Document:

Unassociated Document

Exhibit 10.2

 

THIS IS THE FORM OF THE TRANSITION SERVICES AGREEMENT THAT IS INTENDED TO BE 

ENTERED INTO BETWEEN STRAIGHT PATH COMMUNICATIONS INC. AND IDT CORPORATION, 

EFFECTIVE AS OF THE CONSUMMATION OF THE SPIN-OFF

 

TRANSITION SERVICES AGREEMENT

 

THIS TRANSITION SERVICES AGREEMENT, dated as of [___________], 2013 (this “Agreement”), is entered into by and between Straight Path Communications Inc., a Delaware corporation (“SPCI”), and IDT Corporation, a Delaware corporation (“IDT”). For purposes of this Agreement, “Party” or “Parties” shall mean either SPCI or IDT, individually or collectively.

 

BACKGROUND

 

WHEREAS, IDT is executing a spin-off of SPCI, a wholly-owned subsidiary, to its stockholders, and has agreed to provide certain corporate, tax and accounting support, administrative and other services to SPCI on the terms and conditions set forth herein.

 

NOW THEREFORE, in consideration of the foregoing, the mutual agreements contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto hereby agree as follows:

 

AGREEMENT

 

1. Representations and Warranties.

 

As an inducement to enter into this Agreement, SPCI and IDT each hereby represents and warrants to the other as follows:

 

(a) It is an entity duly organized, validly existing and in good standing under the laws of the state of Delaware.  Such Party has all necessary corporate power and authority to enter into this Agreement, to carry out its obligations hereunder and to consummate the transactions contemplated hereby.  The execution and delivery by such Party of this Agreement, the performance by such Party of its obligations hereunder and the consummation by such Party of the transactions contemplated hereby have been duly authorized by all requisite corporate action on the part of such Party.

 

(b) The execution and delivery by such Party of this Agreement, the performance by such Party of its obligations hereunder and the consummation by such Party of the transactions contemplated hereby do not and will not (i) violate, conflict with or result in the breach of any provision of the certificate of incorporation or bylaws of such Party, (ii) conflict with or violate any law or governmental order applicable to such Party, or (iii) conflict with, or result in any breach of, constitute a default (or event which, with the giving of notice or lapse of time, or both, would become a default) under, require any consent under, or give to others any rights of termination, amendment, acceleration, suspension, revocation or cancellation of, any note, bond, mortgage or indenture, contract, agreement, lease, sublease, license, permit, franchise or other instrument or arrangement to which such Party is a party, which would adversely affect the ability of such Party to carry out its obligations under, and to consummate the transactions contemplated by, this Agreement.

 

2. Provision and Term of Services; Termination.

 

(a) IDT agrees to provide, themselves or via one or more of its affiliates, to SPCI the services (collectively, the “Services”) as set forth on each Schedule A that is appended hereto from time to time.  The Services shall be provided in accordance with the terms and provisions of this Agreement and the applicable Schedule A.  

(b) IDT shall, and where appropriate shall ensure that any officer, employee, agent or sub-contractor providing Services on behalf of IDT shall, use reasonable care, skill and diligence in providing the Services.

 

  

 

  

 

THIS IS THE FORM OF THE TRANSITION SERVICES AGREEMENT THAT IS INTENDED TO BE 

ENTERED INTO BETWEEN STRAIGHT PATH COMMUNICATIONS INC. AND IDT CORPORATION, 

EFFECTIVE AS OF THE CONSUMMATION OF THE SPIN-OFF

 

(c) IDT shall maintain accurate records and accounts of all transactions relating to the Services performed by it pursuant to this Agreement.  Such records and accounts shall be maintained separately from IDT’s own records and accounts and shall reflect such information as would normally be examined by an independent accountant in performing a complete audit pursuant to U.S. generally accepted auditing standards for the purpose of certifying financial statements, and to permit verification thereof by governmental agencies.  SPCI shall have the right to inspect and copy, upon reasonable notice and at reasonable intervals during IDT’s regular office hours, the separate records and accounts maintained by IDT relating to the Services.

 

(d) All of the Services shall be provided during the term of this Agreement.  The term of this Agreement shall commence on the date hereof and continue for one hundred and eighty (180) days, unless extended or terminated earlier on agreement of the parties.  Except as may be expressly set forth in a specific Schedule A to the contrary any Service being provided hereunder may be terminated by either Party, upon not less than thirty (30) days’ prior written notice provided  that there are no break-up costs (including reasonable commitments made to or in respect of personnel or third parties due to the requirement to provide the Services and prepaid expenses related to the Services, or costs related to terminating such commitments) incurred by IDT as a result of such termination unless SPCI agrees to be solely responsible for such costs.

  

(e) In the event of a termination of this Agreement, all outstanding sums due hereunder shall be paid immediately following the date of termination and any rights or obligations to which any of the Parties may be entitled or be subject prior to its termination shall remain in full force and effect. IDT shall cooperate fully in the transition back to SPCI of any and all matters related to the terminated Services such that SPCI shall not be prejudiced by such termination (but IDT shall not be required to bear any out-of-pocket costs for such transition).

 

3. Compensation for Services.

 

(a) SPCI shall pay IDT for the Services in accordance with the fee schedule or fee structure or calculation methodology set forth on an applicable Schedule A.

 

(b) Unless otherwise specified on a Schedule A, such fees shall be paid by SPCI within thirty (30) days of the delivery of an appropriate invoice related thereto (which, unless otherwise provided for in a Schedule A, shall be issued no more frequently than monthly).  Such invoice must comply with all applicable tax requirements and separately describe the amount for fees, expenses and value added tax, if any.  Failure to provide an invoice for fees for any given month shall not be deemed a waiver of such fees, and such fees may be included, without prejudice, in a later invoice delivered to SPCI.

 

(c) If not specified on the applicable Schedule A, the fees payable for a specific Service shall be equal to the actual costs of IDT in providing such Service, including a reasonable and good faith allocation of overhead expenses of IDT, which shall include an implied profit margin thereon not to exceed three percent (3%).  Upon request of SPCI, IDT shall deliver to SPCI such reasonable information and supporting documentation with respect to such overhead allocation.

 

(d) Unless otherwise specified on a Schedule A, SPCI shall reimburse IDT for third-party, out-of-pocket, incidental travel, lodging and food expenses incurred by IDT in providing the Services in accordance with IDT’s customary travel policy.  Such reimbursement shall be within thirty (30) days of receipt of an invoice from IDT for such incidental expenses accompanied by such additional documentation reasonably required by SPCI to verify the amount of the expense and that such expense was incurred in connection with providing the Services.

