Document:

Exhibit 10.1

 

EXECUTION VERSION

 

COOPERATION AGREEMENT

 

This Cooperation Agreement (this “Agreement”),
dated as of December 18, 2020, is entered into by and among Dave & Buster’s Entertainment, Inc., a Delaware corporation
(the “Company”), James Chambers, an individual, and Hill Path Capital LP, a Delaware limited partnership (“Hill
Path”).

 

In
consideration of and reliance upon the mutual covenants and agreements contained herein, and for other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

1.            
Defined Terms. Capitalized terms used in this Agreement and not otherwise defined have the following meanings:

 

(a)              
“2021 Annual Meeting” shall mean the Company’s 2021 Annual Meeting of Stockholders, including any
postponement or adjournment thereof;

 

(b)              
“Affiliate” shall have the meaning set forth in Rule 12b-2 promulgated under the Exchange Act and shall
include Persons who become Affiliates of any Person subsequent to the date of this Agreement;

 

(c)              
“beneficially own”, “beneficially owned” and “beneficial ownership”
shall have the meaning set forth in Rules 13d-3 and 13d-5(b)(l) promulgated under the Exchange Act;

 

(d)              
“business day” shall mean any day other than a Saturday, Sunday or a day on which the Federal Reserve
Bank of New York is closed;

 

(e)              
“Company Policies” shall mean the confidentiality, conflicts of interest, related party transactions,
codes of conduct, trading and disclosure, director resignation and other guidelines and policies of the Company;

 

(f)               
“Expiration Date” means the date that is the later of (i) fifteen (15) days prior to the last day of
the time period, established pursuant to the Company’s Bylaws, for stockholders to deliver notice to the Company of director
nominations to be brought before the Company’s 2022 Annual Meeting of Stockholders, including any postponement or adjournment
thereof, and (ii) ten (10) days after such time as Hill Path Designee is no longer a member of the Board;

 

(g)              
“Extraordinary Transaction” means any tender offer, takeover, merger, acquisition, business combination,
recapitalization, restructuring, issuance of common stock or any other strategic or change of control transaction involving the
Company or the assets or business of the Company, its subsidiaries and joint ventures, taken as a whole, in each case where the
aggregate consideration is more than $130 million in whatever form, cash or stock;

 

(h)              
“Independent” means that a Person shall be an independent director of the Company under the Company’s
independence guidelines, applicable law and the rules and regulations of the SEC and the Nasdaq Stock Market;

 

     

     

    

 

(i)                
“Person” shall be interpreted broadly to include, among others, any individual, general or limited partnership,
corporation, limited liability or unlimited liability company, joint venture, estate, trust, group, association or other entity
of any kind or structure;

 

(j)                
“Third Party” means any Person that is not a party to this Agreement or an Affiliate thereof, a member
of the Board, a director or officer of the Company, or legal counsel to any party to this Agreement; and

 

(k)              
“Voting Securities” shall mean the shares of common stock of the Company and any other securities of
the Company entitled to vote in the election of directors, or securities convertible into, or exercisable or exchangeable for,
such shares or other securities, whether or not subject to the passage of time or other contingencies.

 

2.            
Appointment and Nomination.

 

(a)              
Effective as of December 22, 2020, the board of directors of the Company (the “Board”) shall appoint
James Chambers (the “Hill Path Designee”) to serve on the Board. The Nominating and Corporate Governance Committee
of the Board and the Board will nominate the Hill Path Designee for election as one of the director nominees of the Company in
connection with the 2021 Annual Meeting. The Company shall use reasonable best efforts to cause the election of the Hill Path Designee
to the Board at the 2021 Annual Meeting consistent with the Company’s efforts to elect the other Company nominees.

 

(b)              
Concurrent with the appointment of the Hill Path Designee to the Board, the Board shall take such action as is necessary
such that the Designee is appointed to the Audit Committee of the Board, the Finance Committee of the Board, the Compensation Committee
of the Board and to any executive committee of the Board exercising substantially all the typical authority or role of the Board
that is formed on or after the date hereof; provided, that with respect to any such committee appointments, the Hill Path Designee
is and continues to remain eligible to serve as a member of such committee pursuant to the Company Policies, applicable law and
the listing standards of the Nasdaq Stock Market. Each committee of the Board shall invite all directors who are not members of
such committee to be observers at such committee’s meetings, unless otherwise determined by the chair of such committee.

 

3.            
Hill Path Designee Independence. Hill Path represents that the Hill Path Designee is Independent and satisfies the
Board membership criteria set forth in the Company Policies.

 

4.            
Hill Path Designee Information. As a condition to the Hill Path Designee’s appointment to the Board and the
committees in Section 2(b), and any subsequent nomination for election as a director at the 2021 Annual Meeting and any
other future Company Annual Meeting of Stockholders, the Hill Path Designee candidate has submitted, prior to the date of this
Agreement, a fully completed copy of the Company’s standard director and officer questionnaire and will provide any information
the Company reasonably requires, including information required to be disclosed in a proxy statement or other filing under applicable
law, stock exchange rules or listing standards, information in connection with assessing eligibility, independence and other criteria
applicable to directors or satisfying compliance and legal obligations

 

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5.            
Voting of Hill Path’s Shares. In connection with the 2021 Annual Meeting, so long as the Hill Path Designee
has been appointed to the Board and nominated by the Company for the 2021 Annual Meeting in accordance with Section 2 above,
Hill Path will cause to be present for quorum purposes and vote or cause to be voted all Company common stock beneficially owned
by it and which it has the right to vote on the record date for the 2021 Annual Meeting in favor of (a) the election of each of
the Board’s nominees, (b) the appointment of the Board’s recommended independent auditor for fiscal year 2021 and (c)
any executive compensation proposals, including the say on pay vote, in each case in accordance with the Board’s recommendations.

