) the Subscriber; (2) any person controlling or controlled by the Subscriber; (3) if the
Subscriber is a privately-held entity, any person having a beneficial interest in the Subscriber; or (4) any person for whom the
Subscriber is acting as agent or nominee in connection with this investment is a country, territory, individual or entity named
on an OFAC list, or a person or entity prohibited under the OFAC Programs. Please be advised that the Company may not accept any
amounts from a prospective investor if such prospective investor cannot make the representation set forth in the preceding paragraph.
The Subscriber agrees to promptly notify the Company and the Placement Agent should the Subscriber become aware of any change in
the information set forth in these representations. The Subscriber understands and acknowledges that, by law, the Company may be
obligated to “freeze the account” of the Subscriber, either by prohibiting additional subscriptions from the Subscriber,
declining any redemption requests and/or segregating the assets in the account in compliance with governmental regulations, and
Placement Agent may also be required to report such action and to disclose the Subscriber’s identity to OFAC. The Subscriber
further acknowledges that the Company may, by written notice to the Subscriber, suspend the redemption rights, if any, of the Subscriber
if the Company reasonably deems it necessary to do so to comply with anti-money laundering regulations applicable to the Company
and Placement Agent or any of the Company’s other service providers. These individuals include specially designated nationals,
specially designated narcotics traffickers and other parties subject to OFAC sanctions and embargo programs;

 

To the best of the
Subscriber’s knowledge, none of: (1) the Subscriber; (2) any person controlling or controlled by the Subscriber; (3) if the
Subscriber is a privately-held entity, any person having a beneficial interest in the Subscriber; or (4) any person for whom the
Subscriber is acting as agent or nominee in connection with this investment is a senior foreign political figure , or any immediate
family member or close associate of a senior foreign political figure; and

 

If the Subscriber is
affiliated with a non-U.S. banking institution (a “Foreign Bank”), or if the Subscriber receives deposits from,
makes payments on behalf of, or handles other financial transactions related to a Foreign Bank, the Subscriber represents and warrants
to the Company that: (1) the Foreign Bank has a fixed address, other than solely an electronic address, in a country in which the
Foreign Bank is authorized to conduct banking activities; (2) the Foreign Bank maintains operating records related to its banking
activities; (3) the Foreign Bank is subject to inspection by the banking authority that licensed the Foreign Bank to conduct banking
activities; and (4) the Foreign Bank does not provide banking services to any other Foreign Bank that does not have a physical
presence in any country and that is not a regulated affiliate.

 

3.           Representations
and Warranties of the Company. The Company represents and warrants to Subscriber as follows:

 

(a)          Due
Organization. The Company is a corporation duly organized, validly existing and in good standing under the laws of Delaware
and has the requisite power and authority to own its properties and to carry on its business as presently conducted. The Company
is qualified to transact business as a foreign corporation and is in good standing under the laws of each jurisdiction where the
location of its properties or the conduct of its business makes such qualification necessary, except where the failure to be so
qualified and in good standing would not have a material and adverse effect on the business, condition (financial or otherwise),
operations, prospects or property of the Company or any of its subsidiaries, taken as a whole (“Material Adverse Effect”).

 

    	 	7	 

     

    

 

(b)          Due
Authorization; Enforceability. Each transaction document has been duly authorized, executed and delivered by the Company and
is a valid and binding agreement enforceable in accordance with its terms, subject to bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium and similar laws of general applicability relating to or affecting creditors’ rights generally
and to general principles of equity. The Company has full corporate power and authority necessary to conduct its business as presently
conducted and to enter into and deliver the transaction documents and to perform its obligations thereunder.

