Document:

Exhibit
10.1

 

THIS
IS THE FORM OF THE 2016 STOCK OPTION AND INCENTIVE PLAN THAT IS INTENDED TO BE ADOPTED BY

 ZEDGE, INC., TO BE EFFECTIVE UPON CONSUMMATION
OF THE SPIN-OFF

 

ZEDGE,
INC.

2016
STOCK OPTION AND INCENTIVE PLAN

 

1. Purpose;
Types of Awards; Construction.

 

The
purpose of the Zedge, Inc. 2016 Stock Option and Incentive Plan (the “Plan”) is to provide incentives to executive
officers, employees, directors and consultants of Zedge, Inc. (the “Company”), or any subsidiary of the Company which
now exists or hereafter is organized or acquired by the Company, to acquire a proprietary interest in the Company, to continue
as executive officers, employees, directors or consultants, to increase their efforts on behalf of the Company and to promote
the success of the Company’s business. The provisions of the Plan are intended to satisfy the requirements of Section 16(b)
of the Securities Exchange Act of 1934, as amended, and of Section 162(m) of the Internal Revenue Code of 1986, as amended, and
shall be interpreted in a manner consistent with the requirements thereof.

 

2. Definitions.

 

As
used in this Plan, the following words and phrases shall have the meanings indicated:

 

(a) “Agreement”
shall mean a written agreement entered into between the Company and a Grantee in connection with an award under the Plan.

 

(b) “Board”
shall mean the Board of Directors of the Company.

 

(c) “Change
in Control” means a change in ownership or control of the Company effected through either of the following:

 

(i) any
“person,” as such term is used in Sections 13(d) and 14(d) of the Exchange Act (other than (A) the Company, (B) any
trustee or other fiduciary holding securities under an employee benefit plan of the Company, (C) any corporation or other entity
owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of
Class B Common Stock, or (D) any person who, immediately following the spin-off of the Company by way of a pro rata distribution
of the Company’s Class B Common Stock to the stockholders of IDT Corporation, owned more than 25% of the combined voting
power of the Company’s then outstanding voting securities), is or becomes the “beneficial owner” (as defined
in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company (not including in the securities beneficially
owned by such person any securities acquired directly from the Company or any of its affiliates other than in connection with
the acquisition by the Company or its affiliates of a business) representing 25% or more of the combined voting power of the Company’s
then outstanding voting securities; or

 

(ii) during
any period of not more than two consecutive years, not including any period prior to the initial adoption of this Plan by the
Board, individuals who at the beginning of such period constitute the Board, and any new director (other than a director whose
initial assumption of office is in connection with an actual or threatened election contest, including, but not limited to a consent
solicitation, relating to the election of directors of the Company) whose election by the Board or nomination for election by
the Company’s stockholders was approved by a vote of at least two-thirds (2/3) of the directors then still in office who
either were directors at the beginning of the period or whose election or nomination for election was previously so approved,
cease for any reason to constitute at least a majority thereof.

 

(d)
“Class B Common Stock” shall mean shares of Class B Common Stock, par value $.01 per share, of the Company.

 

(e) “Code”
shall mean the Internal Revenue Code of 1986, as amended from time to time.

 

(f) “Committee”
shall mean the Compensation Committee of the Board or such other committee as the Board may designate from time to time to administer
the Plan. The Board will cause the Committee to satisfy the applicable requirements of any stock exchange on which the Common
Stock may then be listed. For purposes of awards intended to constitute performance awards, to the extent required by Code Section
162(m), Committee means all of the members of the Committee who are “outside directors” within the meaning of Section
162(m) of the Code. For purposes of awards to Grantees who are subject to Section 16 of the Exchange Act, Committee means all
of the members of the Committee who are “non-employee directors” within the meaning of Rule 16b-3 adopted under the
Exchange Act.

 

    	 	1	 

     

    

 

THIS
IS THE FORM OF THE 2016 STOCK OPTION AND INCENTIVE PLAN THAT IS INTENDED TO BE ADOPTED BY

 ZEDGE, INC., TO BE EFFECTIVE UPON CONSUMMATION
OF THE SPIN-OFF

 

(g) “Company”
shall mean Zedge, Inc., a corporation incorporated under the laws of the State of Delaware, or any successor corporation.

 

(h) “Continuous
Service” means that the provision of services to the Company or a Related Entity in any capacity of officer, employee, director
or consultant is not interrupted or terminated. Continuous Service shall not be considered interrupted in the case of (i) any
approved leave of absence, (ii) transfers between locations of the Company or among the Company, any Related Entity or any successor
in any capacity of officer, employee, director or consultant, or (iii) any change in status as long as the individual remains
in the service of the Company or a Related Entity in any capacity of officer, employee, director or consultant (except as otherwise
provided in the applicable Agreement). An approved leave of absence shall include sick leave, short-term disability, maternity
leave, military leave (including without limitation service in the National Guard or the Army Reserves) and any other personal
leave approved by the Company or the Committee. For purposes of Incentive Stock Options, no such leave may exceed ninety (90)
days unless reemployment upon expiration of such leave is guaranteed by statute or contract.

 

(i) “Corporate
Transaction” means any of the following transactions:

 

(i) a
merger or consolidation of the Company with any other corporation or other entity, other than (A) a merger or consolidation which
would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting securities of the surviving or parent entity) 80% or more of the combined
voting power of the voting securities of the Company or such surviving or parent entity outstanding immediately after such merger
or consolidation or (B) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction)
in which no “person” (as defined in the Exchange Act) acquired 25% or more of the combined voting power of the Company’s
then outstanding securities; or

 

(ii) a
plan of complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or substantially
all of its assets (or any transaction having a similar effect).