 

6.            
Company Policies. The parties hereto acknowledge that the Hill Path Designee, upon appointment to the Board, will
serve as a member of the Board and will be governed by the same protections and obligations as a member of the Board (including
as set forth in the Company Policies), and shall have the same rights and benefits, including with respect to insurance, indemnification,
compensation and fees, as are applicable to all independent directors of the Company. Hill Path agrees to comply with all Company
Policies applicable to the trading or other transactions of securities of the Company by insiders of the Company, including with
respect to trading windows, as if Hill Path were a director on the Board. Consistent with the Hill Path Designee’s obligation
as a director of the Company to maintain the confidentiality of any confidential non-public information concerning the Company
(“Confidential Information”), the Hill Path Designee agrees not to disclose or discuss any Confidential Information
except in accordance with the Company Policies, including any confidentiality agreement entered into by the Hill Path with the
Company as a director thereof (the “Designee Confidentiality Agreement”); provided, the Hill Path Designee may
disclose Confidential Information to Hill Path and its Affiliates, officers, directors, employees and outside advisors to in accordance
with and to the extent permitted by such Designee Confidentiality Agreement. The Company represents and warrants that all Company
Policies currently in effect are publicly available on the Company’s website or described in its proxy statement filed with
the Securities and Exchange Commission (the “SEC”) on May 13, 2020 or have otherwise been provided to Hill Path,
and such Company Policies will not be amended prior to the appointment of the Hill Path Designee other than as may be required
to implement this Agreement or as required by law, regulation or the rules of any applicable national securities exchange.

 

7.            
Standstill. From the date of this Agreement until the Expiration Date (such period, the “Restricted Period”),
Hill Path and its Affiliates will not, and will cause their respective principals, directors, general partners, officers, employees,
and agents and representatives acting on their behalf (collectively, the “Restricted Persons”) not to, directly
or indirectly, absent prior express written invitation or authorization by the Company or the Board:

 

(a)              
engage in any “solicitation” (as such term is defined under the Securities Exchange Act of 1934, as amended
(the “Exchange Act”)) of proxies or consents with respect to the election or removal of directors or any other
matter or proposal or become a “participant” (as such term is defined in Instruction 3 to Item 4 of Schedule 14A promulgated
under the Exchange Act) in any such solicitation of proxies or consents; provided, that such restriction shall not restrict or
prohibit Hill Path from initiating, engaging in, facilitating or publicly advocating for or responding to an Extraordinary Transaction;

 

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(b)              
knowingly encourage, advise or influence any other Person or knowingly assist any Person in so encouraging, advising or
influencing any Person with respect to the giving or withholding of any proxy, consent or other authority to vote or in conducting
any type of referendum, binding or non-binding, (other than such encouragement, advice or influence that is consistent with Company
management’s recommendation in connection with such matter); provided, that such restriction shall not restrict or prohibit
Hill Path from initiating, engaging in, facilitating or publicly advocating for or responding to an Extraordinary Transaction;

 

(c)              
enter into a voting trust, arrangement or agreement or subject any Voting Securities to any voting trust, arrangement or
agreement, with respect to Voting Securities now or hereafter owned by them and other than granting proxies in solicitations approved
by the Board; provided, that such restriction shall not restrict or prohibit Hill Path from initiating, engaging in, facilitating
or publicly advocating for or responding to an Extraordinary Transaction;

 

(d)              
(i) seek, alone or in concert with others, election or appointment to, or representation on, the Board or nominate or propose
the nomination of, or recommend the nomination of, any candidate to the Board, except as set forth herein, (ii) seek, alone or
in concert with others, the removal of any member of the Board or (iii) conduct a referendum of stockholders; provided, that such
restriction (iii) shall not restrict or prohibit Hill Path from initiating, engaging in, facilitating or publicly advocating for
or responding to an Extraordinary Transaction;

 

(e)              
make or be the proponent of any stockholder proposal (pursuant to Rule 14a-8 under the Exchange Act or otherwise); provided,
that such restriction shall not restrict or prohibit Hill Path from initiating, engaging in, facilitating or publicly advocating
for or responding to an Extraordinary Transaction;

 

(f)               
except as set forth herein, make any public proposal with respect to (i) any change in the number or term of directors or
the filling of any vacancies on the Board, (ii) any material change in the capitalization or dividend policy of the Company, (iii)
any other material change in the Company’s governance, management, business, strategy or corporate structure or (iv) any
waiver, amendment or modification to the Company’s Certificate of Incorporation or Bylaws; provided, that such restrictions
(ii), (iii) and (iv) shall not restrict or prohibit Hill Path from initiating, engaging in, facilitating or publicly advocating
for or responding to an Extraordinary Transaction;

 

(g)              
institute, solicit, assist or join any litigation, arbitration or other proceeding against or involving the Company or any
of its current or former directors or officers (including derivative actions) in order to effect or take any of the actions expressly
prohibited by this Section 7; provided, however, that for the avoidance of doubt the foregoing shall not prevent any Restricted
Person from (i) bringing litigation to enforce the provisions of this Agreement, (ii) making counterclaims with respect to any
proceeding initiated by, or on behalf of, the Company against a Restricted Person, (iii) bringing bona fide commercial disputes
that do not relate to the subject matter of this Agreement, or (iv) exercising statutory appraisal rights; provided, further, that
the foregoing shall also not prevent the Restricted Persons from responding to or complying with a validly issued legal process;

 

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(h)              
enter into any negotiations, agreements or understandings with any Third Party, or otherwise encouraging or facilitating
any Third Party, in each case to take any action that Hill Path is prohibited from taking pursuant to this Section 7; or

 

(i)                
make any request or submit any proposal, directly or indirectly, to amend or waive the terms of this Agreement, in each
case which would reasonably be expected to result in a public announcement of such request or proposal.

 

Notwithstanding anything to the contrary in this Agreement,
during the Restricted Period the Restricted Persons may not directly or indirectly seek or take any action with respect to the
election or removal of directors or any change to the composition, number or term of directors or the filling of any vacancies
on the Board.

