Document:

f8k121609a1ex10i_idt.htm

     

    Exhibit 10.01

    
      

       

      AGREEMENT

       

      This
Agreement (the “Agreement”) is made and entered into as of October 21, 2009 (the
“Effective Date”) by and between IDT Corporation (“IDT” or the “Company”) and
James A. Courter (“Executive”) (collectively “the Parties”).

       

      RECITALS

       

      From
April 1, 1999 through October 21, 2009, Executive served as the Chief Executive
Officer of the Company pursuant to an Employment Agreement, dated April 1, 1999,
as amended by amendments dated August 1, 2001, October 22, 2001, May 12, 2005,
January 29, 2007, March 13, 2007, and November 5, 2008 (the “Employment
Agreement”).  On October 21, 2009, the Parties agreed that Executive’s
position as Chief Executive Officer and employment with the Company terminated,
and further agreed that the Employment Agreement would and did immediately
terminate as set forth herein in Paragraph 1.

       

      Beginning
on the Effective Date, in light of his experience, advice and counsel to the
Company, Executive shall serve as the Vice Chairman of the Board of Directors of
the Company (the “Board”) for a term of one year, and for additional one-year
terms at the discretion of the Company, and shall also have the right, for so
long as he continues to own shares of Company stock, to observe meetings of the
Board for a period of no less than ten (10) years, regardless of whether he
continues to serve as the Vice Chairman of the Board during that
period.  Executive shall also serve as Vice Chairman of the board of
directors of the Company’s subsidiary, Genie Energy Corporation (“Genie”), for a
term that shall continue until such time as Executive ceases to engage in the
activities described in Paragraph 4 of this Agreement, or until such time as
Genie is no longer a subsidiary or otherwise owned by the Company.

       

      AGREEMENT
TERMS

       

      In
consideration of the promises and mutual agreements set forth in this Agreement,
the receipt and sufficiency of which are hereby acknowledged by all Parties, the
Company and Executive agree as follows:

       

      1. Termination of Employment
Agreement.  The Parties acknowledge and agree that as of
October 21, 2009, Executive’s position as an officer and employee of the Company
terminated, and that except with respect to the confidentiality provisions
contained in the Employment Agreement and incorporated and referenced in
Paragraph 7 that the Employment Agreement terminated.  Notwithstanding
the foregoing, Executive shall be entitled to payment of all accrued
compensation, unreimbursed expenses and other benefits that are due on or have
accrued through the October 21, 2009 as detailed herein.

       

      2. Exchange of Stock
Options.  Executive acknowledges and agrees that in
consideration of the agreements and covenants expressed in this Agreement, and
in exchange for Executive’s surrender of outstanding options (the “Options”) to
purchase 943,268 shares of Company Class B Common Stock, par value $0.01 per
share (“Class B Stock”), on September 17, 2009 (the “Exchange Date”), the
Company did grant to Executive 281,411 shares of Class B Stock pursuant to a
Restricted Stock Agreement under the Company’s 2005 Stock Option and Incentive
Plan.  As of the Exchange Date, Executive agrees that he forfeits all
rights to and interest in, any unvested stock options, that any such options are
cancelled and terminated, and that any other guarantees, warranties or
agreements with respect to the right of Executive to own, purchase, or acquire
any stock or other ownership interest in the Company, Genie or any other entity
or subsidiary of the Company, whether vested or unvested, are terminated, in
exchange for the grant of Class B Stock provided for herein.  Of the
281,411 shares of Class B Stock granted hereunder, 225,129 shares shall be
convertible into the common equity of Genie in accordance with paragraph 3
below.

       

       

      
        
           

        

        
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      3. Warrant to Convert Company Shares
Into Genie Shares.  The Company shall, pursuant to the warrant
certificate annexed hereto (the “Warrant Instrument”), grant Executive the right
to acquire equity securities in Genie that constitute one percent (1%) of the
fully diluted equity in Genie as of the Effective Date, by surrender of 225,129
shares of Class B Stock (which may be exercised in whole or in part in
accordance with the provisions of the definitive Warrant Instrument) (the “Genie
Warrant”). This warrant shall be exercisable by Executive for a period
commencing on the Effective Date and ending on the fifth anniversary of the
Effective Date.  The Genie Warrant shall not be entitled to any
anti-dilution protection in respect of grants, issuances or sales of equity
interests or interests convertible into or exchangeable for equity interests in
Genie, other than stock splits, stock subdivisions, stock dividends and similar
events.  “Genie” encompasses the Company’s current energy sector
activities, which include the ESCO business and the oil shale exploration and
development business in Colorado and Israel but may in the future include other
energy sector businesses.  In the event, that prior to the fifth
anniversary of the Effective Date, the Company completes any transfer of all or
substantially all of the assets of Genie to a Company-owned entity that is not
Genie or a wholly-owned subsidiary of Genie, which transfer results in a
material reduction in the fully diluted value of Executive’s securities in Genie
as of the day immediately prior to the transfer, the Company shall provide that
the Genie Warrant also entitle Executive to his pro rata share of the equity of
that Company-controlled entity (or provide Executive with the equivalent value
thereof in cash, securities or other rights as agreed upon by the Company and
Executive).  Notwithstanding the foregoing, Executive understands and
agrees that nothing in this Agreement shall preclude, encumber or otherwise
hinder the Company’s ability to sell the Company’s equity in Genie, including
that the continuation of Executive’s service of Vice Chairman of the board of
directors of Genie shall not be a condition of any such
sale.  Executive acknowledges that IDT (directly or through other
entities) may fund Genie’s operational needs and record inter-company
indebtedness in respect of such funding, which indebtedness would be senior to
any equity interests in Genie.