 

(c)          Non
Contravention. None of the execution and delivery of, or performance by the Company under, any of the transaction documents
or the consummation of the transactions herein or therein contemplated conflicts with or violates, or will result in the creation
or imposition of any lien, charge or other encumbrance upon any of the assets of the Company under, any agreement or other instrument
to which the Company is a party or by which the Company or its assets may be bound, any term of the certificate of incorporation
or by-laws of the Company, or any license, permit, judgment, decree, order, statute, rule or regulation applicable to the Company
or any of its assets, except where such conflict, violation or creation

 

(d)          Conduct
of Business. The conduct of business by the Company as presently conducted is not subject to continuing oversight, supervision,
regulation or examination by any governmental official or body of the United States or any other jurisdiction wherein the Company
conducts or proposes to conduct such business, except as such regulation as is applicable to commercial enterprises generally.
The Company has obtained all requisite licenses, permits and other governmental authorization necessary to conduct its business
as presently, and as proposed to be, conducted, except where the failure to obtain such license, permit or other governmental authorization
would result in a Material Adverse Effect.

 

(e)          No
Defaults. No default by the Company exists in the due performance under any material agreement to which the Company is a party
or to which any of its assets is subject (collectively, the “Company Agreements”), except where such defaults
do not, individually or in the aggregate, have a Material Adverse Effect. The Company Agreements are in full force and effect in
accordance with their respective terms.

 

(f)          Anti-Terrorism.
Neither the sale of the Preferred Shares by the Company nor its use of the proceeds thereof will violate the Trading with the Enemy
Act, as amended, or any of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B,
Chapter V, as amended) or any enabling legislation or executive order relating thereto. Without limiting the foregoing, the Company
is not (a) a person whose property or interests in property are blocked pursuant to Section 1 of Executive Order 13224 of September
23, 2001 Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism (66 Fed.
Reg. 49079 (2001)) or (b) a person who engages in any dealings or transactions, or be otherwise associated, with any such person.
The Company and its subsidiaries are in compliance, in all material respects, with the USA Patriot Act of 2001 (signed into law
October 26, 2001).

 

    	 	8	 

     

    

 

(g)          Capitalization;
Additional Issuances. The issued and outstanding securities of the Company as of August 19, 2016 are as set forth in the Subscription
Booklet. Except as set forth in the Subscription Booklet, as of August 19, 2016 there are no outstanding agreements or preemptive
or similar rights affecting the Company’s Common Stock and no outstanding rights, warrants or options to acquire, or instruments
convertible into or exchangeable for, or agreements or understandings with respect to the sale or issuance of any Common Stock
of the Company.

 

(h)          Consents.
No consent, approval, authorization or order of any court, governmental agency or body or arbitrator having jurisdiction over the
Company, or any of its affiliates, is required for the execution by the Company of the transaction documents and compliance and
performance by the Company of its obligations under the transaction documents, including, without limitation, the issuance and
sale of the Securities, other than such consents, approvals and authorizations as shall have been received by the Company as of
the closing date.

 

(i)          The
Securities. The Securities upon issuance:

 

(i)          are,
or will be, free and clear of any security interests, liens, claims or other encumbrances, subject to restrictions upon transfer
under the Act and any applicable state securities laws;

 

(ii)         have
been, or will be, duly and validly authorized and on the date of issuance of the Securities, such Securities will be duly and validly
issued, fully paid and non-assessable;

 

(iii)        will
not have been issued or sold in violation of any preemptive or other similar rights of the holders of any securities of the Company;

 

(iv)        will
have been issued in reliance upon an exemption from the registration requirements of and, assuming the representations and warranties
of the Subscriber herein is true and accurate, will have been issued in compliance with Section 5 under the 1933 Act.

 

(j)          Litigation.
Except as disclosed in the Subscription Booklet, there are no material legal proceedings, other than routine litigation incidental
to the business, pending or, to the knowledge of the Company, threatened against or involving the Company or any of its respective
property or assets. There are no outstanding orders, judgments, injunctions, awards or decrees of any court, governmental or regulatory
body or arbitration tribunal against or involving the Company.