 

Notwithstanding anything to the contrary in
this Agreement, nothing in this Agreement shall prohibit or restrict (x) the Hill Path Designee from exercising his rights and
fiduciary duties as a director of the Company or restrict his discussions solely among other members of the Board and/or management,
advisors, representatives or agents of the Company and (y) the Board from forming an independent committee of the Board (which
independent committee shall not include the Hill Path Designee if such Hill Path Designee is determined to have a conflict of interest
that is not approved or ratified by the Audit Committee pursuant to the Company’s Related Party Transaction Policy and Code
of Business Conduct and Ethics) if any of the Restricted Persons (i) take any public position adverse to the interests of the Board
or the Company as reasonably determined by the Board or any committee thereof or (ii) acquire, offer or propose to acquire, or
agree to acquire any securities of the Company if, after giving effect to such acquisition, Hill Path and its Affiliates (together
with any individual or entity that would be deemed to be part of a “group” (as such term is defined in Section 13(d)(3)
of the Exchange Act) with Hill Path or any of its Affiliates would own, control or otherwise have any beneficial or other ownership
interest in an amount in excess of 15% of such class of securities of the Company outstanding at such time, based on the total
number of such securities outstanding as most recently disclosed by the Company on the cover of a publicly filed Form 10-K or Form
10-Q or otherwise disclosed or communicated in writing by the Company to Hill Path.

 

8.            
Press Release; SEC Filings. Promptly following the execution and delivery of this Agreement, the Company shall issue
a press release in a form mutually agreed by the parties (the “Press Release”) and no party shall make any statement
inconsistent with the Press Release in connection with the announcement of this Agreement. Additionally, promptly following the
execution and delivery of this Agreement (but in no case prior to the filing or other public release by the Company of the Press
Release), the Company will file a Current Report on Form 8-K, which will report the entry into this Agreement. Hill Path shall
promptly, but in no case prior to the date of the filing or other public release by the Company of the Press Release, prepare and
file an amendment to the Schedule 13D with respect to the Company originally filed by Hill Path with the SEC on December 20, 2019
(the “Schedule 13D”) reporting the entry into this Agreement and amending applicable items to conform to its
obligations hereunder. The amendment to the Schedule 13D and the Form 8-K shall each be consistent with the Press Release and the
terms of this Agreement, and shall be in form and substance reasonably acceptable to the Company and Hill Path.

 

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9.            
Non-Disparagement. During the Restricted Period, the Company and Hill Path shall each refrain from making, and shall
cause their respective Affiliates and their respective principals, directors, members, general partners, officers and employees
not to make or cause to be made any statement or announcement including in any document or report filed with or furnished to the
SEC or through the press, media, analysts or other persons, that both relates to and constitutes an ad hominem attack on, or that
both relates to and otherwise disparages, defames, slanders, impugns or is reasonably likely to damage the reputation of, (a) in
the case of statements or announcements by Hill Path: the Company or any of its Affiliates, subsidiaries or advisors, or any of
its or their respective current or former officers, directors or employees (including, without limitation, any statements or announcements
regarding the Company’s strategy, operations, performance, products or services), and (b) in the case of statements or announcements
by the Company: Hill Path’s advisors, employees or any person who has served as an employee of Hill Path and its advisors.
The foregoing shall not restrict the ability of any person to comply with any subpoena or other legal process or respond to a request
for information from any governmental authority with jurisdiction over the party from whom information is sought or to enforce
such person’s rights hereunder.

 

10.          
Hill Path’s Representations and Warranties. Hill Path hereby represents and warrants that (a) this Agreement
has been duly authorized, executed and delivered by it and is a valid and binding obligation of Hill Path, enforceable against
it in accordance with its terms; (b) Hill Path has the right and power to control and cause its Affiliates to abide by their respective
obligations under this Agreement; and (c) as of the date of this Agreement, (i) Hill Path beneficially owns approximately 9.3%
of the Company’s outstanding common stock and has economic exposure to approximately 9.3%% of the Company’s outstanding
common stock and (ii) except as previously disclosed in writing to the Company prior to the execution of this Agreement, Hill Path
is not a party to any swap or hedging transactions or other derivative agreements of any nature with respect to the Voting Securities.
Hill Path further represents and warrants that it is aware of the restrictions imposed by the U.S. securities laws on the purchase
or sale of securities by any person who has received material, non-public information from the issuer of such securities and on
the communication of such information to any other person when it is reasonably foreseeable that such other person is likely to
purchase or sell such securities in reliance upon such information.

 

11.          
Company Representations and Warranties. The Company represents and warrants that (a) this Agreement has been duly
authorized, executed and delivered by it and is a valid and binding obligation of the Company, enforceable against the Company
in accordance with its terms; (b) does not require the approval of the stockholders of the Company; and (c) does not and will not
violate any law, any order of any court or other agency of government, the Company’s Certificate of Incorporation or Bylaws,
each as may be amended from time to time, or any provision of any agreement or other instrument to which the Company or any of
its properties or assets is bound, or conflict with, result in a breach of, loss of a material benefit under, give any right of
termination, amendment, acceleration or cancellation of, or constitute (with due notice or lapse of time or both) a default under
any such agreement or other instrument, or result in the creation or imposition of, or give rise to, any material lien, charge,
restriction, claim, encumbrance or adverse penalty of any nature whatsoever pursuant to any such indenture, agreement or other
instrument.

 

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12.          
Specific Performance. The Company and Hill Path acknowledge and agree that money damages would not be a sufficient
remedy for any breach (or threatened breach) of this Agreement by it and that, in the event of any breach or threatened breach
hereof, (a) the non-breaching party will be entitled to injunctive and other equitable relief, without proof of actual damages;
(b) the breaching party will not plead in defense thereto that there would be an adequate remedy at law; and (c) the breaching
party agrees to waive any applicable right or requirement that a bond be posted by the non-breaching party. Such remedies will
not be the exclusive remedies for a breach of this Agreement, but will be in addition to all other remedies available at law or
in equity.