 

(j) “Disability”
shall mean cause for termination of a Grantee’s employment or service due to a determination
that the Grantee is disabled in accordance with a long-term disability insurance
program maintained by the Company or atotal and permanent disability as defined in Code Section 22(e)(3).

 

(k) “Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended from time to time.

 

(l) “Fair
Market Value” per share as of a particular date shall mean (i) the closing sale price per share of Class B Common Stock
on the national securities exchange on which the Class B Common Stock is principally traded for the last preceding date on which
there was a sale of Class B Common Stock on such exchange, or (ii) if the shares of Class B Common Stock are then traded in an
over-the-counter market, the average of the closing bid and asked prices for the shares of Class B Common Stock in such over-the-counter
market for the last preceding date on which there was a sale of Class B Common Stock in such market, or (iii) if the shares of
Class B Common Stock are not then readily tradable on an established securities market, such value as the Committee, in its sole
discretion, shall determine, provided however that such determination (A) with respect to Nonqualified Stock Options, shall be
in good faith using a “reasonable application of a reasonable valuation method” within the meaning of Treasury Regulation
Section 1.409A-1(b)(5)(iv)(B), and (B) with respect to Incentive Stock Options, shall be in a manner that satisfies the applicable
requirements of Code Section 422.

  

(m) “Grantee”
shall mean a person who receives a grant of Options or Restricted Stock under the Plan.

 

(n) “Incentive
Stock Option” shall mean any option intended to be, and designated as, an incentive stock option within the meaning of Section
422 of the Code.

 

    	 	2	 

     

    

 

THIS
IS THE FORM OF THE 2016 STOCK OPTION AND INCENTIVE PLAN THAT IS INTENDED TO BE ADOPTED BY

 ZEDGE, INC., TO BE EFFECTIVE UPON CONSUMMATION
OF THE SPIN-OFF

 

(o) “Insider”
shall mean a Grantee who is subject to the reporting requirements of Section 16(a) of the Exchange Act.

 

(p) “Insider
Trading Policy” shall mean the Insider Trading Policy of the Company, as may be amended from time to time.

 

(q)
“Non-Employee Director” means a member of the Board or the board of directors of any Subsidiary (other than any Subsidiary
that has either (A) a class of “equity securities” (as defined in Rule 3a11-1 promulgated under the Exchange
Act) registered under the Exchange Act or a similar foreign statute or (B) adopted any stock option plan, equity compensation
plan or similar employee benefit plan in which non-employee directors of such Subsidiary are eligible to participate) who is not
an employee of the Company or any Subsidiary.

 

(r)
“Non-Employee Director Annual Grant” shall mean an award of a number of shares of Restricted Stock as shall be equal
up to $50,000 based on the average closing prices of the Class B common stock on the NYSE MKT for the December preceding the date
of grant.

 

(s)
“Non-Employee Director Grant Date” shall mean January 5 of the applicable year (or the following business day
if January 5 is not a business day).

 

(t) “Nonqualified
Stock Option” shall mean any option not designated as an Incentive Stock Option.

 

(u) “Option”
or “Options” shall mean a grant to a Grantee of an option or options to purchase shares of Class B Common Stock.

 

(v) “Option
Agreement” shall have the meaning set forth in Section 6 of the Plan.

 

(w) “Option
Price” shall mean the exercise price of the shares of Class B Common Stock covered by an Option.

 

(x) “Parent”
shall mean any company (other than the Company) in an unbroken chain of companies ending with the Company if, at the time of granting
an award under the Plan, each of the companies other than the Company owns stock possessing fifty percent (50%) or more of the
total combined voting power of all classes of stock in one of the other companies in such chain.

 

(y) “Related
Entity” means any Parent, Subsidiary or any business, corporation, partnership, limited liability company or other entity
in which the Company, a Parent or a Subsidiary holds a substantial ownership interest, directly or indirectly. The
term “substantial ownership interest” means the possession, directly or indirectly, of the power to direct the management
and policies of such person or entity, whether through the ownership of voting or other securities, by contract or otherwise.

 

(z)
“Restricted Period” shall have the meaning set forth in Section 9(b) of the Plan.

 

(aa)
“Restricted Stock” means shares of Class B Common Stock issued under the Plan to a Grantee for such consideration,
if any, and subject to such restrictions on transfer, rights of refusal, repurchase provisions, forfeiture provisions and other
terms and conditions as shall be determined by the Committee.

 

(bb) “Related
Entity Disposition” means the sale, distribution or other disposition by the Company of all or substantially all of the
Company’s interest in any Related Entity effected by a sale, merger or consolidation or other transaction involving such
Related Entity or the sale of all or substantially all of the assets of such Related Entity.

 

(cc) “Retirement”
shall mean a Grantee’s retirement in accordance with the terms of any tax-qualified retirement plan maintained by the Company
or any of its affiliates in which the Grantee participates.

 

(dd) “Rule
16b-3” shall mean Rule 16b-3, as from time to time in effect, promulgated under the Exchange Act, including any successor
to such Rule.