 

(e) All amounts payable by SPCI to IDT shall be paid by wire transfer in accordance with the wire transfer instructions provided by IDT to SPCI from time to time.

  

  

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THIS IS THE FORM OF THE TRANSITION SERVICES AGREEMENT THAT IS INTENDED TO BE 

ENTERED INTO BETWEEN STRAIGHT PATH COMMUNICATIONS INC. AND IDT CORPORATION, 

EFFECTIVE AS OF THE CONSUMMATION OF THE SPIN-OFF

 

4. Force Majeure.

  

The obligation of IDT to provide Services shall be suspended during the period and to the extent that IDT is prevented or hindered from complying therewith by any law or governmental order, rule, regulation or direction, whether domestic or foreign, or by any cause beyond the reasonable control of IDT, including, but not limited to, acts of nature, strikes, lock outs and other labor and industrial disputes and disturbances, civil disturbances, accidents, acts of terrorism, acts of war or conditions arising out of or attributable to war (whether declared or undeclared), shortage of necessary equipment, materials or labor, or restrictions thereon or limitations upon the use thereof, and delays in transportation.  In such event, IDT shall give notice of suspension as soon as reasonably practicable to SPCI stating the date and extent of such suspension and the cause thereof and IDT’s best estimate of the date on which it will be able to resume the performance of its obligations.  In addition, IDT will use commercially reasonable efforts during any such suspension to keep SPCI informed as to the progress of removal of the cause of such suspension.  IDT shall resume the performance of such obligations as soon as reasonably practicable after the removal of the cause and IDT shall so notify SPCI.  SPCI shall not be liable for payment of fees for any Service for the period in which such Service could not be provided pursuant to this Section 4.

 

5. Compliance with Law.

 

IDT shall undertake to provide Services in accordance with and adhere to all laws and governmental rules, regulations and orders applicable at the place where Services are rendered, including without limitation, data protection regulations.

 

6. Confidentiality.

 

(a) Each Party agrees to hold in confidence, and to use reasonable efforts to cause its employees, representatives and affiliates performing Services to hold in confidence (at least to the extent that such Party keeps its own confidential information in confidence, but in no event less than commercially reasonable given the nature of the confidential information), all confidential information concerning the other Party and its affiliates furnished to or obtained by such Party in the course of providing the Services (except to the extent that such information has been (i) in the public domain through no fault of such Party or (ii) lawfully acquired on a non-confidential basis by such Party from sources other than SPCI); and shall not disclose or release any such confidential information to any person, except its employees, representatives and agents who have a need to know such information in connection with such Party’s performance under this Agreement, unless (A) such disclosure or release is compelled by the judicial or administrative process or (B) in the opinion of counsel to IDT, such disclosure or release is necessary pursuant to requirements of law or the requirements of any governmental entity including, without limitation, disclosure requirements under the Securities Act of 1933 or the Securities Exchange Act of 1934, in each case as amended.

 

(b) Each Party shall supervise its personnel and establish systems to assure that SPCI’s information is made available to such Party’s employees on an “as needed” basis only.  Each Party shall use such information only for purposes of providing the Services and for no other purpose.  In particular, the department of a Party providing the Services shall in no way make any information concerning SPCI available to any other management or operational department or division of such Party or to personnel associated with such divisions or departments except to the extent approved in writing by the other Party.

 

  

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THIS IS THE FORM OF THE TRANSITION SERVICES AGREEMENT THAT IS INTENDED TO BE 

ENTERED INTO BETWEEN STRAIGHT PATH COMMUNICATIONS INC. AND IDT CORPORATION, 

EFFECTIVE AS OF THE CONSUMMATION OF THE SPIN-OFF

 

7. Indemnification.   

(a) SPCI and its affiliates, officers, directors, employees, agents, successors and assigns shall be indemnified and held harmless by IDT for and against any and all liabilities, losses, diminution in value, damages (excluding special, incidental, punitive, indirect and consequential damages), claims, costs and expenses, interest, awards, judgments and penalties (including attorneys’ and consultants’ fees and expenses) actually suffered or incurred by them (including any action brought or otherwise initiated by any of them), arising out of or resulting from:

 

(i) the breach of any representation or warranty made by IDT contained in this Agreement;

 

(ii) the breach of any covenant or agreement by IDT contained in this Agreement;

 

(iii) the gross negligence, fraud, willful defaults or willful misconduct of IDT or any of its affiliates; and

 

(iv) the enforcement of the indemnification rights of SPCI and its affiliates provided for in this Agreement.

 

(b) IDT and its affiliates, officers, directors, employees, agents, successors and assigns shall be indemnified and held harmless by SPCI for and against any and all liabilities, losses, diminution in value, damages (excluding special, incidental, punitive, indirect and consequential damages), claims, costs and expenses, interest, awards, judgments and penalties (including attorneys’ and consultants’ fees and expenses) actually suffered or incurred by them (including any action brought or otherwise initiated by any of them), arising out of or resulting from:

 

(i) the breach of any representation or warranty made by SPCI contained in this Agreement;

 

(ii) the breach of any covenant or agreement by SPCI contained in this Agreement;

 

(iii) the gross negligence, fraud, willful defaults or willful misconduct of SPCI; and

(iv) the enforcement of the indemnification rights of IDT and its affiliates provided for in this Agreement.

  

8. Liability.

 

IDT (or affiliate thereof) shall not have any liability whatsoever to SPCI or any other Party for any error, act or omission in connection with the Services to be rendered by IDT to SPCI hereunder in excess of the Liability Limitation, unless any such error, act or omission derives from the willful misconduct or gross negligence of IDT (or its affiliates).  IN NO EVENT SHALL PROVIDER (OR AFFILIATE THEREOF) BE LIABLE TO RECIPIENT OR ANY OTHER PARTY FOR ANY SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES (INCLUDING, WITHOUT LIMITATION, LOSS OF PROFITS, REVENUES OR DATA), WHETHER BASED ON BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE) OR OTHERWISE, WHETHER OR NOT PROVIDER HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.  THE LIABILITY OF A PROVIDER (AND ITS AFFILIATES) FOR DAMAGES OR ALLEGED DAMAGES HEREUNDER, WHETHER IN CONTRACT, TORT OR ANY OTHER LEGAL THEORY, IS LIMITED TO, AND WILL NOT EXCEED, RECIPIENT’S DIRECT DAMAGES. EXCEPT AS EXPRESSLY PROVIDED HEREIN, THE PARTIES DISCLAIM ALL WARRANTIES WITH RESPECT TO THE SERVICES, INCLUDING ALL WARRANTIES AS TO SUITABILITY OR FITNESS FOR A SPECIFIC PURPOSE.