 

13.          
Entire Agreement; Successors and Assigns; Amendment and Waiver. This Agreement (including its exhibits) constitutes
the only agreement between Hill Path and the Company with respect to the subject matter hereof and supersedes all prior agreements,
understandings, negotiations and discussions, whether oral or written. This Agreement shall be binding upon and inure to the benefit
of the parties and their respective successors and permitted assigns. No party may assign or otherwise transfer either this Agreement
or any of its rights, interests, or obligations hereunder without the prior written approval of the other party. Any purported
transfer requiring consent without such consent shall be void. No amendment, modification, supplement or waiver of any provision
of this Agreement shall be effective unless it is in writing and signed by the party affected thereby, and then only in the specific
instance and for the specific purpose stated therein. Any waiver by any party of a breach of any provision of this Agreement shall
not operate as or be construed to be a waiver of any other breach of such provision or of any breach of any other provision of
this Agreement. The failure of a party to insist upon strict adherence to any term of this Agreement on one or more occasions shall
not be considered a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other
term of this Agreement.

 

14.          
Severability. If any provision of this Agreement is held invalid or unenforceable by any court of competent jurisdiction,
the other provisions of this Agreement shall remain in full force and effect. Any provision of this Agreement held invalid or unenforceable
only in part or degree shall remain in full force and effect to the extent not held invalid or unenforceable. The parties further
agree to replace such invalid or unenforceable provision of this Agreement with a valid and enforceable provision that will achieve,
to the extent possible, the purposes of such invalid or unenforceable provision.

 

15.          
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware.
Each of Hill Path and the Company (a) irrevocably and unconditionally consents to the personal jurisdiction and venue of the Delaware
Court of Chancery and any state appellate court therefrom within the State of Delaware (or, if the Delaware Court of Chancery declines
to accept jurisdiction over a particular matter, any federal court within the State of Delaware); (b) agrees that it shall not
attempt to deny or defeat such personal jurisdiction by motion or other request for leave from any such court; (c) agrees that
it shall not bring any action relating to this Agreement or otherwise in any court other than such courts; and (d) waives any claim
of improper venue or any claim that those courts are an inconvenient forum. The parties agree that mailing of process or other
papers in connection with any such action or proceeding in the manner provided in Section 17 or in such other manner as
may be permitted by applicable law, shall be valid and sufficient service thereof. Each of the parties, after consulting or having
had the opportunity to consult with counsel, knowingly, voluntarily and intentionally waives any right that such party may have
to a trial by jury in any litigation based upon or arising out of this Agreement or any related instrument or agreement, or any
of the transactions contemplated thereby, or any course of conduct, dealing, statements (whether oral or written), or actions of
any of them. No party shall seek to consolidate, by counterclaim or otherwise, any action in which a jury trial has been waived
with any other action in which a jury trial cannot be or has not been waived.

 

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16.          
Parties in Interest. This Agreement is solely for the benefit of the parties and is not enforceable by any other
Person.

 

17.          
Notices. All notices, consents, requests, instructions, approvals and other communications provided for herein, and
all legal process in regard hereto, will be in writing and will be deemed validly given, made or served when delivered in person,
by electronic mail, by overnight courier or two business days after being sent by registered or certified mail (postage prepaid,
return receipt requested) as follows:

 

If to the Company to:

 

Dave & Buster’s Entertainment, Inc.

2481 Manana Dr.

Dallas, TX 75220

Attn:Rob Edmund

Email: rob.edmund@daveandbusters.com

 

with a copy (which shall not constitute notice) to:

 

Paul, Weiss, Rifkind, Wharton & Garrison LLP

1285 Avenue of the Americas

New York, NY 10019

Attn: Robert B. Schumer

Email: rschumer@paulweiss.com

 

If to Hill Path or the Hill Path Designee

 

Hill Path Capital LP

150 East 58th Street, 32nd Floor

New York, New York 10155

Attn: James Chambers

Email: chambers@hillpathcap.com

 

with a copy (which shall not constitute notice) to:

 

Olshan Frome Wolosky LLP

1325 Avenue of the Americas

New York, NY 10019

Attn:Steve Wolosky

Email:swolosky@olshanlaw.com

 

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At any time, any party may, by notice given in accordance with
this Section 17 to the other party, provide updated information for notices hereunder.

 

18.          
Legal Fees. The Company shall reimburse Hill Path for its reasonable documented out-of-pocket fees and expenses (including
legal expenses) incurred in connection with Hill Path’s involvement at the Company through the date of this Agreement, including
but not limited to, its Schedule 13D filings and the negotiation and execution of this Agreement (“Reimbursement”);
provided, that such Reimbursement shall not exceed $40,000 in the aggregate.

 

19.          
Interpretation. Each of the parties acknowledges that it has been represented by counsel of its choice throughout
all negotiations that have preceded the execution of this Agreement, and that it has executed this Agreement with the advice of
such counsel. Each party and its counsel cooperated and participated in the drafting and preparation of this Agreement, and any
and all drafts relating thereto exchanged among the parties shall be deemed the work product of all of the parties and may not
be construed against any party by reason of its drafting or preparation. Accordingly, any rule of law or any legal decision that
would require interpretation of any ambiguities in this Agreement against any party that drafted or prepared it is of no application
and is hereby expressly waived by each of the parties, and any controversy over interpretations of this Agreement shall be decided
without regard to events of drafting or preparation.

 

20.          
Counterparts. This Agreement may be executed by the parties in separate counterparts (including by fax, jpeg, .gif,
..bmp and .pdf), each of which when so executed shall be an original, but all such counterparts shall together constitute one and
the same instrument.

 

 

 

[Signature page follows]

 

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Accepted and agreed as of the date first written
above:

 

 

 

Dave & Buster’s Entertainment, Inc.