 

    	 	3	 

     

    

 

THIS
IS THE FORM OF THE 2016 STOCK OPTION AND INCENTIVE PLAN THAT IS INTENDED TO BE ADOPTED BY

 ZEDGE, INC., TO BE EFFECTIVE UPON CONSUMMATION
OF THE SPIN-OFF

 

(ee) “Subsidiary”
shall mean any company (other than the Company) in an unbroken chain of companies beginning with the Company if each of the companies
other than the last company in the unbroken chain owns stock possessing fifty percent (50%) or more of the total combined voting
power of all classes of stock in one of the other companies in such chain.

 

(ff)
“Tax Event” shall have the meaning set forth in Section 15 of the Plan.

 

(gg) “Ten
Percent Stockholder” shall mean a Grantee who at the time an Incentive Stock Option is granted, owns stock possessing more
than ten percent (10%) of the total combined voting power of all classes of stock of the Company or any Parent or Subsidiary.

 

3. Administration.

 

(a) The
Plan shall be administered by the Committee.

 

(b) The
Committee shall have the authority in its discretion, subject to and not inconsistent with the express provisions of the Plan,
to administer the Plan and to exercise all the powers and authorities either specifically granted to it under the Plan or necessary
or advisable in the administration of the Plan, including, without limitation, the authority to grant Options and Restricted Stock;
to determine which options shall constitute Incentive Stock Options and which Options shall constitute Nonqualified Stock Options;
to determine the purchase price of the shares of Class B Common Stock covered by each Option; to determine the persons to whom,
and the time or times at which awards shall be granted; to determine the number of shares to be covered by each award; to interpret
the Plan and any award under the Plan; to reconcile any inconsistent terms in the Plan or any award under the Plan; to prescribe,
amend and rescind rules and regulations relating to the Plan; to determine the terms and provisions of the Agreements (which need
not be identical) and to cancel or suspend awards, as necessary; and to make all other determinations deemed necessary or advisable
for the administration of the Plan.

 

(c) All
decisions, determination and interpretations of the Committee shall be final and binding on all Grantees of any awards under this
Plan. No member of the Board or Committee shall be liable for any action taken or determination made in good faith with respect
to the Plan or any award granted hereunder.

 

(d) The
Committee may delegate to one or more executive officers of the Company the authority to (i) grant awards under the Plan to employees
of the Company and its Subsidiaries who are not officers or directors of the Company, (ii) execute and deliver documents or take
such other ministerial actions on behalf of the Committee with respect to awards and (iii) to make interpretations of the Plan.
The grant of authority in this Section 3(d) shall be subject to such conditions and limitations as may be determined by the Committee.
If the Committee delegates authority to any such executive officer or executive officers of the Company pursuant to this Section
3(d), and such executive officer or executive officers grant awards pursuant to such delegated authority, references in this Plan
to the “Committee” as they relate to such awards shall be deemed to refer to such executive officer or executive officers,
as applicable.

 

4. Eligibility.

 

Awards
may be granted to executive officers, employees, directors and consultants of the Company or of any Subsidiary. In addition to
any other awards granted to Non-Employee Directors hereunder, awards shall be granted to Non-Employee Directors pursuant to Section 10
of the Plan. In determining the persons to whom awards shall be granted and the number of shares to be covered by each award,
the Committee shall take into account the duties of the respective persons, their present and potential contributions to the success
of the Company and such other factors as the Committee shall deem relevant in connection with accomplishing the purposes of the
Plan.

 

5. Stock.

 

(a) The
maximum number of shares of Class B Common Stock reserved for the grant of awards under the Plan shall be [________________] (after
giving effect to the stock split of the Company’s shares of common stock to be effective prior to the Company’s spinoff
from IDT Corporation), subject to adjustment as provided in Section 11 of the Plan. Such shares may, in whole or in part, be authorized
but unissued shares or shares that shall have been or may be reacquired by the Company.

 

    	 	4	 

     

    

 

THIS
IS THE FORM OF THE 2016 STOCK OPTION AND INCENTIVE PLAN THAT IS INTENDED TO BE ADOPTED BY

 ZEDGE, INC., TO BE EFFECTIVE UPON CONSUMMATION
OF THE SPIN-OFF

 

(b) If
any outstanding award under the Plan should, for any reason expire, be canceled or be forfeited without having been exercised
in full, the shares of Class B Common Stock allocable to the unexercised, canceled or terminated portion of such award shall (unless
the Plan shall have been terminated) become available for subsequent grants of awards under the Plan, unless otherwise determined
by the Committee.

 

(c)  In
no event may a Grantee be granted during any calendar year Options to acquire more than an aggregate of 60,000 shares of Class
B Common Stock subject to adjustment as provided in Section 11 of the Plan.

 

6. Terms
and Conditions of Options.

 

(a) OPTION
AGREEMENT.  Each Option granted pursuant to the Plan shall be evidenced by a written agreement between the Company and
the Grantee (the “Option Agreement”), in such form and containing such terms and conditions as the Committee shall
from time to time approve, which Option Agreement shall comply with and be subject to the following terms and conditions, unless
otherwise specifically provided in such Option Agreement. For purposes of interpreting this Section 6, a director’s service
as a member of the Board or a consultant’s service shall be deemed to be employment with the Company.

 

(b) NUMBER
OF SHARES.  Each Option Agreement shall state the number of shares of Class B Common Stock to which the Option relates.

 

(c) TYPE
OF OPTION.  Each Option Agreement shall specifically state that the Option constitutes an Incentive Stock Option or
a Nonqualified Stock Option. In the absence of such designation, the Option will be deemed to be a Nonqualified Stock Option.

