Document:

Amended and Restated Distribution Agmt. 4-24-02

 Exhibit 10.55 
  
 AMENDED AND RESTATED DISTRIBUTION AGREEMENT 
  
 This AMENDED AND RESTATED
DISTRIBUTION AGREEMENT, dated as of May 1, 2000, as amended on July 10, 2001 and further amended on July 27, 2001, and as amended and restated on April 24, 2002 (this “Agreement”), by and between IDT Netherlands, B.V.
(“IDT”), a corporation organized and existing under the laws of The Netherlands having an office at Ganges Plaza, 108 Ganges Street, El Paraiso Industrial Park, Rio Piedras, PR 00926, and Union Telecard Alliance, LLC
(“Distributor”), a limited liability company organized and existing under the laws of the State of Delaware having an office at 44 Cherry Valley Avenue, West Hempstead, NY 11552. 
  

WITNESSETH: 
  
 WHEREAS, IDT is
engaged in, among other activities, the sale of pre-paid phone cards (the “Products”); 
  
 WHEREAS,
Distributor is desirous of being appointed exclusive distributor of the Products in the fifty states of the United States of America and the District of Columbia (the “Exclusive Territory”); and 
  
 WHEREAS, IDT is willing to grant such appointment to the Distributor upon the terms and conditions herein set forth; 

 
 NOW, Therefore, it is mutually agreed by IDT and Distributor as follows: 
  

1. Definitions. 
  
 “Copyrights” shall mean mask works, rights of publicity and privacy, copyrights in works of authorship of any type, including software, registrations and applications for registration thereof throughout the world,
all rights therein provided by international treaties and conventions, all moral and common law rights thereto, and all other rights associated therewith. 
  
 “Patents” shall mean United States, foreign and international patents, patent applications and statutory invention registrations, including reissues, divisions, continuations,
continuations in part, extensions and reexaminations thereof, and all rights therein provided by international treaties and conventions. 
  
 “Trade Secrets” shall mean trade secrets, know-how and other confidential or proprietary technical, business and other information, including manufacturing and production processes and techniques, research
and development information, technology, drawings, specifications, designs, plans, proposals, technical data, financial, marketing and business data, pricing and cost information, business and marketing plans, customer and supplier lists and
information, and all rights in any jurisdiction to limit the use or disclosure thereof. 
  
 “Trademarks” shall mean trademarks, service marks, trade dress, logos, trade names, corporate names, URL addresses, domain names and symbols, slogans and other indicia of source or origin, including the goodwill of
the business symbolized thereby or associated therewith, common law rights thereto, registrations and applications for registration thereof
 

 throughout the world, all rights therein provided by international treaties and conventions and all other rights associated therewith.

  
 2. Appointment and Territories. 
  
 (a) Subject to the terms and conditions contained in this Agreement, for the term of this Agreement and any renewals hereof, IDT (i) appoints Distributor as exclusive
distributor of the Products in the Exclusive Territory and (ii) grants Distributor the non-exclusive right to solicit orders for and sell the Products in Puerto Rico, the Dominican Republic and United States Virgin Islands (the
“Non-exclusive Territories”, and together with the Exclusive Territory, the “Territories”). IDT reserves the right to sell the Products directly and through other distributors/sales representatives outside the
Exclusive Territory. Subject to Section 12 of this Agreement, Distributor shall not be entitled to any compensation from IDT with respect to sales of the Products made by IDT outside the Exclusive Territory. Distributor acknowledges and agrees that
any omission or failure by IDT to appoint other distributors/sales representatives in any of the Non-exclusive Territories or to sell Products directly therein, shall not amount to a waiver of its right to do so and shall not be construed as
conferring any exclusivity to Distributor in any such Non-exclusive Territories. 
  
 (b) Distributor shall not
solicit sales or knowingly sell the Products directly or indirectly outside of the Territories without the prior written consent of IDT, which may be withheld in the sole discretion of IDT. To the extent Distributor is legally able to do so,
Distributor shall cease selling to any customer or account that IDT reasonably demonstrates is selling Products, or is a source of Products being sold, outside the Territories without authorization from IDT and all profits (as reasonably determined
by the Chief Financial Officer of Distributor) from Distributor’s sales to such customers shall be received by Distributor solely for the account of IDT and shall be promptly paid by Distributor to IDT. 
  
 3. Prior Goodwill. 
  
 Distributor acknowledges that IDT has heretofore, directly or through agents and representatives, promoted, marketed and sold the Products in the Territories, having thus developed the Products’ goodwill, good name,
reputation and consumer acceptance in the Territories. Distributor agrees to exercise its best efforts not to jeopardize the Products’ goodwill, good name, reputation and consumer acceptance in the Territories. 
  
 4. Independent Contractor. 
  
 DISTRIBUTOR IS AN INDEPENDENT CONTRACTOR WITH COMPLETE CONTROL OF THE DETAILS OF THE PERFORMANCE OF ITS OBLIGATIONS AS SET FORTH IN THIS AGREEMENT AND IS NOT TO BE DEEMED TO BE AN EMPLOYEE, AGENT OR
SERVANT OF IDT. DISTRIBUTOR HAS NO AUTHORITY TO CONTRACT FOR, OR ON BEHALF OF, IDT OR OTHERWISE TO BIND OR OBLIGATE IDT IN ANY MANNER WHATSOEVER. 
  
 IDT IS AN INDEPENDENT CONTRACTOR WITH COMPLETE CONTROL OF THE DETAILS OF THE PERFORMANCE OF ITS OBLIGATIONS AS SET FORTH IN THIS AGREEMENT AND IS NOT TO BE DEEMED TO BE AN EMPLOYEE, AGENT OR
 

 SERVANT OF DISTRIBUTOR. IDT HAS NO AUTHORITY TO CONTRACT FOR, OR ON BEHALF OF, DISTRIBUTOR OR OTHERWISE TO BIND OR OBLIGATE DISTRIBUTOR IN ANY
MANNER WHATSOEVER. 
  
 5. Distributor’s Representations, Warranties and Covenants. 

 
 (a) Distributor represents and warrants that it has all requisite power and authority to enter into and perform its obligations
under this Agreement, that it has the right, power and authority to perform its obligations hereunder, that the execution, delivery and performance of this Agreement will not violate or constitute a default under the terms of any agreement or
instrument to which Distributor or any of its affiliates is a party or by which any of its or their material assets or rights or privileges are subject or bound. 
  
 (b) Distributor represents and warrants that the Products shall be printed, packaged, labeled, packed and shipped in compliance with the requirements of all applicable Federal, state and local laws,
regulations, ordinances and administrative rules and orders (“Applicable Laws”). 
  
 (c) Distributor
agrees to: 
  
 (i) Exercise its best efforts to sell and solicit orders for the sale of the Products;

  
 (ii) Maintain adequate facilities and manpower to fulfill its obligations to IDT under this
Agreement; 
  
 (iii) Co-operate with IDT in developing and maintaining programs to familiarize its
salesmen and merchandisers with the Products; 
  
 (iv) Keep on hand and available for reference by
its salesmen such literature as IDT may supply regarding the Products; 
  
 (v) Prominently display
the Products and any promotional materials supplied by IDT; 
  
 (vi) Cooperate in any sales,
marketing or promotion efforts sponsored by IDT, including, but not limited to, customer seminars, trade shows, direct customer mailings, etc.; 
  
 (vii) Keep IDT advised of the potential demand for the Products as well as any event known to Distributor that may affect the sales or position of the Products in any market within any of the
Territories; 
  
 (viii) Keep data on sales volume and any other information reasonably necessary to
operate effectively and have such data available for IDT on a current basis; 
  
 (ix) Maintain and
keep an adequate supply of inventory of the 

 Products to meet anticipated demand and to avoid out-of-stock situations; 
  
 (x) Coordinate with IDT’s employee responsible for the Territories, who will act as IDT’s liaison, marketing arm
and coordinator to provide Distributor with technical assistance and marketing development for the Territories; 
  
 (xi) Make regular calls on all Distributor’s customers of Products in the Territories; 
  
 (xii) Transmit to IDT sales information on a timely basis as required to support marketing programs; and 
  
 (xiii) Maintain active customer files available to IDT. 
  
 6. Representations,
Warranties and Covenants of IDT. 
  
 (a) IDT represents and warrants that it has all requisite corporate power
and authority to enter into and perform its obligations under this Agreement, that it has the right, power and authority to perform its obligations hereunder and that the execution, delivery and performance of this Agreement will not violate or
constitute a default under the terms of any agreement or instrument to which IDT is a party or by which any of its material assets or rights or privileges are subject or bound. 
  

	(b)
	 
	Subject to Section 25, IDT hereby represents, warrants and covenants that it will not grant to any other entity, throughout the term of this Agreement, as such
term may be extended from time to time pursuant to Section 15, the right to sell Products in the Exclusive Territory. 
 

  

	(c)
	 
	IDT represents and warrants that any Products sold to Distributor pursuant to this Agreement shall be of good quality, merchantable and fit for the purpose
intended, and IDT further represents that the Products are not articles that may not be introduced into interstate commerce in the United States or that are misbranded in violation of any Applicable Laws. 
 

  
 7. Marketing, Advertising and Promotion. 
  
 All advertising and promotional campaigns (including, but not limited to, customer seminars, trade shows, direct customer mailings, etc.) conducted by Distributor in the Territories relating to the
Products shall be for the account of Distributor and any advertising allowance given off invoice by IDT shall be used only for advertising the Products. Distributor will prepare, distribute and use all proposed advertising, sales promotion and
display materials relating to the Products that utilize the Intellectual Property (as defined in Section 12), in each case in accordance with practices existing on the date hereof to maintain the goodwill of the Products and the validity and
goodwill of the Intellectual Property, and otherwise in accordance with such other practices as IDT may reasonably request. Except as otherwise agreed to in writing by IDT, IDT shall not be held liable for any expenses, disbursement, price
concession, advertising allowance or any other concessions. IDT shall be entitled to direct Distributor to
 

 discontinue preparing, distributing and/or using any material which it reasonably determines either (a) contains improper or insupportable
claims, (b) is incompatible with IDT’s marketing strategy or (c) conflicts with any Applicable Law or agreement to which IDT or any of its affiliates is subject, and upon notification to Distributor of any such direction, Distributor shall
forthwith or (other than with respect to clause (c)) otherwise as promptly as practicable under the circumstances discontinue the practice complained of. Distributor shall take such other measures as IDT may reasonably request from time to time to
protect the quality of the Products, the validity of the Intellectual Property and the goodwill related to each. 
  
 In this regard, IDT agrees to furnish Distributor, to the extent commercially reasonable, with marketing and sales support, as follows: 
  
 (a)    Trade advertising; 
  
 (b)    Production of sample materials; 
  
 (c)    Production of literature and promotional materials; 
  
 (d)    Sales leads when generated; and 
  
 (e)    Training. 
  