 

	By:	/s/ Robert W. Edmund	 
	Name: Robert W. Edmund	 
	Title: General Counsel, Secretary and Senior Vice President of Human Resources

  

    [Signature Page to Cooperation Agreement]

     

    

  

Accepted and agreed (including on behalf of the Affiliates of
the below) as of the date first written above:

 

 

	James Chambers	 
	 	 
	/s/ James Chambers	 
	 	 
	 	 
	 	 
	Hill Path Capital LP	 
	 	 
	By: Hill Path Holdings LLC, its General Partner
	 	 
	/s/ Scott Ross	 
	Name: Scott Ross	 
	Title: Managing Partner	 

 

    [Signature Page to Cooperation Agreement]Exhibit 10.01

 

EXECUTION COPY

 

FIFTH AMENDED AND RESTATED EMPLOYMENT
AGREEMENT

 

This FIFTH AMENDED
AND RESTATED EMPLOYMENT AGREEMENT (this “Agreement”), entered into this 16TH day of December 2020, is by
and between IDT Corporation, a Delaware corporation (the “Company”), and Howard S. Jonas (the “Employee”).

 

WHEREAS, in recognition
of the Employee’s experience and abilities, the Company desires to assure itself of the continued employment of the Employee
in accordance with the terms and conditions provided herein;

 

WHEREAS, the Employee
wishes to continue to perform services for the Company in accordance with the terms and conditions provided herein;

 

WHEREAS, the Company
and the Employee are parties to that certain Fourth Amended and Restated Employment Agreement, dated as of December 14, 2016 (the
“Prior Agreement”); and

 

WHEREAS, the parties
desire to further amend and restate the Prior Agreement, with effect beginning on January 1, 2021 (the “Effective Date”)
as follows:

 

NOW, THEREFORE, in
consideration of the promises and the respective covenants and agreements of the parties herein contained, and intending to be
legally bound hereby, the parties hereto agree as follows:

 

1. Employment; Prior
Agreement. The Company hereby agrees to continue to employ the Employee, and the Employee hereby agrees to continue to be employed
by and perform services for the Company, on the terms and conditions set forth herein.

 

For all purposes (i)
related to the period up to 11:59 p.m. on December 31, 2020, the Prior Agreement (other than with respect to the title and executive
status of the Employee which was previously modified and shall be as described herein) shall remain in full force and effect, and
(ii) related to the period beginning on and following the Effective Date hereof, except as expressly provided herein, the Prior
Agreement shall be of no further force or effect and the terms hereof shall govern the employment relationship between the Company
and the Employee and the other matters covered hereby.

 

2. Term. This
Agreement is for the period (the “Term”) commencing on the Effective Date hereof, and terminating on December 31, 2021,
or upon the Employee’s earlier death or other termination of employment pursuant to Section 7 hereof; provided, however,
that commencing on December 31, 2021 and each anniversary thereafter, the Term shall automatically be extended for one additional
year beyond its otherwise scheduled expiration unless, not later than ninety (90) days prior to any such anniversary, either party
hereto shall have notified the other party in writing that such extension shall not take effect.

 

3. Position.
During the Term, the Employee shall serve as a senior advisor to the Chief Executive Officer of the Company (the “CEO”),
and agrees to serve as the Chairman of the Board of Directors of the Company, if so designated by the Board. The Employee is not
currently an officer of the Company.

 

     

     

    

 

4. Duties. During
the Term, the Employee shall use his skills and render services to the best of his abilities on behalf of the Company. The Employee
shall dedicate as much time as is, in the judgment of the CEO or the Board of Directors of the Company (the “Board”),
necessary or advisable for the performance his duties hereunder, provided that the Company acknowledges that this is not a full-time
position and the Employee has other significant professional commitments and activities, including, without limitation, serving
as the Chairman of the Board of Genie Energy Ltd. IDW Media Holdings, Inc., Rafael Holdings, Inc. and Rafael Pharmaceuticals, Inc.,
as Vice Chairman of the Board of Zedge, Inc., and as Chief Executive Officer of Rafael Holdings, Inc., as well as in certain other
positions with business and not-for-profit entities, and that, none of such commitments and activities shall be deemed to be a
breach of the terms hereof.

 

5. Place of Performance.
The Employee shall perform his duties and conduct his business at the offices of the Company, currently located in Newark, New
Jersey, except for required travel on the Company’s business.

 

6. Compensation
and Related Matters.

 

(a) Base Salary.
The Company shall pay the Employee cash compensation at a rate of TWO HUNDRED FIFTY THOUSAND DOLLARS ($250,000) per annum, payable
in accordance with the Company’s standard payroll practices, less applicable taxes and customary withholdings.

 

(b) Bonuses. The
Employee shall be entitled to discretionary bonuses or other incentive compensation at levels, if any, determined by the CEO or
the Compensation Committee of the Board.

 

(c) Employee Benefit
Plans. During the Term, the Employee shall be entitled to participate in those incentive plans, programs, and arrangements
which are available to senior personnel of the Company (the “Benefits Plans”). The Employee shall be provided benefits
under the Benefit Plans substantially equivalent, in the aggregate, to the benefits provided to senior personnel of the Company
and on substantially similar terms and conditions.

 

(d) Pension and Welfare
Benefits. During the Term, the Employee shall be eligible to participate in the pension and retirement plans (the “Pension
Plans”) provided to senior personnel of the Company, and participate fully in all health benefits, insurance programs, life
and disability insurance and other similar welfare benefit arrangements available to senior personnel of the Company and shall
be provided benefits under such plans and arrangements substantially equivalent, in the aggregate, to the benefits provided to
senior personnel of the Company and on substantially similar terms and conditions.

 

(e) Fringe Benefits
and Perquisites. During the Term, the Company shall provide to the Employee all of the fringe benefits and perquisites that
are provided to senior personnel of the Company, and the Employee shall be entitled to receive any other fringe benefits or perquisites
that become available to senior personnel of the Company subsequent to the date hereof. The benefits described herein include,
but are not limited to, an automobile leased for the Employee by the Company, the make and model of which is consistent with that
being used by the Employee on the execution date of this Agreement.