 

(d) OPTION
PRICE.  Each Option Agreement shall state the Option Price, which, in the case of an Incentive Stock Option, shall not
be less than one hundred percent (100%) of the Fair Market Value of the shares of Class B Common Stock covered by the Option on
the date of grant. The Option Price shall be subject to adjustment as provided in Section 9 of the Plan.

 

(e) MEDIUM
AND TIME OF PAYMENT.  The Option Price shall be paid in full, at the time of exercise, in cash or in shares of Class
B Common Stock having a Fair Market Value equal to such Option Price or in a combination of cash and Class B Common Stock including
a cashless exercise procedure through a broker-dealer or otherwise; provided, however, that in the case of an Incentive Stock
Option, the medium of payment shall be determined at the time of grant and set forth in the applicable Option Agreement.

 

(f) TERM
AND EXERCISABILITY OF OPTIONS.  Each Option Agreement shall provide the exercise schedule for the Option as determined
by the Committee, provided, that, the Committee shall have the authority to accelerate the exercisability of any outstanding option
at such time and under such circumstances as it, in its sole discretion, deems appropriate. The exercise period will be ten (10)
years from the date of the grant of the option unless otherwise determined by the Committee; provided, however, that in the case
of an Incentive Stock Option, such exercise period shall not exceed ten (10) years from the date of grant of such Option. The
exercise period shall be subject to earlier termination as provided in Sections 6(g) and 6(h) of the Plan. An Option may be exercised,
as to any or all full shares of Class B Common Stock as to which the Option has become exercisable, by written notice delivered
in person or by mail to the administrator designated by the Company, specifying the number of shares of Class B Common Stock with
respect to which the Option is being exercised.

 

(g) TERMINATION
OF CONTINUOUS SERVICE. Except as expressly provided for in an applicable Option Agreement or as provided in this Section 6(g)
and in Section 6(h) of the Plan, an Option may not be exercised unless the Grantee is then in the employ of, or maintaining a
director or consultant relationship with, or otherwise a service provider to, the Company or a Subsidiary thereof (or a company
or a Parent or Subsidiary of such company issuing or assuming the Option in a transaction to which Section 424(a) of the Code
applies), and unless the Grantee has remained in Continuous Service with the Company or any Subsidiary since the date of grant
of the Option. In the event that the Continuous Service of a Grantee shall terminate (other than by reason of death, Disability
or Retirement), all Options of such Grantee that are exercisable at the time of Grantee’s termination may, unless earlier
terminated in accordance with their terms, be exercised within one hundred eighty (180) days after the date of termination (or
such different period as the Committee or the applicable Option Agreement shall prescribe).

 

    	 	5	 

     

    

 

THIS
IS THE FORM OF THE 2016 STOCK OPTION AND INCENTIVE PLAN THAT IS INTENDED TO BE ADOPTED BY

 ZEDGE, INC., TO BE EFFECTIVE UPON CONSUMMATION
OF THE SPIN-OFF

 

(h) DEATH,
DISABILITY OR RETIREMENT OF GRANTEE.  Unless otherwise expressly provided for in an Option Agreement, if a Grantee shall
die while providing Continuous Service or if the Grantee’s Continuous Service shall terminate by reason of Disability, all
Options theretofore granted to such Grantee (to the extent otherwise exercisable) may, unless earlier terminated in accordance
with their terms, be exercised by the Grantee or by the Grantee’s estate or by a person who acquired the right to exercise
such Options by bequest or inheritance or otherwise by result of death or Disability of the Grantee, at any time within three
hundred sixty five (365) days after the death or Disability of the Grantee (or such different period as the applicable Option
Agreement or the Committee shall prescribe). In the event that an Option granted hereunder shall be exercised by the legal representatives
of a deceased or former Grantee, written notice of such exercise shall be accompanied by a certified copy of letters testamentary
or equivalent proof of the right of such legal representative to exercise such Option. In the event that the Continuous Service
of a Grantee shall terminate on account of such Grantee’s Retirement, all Options of such Grantee that are exercisable at
the time of such Retirement may, unless earlier terminated in accordance with their terms, be exercised at any time within one
hundred eighty (180) days after the date of such Retirement (or such different period as the applicable Option Agreement or the
Committee shall prescribe).

 

(i) OTHER
PROVISIONS.  The Option Agreements evidencing awards under the Plan shall contain such other terms and conditions not
inconsistent with the Plan as the Committee may determine.

 

7. Nonqualified
Stock Options.

 

Options
granted pursuant to this Section 7 are intended to constitute Nonqualified Stock Options and shall be subject only to the general
terms and conditions specified in Section 6 of the Plan.

 

8. Incentive
Stock Options.

 

Options
granted pursuant to this Section 8 are intended to constitute Incentive Stock Options and shall be subject to the following special
terms and conditions, in addition to the general terms and conditions specified in Section 6 of the Plan:

 

(a) LIMITATION
ON VALUE OF SHARES.  To the extent that the aggregate Fair Market Value of shares of Class B Common Stock subject to
Options designated as Incentive Stock Options which become exercisable for the first time by a Grantee during any calendar year
(under all plans of the Company or any Subsidiary) exceeds $100,000, such excess Options, to the extent of the shares covered
thereby in excess of the foregoing limitation, shall be treated as Nonqualified Stock Options. For this purpose, Incentive Stock
Options shall be taken into account in the order in which they were granted, and the Fair Market Value of the shares of Class
B Common Stock shall be determined as of the date that the Option with respect to such shares was granted.