As used herein, the term “Liability Limitation” shall mean with respect to a Party, (i) all fees for Services received by such Party and its related entities as IDT during the term of this Agreement up to the date on which such determination is made, plus (ii) without duplication, the anticipated fees for Services to be paid to such Party and its related entities during the six (6) month period (starting on the date hereof or a six (6) month or annual anniversary thereof) during which such determination is made. 

 

9. Notices.

 

Any legal notice, demand or other communication required or permitted to be given by any provision of this Agreement (each a “Notice”) shall be in writing and shall be deemed to have been properly given or served only if addressed to a Party at its address set forth on Schedule A attached hereto, and if delivered (i) by hand, (ii) by certified mail, return receipt requested, (iii) by overnight commercial carrier, (iv) by facsimile transmission with confirmation of receipt or (v) by email.  All such communications shall be deemed to have been properly given or served (i) if by hand, when received, (ii) if by mail, on the date of receipt or of refusal to accept shown on the return receipt, (iii) if by overnight commercial carrier, on the date that is one (1) business day after the date upon which the same shall have been delivered to such overnight commercial carrier, addressed to the recipient, with all shipping charges prepaid,  provided  that the same is actually received (or refused) by the recipient in the ordinary course  (iv) if by facsimile, on the date sent with transmission confirmed and (v) if by email, on the date such email is received by such party.

 

  

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THIS IS THE FORM OF THE TRANSITION SERVICES AGREEMENT THAT IS INTENDED TO BE 

ENTERED INTO BETWEEN STRAIGHT PATH COMMUNICATIONS INC. AND IDT CORPORATION, 

EFFECTIVE AS OF THE CONSUMMATION OF THE SPIN-OFF

 

10. No Third Party Beneficiaries.

  

This Agreement shall be binding upon and inure solely to the benefit of the Parties and their permitted successors and assigns, and IDT and SPCI shall be entitled to enforce its respective rights under this Agreement against the other Party.  SPCI may not assign this Agreement without the prior written consent of IDT.

 

11. Governing Law.

 

This Agreement shall be governed by, and construed in accordance with the laws of the state of New Jersey.  The Parties submit to the jurisdiction of any state or federal court sitting in New Jersey for the purpose of any suit, action or proceeding arising out of this Agreement.

 

12. Dispute Resolution.

 

It is the intention of the Parties that IDT shall act in the best interests of SPCI.  If, in the course of providing or arranging for Services hereunder, IDT identifies a conflict of interest that would lead a reasonable person to conclude that IDT cannot act in the best interests of SPCI while also acting in the best interests of IDT, such conflict shall immediately be reported to SPCI so that it may be addressed without prejudice to either Party.

 

SPCI and IDT shall each use good faith efforts to resolve any disputes arising out of this Agreement within fifteen (15) days of receipt of a Party’s written notice of a dispute.  All disputes under this Agreement shall be referred to the Chief Financial Officer or his/her designee of each of IDT and SPCI.  The executives shall meet as required for the purpose of resolving any pending dispute referred to them under this Agreement and shall consider the disputes in the order such disputes are brought before them.  In the event that such executives are unable to resolve a dispute within thirty (30) business days (or such longer period as the executives may mutually determine), they shall submit the matter to binding arbitration according to the rules of the American Arbitration Association for commercial disputes.  The arbitration shall be conducted by one arbitrator, expert in matters relating to commercial law, mutually selected by the Parties. If the Parties fail to mutually agree upon one arbitrator within ten (10) days of submission of the dispute to arbitration, one will be appointed in accordance with the commercial rules and practices of the American Arbitration Association.  Any award, order or judgment pursuant to such arbitration shall be deemed final and binding and may be enforced in any court of competent jurisdiction.  The Parties agree that the arbitrator shall only have the power and authority to make awards and issue orders as expressly permitted herein and shall not, in any event, make any award that provides for punitive damages.  The schedule and rules for the arbitration proceedings shall be as set by the arbitrator and the arbitration proceedings shall be held in Newark, New Jersey. Each Party shall bear its own costs of participating in the arbitration proceedings.

 

13. Entire Agreement.

  

This Agreement and the Schedules hereto sets forth all of the promises, covenants, agreements, conditions, and undertakings between the Parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements and understandings, inducements or conditions, express or implied, oral or written.  The Schedules to this Agreement constitute an integral part of this Agreement.

 

14. Binding.

 

This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns.

 

  

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THIS IS THE FORM OF THE TRANSITION SERVICES AGREEMENT THAT IS INTENDED TO BE 

ENTERED INTO BETWEEN STRAIGHT PATH COMMUNICATIONS INC. AND IDT CORPORATION, 

EFFECTIVE AS OF THE CONSUMMATION OF THE SPIN-OFF

 

15. Waiver.

 

No provision of this Agreement may be waived except by an instrument in writing signed by the Party sought to be charged with the effect of such waiver.  The failure of a Party to this Agreement to assert a right or exercise a remedy hereunder shall not waive such right or remedy or any future rights or remedies.

 

16. Status; Other Activities.

 

(a) For purposes of this Agreement, IDT is, and will be deemed to be, an independent contractor only and not an agent, joint venturer, partner, or representative of SPCI.  Neither IDT nor a SPCI may create any obligations or responsibilities on behalf of or in the name of the other Party.

 

(b) Notwithstanding the amount of time, or percentage of business hours, spent by any employee of IDT in the provision of Services hereunder, no such employee shall, by reason of such provision, become an employee of, or have any direct rights against, SPCI, or be deemed to have any relationship with SPCI other than as a provider of Services hereunder.

 

(c) Nothing in this Agreement shall limit or restrict the right of any Party, or its affiliates, directors, officers or employees to engage in any other business or devote their time and attention in part to the management or other aspects of any other business, whether of a similar nature, or to limit or restrict the right of such parties to engage in any other business or to render services of any kind to any corporation, firm, individual, trust or association.

 

17. Amendment.

 

This Agreement may not be amended or modified except by an instrument in writing signed by the Parties.

 

18. Severability.

  

This Agreement shall be deemed severable, and the invalidity or unenforceability of any term or provision hereof shall not affect the validity or enforceability of this Agreement or of any other term or provision hereof.  Furthermore, in lieu of any such invalid or unenforceable term or provision, the Parties intend that there shall be added as a part of this Agreement a provision as similar in terms to such invalid or unenforceable provision as may be valid and enforceable, so as to effect the original intent of the Parties to the greatest extent possible.

 

19. Counterparts.

 

This Agreement may be executed in one or more counterparts, and by the Parties in separate counterparts, each of which when executed shall be deemed to be an original but all of which taken together shall constitute one and the same agreement.