       

      4. Duties
and Responsibilities.

       

      (a)           Executive
agrees and warrants that during the term of this Agreement, including but not
limited to any period in which the Executive serves as the Vice Chairman of the
Board and/or the Vice Chairman of the board of directors of Genie, and for so
long as he continues to receive compensation pursuant to Paragraph 5 hereof, he
shall act on behalf of the Company and Genie, at the direction of Chief
Executive Officer Howard Jonas, or his successor, and shall use his best efforts
in support of the business interests and needs of the Company and
Genie.

       

       

      
        
           

        

        
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      (b)           Executive
further agrees and warrants that the nature of his duties and responsibilities
under this Paragraph shall require him to be available (and ready and willing
upon Company request) to provide services to the Company and Genie for a
combined minimum of ten (10) hours per week for a period of five (5) years
beginning on the Effective Date, and for a minimum of five (5) hours per week
for every year thereafter.

      

      5. Payments.

       

      (a)           In
further consideration of the promises and agreements contained herein, the
Company shall pay to Executive on April 22, 2010, a payment of Two Hundred and
Fifty Thousand Dollars ($250,000).  On October 22, 2010 (the
“Anniversary Date”), the Company shall pay to Executive a payment of Two Hundred
and Fifty Thousand Dollars ($250,000) (the “Anniversary Payment”). The
Anniversary Payment shall continue to be made on each anniversary of the
Anniversary Date throughout Executive’s life time, so long as Executive
continues to be available to provide the services described in Paragraph
4(b). In the event of the Executive’s death, the Anniversary Payments will
continue for an additional two (2) years, payable to Executive’s
estate.  In the event that Executive suffers from a bona fide mental or physical
disability that precludes him from performing the duties described in Paragraph
4(b), the Anniversary Payments shall continue through his natural life and for
two years following his death.  In the event that Executive (i)
voluntarily ceases to provide the services set forth in Section 4(b), (ii)
engages in fraud or willful misconduct with respect to the Company, or
(iii) breaches any material term or obligation of this Agreement or an
obligation which exists by virtue of him serving as Vice Chairman of the Board
of Directors of the Company or Genie (each, a “Cessation of Duties”), Executive
agrees and acknowledges that he will no longer be entitled to payment under this
Paragraph and that any and all other obligations of the Company or Genie shall
terminate immediately upon a Cessation of Duties, including observer
rights.  If in the course of any year a Cessation of Duties occurs,
Executive shall return to the Company the unearned portion of the Anniversary
Payment, the amount of which shall be determined by multiplying the payment by a
fraction, the numerator of which is the number of days remaining until the next
Anniversary Date, and the denominator of which is 365.

       

      (b)           If
the Company determines that there is a Cessation of Duties, Company shall notify
Executive of such determination and Executive shall have thirty (30) days to
cure such Cessation of Duties (the “Notice Period”).  If at the
conclusion of the Notice Period, the Company determines that Executive has
failed to cure the Cessation of Duties, then Executive shall immediately cease
to serve as Vice Chairman of the Boards of the Company and/or Genie, and any and
all future obligations of the Company to Executive, including the duty to make
the payments described in Paragraph 5(a) shall terminate.

      

      (c)           The
Anniversary Payments described in Paragraph 5(a) shall be adjusted once every
five (5) years, beginning on the fifth (5th)
anniversary of the Anniversary Date to reflect a cost of living adjustment equal
to the combined percentage rate of inflation over the proceeding five (5) years,
as reported by the Bureau of Labor Statistics.  Any cost of living
adjustment shall apply to the payment due on the next Anniversary Date and the
next four (4) consecutive Anniversary Payments.

      

      (d)           In
recognition of Executive’s contribution to the Company, the Company shall pay
Executive a special bonus of $542,059.71 less applicable taxes on the Effective
Date. 

       

       

      
        
           

        

        
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      6. Cooperation.  From
and after the Effective Date, Executive agrees to cooperate fully with IDT in
connection with the defense or prosecution of any claims, causes of action,
investigations, hearings, proceedings, arbitrations or other tribunals now in
existence or which may be brought in the future against or on behalf of
IDT.  Executive shall be entitled to reimbursement of all expenses
reasonably incurred in conjunction with his cooperation pursuant to this Section
6, including attorneys fees and expenses so long as he has not breached any
obligations to the Company or Genie either as set forth in this Agreement or
that exist by virtue of his position as Vice Chairman of the Boards of Directors
of the Company and Genie.  If, by virtue of an order or directive
issued by a court of law, Executive’s required cooperation exceeds Executive’s
time commitment provided in Paragraph 4(b), Executive will be entitled to
compensation for his time at a rate mutually agreed by the Parties.

       

      7. Confidentiality of Company
Information.  During the term of this
Agreement and for the remainder of his natural life, Executive shall continue to
abide by IDT’s confidentiality policies and the confidentiality provisions
contained in the Employment Agreement and incorporated by reference
herein.  The Executive will not at any time disclose to anyone,
including, without limitation, any person, firm, corporation, or other entity,
or publish, or use for any purpose, any Confidential Information, except as IDT
directs and authorizes, in writing or pursuant and subject to his obligations as
a Director of IDT or Genie.  The Executive shall take all necessary
measures to protect the secrecy of and avoid disclosure and unauthorized use of
the Confidential Information and agrees to immediately notify IDT in the event
of any unauthorized use or disclosure of the Confidential
Information.  “Confidential Information” includes, without limitation,
all of IDT and Genie’s technical and business information, which is of a
confidential, trade secret or proprietary character; internal policies,
procedures, communications and reports; and other information or documents that
IDT and Genie require to be maintained in confidence for IDT and Genie’s
continued business success.  Confidential Information does not include
any information that is readily available to the public, has been disclosed by
an officer of the Company to a third-party under non-confidential,
non-proprietary conditions, or which upon reasonable investigation is readily
ascertainable in the public domain.