 8.
    Inspection. 
  
 IDT and its authorized representatives may at any reasonable time
inspect Distributor’s records to verify the compliance of Distributor with the provisions of this Agreement. Representatives of IDT shall have access to Distributor’s place of business at all reasonable times for the purpose of taking
inventory of the stock on hand. 
  
 9.     Primary Area of Focus.

  
 It is the intention of the parties that Distributor devote its resources to building up the Products of IDT and,
therefore, subject to Sections 11 and 25 hereof, Distributor and its subsidiaries agree not to purchase or distribute products similar to the Products from any source other than IDT unless otherwise agreed to by IDT in writing; provided,
however, that Distributor may continue distributing products from non-IDT sources, which are similar to the Products, representing monthly gross revenues not to exceed $3,000,000, if such products from non-IDT sources (a) were distributed by
Distributor or Distributor’s predecessor on or prior to May 1, 2000, or (b) were distributed by Distributor with IDT’s approval during the period May 1, 2000 to, and including, April 24, 2002 and which are also currently distributed by the
Distributor. 
  
 10.     Terms of Sale. 
  
 (a) Subject to the terms of the Operating Agreement of Distributor, dated as of April 27, 1998, as amended on May 1, 1998, May 1, 2001 and
June 1, 2001, and as amended and restated on the date hereof (the “Operating Agreement”), IDT shall establish from time to time the sales price and the terms and conditions at which the Products are to be sold to Distributor. Credit
terms will be 30 days. Credit limits will be established from time to time by 

 

 IDT. In connection with IDT’s establishment of credit limits, Distributor agrees to provide IDT from time to time with such financial and
credit information as may be necessary for IDT to establish credit limits. Subject to the terms of the Operating Agreement, said prices, terms and conditions are subject to change by IDT. 
  
 (b) IDT WILL BILL DISTRIBUTOR IN EUROS OR U.S. DOLLARS AND DISTRIBUTOR AGREES TO PAY IN THE BILLED CURRENCY. IT IS AGREED AMONG THE PARTIES THAT TITLE TO THE PRODUCTS AND
RISK OF LOSS PASSES TO DISTRIBUTOR IN PUERTO RICO UPON ACTIVATION OF THE PRODUCTS. DISTRIBUTOR shall make payments to bank accounts designated by IDT and/or provide IDT with satisfactory collateral securing amounts due to IDT from time to time on
account of inventory advances. 
  
 (c) Subject to the terms of the Operating Agreement, IDT reserves the right to
reject an order or cancel the same or any part thereof after acceptance, for credit or any other reason. While it is acknowledged that all delivery dates requested by Distributor are approximate, IDT will use commercially reasonable efforts to
timely fill Distributor’s orders. 
  
 11. Product Specifications and Supply. 
  
 Distributor understands and agrees that IDT reserves the right, at any time and from time to time without advance notice and without
thereby incurring any liability or obligation to Distributor, to: (i) change the specifications for the Products; (ii) change its sourcing, sales and distribution policies; and (iii) discontinue the sale to Distributor of any Products no longer
marketed by IDT, provided that IDT shall use commercially reasonable efforts to notify Distributor at least forty-five (45) days prior to discontinuing the sale to Distributor of Products no longer marketed by IDT and provided,
further, that if IDT (A) does not continue the sale to Distributor of Products from which Distributor generates net profits (calculated at such time based on a three month period ending on the last day of the calendar month immediately
preceding the date IDT discontinues the sale of such Products) and (B) does not offer Distributor reasonably suitable replacement Products, then Distributor may seek to obtain replacement products from third parties for the specific market segments
to which such discontinued Products were targeted, provided, however, that Distributor shall discontinue its marketing and distribution of any such replacement products from third parties within 30 days following IDT’s commitment
to provide Distributor with (and the subsequent provision of) (i) the discontinued Products with respect to which such replacement products have been obtained or (ii) reasonably suitable replacement Products. 
  
 12. Intellectual Property. 
  
 Except as specifically provided herein, this Agreement shall not be construed to give Distributor any right, title or interest in the Intellectual Property or the Products. 
  
 Subject to the foregoing, Distributor and IDT acknowledge that all Trademarks (whether registered or unregistered) and related goodwill,
and all Copyrights, Patents, Trade Secrets and all other intellectual property developed or used by Distributor, whether existing or used now or in the future and any causes of action that may arise therefrom (collectively, the
 

 “Intellectual Property”) are owned by IDT except for Distributor’s customer lists and customer information, all of which
are owned by Distributor. To the extent that Distributor may be found to have any proprietary interest or the appearance of a proprietary interest in the Intellectual Property (except for Distributor’s customer lists and customer information),
Distributor hereby assigns such interest and further agrees to take whatever additional action is necessary to assign such Intellectual Property to IDT and to register such Intellectual Property in IDT’s name, including, without limitation, the
execution of any assignment, registration, application or other documentation. In addition, Distributor hereby grants to IDT an irrevocable power of attorney to execute in its name any documents necessary to effect the intent of the preceding
sentence. 
  
 In consideration, and subject to the terms and conditions, of this Agreement, IDT hereby grants to
Distributor a royalty-free, non-exclusive, non-transferrable license to use the Intellectual Property (except for Distributor’s customer lists and customer information) in the Territories solely for the purpose of fulfilling Distributor’s
obligations hereunder (the “License”). The License shall terminate upon the termination of this Agreement; provided, however, that in connection with any Intellectual Property which is patented, if still effective, the
License with respect to the relevant patent will expire upon the termination of the patent, including any extension or renewal thereof, if prior to the termination of this Agreement. To the extent that Distributor has or acquires any control over
the quality of the Product, Distributor agrees to maintain the quality of the Product consistent with the historical quality of goods sold using any relevant Trademark licensed under the License to date. Distributor acknowledges that any and all
goodwill arising from Distributor’s use of the Intellectual Property consisting of Trademarks inures solely to the benefit of IDT. 
  
 Distributor hereby acknowledges that the Intellectual Property is licensed AS IS. IDT MAKES NO REPRESENTATION OR WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, WITH RESPECT TO THE INTELLECTUAL PROPERTY, INCLUDING WITHOUT
LIMITATION, ANY REPRESENTATION OR WARRANTY WITH RESPECT TO NON-INFRINGEMENT, VALIDITY OR OWNERSHIP. IDT reserves the right to require Distributor to discontinue use of (and terminate the License with respect to) any Intellectual Property licensed by
IDT to Distributor in the event that any third party asserts or threatens to assert that any such Intellectual Property infringes or violates such third party’s intellectual property rights. 
  

Distributor further acknowledges the validity of the Intellectual Property used in connection with the sale of Products, and agrees not to knowingly take any action
(or knowingly omit to take any action) that would prejudice or interfere with such validity or IDT’s ownership rights. Distributor further agrees not to use Trademarks licensed by IDT to Distributor or any other Trademark confusingly similar to
the Trademarks licensed by IDT to Distributor in connection with any goods other than the Products. 
  
 Distributor
agrees that it will notify IDT promptly of any infringement, misappropriation or violation of the Intellectual Property by third parties of which it becomes aware. 
  
 IDT agrees that any net profit (as reasonably determined by the Chief Financial Officer of IDT) directly or indirectly derived from the commercial exploitation by IDT of
the
 

 Intellectual Property set forth in Exhibit A to this Agreement prior to the termination of this Agreement, shall inure to the benefit of
Distributor, shall be received by IDT solely for the account of Distributor and shall be paid promptly by IDT to Distributor. The obligation of this paragraph is independent of and shall survive termination of the License. For the avoidance of any
doubt, any revenue or other payments received by IDT or any of its affiliates as members of Distributor or to which IDT or any of its affiliates may be entitled as members of Distributor, shall not be considered, for purposes of the preceding
sentence, to be net profit directly or indirectly derived from the commercial exploitation by IDT of the Intellectual Property set forth in Exhibit A. 
  
 13. Confidential Information. 
  
 Each of IDT and Distributor
agrees that it shall not, at any time during the term of this Agreement or thereafter without the written consent of the other, use or disclose to any third party any confidential and/or technical information relating to the other party or any of
the other party’s affiliates, made available to it by the other party or by any third party at the request or direction of the other party. The parties shall, upon termination of this Agreement, deliver to the other party all written material
relating to such confidential or technical information. Notwithstanding the foregoing, IDT and Distributor acknowledge that disclosure of any information or materials which are required to be disclosed pursuant to an Applicable Law, government
requirement or court order, or the rules of any stock exchange or automated quotation system, or national, federal, state, local or other governmental reporting requirements, shall be deemed not to be a breach of the covenants contained in this
Section 13. IDT and Distributor acknowledge and agree that each of its respective covenants pursuant to this Section 13 is an essential condition of this Agreement. Accordingly, without affecting any other rights or remedies that the other may have,
IDT and Distributor agree that the other will be entitled to the remedies of injunction, specific performance or any other equitable relief for breach or threatened breach of this Section 13. Notwithstanding anything to the contrary, the right of
the parties to equitable relief pursuant to this Section 13 shall survive the termination of this Agreement and continue in full force and effect. 
  
 14. Transfer of the Agreement. 
  
 (a) In entering into this
Agreement, IDT carefully considered Distributor’s financial condition, and its know-how in the promotion, sale and distribution of the Products. Therefore, the grant of rights to Distributor hereunder is unique, and such right shall not be
transferred, assigned or otherwise disposed of to any other person, firm or corporation without IDT’s consent. Any such purported transfer, assignment or disposition made without IDT’s written consent shall be null and void. The terms
“assignment” and “transfer” shall include any change in the ownership or control of Distributor. Any assignment by UTCG Holdings LLC, a Delaware limited liability company (“Newco”), of its interest in Distributor
or any change in the direct or indirect record or beneficial ownership of Newco shall, (i) if not otherwise permitted pursuant to (x) that certain Securities Purchase Agreement, by and among Carlos Gomez (“Gomez”), Newco and
Distributor, dated May 1, 1998, as amended by Amendment No. 1 to the Securities Purchase Agreement by and among Newco, IDT and Distributor, dated April 24, 2002, (y) the Operating Agreement, or (z) that certain Transfer Restriction Agreement, dated
April 24, 2002, by and among IDT Corporation, IDT Domestic- 

 Union, Gomez and Distributor, or (ii) if not previously approved in writing by IDT, constitute just cause for termination of this Agreement by
IDT, unless, in the case of any such change in the record or beneficial ownership of Newco, such change in the record or beneficial ownership is reversed back to the record or beneficial ownership of Newco in effect prior to such change, within 30
days of written notice from IDT requesting same. 
  