[The remainder of page intentionally left blank]

  

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THIS IS THE FORM OF THE TRANSITION SERVICES AGREEMENT THAT IS INTENDED TO BE 

ENTERED INTO BETWEEN STRAIGHT PATH COMMUNICATIONS INC. AND IDT CORPORATION, 

EFFECTIVE AS OF THE CONSUMMATION OF THE SPIN-OFF

 

IN WITNESS WHEREOF, the Parties have duly executed this Agreement as of the date first written above.

 

 

	
 
STRAIGHT PATH COMMUNICATIONS INC.

	 
	 	 	 
	By: 	 	 
	 	Name: 
Title:

	 
	 	 	 
	
IDT CORPORATION

	 
	 	 	 
	By: 	 	 
	 	 
Name:

Title:

	 

 

  

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THIS IS THE FORM OF THE TRANSITION SERVICES AGREEMENT THAT IS INTENDED TO BE 

ENTERED INTO BETWEEN STRAIGHT PATH COMMUNICATIONS INC. AND IDT CORPORATION, 

EFFECTIVE AS OF THE CONSUMMATION OF THE SPIN-OFF

 

[FORM OF SCHEDULE A]

 

	
Start Date:

	
[INSERT DATE]

 

	
Term:

	  

 

[Exception to early termination provision:]

Description of Service:[DESCRIBE]. This includes, but is not limited to, the following service elements:

 

	  	
●

	
[INSERT ELEMENTS]

 

Fee (other than allocated cost basis):

 

SPCI Contacts:

[INSERT CONTACTS]

 

Acknowledgement:

 

	
STRAIGHT PATH COMMUNICATIONS INC.

	  	  	  	
IDT COPORATION:

	  	  	  	  	  
	
By:

	  	  	  	  	  	
By: 

	  	  
	  	  	  	  	  
	
Name:

	  	  	  	  	  	
Name:

	  	  
	
Title:

	  	  	  	  	  	
Title:

	  	  

 

 

8Unassociated Document

Exhibit 10.3

 

THIS IS THE FORM OF TAX SEPARATION AGREEMENT THAT IS INTENDED TO BE ENTERED 

INTO BETWEEN STRAIGHT PATH COMMUNICATIONS INC. AND IDT CORPORATION, 

EFFECTIVE AS OF THE CONSUMMATION OF THE SPIN-OFF

 

TAX SEPARATION AGREEMENT

This TAX SEPARATION AGREEMENT (this “Agreement”) is dated as of [____], 2013, by and between IDT Corporation, a Delaware corporation (“IDT”), and Straight Path Communications Inc., a Delaware corporation (“SPCI”; and together with IDT, the “Parties, and each individually, a “Party”).

WHEREAS, as of the date hereof, IDT is the common parent of an affiliated group of domestic corporations within the meaning of Section 1504(a) of the Code, and the members of the affiliated group have heretofore joined in filing consolidated federal income Tax returns (the “Affiliated Group”);

WHEREAS, IDT intends to effect a spinoff of SPCI whereby IDT will distribute to the holders of IDT Common Stock of all of the outstanding shares of SPCI Common Stock held by IDT at the rate of (i) one (1) share of SPCI Class A Common Stock for every five (5) shares of IDT Class A Common Stock and (ii) one (1) share of SPCI Class B Common Stock for every five (5) shares of IDT Class B Common Stock, in the case of shares of IDT Common Stock, each outstanding as of the Record Date (the “Spinoff ”);

WHEREAS, for United States federal income tax purposes, it is intended that the Spinoff will qualify as tax-free under Section 355 of the Code; and

WHEREAS, as a result of the Spinoff, the Parties desire to enter into this Tax Separation Agreement to provide for certain Tax matters, including the assignment of responsibility for the preparation and filing of Tax Returns, the payment of and indemnification for Taxes, entitlement to refunds of Taxes, and the prosecution and defense of any Tax controversies.

NOW, THEREFORE, in consideration of the mutual agreements, provisions and covenants contained in this Agreement, the Parties hereby agree as follows:

ARTICLE I. DEFINITIONS

SECTION 1.1. General. Capitalized terms used in this Agreement and not defined herein shall have the meanings that such terms have in the Separation and Distribution Agreement between the Parties of even date herewith. As used in this Agreement, the following terms shall have the following meanings:

“Affiliated Group” shall have the meaning specified in the preamble.

“Agreement” shall have the meaning specified in the preamble.

 

“Business Day” shall mean a day which is not a Saturday, Sunday or a day on which banks in New York City are authorized or required by law to close.

 

 

 

 

THIS IS THE FORM OF TAX SEPARATION AGREEMENT THAT IS INTENDED TO BE ENTERED 

INTO BETWEEN STRAIGHT PATH COMMUNICATIONS INC. AND IDT CORPORATION, 

EFFECTIVE AS OF THE CONSUMMATION OF THE SPIN-OFF

 

“Closing of the Books Method” shall mean the apportionment of items between portions of a taxable period based on a closing of the books and records on the Distribution Date (as if the Distribution Date was the end of the taxable period), provided that any items not susceptible to such apportionment (such as real or personal property taxes imposed on a periodic basis) shall be apportioned on the basis of elapsed days during the relevant portion of the taxable period.

“Code” shall mean the Internal Revenue Code of 1986, as amended.

“Contribution” shall mean the contribution of the outstanding stock owned by IDT of (i) Straight Path Spectrum, Inc. and (ii) Straight Path IP Group, Inc. to SPCI.

“Combined Group” shall mean a combined, unitary, or consolidated tax group that includes IDT or any of its subsidiaries, not including SPCI or any of its subsidiaries.

“Consolidated Return” shall mean any Tax Return relating to Income Taxes filed pursuant to Section 1502 of the Code, or any comparable combined, consolidated, or unitary group Tax Return relating to Income Taxes filed under state or local tax law which, in each case, includes IDT and at least one subsidiary.

 

 “Final Determination” shall mean the final resolution of liability for any Tax for any taxable period, including any related interest or penalties, by or as a result of: (i) a final and unappealable decision, judgment, decree or other order by any court of competent jurisdiction; (ii) a closing agreement or accepted offer in compromise under Section 7121 or 7122 of the Code, or comparable agreement under the laws of other jurisdictions which resolves the entire Tax liability for any taxable period; or (iii) any allowance of a refund or credit in respect of an overpayment of Tax, but only after the expiration of all periods during which such refund may be recovered by the jurisdiction imposing the Tax.

“IDT” shall have the meaning specified in the preamble.

“IDT Class A Common Stock” means the outstanding shares of Class A common stock, $0.01 par value per share, of IDT.