       

      8. Covenant not to
Compete.

       

      (a)           During
the course of this Agreement, and in the event of a Cessation of Duties for a
period of five (5) years thereafter (the “Restricted Period”), Executive shall
not, directly or indirectly, whether acting individually or through any person,
firm, corporation, business or 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 and/or Genie 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 and/or Genie as the same may be conducted from time to
time;

       

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

       

       

      
        
           

        

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

      

      (b)           Notwithstanding
anything to the contrary contained herein, Executive, 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 if, and as long
as, Executive 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)           Executive
acknowledges that the non-competition provisions contained in this Agreement are
reasonable and necessary, in view of the nature of the Company and Genie and his
knowledge thereof, in order to protect the legitimate interest of the Company
and Genie.

      

      9. Release of
Claims.

       

      (a)  Executive
hereby releases, waives, and forever discharges the Company, and its past and
present subsidiaries and affiliates, and each of their present and former
officers, directors, employees, shareholders, consultants, attorneys, advisors,
insurers, agents and representatives, and all persons acting by, through, under
or in concert with any of them (whether any of the aforementioned individuals
were acting as agents for IDT or in their individual capacities) from any and
all claims, demands, actions, causes of action, costs, fees, attorneys’ fees,
and all liability whatsoever, whether known or unknown, fixed or contingent,
which Executive has, had, or may have against the Company from the beginning of
time and up to and including the date of execution of this
Agreement.  This release includes, without limitation, claims at law
or equity or sounding in contract (express or implied, including but not limited
to the Employment Agreements referenced in the Recitals contained herein) or
tort, claims arising under any federal, state, or local laws of any jurisdiction
that prohibit age, sex, race, national origin, color, disability, religion,
veteran, military status, sexual orientation, or any other form of
discrimination, harassment, or retaliation (including, without limitation, the
Age Discrimination in Employment Act, the Older Workers Benefit Protection Act,
the Americans with Disabilities Act, Title VII of the 1964 Civil Rights Act, the
Civil Rights Act of 1991, 42 U.S.C. § 1981, the Rehabilitation Act, the Family
and Medical Leave Act, the Sarbanes-Oxley Act of 2002, any claims under New York
State or local laws, including the New York State Human Rights Law, N.Y. Exec.
L. § 290 et
seq.
("NYSHRL"); and the New York City Human Rights Law, N.Y.C. Admin. Code § 8101
et seq. ("NYCHRL"), the
New Jersey Law Against Discrimination, N.J.S.A. 10:5-1 et seq., New Jersey
Family Leave Act, N.J.S.A. 34:11B-1 et seq., the
Conscientious Employee Protection Action ("CEPA"), NJSA 34:19-1 et seq., and any other
federal, state, local or municipal whistleblower protection or anti-retaliation
statute or ordinance, or any other federal, state, local, or municipal laws of
any jurisdiction), claims arising under the Employee Retirement Income Security
Act, or any other statutory or common law claims related to Executive’s
employment or separation from employment with IDT, any claims for attorneys’
fees, costs and expenses as well as any claims for compensatory, consequential
or punitive damages.  Notwithstanding the foregoing, the provisions of
this Paragraph 9 shall not apply to Executive’s indemnification rights under the
bylaws of the Company and Executive’s rights under this Agreement, or the Stock
Grant Agreement or Warrant Instrument referred to in Paragraphs 2 and 3
hereof.

       

      
        
           

        

        
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      (b) The Company hereby releases,
waives, and forever discharges Executive from any and all claims, demands,
actions, causes of action and claims for attorney fees that the Company has
asserted or could have asserted against Executive based upon any act or omission
by Executive known by the Company from the beginning of time until the date of
execution of this Agreement, provided, however, that none of the acts or
omissions that are known to the Company on or before the Effective Date
constitute an act or omission for which the Company could make a claim or demand
against Executive.  Notwithstanding the foregoing, the Company does
not release Executive from his obligations and the Company's rights under this
Agreement (including all agreements incorporated herein by reference), all of
which such obligations and rights are hereby expressly preserved.

      

      10. Non-Disparagement.

       

      (a)  Executive
agrees that he will not disparage IDT or any individuals associated with IDT,
including its present, future or former officers, directors, agents and
employees, by making or soliciting any comments, statements or the like to the
media or to other third parties, either orally or in writing, that are
considered to be derogatory or detrimental, in any way, to the good name or
business reputation of IDT or such other persons, provided that Executive shall
be entitled to give truthful statements pursuant to legal
process.  Executive further agrees that he will not encourage or
assist others to disparage or bring any form of suit, claim or cause of action
against the parties enumerated in this Paragraph.

       

      (b) The Company agrees that it
will take reasonable steps to prohibit and prevent its executives from
disparaging Executive, by making or soliciting any comments, statements or the
like to the media or to other third parties, either orally or in writing, that
are considered to be derogatory or detrimental, in any way, to the good name or
business reputation of Executive, provided that Company executives shall be
entitled to give truthful statements pursuant to legal process.

      

      11. No Admission of
Liability.  The making of this Agreement and anything contained
herein is not intended, and shall not be construed, as an admission that IDT has
violated any foreign, federal, state or local law (statutory or common law),
ordinance or regulation; breached any contract; or violated any right or
obligation that it may owe or may have owed to Executive, or committed any wrong
whatsoever against Executive.

       

      12. Additional
Benefits.  Subject to continued service on either or both of
the Board and the Genie Board, Executive’s travel on behalf of the Company or
Genie shall be in business class.  As of November 1, 2009, the
Executive was eligible to elect the continuance of group health and dental
insurance in accordance with applicable federal law (“COBRA”).  During
the period that the Executive is eligible for coverage under COBRA, the Company
will reimburse the Executive for such COBRA payments.  After the
Effective Date, the Executive will not otherwise be eligible for Life or
Disability benefits, or continue to contribute to the IDT 401(k) Savings Plan,
and will not receive any other benefits from the Company, other than those
specified in this Agreement.