 (b) Notwithstanding Section 14(a) above, (i) Newco shall be
permitted to pledge its membership interests in Distributor in favor of Gomez pursuant to that certain LLC Interest Pledge and Security Agreement, dated April 24, 2002, by and between Newco and Carlos Gomez, and (ii) the Carlos Gomez Family Trust
shall be permitted to pledge its membership interests in Newco in favor of Carlos Gomez pursuant to that certain LLC Interest Pledge and Security Agreement, dated April 24, 2002, by and between the Carlos Gomez Family Trust and Carlos Gomez.

  
 (c) Neither this Agreement nor any of IDT’s rights hereunder may be transferred, assigned or otherwise
disposed of, directly or indirectly, by operation of law or otherwise, to any other person, firm, corporation or other entity without Distributor’s consent, provided, however, that notwithstanding the foregoing or any other
provision of this Agreement, IDT may transfer, assign or otherwise dispose of, directly or indirectly, by operation of law or otherwise, to any of its controlled affiliates, upon written notice to Distributor, this Agreement or any of its rights
under this Agreement. In the event IDT transfers, assigns or otherwise disposes of, directly or indirectly, by operation of law or otherwise, to any other person, firm, corporation or other entity (a “Transferee”) all or substantially all
of its business of selling pre-paid phone cards, whether operated by IDT or any of its affiliates prior to the earlier of (A) the termination of the License and (B) the termination of this Agreement, IDT agrees to cause such Transferee to grant
Distributor (x) a license to use the Intellectual Property (except for Distributor’s customer lists and customer information) on terms and conditions no less favorable than the License and (y) an exclusive right to sell the Products in the
Exclusive Territory throughout the term of this Agreement on terms and conditions no less favorable than the Agreement. For the purposes hereof, “affiliate” shall mean, with respect to any person, any other person who controls, is
controlled by or is under common control with such person. “Control” (and its derivations) shall mean the ability to direct or influence the policy or management of any person, whether by means of contract, organizational document or
otherwise. 
  
 15. Termination of Agreement. 
  
 Unless terminated by either party in accordance with the provisions of this paragraph, this Agreement shall be in effect for a period of time commencing on April 24, 2002
and terminating on April 24, 2007; provided, however, that in the event the Net Profits of Distributor (as such term is defined in the Operating Agreement) from sale of the Products for the twelve months ended December 31, 2006 are
equal to or greater than $16,000,000, either of IDT or Distributor may notify the other party, prior to January 30, 2007, that it exercises its right to extend the Agreement for a period of two years; provided, further, that if Net
Profits of Distributor from sale of the Products for the twelve months ended December 31, 2008 are equal to or greater than $21,000,000, either of IDT or Distributor may notify the other party, prior to January 30, 2009, that it exercises its right
to extend the Agreement for a further period of two 

 years. Unless otherwise agreed in writing by the parties, this Agreement will not be extended beyond the ninth-year anniversary of this
Agreement. 
  
 The parties expressly agree that, without limitation of the generality of the foregoing: 

 
 (a) IDT shall have just cause for termination upon the happening of any of the following occurrences, acts or
omissions, provided such acts or omissions were not caused by IDT or any of its affiliates (other than Distributor or any of its subsidiaries) or by any of their respective employees or representatives or by any of the officers of Distributor
designated by IDT or any of its affiliates (other than Distributor or any of its subsidiaries) pursuant to the Operating Agreement: 
  
 (i) The cessation of the usual business of Distributor; 
  
 (ii) In the event of a calling of a meeting of the creditors of Distributor, and assignment by Distributor for the benefit of creditors, the insolvency of any kind of Distributor, or in the event of any filing of a voluntary or
involuntary petition under the provisions of the United States Bankruptcy Act or amendments thereto, or any application for the appointment of a receiver for the property of Distributor, which in the case of any such involuntary filing remains
unsatisfied and undischarged at the end of thirty (30) days after the initial filing thereof; 
  
 (iii) In the event that Distributor fails to exercise commercially reasonable efforts not to jeopardize the Products’ goodwill, good name, reputation and consumer acceptance in the Territories within 30 days of receipt of
written notice from IDT; 
  
 (iv) In the event Distributor fails to discontinue a practice complained
of under Section 7 hereof within 30 days of receipt of written notice from IDT, or in the case of a practice referred to under Section 7(c) hereof immediately following receipt of written notice from IDT; 
  
 (v) In the event of any material failure or omission by Distributor to comply with any of its essential obligations under
this Agreement, which is not substantially cured within thirty (30) days after receipt of written notice from IDT specifying such failure or omission with reasonable detail; or 
  
 (vi) In the event of a purported transfer or assignment of Newco’s interest in Distributor in contravention of Section 14(a) hereof. 

 
 (b) Distributor shall have just cause for termination upon the happening of any of the following occurrences,
acts or omissions: 
  
 (i) The cessation of the usual business of IDT; 

  
 (ii) In the event of a calling of a meeting of the creditors of
IDT, and assignment by IDT for the benefit of creditors, the insolvency of any kind of IDT, or in the event of any filing of a voluntary or involuntary petition under the provisions of the United States Bankruptcy Act or amendments thereto, or any
application for the appointment of a receiver for the property of IDT, which in the case of any such involuntary filing remains unsatisfied and undischarged at the end of thirty (30) days after the initial filing thereof; or 
  
 (iii) In the event of any material failure or omission by IDT to comply with any of its essential obligations under this
Agreement, which is not substantially cured within thirty (30) days after receipt of written notice from Distributor specifying such failure or omission with reasonable detail; or 
  
 Under the circumstances described in subparagraphs (a) and (b) of this Section 15, this Agreement shall be considered terminated immediately upon receipt of written notice
of termination in certified mail from the terminating party to the other party, at the address herein designated or at such other address as may from time to time be designated in writing by the parties. 
  
 16. Post Termination. 
  
 Upon the termination of this Agreement, (i) all rights and privileges granted to Distributor hereunder shall immediately cease and terminate and Distributor shall thereupon discontinue forever the use
of any Intellectual Property and any advertising material relating to the Products, (ii) any indebtedness of one party to another pursuant to the terms of this Agreement, shall immediately become due and payable without notice and (iii) Distributor
shall promptly return to IDT, at Distributor’s expense, all samples, price lists, sales manuals, promotional materials and other selling aids relating to the Products furnished by IDT and remaining at the time in the possession of Distributor.
For the avoidance of any doubt, the termination of this Agreement shall not in any way release any party from any liability for any indebtedness to the other party or any of its affiliates, and any agreements or arrangements with respect to such
indebtedness shall continue in full force and effect, and shall be valid and binding agreements of the parties enforceable against each party in accordance with their terms and unaffected by the termination of this Agreement. 

 
 In the event this Agreement is properly terminated, neither party shall be liable to the other party, by reason of termination,
whether on account of loss by IDT, on the one hand, or Distributor, on the other, of present or prospective profits or discounts or commissions on sales or anticipated sales, or expenditures, investments or commitments made in connection therewith,
or in connection with the establishment, development or maintenance of IDT’s business, on the one hand, or Distributor’s business, on the other, or on account of any other causes or thing whatsoever. 

  
 Notwithstanding anything to the contrary, the irrevocable power of attorney of
Distributor granted to IDT pursuant to Section 12 of this Agreement shall survive the termination of this Agreement and continue in full force and effect. 
  
 The failure of a party, in any one or more instances, to insist upon performance of any of the terms, covenants or conditions of this Agreement, or to exercise any right to terminate this Agreement,
shall not be construed as a waiver or relinquishment of the same or of any future right to performance of such term, covenant or condition, or as a waiver or an estoppel to exercise any present or future right to terminate this Agreement, or of a
party’s obligation with respect to future performance of the same. All other terms, covenants and conditions hereof shall continue in full force and effect. 
  
 17. Entire Agreement. 
  
 This Agreement supersedes all prior
and concurrent discussions and agreements between the parties hereto and between Distributor and IDT’s affiliated companies with respect to all matters contained herein, and it constitutes the sole and entire Agreement between IDT and
Distributor respecting the same. Each of the parties represents and warrants that, in entering into this Agreement it is not relying on any promise, representation, warranty or agreement, oral or written, respecting any of the matters which are
subject of this Agreement, except those expressly set forth herein. 
  
 No modification of waiver of any of the terms
hereof or amendment or supplement hereto shall be valid or binding unless made in writing and executed by the parties hereto. All representations, promises, and warranties made by the parties in this Agreement are cumulative and in addition to those
imposed by law, statute, equity or otherwise, and they are to survive the execution and delivery hereof. The parties’ obligations of confidentiality and non-disclosure as set forth herein are to survive the termination of this Agreement.

  
 18. Severability of Provisions. 
  
 If any provision of this Agreement shall be held invalid, such invalidity shall not affect any other provision which can be given effect without the invalid provision, and
to this end, the provisions of this Agreement are intended to be and shall be deemed severable. 
  
 19. Governing
Law; Successors and Assigns. 
  
 This Agreement shall be governed by and be construed in accordance with the
internal laws of the State of New York, without regard to conflicts of law principles that would result in the application of the law of another jurisdiction. This Agreement shall be binding upon and inure to the benefit of the parties hereto and,
subject to the provisions of Section 14, their respective permitted successors and assigns. 
  
 20.
Arbitration. 
  
 (a) All disputes, controversies or differences which may in any way arise between the parties
from or connected with this Agreement, including the interpretation, performance or nonperformance hereof, shall be submitted to and finally determined in New
 

 York City, New York, by arbitration by three arbitrators (the “Arbitrators”) from the American Arbitration Association
(“AAA”), such Arbitrators to be chosen from an AAA-approved list of arbitrators who are residents of the United States. IDT and Distributor shall each select one Arbitrator and shall mutually agree upon the selection of the third
Arbitrator. If the parties are not able to agree upon the third Arbitrator, then the Arbitrators selected by the parties shall select the third Arbitrator. The fees and expenses of said Arbitrators shall be shared equally by the parties.

  
 (b)     The parties intend and hereby manifest that the decision of the Arbitrators shall be
according to the provisions of this Agreement, or according to the laws of the State of New York in matters, if any, not covered by this Agreement. Such decision shall be final and binding upon the parties, and judgment upon the award may be entered
in any court having jurisdiction. 
  
 (c)     Each of the parties acknowledges that, in view of
the uniqueness of arrangements contemplated by this Agreement, the parties would not have an adequate remedy at law for money damages in the event that this Agreement were not performed in accordance with its terms. Accordingly, each of the parties
agrees that the other party hereto shall be entitled to specific enforcement of the terms hereof in addition to any other remedy to which such party may be entitled at law or in equity. 
  