“IDT Class B Common Stock” means the outstanding shares of Class B common stock, $0.01 par value per share, of IDT.

“IDT Common Stock” means the IDT Class A Common Stock and the IDT Class B Common Stock.

“Income Tax” shall mean any income, franchise or similar Taxes imposed on (or measured by) net income or net profits.

 

 

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THIS IS THE FORM OF TAX SEPARATION AGREEMENT THAT IS INTENDED TO BE ENTERED 

INTO BETWEEN STRAIGHT PATH COMMUNICATIONS INC. AND IDT CORPORATION, 

EFFECTIVE AS OF THE CONSUMMATION OF THE SPIN-OFF

 

“Income Tax Returns” shall mean all Tax Returns relating to Income Taxes.

 

“Indemnification Tax Benefit” shall have the meaning specified in Section 2.4(b).

“Indemnified Tax” shall have the meaning specified in Section 2.4(b).

“IRS” shall mean the Internal Revenue Service.

“Other Tax” shall mean any Tax other than an Income Tax.

“Payment Period” shall have the meaning specified in Section 2.4(c).

“Proceeding” shall mean any audit, examination or other proceeding brought by a Taxing Authority with respect to Taxes.

“Refund” shall have the meaning specified in Section 2.2.

“Retained Liabilities” shall have the meaning specified in the Separation Agreement.

“Retained Liability Payment” shall have the meaning specified in Section 2.5.

“Retained Liability Tax Benefit” shall have the meaning specified in Section 2.5.

“SPCI” shall have the meaning set forth in the preamble.

“SPCI Class A Common Stock” means the outstanding shares of Class A common stock, $0.01 par value per share, of SPCI.

“SPCI Class B Common Stock” means the outstanding shares of Class B common stock, $0.01 par value per share, of SCPI.

“SPCI Common Stock” means the SPCI Class A Common Stock and the SPCI Class B Common Stock.

“Spin-Off Taxes” shall mean all Taxes attributable to the failure of the Contribution and/or the Spinoff to have tax free status.

“Straddle Period” shall mean any taxable period commencing prior to, and ending after, the Distribution Date.

 

 

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THIS IS THE FORM OF TAX SEPARATION AGREEMENT THAT IS INTENDED TO BE ENTERED 

INTO BETWEEN STRAIGHT PATH COMMUNICATIONS INC. AND IDT CORPORATION, 

EFFECTIVE AS OF THE CONSUMMATION OF THE SPIN-OFF

 

“Tax” or “Taxes” shall mean any federal, state, local or foreign income, gross receipts, property, sales, use, license, excise, franchise, employment, payroll, withholding, alternative or add on minimum, ad valorem, transfer or excise tax, or any other tax, custom, duty, governmental fee or other like assessment or charge of any kind whatsoever, together with any interest or penalty, imposed by any Taxing Authority.

“Taxing Authority” shall mean any governmental authority (whether United States or non-United States, and including, any state, municipality, political subdivision or governmental agency) responsible for the imposition of any Tax.

“Tax Returns” shall mean all reports or returns (including information returns and amended returns) required to be filed or that may be filed for any period with any Taxing Authority in connection with any Tax or Taxes (whether domestic or foreign).

SECTION 1.2. References; Interpretation. References in this Agreement to any gender include references to all genders, and references to the singular include references to the plural and vice versa. The words “include,” “includes” and “including” when used in this Agreement shall be deemed to be followed by the phrase “without limitation.” Unless the context otherwise requires, references in this Agreement to Articles, Sections, Exhibits and Schedules shall be deemed references to Articles and Sections of, and Exhibits and Schedules to, such Agreement. Unless the context otherwise requires, the words “hereof,” “hereby” and “herein” and words of similar meaning when used in this Agreement refer to this Agreement in its entirety and not to any particular Article, Section or provision of this Agreement.

 

ARTICLE II. ALLOCATION OF TAX LIABILITIES

SECTION 2.1. Indemnity.

(a)          Without duplication, IDT shall indemnify SPCI from all liability for (i) Taxes of SPCI or any of its subsidiaries or relating to the SPCI Business with respect to taxable periods ending on or before the Distribution Date, (ii) Taxes of SPCI or any of its subsidiaries or relating to the SPCI Business for any Straddle Period, but only to the extent attributable to the portion of the Straddle Period ending on the Distribution Date,  (iii) Taxes of any member of the Affiliated Group or any Combined Group, other than SPCI or any of its subsidiaries, for any taxable period, and (iv) Spin-Off Taxes. Taxes for a Straddle Period shall be apportioned in accordance with the Closing of the Books Method.

(b)          SPCI shall indemnify IDT from all liability for Taxes of SPCI or its subsidiaries or relating to the SPCI Business accruing after the Distribution Date under the Closing of the Books Method, including the portion of any Straddle Period beginning after the Distribution Date.

 

 

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THIS IS THE FORM OF TAX SEPARATION AGREEMENT THAT IS INTENDED TO BE ENTERED 

INTO BETWEEN STRAIGHT PATH COMMUNICATIONS INC. AND IDT CORPORATION, 

EFFECTIVE AS OF THE CONSUMMATION OF THE SPIN-OFF

 

SECTION 2.2. Refunds.

(a)          Subject to Section 3.5, if a Party receives a refund, offset, credit, or other benefit (including interest received thereon) (a “Refund”) of Tax which the other Party would have been obligated to indemnify had the Refund been a payment, then the Party receiving the Refund shall promptly pay the amount of the Refund to the other Party, less reasonable costs and expenses incurred in connection with such Refund, including any Taxes on such Refund or interest thereon (net of any tax benefit actually realized for paying over such Refund).

(b)          Each Party shall, if reasonably requested by the other Party, cause the relevant entity to file for and use its reasonable best efforts to obtain and expedite the receipt of any Refund to which such requesting Party is entitled under this Section 2.2.

SECTION 2.3. Contests.

(a)          In the case of any Proceeding that relates to Taxes for which IDT is responsible under Section 2.1, IDT shall have the right to control, in its sole discretion, the conduct of such Proceeding. Subject to the foregoing, SPCI shall have the right to participate jointly, at its own expense, in any Proceeding if the consequences of the resolution of such Proceeding could reasonably be expected to affect the tax liability of SPCI for any tax period to the extent such tax liability of SPCI is not subject to an indemnification by IDT hereunder.

(b)          In the case of any Proceeding that relates to Taxes for which SPCI is responsible under Section 2.1, SPCI shall have the sole right to control the conduct of such Proceeding. Subject to the foregoing, IDT shall have the right to participate jointly, at its own expense, in any Proceeding if the consequences of the resolution of such Proceeding could reasonably be expected to affect the tax liability of IDT for any tax period to the extent such tax liability of IDT is not subject to an indemnification by SPCI hereunder.