       

       

      
        
           

        

        
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      13. Access to Office/Support
Services.  So long as Executive continues to serve as the Vice
Chairman of the Boards of Directors of the Company and Genie, the Company shall
provide Executive with an office (existing office absent a company move) in and
access to the Company headquarters, parking, email addresses and telephone
numbers, and provide administrative support services, communications and IT
equipment (mobile phone, BlackBerry, and laptop).

       

      14. Indemnity.  Executive
shall be indemnified by the Company in accordance with the terms of the Bylaws
of the Company and/or Genie.  Executive shall be entitled to payment
of incurred legal expenses by the Company upon certification by Executive that
he is entitled to indemnity, documentation of the legal fees incurred, and an
undertaking guaranteeing repayment to the Company if it is ultimately determined
through the means of Dispute Resolution provided in Paragraph 16(iii) of this
Agreement that Executive was not entitled to indemnity under the Company
Bylaws. The Company shall indemnify Executive for any threatened, pending
or completed action, suit or proceeding, whether civil, criminal, administrative
or investigative by reason of the fact that Executive is or was a director or
officer of the Company, or is or was a director or officer of the Company
serving at the request of the Company as a director, officer, employee or agent
of another corporation, partnership, joint venture, trust, employee benefit plan
or other enterprise against expenses (including attorneys’ fees), judgments,
fines and amounts paid in settlement actually and reasonably incurred by him in
connection with such action, suit or proceeding if he acted in good faith and in
a manner he reasonably believed to be in or not opposed to the best interests of
the Corporation, and, with respect to any criminal action or proceeding, had no
reasonable cause to believe his conduct was unlawful.  The termination
of any action, suit or proceeding by judgment, order, settlement, conviction, or
upon a plea of nolo contendere or its equivalent shall not, of itself, create a
presumption that the Executive did not act in good faith and in a manner which
he reasonably believed to be in or not opposed to the best interests of the
Company, and, with respect to any criminal action or proceeding, had reasonable
cause to believe that his conduct was unlawful.  For purposes of this
paragraph 14, “director or officer of the Company” shall mean a director or
officer of the Company and directors or officers of any corporation,
partnership, joint venture, trust, employee benefit plan or other enterprise of
which the Company owns, directly or indirectly, grater than fifty percent
(50%).  The Executive shall be entitled to advancement of legal
expenses from the Company upon certification by the Executive that he is
entitled to indemnity hereunder and an undertaking if it is ultimately
determined that Executive was not entitled to indemnity hereunder or under the
Company bylaws.

       

      15. Acknowledgment and Revocation
Period.  Executive acknowledges that he has had an opportunity
to be represented and has been represented by independent legal counsel of his
own choice prior to signing this Agreement and that he is of sound mind and
body, competent to enter into this Agreement.  Pursuant to the Older
Workers Benefit Protection Act, Executive is advised that he shall have at least
21 days to consider this Agreement before signing it, but may sign this
Agreement at any earlier time if he so desires.  Executive understands
and acknowledges that he has seven (7) calendar days following the execution of
this Agreement to revoke his acceptance of this Agreement, which revocation may
be accomplished via written notice provided to IDT Corp., 550 Broad Street,
Newark, New Jersey 07102, Attn: General Counsel.  This Agreement will
not become effective or enforceable, until after this revocation period has
expired without Executive’s revocation.

       

       

       

      
        
           

        

        
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      AGREEMENT
TERMS―MISCELLANEOUS AND ENFORCEMENT

       

      16. Miscellaneous Provisions and
Enforcement.

       

      (i)           Notices.  Any notice
or other communication required, permitted or desired to be given under this
Agreement shall be deemed delivered when personally delivered; the next business
day, if delivered by overnight courier; the same day, if transmitted by
facsimile on a business day before noon, Eastern Standard Time; the next
business day, if otherwise transmitted by facsimile; and the third business day
after mailing, if mailed by prepaid certified mail, return receipt requested, as
addressed or transmitted as follows (as applicable):

       

      If to
Executive:

      James A.
Courter

      17101
Captiva Drive

      Captiva
Island, FL  33924

      Fax:
__________

       

      With a
copy to:

       

      Courter,
Kobert & Cohen

      1001 Rt.
517

      Hackettstown,
NJ  07840

      Fax:
__________

       

      If to the
Company:

      IDT
Corp.

      550 Broad
Street

      Newark,
New Jersey 07102

      Attn:  General
Counsel

      Fax:  973-596-0003

       

       (ii)           Choice of Law. THIS AGREEMENT SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW JERSEY
WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS (RULES) OR CHOICE OF LAWS (RULES)
THEREOF.

       

      (iii)           Dispute
Resolution.  Any dispute arising out of or relating to this
Agreement shall be finally determined by arbitration held in the State of New
Jersey in accordance with the employment arbitration rules of the American
Arbitration Association by a neutral arbitrator with no direct or indirect
relationship to either party.  The parties shall endeavor to agree
upon the appointment of the neutral arbitrator.  If they are unable to
appoint a single arbitrator within thirty days of the initiation of the dispute,
then each party shall appoint one arbitrator who shall together appoint a third
arbitrator who shall be the sole arbitrator in the conduct of such
arbitration.  In such arbitration, (a) the arbitrator shall agree to
treat all evidence as confidential; (ii) the arbitrator shall have no authority
to amend or modify any of the terms of this Agreement; (iii) the arbitrator
shall have 10 business days from the closing statements or submission of
post-hearing briefs by the parties to render his or her decision.  The
results of any such arbitration shall be final and binding upon the parties
hereto, and any party may enforce any arbitration 

       

       

      
        
           

        

        
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      award in
any court of competent jurisdiction.  Each Party shall bear its own
costs (including attorneys’ fees and expenses) associated with any arbitration
or other dispute proceedings, provided, however, that the prevailing party in
such arbitration shall be awarded such party’s attorneys fees and expenses
incurred in enforcing this Agreement, and, provided, further, that if the
Company is found to have breached its obligation to make payment as provided in
Paragraph 5 hereof (other than an immaterial failure to comply with such
obligation), then the arbitrator (or panel of arbitrators) shall award Executive
an award equal to 133% of the payment obligation that was breached in addition
to Executive’s attorney’s fees and expenses.  The arbitrator (or panel
of arbitrators) shall be obligated to determine which party is the prevailing
party as a part of his/her/their decision.