 

4.           Indemnification.
Subscriber agrees to indemnify and hold harmless the Company, the Placement Agent, and their respective officers, directors, employees,
shareholders, agents, attorneys, representatives and affiliates, and any person acting for or on behalf of the Company or the Placement
Agent, from and against any and all damage, loss, liability, cost and expense (including reasonable attorneys’ fees and disbursements)
which any of them may incur by reason of the failure by Subscriber to fulfill any of the terms and conditions of this Subscription
Agreement, or by reason of any breach of the representations and warranties made by Subscriber herein, or in any other document
provided by Subscriber to the Company in connection with this investment. All representations, warranties and covenants of each
of Subscriber and the Company contained herein shall survive the acceptance of this subscription and the closings.

 

    	 	9	 

     

    

 

5.           Miscellaneous.

 

(a)          Subscriber
agrees not to transfer or assign this Subscription Agreement or any of Subscriber’s interest herein and further agrees that
the transfer or assignment of the Securities acquired pursuant hereto shall be made only in accordance with all applicable laws.

 

(b)          Subscriber
agrees that Subscriber cannot cancel, terminate, or revoke this Subscription Agreement or any agreement of Subscriber made hereunder,
and this Subscription Agreement shall survive the death or legal disability of Subscriber and shall be binding upon Subscriber’s
heirs, executors, administrators, successors, and permitted assigns.

 

(c)          Subscriber
has read and has accurately completed this entire Subscription Agreement.

 

(d)          This
Subscription Agreement, the Confidential Purchase Questionnaire and the Preferred Shares constitute the entire agreement between
the parties hereto with respect to the subject matter hereof and may be amended or waived only by a written instrument signed by
all parties.

 

(f)          Subscriber
acknowledges that it has been advised and has had the opportunity to consult with Subscriber’s own attorney regarding this
subscription and Subscriber has done so to the extent that Subscriber deems appropriate.

 

(g)          Any
notice or other document required or permitted to be given or delivered to the parties hereto shall be in writing and sent: (i)
by fax if the sender on the same day sends a confirming copy of such notice by a recognized overnight delivery service (charges
prepaid), or (b) by registered or certified mail with return receipt requested (postage prepaid) or (c) by a recognized overnight
delivery service (with charges prepaid).

 

If to the Company, at:

 

Elephant
Talk Communications Corp.

100 Park Avenue, New York City,
NY 10017

Attention: Alexander Korff, General
Counsel

Tel: (212)
984-1096, Fax: (212) 880 6499

 

With a copy
to:

 

Barry I.
Grossman, Esq.

Ellenoff
Grossman & Schole LLP

1345 Avenue
of the Americas FL 11

New York,
NY 10105

Tel: (212)
370-1300, Fax: (212) 370-7889

 

    	 	10	 

     

    

  

If to the Subscriber, at its address
set forth on the signature page to this Subscription Agreement, or such other address as Subscriber shall have specified to the
Company in writing.

 

(h)          Failure
of the Company to exercise any right or remedy under this Subscription Agreement or any other agreement between the Company and
the Subscriber, or otherwise, or any delay by the Company in exercising such right or remedy, will not operate as a waiver thereof.
No waiver by the Company will be effective unless and until it is in writing and signed by the Company.

 

(i)          This
Subscription Agreement shall be enforced, governed and construed in all respects in accordance with the laws of the State of New
York, as such laws are applied by the New York courts except with respect to the conflicts of law provisions thereof, and shall
be binding upon the Subscriber and the Subscriber’s heirs, estate, legal representatives, successors and permitted assigns
and shall inure to the benefit of the Company, and its successors and assigns.