 

    2

     

    

 

(f) Business Expenses.
The Employee will be reimbursed for all ordinary and necessary business expenses incurred by him in connection with his employment
(including without limitation, expenses for travel and entertainment incurred in conducting or promoting business for the Company)
upon submission by the Employee of receipts and other documentation in accordance with the Company’s normal reimbursement
procedures.

 

7. Termination.
The Employee’s employment hereunder may be terminated upon breach of the Agreement, upon resignation by the Employee, or
under the following circumstances:

 

(a) Death; Disability.
The Employee’s employment hereunder shall terminate upon his death or, except as may otherwise be prohibited by law, shall
terminate on his “Disability” (as hereafter defined). For purposes of this Agreement, “Disability” shall
mean the inability of the Employee to perform his duties on account of a physical or mental illness for a period of ninety (90)
consecutive days or one hundred and twenty (120) days in any eight (8) month period.

 

(b) Cause. The
Company may terminate the Employee’s employment hereunder for “Cause.” For purposes of this Agreement, the Company
shall have “Cause” to terminate the Employee’s employment hereunder (i) upon the Employee’s conviction
for the commission of an act or acts constituting a felony under the laws of the United States or any state thereof, or (ii) upon
the Employee’s willful and continued failure to substantially perform his duties hereunder (other than any such failure resulting
from the Employee’s incapacity due to physical or mental illness), after written notice has been delivered to the Employee
by the Company, which notice specifically identifies the manner in which the Employee has not substantially performed his duties,
and the Employee’s failure to substantially perform his duties is not cured within ten (10) business days after notice of
such failure has been given to the Employee. For purposes of this Section 7 (b), no act or failure to act on the Employee’s
part shall be deemed “willful” unless done or omitted to be done, by the Employee not in good faith and without reasonable
belief that the Employee’s act, or failure to act, was in the best interest of the Company.

 

(c) Termination by
the Employee. As provided in this Section 7(c), the Employee may terminate his employment hereunder for “Good Reason.”
“Good Reason” shall mean the occurrence (without the Employee’s express written consent) of any one of the following
acts by the Company taken without the express approval or concurrent of the Employee, or failure by the Company to act:

 

(i) a
material breach of this Agreement by the Company;

 

(ii)
a substantial adverse alteration in the nature or status of the Employee’s responsibilities; or

 

(iii)
any purported termination of the Employee’s employment by the Company which is not effected pursuant to the terms of this
Agreement (and no such purported termination shall be effective).

 

    3

     

    

 

(iv)
A material reduction in the Employee’s annual base salary;

 

(v) a
significant reduction in the Employee’s positions, duties, responsibilities or reporting lines from those described in Section
4 hereof;

 

(vi)
relocation of the Employee’s principal place of employment outside of the Newark, New Jersey area; or

 

(vii)
a “Change in Control,” as defined in the Company’s 2015 Stock Option and Incentive Plan,

 

(each of the foregoing being a “Good
Reason Event”). The Employee may terminate employment for Good Reason if (A) the Employee has given written notice to the
Company of the existence of the Good Reason Event no later than 90 days after its initial existence, (B) the Company has not remedied
such Good Reason Event in all material respects within 30 days after its receipt of such written notice, and (C) the Employee terminated
employment within one year following the initial existence of such Good Reason Event.

 

The Employee’s right to terminate
his employment for Good Reason shall not be affected by the Employee’s incapacity due to physical or mental illness. The
Employee’s continued employment shall not constitute consent to, or a waiver of rights with respect to any act or failure
to act constituting Good Reason hereunder. Notwithstanding the foregoing, a termination shall not be treated as a Termination for
Good Reason if the Employee shall have consented in writing to the occurrence of the event giving rise to the claim of Termination
for Good Reason.

 

(d) Notice of Termination.
Any termination of the Employee’s employment by the Company or by the Employee (other than termination by reason of the Employee’s
death) shall be communicated by written Notice of Termination to the other party hereto in accordance with Section 12 hereof. For
purposes of this Agreement, a “Notice of Termination” shall mean a notice that shall indicate the specific termination
provision in this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances claims to provide
a basis for termination of the Employee’s employment under the provision so indicated. Further, a Notice of Termination for
Cause or Disability must include a copy of a resolution duly adopted by the affirmative vote of not less than a majority of the
entire membership of the Board at a meeting of the Board (in the case of a termination for Cause, after reasonable notice to the
Employee and an opportunity for the Employee, together with the Employee’s counsel, to be heard before the Board) finding
that, in the good faith opinion of the Board, the Employee was guilty of conduct set forth in the definition of Cause herein or
satisfied the criteria of a Disability, and specifying the particulars thereof.

 

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(e) Date of Termination.
“Date of Termination” shall mean if the Employee’s employment is terminated (i) by his death, the date of his
death, (ii) by reason of Disability, the date that the Employee is determined by the Board to have suffered a Disability, (iii)
by resignation of the Employee, the date the Employee so notifies the Board, or (iv) pursuant to paragraph (b) or (c) above, the
date specified in the Notice of Termination; provided, however, that if within thirty (30) days after any Notice
of Termination is given the party receiving such Notice of Termination notifies the other party that a dispute exists concerning
the termination, the Date of Termination shall be the date on which the dispute is finally determined. If within fifteen (15) days
after any Notice of Termination is given, or if later, prior to the Date of Termination (as determined without regard to this Section
7(e)), the party receiving such Notice of Termination notifies the other party that a dispute exists concerning the termination,
the Date of Termination shall be the date on which the dispute is finally resolved, either by mutual written agreement of the parties
or by a final judgment, order or decree of a court of competent jurisdiction (which is not appealable or with respect to which
the time for appeal, therefrom has expired and no appeal has been perfected); provided further that the Date of Termination shall
be extended by a notice of dispute only if such notice is given in good faith and the party giving such notice pursues the resolution
of such dispute with reasonable diligence.