 

(b) TEN
PERCENT STOCKHOLDER.  In the case of an Incentive Stock Option granted to a Ten Percent Stockholder, (i) the Option
Price shall not be less than one hundred ten percent (110%) of the Fair Market Value of the shares of Class B Common Stock on
the date of grant of such Incentive Stock Option, and (ii) the exercise period shall not exceed five (5) years from the date of
grant of such Incentive Stock Option.

 

9. Restricted
Stock. 

 

The
Committee may award shares of Restricted Stock to any eligible executive officer, employee, director or consultant of the Company
or of any Subsidiary. Each award of Restricted Stock under the Plan shall be evidenced by a written Agreement between the Company
and the Grantee, in such form as the Committee shall from time to time approve, which Agreement shall comply with and be subject
to the following terms and conditions, unless otherwise specifically provided in such Agreement:

 

(a)
NUMBER OF SHARES. Each Agreement shall state the number of shares of Restricted Stock to be subject to an award.

 

    	 	6	 

     

    

 

THIS
IS THE FORM OF THE 2016 STOCK OPTION AND INCENTIVE PLAN THAT IS INTENDED TO BE ADOPTED BY

 ZEDGE, INC., TO BE EFFECTIVE UPON CONSUMMATION
OF THE SPIN-OFF

 

(b)
RESTRICTIONS. Shares of Restricted Stock may not be sold, assigned, transferred, pledged, hypothecated or otherwise
disposed of, except by will or the laws of descent and distribution, for such period as the Committee shall determine from the
date on which the award is granted (the “Restricted Period”). The Committee may also impose such additional or alternative
restrictions and conditions on the shares as it deems appropriate including, but not limited to, the satisfaction of performance
criteria. Such performance criteria may include sales, earnings before interest and taxes, return on investment, earnings per
share, any combination of the foregoing or rate of growth of any of the foregoing, as determined by the Committee. The Company
may, at its option, maintain issued shares in book entry form. Certificates, if any, for shares of stock issued pursuant to Restricted
Stock awards shall bear an appropriate legend referring to such restrictions, and any attempt to dispose of any such shares of
stock in contravention of such restrictions shall be null and void and without effect. During the Restricted Period, any such
certificates shall be held in escrow by an escrow agent appointed by the Committee. In determining the Restricted Period of an
award, the Committee may provide that the foregoing restrictions shall lapse with respect to specified percentages of the awarded
shares on successive anniversaries of the date of such award.

 

(c)
FORFEITURE. Subject to such exceptions as may be determined by the Committee, if the Grantee’s Continuous Service
with the Company or any Subsidiary shall terminate for any reason prior to the expiration of the Restricted Period of an award,
any shares remaining subject to restrictions (after taking into account the provisions of Subsection (e) of this Section 9)
shall thereupon be forfeited by the Grantee and transferred to, and retired by, the Company without cost to the Company or such
Subsidiary, and such shares shall become available for subsequent grants of awards under the Plan, unless otherwise determined
by the Committee.

 

(d)
OWNERSHIP. During the Restricted Period, the Grantee shall possess all incidents of ownership of such shares, subject
to Subsection (b) of this Section 9, including the right to receive dividends with respect to such shares and to vote
such shares.

 

(e)
ACCELERATED LAPSE OF RESTRICTIONS. Upon the occurrence of any of the events specified in Section 12 of the Plan
(and subject to the conditions set forth therein), all restrictions then outstanding on any shares of Restricted Stock awarded
under the Plan shall lapse as of the applicable date set forth in Section 12. The Committee shall have the authority (and
the Agreement may so provide) to cancel all or any portion of any outstanding restrictions prior to the expiration of the Restricted
Period with respect to any or all of the shares of Restricted Stock awarded on such terms and conditions as the Committee shall
deem appropriate.

 

10.
Non-Employee Director Restricted Stock. 

 

The
provisions of this Section 10 shall apply only to certain grants of Restricted Stock to Non-Employee Directors, as provided
below. Except as set forth in this Section 10, the other provisions of the Plan shall apply to grants of Restricted Stock
to Non-Employee Directors to the extent not inconsistent with this Section. For purposes of interpreting Section 6 of the
Plan and this Section 10, a Non-Employee Director’s service as a member of the Board or the board of directors of any
Subsidiary shall be deemed to be employment with the Company.

 

(a)
GENERAL. Non-Employee Directors shall receive Restricted Stock in accordance with this Section 10. Restricted Stock
granted pursuant to this Section 10 shall be subject to the terms of such section and shall not be subject to discretionary
acceleration of vesting by the Committee. Unless determined otherwise by the Committee, Non-Employee Directors shall not receive
separate and additional grants hereunder for being a Non-Employee Director of (i) the Company and a Subsidiary or (ii) more
than one Subsidiary.

 

(b)
INITIAL GRANTS OF RESTRICTED STOCK. A Non-Employee Director who first becomes a Non-Employee Director shall receive a pro-rata
amount (based on projected quarters of service to the following Non-Employee Director Grant Date) of a Non-Employee Director Annual
Grant on his date of appointment as a Non-Employee Director.

 

(c)
ANNUAL GRANTS OF RESTRICTED STOCK. On each Non-Employee Director Grant Date, each Non-Employee Director shall receive a
Non-Employee Director Annual Grant.

 

(d)
VESTING OF RESTRICTED STOCK. Restricted Stock granted under this Section 10 shall be fully vested two years following
the date of grant.  