 

(j)          Any
legal suit, action or proceeding arising out of or relating to this Subscription Agreement or the transactions contemplated hereby
shall be instituted exclusively in New York Supreme Court, County of New York, or in the United States District Court for the Southern
District of New York. The parties hereto hereby: (i) waive any objection which they may now have or hereafter have to the venue
of any such suit, action or proceeding, and (ii) irrevocably consent to the jurisdiction of the New York Supreme Court, County
of New York, and the United States District Court for the Southern District of New York in any such suit, action or proceeding.
The parties further agree to accept and acknowledge service of any and all process which may be served in any such suit, action
or proceeding in the New York Supreme Court, County of New York, or in the United States District Court for the Southern District
of New York and agree that service of process upon a party which is mailed by certified mail to such party’s address shall
be deemed in every respect effective service of process upon such party in any such suit, action or proceeding.

 

(k)          If
any provision of this Subscription Agreement is held to be invalid or unenforceable under any applicable statute or rule of law,
then such provision shall be deemed modified to conform with such statute or rule of law. Any provision hereof that may prove invalid
or unenforceable under any law shall not affect the validity or enforceability of any other provisions hereof.

 

(l)          The
parties understand and agree that money damages would not be a sufficient remedy for any breach of this Subscription Agreement
by the Company or the Subscriber and that the party against which such breach is committed shall be entitled to equitable relief,
including an injunction and specific performance, as a remedy for any such breach, without the necessity of establishing irreparable
harm or posting a bond therefor. Such remedies shall not be deemed to be the exclusive remedies for a breach by either party of
this Subscription Agreement but shall be in addition to all other remedies available at law or equity to the party against which
such breach is committed.

 

    	 	11	 

     

    

 

(m)          All
pronouns and any variations thereof used herein shall be deemed to refer to the masculine, feminine, singular or plural, as identity
of the person or persons may require.

 

(n)          This
Subscription Agreement may be executed in counterparts and by facsimile, each of which shall be deemed an original, but all of
which shall constitute one and the same instrument.

 

[Remainder of Page intentionally left blank]

 

[Signature Pages Follow]

 

    	 	12	 

     

    

 

Signature Page for Individuals:

 

IN WITNESS WHEREOF,
Subscriber has caused this Subscription Agreement to be executed as of the date indicated below.

 

	$ 	 	 	 
	Purchase Price	 	Aggregate Amount of Investment
	 	 	 
	 	 	 
	Print or Type Name	 	Print or Type Name (Joint-owner)
	 	 	 
	 	 	 
	Signature	 	Signature (Joint-owner)
	 	 	 
	 	 	 
	Date	 	Date (Joint-owner)
	 	 	 
	 	 	 
	Social Security Number	 	Social Security Number (Joint-owner)
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	Address	 	Address (Joint-owner)
	 	 	 
	_______ Joint Tenancy	 	______ Tenants in Common

 

    	 	S-1	 

     

    

 

Signature Page for Partnerships Corporations
or Other Entities:

 

IN WITNESS WHEREOF,
Subscriber has caused this Subscription Agreement to be executed as of the date indicated below.

 

	$ ______________________________	 	$ ______________________________
	   Total Purchase Price	 	  Aggregate Amount of Investment
	 	 	 
	 	 	 
	Print or Type Name of Entity	 	 
	 	 	 
	 	 	 
	Address	 	 
	 	 	 
	 	 	 
	Taxpayer I.D. No. (if applicable)	 	Date
	 	 	 
	 	 	 
	Signature	 	Print or Type Name and Indicate
	 	 	Title or Position with Entity
	 	 	 
	 	 	 
	Signature (other authorized signatory)	 	Print or Type Name and Indicate
	 	 	Title or Position with Entity

 

    	 	S-1	 

     

    

 

Acceptance:

 

IN WITNESS WHEREOF,
the Company has caused this Subscription Agreement to be executed, and the foregoing subscription accepted, as of the date indicated
below.

 

	 	ELEPHANT TALK COMMUNICATION CORP.
	 	 	 
	 	 	 
	 	By:  	 
	 	Name: Robert H. Turner
	 	Title: Chairman

 

Date:__________________________, 2016

 

    	 	S-2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00262-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00262-of-00352.parquet"}]]