 (d)     For the purposes of any proceedings arising out of this Agreement, including proceedings incidental to or in aid of this Agreement to arbitrate
or proceedings pursuant to Section 21 of this Agreement, each party hereby submits to the exclusive jurisdiction of the United States District Court for the Southern District of New York and of any New York State court sitting in New York County for
purposes of all legal proceedings arising out of or relating to this Agreement and the transactions contemplated hereby and for purposes of any proceedings to seek to enforce an arbitration award. Each of the parties irrevocably waives, to the
fullest extent permitted by law, any objection which it may now or hereafter have to the laying of the venue of any such proceeding brought in such a court and any claim that any such proceeding brought in such a court has been brought in an
inconvenient forum. 
  
 (e)     If any of the parties, notwithstanding the foregoing, should
attempt either to resolve any dispute arising in connection with this Agreement in a court of law or equity or to forestall, preempt, or prevent arbitration of any such dispute by resort to the process of a court of law or equity, and such dispute
is ultimately determined to be arbitrable by such court of law or equity, the Arbitrator shall include in his award an amount for the other party equal to all of the other party’s costs including attorney’s fees, incurred in connection
with such arbitrability determination. 
  
 21.     Reservation. 
  
 Each of the parties reserves its right to commence judicial proceedings against the other party for the purpose of securing or obtaining
remedies of attachment, garnishment, seizure or any others to secure the effectiveness of an award or judgement on a claim for the payment of monies against the other party, a claim for specific enforcement of the terms of the Agreement or

 in aid or for proceedings ancillary to arbitration, or to enforce an arbitration award or to seek injunctive or other relief against the other
party for violation of Section 12 hereof. 
  
 22. Interpretation. 
  
 Each provision of this Agreement shall be interpreted in such manner as to be effective and valid under Applicable Law. The paragraph
headings of this Agreement are for convenience only and shall not be used in interpreting or construing this Agreement. 
  
 23. Waiver. 
  
 The failure at any time or times, by any party hereto to require strict
performance by the other party of any provisions of this Agreement or to exercise any of its rights hereunder shall not waive, affect or diminish any right of such party thereafter to demand strict compliance and performance therewith. 

 
 24. Notices. 
  
 Whenever notice is required to be given under the terms of this Agreement to either party, it shall be by certified mail, return receipt requested: 
  

If to IDT, addressed as follows: 
  
 IDT Netherlands, B.V. 
 Ganges Plaza, 108 Ganges Street 
 El Paraiso Industrial Park, 
 Rio Piedras,
Puerto Rico 00926 
 Attention: Douglas Mauro 
 Fax: (973) 438-1427 
  
 If to Distributor, addressed as follows:

  
 Union Telecard Alliance, LLC 
 44 Cherry Valley Avenue 
 West Hempstead, NY 11552 
 Attention: CEO 
  
 with copies to: 
  
 Union Telecard Alliance, LLC 
 44 Cherry Valley Avenue 
 West Hempstead, NY
11552 
 Attention: President 
  
 and 
  
 Harry C. Beatty, Esq. 
 Kent, Beatty & Gordon, LLP 

 425 Park Avenue 
 New York, NY 10022-3598 
  
 or to such other or future address as either party may specify to the other, all by
notice in accordance to the provisions hereof. 
  
 25. Force Majeure. 
  
 (a) Any delays in or failure of performance by any party under this Agreement shall be excused and not considered a breach hereof if such
delay or failure is caused by revolutions, insurrections, riots, sabotage, wars, acts of enemies or terrorists, national emergency, strikes or labor disputes, floods, fires, acts of God, acts of Government (including laws, governmental regulations,
orders, judicial decrees, treaties, embargoes enacted or promulgated by any country or sovereignty or any agency thereof), or by any similar cause not within the reasonable control of the party whose performance is affected thereby (each a
“force majeure event”); provided that such party shall have exercised reasonable diligence, including the commercially reasonable expenditure of funds and the making of commercially reasonable capital expenditures for the purpose of
preventing such delay or failure of performance. 
  
 (b) If circumstances of the type described in Section 25(a)
above prevail and a party is not discharging its obligations in full in all material respects hereunder, then the other parties shall be entitled by written notice to the party whose performance is prevented by such force majeure event to suspend
the operation of all or any provisions of this Agreement and make any alternative commercial arrangements necessary to protect its commercial interests, notwithstanding and despite any provision or restriction of this Agreement to the contrary. If
any such other party makes any such alternative arrangements, the suspension of the provisions of this Agreement shall continue until the force majeure event which has prevented the initial party’s substantial performance hereunder has ceased
to exist. 
  
 26. Insurance. 
  
 Distributor shall maintain reasonable commercial liability and property insurance policies with carriers and in amounts generally accepted in the industry. The aforesaid
insurance policies must insure Distributor against any loss, claim, liability or suit of bodily injury, death, personal injury or property damage arising from or in connection with the distribution of Products. The insurance policies will name IDT
as an additional insured as respects its interests under the term and conditions of this Agreement. Distributor shall provide IDT a certificate in evidence of this insurance upon execution of the Agreement and each insurance renewal thereafter for
the duration of this Agreement. The certificate shall provide that the insurance issued under this Section 26 shall not be altered or cancelled until after thirty (30) days written notice to IDT. Such insurance shall not be cancelled by Distributor
without IDT’s prior written approval. 

  
 27. Counterparts. 
  

This Agreement may be executed in separate counterparts, each of which shall be deemed an original, but all of which together shall constitute on one and the same
instrument. It shall not be necessary in making proof of this Agreement to produce or account for more than one such counterpart. 
  
 [Signatures on the following page.] 

  
 IN WITNESS WHEREOF, the appearing parties hereto have caused this Agreement to be
executed by their duly authorized representatives as of the date first above written. 
  
 
	 IDT NETHERLANDS, B.V.
 	 	 UNION TELECARD ALLIANCE, LLC
 
	 
	  	  	  	 	 By: IDT Corporation, as Member
 
	 
	 By:
 	  	 
	 	 By:
 	 	 

	  	  	 Name:
 	 	  	 	 Name:
 
	  	  	 Title:
 	 	  	 	 Title:Unit Purchase Agreement 4-10-02

 Exhibit 10.56 
  
 UNIT PURCHASE AGREEMENT 
  
 This Unit Purchase Agreement is entered into as of the
10th day of April, 2002, by and between WCI Capital Corp., a Delaware corporation (the “Seller”), Dipchip Inc., a Delaware corporation (the “Buyer”), IDT Corporation, a Delaware corporation (“IDT”),
and Winstar Holdings, LLC (formerly known as IDT Winstar Acquisition, LLC), a Delaware limited liability company (the “Company”) and consented and agreed to by IDT Advanced Communication Services, LLC, a Delaware limited liability
company (“IACS”); and 
  
 WHEREAS, IDT Winstar Acquisition, Inc., Winstar Communications,
Inc. (“Winstar”) and certain of Winstar’s subsidiaries entered into that certain Asset Purchase Agreement, dated as of December 18, 2001, pursuant to which, among other things, Seller, a subsidiary of Winstar, acquired 990,267
shares of Class B common stock, par value $.01 per share, of IDT (the “Previously Issued IDT Shares”) and 50 Common Units (the “Units”) of the Company; and 
  
 WHEREAS, the Seller desires to sell to the Buyer, and the Buyer desires to purchase from the Seller, the Units, on the terms and subject to the conditions
hereinafter set forth. 
  
 NOW, THEREFORE, in consideration of the premises and the mutual promises herein
made, and in consideration of the representations, warranties, and covenants herein contained, the Parties (as defined below), intending to be legally bound, agree as follows: 
  
 ARTICLE I 
  
 Definitions 

 
 1.1 Definitions. Capitalized terms used in this Agreement are defined in Section 1.2 or in the following locations
within the Agreement: 
  
 
	 Defined Term
 
	  	 Paragraph
 

	 Buyer
 	  	 Preamble
 
	 Buyer Related Agreements
 	  	 4.2
 
	 Closing Date
 	  	 2.6
 
	 Company
 	  	 Preamble
 
	 Court
 	  	 2.7
 
	 Holder Related Agreements
 	  	 3.2
 
	 IACS
 	  	 Preamble
 
	 IDT
 	  	 Preamble
 
	 IDT Related Agreements
 	  	 5.2
 
	 IDT SEC Documents
 	  	 5.8
 
	 IDT SEC Financial Statements
 	  	 5.8
 
	 IDT Shares
 	  	 2.3
 

 

  
 
	 Defined Term
 
	  	 Paragraph
 

	 Previously Issued IDT Shares
 	  	 Recitals
 
	 Registration Period
 	  	 2.4(c)
 
	 SEC
 	  	 2.4(a)
 
	 Securities Act
 	  	 2.4(b)
 
	 Seller
 	  	 Preamble
 
	 Units
 	  	 Recitals
 
	 Winstar
 	  	 Recitals
 

 
  
 1.2 General Defined Terms. As used herein, the following
terms shall each have the meaning indicated: 
  
 “Agreement”,
“hereto”, “hereunder” and similar expressions refer to this Agreement, as amended from time to time. 
  
 “Business Day” means any day other than a Saturday, Sunday or statutory holiday in the State of New York. 
  
 “Closing” means the consummation of the transactions contemplated by this Agreement. 
  

“Contracts” means and includes all contracts, licenses, leases, indentures, deeds, instruments, joint venture and other agreements,
commitments and all other legally binding arrangements, whether oral or written, and all rights thereunder. 
  
 “Encumbrances” means mortgages, charges, pledges, security interests, liens, encumbrances, actions, claims, demands, and equities of any nature whatsoever and howsoever arising and any rights or privileges capable of
becoming any of the foregoing. 
  
 “Governmental Authority” means any agency,
department, court or any other administrative, legislative or regulatory authority of any foreign, federal, state or local governmental body. 
  
 “Holders” means the Seller and Persons to whom the Seller transfers Registrable Securities in accordance with Section 2.4(l) hereof, for so long as the Seller or such Persons hold
Registrable Securities. 
  
 “LLC Agreement” means the limited liability company
agreement of the Company, dated as of December 19, 200l. 
  
 “Party” means any of
the Buyer, any Holder or IDT, and “Parties” means collectively the Buyer, the Holders and IDT. 

 
 2 

  
 “Person” means an individual, a partnership, a
corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, an unincorporated organization, or a Governmental Authority. 
  
 “Registrable Securities” means the Previously Issued IDT Shares and the IDT Shares. 
  

ARTICLE II 
  
 Purchase and Sale

  
 2.1 Purchase and Sale of Assets. On and subject to the terms and conditions of this Agreement, at the
Closing the Buyer shall purchase from the Seller, and the Seller shall sell, transfer, convey, and deliver to the Buyer, free and clear of all Encumbrances, the Units for the consideration specified in Section 2.3 below. 
  