 

(f) Compensation During
Dispute. If a purported termination occurs during the Term of this Agreement, and such termination is disputed in accordance
with Section 7(e) hereof, the Company shall continue to pay the Employee his base salary in effect when the notice giving rise
to the dispute was given and continue the Employee as a participant in all compensation, benefit and insurance plans in which the
Employee was participating when the notice giving rise to the dispute was given, until the dispute is finally resolved. Amounts
paid under this Section 7(f) are in addition to all other amounts due under this Agreement and shall not be offset against or reduce
any other amounts due under this Agreement.

 

8. Compensation
Upon Termination or During Disability.

 

(a) Death; Disability.
In the event that the Employee’s employment is terminated pursuant to Section 7(a) hereof, then as soon as practicable thereafter,
the Company shall pay the Employee or the Employee’s Beneficiary (as defined in Section 11(b) hereof), as the case may be,
(i) all unpaid amounts, if any, to which the Employee was entitled as of the Date of Termination under Section 6(a) hereof and
(ii) all unpaid amounts to which the Employee was then entitled under the Benefit Plans, the Pension Plans and any other unpaid
employee benefits, perquisites or other reimbursements (the amounts set forth in clauses (i) and (ii) above being hereinafter referred
to as the “Accrued Obligations”). In addition, in the event of the termination of this Agreement due to the Employee’s
death or Disability, the Company shall, within sixty (60) days following the Date of Termination, pay to the Employee or Employee’s
estate a lump sum payment equal to twelve (12) months of the cash portion of the Employee’s base salary (at the rate in effect
on the date of his death) (the “Severance Benefit”). Any unvested equity grants in the Company or its subsidiaries
granted to the Employee in connection with his service to the Company (“Equity Grants”) shall Vest upon a termination
pursuant to Section 7(a).

 

(b) Termination for
Cause; Voluntary Termination without Good Reason. If the Employee’s employment is terminated by the Company for Cause
or by the Employee other than for Good Reason, then the Company shall pay all Accrued Obligations to the Employee and the Company
shall have no further obligations to the Employee under this Agreement. If the Employee’s employment is terminated by the
Employee other than for Good Reason or by the Company for Cause, all Restricted Stock that has not Vested shall be forfeited.

 

    5

     

    

 

(c) Termination Without
Cause; Termination for Good Reason. If the Company shall terminate the Employee’s employment, other than for Cause, or
the Employee shall terminate his employment for Good Reason, then;

 

(i) the
Company shall pay to the Employee, the Accrued Obligations when due under the Company’s then payroll practices;

 

(ii)
all Equity Grants shall accelerate and Vest as of the Date of Termination; and

 

(iii)
the Company shall pay the Employee the Severance Benefit within sixty (60) days of the delivery by the Employee of the Release
Agreement. As a condition to receiving the Severance Benefit, the Employee will be required to execute and deliver the Company’s
standard release agreement (the “Release Agreement”) within forty-five (45) days following the Date of Termination.

 

9. Non-Disclosure.
The parties hereto agree, recognize and acknowledge that during the Term the Employee shall obtain knowledge of confidential information
regarding the business and affairs of the Company. It is therefore agreed that the Employee will respect and protect the confidentiality
of all confidential information pertaining to the Company, and will not (i) without the prior written consent of the Company, (ii)
unless required in the course of the Employee’s employment hereunder, or (iii) unless the Employee has an independent right
or obligation under applicable law, rules, regulations or court, government or regulatory authority order or decree, disclose in
any fashion such confidential information to any person (other than a person who is a director of, or who is employed by, the Company
or any subsidiary or who is engaged to render services to the Company or any subsidiary) at any time during or after the Term.
This Agreement does not limit the Employee’s ability to communicate with the Securities Exchange Commission or otherwise
participate in any investigation or proceeding that may be conducted by the Securities Exchange Commission, including providing
documents or other information, without notice to the Company. This Agreement further does not limit the Employee’s ability
to communicate with any other government agency or otherwise participate in any investigation or proceeding that may be conducted
by any government agency, including providing documents or other information, without notice to the Company, where such limitation
would be contrary to law.

 

10. Covenant Not
to Compete.

 

(a) The Employee hereby
agrees that for a period of one (1) year following the termination of this Agreement (other than a termination of the Employee’s
employment (i) by the Employee for Good Reason or (ii) by the Company other than for Cause) (the “Restricted Period”)
the Employee shall not, directly or indirectly, whether acting individually or through any person, firm, corporation, business
or any other entity:

 

(i) engage
in, or have any interest in any person, firm, corporation, business or other entity (as an officer, director, employee, agent,
stockholder, or other security holder, creditor, consultant or otherwise) that engages in any business activity where a substantial
aspect of the business of the Company is conducted, or planned to be conducted, at any time during the Restricted Period, which
business activity is the same as, similar to or competitive with the Company as the same may be conducted from time to time;

 

    6

     

    

 

(ii)
interfere with any contractual relationship that may exist from time to time of the business of the Company, including, but not
limited to, any contractual relationship with any director, officer, employee, or sales agent, or supplier of the Company; or

 

(iii)
solicit, induce or influence, or seek to induce or influence, any person who currently is, or from time to time may be, engaged
or employed by the Company (as an officer, director, employee, agent, or independent contractor) to terminate his or her employment
or engagement by the Company.

 

(b) Notwithstanding anything
to the contrary contained herein, the Employee, directly or indirectly, may own publicly traded stock constituting not more than
five percent (5%) of the outstanding shares of such class of stock of any corporation covered by clause (a)(i) above if, and as
long as, the Employee is not an officer, director, employee or agent of, or consultant or advisor to, or has any other relationship
or agreement with such corporation.

 

(c) The Employee acknowledges
that the restrictive provisions contained in this Agreement are reasonable and necessary, in view of the nature of the Company
and his knowledge thereof, in order to protect the legitimate interests of the Company.