       

      (iv)          Limitation on
Counsel.   Executive is precluded from forming an
attorney-client relationship with or being otherwise represented by any law firm
or attorney that has at any time represented the Company in any capacity, unless
the Company has expressly agreed in writing to permit such representation,
provided, however, that the Company consents to Executive forming an
attorney-client relationship with Courter, Kobert & Cohen and with Williams
& Connolly LLP.

       

      (v)           Limitation on
Assignment.  Neither party may assign this Agreement without
the express written consent of the other party, provided, however, that the
Company may assign the Agreement to a successor, and that Executive may assign
the right to receive the payments provided for in Section 5 to a company or
entity that he controls.

       

      (vi)          Waiver.  A party’s
waiver of any breach or violation of any Agreement provisions shall not operate
as, or be construed to be, a waiver of any later breach of the same or other
Agreement provision.

       

      (vii)         Severability.  If
any provision or provisions of this Agreement are held to be invalid, illegal,
or unenforceable for any reason whatsoever, (a) the validity, legality, and
unenforceability of the remaining provisions of this Agreement (including,
without limitation, all portions of any Agreement paragraphs containing any
provision held to be invalid, illegal, or unenforceable, that are not themselves
invalid, illegal, or unenforceable), will not in any way be affected or impaired
thereby, and (b) the provision or provisions held to be invalid, illegal, or
unenforceable will be limited or modified in its or their application to the
minimum extent necessary to avoid the invalidity, illegality, or
unenforceability, and, as so limited or modified, the provision or provisions
and the balance of this Agreement will be enforceable in accordance with their
terms.

       

      (viii)       Headings.  The
Agreement headings are for reference purposes only and will not affect in any
way the meaning or interpretation of this Agreement.

       

      (ix)          Counterparts.  This
Agreement and amendments to it will be in writing and may be executed in
counterparts and by facsimile.  Each counterpart will be deemed an
original, but both counterparts together will constitute one and the same
instrument.

       

      (x)           Reimbursement of Counsel
Fees.   Company agrees to reimburse Executive for legal
counsel fees incurred with respect to the formation of this Agreement, up to Ten
Thousand Dollars ($10,000), upon receipt by the Company of documentation of such
fees.

       

       

      
        
           

        

        
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      (xi)          Entire Agreement, Amendment, Binding
Effect. This
Agreement, together with the Stock Grant Agreement and Warrant Instrument
referenced in Paragraphs 2 and 3 hereof, constitute the entire agreement between
the Parties concerning the subject matter in this Agreement.  No oral
statements or prior written material not specifically incorporated in this
Agreement shall be of any force and effect, and no changes in or additions to
this Agreement shall be recognized, unless incorporated in this Agreement by
written amendment, such amendment to become effective on the date stipulated in
it.  Any amendment to this Agreement must be signed by all parties to
this Agreement.  This Agreement will be binding on and inure to the
benefit of the Parties hereto and their respective successors, heirs, legal
representatives, and permitted assigns (if any), except as agreed to by
Executive in Paragraph 3.  This Agreement supersedes any prior
agreements between Executive and IDT concerning the subject matter of this
Agreement.

       

      

      IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date and
year first written above.

      

       

      
        	
                EXECUTIVE

                 

                /s/ James A. Courter 

              	 	
                IDT
      CORPORATION

                 

                 

              	 
	      
                James
      A. Courter

              	 	      
                By:  Bill
      Pereira

                Its:  Chief
      Financial Officer

              	 

      

      

       

       

       

       

       

      10f8k121609a1ex10ii_idt.htm

     

     

    
      Exhibit 10.02

      

      THIS
WARRANT AND THE SHARES ISSUABLE ON EXERCISE HEREOF HAVE NOT BEEN REGISTERED
UNDER THE FEDERAL SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR
ANY STATE SECURITIES LAW. THE WARRANT HAS BEEN ACQUIRED FOR INVESTMENT AND
NEITHER THIS WARRANT NOR ANY SHARES ISSUABLE ON EXERCISE HEREOF MAY BE
TRANSFERRED, SOLD OR OFFERED FOR SALE, IN WHOLE OR IN PART, UNLESS (1) THERE IS
AN EFFECTIVE REGISTRATION STATEMENT FOR SUCH SECURITY UNDER THE SECURITIES ACT
AND QUALIFICATION UNDER ANY APPLICABLE STATE SECURITIES LAW, (2) SUCH TRANSFER
IS MADE IN COMPLIANCE WITH RULE 144 UNDER THE SECURITIES ACT AND PURSUANT TO
QUALIFICATION UNDER ANY APPLICABLE STATE SECURITIES LAW OR EXEMPTION THEREFROM,
OR (3) THERE IS AN OPINION OF COUNSEL SATISFACTORY TO IDT OR THE COMPANY, AS
APPLICABLE, THAT SUCH REGISTRATION AND QUALIFICATION ARE NOT REQUIRED AS TO SAID
TRANSFER, SALE OR OFFER.