 

    	 	7	 

     

    

 

THIS
IS THE FORM OF THE 2016 STOCK OPTION AND INCENTIVE PLAN THAT IS INTENDED TO BE ADOPTED BY

 ZEDGE, INC., TO BE EFFECTIVE UPON CONSUMMATION
OF THE SPIN-OFF

 

11.
Effect of Certain Changes.

 

(a) ADJUSTMENTS
UPON CHANGES IN CAPITALIZATION.  In the event of any extraordinary dividend, stock dividend, recapitalization, merger,
consolidation, stock split, warrant or rights issuance, or combination or exchange of such shares, or other similar transactions,
the Committee shall equitably adjust (i) the maximum number of Options or shares of Restricted Stock that may be awarded to a
Grantee in any calendar year (as provided in Section 5 hereof), (ii) the number of shares of Class B Common Stock available for
awards under the Plan, (iii) the number and/or kind of shares covered by outstanding awards and (iv) the price per share of Options
so as to reflect such event and preserve the value of such awards; provided, however, that any fractional shares resulting from
such adjustment shall be eliminated.

 

(b) CHANGE
IN CLASS B COMMON STOCK.  In the event of a change in the Class B Common Stock as presently constituted that is limited
to a change of all of its authorized shares of Class B Common Stock, into the same number of shares with a different par value
or without par value, the shares resulting from any such change shall be deemed to be the Class B Common Stock within the meaning
of the Plan.

 

12. Corporate
Transaction; Change in Control; Related Entity Disposition.

 

(a) CORPORATE
TRANSACTION.  In the event of a Corporate Transaction, each award which is at the time outstanding under the Plan shall
automatically become fully vested and exercisable and, in the case of an award of Restricted Stock, shall be released from any
restrictions on transfer (except with regard to the Insider Trading Policy and such other agreements between the Grantee and the
Company) and repurchase or forfeiture rights, immediately prior to the specified effective date of such Corporate Transaction.
Effective upon the consummation of the Corporate Transaction, all outstanding awards of Options under the Plan shall terminate,
unless otherwise determined by the Committee. However, all such awards shall not terminate if the awards are, in connection with
the Corporate Transaction, assumed by the successor corporation or Parent thereof.

 

(b) CHANGE
IN CONTROL.  In the event of a Change in Control (other than a Change in Control which is also a Corporate Transaction),
each award which is at the time outstanding under the Plan automatically shall become fully vested and exercisable and, in the
case of an award of Restricted Stock, shall be released from any restrictions on transfer and repurchase or forfeiture rights,
immediately prior to the specified effective date of such Change in Control.

 

(c) RELATED
ENTITY DISPOSITION.  The Continuous Service of each Grantee (who is primarily engaged in service to a Related Entity
at the time it is involved in a Related Entity Disposition) shall terminate effective upon the consummation of such Related Entity
Disposition, and each outstanding award of such Grantee under the Plan shall become fully vested and exercisable and, in the case
of an award of Restricted Stock, shall be released from any restrictions on transfer (except with regard to the Insider Trading
Policy and such other agreements between the Grantee and the Company). Unless otherwise determined by the Committee, the Continuous
Service of a Grantee shall not be deemed to terminate (and each outstanding award of such Grantee under the Plan shall not become
fully vested and exercisable and, in the case of an award of Restricted Stock, shall not be released from any restrictions on
transfer) if (i) a Related Entity Disposition involves the spin-off of a Related Entity, for so long as such Grantee continues
to remain in the service of such entity that constituted the Related Entity immediately prior to the consummation of such Related
Entity Disposition (“SpinCo”) in any capacity of officer, employee, director or consultant or (ii) an outstanding
award is assumed by the surviving corporation (whether SpinCo or otherwise) or its parent entity in connection with a Related
Entity Disposition.

 

(d) SUBSTITUTE
AWARDS.  The Committee may grant awards under the Plan in substitution of stock-based incentive awards held by employees,
consultants or directors of another entity who become employees, consultants or directors of the Company or any Subsidiary by
reason of a merger or consolidation of such entity with the Company or any Subsidiary, or the acquisition by the Company or a
Subsidiary of property or equity of such entity, upon such terms and conditions as the Committee may determine, and such awards
shall not count against the share limitation set forth in Section 5 of the Plan.

 

13. Period
During which Awards May Be Granted.

 

Awards
may be granted pursuant to the Plan from time to time within a period of ten (10) years from May [_], 2016, the date the Board
adopted the Plan.

 

    	 	8	 

     

    

 

THIS
IS THE FORM OF THE 2016 STOCK OPTION AND INCENTIVE PLAN THAT IS INTENDED TO BE ADOPTED BY

 ZEDGE, INC., TO BE EFFECTIVE UPON CONSUMMATION
OF THE SPIN-OFF

 

14. Transferability
of Awards.

 

(a) Incentive
Stock Options may not be sold, pledged, assigned, hypothecated, transferred or disposed of in any manner other than by the laws
of descent and distribution and may be exercised, during the lifetime of the Grantee, only by the Grantee or his or her guardian
or legal representative.

 

(b) Nonqualified
Stock Options shall be transferable in the manner and to the extent acceptable to the Committee, as evidenced by a writing signed
by the Company and the Grantee. Nonqualified Stock Options shall be transferable by a Grantee as a gift to the Grantee’s
“family members” (as defined in Form S-8) under such terms and conditions as may be established by the Committee;
provided that the Grantee receives no consideration for the transfer. Notwithstanding the transfer by a Grantee of a Nonqualified
Stock Option, the transferred Nonqualified Stock Option shall continue to be subject to the same terms and conditions as were
applicable to the Nonqualified Stock Option immediately before the transfer (including, without limitation, the Insider Trading
Policy) and the Grantee will continue to remain subject to the withholding tax requirements set forth in Section 15 hereof.