(c)          In the case of any Proceeding that relates to a Straddle Period of SPCI or the SPCI Business, the parties shall use reasonable efforts to cause such Proceeding to be bifurcated between the period ending on the Distribution Date and the period beginning after the Distribution Date. If the parties are able to cause the audit to be so bifurcated, then Sections 2.3(a) and (b) shall govern the control of such Proceedings. To the extent that the parties are unable to cause such bifurcation, IDT and SPCI shall jointly control such Proceeding.

  

(d)          After the Distribution Date, each Party shall within 15 days notify the other Party in writing upon receipt of written notice of the commencement of any Proceeding or of any demand or claim upon it, which, if determined adversely, would be grounds for indemnification from such other Party pursuant to  Section 2.1 or could reasonably be expected to have an adverse Tax effect on the other Party. The failure of one Party to  forward such notification in accordance with the immediately preceding sentence shall not relieve the other Party of any obligation under this Agreement, except to the extent that the failure to forward such notification within the time frame prescribed herein actually prejudices the ability of the other Party to contest such Proceeding. Each Party shall, on a timely basis, keep the other Party informed of all developments in the Proceeding and provide such other Party with copies of all pleadings, briefs, orders, and other correspondence pertaining thereto.

 

 

5

 

 

THIS IS THE FORM OF TAX SEPARATION AGREEMENT THAT IS INTENDED TO BE ENTERED 

INTO BETWEEN STRAIGHT PATH COMMUNICATIONS INC. AND IDT CORPORATION, 

EFFECTIVE AS OF THE CONSUMMATION OF THE SPIN-OFF

 

SECTION 2.4. Treatment of Payments; After Tax Basis.

(a)          IDT and SPCI agree to treat any indemnification payments (other than payments of interest pursuant to Section 2.4(c)) pursuant to this Agreement, including any payments made pursuant to  Section 2.5, as either a capital contribution or a distribution, as the case may be, between IDT and SPCI occurring immediately prior to the Distribution, and to challenge in good faith any other characterization of such payments by any Taxing Authority. If, notwithstanding such good faith efforts, the receipt or accrual of any such payment (other than payments of interest pursuant to Section 2.4(c)) results in taxable income to the indemnified Party, such payment shall be increased so that, after the payment of any Taxes with respect to the payment, the indemnified Party shall have realized the same net amount it would have realized had the payment not resulted in taxable income.

(b)          To the extent that any liability for Taxes that is subject to indemnification under Section 2.1 (an “Indemnified Tax”) gives rise to an Indemnification Tax Benefit to the indemnified Party in any taxable period, the indemnified Party will promptly remit to the indemnifying Party the amount of any such Indemnification Tax Benefit actually realized. For purposes of this Agreement, “ Indemnification Tax Benefit ” means a reduction in the amount of Taxes that are required to be paid or increase in refund due, whether resulting from a deduction, from reduced gain or increased loss from disposition of an asset, or otherwise. For purposes of this Agreement, an indemnified Party will be deemed to have actually realized an Indemnification Tax Benefit at the time the amount of Taxes such indemnified Party is required to pay is reduced or the amount of any refund due is increased. The amount of any Indemnification Tax Benefit in this Section 2.4(b) shall be calculated by comparing (i) the indemnified Party’s actual Tax liability taking into account any Indemnified Tax with (ii) what the indemnified Party’s Tax liability would have been without taking into account any Indemnified Tax. If, pursuant to this Agreement, the indemnified Party makes a remittance to the indemnifying Party of any Indemnification Tax Benefit and all or part of such Indemnification Tax Benefit is subsequently disallowed, the indemnifying Party will promptly pay to the indemnified Party that portion of such remittance equal to the portion of the Indemnification Tax Benefit that is disallowed.

 

 

6

 

THIS IS THE FORM OF TAX SEPARATION AGREEMENT THAT IS INTENDED TO BE ENTERED 

INTO BETWEEN STRAIGHT PATH COMMUNICATIONS INC. AND IDT CORPORATION, 

EFFECTIVE AS OF THE CONSUMMATION OF THE SPIN-OFF

 

(c)          Payments made pursuant to this Agreement that are not made within the period prescribed in this Agreement or, if no period is prescribed, within thirty (30) days after demand for payment is made (the “Payment Period”) shall bear interest for the period from and including the date immediately following the last date of the Payment Period through and including the date of payment at a rate equal to the monthly average of the “prime rate” as published in the Wall Street Journal, compounded semi-annually. Such interest will be payable at the same time as the payment to which it relates and shall be calculated on the basis of a year of 365 days and the actual number of days for which due; provided, however, that this provision for interest shall not be construed to give the Party responsible for such payment the right to defer payment beyond the due date hereunder.

 

SECTION 2.5. Retained Liabilities. To the extent that any payments made by IDT in respect of the Retained Liabilities (a “Retained Liability Payment”) gives rise to a Retained Liability Tax Benefit to SPCI in any taxable period, SPCI will promptly remit to IDT the amount of any such Retained Liability Tax Benefit actually realized. For purposes of this Agreement, “Retained Liability Tax Benefit” means a reduction in the amount of Taxes that are required to be paid or increase in refund due, whether resulting from a deduction, credit, increased basis, or otherwise. For purposes of this Agreement, SPCI will be deemed to have actually realized a Retained Liability Tax Benefit at the time the amount of Taxes SPCI is required to pay is reduced or the amount of any refund due is increased. The amount of any Retained Liability Tax Benefit in this Section 2.5 shall be calculated by comparing (i) SPCI’s actual Tax liability taking into account any Retained Liability Payment with (ii) what SPCI’s Tax liability would have been without taking into account any Retained Liability Payment. If, pursuant to this Agreement, SPCI makes a remittance to IDT of any Retained Liability Tax Benefit and all or part of such Retained Liability Tax Benefit is subsequently disallowed, IDT will promptly pay to SPCI that portion of such remittance equal to the portion of the Retained Liability Tax Benefit that is disallowed.

SECTION 2.6. Transfer Taxes. Notwithstanding anything to the contrary herein, IDT shall bear any and all stamp, duty, transfer, sales and use or similar Taxes incurred in connection with the Spinoff or the Distribution.

ARTICLE III. RETURNS AND TAXES ATTRIBUTABLE TO SPCI

SECTION 3.1. IDT’s Responsibility for the Preparation of Tax Returns and for the Payment of Taxes.