 2.2 Membership in the Company. On and subject to the terms and conditions of this Agreement, as of the Closing, the Buyer shall
become the holder of the Units and a Member of the Company in accordance with the terms of, entitled to the benefits of, and subject to the obligations arising under, the LLC Agreement with respect to the Units, and the Company hereby agrees to and
consents to the sale and transfer of the Units and the admission of the Buyer as a Member of the Company. With the exception of the obligations as a Member under the LLC Agreement, the Buyer is not assuming any liabilities or obligations of the
Seller whatsoever. 
  
 2.3 Purchase Price. The purchase price for the Units shall be 792,079 shares of Class B
common stock of IDT (the “IDT Shares”), which shall be delivered by IDT to the Seller at the Closing, free and clear of all Encumbrances, as provided in Section 2.6 hereof. 
  
 2.4 Registration. 
  
 (a) IDT
shall prepare and file with the Securities and Exchange Commission (“SEC”) a registration statement covering the resale of the Registrable Securities and shall cause such registration statement to become effective on or before March
3 1,2003, and remain effective as provided in this Section 2.4. 
  
 (b) Any registration under Section 2.4(a) shall
be on such appropriate registration form of the SEC as shall permit the disposition of the Registrable Securities covered by such registration in accordance with the intended method or methods of disposition specified by Holders holding at least
two-thirds (2/3) of the Registrable Securities; provided, however, that IDT may, if permitted by law, effect the registration required under Section 2.4(a) by the filing of a registration statement on Form S-3 under the Securities Act
of 1933, as amended (the “Securities Act”); and provided, further, that no Holder shall be entitled to have the Registrable Securities held by it covered by such registration statement unless such Holder has provided IDT with the
information required 

 
 3 

 under Section 2.4(j) hereof at least ten (10) business days before such Holder’s intended disposition of Registrable Securities and has
agreed in writing to be bound by all of the provisions of this Agreement applicable to such Holder in accordance with Section 2.4(l) hereof. If Holders holding at least two-thirds (2/3) of the Registrable Securities notify IDT in writing that, in
their reasonable judgment, the use of the more detailed form specified in such notice is of material importance to the success of such offering, IDT shall in good faith consider such request to effect such registration on the form so specified by
such Holders, but shall be under no obligation to effect such registration on such form, and all expenses incurred in connection with effecting such registration on the form so specified by the Holders requesting the use of such form shall be borne
by such Holders, jointly and severally. 
  
 (c) Subject to Section 2.4(e) below, a registration required
pursuant to Section 2.4 shall not be deemed to have been effected (i) unless a registration statement with respect thereto has been declared effective by the SEC and remains effective in compliance with the provisions of the Securities Act until
such time as all of the Registrable Securities covered thereby have been disposed of in accordance with such registration statement (the “Registration Period”) or (ii) if, after the registration statement with respect thereto has
become effective, such registration is interfered with by any stop order, injunction or other order or requirement of the SEC or other governmental or regulatory agency or court for any reason other than a violation of applicable law by the Seller
and has not thereafter become effective. IDT shall furnish to each Holder, promptly after such registration statement is filed with the SEC, such numbers of copies of the registration statement and any amendment or post-effective amendment thereto
(in each case including all exhibits and the prospectus) and any other prospectus filed under Rule 424 under the Securities Act as such Holder may reasonably request. 
  
 (d) Subject to Section 2.4(e) below, IDT shall prepare and file such amendments (including post-effective amendments) and supplements to any registration statement filed
under this Section 2.4 and the prospectus used in connection therewith as may be necessary to comply with the provisions of the Securities Act with respect to the sale or other disposition of all securities covered by such registration statement, or
to name a Holder as a selling stockholder, until the earlier of such time as all of such securities have been disposed of in a public offering or the expiration of the Registration Period. 
  
 (e) Notwithstanding anything to the contrary herein, any registration effected pursuant to this Section 2.4 shall not be required to be effective on and after the first
date on which the Holders can publicly sell all of the Registrable Securities pursuant to Rule 144(k) under the Securities Act. In such event, IDT covenants that it will, so long as any Holder holds Registrable Securities, file in a timely manner
and make and keep available all reports and other documents required by the Securities Exchange Act of 1934, as amended. 
  
 (f) IDT shall promptly notify each Holder in the manner prescribed in Section 9.7 of the happening of any event, of which IDT has knowledge, as a result of 

 
 4 

 which the prospectus included in a registration statement effected pursuant to this Section 2.4, as then in effect, includes an untrue statement
of a material fact or omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading, and shall promptly prepare a supplement or amendment to such registration statement to correct such
untrue statement or omission, and deliver such number of copies of such supplement or amendment to each Holder as such Holder may reasonably require. 
  
 (g) IDT shall use commercially reasonable efforts to register or qualify the Registrable Securities under such state securities or “blue sky” laws of such jurisdictions as the Holders
reasonably request and do any and all acts and things that may be reasonably necessary or advisable to enable the Holders to consummate the disposition of the Registrable Securities in such jurisdiction; provided, however, that IDT
shall not be obligated to qualify as a foreign corporation to do business under the laws of any jurisdiction in which it is not then qualified or to file any consent to general service of process in any jurisdiction. IDT shall cause the listing and
continuation of listing of the Registrable Securities on the New York Stock Exchange or, if the IDT Class B common stock is not listed on the New York State Exchange, such other principal exchange or automated quotation system on which the IDT Class
B common stock trades. 
  
 (h) IDT shall enter into customary agreements (including an underwriting agreement in
customary form) and take such other actions as are reasonably required in order to facilitate the disposition of such Registrable Securities. 
  
 (i) IDT shall otherwise use its best efforts to comply with all applicable rules and regulations of the SEC, and make available to each Holder, as soon as reasonably practicable, but not later than 18
months after the effective date of the registration statement, an earnings statement covering the period of at least 12 months beginning with the first full month after the effective date of such registration statement, which earnings statement
shall satisfy the provisions of Section 1l(a) of the Securities Act. 
  
 (j) Each Holder shall furnish IDT, from time
to time, such information regarding itself, the Registrable Securities held by it, the intended method of disposition of the Registrable Securities held by it and all other information as is reasonably required by IDT to effect the registration of
the resale of the Registrable Securities held by such Holder, all of which information shall be true, accurate, complete and not materially misleading. 
  
 (k) Subject to Section 2.4(b), all expenses incurred in connection with registrations, filings, qualifications and other obligations of IDT pursuant to this Section 2.4 shall be borne by IDT.

  
 (l) The Seller shall have the right to transfer, subject to compliance with state and federal securities laws,
all or a portion of the Registrable Securities to any Person receiving a distribution in connection with the bankruptcy case of the Seller and 

 
 5 

 its affiliates, provided that such transferee agrees in writing to be bound by all of the provisions of this Agreement applicable to such Holder
and provides the other Parties with its contact information for notices pursuant to Section 9.7 hereof and the information required to be set forth on Schedule 3.1. 
  
 2.5 Indemnification and Contribution. 
  
 (a) In the event of any registration of any Registrable Securities under the Securities Act pursuant to this Agreement, IDT shall indemnify and hold harmless each Holder, such Holder’s respective directors and officers, and each
other person (including each underwriter) who participated in the offering of such Registrable Securities and each other person, if any, who controls such Holder or such participating person within the meaning of the Securities Act, against any
losses, claims, damages or liabilities, joint or several, to which such Holder or any such director or officer or participating person or controlling person may become subject under the Securities Act or any other statute or at common law, insofar
as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any alleged untrue statement of any material fact contained, on the effective date thereof, in any registration statement under which
such securities were registered under the Securities Act, any preliminary prospectus or final prospectus contained therein, or any amendment or supplement thereto, or (ii) any alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading, and shall reimburse such Holder or such director, officer or participating person or controlling person for any legal or any other expenses reasonably incurred by such Holder or
such director, officer or participating person or controlling person in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however, that IDT shall not be liable in any such case to
the extent that any such loss, claim, damage or liability arises out of or is based upon any actual or alleged untrue statement or actual or alleged omission made in such registration statement, preliminary prospectus, prospectus or amendment or
supplement in reliance upon and in conformity with written information furnished to IDT by a Holder specifically for use therein or so furnished for such purposes by any underwriter. Such indemnity shall remain in full force and effect regardless of
any investigation made by or on behalf of the Holders or such director, officer or participating person or controlling person, and shall survive the transfer of such securities by the Holders. 
  

(b) Each Holder agrees, severally and not jointly, to indemnify and hold harmless IDT and each other Holder, their respective directors and officers and each other
person, if any, who controls IDT or such other Holder within the meaning of the Securities Act against any losses, claims, damages or liabilities, joint or several, to which IDT or such other Holder or any such director or officer or any such person
may become subject under the Securities Act or any other statute or at common law, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon information in writing provided to IDT by such
Holder specifically for use in, and contained in, on the effective date thereof, any registration statement under which securities were registered under the Securities Act pursuant to this Agreement, any 

 
 6 

 preliminary prospectus or final prospectus contained therein, or any amendment or supplement thereto. Notwithstanding the provisions of this
paragraph (b) or paragraph (c) below, no Holder shall be required to indemnify any person pursuant to this Section 2.5 or to contribute pursuant to paragraph (c) below in an amount in excess of the amount of the aggregate net proceeds received by
such Holder in connection with any such registration under the Securities Act. 
  
 (c) If the indemnification
provided for in this Section 2.5 from the indemnifying party is unavailable to an indemnified party hereunder in respect of any losses, claims, damages, liabilities or expenses referred to therein, then the indemnifying party, in lieu of
indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of
the indemnifying party and indemnified parties in connection with the actions which resulted in such losses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations. The relative fault of such indemnifying
party and indemnified parties shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has
been made by, or relates to information supplied by, such indemnifying party or indemnified parties, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or
payable by a party as a result of the losses, claims, damages, liabilities and expenses referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with any investigation or
proceeding. 
  
 The Parties agree that it would not be just and equitable if contribution pursuant to this Section
2.5(c) were determined by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred to in the immediately preceding paragraph. No Person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. 
  
 2.6 The Closing. The Closing shall take place at a location mutually acceptable to the Buyer and the Seller on the first Business Day following the date the
conditions to Closing set forth in Article VII hereof are satisfied, or such other date as shall be mutually acceptable to the Buyer and the Seller (the “Closing Date”). 
  
 2.7 Deliveries at the Closing. At the Closing: 
  
 (a) the Seller will execute, acknowledge and deliver (if appropriate), or cause to be executed, acknowledged and delivered (if appropriate), as the case may be, to the Buyer: 
  
 (i) any and all certificates for the Units duly endorsed by the Seller in blank; 

 
 7 

  
 (ii) such other instruments of sale, transfer, conveyance, and
assignment as the Buyer and its counsel reasonably may request; and 
  
 (iii) a certified copy of an
order of the United States Bankruptcy Court for the District of Delaware (the “Court”) approving the transactions contemplated hereby. 
  