 

(c) The
terms of any award granted under the Plan, including the transferability of any such award, shall be binding upon the executors,
administrators, heirs and successors of the Grantee.

 

(d)
Each Grantee who receives an award shall comply with any policy adopted by the Company from time to time covering transactions
in the Company’s securities. By way of example, and not limitation, Restricted Stock shall remain subject to the Insider
Trading Policy after the Restricted Period.

 

15. Agreement
by Grantee regarding Withholding Taxes. 

 

If
the Committee shall so require, as a condition of exercise of an Option or the expiration of a Restricted Period (each a “Tax
Event”), each Grantee shall agree that no later than the date of the Tax Event, the Grantee will pay to the Company or make
arrangements satisfactory to the Committee regarding payment of any federal, state or local taxes of any kind required by law
to be withheld upon the Tax Event. Unless determined otherwise by the Committee, a Grantee shall permit, to the extent permitted
or required by law, the Company to withhold federal, state and local taxes of any kind required by law to be withheld upon the
Tax Event from any payment of any kind due to the Grantee. Unless otherwise determined by the Committee, any such above-described
withholding obligation may, in the discretion of the Company, be satisfied by the withholding by the Company or delivery to the
Company of Class B Common Stock.

 

16. Rights
as a Stockholder.

 

Except
as provided in Section 9(d) of the Plan, a Grantee or a transferee of an award shall have no rights as a stockholder with
respect to any shares covered by the award until the date of the issuance of such shares to him or her. No adjustment shall be
made for dividends (ordinary or extraordinary, whether in cash, securities or other property) or distribution of other rights
for which the record date is prior to the date such shares are issued, except as provided in Section 11(a) of the Plan.

 

17. No
Rights to Employment; Forfeiture of Gains.

 

Nothing
in the Plan or in any award granted or Agreement entered into pursuant hereto shall confer upon any Grantee the right to continue
as a director of, in the employ of, or in a consultant relationship with, the Company or any Subsidiary or to be entitled to any
remuneration or benefits not set forth in the Plan or such Agreement or to interfere with or limit in any way the right of the
Company or any such Subsidiary to terminate such Grantee’s employment or consulting relationship. Awards granted under the
Plan shall not be affected by any change in duties or position of a Grantee as long as such Grantee continues to be employed by,
or in a consultant relationship with, or a director of the Company or any Subsidiary. The Agreement for any award under the Plan
may require the Grantee to pay to the Company any financial gain realized from the prior exercise, vesting or payment of the award
in the event that the Grantee engages in conduct that violates any non-compete, non-solicitation or non-disclosure obligation
of the Grantee under any agreement with the Company or any Subsidiary, including, without limitation, any such obligations provided
in the Agreement.

 

    	 	9	 

     

    

 

THIS
IS THE FORM OF THE 2016 STOCK OPTION AND INCENTIVE PLAN THAT IS INTENDED TO BE ADOPTED BY

 ZEDGE, INC., TO BE EFFECTIVE UPON CONSUMMATION
OF THE SPIN-OFF

 

18. Beneficiary.

 

A
Grantee may file with the Committee a written designation of a beneficiary on such form as may be prescribed by the Committee
and may, from time to time, amend or revoke such designation. If no designated beneficiary survives the Grantee, the executor
or administrator of the Grantee’s estate shall be deemed to be the Grantee’s beneficiary.

 

19. Approval;
Amendment and Termination of the Plan.

 

(a) APPROVAL.  The
Plan initially became effective when adopted by the Board on May [_], 2016 and shall terminate on the tenth anniversary of such
date (except as to awards outstanding on that date). The Plan was ratified by the Company’s stockholder on May [_], 2016.

 

(b) AMENDMENT
AND TERMINATION OF THE PLAN.  The Board, or the Committee if so delegated by the Board, at any time and from time to
time may suspend, terminate, modify or amend the Plan; however, unless otherwise determined by the Board, or the Committee if
applicable, an amendment that requires stockholder approval in order for the Plan to continue to comply with any law, regulation
or stock exchange requirement shall not be effective unless approved by the requisite vote of stockholders. Except as provided
in Section 11(a) of the Plan, no suspension, termination, modification or amendment of the Plan may adversely affect any award
previously granted, unless the written consent of the Grantee is obtained.

 

20. Governing
Law.

 

The
Plan and all determinations made and actions taken pursuant hereto shall be governed by the laws of the State of Delaware.

 

21. Section
409A of the Code.

 

It
is the intention of the Company that no award shall be “deferred compensation” subject to Section 409A of the Code,
unless and to the extent that the Committee specifically determines otherwise as provided in this Section 21, and the Plan and
the terms and conditions of all awards shall be interpreted accordingly. The terms and conditions governing any awards that the
Committee determines will be subject to Section 409A of the Code shall be set forth in the applicable award Agreement and shall
comply in all respects with Section 409A of the Code. Notwithstanding any provision of this Plan to the contrary, if one or more
of the payments or benefits received or to be received by a Grantee pursuant to an award would cause the Grantee to incur any
additional tax or interest under Section 409A of the Code, the Committee may reform such provision to maintain to the maximum
extent practicable the original intent of the applicable provision without violating the provisions of Section 409A of the Code.
Although the Company intends to administer the Plan so that Awards will be exempt from, or will comply with, the requirements
of Section 409A of the Code, the Company does not warrant that any Award under the Plan will qualify for favorable tax treatment
under Section 409A of the Code or any other provision of federal, state, local or foreign law. The Company shall not be liable
to any Grantee for any tax, interest, or penalties that Grantee might owe as a result of the grant, holding, vesting, exercise,
or payment of any award under the Plan.