(a)          IDT shall prepare and file or cause to be prepared and filed all Tax Returns of SPCI or any of its subsidiaries or relating to the SPCI Business that are due on or before the Distribution Date (taking into account any valid extensions thereof), all Income Tax Returns relating to taxable periods ending on or before the Distribution Date and all Income Tax Returns of the Affiliated Group or any Combined Group.

 

 

7

 

 

THIS IS THE FORM OF TAX SEPARATION AGREEMENT THAT IS INTENDED TO BE ENTERED 

INTO BETWEEN STRAIGHT PATH COMMUNICATIONS INC. AND IDT CORPORATION, 

EFFECTIVE AS OF THE CONSUMMATION OF THE SPIN-OFF

 

(b)          To the extent that SPCI or any of its subsidiaries or the SPCI Business is included in any Consolidated Return for a taxable period that includes the Distribution Date, IDT shall include in such Consolidated Return the results of SPCI and the SPCI Business on the basis of the Closing of the Books Method. To the extent permitted by law or administrative practice with respect to other Income Tax Returns, the taxable period relating to SPCI or the SPCI Business shall be treated as ending on the Distribution Date, and if the taxable period does not, in fact, end on the Distribution Date, the Parties shall apportion all tax items between the portions of the taxable period before and after the Distribution Date on the Closing of the Books Method.

SECTION 3.2. SPCI’s Responsibility for the Preparation of Tax Returns and for the Payment of Taxes. SPCI shall prepare and file or cause to be prepared and filed all Tax Returns relating to Other Taxes of SPCI or any of its subsidiaries or the SPCI Business that have not been filed before the Distribution Date. SPCI shall prepare and file or cause to be prepared and filed all Income Tax Returns relating to taxable periods of SPCI and its subsidiaries after the Distribution Date, except for Income Tax Returns of the Affiliated Group or any Combined Group and Income Tax Returns of SPCI for any Straddle Period as described in Sections 3.1 and 3.3.

SECTION 3.3. Responsibility for the Preparation of Straddle Period Income Tax Returns and for the Payment of Straddle Period Income Taxes. IDT shall prepare and file or cause to be prepared and filed all Income Tax Returns of SPCI for any Straddle Period. All such Income Tax Returns that are to be prepared and filed by IDT pursuant to this paragraph shall be submitted to SPCI not later than thirty (30) days prior to the due date for filing of such Tax Returns (including extensions of time to file) (or if such due date is within forty-five (45) days following the Distribution Date, as promptly as practicable following the Distribution Date). SPCI shall have the right to review such Tax Returns and to review all work papers and procedures used to prepare any such Tax Return. If SPCI, within ten (10) Business Days after delivery of any such Tax Return, notifies IDT in writing that it objects to any of the items in such Tax Return, IDT and SPCI shall attempt in good faith to resolve the dispute and, if they are unable to do so, the disputed items shall be resolved (within a reasonable time, taking into account the deadline for filing such Tax Return) by an internationally recognized independent accounting firm chosen by both IDT and SPCI. Upon resolution of all such items, the relevant Straddle Period Tax Return shall be filed on that basis. The costs, fees and expenses of such accounting firm shall be borne equally by IDT and SPCI.

 

SECTION 3.4. Manner of Preparation. All Income Tax Returns filed on or after the Distribution Date shall be prepared and filed on a timely basis (including extensions of time to file) by the Party responsible for such filing under this Agreement. In the absence of a Final Determination to the contrary, a controlling change in law or circumstances, or accounting method changes pursuant to applications that are approved by the Internal Revenue Service, all Income Tax Returns of SPCI for tax periods commencing prior to the Distribution Date shall be prepared on a basis consistent with the elections, accounting methods, conventions, assumptions and principles of taxation used with respect to the SPCI Business for the most recent taxable periods for which Tax Returns of the Affiliated Group have been filed.

 

 

8

 

THIS IS THE FORM OF TAX SEPARATION AGREEMENT THAT IS INTENDED TO BE ENTERED 

INTO BETWEEN STRAIGHT PATH COMMUNICATIONS INC. AND IDT CORPORATION, 

EFFECTIVE AS OF THE CONSUMMATION OF THE SPIN-OFF

 

SECTION 3.5. Carrybacks. SPCI agrees and will cause its subsidiaries not to carry back any net operating losses, capital losses or credits for any taxable period ending after the Distribution Date to a taxable period, or portion thereof, ending on or before the Distribution Date. To the extent that SPCI or any of its subsidiaries is required by applicable law to carry back any such net operating losses, capital losses or credits, any refund of Taxes attributable to such carryback shall be for SPCI’s account.

SECTION 3.6. Retention of Records; Cooperation; Access.

(a)          IDT and SPCI shall, and shall cause each of their subsidiaries to retain adequate records, documents, accounting data and other information (including computer data) necessary for the preparation and filing of all Tax Returns required to be filed by IDT or SPCI and for any Tax matter covered by this Agreement, including any Proceeding relating to such Tax Returns or to any Taxes payable by IDT or SPCI or any of their subsidiaries.

(b)          Subject to the provisions of Section 3.8, IDT and SPCI shall reasonably cooperate with one another in a timely manner with respect to any Tax matter covered by this Agreement, including any Proceeding described in Section 2.3. IDT and SPCI shall, and shall cause each of their subsidiaries to, cooperate and provide reasonable access to (i) all records, documents, accounting data and other information (including computer data) necessary for the preparation and filing of all Tax Returns required to be filed by IDT or SPCI and for any Proceeding relating to such Tax Returns or to any Taxes payable by IDT or SPCI and (ii) its personnel and premises, for the purpose of the preparation, review or audit of such Tax Returns, or in connection with any Tax matter covered by this Agreement, including any Proceeding described in Section 2.3 as reasonably requested by either IDT or SPCI. The Party requesting or otherwise entitled to any books, records, information, officers or employees pursuant to this  Section 3.6(b) shall bear all reasonable out-of-pocket costs and expenses (except reimbursement of salaries, employee benefits and general overhead) incurred in connection with providing such books, records, information, officers or employees; provided, however, that any costs (including but not limited to attorneys’ fees and expenses) arising from the requested Party’s failure to cooperate under this Section 3.6(b) shall be payable by such Party.

(c)          The obligations set forth above in Sections 3.6(a) and 3.6(b) shall continue until the longer of (i) the time of a Final Determination or (ii) expiration of all applicable statutes of limitations, to which the records and information relate. For purposes of the preceding sentence, each Party shall assume that no applicable statute of limitations has expired unless such Party has received notification or otherwise has actual knowledge that such statute of limitations has expired.