 (b) the Buyer will execute, acknowledge and deliver (if appropriate), or cause to be executed, acknowledged and delivered (if appropriate), as the case may be, to the Seller: 

 
 (i) a joinder agreement in the form of Exhibit A annexed hereto; and 
  
 (ii) such other documents as may be reasonably required by the Seller and its counsel in connection with the transactions
contemplated hereby. 
  
 (c) IDT will execute, acknowledge and deliver (if appropriate), or cause to be executed,
acknowledged and delivered (if appropriate), as the case may be, to the Seller: 
  
 (i) stock
certificates representing the IDT Shares containing a restrictive legend; and 
  
 (ii) such other
documents as may be reasonably required by the Seller and its counsel in connection with the transactions contemplated hereby. 
  
 ARTICLE III 
  
 Representations and Warranties of the Seller and Other Holders 

 
 The Seller hereby represents and warrants to the Buyer, IDT and each other Holder that the statements contained in this ARTICLE
III are true, correct and complete as of the date hereof, and each Holder other than the Seller represents and warrants to the Buyer, IDT and each other Holder that the statements contained in this ARTICLE III, except for Sections 3.6 and 3.7, are
true, correct and complete as of the date such Holder becomes a Party hereto. 
  
 3.1 Organization. Such
Holder is a corporation or other entity duly organized, validly existing and in good standing under the laws of the state of its organization, as specified on Schedule 3.1 attached hereto (as the same may be amended upon a Holder becoming a Party
hereto) has all requisite corporate power and authority to own, lease and operate its properties and to carry on its business as now being conducted. 
  
 3.2 Authorization of Transaction. Subject to the approval of the Court, such Holder has full power and authority to execute and deliver this Agreement and each other agreement or instrument to
be delivered by it hereunder (the “Holder Related
 

 
 8 

 Agreements”), and to perform its obligations hereunder and thereunder and to consummate the transactions contemplated hereby and
thereby. The execution, delivery and performance of this Agreement and the Holder Related Agreements and the consummation of the transactions thereby have been duly authorized by all requisite corporate action. This Agreement and each Holder Related
Agreement has been duly executed and delivered by a duly authorized officer on behalf of such Holder and, assuming due and valid authorization, execution and delivery of this Agreement and each Holder Related Agreement by the other parties thereto,
constitute the valid and legally binding obligations of such Holder, enforceable against such Holder in accordance with their respective terms and conditions, except as such except as enforceability may be limited by bankruptcy, insolvency,
reorganization or other laws affecting creditors’ rights and remedies generally and by general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law). 
  
 3.3 Noncontravention. Neither the execution and the delivery of this Agreement or the Holder Related Agreements, nor the
consummation of the transactions contemplated hereby and thereby, will: 
  
 (a) violate any (i)
statute, law, regulation, rule, injunction, judgment, order, decree, ruling, charge, or other restriction of any Governmental Authority to which such Holder is subject or (ii) provision of the certificate of incorporation or bylaws of such Holder;
or 
  
 (b) conflict with, result in a breach of, constitute a default under, result in the
acceleration of, create in any party the right to accelerate, terminate, modify, or cancel, or require any notice or consent under, any Contract to which such Holder is a party or by which it is bound or to which the Units are or may be bound or
affected (or result in the imposition of any Encumbrance upon any of its assets, including the Units). 
  
 3.4
Governmental Consents. Other than the approval of the Court, such Holder is not required to give any notice to, make any filing with, or obtain any authorization, consent, or approval of any Governmental Authority in order for the Parties to
execute, deliver or consummate the transactions contemplated by this Agreement or the Holder Related Agreements. 
  
 3.5 Brokers’ Fees. Such Holder has no liability or obligation to pay any fees or commissions whatsoever to any broker, finder or agent with respect to the transactions contemplated by this Agreement for which the Buyer
could become liable or obligated. 
  
 3.6 Title to Units. The Seller has, and at the Closing will have, good,
valid and marketable title to the Units, free and clear of all Encumbrances. 
  
 3.7 IDT Shares. The Seller is
acquiring the IDT Shares for investment purposes for the Seller’s account only and not for the account of any other person or entity. The Seller is not acquiring the IDT Shares with a view to resell, distribute, subdivide or otherwise transfer
the IDT Shares to any other person or entity, other than in 

 
 9 

 accordance with (a) the Securities Act and applicable state securities laws and (b) any order of the Court. 
  
 ARTICLE IV 
  
 Representations and Warranties of the Buyer 
  
 The Buyer hereby represents and warrants to
each Holder that the statements contained in this ARTICLE IV are correct and complete as of the date hereof. 
  
 4.1
Organization of the Buyer. The Buyer is a corporation, duly organized, validly existing and in good standing under the laws of the State of Delaware and has all requisite corporate power and authority to own, lease and operate its properties
and to carry on its business as now being conducted. 
  
 4.2 Authorization of Transaction. The Buyer has full
power and authority to execute and deliver this Agreement and each other agreement or instrument to be delivered by it hereunder (the “Buyer Related Agreements”), and to perform its obligations hereunder and thereunder and to
consummate the transactions contemplated hereby and thereby. The execution, delivery and performance of this Agreement and the Buyer Related Agreements and the consummation of the transactions thereby have been duly authorized by all requisite
corporate action. This Agreement and each Buyer Related Agreement has been duly executed and delivered by a duly authorized officer on behalf of the Buyer and, assuming due and valid authorization, execution and delivery of this Agreement and each
Buyer Related Agreement by the other parties thereto, constitute the valid and legally binding obligations of the Buyer, enforceable against the Buyer in accordance with their respective terms and conditions, except as such except as enforceability
may be limited by bankruptcy, insolvency, reorganization or other laws affecting creditors’ rights and remedies generally and by general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or
at law). 
  
 4.3 Noncontravention. Neither the execution and the delivery of this Agreement or the Buyer
Related Agreements nor the consummation of the transactions contemplated hereby will: 
  
 (a) violate
any (i) law, statute, regulation, rule, injunction, judgment, order, decree, ruling, charge, or other restriction of any Governmental Authority to which the Buyer is subject or (ii) provision of the certificate of incorporation or bylaws of the
Buyer; or 
  
 (b) conflict with, result in a breach of, constitute a default under, result in the
acceleration of, create in any party the right to accelerate, terminate, modify, or cancel, or require any notice or consent under any Contract to which the Buyer is a party or by which it is bound or to which any of its assets is subject.

 
 10 

  
 4.4 Governmental Consents. The Buyer is not required to give any notice
to, make any filing with, or obtain any authorization, consent, or approval of any Governmental Authority in order for the Parties to execute, deliver or consummate the transactions contemplated by this Agreement or the Buyer Related Agreements.

  
 4.5 Brokers’ Fees. The Buyer has no liability or obligation to pay any fees or commissions whatsoever
to any broker, finder or agent with respect to the transactions contemplated by this Agreement for which any Holder could become liable or obligated. 
  
 4.6 Units. The Buyer is acquiring the Units for investment purposes only for its own account and not for the account of any other person or entity. The Buyer is not acquiring the Units with a
view to resell, distribute, subdivide or otherwise transfer the Units to any other person or entity other than in accordance with the Securities Act and applicable state securities laws. 
  
 ARTICLE V 
  
 Representations and Warranties
of IDT 
  
 IDT hereby represents and warrants to each Holder that the statements contained in this ARTICLE V are
correct and complete as of the date hereof. 
  
 5.1 Organization of IDT. IDT is a corporation, duly organized,
validly existing and in good standing under the laws of the State of Delaware and has all requisite corporate power and authority to own, lease and operate its properties and to carry on its business as now being conducted and as proposed to be
conducted. 
  
 5.2 Authorization of Transaction. IDT has full power and authority to execute and deliver this
Agreement and each other agreement or instrument to be delivered by it hereunder (the “IDT Related Agreements”), and to perform its obligations hereunder and thereunder and to consummate the transactions contemplated hereby and
thereby. The execution, delivery and performance of this Agreement and the IDT Related Agreements and the consummation of the transactions thereby have been duly authorized by all requisite corporate action. This Agreement and each IDT Related
Agreement has been duly executed and delivered by a duly authorized officer on behalf of IDT and, assuming due and valid authorization, execution and delivery of this Agreement and each IDT Related Agreement by the other parties thereto, constitute
the valid and legally binding obligations of IDT, enforceable against IDT in accordance with their respective terms and conditions, except as such except as enforceability may be limited by bankruptcy, insolvency, reorganization or other laws
affecting creditors’ rights and remedies generally and by general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law). 
  
 5.3 Noncontravention. IDT will not hereafter enter into any agreement with respect to its securities which is inconsistent with the rights granted to the Holders in
this
 

 
 11 

 Agreement. Neither the execution and the delivery of this Agreement or the IDT Related Agreements nor the consummation of the transactions
contemplated hereby will: 
  
 (a) violate any (i) law, statute, regulation, rule, injunction,
judgment, order, decree, ruling, charge, or other restriction of any Governmental Authority to which IDT is subject or (ii) provision of the certificate of incorporation or bylaws of IDT; or 
  
 (b) conflict with, result in a breach of, constitute a default under, result in the acceleration of, create in any party the right to accelerate, terminate,
modify, or cancel, or require any notice or consent under any Contract to which IDT is a party or by which it is bound or to which any of its assets is subject. 
  
 5.4 Governmental Consents. IDT is not required to give any notice to, make any filing with, or obtain any authorization, consent, or approval of any Governmental Authority in order for the
Parties to execute, deliver or consummate the transactions contemplated by this Agreement or the IDT Related Agreements. 
  
 5.5 Brokers’ Fees. IDT has no liability or obligation to pay any fees or commissions whatsoever to any broker, finder or agent with respect to the transactions contemplated by this Agreement or the IDT Related Agreements
for which any Holder could become liable or obligated. 
  
 5.6 IDT Capitalization. As of March 15, 2002, the
authorized share capital of IDT consisted of: (a) 10,000,000 shares of preferred stock, $.01 par value, of which no shares were issued and outstanding, (b) 100,000,000 shares of common stock, $.01 par value, of which 24,508,079 shares were issued
and outstanding, (c) 35,000,000 shares of Class A common stock, $.01 par value, of which 9,816,988 shares were issued and outstanding and (d) 100,000,000 shares of Class B common stock, $.01 par value, of which 51,030,050 shares were issued and
outstanding. 
  
 5.7 Valid Issuance of IDT Shares. The IDT Shares being issued to the Seller hereunder are
duly authorized and, when issued, sold and delivered in accordance with the terms hereof for the consideration expressed herein, will be validly issued, free and clear of all Encumbrances, fully paid and non-assessable, and, based in part upon the
representations of the Seller in this Agreement, will be issued in compliance with all applicable preemptive rights and U.S. federal and state securities laws. 
  