 

 

 10Exhibit
10.2

 

THIS
IS THE FORM OF TRANSITION SERVICES AGREEMENT THAT IS INTENDED TO BE ENTERED INTO BETWEEN IDT CORPORATION AND ZEDGE, INC., TO BE
EFFECTIVE UPON CONSUMMATION OF THE SPIN-OFF

 

TRANSITION
SERVICES AGREEMENT

 

THIS
TRANSITION SERVICES AGREEMENT, dated as of May [__], 2016 (this “Agreement”), is entered into by and between
Zedge, Inc., a Delaware corporation (“Zedge”), and IDT Corporation, a Delaware corporation (“IDT”).
For purposes of this Agreement, “Party” or “Parties” shall mean either Zedge or IDT, individually or collectively.

 

BACKGROUND

 

WHEREAS,
IDT is executing a spin-off of its equity interest in Zedge (which, prior to the date hereof, was a majority-owned subsidiary
of IDT), to IDT’s stockholders, and has agreed to provide certain corporate, tax and accounting support, administrative
and other services to Zedge 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, Zedge 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, directly or via one or more of its affiliates, to Zedge 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.

 

(c)
IDT shall maintain accurate records and accounts of all transactions relating to the Services performed by it or its affiliates
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.  Zedge 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.

 

    	 	1	 

     

    

 

(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 until the [twelve] ([12]) month anniversary of the date hereof, and shall automatically renew
for additional six-month terms unless, no later than ninety (90) days prior to the end of the then-current term of this Agreement,
IDT or Zedge notifies the other of its intent to terminate this Agreement, in which case this Agreement shall terminate effective
as of the end of the then-current term, provided that certain Services may terminate earlier as set forth on an applicable Schedule
A.  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, effective on a six (6) month or annual anniversary of the date hereof, upon not less than sixty
(60) 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 Zedge 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 Zedge of any and all matters related
to the terminated Services such that Zedge shall not be prejudiced by such termination (but IDT shall not be required to bear
any out-of-pocket costs for such transition unless Zedge shall agree to reimburse it for the same).

 

3.
Compensation for Services.

 

(a)
Zedge 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 Zedge 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 Zedge.

 

(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 Zedge, IDT shall deliver to Zedge,
on a monthly basis, such reasonable and relevant information and supporting documentation with respect to the actual allocation
of each of IDT’s employees delivering the actual Service.

 

(d)
Unless otherwise specified on a Schedule A, Zedge 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 Zedge to verify the amount of the expense and that such expense was incurred in
connection with providing the Services.

 

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

  

    	 	2	 

     

    

 

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 Zedge 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 Zedge 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 Zedge.  Zedge 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
and Zedge shall undertake to provide and utilize the 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 Zedge); 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 Zedge’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 Zedge 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.

 

7.
Indemnification.  

 

(a)
Zedge 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;

 

    	 	3	 

     

    

 

(iii)
the gross negligence, fraud, willful defaults or willful misconduct of IDT or any of its employees, agents, contractors, successors,
assigns or affiliates; and

 

(iv)
the enforcement of the indemnification rights of Zedge 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 Zedge 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 Zedge contained in this Agreement;

 

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

 

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

 

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

  

8.
Liability.

 

Neither
Party nor its affiliates shall have any liability whatsoever to any other Party for any error, act or omission in connection with
the Services to be rendered by IDT to Zedge hereunder in excess of the Liability Limitation, unless any such error, act or omission
derives from the willful misconduct or gross negligence of such Party (or its affiliates).  IN NO EVENT SHALL EITHER
PARTY (OR AFFILIATE THEREOF) BE LIABLE TO THE 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 SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.  THE LIABILITY OF A PARTY (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,
THE OTHER PARTY’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, (i) all fees for Services billed hereunder 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 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.

 

    	 	4	 

     

    

 

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 Zedge shall be entitled to enforce its respective rights under this Agreement against the other Party.  Zedge
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 Zedge.  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 Zedge while also acting in the best interests of IDT, such conflict shall immediately be reported
to Zedge so that it may be addressed without prejudice to either Party.

 

Zedge
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 the most senior financial executive of a Party) or his/her designee of each of IDT and Zedge.  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 set 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.

 

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.

 

    	 	5	 

     

    

 

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 Zedge.  Neither IDT nor a Zedge 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, Zedge,
or be deemed to have any relationship with Zedge 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]

 

    	 	6	 

     

    

 

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

 

	ZEDGE, INC.	 
	 	 	 
	By:		 
	 	Jonathan Reich	 
	 	Chief Financial Officer	 
	 	 	 
	IDT CORPORATION	 
	 	 	 
	By:		 
	 	Marcelo Fischer	 
	 	Senior Vice President of Finance	 

 

    	 	7	 

     

    

 

[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):

 

Zedge
Contacts:

 

[INSERT
CONTACTS]

 

Acknowledgement:

 

	ZEDGE,
    INC.    	 	IDT
    COPORATION:
	 	 	 	 
	By:	 	 	By:	 
	 	 	 	 
	Name:	 	 	Name:	 
	Title:	 	 	Title:	 

 

 

 

8

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