 

 

9

 

 

THIS IS THE FORM OF TAX SEPARATION AGREEMENT THAT IS INTENDED TO BE ENTERED 

INTO BETWEEN STRAIGHT PATH COMMUNICATIONS INC. AND IDT CORPORATION, 

EFFECTIVE AS OF THE CONSUMMATION OF THE SPIN-OFF

 

SECTION 3.7. Tax Treatment. The Parties intend that:

(A)          the Contribution and the   Spinoff as a whole, will qualify as  (i) a reorganization described in Sections 355(a) and 368(a)(1)(D) of the Code and (ii) a transaction in which the stock distributed thereby is “qualified property” for purposes of Sections 355(d), 355(e) and 361(c) of the Code,  in which IDT, SPCI and the stockholders of IDT recognize no income or gain for U.S. Federal income tax purposes pursuant to Sections 355, 361 and 1032 of the Code. For the avoidance of doubt, recognition of income or gain by IDT or SPCI as a result of taking into account intercompany items or excess loss accounts pursuant to the Treasury Regulations promulgated pursuant to Section 1502 of the Code shall not mean that the Spinoff does not have tax-free status.

SECTION 3.8. Confidentiality; Ownership of Information; Privileged Information. The provisions of Article X of the Separation Agreement relating to confidentiality of information, ownership of information, privileged information and related matters shall apply with equal force to any records and information prepared and/or shared by and among the Parties in carrying out the intent of this Agreement.

ARTICLE IV. MISCELLANEOUS

SECTION 4.1. Complete Agreement; Construction. This Agreement shall constitute the entire agreement between the Parties with respect to the subject matter hereof and shall supersede all previous negotiations, commitments and writings with respect to such subject matter, including, without limitation, any tax sharing agreement previously entered into by the Parties.

SECTION 4.2. Counterparts. This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement, and shall become effective when one or more such counterparts have been signed by both Parties.

SECTION 4.3. Survival of Agreements. Except as otherwise contemplated by this Agreement, all covenants and agreements of the Parties contained in this Agreement shall survive the Distribution Date.

 

 

10

 

 

THIS IS THE FORM OF TAX SEPARATION AGREEMENT THAT IS INTENDED TO BE ENTERED 

INTO BETWEEN STRAIGHT PATH COMMUNICATIONS INC. AND IDT CORPORATION, 

EFFECTIVE AS OF THE CONSUMMATION OF THE SPIN-OFF

 

SECTION 4.4. Notices. All notices and other communications hereunder shall be in writing and hand delivered or mailed by registered or certified mail (return receipt requested) or sent by any means of electronic message transmission with delivery confirmed (by voice or otherwise) to the Parties at the following addresses (or at such other addresses for a Party as shall be specified by like notice) and will be deemed given on the date on which such notice is received:

To IDT:

IDT Corporation

550 Broad Street

Newark New Jersey 07102

Fax: 973-438-1010

Attention: Marcelo Fischer

With copies to:

IDT Corporation

550 Broad Street

Newark New Jersey 07102

Fax: 973-438-1456

Attention: Legal Department

 

To SPCI:

Straight Path Communications Inc.

5300 Hickory Park Drive, Suite 218

Glen Allen, VA 23059

Fax: [______________]

Attention: Davidi Jonas

SECTION 4.5. Waivers. The failure of any Party to require strict performance by the other Party of any provision in this Agreement will not waive or diminish that Party’s right to demand strict performance thereafter of that or any other provision hereof.

SECTION 4.6. Amendments. This Agreement may not be modified or amended except by an agreement in writing signed by the Parties hereto.

SECTION 4.7. Assignment. This Agreement shall not be assignable, in whole or in part, directly or indirectly, by any Party hereto without the prior written consent of the other Party hereto, and any attempt to assign any rights or obligations arising under this Agreement without such consent shall be void.

SECTION 4.8. Successors and Assigns. The provisions to this Agreement shall be binding upon, inure to the benefit of and be enforceable by the Parties and their respective successors and permitted assigns.

SECTION 4.9. Additional Members. Any new members of the Affiliated Group shall automatically become a Party to this Agreement upon becoming members.

 

 

11

 

 

THIS IS THE FORM OF TAX SEPARATION AGREEMENT THAT IS INTENDED TO BE ENTERED 

INTO BETWEEN STRAIGHT PATH COMMUNICATIONS INC. AND IDT CORPORATION, 

EFFECTIVE AS OF THE CONSUMMATION OF THE SPIN-OFF

 

SECTION 4.10. Third Party Beneficiaries. This Agreement is solely for the benefit of the Parties hereto and should not be deemed to confer upon third parties any remedy, claim, liability, reimbursement, claim of action or other right in excess of those existing without reference to this Agreement.

SECTION 4.11. Title and Headings. Titles and headings to sections herein are inserted for the convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement.

SECTION 4.12. Exhibits. The Exhibits to this Agreement shall be construed with and as an integral part of this Agreement to the same extent as if the same had been set forth verbatim herein.

SECTION 4.13. Governing Law; Jurisdiction. This Agreement shall be construed in accordance with, and governed by, the laws of the State of New Jersey, without regard to the conflicts of law rules of such state. Each of the Parties (a) consents to submit itself to the personal jurisdiction of the courts of the State of New Jersey or any federal court with subject matter jurisdiction located in the District of New Jersey (and any appeals court therefrom) in the event any dispute arises out of this Agreement or any Ancillary Agreement or any transaction contemplated hereby or thereby, (b) agrees that it will not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from any such court, and (c) agrees that it will not bring any action relating to this Agreement or any Ancillary Agreement or any transaction contemplated hereby or thereby in any court other than such courts.

 

SECTION 4.14. Severability. In the event any one or more of the provisions contained in this Agreement should be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein and therein shall not in any way be affected or impaired thereby. The Parties shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions, the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.

[Remainder of page intentionally left blank]

 

 

12

 

 

THIS IS THE FORM OF TAX SEPARATION AGREEMENT THAT IS INTENDED TO BE ENTERED 

INTO BETWEEN STRAIGHT PATH COMMUNICATIONS INC. AND IDT CORPORATION, 

EFFECTIVE AS OF THE CONSUMMATION OF THE SPIN-OFF

 

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

 

	
 

	
 

	
 

	
 
STRAIGHT PATH COMMUNICATIONS INC.

	 
	 	 	 	 	 	 
	 	 	 	By: 	 	 
	 	 	 	 	Davidi Jonas 
Chief Executive Officer

	 
	 	 	 	 	 	 
	 	 	 	
IDT CORPORATION

	 
	 	 	 	 	 	 
	 	 	 	By: 	 	 
	 	 	 	 	 
Name:

Title:

	 

 

 

13

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