 5.8 SEC Documents: Financial Statements. 
  
 (a) Other than
the financial statements required to be filed in connection with the current report on Form 8-K filed by IDT on January 3, 2002, IDT has filed with the SEC all reports, forms, registration statements, definitive proxy statements and documents
required to be filed with the SEC since July 31, 1999, and has furnished to the Seller or filed with the SEC via EDGAR true and complete copies, in the form filed with the SEC, of (i) its Annual Report on Form 10-K for the fiscal year ended July 31,
1999, its Annual Report on Form 10-K for the fiscal year ended July 31, 2000 and its
 

 
 12 

 Annual Report on Form 10-K for the fiscal year ended July 31, 2001, (ii) the proxy statement relating to its 2000 annual meeting of shareholders
and the proxy statement relating to its 2001 annual meeting of stockholders, (iii) its annual report to shareholders for the fiscal year ended July 31, 1999, its annual report to shareholders for the fiscal year ended July 31, 2000 and its annual
report to shareholders for the fiscal year ended July 31, 2001 and (iv) all Quarterly Reports on Form 10-Q filed since July 31, 1999, and IDT will make available to each Holder (including, without limitation, by filing with the SEC via EDGAR) true,
correct and complete copies of any additional documents filed with the SEC by IDT after the date of this Agreement, including, without limitation, any amendment to any such documents (collectively, the “IDT SEC Documents”). As of
their respective filing dates, the IDT SEC Documents (including all financial statements, exhibits and schedules to and documents incorporated by reference in the IDT SEC Documents) (i) complied or, with respect to those not yet filed, will comply
in all material respects with the requirements of the Exchange Act and (ii) did not, or, with respect to those not yet filed, will not contain any untrue statement of a material fact or omit to state a material fact required to be stated or
necessary to make the statements made in the IDT SEC Documents, in light of the circumstances in which they were made, not misleading, except to the extent corrected by a subsequently filed IDT SEC Document. 
  
 (b) The financial statements of IDT, including the notes to the financial statements, included or incorporated by reference in the IDT SEC
Documents (the “IDT Financial Statements”) were complete and correct in all material respects as of their respective filing dates, complied as to form in all material respects with applicable accounting requirements and with the
applicable published rules and regulations of the SEC as of their respective dates, and have been prepared in accordance with generally accepted accounting procedures applied on a basis consistent throughout the periods indicated (except as may be
indicated in the related notes or, in the case of unaudited statements, included in Quarterly Reports on Forms 10-Q). The IDT Financial Statements fairly present the consolidated financial condition and operating results of IDT and its subsidiaries
at the dates and during the periods indicated in the IDT Financial Statements (subject, in the case of unaudited statements, to normal, recurring year-end adjustments). There has been no change in IDT accounting policies other than as required by
the FASB guidelines. 
  
 5.9 Absence of Undisclosed Liabilities. IDT has no material obligations or
liabilities of any nature (matured or unmatured, fixed or contingent) other than (a) those recorded or otherwise disclosed in the IDT Financial Statements, (b) those incurred in the ordinary course of business and not required to be set forth in the
IDT Financial Statements in material compliance with generally accepted accounting procedures, (c) those incurred in the ordinary course of business since the date of the most recent IDT Financial Statements filed as part of the IDT SEC Documents
and consistent with past practice and (d) those incurred in connection with the execution of this Agreement or incurred in connection with the transactions contemplated by this Agreement. 

 
 13 

  
 5.10 Absence of Litigation. There is no private or governmental action,
suit, proceeding, claim, arbitration or investigation pending before or, to the knowledge of the executive officers of IDT, threatened by, any Governmental Authority against IDT or any of its subsidiaries or any of their respective properties or any
of their respective officers or directors (in their capacities as such) that, if determined in a manner adverse to IDT or its subsidiaries would, individually or in the aggregate, have a material adverse effect on IDT. There is no judgment, decree
or order against IDT or any of its subsidiaries or, to the knowledge of the executive officers of IDT, any of their respective directors or officers (in their capacities as such) that seeks to prevent, enjoin, or materially alter or delay any of the
transactions contemplated by this Agreement, or has, individually or in the aggregate, a material adverse effect on IDT. 
  
 ARTICLE VI 
  
 Covenants of the Parties 
  

6.1 Closing. Each Party will take all reasonable action necessary or advisable to cause the Closing to occur as promptly as practicable, including without
limitation, making any required filing with the Court to obtain its approval of the transaction contemplated hereby. 
  
 6.2 Actions Pending Closing. Prior to the Closing or the termination of this Agreement, no Party shall take any action that would be reasonably likely to delay the Closing or make the Closing less likely to occur, including,
without limitation, any transfer of the Units or placing, or permitting to exist, any Encumbrance on the Units or IDT Shares. The Company will not consent to or record on its records any such transfer of the Units in contravention of this Section
6.2. 
  
 6.3 Restricted Stock. The Seller acknowledges and agrees that, until their registration, the IDT
Shares will constitute restricted securities and will not transfer such shares without registration, or exemption therefrom, under the Securities Act and any applicable state or foreign securities laws. 
  
 6.4 Further Assurances. Subject to the terms and conditions of this Agreement, each Party will use all reasonable efforts to take,
or cause to be taken, all actions and to do, or cause to be done, all things necessary or desirable under applicable laws to consummate or implement expeditiously the intent of the Parties hereto, namely, without limiting the generality of the
foregoing, to transfer the Units to the Buyer and to transfer the IDT Shares to the Seller, in each case, free and clear of any Encumbrances. 
  
 ARTICLE VII 
  
 Conditions to Closing 
  
 7.1 Conditions to the Obligation of the Buyer. The obligations of the Buyer hereunder at the Closing shall be subject to and
conditioned on the following: 

 
 14 

  
 (a) The representations and warranties of the Seller contained
herein shall be true and accurate in all material respects. 
  
 (b) The Seller shall have performed
and complied, in all material respects, with each and every covenant, agreement and condition required by this Agreement to performed or complied with by it prior to or on the Closing Date (including the execution and delivery of the items set forth
in Section 2.7(a) hereof). 
  
 (c) No order of any court or administrative agency shall be in
effect which restrains or prohibits the transactions contemplated hereby, and no suit, action, investigation, inquiry or proceeding by any Governmental Authority, or legal or administrative proceeding by any person or entity, shall have been
instituted or threatened which questions the validity or legality of the transactions contemplated hereby. 
  
 (d) The Court shall have issued a final and nonappealable order approving the transaction contemplated hereunder. 
  
 7.2 Conditions to the Obligation of the Seller. The obligations of the Seller hereunder at the Closing shall be subject to and conditioned on the following: 
  
 (a) The representations and warranties of the Buyer and IDT, respectively, contained herein shall be true and accurate in all material respects.

  
 (b) Each of the Buyer and IDT, respectively, shall have performed and complied, in all material
respects, with each and every covenant, agreement and condition required by this Agreement to performed or complied with by it prior to or on the Closing Date (including the execution and delivery of the items set forth in Section 2.7(b) and (c)
hereof). 
  
 (c) No order of any court or administrative agency shall be in effect which
restrains or prohibits the transactions contemplated hereby, and no suit, action, investigation, inquiry or proceeding by any Governmental Authority, or legal or administrative proceeding by any person or entity, shall have been instituted or
threatened which questions the validity or legality of the transactions contemplated hereby. 
  
 (d)
The Court shall have issued a final and nonappealable order approving the transaction contemplated hereunder . 
  
 ARTICLE
VIII 
  
 Termination 
  
 8.1 Right of Termination. This Agreement may be terminated at any time prior to the Closing as follows 

 
 15 

  
 (a) by mutual written consent of the Seller and the Buyer; 

 
 (b) by either the Seller or the Buyer by notice of termination given to the other if the Closing shall not have occurred on or
before April 30, 2002 and if the failure to consummate the Closing on or before such date did not result from the failure by the Party seeking to terminate this Agreement to fulfill any undertaking or commitment provided for herein that is required
to be fulfilled prior to or at the Closing; or 
  
 (c) by the Seller or the Buyer if there shall be in effect a final
nonappealable order of a Governmental Authority of competent jurisdiction restraining, enjoining or otherwise prohibiting the consummation of the transactions contemplated hereby; it being agreed that the Parties shall promptly appeal any adverse
determination which is not nonappealable (and pursue such appeal with reasonable diligence). 
  
 8.2 Effect of
Termination. In the event of termination of this Agreement as permitted by Section 8.1, all obligations and liabilities of the Parties shall terminate as of the date on which notice of termination is given pursuant to Section 8.1;
provided, however, that the obligations of the Parties set forth in Sections 2.4(k) and 9.11 hereof shall survive any such termination and shall be enforceable hereunder; provided, further, however, that nothing in
this Section 8.2 shall relieve the Buyer, IDT or the Seller of any liability for a breach of this Agreement. 
  
 ARTICLE
IX 
  
 Miscellaneous 
  
 9.1 No Third-Party Beneficiaries. Except as otherwise set forth in Section 9.4 hereof, this Agreement shall not confer any rights or remedies upon any Person other than the Parties and their
respective successors and permitted assigns. 
  
 9.2 Entire Agreement. This Agreement (including the documents
referred to herein) constitutes the entire agreement between the Parties and supersedes any prior understandings, agreements, or representations by or between the Parties, written or oral, to the extent they are related in any way to the subject
matter hereof. 
  
 9.3 Survival. The representations and warranties of the Seller, the Buyer and IDT contained
in Article III, Article IV and Article V, respectively, shall survive until such date that is one year from the date of the Closing; provided, that the representations as to title and valid issuance contained in Sections 3.6 and Section 5.7,
respectively, and the representations as to broker’s fees contained in each of Section 3.5, Section 4.5 and Section 5.5 shall survive indefinitely. 
  
 9.4 Succession and Assignment. This Agreement shall be binding upon and inure to the benefit of the Parties named herein and their respective successors and permitted assigns, including any
Holder. No Party may assign either this Agreement or 

 
 16 

 any of its rights, interests, or obligations hereunder without the prior written approval of the other Party; provided, that the Buyer
may assign its rights and obligations hereunder to an affiliate without the consent of the Holders; and provided, further, that the Seller may transfer all or a portion of the Registrable Securities to a Holder that is the permitted
transferee of Registrable Securities and has agreed in writing to be bound by this Agreement in accordance with Section 2.4(l), and such Holder shall be entitled to all of the rights and be bound by all of the obligations of Holders hereunder.

  
 9.5 Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be
deemed an original but all of which together will constitute one and the same instrument. 
  
 9.6 Headings.
The section headings contained in this Agreement are inserted for convenience only and shall not affect in any way the meaning or interpretation of this Agreement. 
  