      

      WARRANT
TO PURCHASE COMMON STOCK

       

      OF

       

      GENIE
ENERGY CORPORATION

       

      EXERCISABLE
COMMENCING ON OCTOBER 21, 2009 AND ENDING ON THE EXPIRATION DATE

       

      By
issuance of this Warrant  to purchase common stock of Genie Energy
Corporation, a Delaware corporation (the “Company”), IDT Corporation, a
Delaware corporation (“Grantor” or “IDT”), certifies, for value
received, that James Courter (“Warrantholder”) is, subject to
and in accordance with the terms and conditions herein set forth, the registered
holder of a warrant to purchase up to one thousand (1,000) shares (as adjusted
from time to time in accordance with this Warrant) (the “Warrant Shares”), of the
Company’s common stock, $0.01 par value (“Common Stock”), with the
exercise price (such exercise price per share as adjusted from time to time
being referred to herein as the “Exercise Price”), determined
as provided hereinafter to be paid in shares of Class B common stock, par value
$0.01 per share, of IDT (“IDT
Class B”) or any other shares of IDT or a successor entity into which
Class B common stock shall be exchanged (“Stock Consideration”), at any
time prior to the Expiration Date (as defined in Section 1) at the Grantor’s
principal executive office, with the appropriate form of Notice of Exercise set
forth herein, duly executed and by surrendering shares of Stock Consideration in
payment of the full the Exercise Price, plus transfer taxes, if any, payable by
Warrantholder in accordance with Section 5, in the manner set
forth in Section
1.

       

      1.           Exercise;
Expiration and Termination.

       

      1.1           Subject
to adjustment pursuant to Section 3, the initial
Exercise Price shall be 225.13 shares of IDT Class B per Warrant
Share.

       

       

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

       

      1.2.           This
Warrant may be exercised from time to time, in whole or in part, at the
Grantor’s principal executive office from October 21, 2009 until 5:00 p.m.,
Eastern time, on October 21, 2014 (the “Expiration Date”), by
delivering a duly completed and executed Notice of Exercise in the form attached
hereto (indicating the number of the Warrant Shares to be purchased) and
surrendering the applicable number of shares of Stock Consideration with a stock
power therefor duly executed in blank, plus payment of transfer taxes, if any,
payable by Warrantholder in accordance with Section 5.

       

      1.3           Effective Date of
Exercise.  This Warrant will be deemed to have been exercised
immediately prior to the close of business on the date of its surrender for
exercise as provided above.  The person entitled to receive the shares
of Common Stock issuable upon exercise of this Warrant will be treated for all
purposes as the holder of record of such shares as of the close of business on
the date the Warrantholder is deemed to have exercised this
Warrant.

       

      2.           Issuance
of Share Certificates.  Upon surrender of this Warrant,
delivery of a duly completed and executed form of Notice of Exercise, surrender
of the applicable Stock Consideration along with a stock power therefor duly
executed in blank, IDT shall execute a stock power transferring to the
Warrantholder the appropriate number of Warrant Shares and request that the
Company issue one or more certificates representing such Warrant Shares (“Share Certificates”) in the name of
the tendering Warrantholder or its designee and deliver the Share Certificates
to the tendering Warrantholder or its designee.  In case of any
partial exercise of this Warrant, IDT will cancel this Warrant upon surrender
hereof and will execute and deliver a new Warrant of like tenor and date for the
balance of the Warrant Shares purchasable hereunder.  If the
securities of the Company deliverable upon exercise of this Warrant have not
been registered for resale under the 1933 Act, any Share Certificate delivered
shall bear appropriate private placement legends thereon, including, without
limitation, a legend in substantially the following form:

       

      “THESE
SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE, AND ARE BEING
OFFERED AND SOLD PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF
THE SECURITIES ACT AND SUCH LAWS. THESE SECURITIES MAY NOT BE SOLD OR
TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT OR SUCH OTHER LAWS.”

      

      3.            Adjustments
to Exercise Price and Number of Warrant Shares.  The Exercise
Price, the nature of the Stock Consideration and the number of Warrant Shares
purchasable upon the exercise of this Warrant are subject to adjustment from
time to time upon the occurrence of the events specified in this Section 3.

       

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

       

      3.1           Adjustments
for Stock Splits and Combinations of the Warrant Shares.  If,
while any portion of this Warrant is outstanding, the Company effects a
subdivision of the outstanding Common Stock (or other securities issuable upon
exercise hereof) the Exercise Price then in effect shall be proportionately
decreased and the number of Warrant Shares issuable upon exercise of this
Warrant shall be increased in proportion to such increase of outstanding Common
Stock, and conversely, if, while this Warrant is outstanding, the Company
combines the outstanding Common Stock, the Exercise Price then in effect shall
be proportionately increased and the number of Warrant Shares issuable upon
exercise of this Warrant shall be decreased in proportion to such decrease in
outstanding Common Stock.  Any adjustment under this Section 3.1 shall become
effective as of the record date for such event and if such subdivision or
combination is not consummated in full the Exercise Price and the number of
Warrant Shares shall be readjusted accordingly.  For purposes of this
Section 3.1, a stock
dividend shall be considered a stock split.

       

      3.2           Adjustment
for Reclassification, Exchange and Substitution of the Warrant Shares. If
the Warrant Shares issuable upon exercise of this Warrant are changed into the
same or a different number of shares of the same or any other class or classes
of stock, whether by reclassification or otherwise (other than a subdivision or
combination of shares provided for in Section 3.1 or a capital
reorganization, merger or consolidation provided for in Section 3.3), or if all or any
portion of the class of securities then purchasable by this Warrant are redeemed
or cease to exist, then and in any such event the Warrantholder shall have the
right thereafter, upon exercise of this Warrant, to receive in lieu of Warrant
Shares the kind and amount of stock and other securities or property receivable
upon such reclassification or other change, in an amount equal to the amount
that the Warrantholder would have been entitled to had this Warrant been
exercised to such extent prior to such event, and the Exercise Price shall be
proportionally adjusted, all subject to further adjustment as set forth
herein.