 

11. Successors;
Binding Agreement.

 

(a) The Company shall
require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all
of the business and/or assets of the Company, by agreement in form and substance reasonably satisfactory to the Employee, to expressly
assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform
it if no such succession had taken place. Failure of the Company to obtain such assumption and agreement prior to the effectiveness
of any such succession shall be a breach of this Agreement and shall entitle the Employee to compensation from the Company in the
same amount and on the same terms as he would be entitled to hereunder if he terminated his employment for Good Reason, except
that for purposes of implementing the foregoing, the date on which any such succession becomes effective shall be deemed the Date
of Termination. As used in this Agreement, “Company” shall mean the Company as hereinafter defined and any successor
to its business and/or assets as aforesaid that executes and delivers the agreement provided for in this Section 11 or that otherwise
becomes bound by all the terms and provisions of this Agreement by operation of law.

 

(b) This Agreement and
all rights of the Employee hereunder shall inure to the benefit of and be enforced by the Employee’s personal or legal representatives,
executors, administrators, successors, heirs, distributee, devisee, and legatees. If the Employee should die while any amounts
should still be payable to him hereunder if he had continued to live, all such amounts, unless otherwise provided herein, shall
be paid in accordance with the terms of this Agreement to the Employee’s devisee, legatee, or other designee or, if there
be no such designee, to the Employee’s estate (any of which is referred to herein as a “Beneficiary”).

 

    7

     

    

 

12. Notice.
For purposes of this Agreement, notices, demands and all other communications provided for in this Agreement shall be in writing
and shall be deemed to have been duly given when delivered or (unless otherwise specified) mailed by United States certified or
registered mail, return receipt requested, postage paid, addressed as follows:

 

If to the Company:

IDT Corporation

520 Broad Street

Newark, New Jersey 07102

Attn: General Counsel

 

If to the Employee, at the Employee’s address
in the Company’s human resources files;

 

or to such other address as either party may have furnished
to the other in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt.

 

13. Miscellaneous.
No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to
in writing signed by the Employee and such other officer of the Company as may be specifically designated by the Board. No waiver
by either party hereto at any time of any breach by the other party hereto, or compliance with any condition or provision of this
Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the
same or prior or subsequent time. No agreements or representations, oral or otherwise, express or implied, with respect to the
subject matter hereof have been made by either party which are not set forth expressly in this Agreement. The validity, interpretation,
construction and performance of this Agreement shall be governed by the laws of the state of New Jersey without regard to its conflicts
of law principles.

 

14. Validity.
The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability
if any such other provision of this Agreement, which shall remain in full force and effect.

 

15. Remedies of
the Company.  Upon any termination for Cause that may cause irreparable harm to the Company or upon the violation
of the provisions of Section 9 or 10 hereof, the Company shall be entitled, if it so elects, to institute and prosecute proceedings
to obtain injunctive relief and damages, costs and expenses, including, without limitation, reasonable attorneys’ fees and
expenses, with respect to such termination.

 

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

 

17. Entire Agreement.
This Agreement and the other agreements referred to herein, set forth the entire agreement of the parties hereto in respect of
the subject matter contained herein and supersede any and all other prior agreements, promises, covenants, arrangements, communications,
representations or warranties, whether oral or written, by any officer, employee or representative of any party hereto, and in
prior agreements of the parties hereto in respect to the subject matter contained herein is hereby terminated and canceled.

 

    8

     

    

 

18. Special Rules
Regarding Section 409A of the Internal Revenue Code.

 

(a) It is intended
that any and all benefits under this Agreement either (i) shall not constitute “nonqualified deferred compensation”
within the meaning of Section 409A of the Internal Revenue Code (“Section 409A”), and therefore are exempt from Section
409A or (ii) are subject to a “substantial risk of forfeiture” and exempt from Section 409A under the “short−term
deferral rule” set forth in Treasury Regulation § 1.409A−1(b)(4). In any event, all provisions of this Agreement
shall be construed and interpreted in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A.

 

(b) Notwithstanding
anything herein to the contrary, if the Company determines that the Severance Benefit constitutes “nonqualified deferred
compensation” within the meaning of Section 409A, payment of such Severance Benefit shall not commence until the Employee
incurs a “separation from service” within the meaning of Treasury Regulation §1.409A−1(h) (“Separation
from Service”). If, at the time of the Employee’s Separation from Service, the Employee is a “specified employee”
(under Section 409A), such Severance Benefit shall not be paid until after the earlier of (i) the expiration of the six−month
period measured from the date of the Employee’s Separation from Service with the Company, or (ii) the date of the Employee’s
death (the “409A Suspension Period”).

 

(c) The determination
of whether the Severance Benefit constitutes “nonqualified deferred compensation” within the meaning of Section 409A
shall be made by the Company in good faith. If the Company determines that such Severance Benefit is subject to the 409A Suspension
Period, and the Employee does not believe that such determination is reasonable, then the Company and the Employee shall mutually
select, at the Company’s expense, an independent outside counsel to render a legal opinion regarding the applicability of
the 409A Suspension Period. If the outside counsel described in the preceding sentence agrees with the Company’s determination
that any items due to the Employee under this agreement should be subject to the 409A Suspension Period, then such payment shall
be made at the end of the 409A Suspension Period as set forth in Section 17(b) hereof; provided however, if such outside counsel
determines that such payment shall not be subject to the 409A Suspension Period, then such payment shall be effected within fourteen
(14) days of the date of such counsel’s determination.

 

    9

     

    

 

IN WITNESS WHEREOF,
the Employee has executed this Fifth Amended and Restated Employment Agreement, and the Company has cause this Fifth Amended and
Restated Employment Agreement to be executed by its duly authorized representative, as of the date and year first above written.

 

	 	EMPLOYEE
	 	 
	 	/s/ Howard S. Jonas
	 	Howard S. Jonas
	 	 
	 	IDT CORPORATION
	 	 
	 	By:	/s/ Marcelo Fischer
	 	 	Marcelo Fischer
	 	 	Chief Financial Officer

 

 

10

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