 9.7 Notices. Any notice, request, demand, claim, or other communication hereunder shall be deemed duly given if it is sent by hand delivery, registered or certified
mail, return receipt requested postage prepaid, by overnight express service, or by facsimile, and addressed to the intended recipient as set forth below: 
  
 
	 If to the Seller:
 	  	 To the address set forth on the signature page hereof
 
	 
	 With a copy to:
 	  	 Weil, Gotshal & Manges LLP
 
	  	  	 767 Fifth Avenue
 
	  	  	 New York, NY 10153
 
	  	  	 Attn: Stephen Karotkin, Esq.
 
	  	  	 Fax: (212) 310-8007
 
	 
	 If to the Buyer:
 	  	 Dipchip Inc.
 
	  	  	 c/o IDT Corporation
 
	  	  	 520 Broad Street
 
	  	  	 Newark, New Jersey
 
	  	  	 Attn: Motti Lichtenstein
 
	  	  	 Fax: (973) 438-1503
 
	 
	 With a copy to:
 	  	 McDermott, Will & Emery
 
	  	  	 50 Rockefeller Plaza
 
	  	  	 New York, New York 10020-1605
 
	  	  	 Attn:    Mark S. Selinger, Esq.
 
	  	  	             David C. Albalah, Esq.
 
	  	  	 Fax: (212) 547-5444
 

 

 
 17 

  
 
	 If to IDT:
 	  	 IDT Corporation
 
	  	  	 520 Broad Street
 
	  	  	 Newark, New Jersey
 
	  	  	 Attn: Motti Lichtenstein
 
	  	  	 Fax: (973) 438-1503
 
	 
	 With a copy to:
 	  	 McDermott, Will & Emery
 
	  	  	 50 Rockefeller Plaza
 
	  	  	 New York, New York 10020-1605
 
	  	  	 Attn:    Mark S. Selinger, Esq.
 
	  	  	             David C. Albalah, Esq.
 
	  	  	 Fax: (212) 547-5444
 

 
  
 or to such other address or addresses as any Party may designate to the other by like
notice as hereinabove set forth. Any notice given hereunder shall be deemed given and received on the date of hand delivery or transmission by facsimile, or three days after deposit with the United States Postal Service, or one day after delivery to
an overnight express service for next day delivery, as the case may be. 
  
 9.8 GOVERNING LAW. THIS
AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE DOMESTIC LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO ANY CHOICE OR CONFLICT OF LAW PROVISION OR RULE (WHETHER OF THE STATE OF NEW YORK OR ANY OTHER JURISDICTION) THAT
WOULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF NEW YORK. 
  
 9.9
Amendments and Waivers. No amendment or waiver of any provision of this Agreement shall be valid unless the same shall be in writing and signed by the Buyer, IDT and Holders holding at least two-thirds (2/3) of the Registrable Securities. No
waiver by any Party of any default, misrepresentation, or breach of warranty or covenant hereunder, whether intentional or not shall be deemed to extend to any prior or subsequent default, misrepresentation, or breach of warranty or covenant
hereunder or affect in any way any rights arising by virtue of any prior or subsequent such occurrence. 
  
 9.10
Severability. Any term or provision of this Agreement that is invalid or unenforceable in any situation in any jurisdiction shall not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or
enforceability of the offending term or provision in any other situation or in any other jurisdiction. 
  
 9.11
Expenses. Except as otherwise provided herein, each of the Parties will bear its own costs and expenses (including legal fees and expenses) incurred in connection with this Agreement and the transactions contemplated hereby. 

 
 18 

  
 9.12 Construction. The Parties 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 Parties 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. Any reference to any federal, state, local, or foreign statute or law shall be deemed also to refer to all rules and regulations promulgated thereunder,
unless the context requires otherwise. The word “including” shall mean including without limitation. 
  
 9.13 Jurisdiction. Each of the Parties agrees that jurisdiction and venue in any action brought by any Party pursuant to this Agreement shall properly lie in the Court. By execution and delivery of this Agreement, each of the
Parties irrevocably submits to the jurisdiction of the Court for itself or himself and in respect of its or his property with respect to such action. THE PARTIES IRREVOCABLY AGREE THAT VENUE WOULD BE PROPER IN THE COURT, AND HEREBY WAIVE ANY
OBJECTION THAT THE COURT IS AN IMPROPER OR INCONVENIENT FORUM FOR THE RESOLUTION OF SUCH ACTION. The Parties further agree that the mailing by certified or registered mail, return receipt requested, of any process required by the Court shall
constitute valid and lawful service of process against them, without necessity for service by any other means provided by statute or rule of court. 
  
 9.14 Court Approval. This Agreement is subject to the approval of the Court. 
  
 [signature page follows] 

 
 19 

 IN WITNESS WHEREOF, the Parties hereto have causal their respective authorized officers to execute this Agreement
on the date first above written. 
  
 
	 /s/ Christine C. Schubert
 

	 Christine C. Schubert, chapter 7 Trustee, on behalf of
 WCI CAPITAL CORP.
 
	 
	 Address:
 	 	 

	  	 	 Attn: 
 Fax: 
 	 	 

 
 
	 
	 DIPCHIP, INC.
 
	 
	 By:
 	 	 

	  	 	 Name:
 Title:
 
	 
	 IDT CORPORATION
 
	 
	 By:
 	 	 

	  	 	 Name:
 Title:
 
	 
	 WINSTAR HOLDINGS, LLC.
 
	 
	 By:
 	 	 

	  	 	 Name:
 Title:
 

 
  
 By execution below, the undersigned consents and 
 agrees to the entry into and consummation of this 
 Unit Purchase Agreement and the transfer of the 
 Units contemplated hereunder. 
  
 IDT ADVANCED COMMUNICATION 
 SERVICES, LLC 
  
 
	 
	 By:
 	 	 

	  	 	 Name:
 Title:
 

 

  
 IN WITNESS WHEREOF, the Parties hereto have caused their respective
authorized officers to execute this Agreement on the date first above written. 
  
  
 
	 WCI CAPITAL CORP.
 
	 
	 By:
 	 	 

	 Name:
 Title:
 
	 
	 DIPCHIP, INC.
 
	 
	 By:
 	 	 /s/ Howard Jones
 

	 Name: Howard Jones
 Title:
 
	 
	 IDT CORPORATION 
 
	 
	 By:
 	 	 

	 Name:
 Title:
 
	 
	 WINSTAR HOLDINGS, LLC
 
	 
	 By:
 	 	 

	 Name:
 Title:
 

 
  
 By execution below. the undersigned consents and 
 agrees to the entry into and consummation of this 
 Unit Purchase Agreement and the transfer of the 
 Units contemplated hereunder. 
  
 
	 IDT ADVANCED COMMUNICATION
SERVICES, LLC
 
	 
	 By:
 	 	 

	 Name:
 Title:
 

 

  
 IN WITNESS WHEREOF, the Parties hereto have caused their respective authorized
officers to execute this Agreement on the date first above written. 
  
 
	 WC1 CAPITAL CORP.
 
	 
	 By:
 	 	 

	 Name:
 Title:
 

 
 
	 
	 DIPCHIP, INC.
 
	 
	 By:
 	 	 

	 Name:
 Title:
 

 
 
	 
	 IDT CORPORATION
 
	 
	 By:
 	 	   /s/    Ira Greenstein
 

	 Name: Ira Greenstein
 Title: President
 

 
 
	 
	 WINSTAR HOLDINGS, LLC
 
	 
	 By:
 	 	 

	 Name:
 Title:
 

 
  
 By execution below, the undersigned consents and
 agrees to the entry into and
consummation of this
 Unit Purchase Agreement and the transfer of the
 Units contemplated hereunder. 
  
 IDT ADVANCED
COMMUNlCATION
 SERVICES, LLC 
  
 
	 
	 By:
 	 	 

	 Name:
 Title:
 	 	  

 

 
 22 

  
 IN WITNESS WHEREOF, the Parties hereto have caused their respective authorized
officers to execute this Agreement on the date first above written. 
  
 
	 WC1 CAPITAL CORP.
 
	 
	 By:
 	 	 

	 Name:
 Title:
 

 
 
	 
	 DIPCHIP, INC.
 
	 
	 By:
 	 	 

	 Name:
 Title:
 

 
 
	 
	 IDT CORPORATION
 
	 
	 By:
 	 	 

	 Name:
 Title:
 

 
 
	 
	 WINSTAR HOLDINGS, LLC
 
	 
	 By:
 	 	 /s/    Brian Finkelstein  
 

	 Name: Brian Finkelstein
 Title: CEO
 

 
  
 By execution below, the undersigned consents and 
 agrees to the entry into and consummation of this 
 Unit Purchase Agreement and the transfer of the 
 Units contemplated hereunder. 
  
 IDT ADVANCED COMMUNICATION 
 SERVICES, LLC 
  
 
	 
	 By:
 	 	   /s/    Brian Finkelstein  
 

	 Name: Brian Finkelstein  
 Title: CEO
 

 

 
 23 

 Exhibit A 
  
 JOINDER AGREEMENT 
  
 This Joinder Agreement (this “Agreement”) is made this
       day of                     , 2002, by Dipchip Inc., a Delaware corporation (the “Buyer”)
in favor of Winstar Holdings, LLC, a Delaware limited liability company (the “Company”). Capitalized terms used but not defined herein have the meanings given to them in the limited liability company of the Company, dated December 19, 2001
(the “LLC Agreement”). 
  
 WHEREAS, concurrently with the execution and delivery of this Agreement to the
Company, the Buyer is purchasing 50 Common Units of the Company (the “Common Units”) from WC1 Capital Corp. (the “Seller”) pursuant to a Unit Purchase Agreement; and 
  
 WHEREAS, pursuant to such Unit Purchase Agreement, the Buyer is required to execute and deliver this Agreement. 
  
 NOW, THEREFORE, in consideration of the premises, the terms and provisions set forth herein and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the Buyer, intending to be legally bound, agrees as follows: 
  
 1. The Buyer hereby agrees
to become a party to the LLC Agreement and be bound by all of the provisions thereof applicable to the Seller at the time of the sale of the Common Units. 
  
 2. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without reference to its principles of conflicts of law. 
  
 IN WITNESS WHEREOF, the Buyer has signed this Agreement as of the date written above. 
  
 
	 DIPCHIP INC.
 
	 
	 By:
 	 	 

	  	 	 Name:
 Title:
 

 
  
  
 Consented to and Agreed: 
  
 
	 WINSTAR HOLDINGS, LLC
 
	 
	 By:
 	 	 

	  	 	 Name:
 Title:
 

 

 Schedule 3.1 
  
 
	 Name of Holder
 
	  	 Type of Entity
 
	  	 Jurisdiction of Organization
 

	 WC1 Capital Corp.
 	  	 corporation
 	  	 Delaware

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