       

      3.3           Adjustment
for Capital Reorganization, Merger or Consolidation involving the
Company.  In case of any capital reorganization of the capital
stock of the Company (other than a combination, reclassification, exchange or
subdivision of shares otherwise provided for herein), or any merger or
consolidation of the Company with or into another person or entity, or the sale
of all or substantially all the assets of the Company then, and in each such
case, as a part of such reorganization, merger, consolidation, sale or transfer,
lawful provision will be made so that the holder of this Warrant will thereafter
be entitled to receive upon exercise of this Warrant, during the period
specified herein and upon payment of the Exercise Price then in effect, the
number of shares of stock or other securities or property of the successor
person or entity resulting from such reorganization, merger, consolidation, sale
or transfer that a holder of the shares deliverable upon exercise of this
Warrant would have been entitled to 

       

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

       

      receive
in such reorganization, consolidation, merger, sale or transfer if this Warrant
had been exercised immediately before such reorganization, merger,
consolidation, sale or transfer, all subject to further adjustment as provided
in this Section
3.  The foregoing provisions of this Section 3.3 will similarly
apply to successive reorganizations, consolidations, mergers, sales and
transfers and to the stock or securities of any other person or entity that are
at the time receivable upon the exercise of this Warrant.  If the
per-share consideration payable to the holder hereof for shares in connection
with any such transaction is in a form other than cash or marketable securities,
then the value of such consideration will be determined reasonably and in good
faith by IDT’s Board of Directors.  In all events, appropriate
adjustment (as determined reasonably and in good faith by IDT’s Board of
Directors) will be made in the application of the provisions of this Warrant
with respect to the rights and interests of the Warrantholder after the
transaction, to the end that the provisions of this Warrant will be applicable
after that event, as near as reasonably may be, in relation to any shares or
other property deliverable after that event upon exercise of this
Warrant.

       

      3.4           Adjustments
for Stock Splits and Combinations of the Stock
Consideration.  If, while any portion of this Warrant is
outstanding, IDT (or any successor in its capacity as Grantor) effects a
subdivision of the outstanding class of securities then constituting the Stock
Consideration, the Exercise Price then in effect shall be proportionately
increased in proportion to such increase of such class of securities, and
conversely, if, while this Warrant is outstanding, IDT (or any successor in its
capacity as Grantor) combines the outstanding class of securities then
constituting the Stock Consideration, the Exercise Price then in effect shall be
proportionately decreased in proportion to such decrease in such class of
securities.  Any adjustment under this Section 3.4 shall become
effective as of the record date for such event and if such subdivision or
combination is not consummated in full the Exercise Price shall be readjusted
accordingly.  For purposes of this Section 3.4, a stock dividend
shall be considered a stock split.

       

      3.5           Adjustment
for Capital Reorganization, Merger or Consolidation involving
IDT.  In case of any capital reorganization of the capital
stock of IDT (other than a combination, reclassification, exchange or
subdivision of shares otherwise provided for herein), or any merger or
consolidation of IDT with or into another person or entity, then, and in each
such case, as a part of such reorganization, merger, consolidation, sale or
transfer, lawful provision will be made so that the holder of this Warrant will
thereafter be entitled to exercise this Warrant by payment or surrender of those
securities or other property received in consideration for the securities that
constituted the Stock Consideration at the time of such event, the terms Stock
Consideration and Exercise shall be appropriately adjusted, any other
corresponding provisions hereof shall be similarly amended and the successor to
IDT shall assume such obligation in connection with such
transaction.  The foregoing provisions of this Section 3.5 will similarly
apply to successive reorganizations, consolidations, mergers, sales and
transfers.  In all events, appropriate adjustment will be made in the
application of the provisions of this Warrant with respect to the rights and
interests of the Warrantholder after the transaction, to the end that the
provisions of this Warrant will be applicable after that event, as near as
reasonably may be, in relation to any shares or other property deliverable after
that event upon exercise of this Warrant.

       

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

       

       

      3.6           Determination
of Adjustment.  Any determination as to whether an adjustment
is required to be made under Section 3 to (i) the Exercise
Price in effect hereunder, (ii) the number of Warrant Shares issuable upon
exercise of this Warrant, or (iii) as to the amount of any such adjustment
described in clauses (i) or (ii) of this Section 3.6, shall be binding
upon the Warrantholder and IDT if made in good faith by IDT’s Board of
Directors.

       

      4.           Mutilated
or Missing Warrant.  If this Warrant shall be mutilated, lost,
stolen or destroyed, IDT shall issue and deliver, in exchange and substitution
for and upon cancellation of the mutilated Warrant, or in lieu of and
substitution for the lost, stolen or destroyed Warrant, a new warrant of like
tenor, but only upon receipt of evidence reasonably satisfactory to IDT of such
loss, theft or destruction of this Warrant and an indemnity, if requested,
reasonably satisfactory to IDT.  The applicant shall also comply with
such other reasonable regulations and pay such other reasonable administrative
charges as IDT may prescribe.

       

      5.           Payment
of Taxes.  IDT will pay all documentary stamp taxes
attributable to the transfer of Common Stock upon the exercise of this Warrant;
provided, however, that IDT
shall not be required to pay any tax or other charges that may be payable in
respect of any transfer involved in the transfer of any securities to, or
delivery of any Share Certificates in a name other than that of the
Warrantholder of record.

       

      6.           Restrictions
on Transfer.  By accepting this
Warrant, Warrantholder acknowledges that Warrantholder has been advised by IDT
that neither this Warrant nor any Common Stock which may be upon exercise hereof
have been registered under the Securities Act, that the Warrant is being issued
and the Common Stock may be issued on the basis of the statutory exemption
provided by Section 4(2) of the Securities Act or Regulation D promulgated
thereunder, or both, relating to transactions by an issuer not involving any
public offering, and that IDT’s and the Company’s reliance thereon is based in
part upon representations made by Warrantholder.  Warrantholder
acknowledges that Warrantholder has been informed by IDT of, or is otherwise
familiar with, the nature of the limitations imposed by the Securities Act and
the rules and regulations thereunder on the transfer of securities.

       

      7.           No Rights
as a Shareholder.  Nothing contained herein shall be construed
as conferring upon the Warrantholder prior to exercise of this Warrant any
rights whatsoever as a shareholder of the Company, including the right to vote,
to receive dividends, to consent or to receive notices as a shareholder in
respect of any meeting of shareholders for the election of directors of the
Company or any other matter.

       

      8.           Notice.  Any
notice or other communication hereunder must be given in writing and shall be
deemed to have been given for all purposes (a) upon personal delivery, (b) one
business day after being sent, when sent by professional overnight courier
service from and to locations within the continental United States, or (c) five
days after posting when sent by registered or certified mail (return receipt
requested), addressed to IDT or the Warrantholder as follows:

       

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

       

       

      If
to Warrantholder, addressed to:

      _____________________________

      _____________________________

      _____________________________

      Attn:
_________________________

      Facsimile
No:  _________________

       

      If
to IDT, addressed to:

      

      IDT
Corporation

      520 Broad
Street

      Newark,
New Jersey

      Attention:
Legal Department

      Facsimile
No.: 973-596-0003

      

      

      9.       
    Supplements
and Amendments.  Neither this Warrant nor any term hereof may
be changed or waived except pursuant to an instrument in writing signed by the
party against which enforcement of the change or waiver is sought.

       

      10.      
  Successors.  All
the representations, warranties, agreements, covenants and provisions of this
Warrant by or for the benefit of IDT or the Warrantholder shall bind and inure
to the benefit of their respective permitted successors and assigns
hereunder.

       

      11.      
  Governing
Law.  This Warrant shall be governed by and construed in
accordance with the laws of the State of New Jersey, excluding any conflicts or
choice of law rules or principles that might refer to the governance or
construction of this Warrant by the law of another jurisdiction.  If
any provisions of this Warrant shall be unenforceable or invalid, the same shall
not affect the remaining provisions of this Warrant and, to this end, the
provisions of this Warrant are intended to be and shall be
severable.

      

      12.       
 Jurisdiction
and Venue. ANY
ACTION OR PROCEEDING IN CONNECTION WITH THIS WARRANT SHALL BE BROUGHT IN A COURT
OF RECORD OF THE STATE OF NEW JERSEY IN THE COUNTY OF ESSEX.  THE
PARTIES TO THIS WARRANT HEREBY CONSENT TO THE EXCLUSIVE JURISDICTION OF SUCH
COURTS OF THE STATE OF NEW JERSEY, AND SERVICE OF PROCESS MAY BE MADE UPON THE
PARTIES TO THIS AGREEMENT BY MAILING A COPY OF THE SUMMONS AND ANY COMPLAINT TO
SUCH PERSON, BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, AT THE
ADDRESS SET FORTH FOR THE PROVISION OF NOTICE HEREIN.  BY ACCEPTANCE
HEREOF, THE PARTIES HERETO EACH HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES
ANY OBJECTION, INCLUDING, WITHOUT LIMITATION, ANY OBJECTION TO THE LAYING OF
VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS,
WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OR MAINTAINING OF ANY SUCH
ACTION OR PROCEEDING IN SUCH JURISDICTION.

       

       

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

       

      
 

      13.           Benefits
of This Warrant.  Nothing in this Warrant shall be construed to
give to any person or entity other than IDT and the Warrantholder any legal or
equitable right, remedy or claim under this Warrant; and this Warrant shall be
for the sole and exclusive benefit of IDT and the Warrantholder.

       

      14.           Invalidity
of Provisions.  If any provision of this Warrant is or becomes
invalid, illegal or unenforceable in any respect, such provision shall be deemed
amended to the extent necessary to cause it to express the intent of the parties
to the maximum possible extent and be valid, legal and
enforceable.  The invalidity or deemed amendment of such provision
shall not affect the validity, legality or enforceability of any other provision
hereof.

       

      15.           Section
Headings.  The section headings contained in this Warrant are
for  convenience only and shall be without substantive meaning or
content.

       

       

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

       

      
 

       

      IN WITNESS WHEREOF, IDT has
caused this Warrant to be duly executed as of the day and year first above
written.

       

       

                                                            IDT
CORPORATION

       

                                                            By:           /s/ Abilio
Pereira                                       

                                                            Name:      Abilio
Pereira                   
                        

                                                            Title:        CFO,
IDT                                                  

       

       

       

      ACCEPTED
AND AGREED TO:

      

      

      /s/James
Courter                             

      James
Courter

       

       

       

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

      
 

      NOTICE OF
EXERCISE

       

      (To
be executed upon exercise of Warrant)

      

      The
undersigned hereby irrevocably elects to exercise the right of purchase
represented by the within Warrant Certificate for, and to purchase thereunder,
_____________ shares of Common Stock of Genie Energy Corporation, as provided
for therein, and in payment of the Exercise Price thereof, hereby tenders and
transfers ______________ shares of Class B common stock of IDT
Corporation.

      

      Please
issue a certificate or certificates for such securities in the name of (please
print name, address and social security number):

      

      Name:                      ____________________________________

      Address:                 ____________________________________

       

      

       

      Warrantholder:

       

      _____________________________________

      Print
name

       

      _____________________________________                                                                           Executed
as of ____________, ____.

      Signature

      (Signature
must conform in all respects to name of holder as specified on the face of the
Warrant tendered with this Notice of Exercise.)

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